A week after [Signature Bank closed](/news/article/why-signature-bank-fell-so-fast), Flagstar Bank, a New York Community Bank subsidiary, has agreed to purchase a huge chunk of the failed institution in a $2.7 billion deal.

According to the Federal Deposit Insurance Corporation (FDIC), all of Signature Bank's 40 branches will operate as Flagstar Bank beginning Monday. Customers won't need to make any changes to conduct business with the new bank. 

## Flagstar bid excluded $4 billion crypto deposits

FDIC's 19 March [press statement](https://www.fdic.gov/news/press-releases/2023/pr23021.html) didn’t address the fate of the much larger [Silicon Valley Bank](/news/article/silicon-valley-bank-uk-to-be-bought-by-hsbc) (SVB) that the regulator took over two days before taking over Signature Bank.

The takeover deal includes purchasing Signature Bank's assets worth $38.4bn. SVB had $209 billion in assets compared to Signature Bank's $110.36 billion.

Per the announcement, the Flagstar takeover bid, which includes a $60 billion loan portfolio, excluded $4 billion associated with Signature's crypto banking business. Accordingly, crypto deposits will remain with the agency in receivership, and FDIC will provide [them directly to the customers](https://twitter.com/nic__carter/status/1637609420929597440) concerned.

The shutting down of Signature Bank came hot on the heels of the fall of the crypto-friendly [Silvergate Capital](/news/article/silvergate-bank-crisis-sees-crypto-tank) earlier in March and the 12 March closure of SVB, which previously caused [Circle’s](/news/article/circle-usdc) USDC to stumble and lose its peg to the US dollar. Commenting during a previous press interview, Circle's Chief Strategy Officer [Dante Disparte](https://forkast.news/video-audio/circles-disparte-crypto-banking-risks/) opined that the ongoing fallout was a stress test for traditional finance and emerging cryptocurrencies, presenting an opportunity for them to "weather the storm side by side".

## Traditional banks introducing risk to the crypto space

The unwillingness of Flagstar Bank to take over all of Signature Bank's assets, including the crypto-related ones, indicates that banks are becoming wary of taking on risk due to the spreading banking crisis.

The ongoing banking failures demonstrate that, contrary to what everyone else might have thought, traditional banks are now introducing risk to the crypto space. The current state of affairs is the opposite of the "travel risk" regulators routinely offered to would-be crypto investors on the risk that crypto would introduce to banking.

The back-to-back failure of Silicon Valley Bank and Signature sparked a nationwide fear that it could kick off a more significant crisis of confidence within the US banking system.

FDIC is looking to step in and save the situation by brokering sales to pay back the failed banks' depositors to more vital financial institutions.


Flagstar to Buy Signature's Non-Crypto Assets 

The collapse of crypto-friendly Signature Bank happened so fast that it qualifies to become a textbook case of a classic bank run. Together with Silvergate and [Silicon Valley Bank](/news/article/silicon-valley-bank-uk-to-be-bought-by-hsbc) (SVB), the trio that have been the go-to financial institutions involved in crypto banking suffered massive operational blows within less than a week.  

Startled by the sudden collapse of SVB, customers had a run on Signature Bank last Friday, March 10. They withdrew more than $10 billion in deposits, leading to the third-largest bank failure in the history of the US. Regulator Federal Deposit Insurance Corporation (FDIC) [announced last Sunday](https://www.fdic.gov/news/press-releases/2023/pr23017.html) that it was taking over Signature to protect depositors and help stabilize the US financial system.  
  
## Customers had a run on Signature Bank

The sudden move has shocked the New York-based institution, which has deep ties with not only the crypto but also the legal and real estate industries and boasts more than 40 branches, deposits of $88.59 billion, and assets worth $110.36 billion by the end of 2022. 

Trouble for US banks associated with crypto and tech startups reached a crescendo last week with the announcement of the winding down of the crypto-friendly Silvergate Bank. 

While [Silvergate’s demise was imminent](/news/article/silvergate-on-verge-of-collapse), it ignited panic about uninsured customer deposits in institutions. That led to Venture capital investors and founders draining their accounts at SVB Thursday last week and its subsequent seizure by midday Friday. The ensuing worries must have spread to Signature, First Republic, and others that now risk a similar fate out of fears that uninsured deposits could be locked up or lose value. Both situations could be fatal to startups.

## Decision not directly related to crypto

According to New York’s [financial regulator](https://www.reuters.com/business/finance/signature-banks-closure-had-nothing-do-with-crypto-new-york-regulator-2023-03-14/), the decision to seize Signature Bank wasn’t directly related to crypto but rather a “crisis of confidence” in the institution’s leadership following the SVB crisis. 

Signature has been an integral institution for the crypto industry and hosts tools that facilitate digital transactions for mainstream crypto companies. The bank is part of a small group of mainstream banks serving the crypto industry.  

Federal regulators will now most likely shine their spotlight on other banks offering crypto services, while traditional banks could think twice before dipping their toes. Considering the volatility of the crypto market and the cost of maintaining compliance, there may be a need for players within the crypto space to work harder to retain the growing interest in banks experimenting with crypto and related blockchain technology.


