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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%.

US-based crypto exchange Coinbase has reportedly severed its ties with Silvergate Bank as its USD banking partner, citing an ongoing investigation. Instead, Coinbase will use Signature Bank to facilitate institutional client cash transactions for its prime customers. The severance will have no impact on payments in pounds or euros. JP Morgan downgraded Silvergate Capital from “neutral” to “underweight” due to insolvency concerns. This came on top of existing stress caused by the delay in filing its annual report, which also caused Silvergate Bank’s stocks to fall another 40% in pre-market trading.

The French National Assembly has reportedly passed a bill relating to stricter licensing rules for new crypto companies to align with proposed EU standards. The bill mandates France-based VASPs to adhere to stricter anti-money laundering regulations, segregate customer funds, provide more detailed risk and conflict of interest disclosures, and comply with new reporting guidelines to regulators. However, the law does not apply to the 60 crypto companies already registered with the Financial Markets Authority (FMA). The bill is awaiting President Emmanuel Macron’s approval and would only apply to crypto companies that register from July 2022 onwards.

Visa and Mastercard have reportedly decided to delay launching new partnerships with crypto companies until there is more clarity in the regulatory framework and the market conditions improve. The spokesperson at Visa stated that the recent high-profile failures in the crypto industry served as an important reminder that there was still a significant amount of work to be done before crypto could be widely adopted as a part of mainstream payments and financial services. However, Visa’s head of product, Cuy Sheffield, disputed the accuracy of the recent report, affirming that Visa remains committed to partnering with crypto companies to improve fiat on/off ramps and develop new products to facilitate stablecoin payments that are secure, compliant, and user-friendly.

Binance’s stablecoin, Binance USD, has experienced a significant outflow of almost $6 billion following a recent US regulatory crackdown on its issuer Paxos Trust Company. The US Securities and Exchange Commission (SEC) has previously alleged that the token was not registered as a security, and there was a possibility of action being taken against the issuer. New York’s chief financial regulator also ordered Paxos to stop creating the token, accusing the company of violating its obligations for risk assessments and due diligence checks on Binance and Binance USD customers.

Ras Al Khaimah, one of the seven Emirates of the UAE, will reportedly launch the world’s first free zone dedicated solely to companies operating in the crypto industry. The RAK Digital Assets Oasis (RAK DAO) allows entrepreneurs to have complete ownership of their businesses and have their own tax and regulatory frameworks, except for the criminal law of the UAE. The free zone offers a platform for VASPs in emerging technologies such as blockchain, metaverse, nonfungible tokens (NFTs), decentralized applications (DApps), and other Web3-related businesses. Applications to operate businesses in the free zone will open in the second quarter of 2023.

Nishad Singh, a former FTX’s engineering director, has reportedly pleaded guilty to six counts of criminal charges and agreed to cooperate with prosecutors to investigate the crypto exchange founder Sam Bankman-Fried. Singh admitted that he knew Alameda Research, which was Bankman-Fried’s hedge fund, was borrowing FTX customer funds without their knowledge. Singh is the third Bankman-Fried close associate to plead guilty and assist the probe. He is also facing civil lawsuits filed by the US Securities and Exchange Commission and the Commodity Futures Trading Commission.

Hong Kong’s Financial Secretary Paul Chan announced during the 2023-24 Budget Speech that he would establish and lead a task force on virtual asset development to enhance the city’s position in the industry. The task force will reportedly be overseen by the Digital Economy Development Committee and will receive recommendations from relevant government bodies, regulators, and market participants on the sustainable and responsible development of the industry.

US Securities Exchange Commission (SEC) has voted 4-1 in favour of a proposal to amend the Custody Rule under the Advisers Act. Under the new proposed amendments, the requirement for advisers and qualified custodians to segregate investors’ assets will be expanded to all assets, including crypto. It also proposed to explicitly include a requirement that foreign financial institutions serving as qualified custodians must provide segregation and bankruptcy remoteness. Advisers and qualified custodians must also enter into written agreements with each other that include certain provisions to ensure the custodians’ protection. These provisions require qualified custodians to undergo annual evaluations from public accountants, provide account statements, and make records available upon request. The SEC Chairman Gary Gensler said crypto firms may not be qualified custodians based on the way they generally operate.

Judge Lewis Kaplan said the court could revoke the bail of the FTX founder Sam Bankman-Fried in the court hearing on 16 February as there was probable cause to believe he may have attempted to tamper with witnesses. It was suggested by the prosecutor a day before the hearing that his device usage should be further restricted and monitored with limited exceptions, though the judge found it naive to believe that it would prevent SBF from using the internet. The FTX’s founder has been suspended to use certain messaging apps starting from 9 February and was prohibited from using a VPN after he was allegedly using it on two occasions on 29 January and 12 February.

The Hong Kong government announced on 16 February that it had successfully issued the world’s first government-issued tokenized green bond worth HK$800 million under the Government Green Bond Programme (GGBP). The yield of the one-year Hong Kong dollar-denominated tokenized green bond is 4.05% and it is cleared and settled through the Central Moneymarkets Unit (CMU) of the Hong Kong Monetary Authority (HKMA). Hong Kong’s Financial Secretary Paul Chan said the successful offering of the bond marked an important milestone as it demonstrated Hong Kong’s strengths in combining the bond market, green and sustainable finance as well as fintech.