Headlines
▌The Bank of England considers emergency reform of the deposit protection scheme
The Bank of England is considering major changes to its deposit guarantee scheme, including increasing the amount of deposit guarantees for businesses and forcing banks to pre-fund the system to a greater extent to ensure faster access to cash in the event of a bank failure.
The review was triggered by Silicon Valley Bank's swift collapse last month, people familiar with the matter said. Regulators are concerned that the current guarantee limit of 85,000 pounds covers only about two-thirds of deposits, and the relatively low level of pre-funding means there will be a delay of at least a week for customers to regain cash, the people said.
These deficiencies have undermined confidence in the FSCS and reduced its effectiveness in preventing bank runs.
However, raising the collateral threshold and raising pre-funding levels would be costly for banks, which have long lobbied the Treasury against the changes.
Policies
▌US SEC Commissioner: "Review changes the definition of trading platforms" may undermine the US Constitution
The U.S. Securities and Exchange Commission (SEC) is poised to pivot to DeFi regulation as it reopens with proposed regulations that involve reviewing changes to the definition of trading platforms, including DeFi protocols and decentralized exchanges (DEXs).
In response, SEC Commissioner Hester Peirce said the announcement sent a message that the U.S. is not interested in promoting innovation and competition in financial markets, but instead seeks to protect incumbents, and that this vague plan could undermine constitutional protections under the First Amendment.
▌Arizona governor vetoes bill banning local taxes, fees on crypto mining.
Arizona Governor Katie Hobbs vetoed legislation that aims to prevent local governments from taxing crypto mining operations in a letter published on April 12.
Hobbs wrote that the bill “prevents local policymaking concerning an emerging and potentially energy-intensive economic activity.” She added that the bill fails to engage with local stakeholders. As such, her veto could allow for finer regulation of crypto mining.
Hobbs also wrote that the bill has an overly broad definition of blockchain technology
Cryptocurrency
▌Kosovo police confiscated dozens of cryptocurrency mining equipment from Serbs
Kosovar police have confiscated dozens of cryptocurrency mining rigs from residents of a Serb-majority region in the north of the country.
Authorities in Pristina and Belgrade have criticised the move, saying that the move threatens to heighten tensions in the ethnically divided and partially recognized Balkan country.
▌Zipmex’s buyer proposes a 90% discount to creditors.
Zipmex’s buyer proposed the discount because some conditions attached to the original deal had not been met.
V Ventures had initially agreed to buy Zipmex and pay all creditors in full.
Given the new proposal, Zipmex plans to ask for an extension for its creditor protection period in Singapore, in order to find alternative investors. Currently, Zipmex has creditor protection until 23 April.