Tallinn, Estonia, 21st March, 2023, Chainwire
Estonia-based crypto startup CryptoWallet.com has become one of the first crypto companies to receive a stamp of approval from Estonia’s Financial Intelligence Unit (FIU). CryptoWallet.com renewed its crypto license despite strict regulatory measures introduced last year to maintain compliance and transparency within the crypto space.
The Estonian license to provide a virtual currency service, which was granted to 55% of all virtual asset providers in 2021, has since become far more competitive. An estimated 90% of companies* may face losing their license and/or being forced to move to another jurisdiction. Despite these headwinds, CryptoWallet.com has succeeded where many others look destined to face difficulties.
The new requirements are designed to root out companies that are poorly managed in an effort to prevent financial crime and mitigate risk.
Regulators now require companies offering services like those of CryptoWallet.com to hold a minimum of €250,000 in capital reserves compared to just €12,000 under the previous requirements.
Other requirements for the license:
- Stringent KYC/AML checks
- Personal requirements for management board and personnel
- Viable product and business plan
- Proper risk management
- Local presence in Estonia
CryptoWallet.com’s COO, Aleksander Smirnin, summed up the company’s achievement. “This sought-after license once again awarded by the FIU is the culmination of years of hard work and dedication by the CryptoWallet.com team. We are fully compliant, have the required shared capital, and are launching products that will enhance our users’ lives. No other crypto card provider offers as many supported cryptos as CryptoWallet.com and we look forward to growing our ecosystem.”
CryptoWallet.com will provide users with a secure and seamless platform to buy, sell and spend crypto assets using a crypto card and SEPA compatibility. The crypto card, due to launch later this year, will support over 800 cryptocurrencies, over ten times more than other competitors.
Now that CryptoWallet.com is licensed, the company is legally allowed to facilitate the storage, purchase and sale of digital assets.
For more information on CryptoWallet.com or to apply for a crypto card please visit: https://cryptowallet.com
About CryptoWallet.com
Estonia-based crypto startup CryptoWallet.com is fully licensed and compliant in handling cryptocurrency operations in all jurisdictions where crypto is legal. CryptoWallet.com provides users with a secure and seamless platform to buy and sell crypto with debit/credit card and SEPA transfers.
The CryptoWallet.com crypto card, due to launch later this year, is slated to support over 800 cryptocurrencies, over ten times more than any competitor. Users can earn native SPEND tokens as cashback with every purchase and through the staking, referral, and partnership programs that are helping to build its community. A custodial wallet with over 100 supported cryptos is already live. CryptoWallet.com also lists tokens on its platforms and facilitates the buying and selling of crypto for businesses.
Applications for a crypto card is open through the Whitelist located on CryptoWallet.com
Contact
Pauline Shangett
[email protected]
New York Community Bancor subsidiary Flagstar Bancorp, NA will hold non-crypto related deposits from Signature Bank, according to a press release from the Federal Deposit Insurance Corporation (FDIC) on Sunday.
Signature Bridge Bank, the current company replacing Signature Bank, will become immediate depositors of Flagstar and receive FDIC insurance up to $250,000 USD.
The statement read: “As of December 31, 2022, the former Signature Bank had total deposits of $88.6 billion and total assets of $110.4 billion. Today’s transaction included the purchase of about $38.4 billion of Signature Bridge Bank, N.A.’s assets, including loans of $12.9 billion purchased at a discount of $2.7 billion.
It explained further: “Approximately $60 billion in loans will remain in the receivership for later disposition by the FDIC. In addition, the FDIC received equity appreciation rights in New York Community Bancorp, Inc., common stock with a potential value of up to $300 million.”
Reports added that bids submitted by Flagstar Bank did not include the $4 billion in deposits linked to Signature Bank’s digital banking wing. According to FDIC estimates, Signature Bank’s collapse will cost the Deposit Insurance Fund around $2.5 billion USD.
The news comes after Signature Bank collapsed due to a massive liquidity crunch due to its ties to the now-defunct cryptocurrency exchange FTX. New York authorities shuttered the bank, citing the need to protect investors.
Signum Digital announced on Thursday it had teamed up with the Hong Kong Securities and Futures Commission (SFC) after the latter granted it an approval-in-principle to launch its security token offering (STO).
The tokens will offer digital assets via blockchain technologies based on tangible assets. These can include artworks, real estate, private equities, and commodities.
