SEC charges against Kraken's staking program raise concerns of a broader regulatory crackdown on crypto industry

The cryptocurrency market saw a significant drop last week as the Securities and Exchange Commission (SEC) charged Kraken for offering its 'staking as a service' program as an unregistered security.

> This move has prompted concerns among market analysts and experts about the possibility of a multipronged regulatory crackdown on the cryptocurrency industry.

Blockchain Security Firm Peckshield Reveals Exploiter Wallet 0x629's Latest DeFi Activity

The hacker responsible for the $320 million exploit of the Solana-Ether Wormhole bridge last year has been actively engaging with the decentralized finance (DeFi) ecosystem in recent months.

Banco do Brasil Partners with Bitfy to Offer Crypto Payment Option for Taxpayers

Banco do Brasil, one of the largest banks in Brazil, has announced that it is offering a new and convenient way for taxpayers to settle their dues using cryptocurrencies.

> According to a statement released by the bank on February 11th, 2023, it is now possible for Brazilian taxpayers to pay their tax bill with crypto, thanks to a joint initiative between Banco do Brasil and Bitfy, a Brazilian-based crypto firm.

> The new service is available to Brazilians who have cryptocurrency assets under the custody of Bitfy. Bitfy will act as a "collection partner" for Banco do Brasil, allowing users to easily and securely pay their taxes with cryptocurrency. Full report here.

Coinbase CEO Brian Armstrong Advocates For Clearer Crypto Regulations In Washington, D.C.

Building on his efforts to improve the regulatory environment for cryptocurrencies, as well as for his defense of Coinbase's staking services, Coinbase CEO Brian Armstrong on Monday said he was visiting Washington, D.C. advocating for clearer regulations in the crypto industry.

> He took to Twitter to share his thoughts on the matter, stating that he believes crypto companies should be encouraged to grow in the U.S. and not unnecessarily restricted from doing business.

> He also noted that there is rising uncertainty in the sector following enforcement actions taken against Kraken and Paxos earlier this month.

> Armstrong called for clearer rules and regulatory clarity for the crypto industry, and invited anyone interested in discussing the matter to join him for a chat. Continue here.

Bitget Partners With Capitual To Explore Brazil's CBDC Programs And Expand In Latin America

Cryptocurrency exchange Bitget has partnered with fintech company Capitual to explore participation in Brazil’s central bank digital currency (CBDC) programs.

> Capitual is one of the designated CBDC partners of the Central Bank of Brazil.

> The announcement was made on Monday, after the two companies jointly participated in the Lide Brazil Conference Lisbon held in Portugal on February 3-4.

> The partnership aims to collaborate in the areas of CBDC and align a common strategy in the Mercosur region.

> Guilherme Nunes, the CEO of Capitual, said the expansion plan outside Brazil would benefit Bitget by giving it broader name recognition across markets. Full report here.

Galaxy Bahamas Has Obtained Regulatory Clearance To Function As A Digital Asset Enterprise

Galaxy Bahamas, a subsidiary of Galaxy Digital, Mike Novogratz's crypto investment firm, has recently received regulatory approval from the Securities Commission of The Bahamas to operate as a digital asset business under the country's Digital Assets and Registered Exchanges Act of 2020.

> The approval paves the way for the company to offer trading, custody, money services, market making, and staking services in the Bahamas.

> According to a statement made by the firm in a February filing, "In light of the FTX dispute, customers, counterparties and regulators may view operations within the Bahamanian cryptoeconomy as more risky than operations in other jurisdictions". Details here.

Crypto Prices Drop as Investors Worry Over Stablecoin Regulation and Inflation Report

Bitcoin began a new week by sliding 1.4%, trading at around $21,640, as worried investors chewed over regulatory activity in the stablecoin sector and the next inflation report due on Tuesday.

> The largest cryptocurrency by market capitalization has fallen about 9% this month, losing roughly a quarter of its gains from a January surge.

> Ether (ETH) followed a similar pattern, declining 3.1% over the past 24 hours to recently trade at $1,490 – ETH’s lowest level in about a month.

> Despite the decline in Bitcoin and Ether, there were some winners in the cryptocurrency market on Monday.

> The decentralized borrowing protocol Liquity was the biggest winner among over 160 assets in the CMI, with its native LQTY token surging 46% to trade at $1.01 from 69 cents the previous day.

> The price jump followed Liquity’s integration with Aztec network, the privacy-focused zero-knowledge rollup on Ethereum where users can borrow its U.S. dollar-pegged stablecoin LUSD on layer 2 and save on gas fees.