Emerging Economies Hit Hardest by Crypto Collapses: BIS Report
• The Bank for International Settlements (BIS) reported that investors outside of major economies were hit hardest by the collapse of Terra and FTX. • The crypto market lost more than $450 billion after Terra’s implosion in May 2022, and another $200 billion after FTX’s bankruptcy in November. • The BIS is owned by 63 central banks from around the world. Crypto Investors in Emerging Economies Hit Hardest The Bank for International Settlements (BIS) reported that crypto app users worldwide lost money on their bitcoin holdings after last year’s collapses of the Terra ecosystem and the FTX exchange, but it was investors outside of major economies who took the biggest hit. More than $450 billion vanished from the crypto market following the collapse of Terra in May 2022, and another $200 billion was lost following FTX’s bankruptcy in November. Background on BIS The BIS is owned by 63 central banks,…
Fed Governor: US Regulators Prefer Keeping Crypto Separate from Banks
• U.S. Federal Reserve Board Governor Christopher Waller has reinforced the preference of U.S. regulators to keep crypto apart from banks, noting that this separation has kept the U.S. financial system out of crypto’s drama and expressing optimism that the sector can work out its recent issues. • Waller is supportive of prudent innovation in the financial system and encourages parts of the crypto universe to thrive, but believes banks should be cautious when engaging with cryptocurrencies due to heightened risk of fraud and legal uncertainties. • He does anticipate that the digital assets industry will mature over time and work out its governance, risk management and transparency issues for a better understanding of customer business models and risks involved. U.S Regulator’s Preference for Keeping Crypto Apart from Banks U.S Federal Reserve Board Governor Christopher Waller has emphasized U.S regulator’s preference for keeping cryptocurrency apart from banks in order to…
Crypto Exchange Bittrex Cuts 80 Jobs Amid Market Downturn
• Bittrex, a Seattle-based cryptocurrency exchange, is laying off more than 80 people due to the “new economic environment.” • This comes after multiple failures in the crypto ecosystem and sharp declines in cryptocurrency prices. • Many other exchanges such as Gemini and Coinbase have also announced layoffs recently. Bittrex Laying Off More Than 80 People Bittrex, a Seattle-based cryptocurrency exchange, is reducing its staff by more than 80 people due to the “new economic environment,” according to CEO Richie Lai. He cited market downturns triggered by multiple failures in the crypto ecosystem as the primary reason for the cuts. Market Conditions The company had been working “aggressively” to reduce expenses and increase efficiencies but were not successful, according to an email sent out by CEO Lai. The layoffs affected at least some employees in most departments across Bittrex. This comes after sharp declines in cryptocurrency prices and the collapse…