Crypto Innovators Will ‘Ultimately Have to Use a Bank to Move Funds’

Ron Karpovich, Global Head of eCommerce Solutions at JPMorgan Chase, stated that there is “more partnership instead of competition” between the financial establishment and crypto disruptors when it comes to the payments space. Karpovich made his remarks during an interview on CNBC’s Squawk Box today, March 20. In response to a question from CNBC’s host as to how the banking giant is poised to compete with new and disruptive actors than can leverage blockchain and cryptocurrencies to offer the same services as the old guard, but with lower fees, Karpovich…

Silvergate Bank Adds 59 Crypto Clients, But Deposits Down $123 Million

Silvergate Bank, one of the few U.S. financial institutions that actively serve cryptocurrency businesses, added 59 such clients in the fourth quarter, but its deposits from the industry shrank 8 percent. According to an updated IPO prospectus filed with the Securities and Exchange Commission, as of Dec. 31, the San Diego-based bank had 542 clients in the industry, including crypto exchanges, institutional investors in digital assets, and others. That’s up from the 483 crypto clients as of Sept. 30 that Silvergate counted when it first filed to go public last year.…

QuadrigaCX CEO Used Personal Money to Fund Exchange During Litigation With Bank in 2018

The late founder of Canadian crypto exchange QuadrigaCX, Gerry Cotten, was purportedly funding the exchange with his own money while it was in litigation with a major Canadian bank. Cotten’s widow Jennifer Robertson revealed details about the exchange’s financial situation in a statement published on March 13. The statement reads that Cotten was putting his own money into Quadriga to fund user withdrawals in 2018, after the Canadian Imperial Bank of Commerce (CIBC) had frozen five accounts holding $21.6 million. Robertson stated: “While I had no direct knowledge of how…

US Sanctions Moscow-Based Bank Accused of Financing Venezuela’s Controversial Petro

The United States Treasury Department has added Moscow-based bank Evrofinance Mosnarbank to its sanctions list, alleging it was the “primary international financial institution willing to finance” Venezuela’s controversial national oil-backed cryptocurrency, Petro (PTR). The news was announced in an official Treasury press release published on March 11. In its statement, the Treasury accused Evrofinance — which is reportedly jointly owned by Russian and Venezuelan state-owned companies — of materially assisting efforts to launch the cryptocurrency, which it characterized as a “failed” project: “When the failed Venezuelan cryptocurrency, called the Petro,…

Bitcoin (BTC) Demand Could Stem From Increasing Bank Scandals

Bitcoin prices consolidating but bullish Obscure banks real culprits in money laundering Transactional volumes drop below average Findings indicate that centralized global banks are agents of money laundering and not Bitcoin or cryptocurrencies as peddled by mainstream media. With high transparency level of public blockchains as Bitcoin’s, the native coin, BTC stands to be the money of the web further pumping prices up. Bitcoin Price Analysis Fundamentals From the very inception, Bitcoin as tech is adapting. With a slew of accusations that the global, decentralized “new money” is anonymous and…

Medici Portfolio Firm Partners with Caribbean Bank to Pilot Digital Currency

Bitt, a portfolio firm of Overstock’s blockchain firm Medici, has partnered with the Eastern Caribbean Central Bank (ECCB) to pilot central bank digital currency (CBDC). Overstock announced the news in a press release on March 6. Barbados-based Bitt initially signed a contract with ECCB to conduct a pilot of the blockchain-issued Digital Eastern Caribbean Dollar (DXCD) on Feb. 21. The digital currency will be used within the Eastern Caribbean Currency Union (ECCU), and is set to be distributed by licensed financial institutions and non-bank financial institutions in the ECCU. DXCD…

Crypto Companies Still Run Into Trouble Opening Bank Accounts

Companies in the cryptocurrency industry still have trouble opening bank accounts, major financial publication Bloomberg reported on March 3. The report cites the complaint of Sam Bankman-Fried, CEO of quantitative crypto trading company Alameda Research, that “the standard answer of ‘just go to your local Chase branch’ doesn’t work in crypto.” Bankman-Fried also added that it is not illegal for banks to serve crypto businesses, but “it’s a massive compliance headache that they don’t want to put the resources in to solve.’’ Bloomberg also points out that, while the larger…

New York-Based Signature Bank to Offer Services to Fintech Firms in Bermuda

New York-based commercial bank Signature Bank will begin offering financial services to fintech firms in the island nation of Bermuda, local news daily the Royal Gazette reports on Feb. 28. According to the Royal Gazette, banks in Bermuda have mostly avoided dealing with the fintech industry, which is in need of financial services. Bermudian Premier David Burt said: “Signature Bank’s willingness to consider Bermuda-licensed businesses for banking services is a significant vote of confidence in and endorsement of Bermuda’s efforts to create a leading high standard regulatory regime for fintech…

Bahrain Central Bank Releases First Crypto Exchange to Graduate Its Regulatory Sandbox

Bahrain-based Shariah compliant cryptocurrency exchange Rain has first completed the Central Bank of Bahrain’s (CBB) Regulatory Sandbox, the Saudi Gazette reported on Feb. 26. Rain, which was founded in 2016, has reportedly become the first digital currency exchange to complete the sandbox. The exchange reportedly passed a Shariah compliance certification today, Feb. 26, which was led by a leading Sharia consultancy and audit firm licensed by the central bank of Bahrain, the Shariyah Review Bureau (SRB). During the qualification process, the SRB examined Rain’s brokerage service and resolved that the…