Crypto Firms in Crisis: What’s Behind the 87% Shutdown?

What we’ll cover today:

😲 Why 87% of crypto firms shut down? (Here’s why) 

🪙 BankersHQ on Bitcoin as a misunderstanding.

💳 Mastercard launches crypto debit card in Europe 

1. Why 87% of crypto firms shut down?

The UK’s Financial Conduct Authority (FCA) is tightening crypto regulations. Over 87% of crypto firms have failed, withdrawn, or been rejected from registration.

Key changes:

• 24-hour cooling-off period before investors can commit

• Stricter marketing rules to ensure clear and fair promotions

• Crypto assets are now labeled as "Restricted Mass Market Investments" to highlight risks

450 illegal promotions were flagged in just three months. If you're investing in crypto, ensure your platforms comply with the new rules.

To understand the whole situation, here’s the link.

2. BankersHQ on Bitcoin as a misunderstanding.

BankersHQ shared concerns about the crypto market, sparking key discussions:

• Crypto Scams Rising: In 2023, $3 billion was lost to crypto scams, highlighting the need for better awareness for both investors and financial professionals.

• Banks Must Act: Banks should take the lead in educating employees and customers about crypto risks to prevent major financial losses.

• Stricter Regulation: Regulatory bodies like the SEC and CFTC need to enforce tighter rules and hold bad actors accountable.

Banks need to step up and educate people to prevent more losses in the crypto space.

Here’s the link to the tweet.

3. Mastercard launches crypto debit card in Europe

Mastercard is shaking things up in Europe with a new crypto debit card:

• Mastercard’s Crypto Move: Partnering with Mercury, Mastercard is launching a euro-based debit card that lets users spend Bitcoin and other cryptocurrencies directly from their wallets.

• No Middlemen: Users can spend crypto in real time without selling it first or using exchanges.

• Low Fees: The card features a €1.6 issuance fee and a 0.95% transaction fee, offering flexibility and ownership control.

More financial institutions should create tools like this to make crypto easier for everyday use and long-term investment.

Here’s the article for in-depth news.