Why Signature Bank Fell So Fast

Giant banking firm HSBC Holdings Plc (HSBA) is planning to buy Silicon Valley Bank's British unit. According to the [filing](https://www.londonstockexchange.com/news-article/HSBA/hsbc-acquires-silicon-valley-bank-uk/15871682) released on 13 March, 2023, HSBC will acquire the firm for £1.

SVB UK collapsed, reeling from severe losses. The finance company had total debts of around £5.5 billion and had deposits of more than £6.7 billion until 10 March.

## UK Government facilitated the Silicon Valley Bank sale

On Monday, the Bank of England also released an [official statement](https://www.bankofengland.co.uk/news/2023/march/statement-on-silicon-valley-bank) regarding the matter. As per the statement, a number of other UK authorities were also involved. These included HM Treasury, the Prudential Regulation Authority, and the Financial Conduct Authority.
  
HSBC itself is regulated by the [FCA](/news/article/fca-crypto-regulation) and PRA, a fact which is likely help SVB UK recover from the losses. The statement issued by the Bank of England said that the step was taken to strengthen and stabilise the banking system of the United Kingdom. 

The central bank statement added that the move would ensure the continuity of banking services, minimise disruption to the country's tech sector, and support.

The Bank of England also guaranteed that all depositors' funds with the collapsed bank would be secured after its sale to HSBC.

## PM Rishi Sunak on the decline of SVB

The Bank of England released the official statement detailing plans for the sale of SVB UK just after [Britain's Prime Minister Rishi Sunak](/news/article/rishi-sunak-crypto-believer-uk-pm) assured the nation about the "sound" financial system of the country.

In talks with the media regarding the US bank's subsidiary's downfall, the Prime Minister said, "There's nothing to worry about."

He went on to add further reassurance that the country's financial health is "resilient" and would not be affected by the decline of SVB. The PM is currently in San Diego, where he will likely meet President Joe Biden.


silicon valley bank branch with red filter and money falling

Silicon Valley Bank UK to Be Bought by HSBC 

## Silvergate Bank crisis sees crypto market tanking

[Silvergate Bank](/news/total-crypto-market-cap-takes-a-hit-amid-silvergate-bank-crisis), one of the leading institutions for innovative businesses in the cryptocurrency and financial technology (Fintech) industry, has seen its market value plunge by 60% in March, data from Yahoo Finance showed. 

Due to the bank’s standing as a key player in the on-and off-ramping of the cryptocurrency space, seeing its stock 'SI' trade in red has led to a huge sell-off in the cryptocurrency market. 

Overall, [approximately $70 billion](https://www.tradingview.com/chart/1okY2Hep/?symbol=CRYPTOCAP%3ATOTAL) has been wiped off the total market capitalization of the entire decentralized finance sector, with current metrics at around $984 billion after the industry soared above the $1 trillion mark on the opening day of March.

![tradingview graph of crypto market cap](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Screenshot_2023_03_06_at_10_59_10_c20ecbacf6.webp)

 
While Bitcoin and Ethereum (ETH) always lead gains and losses, altcoins such as Klaytn (KLAY), Theta Network (THETA), Basic Attention Token (BAT), Zilliqa (ZIL), Optimism (OP), Lido DAO (LDO), Flow (FLOW), and the Sandbox (SAND) have seen double percentage losses in the past week.  

## Silvergate Bank's stock price went down after the SEC filing disappointment

On Wednesday, 1 March, the financial institution disclosed in a US Securities and Exchange Commission (SEC) [filing](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001312109/14a9b861-b10a-458d-8f9d-44f0d18bc75e.pdf) that its annual 10-K report will not be submitted in time. 

The [10-K](investopedia.com/terms/1/10-k.asp) is an annual report filed by publicly-traded companies about their financial performance within a 365-day period. It covers the organization's history, structure, executive compensation, financial statements, and earnings per share (EPS).


Not being able to fulfil this requirement raised eyebrows among the company's various stakeholders after the firm said it would be examining its ability to continue operating.
In addition, the bank said it is re-evaluating its business strategies under the [regulatory and business challenges](/news/article/is-crypto-regulated-across-the-globe) it faces.   

## Many crypto firms are moving away from the bank 

In light of the company's stock price decrease, cryptocurrencyy heavyweights such as Galaxy Digital and Coinbase Global [announced](https://www.cnbc.com/2023/03/03/coinbase-galaxy-digital-abandon-silvergate-after-bank-warns-about-its-viability.html) on Thursday, 2 March, that they have dropped Silvergate as their banking partner. 

Aside from these powerhouses in the [crypto](/news/article/dash-cryptocurrency-price-prediction) economy, the European cryptocurrency exchange Bitstamp, CBOE’s digital asset exchange, and stablecoin issuers Circle and Paxos have also discontinued their partnerships with the financial institution.

Despite the crypto market being down by $70 billion in March, the entire industry has been on a rebound in 2023 with a spike of 30% year-to-date (YTD) from about $756 billion on 1 January to more than $980 billion on 6 March.


red image of silvergate bank with crypto falling down

Silvergate Bank Crisis Sees Crypto Market Tank

[The UK's](/news/article/uk-crypto-tax-regulations) Starling Bank has tightened its grip on crypto trading, [announcing a ban on all crypto transactions](https://twitter.com/StarlingBank/status/1595095825884930050?t=8EiBd2taolnSd4Wb8VbUvw&s=19) for users, describing the activity as "high risk and heavily used for criminal purposes"'.

