ChainCatcher news, according to Bloomberg, research shows that the usage of Tether (USDT) is shifting towards the Europe, Middle East, and Africa (EMEA) time zone, particularly in countries lacking access to the global banking system, such as Russia and Iran.Chainalysis data indicates that from January to October this year, newly activated USDT wallets are primarily concentrated between 9 AM and 2 PM Coordinated Universal Time (UTC), aligning with daytime hours in Moscow, Tehran, and Istanbul. As the U.S. intensifies its investigation into Tether, particularly regarding potential involvement in anti-money laundering and sanctions issues, the use of USDT is drawing regulatory attention.

ChainCatcher news, according to Cointelegraph, Tether CEO Paolo Ardoino stated that the recently approved Markets in Crypto-Assets Regulation (MiCA) by the EU poses not only a threat to stablecoins but also a systemic risk to the entire banking system.In an interview, Ardoino pointed out that MiCA requires at least 60% of stablecoin reserves to be held in EU bank accounts, a regulation that could increase systemic risk. He emphasized that banks operate under a fractional reserve system, making them vulnerable to runs, and mentioned the 2023 Silicon Valley Bank collapse as a warning, believing that this regulation could adversely affect large-scale stablecoin issuers.

ChainCatcher News, the Federal Deposit Insurance Corporation (FDIC) released its 2023 Annual Bank Risk Assessment Report on the 14th, and for the first time this year, included a separate section on the risks of crypto assets.The report states that the FDIC has recognized through its normal regulatory processes the growing public interest in activities related to crypto assets, but that these activities may pose new and complex risks to the U.S. banking system that are difficult to fully assess. Some key risks include the uncertainty surrounding the legal status of cryptocurrencies, the potential for fraud, and the contagion and concentration risks that may arise due to the interconnectedness of crypto businesses. Additionally, the sensitivity of stablecoins to runs may expose banks holding stablecoins to the risk of deposit outflows.

ChainCatcher news, Binance founder Zhao Changpeng stated in an AMA that the failures of banks are not closely related to the development of cryptocurrency. Cryptocurrency is just one option for people to invest; different people prefer different types of assets, and people do not necessarily turn to crypto after a bank failure. The better the banking system, the more beneficial it is for crypto. We should focus on making crypto more convenient to use.Zhao Changpeng mentioned that when facing regulations in various regions, I believe the biggest challenge is the support from banks, especially if banks are willing to cooperate and communicate with crypto businesses. Only then can we truly facilitate the integration of liquidity between the traditional financial system and the crypto financial system, which benefits both sides. (Source link)

ChainCatcher news, Zhao Changpeng tweeted: Every ten years or so, a number of banks go bankrupt. We bail them out, and then we fall back into a cycle of bankruptcy, with each collapse costing more. Meanwhile, it is very difficult for new banks to be approved to compete in the market. New banks are also required to operate in exactly the same way as the bankrupt banks. This does not align with the definition of a free market.Some users suggested that Zhao Changpeng buy an existing bank, to which Zhao Changpeng replied that it would mean having to deal with all the legacy issues. (source link)

ChainCatcher news, U.S. regional bank stocks continue to decline in pre-market, First Republic Bank (FRC) down over 22%, Pacific Western Bank (PACW) down about over 10%. (Jin10 Data)

ChainCatcher news, Ark Invest CEO Cathie Wood posted on social media: "While the U.S. banking system is paralyzed due to bank runs threatening regional banks, Bitcoin, Ethereum, and other crypto networks continue to operate unaffected. The instability of the banking system threatens stablecoins, which are the gateway to DeFi, contrasting sharply with the statements from regulators.Regulators should not block decentralized, transparent, auditable, well-functioning financial platforms with no central points of failure, but should focus on the emerging centralized and opaque failure points within the traditional banking system.They should have fully understood this obvious crisis: the mismatch of asset and liability durations, short-term interest rates skyrocketing 19 times in less than a year, and a year-on-year decline in deposits in the banking system for the first time since the 1920s." (Source link)

ChainCatcher news, according to the Hong Kong Radio website, the Hong Kong Monetary Authority will hold two major high-level meetings in late March, inviting representatives from central banks and regulatory agencies. These include the Basel Committee on Banking Supervision (BCBS) meeting in Hong Kong from March 22 to 23, and a seminar co-hosted with the Bank for International Settlements (BIS) in Hong Kong on March 24.The President of the Monetary Authority, Eddie Yue, introduced that the seminar "Banking Regulation in the Era of Innovation" co-hosted with the BIS is the first international conference in the financial regulatory sector since Hong Kong's return to normalcy. It will invite over 100 leaders from central banks, regulatory agencies, and financial institutions to discuss forward-looking topics related to the banking industry, including how regulators and banks respond to the rapidly changing financial environment, the future development of cryptocurrencies, and more. (Source link)

ChainCatcher news, according to the official website of the White House, U.S. President Biden will deliver a speech on Monday at 8 AM Eastern Time (Monday at 8 PM Beijing Time) regarding the banking sector, discussing how to maintain a resilient banking system to protect the historic economic recovery.Additionally, the announcement stated: "I am firmly committed to holding those responsible for this turmoil accountable and will continue to work to strengthen oversight and regulation of large banks so that we are not in this position again." (source link)