Bitcoin and Ether have experienced slight losses today after Federal Reserve Chairman Jerome Powell stated the Fed is ready to increase the pace of rate hikes. However, the flagship cryptocurrencies did bounce back after initially tumbling.
Recently, Multicoin Capital's crypto fund reported a 91% drop in value, which you would think is indicative of a pervading trend throughout the industry. However, crypto remains resilient overall. While some funds like Galois Capital have failed, many are thriving in the long run.
Cryptorank shows that significant funds like Delphi Digital, Polychain, and Animoca are still in the green over the last three years, despite recent drops of 80%, 64%, and 81%. Additionally, some funds have recovered in the past few months due to a mini-bull market.
1 - The FDIC is reportedly discussing options to keep crypto-focused bank Silvergate Capital in business. One possibility is recruiting investors from the crypto industry to boost the bank's liquidity. FDIC examiners met with Silvergate management at the bank's California headquarters last week.
The bank recently saw a mass exodus of big-name crypto clients after the delayed filing of its annual report. They also warned that pending regulatory inquiries may impact operations.
2 - India has notified the crypto industry of its obligation to comply with the Prevention of Money-Laundering Act (PMLA) 2002 for various crypto transactions. This includes exchanges, transfers, safekeeping, and administration of virtual assets.
Financial institutions are obliged to maintain a record of all transactions for the last ten years, provide these records to officials if demanded, and verify the identity of all clients. The notification will complicate the life of crypto companies in India, as regulators worldwide tighten AML standards for crypto.
3 - Binance has extended its market share for the fourth consecutive month, reaching an all-time high of 61.8% in February. Despite increased regulatory scrutiny, the exchange recorded its highest-ever market share at 62.9% and its spot volumes increased 13.7% to $504 billion.
Coinbase and Kraken follow in volume, trading at $39.9 billion and $19.3 billion, respectively. Its market dominance is attributed to the vast amount of liquidity available on the exchange, which reduces slippage costs and spreads for traders.
4 - Canadian crypto miner Pow. re has secured a five-year fixed rate agreement for 100 MW of power in Paraguay, near the Itaipu dam, one of the largest in the world. Pow.re's site will bring 4.5 EH/s of computing power when completed near Yguazu's newly built substation.
The country has abundant cheap hydroelectricity, which has attracted crypto miners. However, it has also led to conflict with the national utility, ANDE, which claims the industry does not contribute enough to the local economy and lacks the infrastructure to make the electricity available for use.
5 - Federal Reserve Chairman Jerome Powell stated that the central bank does not want to hinder cryptocurrency innovation, but there are still risks and fraud in the industry. He acknowledged the practical applications of blockchain technology but cautioned banks concerning interactions with crypto.
Powell welcomed the possibility of a new legal framework for crypto and suggested that regulated stablecoins could have a place in the financial system. The SEC has been cracking down on crypto companies, particularly concerning stablecoins and staking services.
6 - German financial regulator BaFin has stated that no NFTs are currently classified as securities, which would subject them to financial regulations such as licenses and money laundering supervision. However, BaFin officials noted that certain NFTs can be classified as securities in the future, particularly if they offer interest payments. The treatment of NFTs is a crucial issue for the Markets in Crypto Assets regulation (MiCA), which will apply in Germany and the European Union in the coming years.