Following the collapse of the [FTX exchange](/news/article/ftx-bankrupt-who-to-blame) earlier this month, banks have stressed the need for crypto regulation.

## Starling Bank customers woke up to bad news

Starling Bank crypto customers received a text message stating, "we view the crypto activity as high risk".
The bank said it had decided to halt all card payments to cryptocurrency merchants and "impose additional limitations on outgoing and incoming transfers".

It comes just two weeks after [Santander imposed new limits on Bitcoin and Ethereum](/news/article/santander-uk-news) transactions and warned of the potential consequences of investing in crypto assets.

As of 15 November, Santander's mobile and online banking customers were limited to a £1,000 limit per cryptocurrency transaction and a £3,000 cap on transactions made over a rolling 30-day period. While payments will still be allowed from the cryptocurrency exchange, including Binance, payments sent to Binance will remain blocked.

## Starling is not backing off

A representative of Starling Bank said the institution has had restrictions on cryptocurrency transactions of varying degrees for a long time.

The purpose of this communication, he continued, was to ensure that this was understood by clients who had previously completed such transactions.

He added that while the cutting-edge technology that underlies cryptocurrencies has significant advantages, the high risk and widespread criminal use meant the organisation could no longer support them.

## More banks restrict crypto transactions

The Starling Bank crypto stance is the latest [bank](/news/article/crypto-friendly-banks-uk) move to restrict customer crypto activity. Lloyds, [Barclays](/news/article/barclays-crypto), and RBS have implemented various new measures, such as blocking transactions with cryptocurrency exchanges.

According to finder.com, 47% of UK banks forbid customers from communicating with cryptocurrency exchanges.


Starling Bank Bans Crypto Trading

Cryptocurrencies are becoming increasingly popular, though there are some legitimate concerns about the industry. As a result, it is not every bank, including UK banks, which will allow customers to make cryptocurrency purchases.

They don't want to risk losing money from customers, primarily if they could be held accountable for allowing it to happen.
If you want to trade crypto, you should reconsider who you bank with. Let's look at the crypto world and the UK banks that allow crypto.

## Is cryptocurrency legal in the United Kingdom?

In the United Kingdom, it is legal to own and trade cryptocurrencies. They are not currently classified as a currency but as a property asset, even though there is no tangible asset to own.

Any cryptocurrency exchange in the UK must be registered with the Financial Conduct Authority, which regulates the industry to prevent money laundering. The [FCA](/news/article/fca-crypto-regulation) is adamant that any trading platform must be able to demonstrate compliance with anti-money laundering regulations.

## Which UK banks allow cryptocurrency purchases?

Here's a list of some banks to consider if you're interested in trading cryptocurrencies:

1.      The Royal Bank of Scotland 
RBS generally supports cryptocurrencies and trading. Customers usually have no trouble buying and selling crypto using a debit or credit card. However, the group restricts access to certain exchanges that are deemed riskier, so you will not have complete freedom.

2.    Revolut
[Revolut](/news/article/revolut-bank-uk-crypto) is one of the more comprehensive banking apps. It offers stock and share trading through its platforms. It is well-known for its positive attitude toward cryptocurrencies, and customers of the bank face no trouble in dealing with exchanges regardless of account level. You also have the advantage of being able to trade cryptocurrency and manage your banking in the same app.

3.      Nationwide
Nationwide claims to have systems to prevent suspicious or unusual member payments. Customers can usually make payments to [crypto exchanges](/news/article/best-crypto-exchange-uk-reddit) using their credit or [debit cards](/news/article/crypto-debit-card-uk). If you have any issues, you should be able to resolve them with the bank and gain access to the trading platforms.

4.      Barclays
[Barclays](https://home.barclays/) has had a tumultuous relationship with cryptocurrency, having formed a partnership with Coinbase only to cancel it in 2019. Despite this reversal, the bank generally accepts payments to and from cryptocurrency exchanges.

5.      Monzo
[Monzo](https://monzo.com/) has declared itself a crypto-friendly bank, stating that customers can use their accounts to buy and sell cryptocurrency on crypto exchanges. However, they state that they will review trading platforms and, if necessary, block access to some if they are deemed too risky.

## Bottom line

Some large financial institutions still regard crypto transactions as highly risky, if not criminal. On the other hand, many progressive banks want to embrace new trends and assist their clients with cryptocurrency transactions.

We believe traditional banks will probably eventually support crypto-related services, particularly as soon as the regulatory clarity improves. Until then, you can use the [crypto-friendly banks](/news/article/crypto-friendly-banks-uk) mentioned in this article to service your customers, make deposits, and lock in profits without fear of an account freeze or ban.


which uk banks allow cryptocurrency purchases

Which UK Banks Allow Cryptocurrency Purchases?

One of the leading names among credit card companies, [Mastercard](https://www.mastercard.com/global/en.html), has announced plans to enter the crypto space. On Monday, the company [revealed](https://www.mastercard.com/news/press/2022/october/mastercard-to-bring-crypto-trading-capabilities-to-banks/) that it would be working to offer cryptocurrency trading services to its customers. The program is named Crypto Source and is aimed to facilitate digital asset trading between banks and investors. 