The company, who partnered with Coinstreet and Somerley, said that doing so could also lower risks for cryptocurrencies, namely amid major market volatility.
Samsun Lee, Chief Executive of Signum Digital, said in a statement: “In today’s financial market, SMEs face many challenges in traditional fundraising channels, and professional investors also have limited options for high quality alternative investment opportunities.”
He added that Signum Digital hoped to “fill such a gap” with its CS-Pro security token offering and subscription platform.
Somerley chairman Martin Sabine added that his company believed there was “considerable pent-up demand” for professional investors to “deploy a proportion of their portfolio into digital assets.”
He continued: “The events of 2022 may have shaken their confidence in parts of the crypto world but not their belief that digital assets will play a pivotal role in the future of finance.”
His company’s new offering with Signum Digital would become a “medium risk way of participating in these future opportunities.”
Hong Kong Opens Doors to Crypto
The news comes as Hong Kong explores regulations for cryptocurrency and other digital assets, namely after the SFC published its virtual asset trading rules in February.
The Government agency is seeking expert advice on the subject to outline its cryptocurrency regulatory framework. This has attracted numerous firms to invest in Hong Kong’s growing cryptocurrency hub.
The SFC announced at the time: “Operators of virtual asset trading platforms which plan to apply for a licence, including pre-existing platforms […], should begin to review and revise their systems and controls to prepare for the new regime.
It also warned that companies failing to apply for licences “should start preparing for an orderly closure” of their operations in the finance region.
Singapore, Singapore, 20th March, 2023, Chainwire
DeFiChain, the world’s leading blockchain on the Bitcoin network dedicated to bringing decentralized financial applications and services to everyone, has announced the debut of the Euro-backed stablecoin Euro Coin (EUROC) on its native blockchain. DeFiChain is one of the first blockchains to fully integrate a Euro-backed stablecoin.
On DeFiChain, the EUROC will have the same support as the USDC and USDT. It means Cake DeFi will act as a custodian and issue dEUROC, a dAsset representing the EUROC stablecoin on the DeFiChain DEX. Users will also be able to transfer it from Ethereum to DeFiChain and vice-versa via the Quantum Bridge. In the near future, DFX Swiss, a gateway between fiat and crypto, will also add an easy Euro to EUROC on-ramp for DeFiChain users.
Full rewards became available on Block #2,772,200 at ~10AM UTC on Monday, March 20th. The dEUROC-dUSD pair will get 5% of the dAsset block rewards while the dEUROC-DFI will get 0.74% of the crypto block rewards. The actual APRs could vary based on the block reward allocation dedicated to the new pools.
Andreas Osberghaus aka mrgrauel, a community member and the Creator of the DFIP to bring EUROC to DeFiChain, said, “Having a Euro stablecoin on DeFiChain has been a long-standing desire within the community, aiming to simplify the entry process for new users from the Eurozone. That’s why I decided to set up a DFIP (DeFiChain Improvement Proposal). Now, no one is forced to convert to US dollars or take on currency risk any longer.”
The special DeFiChain Improvement Proposal (DFIP) to bring EUROC to DeFiChain received an overwhelming response from the community, with 96.51% of the 1,862 votes in its favor.
The Euro Coin (EUROC) maintains a 1:1 ratio with the Euro, meaning for every Euro-backed stablecoin issued, the issuer Circle holds an equivalent amount of Euro in reserve. There has been a growing demand for the Euro-backed stablecoins in the crypto ecosystem. The dEUROC can either be held as an investment, traded on the DeFiChain DEX, or used for Liquidity Mining to earn attractive rewards.
The availability of EUROC will help bring more liquidity on the DeFiChain DEX. It will allow users to invest with Euro instead of USD, improving the user experience for most European users and accelerating adoption. Users will be able to use EUROC to easily move Euro liquidity on-chain, accept and make euro payments globally, and access crypto capital markets for trading, borrowing, lending and more.
DeFiChain is a fully decentralized blockchain with on-chain governance. Since its mainnet launch in May 2020, the project has seen an enthusiastic involvement from the community in almost all aspects of the blockchain, from masternodes, projects, tools, governance, economic ideas, to code governance. Its codebase has been developed in an open source manner, and widely peer-reviewed and discussed by many.
