Blockchain
Fed Action Against Customers Bank Underscores Crypto’s Challenges
Despite the decentralized nature of cryptocurrencies and digital assets, Web3 businesses still need banking partners. On August 8, it was reported that Customers Bank, a Pennsylvania-based bank known for its crypto-friendly stance, faced a 13-page regulatory enforcement action from the Federal Reserve due to its digital asset and dollar token activities. This incident highlights the crucial need for financial institutions to balance innovation and compliance.
The landscape of crypto-friendly banks in the U.S. has narrowed, particularly after the closures of Silvergate Bank and Signature Bank last spring. In their absence, Customers Bank emerged as a key partner for numerous crypto businesses, including major exchanges and stablecoin issuers. With 15% of its deposit base tied to digital assets, Customers Bank remains committed to serving digital asset firms despite the enforcement action. However, it must now provide the Fed with 30 days’ written notice before engaging in new strategic initiatives or partnerships related to crypto.
The Fed’s action emphasized “significant deficiencies” in Customers Bank’s compliance with the Bank Secrecy Act/anti-money laundering (BSA/AML) and Office of Foreign Assets Control (OFAC) requirements. This underscores the broader regulatory compliance challenges facing the crypto sector, as banks play a pivotal role in bridging the gap between decentralized finance and traditional financial systems.
Crypto investor Tyler Winklevoss, founder of Gemini cryptocurrency exchange, expressed concern on X (formerly Twitter), stating that the Fed’s action makes it a gatekeeper between crypto companies and banking access. The regulatory environment poses significant barriers for crypto businesses in securing banking partnerships, as banks are wary of the potential for these companies to violate AML and KYC regulations.
The crypto industry has seen instances of regulatory challenges, such as Binance using U.S. banks to move significant sums and Coinbase being fined by a U.K. regulator for serving high-risk customers. Additionally, U.S. Treasury officials have raised concerns about cryptocurrencies being used by malign actors.
Beyond regulatory issues, integrating crypto firms into traditional banking systems presents operational and technical challenges. Banks often lack the necessary infrastructure or expertise to manage digital assets, and the fast-paced crypto industry can clash with the cautious approach of traditional banks.
Despite these challenges, PYMNTS Intelligence suggests that cryptocurrencies, particularly stablecoins, could offer a compelling use case for cross-border payments. Blockchain technology is also seen as beneficial for regulated industries like finance, healthcare, and supply chain management. For smaller financial institutions and credit unions, embracing innovation might be the best strategy for staying relevant in the evolving financial landscape.
Source: pymnts.com
The post Fed Action Against Customers Bank Underscores Crypto’s Challenges appeared first on HIPTHER Alerts.
Alpine Web3 and Everdome are joining forces to push the boundaries of fan engagement through immersive digital experiences. Building on Alpine’s storied motorsport legacy, this partnership will bring fans closer to the action with metaverse pop-up spaces and interactive events.
As Alpine Web3 shifts its focus beyond motorsport, this collaboration aims to redefine sports marketing by merging the physical and digital worlds, offering fans a dynamic and innovative way to connect with their favorite teams and events.
Alpine is a brand with a long and successful history, founded in 1955 by Jean Rédélé and quickly building success across multiple motorsports disciplines. With titles across multiple motor racing disciplines such as the World Rally Championship, 24 Hours of Le Mans, success in F1® racing and the FIA WEC Endurance World Championship, Alpine has constantly innovated for success.
Now Alpine seeks to expand their innovation beyond motorsport, looking for ways to engage new audiences with experiential sports marketing as the real and digital worlds converge.
This two-way partnership will see Everdome work on a variety of experiential Alpine focussed destinations, kicking off with a series of metaverse pop-up spaces for Alpine Web3, released to coincide with the major sporting events across their race calendar, from Formula One® and beyond.
Everdome will also create interactive events with Alpine Web3 and their partners, allowing global audiences to take one step closer to the action as we explore the future of sports fan engagement together.
Last year, Everdome and Alpine first collaborated with an exclusive metaverse AMA with their F1® driver Pierre Gasly and Binance Fan Token, creating an interactive event where the audience could join with their avatar-likenesses inside a unique environment, bringing them closer to their racing heroes inside a digital world.
“Experiential marketing is on the rise as audiences react positively to immersive, interactive experiences which bring a feeling of deeper involvement with their sporting teams and heroes.’’ said Artur Kaczmarczyk, Chief Growth Officer for Everdome. “This new partnership will explore a future of sports fan engagement, creating a series of activations across the motorsports racing calendar to let global Alpine fans feel closer to the team, drivers and brand.’’
Beginning with metaverse spaces highlighting images and videos from Alpine inside fully interactive, avatar-led digital environments, Everdome will go on to create a dedicated and permanent metaverse footprint for Alpine Racing inside their digital headquarters, showcasing their glorious history, exciting present and promising future.
“This collaboration with Everdome underlines our commitment to constant innovation through leveraging the latest technology”, said Guillaume Vergnas, Head of Merchandising, Licensing, Esports & Web3 at Alpine. ‘’Motorsport has always been about passion, spectacle and interaction, and with Everdome we seek to allow audiences a taste of the spectacle in a novel digital world.’’
Everdome will introduce their large community of web3 followers and metaverse pioneers to Alpine’s exciting web3 ecosystem, paving the way for some exciting cross-project collaborations, activations and more across 2024 and beyond.
The post Everdome and Alpine Web3 Redefine Fan Engagement with Bold Metaverse Vision appeared first on HIPTHER Alerts.
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