[Mastercard](/news/article/mastercard-crypto-asia) will be deploying a suite for the banks that will allow them to introduce secure trading services. It will likely incorporate transaction monitoring, analytics, AML compliance, biometric verification, and formidable cybersecurity.

## Paxos join forces with crypto Mastercard 

[Paxos Trust Company](https://paxos.com/) is an eminent name for providing infrastructure for cryptocurrency trades. Also, it is the first firm licensed by the Department of Financial Services of New York. The firm has joined forces with the crypto Mastercard to assist its trade program. 

Paxos will be playing the role of a broker and custodian for the banks. On the other hand, the credit card company will use its infrastructure to connect the banks' interfaces with these services. The companies say they will develop a seamless experience for buying and selling digital currencies.

## Why is the credit card giant entering the crypto space?

The company observed in its [new payments index](https://www.theblock.co/post/163036/awareness-of-crypto-is-high-but-trust-needs-to-be-built-mastercard-research-finds) that around 29% of the participants were cryptocurrency holders. Also, it was discovered that 65% of them would prefer virtual asset services from a trusted financial firm. 

This is one of the reasons the company has introduced its trade program with Paxos.
 
President of Cyber and Intelligence at Mastercard, Ajay Bhalla, said while sharing his thoughts on the program, "We are announcing today a connected approach to services that will help bring users safely and securely into the cryptocurrency ecosystem."

For the security of this program, the company has unique technology to build trust. However, it is not the first such initiative.

Previously, it introduced products like Ekata and CipherTrace, which are quite prominent for their security. 

Partnering with Crypto App, the company also launched its first [NFT debit card](/news/article/crypto-app-mastercard-nft) last month. This lets users personalise their NFT avatars with cards and spend fiat and digital assets.



Crypto Trading Services offered by Mastercard

CBDCs have been a hot topic for the last few years, but are they ready to disrupt the UK financial system? While the answer will vary greatly, many believe that CBDCs have the potential to replace high street bank deposits in the long run.

This article discusses the potential benefits of CBDCs as a means of payment and the security concerns it raises. This article also explores the risks associated with CBDCs, including their potential to replace traditional bank deposits.

## Blockchain technology

The [Bank of England](https://www.bankofengland.co.uk/news/2021/april/bank-of-england-statement-on-central-bank-digital-currency) recently released a discussion paper that explains how the proposed CBDC will work. A digital wallet would be available on mobile devices and be accessible for checking balances and receiving government-issued funds.

CBDC transactions would be free of fees and allow citizens to send and receive payments instantly. CBDC would function much like traditional bank accounts, but with a few important differences. With blockchain technology, transactions are almost instantaneous, so citizens would not need to worry about bank accounts or credit cards to use CBDC.

The UK Central bank has [expressed interest in using blockchain technology](/news/article/cbdc-bank-of-england) to create a digital pound, a cryptocurrency that would replace banknotes in the UK. This project could also replace the declining use of banknotes in the UK, which are rapidly being replaced by mobile and online payments. The Bank of England's Discussion Paper on CBDCs and stablecoins has been released several times, and the latest draft of the document suggests further innovation in payment infrastructure.

The key benefits of using a Blockchain-based CBDC include low-cost, fast, and safe payments. CBDC should support domestic and cross-border transactions, allowing for low-cost payments in the UK and abroad. It should also enable dual offline transactions and instant payments. Ultimately, the project's benefits must be clear and measurable. It is also important to remember that the project must be scaleable and cost-effective.

There are still several issues to be considered when developing a CBDC based on blockchain. The biggest challenge is scalability, which is one of the primary concerns of blockchain. Although there are many solutions, there is no "perfect" solution. A CBDC with good scalability will benefit the entire economy and the UK banking industry. With this, the currency can be widely accessible and inclusive. It can help the financial sector to compete in the global economy.

The central bank's digital currency could disrupt the banking system in the UK. While the level of disruption depends on how well CBDC works, it could also replace traditional intermediaries such as bank deposits and high street bank accounts.

However, there are no guarantees that the project will work as intended. It will still require government approval and further development before making a final decision. And for the time being, there is no clear answer. A formal consultation will start in 2022 and form the "research and exploration" phase that will lead to plans and regulations over the coming years.

## Regulatory issues

The regulatory issue with using CBDCs in the UK is a thorny one. While it's still an unproven technology, central European banks have already expressed an interest in using this digital asset. They have discussed its benefits, challenges, and legal requirements. Most recently, the Bank of England and the U.K.

Treasury announced they would conduct a joint consultation on CBDCs by the decade's end. While there may be some advantages to CBDC use, the report noted significant privacy and financial stability challenges.

The ECB has also been fairly public in its support of CBDC use. The ECB has advocated for using a digital euro in Europe and argued that it would underpin innovation, deliver strategic autonomy, and ensure the security of payment systems across the EU. Fabio Panetta, a member of the ECB's executive board, argued in favor of CBDC use and drew an analogy between cash and the rise of the internet.

The UK Central Bank's proposed CBDC is a unique solution to the challenges of a digital payment system. It would preserve the coexistence of private and sovereign money, increase efficiency and security in payment markets, and enhance confidentiality.

