The crypto sector is going through a period of severe turbulence, and while some exchanges are falling, Silvergate is in great shape. To prove it, the general manager, Alan Lane, once again shows the solidity of his company. Indeed, the latter presents its commitment to risk management and compliance.
Silvergate Maintains Position Despite Market Uncertainty
The crypto ecosystem is in full swing, but unlike last year, uncertainty is taking over. Indeed, the cryptocurrency market is going through a dark period as the prices of most digital assets are falling. Moreover, the fall of leading players in the sector such as Terra Luna and FTX does not help.
But while doubt remains among investors, Silvergate is proud to announce that all is well on its side. According to statements of Alan Lane, the bank pursues its primary mission, which is to serve its customers effectively. As a result, Silvergate Exchange Network continues to operate uninterrupted and customers can make USD deposits whenever they wish.
Taking the opportunity, he also mentioned the true role of the bank as well as its commitment to risk management. Thus, he reveals that Silvergate works closely with other banks, including the USA PATRIOT Act and the Bank Secrecy Act. This partnership aims to strengthen security and provide a reliable framework for investors.
In accordance with these laws, the bank must obtain precise information for each account. In this case, the source of the funds, the owner of the account as well as the intended use of these. These measures make it possible to detect suspicious activity and, if necessary, to assist law enforcement.
However, risk management cannot be effective without cash. According to Alan Lane, customer deposits are safe despite the difficulties in the sector. However, if balance sheet liquidity is insufficient, Silvergate may optionally pledge its investment portfolios. Apparently, all measures are in place to avoid falling into the same pitfalls as FTX.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
