“The crypto #community is really full of an #eclectic group of people.”
“The crypto #community is really full of an #eclectic group of people.”
Those banks saw uneven #recovery when trading resumed, with Regions #Financial and Zions Bancorp springing back, and the others rising slightly.
The banking crisis may affect the #crypto industry even after prices stabilize, as the failed #Silvergate and Signature banks were crypto-friendly, unlike many traditional banks.
#despite having over $200 million in exposure to Silicon Valley Bank, #Bloomberg reported.
Cross River, a U.S.-based #financial services firm, offers #crypto solutions to #fintech companies.
Therefore, it is #essential for investors to carefully consider such risks and conduct their due #diligence before investing in any DeFi project.
For instance, the market volatility of #cryptocurrencies can create #significant risks for those investing in DeFi platforms.
The GFC and the collapse of SVB #highlighted the risks of #centralized financial systems, leading to an increased interest in the decentralization of banking.
introduced the world to #decentralized currency and challenged the #centralized banking system.
#Decentralized finance (DeFi) enables #financial systems that are transparent, secure and accessible to all.
In this case, the bank’s CAR is 15%, which #indicates that it has sufficient #capital to cover its potential losses from its lending and investment activities.
The risk #weighting determines the sum of the #bank’s assets and varies for each asset class, such as cash, debentures and bonds.
Tier 2 is #supplementary capital, including revalued and #undisclosed reserves and hybrid securities.
The Bank of #International Settlements separates capital into Tier 1 and Tier 2, with Tier 1 being the primary #measure of financial health, including shareholder equity and retained earnings.
A good CAR #indicates that a bank has enough capital to absorb losses and avoid insolvency, #protecting depositors’ funds.
The capital #adequacy ratio assesses a bank’s ability to pay #liabilities and handle credit and operational risks.
For example, let’s say a bank has loan loss #provisions of $100 million and #nonperforming loans of $50 million. The loan loss provisions coverage ratio for this bank would be:
This is the ratio of a bank’s loan loss #provisions to its non-#performing loans. It reflects the bank’s ability to cover potential loan losses with its provisions.
In #general, a lower cost-to-income ratio is preferable since it shows that the bank is more #profitable and efficient because it can generate more income with fewer expenses.
This means that the #bank spends $0.50 on operating costs for every dollar of #operational income it generates.
For example, let’s say a bank has total #operating expenses of $500 #million and a total operating income of $1 billion. The cost-to-income ratio for this bank would be:
This is the ratio of a bank’s #operating costs to its operating income. A lower ratio #indicates higher efficiency and profitability.
This example #illustrates how non-performing loans can have #significant implications for a bank’s financial position, and why it is crucial for banks to manage their loan portfolios effectively to minimize the risk of such loans.
As a result, the bank’s loan #portfolio would drop to $930 million, which would have an #effect on the bank’s profitability and capital adequacy ratios.
Let’s now #imagine that the bank must write off these non-#performing loans because it will not be able to recover $20 million from them.
If the bank has to set aside a #provision of 50% for these non-#performing loans, it would need to allocate $50 million toward provisions. This means that the bank’s net loan portfolio would be $950 million.
Let’s say a bank has a $1-billion loan portfolio. Because the #borrowers have missed #payments for more than 90 days, $100 million (or 10%) of these are classified as non-performing loans.
This is the ratio of the bank’s non-performing loans to its total loans. A high NPL ratio #indicates higher credit risk and #potential loan losses.
#Suppose that Bank B has a net income of $4 million and #shareholders’ equity of $20 million. Now, its ROE will be:
This measures the #profitability of a bank in relation to #shareholder equity. A higher ROE indicates better performance.
Nguyễn allegedly #promoted ChipMixer online and advised #customers on how to avoid Know You Customer (KYC) and Anti-Money Laundering (AML) measures.
In addition, #ChipMixer serviced American customers without #registering with the U.S. Treasury Department’s Financial Crimes Enforcement Network or collecting KYC/AML data.
The Justice #Department linked ChipMixer to a number of illegal activities #between August 2017 and March 2023,
#Cybercrime seeks to exploit boundaries, but the Department of Justice’s network of alliances #transcends borders and enables disruption of the criminal activity that jeopardizes our global cybersecurity
The Justice #Department linked ChipMixer to a number of illegal activities #between August 2017 and March 2023,
including #facilitating the laundering of $17 million in #Bitcoin (BTC) connected to #ransomware attacks.
it also helped #launder over $700 million in #Bitcoin connected to wallets flagged as #containing stolen funds,
#including funds from the Axie Infinity Ronin Bridge and #Harmony Horizon Bridge exploits, and over $200 million in #Bitcoin associated with the darknet, as well as the Bitcoin used by the Russian General Staff Main Intelligence Directorate to buy malware.
Elliptic said it had #analyzed the mixer’s blockchain transactions and found, #ChipMixer has been used to launder over $844 million in #Bitcoin that can be linked directly to illicit activity — including at least $666 million from thefts.