In addition, this digital asset could potentially be a gateway from big tech companies, which are increasingly offering financial services. The rapidly developing artificial intelligence sector has compounded privacy issues. Moreover, regulation is still too slow to keep pace with technological advancement.

Despite its structural similarities to traditional currencies, CBDCs have generally been considered safe cryptos. China's digital Yuan, which will be used in the 2022-Winter Olympics, is currently the most developed.

However, early adopters of CBDCs often adopt strict stances and even ban decentralized crypto currencies. This is especially true in the UK, where the UK FCA has updated its prohibition on the marketing, distribution, and sale of crypto-asset exchange-traded notes to retail investors.

## Security concerns

The UK Central bank has recently announced plans to launch a digital currency, dubbed CBDC, in the UK. The digital currency has a wide variety of implementation and design options, but one of the most pressing concerns is security.

If security is not a top priority, the CBDC program, the central bank's reputation, and the wider opinion of the new currency could suffer. Therefore, the CBDC program must consider various potential threats, including cybersecurity.

While it is true that privacy is essential to cryptocurrency, it is also important to understand the risks of using the system. Many people want privacy, while authorities may want to ensure their money does not fall into the wrong hands.

In general, however, most currency variants will only provide one or the other of these requirements. For instance, a database containing account balances and a ledger containing plaintext transactions are easy to regulate and offer little privacy.

A significant challenge to CBDC is that it could become a gold mine for hackers. Even if there's a limited market for CBDC, sophisticated hackers and nation-states could steal it. Moreover, inside employees, it could be misused or infiltrated, resulting in small-scale identity theft. Another concern involves the use of "gray" charges via opaque fees. There are already many risks in the current system, but CBDC might alleviate some of them.

In addition to the concerns mentioned above, there are other problems related to this digital currency. Several third-party threat actors can undermine CBDC, including scammers, application developers, and hardware manufacturers.

These third-party actors are more powerful than typical end users and can attack it at different layers. These malicious applications or hardware wallets can be backdoored, leading to unauthorized spending of funds.

Whether CBDC will be safe or vulnerable is a question for policymakers. The system is vulnerable to hacking, data theft, and account breaches. As with any new technology, the UK Central bank digital currency should invest in a robust cybersecurity strategy. This should begin with considering how to secure the data and privacy of users. The World Economic Forum has recently published a white paper on CBDC technology considerations.

## Potential to replace bank deposits

The Bank of England and HM Treasury are considering creating a central-bank digital currency (CBDC). Such a currency would replace cash and bank deposits but would be issued by the central bank. While CBDCs may replace cash, they may not satisfy the need for a hard copy. The Bank of England believes CBDCs would have a place alongside cash in everyday life.

One way CBDCs could replace bank deposits is by allowing non-bank financial intermediaries to build programs that sweep the digital currency into higher-yielding liabilities. These liabilities are most likely money market accounts.

A customer would buy money market shares in exchange for CBDC. Then the customer would purchase these money market shares with the CBDC and transfer them to a money market fund. The money market fund would use the CBDC to purchase assets with a higher yield, and the maturity transformation would transfer from the banking system to the shadow banking system.

The Bank of England does not provide accounts directly to the public. If this were to change, the CBDC would be accessible to the public directly. This would entail seismic changes in the banking system. However, the U.K. Treasury envisions a CBDC as a parallel offering to current cash and bank deposits. Whether the UK moves to the development stage depends on the consultation outcome.

A central bank's digital currency could have numerous benefits, but it may pose several risks, including privacy and financial stability. It would act as electronic money that could be used for everyday payments, just like cash. While it isn't a final decision, the central bank and the government are considering the issue.

CBDCs may be a necessary step in the digital currency world, but a decision has not yet been made. However, discussing its implementation is an important step toward a unified monetary system.

Several countries are experimenting with CBDCs. Some are researching, testing, and distributing them to the public. In the Bahamas, the Sand Dollar is one local CBDC. It has been in circulation for more than a year.

Sweden's Riksbank is currently working on a proof-of-concept and exploring potential policy implications. In China, the digital renminbi (eCNY) currency is making progress, with more than 100 million users and billions of Yuan transacting.


CBDCs and the UK Central Bank Digital Currency

The United Kingdoms’ giant lender, Barclays, is set to invest a modest sum in a growing cryptocurrency custody firm, Copper. Sky News has [reported](https://news.sky.com/story/barclays-snaps-up-stake-in-2bn-cryptocurrency-firm-copper-12658295) that Copper, a $2bn crypto firm having Hammond Lord as its advisor, has attracted Barclays crypto investment. Barclays confirmed its stake in the recent round of investment for the company. 

The funding has long been under discussion because of the bear market. However, the company has managed to close it in the Series C round. The company’s valuation has reportedly reached $2 billion. Last year, it was a billion short of its expected $3 billion valuation.

The previous round of investment for the firm took place in March 2021. In the Series B round, it raised around $50 million. But Copper did not disclose its valuation after that.  
Barclays crypto funding of ‘millions of dollars’
According to the sources, Barclays crypto investment for this round will be ‘millions of dollars.’ The funding will be concluded in the coming days. However, neither Copper nor Barclays has confirmed the investment. 

