• Lithuanian financial watchdog has released a list of payment service providers to be investigated in 2023.
• Binance Visa card issuer, Contis, is one of the networks under investigation.
• Investigations into Contis Bank will be conducted in Q1 2023, which could affect services delivered by Binance exchange.
The Lithuanian financial watchdog recently released a detailed list of payment service providers to be investigated in 2023, causing uncertainties for some crypto networks. The list includes Revolut, Swedbank, UCCU, LTL Credit union, Finansines Paslaugos Contis, UAB Rebellion Fintech Services, UAB Guru Pay, and many more. Among the networks under investigation is Contis, a business partner with Binance exchange.
Contis Bank is being investigated for various issues, including security and ICT risk management issues, and violations of anti-money laundering and counter-terrorist financing provisions. The connection between Contis and Binance could have an impact on service delivery in the exchange, especially in the first quarter of 2023 when the investigations are expected to take place.
Binance has faced regulatory scrutiny from various regulatory bodies, including the U.S. Department of Justice. Last year, the exchange was fined for failing to register as a money service business in the United States. In addition, the platform was accused of involvement in the laundering of stolen funds. Binance is yet to comment on the current situation in Lithuania, but the connection between Contis and the exchange could result in further regulatory issues.
It remains to be seen how the investigations into Contis Bank will affect Binance exchange and other crypto networks. In the meantime, it is important for crypto users to be aware of the situation and take necessary precautions to protect their investments.
• Grayscale recently filed a lawsuit against the Securities and Exchange Commission challenging the agency’s decision to reject the conversion of its Grayscale Bitcoin Trust into an exchange-traded fund.
• The District of Columbia Court of Appeals has set a date to hear oral arguments in the case in March.
• After a difficult 2022 marked by difficult macroeconomic circumstances, investors are now staying away from the crypto market.
The crypto industry has experienced a tumultuous period in recent years, with the events of the past year having a particularly significant effect on the sector. In June 2022, Grayscale, a digital asset manager, filed a lawsuit against the Securities and Exchange Commission (SEC) after the regulator denied its request to convert its Bitcoin Trust, commonly known by its ticker GBTC, into an exchange-traded fund (ETF). Grayscale’s decision to pursue the ETF, which would be backed by actual bitcoins instead of bitcoin derivatives, followed the SEC’s approval of ProShares’ futures-based bitcoin ETF in October 2021.
Despite the SEC’s delay in making a decision, the regulator ultimately denied Grayscale’s application last summer citing the company’s reluctance to respond to inquiries regarding worries about market manipulation and investor safeguards. Grayscale has since sought to challenge the SEC’s decision, and the District of Columbia Court of Appeals has now set a date to hear oral arguments in the case. Both parties will present their arguments on March 7 at 9:30 a.m. ET.
The turbulent conditions in the crypto market have only been compounded by the events of the past year. In addition to the SEC’s denial of the Grayscale ETF, the industry has faced its worst challenges in 2022 with the collapse of Terra, the bankruptcy of Three Arrows Capital, the demise of Celsius, the fall of Voyager, and the fall of FTX. This difficult macroeconomic environment has led to many investors staying away from the crypto market, with Grayscale’s sister company, the crypto lender Genesis, filing for bankruptcy last week.
Despite the challenging circumstances, Grayscale is determined to pursue its case against the SEC. The company’s legal team is confident that the court will recognize the merits of its arguments, and that its Bitcoin Trust ETF will be approved by the regulator. If the court rules in Grayscale’s favor, it could pave the way for the approval of other crypto ETFs, which would likely bring a new wave of investment into the industry.
• Silvergate Capital announced its Q4 results, resulting in a yearly loss of $949 million.
• The firm faced a net loss of nearly $1 billion at the end of Q4 due to a class action lawsuit and deposit outflows.
• Silvergate reported $117 billion in transactions in Q4, a 4% increase from the third quarter and a 47% decrease from the fourth quarter of 2021.