ChipMixer was already known to #international law enforcement. Its #processing of stolen funds was noticed at least as early as 2019.
#Cointelegraph’s Turner Wright and Rudy Takala discussed the recent events at #ETHDenver on the Decentralize with Cointelegraph podcast.
On this #episode of #Decentralize with Cointelegraph, United States policy reporter Turner Wright and #opinion editor Rudy Takala speak to listeners about their experiences at the ETHDenver conference from Feb. 24 to March
#Wright arrived in time to interview industry experts, check out a “hacker house” and watch #developers go through BUIDLWeek.
Takala talks about the #highlights of #ETHDenver and how it #compared with, in his opinion, better-organized conferences.
#England fall to T20 series defeat against !#Bangladesh
That's just about everything from today's game as #Bangladesh chalked up #back-to-back #T20 victories over England to take the series 2-0.
Circle #confirmed that the wire #transfers were not wholly processed, with $3.3 billion of USDC reserves still with SVB.
Such a move #highlights the difficulty centralized crypto companies face now that #Silvergate no longer provides them with round-the-clock banking services.
Notably, before the #announcement, USDC was sitting below its $1 peg at $0.98 as per #CoinGecko data; however, promptly after, the price dropped significantly to $0.93 at the time of writing.
to #things that don’t align with your goals, following your energy, #practicing positive thinking, and staying mindful.It’s #important to remember that change takes time and effort, so don’t expect to see #immediate results.
#Remember that it’s okay to make mistakes and have setbacks along the way. The #important thing is to keep going and stay committed to your
Small habits can have a #massive impact on your life. You can create a more #fulfilling and balanced life by saying”no”
The bank said it would be #closing its exchange network on March 3, claiming the #termination was a “risk-based decision.“
Many crypto firms, #including Coinbase, Paxos, Gemini, BitStamp and Galaxy Digital, announced in March they would cut ties to the bank #following an investigation into Silvergate’s alleged involvement in the collapse of FTX.
#According to the company, the Silvergate Bank liquidation plan included “full #repayment of all deposits".
In a March 8 #announcement, Silvergate Capital Corporation said the decision to shutter operations was “in light of recent industry and #regulatory developments
The parent company of #Silvergate Bank, known to many in the space as one of the major #crypto banks, has announced plans to “wind down operations” and liquidate the bank.
The #Financial Services and Markets Act was introduced into Parliament in July and amended in October to expand crypto #regulatory provisions.
Most British #crypto holders own no more than “several hundred pounds’” worth of #cryptocurrency, he added.
but not #eliminate the risks posed by cryptocurrency. Rathi said, “We are not going to be able to put in place a #framework that protects consumers from losses.”
The #Financial Services and Markets Act, when passed, would give the FCA new regulatory #powers over the crypto currency industry,
but said public #policy issues such as money laundering cannot be tackled without #regulation.
When asked if #regulation “undeservedly #legitimizes” crypto, Alder responded, “I agree,
The #interesting aspect to this is the degree to which crypto would need to adapt and #effectively detoxify in order to fit within that regime
If the #principle of “same risk, same regulation” were applied to crypto #businesses, Alder said:
Alder #responded that globally “this is not going to be looked at from a regulatory #perspective other than by financial regulators.” Financial regulation “needs to be appropriately tough,” Alder added.
He and CEO Nikhil Rathi answered #questions on predatory lending, mortgage rates and a number of other topics before #addressing crypto in the final minutes of the hearing.
To allow CBDCs to compete favorably with other payment #platforms, central banks are embedding several functionalities into their #experiments
Top of the list for the central banks is cross-border payment functionality, a feature that several #Southeast Asian countries are #considering
#Furthermore, the digital yuan has been integrated with the red envelope feature to allow users to send #customary Chinese New Year gifts to family and friends
Soochow #Securities announced that it is now possible to use digital yuan to purchase securities, while the People’s Bank of China (PBoC) has made #significant progress with contactless payments
Even sharing that the #Blockchain #Council could be of service regarding this matter
“Maybe the #Blockchain Council can sit as part of the #technical working group. We can bring in our experts so you know where to go…We
As an #independent body, as a collegial body, can now come in and help you,” he stated. “We’re not a for-profit or trade #organization
#Ourintent is to hasten the adoption of blockchain because we believe that it’s the #technology that will fuel the next generation
Lim added that their goal for the #Philippine Blockchain Week and the council is to make the Philippines a #blockchain capital
“When I ventured into this space, it’s really a bit #chaotic. It’s a pocket of #communities, but they don’t talk to one another
The #government wants to regulate, but they don’t know what to regulate [since] they don’t #understand [the space
Hopefully, the #Philippine Blockchain Week is really a #unifying platform for all of them to be in one room to understand
And when we leave the #Philippine #Blockchain Week, [hopefully] more working groups [could be created
Lim admits that this path will be #challenging, and the #conference will only solve some of the problems in the space