Besides, the company has attracted investments from various other lenders. These include prominent names like MMC Ventures, Dawn Capital, and LocalGlobe. 
On the other hand, the crypto news shows the declining market, where several companies like Celsius have declared bankruptcy. Amidst such a climate, securing Barclays crypto funding is a success for the company. 

Previously, the UK’s giant lender refused its services to firms like Coinbase and Binance. But, the bank is one of the oldest to support cryptocurrencies and digital assets in the country. Hence, its stake means more credibility for the firm. 

On the contrary, Copper is facing issues with the United Kingdom’s Financial Conduct Authority. There is a deadlock over the issue of temporary registration required for companies that provide digital asset services. That’s why it is working with Switzerland’s regulations. Find out more about recent development in the digital world at [Latest Moni](/news). 






Barclays snaps up stake in $2bn cryptocurrency firm Copper

According to reports, Goldman Sachs, one of the world's largest financial organisations, has begun exploring the idea of purchasing assets from the crypto lending company Celsius Network, a company with deleveraging complications contributing to the crypto bubble chart as seen in the market of late. They are reportedly working on a $2 billion acquisition deal. 


## Goldman Sachs's involvement in the Celsius acquisition


Goldman Sachs has begun an industry-wide interest aggregation by identifying interested investors and obtaining significant commitments from them. 

According to a Goldman Sachs survey, insurers are exploring the idea of cryptocurrencies. According to the study, 6% of the three hundred and twenty-eight chief investment officers and chief financial officers had invested in or considered investing in cryptocurrency.

According to sources, [Goldman Sachs](https://watcher.guru/news/goldman-sachs-is-raising-2-billion-to-buy-celsius-network-assets) had targeted investors in Web3 crypto funds that specialise in distressed assets and traditional financial institutions. Majority of Celsius assets would most likely be cryptocurrency managed by participating investors. 

However, the CEO of a cryptocurrency trading platform remarked that unless Goldman Sachs explicitly states that they are purchasing Celsius, we should take the claims with a pinch of salt. It could simply be a PR stunt. 

Before its problems, Celsius was one of the top crypto lenders, with roughly $12 billion in assets under administration and 1.7 million members.


## Celsius CEO on the run after contributing to the crypto bubble chart 


A well-known cryptocurrency investor and analyst recently tweeted that Celsius Network CEO Alex Mashinsky was on the run and attempted to flee the USA this week via Morristown Airport before being detained by police. Currently, it is unknown whether he was banned or arrested. 

Celsius CEO Mashinsky was going to leave for Israel; while claiming that the monies were secure, [Celsius Network halted consumer withdrawals](/news/article/celsius-crypto-freezes-withdrawals). It was a significant contributor to the negative sentiment and herding behavior of mass selling resulting in the  second of the two crypto bubbles we have seen. Mashinsky has remained silent since then, and there is no indication of when the customer monies will be returned.


As of 8:56 a.m. (BST), the Celsius crypto bubble chart price is $0.79, a change of -20.60 per cent in the previous 24 hours. The current price movement in Celsius has resulted in a market capitalisation of USD 547,793,645.88. Celsius has changed by -82.59 per cent so far this year. Bitcoin plummeted 14% on Monday after a prominent cryptocurrency lending firm in the United States, Celsius Network, halted withdrawals. 

The Celsius crypto bubble chart price move spurred a sell-off in cryptocurrencies, with their value falling below $1 trillion for the first time since January 2020, raising concerns that the collapse may spread to other assets or firms.

For more crypto business news, visit us at [Moni Talks](/news/category/crypto-business-news).


How Celsius blew up the crypto bubble chart

A senior UK Government member has admitted a retail central bank digital currency (CBDC) for the country may not arrive until the second half of this decade.

While confirming it will take ‘several years’, John Glen, Economic Secretary to the Treasury, also sounded a note of caution about whether a UK CBDC will even go ahead.

The UK is actively exploring the potential for a retail central bank digital currency to complement to cash and bank deposits.

If it proceeds, it would be a new form of digital money, denominated in Sterling and issued by the [Bank of England](/news/article/bank-of-england-crypto), for everyday payment use.

## Delivering UK CBDC Would Require Lots of Work

In early 2021, the UK Chancellor of the Exchequer created a taskforce to explore a retail central bank digital currency and moves to engage stakeholders including consumer groups, businesses and tech experts. The intention is to ensure UK authorities approach consideration of a CBDC in a coordinated way.

So far, no decision has been taken, and more consultation is due to start next year.

Delivering an update on the project, Mr Glen said: ‘Exploring and delivering a UK CBDC, if there were a decision to proceed, would require carefully sequenced phases of work, which will span several years.

‘HM Treasury and the Bank of England will publish a consultation in 2022 setting out their assessment of the case for a UK CBDC, including the merits of further work to develop an operational and technology model.

‘If there is a decision to proceed following the consultation, a development phase would include the publication, by the Bank of England, of a technical specification to explain the proposed conceptual architecture for a UK CBDC. This development phase could involve in-depth testing of the optimal design for, and feasibility of, a UK CBDC.’

## Liaising with International Partners

This could then lead to a build and testing phase, but Mr Glen warned : ‘Given the scale and national importance of such a project, this phase would likely take several years and could involve the development of large-scale prototypes and live pilots.