About DeFiChain
DeFiChain is a decentralized Proof-of-Stake blockchain created as a hard fork of the Bitcoin network to enable advanced DeFi applications. It is dedicated to enabling fast, intelligent, and transparent decentralized financial services. DeFiChain offers liquidity mining, staking, decentralized assets, and decentralized loans. The DeFiChain Foundation’s mission is to bring DeFi to the Bitcoin ecosystem.
For more information, visit: Website | Twitter | Discord | GitHub
Contact
Benjamin Rauch
[email protected]
Swiss banking giant UBS Group has inked a deal to buy out Credit Suisse for roughly $3.2 billion USD on Sunday, the Financial Times reported on Sunday.
Credit Suisse’s board of directors initial billion USD offer on Saturday, according to sources speaking in the report. This led to a subsequent amendment to Switzerland’s regulatory procedures to circumvent shareholders and reveal news of the deal at the weekend.
In it, Swiss National Bank (SNB) will also provide roughly $100 billion USD in liquidity to UBS, with regulators in the United States and the European Union.
In a press release, UBS chairman Colm Kelleher said,
“This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue. We have structured a transaction which will preserve the value left in the business while limiting our downside exposure.”
He added that the acquisition would boost UBS’s “strategy of growing its capital-light businesses” and “bring benefits to clients and create long-term sustainable value” to investors.
UBS chief executive Ralph Harmers added that the acquisition would “further enhance [UBS’s] ability to serve our clients globally” with “best-in-class capabilities.
Harmes continued: “The combination supports our growth ambitions in the Americas and Asia while adding scale to our business in Europe, and we look forward to welcoming our new clients and colleagues across the world in the coming weeks.”
The rescue deal also triggered public outcry from bondholders, who later sued the bank and key executives for allegedly withholding key data on the effects of rising interest rates on investments.
The news comes amid ongoing talks between the two banks after Saudi National Bank refused to increase investments in Credit Suisse over national regulations. This sparked fears over the bank’s profitability and concerns over shareholder financing.
Further issues have surfaced over the last few weeks after the collapse of Silvergate Bank and Silicon Valley bank, sending shockwaves across the global finance industry.
Silicon Valley Bank’s branch in the United Kingdom has provided millions in bonuses for its employees hours after receiving a lifeline from HSBC, Sky News reported on Friday, citing anonymous sources.
HSBC bought the embattled bank for just one pound sterling, the banking giant announced last week.
According to the report, HSBC approved payments to SVB UK employees and executives, with teams receiving bonuses with the funds.
Sources speaking to Sky News added staff provided undisclosed payments to its chief executive, Erin Platts, but funds were “modest” and between “£15 million and £20 million.”
Further sources added that the banking crisis had wiped out the values of senior executive stocks. Additional insiders revealed that the bonuses had been a “signal of HSBC’s confidence in the talent base” and aimed to “retain key staff” from SVB UK.
Ongoing Banking Collapse
The news comes amid the ongoing aftermath of the Silicon Valley Bank Group’s collapse into Chapter 11 bankruptcy in the United States. It did not receive protection for SVB Capital and SV Securities.
The US wing aims to preserve its value amid the bankruptcy proceedings, it said in a recent statement.
SVB has long provided financial backing for venture capital firms, startups, and other key investors in the emerging technologies space. Its collapse has sent ripples across the tech industry and triggered massive instability in global markets.
The Bank of England also shuttered SVB UK’s operations last week, ordering the bank to “stop making payments or accepting funds” due to its insolvency protocols.
Shareholders of SVB Financial Group also sued executives and the defunct bank for allegedly defrauding investors about interest rates. The lawsuit accuses three of the groups involved of withholding information about the knock-on effects of rising interest rates leading up to the bank runs.
Cryptocurrency could turn to shadow banks amid the ongoing banking crisis, Molly White, software engineer and crypto skeptic, said at a recent event.
At the South by Southwest (SXSW) panel in Texas, White told the audience that ongoing crises linked to Silvergate Bank and Signature Bank could potentially derail cryptocurrency firms.
She explained that there were only a “handful of US banks” supportive of cryptocurrency clients, adding: “With Signature and Silvergate both out of the picture, I think that’s going to be very impactful on the crypto industry [which] still really needs access to traditional finance and to U.S. banking rails.”
White added that without the two banks, the crypto industry would have a “tough time.”
“They’re either going to have to find other banks that are willing to work with them, which was already tough, and will probably only be tougher after the collapses of these banks, or they’re going to have to turn to some of the sort of shadier shadow banks,” she concluded as quoted by Cointelgraph.