Silvergate Capital is a leading global virtual asset bank that recently announced its Q4 results, leading to a yearly loss of $949 million. This is a substantial drop from the $75.5 million profit the firm created in 2021, and it is a bad sign for the firm. The organization faced a net loss of nearly $1 billion at the end of Q4, which was due to a class action lawsuit on December 16, 2022 and deposit outflows, and it had to seek means of liquidity maintenance.
Silvergate reported $117 billion in transactions in Q4, a 4% increase from the third quarter ($112.6 billion) and a 47% decrease compared to the fourth quarter of 2021 ($219 billion). The Chief Officer of Silvergate stated that he still believed in the company and that they were adjusting to losses in the virtual currency world. He added that they decided to remain focused on providing value-added services for their clients and that the firm would execute a plan to sustain a highly liquid balance sheet with a fortified capital position.
The organization had 1,620 customers as of December 31, 2022, and it is aiming to maintain liquidity and bolster its capital position in order to remain competitive in the virtual asset banking industry. Despite the losses, Silvergate is still devoted to providing beneficial services to its clients, utilizing its experience and resources to come up with innovative solutions that will ultimately help it remain profitable.
• An anonymous whale recently withdrew $34.7 million in SHIB from Binance.
• The whale transferred 4,000,000,000,000 SHIB on the Ethereum blockchain, and it was valued at around $34.7 million at the time of the transaction.
• The whale may have moved the coins to a staking platform, which suggests they have a more positive outlook on the potential of the meme currency.
An anonymous whale recently made a huge move in the cryptocurrency market. On January 10th, 2023 at 5:23 pm, the whale withdrew $34.7 million in SHIB from Binance. This transaction featured the transfer of 4,000,000,000,000 SHIB on the Ethereum blockchain, which was valued at around $34.7 million at the time of the transaction.
This huge withdrawal has caught the attention of the crypto community and many analysts are wondering what the whale plans to do with the coins. The sending address for this transaction was a wallet associated with the cryptocurrency exchange Binance, while the receiving address was related to the SHIB staking service. This suggests that the whale is planning to lock the coins in a staking contract for a certain period in exchange for incentives.
The fact that the whale has moved the coins to a staking platform has caused many to suggest that they have a more positive outlook on the potential of the meme currency. This is because staking indicates that the investor intends to keep the coins in their possession for a significant amount of time. If this is the case, it could benefit the price of SHIB in the long run.
However, the effects of this transaction on the market remain to be seen. It is unclear whether the whale’s actions will push SHIB higher or not. Only time will tell how the price will react to their actions. Nonetheless, this large move from an anonymous whale is certainly making waves in the crypto world.
• Radix DLT, a DeFi-centric smart contracting platform, has released the concept images of its web3 wallet.
• The wallet is designed to offer a secure yet easy-to-use interface that drastically enhances user experience.
• Radix plans to release the Babylon Mainnet showcasing the five technologies infused into the wallet.
Radix DLT is a decentralized finance-centric smart contracting platform that enables developers to build and deploy dApps faster in a scalable environment. Recently, the team has released the concept images of their web3 wallet, which conveys their vision of rolling out a secure yet easy-to-use wallet that drastically enhances user experience.
The Radix wallet is designed to make it easy for users to interact with crypto dApps fluidly, and allows projects to leverage the Radix DLT base layer. Moreover, it offers better levels of security than those in traditional finance because of the integration of the web3. With the wallet, users can engage in DeFi and other blockchain innovations with confidence.
The Chief Product Officer of Radix, Matthew Hine, said that the wallet provides a user experience that gets out of the way and lets users engage effortlessly. He also added that this kind of user experience will make Web3, DeFi, and even the Metaverse actually relevant to people.
Early this year, Radix plans to release the Babylon Mainnet showcasing the five technologies primarily infused into the Radix wallet. Once live, the wallet will make it easier for users to interact with crypto dApps, and be ecosystem-ready for projects keen on leveraging the Radix DLT base layer.
The team is committed to providing a secure and easy-to-use wallet that will drastically enhance user experience when interacting with DeFi and blockchain technologies. The release of the concept images of their web3 wallet is only the beginning, and the team is looking forward to releasing the Babylon Mainnet in the near future.