‘Were the results of each of these phases to conclude that the case for CBDC were made, and that it were operationally and technologically robust, then the earliest date for launch of a UK CBDC would be in the second half of the decade.’

The UK Government will also liaise with international partners on the global implications of any such move.

Bank of England CBDC Would Take ‘Several Years’

An Australian bank is claiming to be the first in the country to offer customers the ability to buy, sell and hold crypto assets, directly through its app.

Commonwealth Bank (CBA) says it has partnered with [Gemini](https://www.gemini.com/) and Chainalysis to design a crypto exchange and custody service that will be offered to customers through a new feature in the CommBank app.

A pilot will commence in the coming weeks before being rolled out to more customers next year. CBA will give customers access to up to ten selected crypto assets including Bitcoin, Ethereum, Bitcoin Cash and Litecoin.

## Customers Access Crypto as Investments

The bank says many customers want to access crypto assets as an investment class and are already buying, selling and holding crypto assets through a variety of crypto exchanges.

CBA CEO Matt Comyn said: ‘The emergence and growing demand for digital currencies from customers creates both challenges and opportunities for the financial services sector, which has seen a significant number of new players and business models innovating in this area.

‘We believe we can play an important role in crypto to address what’s clearly a growing customer need and provide capability, security and confidence in a crypto trading platform.

‘In looking at ways that we can support our customers, we have made the strategic decision to form an exclusive partnership in Australia with Gemini, a global leader with strong security and a track-record of serving large institutions. CBA will leverage Gemini’s crypto exchange and custody service and integrate it into the CommBank app through APIs.’

## Building Trust

Michael Gronager, CEO and Co-Founder, Chainalysis, added: ‘Financial institutions like CBA play an integral role in growing cryptocurrency adoption safely. We are thrilled to be a part of this important alliance with CBA and our partner Gemini to play a pioneering role in building trust in cryptocurrencies in the Australian market.’

More [Business news](/news/category/crypto-business-news).



Crypto Assets Banking Arrives Down Under

The decentralised nature of cryptocurrencies posed a major issue for big banks, but the evidence is that the old-style financial institutions are slowly entering the crypto-market

It was Halloween, 2008, when someone identifying themselves as _Satoshi Nakamoto_ released the [Bitcoin](https://coinmarketcap.com/currencies/bitcoin/) white paper – an analysis of the viability of digital currencies in the world’s existing financial ecosystems.

The release of the report touched off a powder keg that exploded into a trillion-dollar market. The wild success of Bitcoin has given way to a constellation of new digital currencies with applications in virtually every market across the globe.

However, there is one founding principle of Bitcoin that has always rankled the brain trust of the traditional banking system. Cryptocurrencies would be a decentralised market, and through their application, individuals would be able to transfer money _without_ a middleman or intermediary. This decentralisation posed a serious threat capable of eliminating the central and very powerful role that banks have traditionally played if Bitcoin ever became popular.

## Has it ever?

As the adoption of Bitcoin and other cryptocurrencies accelerated, regulators scrambled to come up with measures to control it, but these regulatory efforts served to _legitimise_ Bitcoin in the eyes of the public. The logic is that if the government wants to regulate it, then _it must_ be legit, and that would do much to encourage the mainstream adoption of cryptocurrencies.

Until recently, the biggest banks have made disparaging comments about Bitcoin, hoping to discredit the digital assets in the minds of regulators, government officials, and pretty much anyone willing to listen.

Most notable of all, the CEO of [JPMorgan](https://www.jpmorgan.com/global). The nation’s largest bank leader has been leading the attempts to torpedo Bitcoin’s momentum by calling it “a terrible store of value” and warning of its potential role in financing criminal activity. Even back in 2018, Bank of America’s wealth managers were told they were being barred from putting any client money into investments considered cryptocurrency related.

## A Change of Heart for Bitcoin

Their attempts seem to have been in vain. Now, the world’s most powerful banks are realising their efforts would be more wisely invested trying to profit from crypto rather than continuing to lead ineffectual campaigns to slow its adoption. Still, this sudden change of heart will come at a price. While the bigger banks were busy slandering anything crypto, a new financial ecosystem evolved without them.

New cryptocurrency businesses and exchanges have begun to offer incentives one would expect to see only from a traditional banking system, like [credit cards](/news/article/crypto-debit-card-uk) and loans. Investors and businesses are widely embracing the world of digital currencies, and mainstream adoption is proceeding at a frenetic pace.

## Changing Regulatory Approach

Now that the pendulum is swinging to pro-Bitcoin, the traditional banks have decided they want “in” on the profits. Major banks are making serious attempts at figuring how cryptocurrency can translate into new offerings and services for their clients. Banks have also changed their approach with regulators, lobbying them to create rules that work in _their_ favour and criticising them _for not moving quickly_ enough on cryptocurrency regulation issues.

Even JPMorgan, formerly the most vocal adversary of Bitcoin, [launched its own digital currency](https://www.jpmorgan.com/solutions/cib/news/digital-coin-payments) in 2019.

Now that there are more than 220 million global users of Bitcoin it is becoming more apparent that digitally formatted assets are here to stay. The general bitcoin bank review is positive; what do you think? If traditional banks now believe in cryptocurrencies deeply enough to throw their support behind their ownership, the best days for cryptocurrency are yet to come.


