Banks and Digital Asset Exchanges: from Enemies to Quasi-brothers
It has taken banks a while to make up their minds about where they stand on Digital Assets. And no wonder: the anti-Wall Street narrative of the early years of Bitcoin, when the decentralization flag was militantly waved, rendering any kind of traditional financial intermediary obsolete, could only put them on the defensive.
However, at least since this latest bull cycle, it seems that the world's banks have begun to clear their heads and perceive Digital Assets more as an opportunity than a risk; within a couple of years, it will be rare to get a relevant bank without a Digital Asset offering. And on the crypto side, with exchanges such as Kraken and Custodia Bank (formerly Avanti) having been licensed as charter banks, the boundaries between these segments will become less and less perceivable.
The fact that the so-called cryptobanks will soon be able to have master accounts with the FED would, to a practical extent, level out the asymmetric relations that these new players have had so far with traditional banks, which have tended to look askance and even avoid dealing with exchanges that seek to open bank accounts in order to be able to operate.
All in all, the bancarization of Digital Asset providers does not come without friction. It is almost a certainty that there will be increased regulatory scrutiny and pressure on these new institutions (and, therefore, the costs of legal compliance), especially from regulators who are still wary of the sector. However, legal recognition will bring more efficiency and independence to on-ramps and off-ramps movements, as well as greater legitimacy in the eyes of investors.
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Digital Asset Banks would access master accounts in Fed system
The Federal Reserve will issue final guidance for new banking institutions, such as Digital Asset Banks, to access master accounts with the core banking system and thus avoid the need for intermediary banks to settle their transactions.
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Federal Reserve requires banks to notify before getting involved with Digital Assets
Banks supervised by the Federal Reserve Board must notify before engaging in activities related to Digital Assets, as well as assess whether these activities are legally permissible and determine whether they require regulatory documentation.
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Senator accuses FDIC of hindering banks from dealing with Digital Assets companies
Republican Senator Pat Toomey issued a letter to the Federal Deposit Insurance Corporation (FDIC) claiming that the agency is "improperly taking actions to deter banks from doing business with legal companies linked to Digital Assets," citing communications from an internal whistleblower.
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European Central Bank wants to "harmonize" how banks offer Digital Assets
In a recent statement, the European Central Bank expressed its intentions to "harmonize", across European Union jurisdictions, the way banks offer Digital Assets in order to ensure that institutions have sufficient capital and expertise before granting licenses.
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FDIC issues Cease and Desist Order against FTX US and four other companies
The Federal Deposit Insurance Corporation (FDIC) issued cease and desist orders to five companies, including FTX US, for alleged false communications regarding FDIC insurance deposits linked to Digital Assets products.
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BTG Pactual Investment Bank launches platform for trading Digital Assets
BTG Pactual, Latin America's largest investment bank with US$ 112B in AUM, launched its Digital Assets trading platform Mynt on the same day as its competing XP, allowing exposure to Digital Assets.
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CME to Offer ETH Options Contracts
Anticipating a surge of interest due to the imminence of The Merge on Ethereum, derivatives exchange CME announced that it will offer ETH options contracts beginning September 12.
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Australia to get a new Digital Assets spot ETF from asset manager Monochrome
Digital Assets-focused asset management firm Monochrome announced that its partner Vasco Trustees received a financial license to operate two spot ETFs that will track bitcoin and ether prices on the Australian Securities Exchange (ASX).
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Colombia contemplates creating a digital currency
The government of Gustavo Petro in Colombia is contemplating the creation of a digital currency to facilitate the traceability of transactions made by consumers, according to the new director of the National Customs Directorate (DIAN), Luis Carlos Reyes.
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Tether turns to BDO Italia to certify its reserves and reduces its commercial paper holdings by 58%
Seeking to provide greater certainty and transparency, the issuer of USDT Tether turned to BDO Italy, a member of the accounting firm BDO Global, to issue monthly reserve reviews and certifications. The firm's first report shows a 58% decrease of commercial paper in Tether's reserves.
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Digital Currency Group registers to lobby for Digital Assets
The parent company of Grayscale, Genesis Trading and Coindesk, Digital Currency Group, has registered its VP of Public Policy to lobby the U.S. Senate. However, they have not specified their precise objectives.
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Coin Center to appeal Treasury Department sanctions on Tornado Cash
The Digital Assets-focused think tank, Coin Center, announced that it will appeal the decision to include Tornado Cash within the Specially Designated Nationals (SDN) list as it considers that the decision exceeds the Treasury Department's authority.
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Number of scammers decreases but Digital Assets hacks increase
According to the latest report from forensic analysis firm Chainalysis, fewer and fewer people are falling victim to scams in the Digital Assets Ecosystem. However, in contrast to the decrease in scams, there is an increase in hacking cases.
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- Lacking information in the context and moments of the market
- Executing operations inefficiently
- Using unreliable service providers and infrastructure
- Closing of accounts and freezing of funds
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