TL;DR: Welcome to In Case You Missed It (ICYMI), a daily crypto news update. Facebook Coin Libra to be discussed by US lawmakers in Switzerland. Silvergate Bank considers issuing loans to crypto startups. Santander bank to use Ripple-based app for US remittances. Wells Fargo overdraft scandal spreads to closed accounts. Bakkt could issue futures for cryptocurrencies other than bitcoin, and FinCEN Director talks about cryptocurrency compliance in casinos.
Wells Fargo Overdraft Scandal Spreads to Charging Closed Accounts Fees
Wells Fargo has been accused of charging more than $1K dollars in overdraft fees to 13 accounts which had been closed a month prior. The bank closed the account of a roofing company owner, for example, in June for reasons they qualified as “confidential.” Despite this, the bank kept processing payments in his and other accounts, charging him more than $1.5K in overdraft fees.
Facebook Coin Libra Issues to be Discussed by American Lawmakers in Switzerland
A group of American lawmakers will visit Switzerland this month to focus on the regulatory aspects of the Libra project, Facebook Coin. The group of six regulators from congress will assist in meetings with the Swiss Federal Data Protection and Information Commissioner Adrian Lobsiger. They’ll discuss requirements on this new project to protect the privacy and data of the potential users. Libra elected Switzerland as their country of registry.
Silvergate Bank Will Offer Loans to Crypto Startups
Silvergate Bank, a cryptocurrency-friendly banking institution, is currently evaluating the possibility of offering loans to crypto startups using its holding company, Silvergate Capital Corporation. The bank would potentially accept cryptocurrencies or US dollars as collateral using its actual crypto payments system, called SEN, to hold the money and manage it according to the risk level associated with the startup.
Santander Using Ripple Tech to Power Latin America Remittance App to US
Santander, a well established Spanish bank, is developing a Ripple powered app that will let its customers in Latin America send remittances and payments to the US. The app, called OneFX, would leverage Ripple’s xCurrent tech without using XRP, the signature Ripple cryptocurrency. The remittances would be received instantaneously and freely because the backbone of the system would not include SWIFT, the world standard for bank transfers. Santander did not reveal which countries are on the list to be supported by the app.
Bakkt is Considering Issuing Futures for Other Cryptocurrencies
Bakkt, the first major, regulated US institution that will issue physically-settled bitcoin futures, is getting a lot of requests on social media, asking if they will ever add other cryptocurrencies to their portfolio. Bakkt answered, “Bitcoin today accounts for over half of total crypto market capitalization and has been deemed to be a commodity.” Despite this, they also acknowledged they will “consider additional contracts as the landscape evolves and as we receive additional customer feedback.”
FinCEN Director Warns About Cryptocurrency Usage in Casinos
FinCEN Director Kenneth A. Blanco referred to the need for casinos to be cautious when preparing to use and accept cryptocurrencies. At the 12th Annual Las Vegas Anti-Money Laundering Conference, Blanco declared the agency apparently has “a gap in reporting in this area by casinos. While FinCEN has received some filings… CVC-related SAR filings by casinos have not been as robust as expected.” Blanco pointed reporting crypto usage and acceptance was a “requirement under the AML program rule for casinos and card clubs,” and not just a best practice scenario.
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