Bank of England halts Silicon Valley Bank UK branch operations
The BoE explained that a bank insolvency procedure would enable eligible depositors to receive payments up to the protected limit of £85,000 or up to £170,000 for joint accounts through the Financial Services Compensation Scheme as quickly as possible. Bank liquidators would manage the remaining assets and liabilities of SVB U.K. during its insolvency proceedings, with any recoveries distributed to its creditors.
The announcement has raised concerns among several UK venture capitalists (VCs), who have expressed their support for SVB U.K. Index Ventures and Atomico issued a joint statement on March 12 endorsing SVB U.K., describing it as a trusted and valued partner that plays a pivotal role in supporting startups in the UK. The Coalition for a Digital Economy, a UK nonprofit that campaigns for policies to support digital startups, stated on March 11 that a large number of startups and investors in the ecosystem have significant exposure to SVB U.K. and will be very concerned.
Meanwhile, a Castle Hill report published on March 11 revealed that prominent blockchain VCs have over $6 billion in assets at the now-defunct bank. This includes $2.85 billion from Andreessen Horowitz, $1.72 billion from Paradigm, and $560 million from Pantera Capital.
The closure of SVB U.K. will have significant repercussions for startups and investors who have relied on the bank for financial services. Several prominent blockchain VCs have a substantial amount of assets at the bank, and their exposure to the insolvency proceedings could have a severe impact on the blockchain ecosystem. The closure also highlights the potential risks associated with relying on banks with limited operations and no critical functions in the financial system.
Coinbase Petitions SEC on Staking
Coinbase argues that staking is not an investment of money, as the opportunity cost of staking is not an investment. Users retain full authority over their assets, with the ability to unstake them, sell, hypothecate, vote, pledge, or otherwise dispose of them independently of the service provider. The rewards users receive are simply payments for services rendered, and core staking services entail ministerial maintenance and not managerial efforts in the sense of traditional investing.
The petition cites several historical precedents that can guide the SEC on the current regulatory work with crypto staking. These include the 1973 Committee on Special Investment Advisory Services, the SEC’s Regulation Fair Disclosure from 2000, and the Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act of 1934: The DAO, from 2017. Coinbase urges regulators to consider the economic consequences of their actions on the digital asset ecosystem and take a different approach to the treatment of staking services.
Coinbase publicly distanced itself from Kraken’s staking program in February, with CEO Brian Armstrong expressing his readiness to defend the company’s position in court “if needed.” Despite the SEC’s actions, Coinbase has reiterated to customers that its staking services will continue and “may actually increase.”
Overall, Coinbase’s petition to the SEC on staking argues that the practice should not be universally labeled as securities. It provides a detailed argument based on historical precedents and highlights the economic consequences of regulatory actions on the digital asset ecosystem.
Arbitrum’s ARB Token Airdrop Triggers OTC Trading
Arbitrum One and Arbitrum Nova are networks that allow users to transact on the Ethereum blockchain with better speeds and lower fees. With 55% of the Ethereum layer 2 market share, according to layer-2 analytics site L2Beat, anticipation for an Arbitrum token has been at a fever pitch since the network went live in 2021.
The airdrop will grant 11.5% of the total supply to eligible Arbitrum users and 1.1% to DAOs operating in the Arbitrum ecosystem. With ARB’s total circulation of 10 billion, the Arbitrum community will control 56% of the tokens.
The announcement of the airdrop has triggered a surge in over-the-counter (OTC) trading of unreleased ARB tokens. OTC trading allows easy buying and selling of cryptocurrencies directly between sellers and buyers. The process is usually very fast, with funds being transferred directly from a bank account to the seller. In this case, when a price is agreed on by the buyer and seller, the seller receives payment from the buyer and then gives up the seed phrase linked to the eligible wallet.
However, the Arbitrum community has also warned others to stay vigilant after reports of phishing websites and scams offering Arbitrum airdrop tokens. As one of the most significant crypto projects without a token, the anticipation for an Arbitrum token has been high since the network went live in 2021.