The news comes after New York authorities cracked down on Signature Bank, sparking outcry over the New York Department of Financial Services’ jurisdiction.
Over the last few months, the SEC and numerous US agencies have cracked down on global cryptocurrency firms such as CoinEx, Binance, Kraken, Ripple, and KuCoin, among others.
Helium’s native token, HNT, plummeted to two-month lows after it was delisted on Binance.us, the latter announced on Monday.
The delisting is set to take place on 21 March. News of the measure plunged the token’s value 20 percent to $2 USD.
Binance.us explained in a statement it regularly reviewed digital assets to “ensure that it continues to meet the standard of excellence we expect.”
It continued: “When a digital asset no longer meets our high standards, or industry circumstances change, we conduct a more in-depth review of the affected asset and assess whether further action is necessary (i.e. delisting).”
Responding to the move, the Helium Foundation said,
“While the Helium Foundation is disappointed that Binance.US has decided to take this action in advance of the migration, we understand their position. Helium’s migration to Solana is significant, and a first for the industry – on par with Ethereum’s transition from proof-of-work to proof-of-stake.”
The news comes as Helium plans to migrate to the Solana blockchain. The Foundation added it would wrap up the transfer on schedule and launch on 27 March.
Despite this, Binance’s global exchange, Binance.com, will continue to list the exchange. Helium’s Network offers wireless hotspots organised as a decentralised grid, rather than mobile data and other connectivity services. Powered by cryptocurrencies, the infrastructure offers HNT tokens as rewards for participants in the network.
Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), has restated his claim that his organisation could regulate proof-of-stake tokens under the Howey Test.
Gensler told reporters on Wednesday that such tokens could spark securities regulations as investors expected returns after purchasing tokens backed by proof-of-stake mechanisms.
He said as quoted by The Block: “Whatever they’re promoting and putting into a protocol, and locking up their tokens in a protocol, a protocol that’s often a small group of entrepreneurs and developers are developing, I would just suggest that each of these token operators … seek to come into compliance, and the same with the intermediaries”
The comments contradict statements from Rostin Behnam, Commodity Futures Trading Commission (CFTC) chairman, who revealed last week that his agency should regulate Ether (ETH) as a commodity rather than a security.
Gensler, the SEC, and other US regulators have launched an industry-wide crackdown on cryptocurrencies in recent months, including Paxos, Ripple, CoinEx, and Kraken.
The news comes after New York Attorney General Leticia James sued crypto exchange platform KuCoin, where she alleged the latter had sold unregistered US securities in New York.
Silicon Valley Bank Financial Group has officially filed for Chapter 11 bankruptcy in the United States, the company revealed in a press release on Friday.
The embattled bank filed its voluntary petition hoping to conserve its assets, but will not include SVB Capital or SVB Securities in its bankruptcy filings.
SVB Financial Group also aims to explore strategic alternatives for its subsidiaries, adding it will no longer affiliate with Silicon Valley Bank NA or SVB Private, its private banking and wealth management operations.
The Federal Deposit Insurance Corporation (FDIC) supervises operations for Silicon Valley Bridge Bank NA.
Currently, SVB Group holds roughly $2.2 billion in liquidity, which includes interests, cash, and other “valuable investment securities accounts and other assets.”
However, according to figures, SVB Group has $3.3 billion in aggregate principal amount of unsecured notes, which do not affect SVB Capital or SVB Securities.
William Kosturos, SVB Group’s chief restructuring officer, said in a statement: “The Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic alternatives for its prized businesses and assets, especially SVB Capital and SVB Securities.”
SVB, Silvergate Fallout
The news comes as the ongoing collapse of SVB, Silvergate Bank, and now-defunct cryptocurrency platform FTX has sent shockwaves across the cryptocurrency community. News of the most recent collapse has severely limited financing options for firms aiming to invest in Web3 technologies.
HSBC Bank purchased SVB’s British wing on Wednesday for just £1, allowing it to operate the former’s business dealings with key tech firms and small and medium enterprises (SMEs) in the United Kingdom.
Silvergate Bank also collapsed earlier in the month after authorities found it had facilitated payments for FTX and Alameda Research, the latter’s subsidiary.
News of the bank’s dealings with FTX forced numerous partners such as Paxos, Galaxy Digital, BitStamp, Coinbase, and Gemini to sever ties to the institution.