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Bitcoin stabilized near its lowest point since mid-February 2023 on 9 March following the announcement by crypto-focused bank Silvergate Capital Corp that it plans to voluntarily liquidate. The California-based bank has been struggling after investors withdrew around $8 billion of deposits after the collapse of the crypto exchange FTX last year. While Silvergate is seen as an important bridge between the crypto industry and the traditional financial world, its closure is expected to have a limited impact on the market as it was widely anticipated.

US Senators Kirsten Gillibrand and Cynthia Lummis plan to unveil a new draft of the bipartisan cryptocurrency bill to the new Congress after it was deferred in 2022. Speaking at a Senate Agriculture Committee hearing on oversight of the Commodity Futures Trading Commission(CFTC), Senator Gillibrand stated that the next draft of the bill will be available in mid-April. If passed into law, the legislation is intended to provide regulatory clarity for many crypto projects, including determining which assets would fall under the purview of the SEC and CFTC.

French market regulator AMF announced that Axa Investment Managers has become a registered cryptocurrency service provider in France. This follows a trend of financial companies such as Binance, Bitstamp, and Societe Generale receiving regulatory approvals in the country. Cryptocompanies are now required to obtain a licence and have customer safeguards in place to sell digital tokens in the EU. Companies operating in an EU state have until January 2024 to acquire a licence without service disruption.

Crypto Bank Silvergate Capital Corp announced plans on 9 March to cease operations and voluntarily liquidate, citing recent industry and regulatory developments. The decision comes after the bank suffered substantial losses following the collapse of the cryptocurrency exchange FTX. Silvergate warned last week that it was evaluating its ability to continue operating, disclosing that it had sold additional debt securities at a loss and that further losses could leave the bank “less than well capitalized.” The bank added that its decision to wind down operations included full repayment of deposits.

Crypto exchange Bybit will reportedly launch its new debit card, which will permit users to conduct fiat-based transactions by using their cryptocurrency holdings. Operating on the Mastercard network, the Bybit card enables the debiting of cryptocurrency balances to facilitate payments for goods and services, as well as cash withdrawals. Initially available as a free virtual card for online purchases, physical debit cards are expected to be launched in April 2023. The card will support Bitcoin, Ether, Tether, USD Coin and XRP, and will automatically convert balances into euros or pounds based on the user’s country of residence.

Argo Blockchain, a publicly-listed Bitcoin mining company, reported a 7% increase in its daily Bitcoin production in February despite the surge in network difficulty, which has reportedly reached an all-time high of 43 trillion on 25 February. According to the firm’s operational update on 7 March, it mined a total of 162 Bitcoins, or BTC equivalents last month. Cipher Mining and Marathon Digital are among other mining companies that have increased their Bitcoin production despite the rise in network difficulty.

The US Securities and Exchange Commission (SEC) has taken emergency action against BKCoin Management on 7 March, accusing the Miami-based investment adviser of raising $100 million from 55 investors to invest in cryptocurrency but instead using the funds to pay for luxury items and make Ponzi-like payments. The SEC has frozen assets and obtained other emergency relief against BKCoin. In addition, it is seeking permanent injunctions, civil penalties, and other remedies against the firm and one of its principals, Kevin Kang.

Silvergate Capital Corp announced on 3 March that it has made a risk-based decision to discontinue its crypto payments network, the Silvergate Exchange Network (SEN), which provides round-the-clock transfers between investors and crypto exchanges. While other deposit-related services continue to operate, the announcement has caused a further decline in its share price, which had already hit a record low on 2 March. Notably, many cryptocurrency companies, including Coinbase Global and Galaxy Digital, have severed their partnerships with Silvergate following the bank’s warning of its ability to operate as a going concern.

The Australian government’s internal documents indicate that the process of legislating on crypto may extend beyond 2024. The documents suggest the government will issue consultation papers in Q2 2023 and hold stakeholder roundtables on crypto licensing and custody in Q3. Final submissions to the cabinet are unlikely to occur until late 2023, with potential delays pushing any decisions on crypto legislation into 2024 and beyond. The country’s Treasury Department anticipates that crypto businesses and consumer groups may become frustrated with the prolonged timeline for implementing a licensing regime. However, it is suggested that weak demand for cryptocurrencies following FTX’s collapse, as well as the current market conditions resulting in lower consumer demand, could allow for more time to finalize regulations.

Ripple CEO Brad Garlinghouse has expressed his concerns about the US Securities and Exchange Commission’s (SEC) regulation through an “enforcement” approach towards the crypto industry. According to Garlinghouse, the SEC’s enforcement approach is not a healthy way to regulate the industry and may cause the US to become less attractive to cryptocurrency companies. He added that the industry has already started moving out of the US, where the regulatory process is behind other countries such as Japan, Australia, Singapore, Switzerland, and the UK.

Nationwide Building Society and HSBC Holdings Plc have reportedly prohibited retail customers from purchasing cryptocurrencies with credit cards. This decision came as a response to warnings issued by the UK Financial Conduct Authority (FCA) and recent scandals in the crypto industry. Nationwide has also set a daily limit of £5,000 ($5,965) on debit-card purchases of crypto assets. Other banks in the UK, such as Santander, Natwest Group, and Lloyds Banking Group, have similarly imposed restrictions on cryptocurrency services, most notably on the crypto exchange Binance.

In response to enquiries from Cointelegraph, the spokesperson of Binance denied that the crypto exchange had any plans to lay off staff and said it sought to fill 500 new roles by the end of June. The statement came in contrast to a spate of layoffs in the crypto industry in January. Since the beginning of 2023, Binance has already hired over 600 people, and CEO Changpeng Zhao has revealed plans for a hiring spree in 2023 that would increase the exchange’s headcount by 15% to 30%.