Arbitrum’s main competitor in the Ethereum scaling space, Optimism, launched its OP token nearly a year ago when it transitioned to DAO governance. However, the launch of the ARB token puts Arbitrum in direct competition with Optimism and could lead to further developments in the Ethereum scaling space.
In summary, the announcement of the ARB token airdrop by Arbitrum Foundation has triggered over-the-counter (OTC) trading of unreleased tokens, with 11.5% of the total supply being granted to eligible Arbitrum users and 1.1% to DAOs in the Arbitrum ecosystem. However, the community has also warned others to be cautious of phishing websites and scams offering Arbitrum airdrop tokens. With the launch of the ARB token, Arbitrum is now in direct competition with Optimism in the Ethereum scaling space.
SpankChain Shuts Down SpankPay Crypto Payment Processor
In a Twitter thread, SpankPay announced that the decision to close the payment processor was due to the escalating hostility of the banking environment towards adult industry payment processors, which had made it untenable for the small team and niche market it served. Despite the shutdown, the company reassured users that their money was safe and would be returned as soon as possible.
SpankPay was launched in July 2019 as an adult-industry-friendly payment solution that enabled adult entertainers and merchants to accept cryptocurrency for their services. The closure of SpankPay is a significant blow to SpankChain, as the platform was a key part of its blockchain ecosystem.
The adult entertainment industry has always faced challenges with traditional banking systems, as banks have been reluctant to work with the industry due to its controversial nature. SpankChain sought to change this by providing a blockchain-based platform that allowed adult content creators to transact directly with their customers, cutting out traditional intermediaries.
The closure of SpankPay highlights the ongoing challenges faced by the adult entertainment industry in accessing traditional banking services. The industry has been forced to rely on alternative payment methods, such as cryptocurrencies, to transact with customers. The use of cryptocurrencies has enabled adult content creators to access a global market and avoid the restrictions imposed by traditional banks.
Despite the challenges, SpankChain remains committed to advancing the adult industry and has promised to continue developing and investing in products that serve the niche market it serves. The closure of SpankPay is a significant setback for the company, but it is determined to continue to innovate and find new ways to help adult content creators succeed in the digital age.
Coinbase Petitions SEC on Staking
TikTok CEO appeals to U.S. users ahead of House testimony
Arbitrum’s ARB Token Airdrop Triggers OTC Trading
Walmart-owned Sam’s Club plans to open about 30 new stores over next five years
22/7 Project’s Reina Miyase Graduates From Franchise
NBUniversal expects Peacock losses to peak this year as streamer slowly adds subscribers
Watch: Bride Arrives At Wedding Venue In Madhya Pradesh Driving Tractor
In September 2022, ‘The Lord of the Rings: Gollum’ will be released for PC, PS5, and Xbox Series X.
Dhaakad Day 1 Box Office Report: Kangana Ranaut’s film debuts poorly in front of Bhool Bhulaiyaa 2 by Kartik Aaryan.
Entertainment2 months ago
Fake heiress Anna ‘Delvey’ Sorokin, while on house arrest, to star in new reality show – National | Globalnews.ca
Tech2 months ago
Tesla shares pop on ‘better than feared’ earnings results, demand outlook
Crypto2 months ago
Tesla refuses to sell any more Bitcoin
Business2 months ago
Southwest forecasts lingering losses as bookings slow in wake of holiday meltdown
Anime & Manga2 months ago
StoneBot Comics Provides Statement on Kamen Rider Kuuga Manga’s Translation Differences from Initial Preview
Odisha News2 months ago
Police Medals: 34 Odisha Police personnel awarded on Republic Day
Politics2 months ago
Chhattisgarh CM Bhupesh Baghel announces unemployment allowance
Fashion2 months ago
Robert Wun Couture Spring 2023
You must be logged in to post a comment Login
You must log in to post a comment.