Big Banks Losing the War with Bitcoin?

The findings of a major study of digital currencies by several central banks have been published.

The Bank of International Settlement (BIS) and seven central banks have conducted work on retail central bank digital currencies (CBDCs) and analysing policy options and practical implementation issues.

## Digital Currencies Report

Three reports have been published exploring how CBDCs could best meet users' future needs through developing interoperable systems that support private innovation while preserving public trust.

A statement from BIS said extensive cooperation and dialogue will be required to develop and run a CBDC, preserving the centrality of central bank money for future systems that anchor public trust and support public welfare

It adds: ‘For central bank digital currencies (CBDC) to work effectively, public and private institutions need to cooperate to ensure integration with existing payments systems; to anticipate customers' future needs; and to support innovation while preserving public trust, privacy and stability in the broader financial system.’

## Initial Research

A group comprising Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Federal Reserve, Sveriges Riksbank, Swiss National Bank and BIS, has built on initial research into CBDC foundational principles from 2020.

Although a retail CBDC is yet to be issued by any of these banks, this ongoing research is seen as a positive step for the wider adoption of cryptocurrency.

The BIS statement continues: ‘Delivering on the future needs of consumers would require systems that encourage innovation, choice and competition among a diverse mix of intermediaries.’

## Detailed Study

The first report looks into how CBDC systems can be designed with private-public collaboration and interoperability to achieve that objective. The report acknowledges that running a CBDC system would be a major undertaking for a central bank, especially ensuring policies were in place to protect privacy and govern access to payment data.

The second report explores how, in a fast-changing tech landscape, a CBDC could serve individuals and organisations best. Learning from the lessons of previous payment innovations, the report recognises that utilising existing networks is often required.

Outlined in the third report are the potential implications of CBDC on banking systems. A major consideration is giving the existing financial system time to adjust and the flexibility to use safeguards to influence CBDC adoption.

## Reactions

Christine Lagarde, ECB president and chair of the group of central bank governors responsible for the reports, said: ‘Central banks have a responsibility to ensure that citizens have access to the safest form of money – central bank money – in the digital age.

‘These reports are evidence that policymakers are enhancing their domestic projects with international cooperation, sharing ideas on the best technological innovations to provide fast, easy and secure means of payment in the 21st century.’

Benoît Cœuré, Head of the BIS Innovation Hub and working group co-chair, added: ‘CBDCs can foster innovation and preserve the best elements of the current system as it evolves. This group is helping central banks to answer difficult and practical questions about how to offer safe and neutral currency with interoperable systems that harness new technology and serve the public.’

Sir Jon Cunliffe, Bank of England Deputy Governor for Financial Stability and working group co-chair concluded: ‘This collaborative input from a group of central banks will help make sure that innovation in an increasingly digital world, the role the private sector plays in any CBDC system to help it meet future payments needs, and how the financial system might evolve are carefully evaluated. These reports make sure these issues are at the centre of the debate on CBDCs.’

Read the reports on the [BIS website](https://www.bis.org/press/p210930.htm).

Central Banks Conduct Group Digital Currency Study

SEBA Bank has been granted a license to offer digital crypto assets to Swiss-domiciled mutual funds – a first for Switzerland according to the FINMA-licensed Swiss Bank.

It was announced on Wednesday that SEBA has been granted a licence to act as a custodian bank for Swiss collective investment schemes pursuant to Art. 72 CISA (KAG).

## A Bridge Between Digital and Traditional

In a statement SEBA, which provides a bridge between digital and traditional assets, said the licence will accelerate its growth by extending its institutional-grade digital asset custody services to Swiss-domiciled mutual funds.

This new licence extends SEBA Bank’s digital asset investment activities by offering digital custody services for Swiss-domiciled mutual funds.

The bank’s statement said it is ‘an important new enabler of liquid investment funds with crypto or other digital assets as an underlying investment class’.

## Excellent Business Momentum

SEBA Bank Guido Buehler added: ‘Two years ago, SEBA Bank received a Swiss banking and securities firm licence and is now enjoying excellent business momentum as institutional adoption of crypto and digital assets accelerate globally.

‘With our new CISA licence, SEBA Bank continues its pioneering role in the institutional digital asset space. Asset Managers can now offer strategies based on crypto or other digital asset underlying’s to a broader audience utilizing Swiss-based mutual fund structures secured by SEBA Bank as the CISA-licensed custodian.’

Swiss Bank Achieves Crypto First

[Bank of England](https://www.bankofengland.co.uk/) have warned of considering tough new rules to prevent British banks from building up exposure to crypto assets. The Deputy Governor for the Bank of England, Sam Woods, said that rules set out by the Basel Committee, that would require banks to hold capital in reserve equal to their bitcoin exposure, are "quite sensible".

## Crypto Warning Issued

The Basel Committee recently issued a warning to the financial industry about cryptocurrencies. The committee, which is made up of representatives from 27 countries, stated that they are currently investigating rules to prevent British banks from having exposure to cryptos.

## Bank of England Prepared

Woods said that the Bank of England was prepared to introduce rules on capital treatment that "front run" worldwide regulation and tighten regulation on new assets. He said that cryptocurrencies are currently unregulated and do not meet the requirements of a "serious financial asset."

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