Bitcoin fell more than 2 percent on Thursday, to $25,107, as investors worried about the possibility of more interest rate hikes from the Federal Reserve.

The sell-off also dragged down other cryptocurrencies, with Ethereum down nearly 5 percent.

The market's anxiety was heightened by comments from Fed Chair Jerome Powell, who said the central bank is "acutely aware" of the risks posed by inflation.

Powell also said that the Fed is prepared to raise interest rates more aggressively if necessary to bring inflation under control.

The prospect of higher interest rates has weighed on cryptocurrencies, which are often seen as riskier assets. Investors are concerned that higher rates will make it more expensive to borrow money, which could lead to a slowdown in economic growth.

The sell-off in cryptocurrencies comes as the broader stock market is also under pressure.

The S&P 500 is down more than 10 percent from its all-time high in January, and the Nasdaq Composite is down more than 15 percent.

The sharp declines in cryptocurrencies and stocks have raised concerns about a possible 'crypto winter.'

A crypto winter is a period of prolonged decline in the price of cryptocurrencies.

The last crypto winter occurred in 2018 when the price of Bitcoin fell from over $20,000 to below $3,000.

It is too early to say whether the recent cryptocurrency sell-off will lead to a crypto winter. However, the market's anxiety about higher interest rates is a major headwind for the cryptocurrency industry.

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Brazilian authorities have investigated Binance, the world’s largest virtual asset exchange, for allegedly providing derivatives. 

The investigation began after the Brazilian Securities and Exchange Commission informed the minister of justice that Binance appears to have committed financial crimes by continuing to provide derivatives of virtual assets. Binance announced in August 2021 that it would stop providing derivatives services, including futures, to customers in Brazil. 

Before this, Brazil's Securities and Exchange Commission ordered a suspension of derivatives trading, saying that futures contracts are securities. Binance had previously offered futures trading with up to 125x leverage to Portuguese-speaking customers. 

Binance is also under investigation from countries worldwide, including the United States, for unlicensed operations.

Source : Brazil investigates Binance(www.eblockmedia.com/news/articleView.html?idxno=963))

The financial authorities in South Korea have taken action amid a crisis at Coinone and concerns over excessive credit loans by banks to cryptocurrency investors. 

They have ordered a check on the current status of cryptocurrency exchange-Internet bank transactions. They are investigating potential violations of internal controls and the Special Act on Anti-Money Laundering (AML) and Customer Identification Duty (KYC) by Coinone's employees.

The prosecution has arrested two Coinone employees for cashing in rebates using borrowed-name accounts, violating the Special Act. 

The employees were also part of the listing team at Coinone, which is now under scrutiny for potential collusion with an external evaluation company or systematic receipt of rebates.

The authorities have ordered commercial and internet banks to provide real-name accounts to exchanges to check the transaction status, with concerns over excessive loans to customers linked to the exchange's real-name accounts. 

According to an official from the banking sector familiar with the matter, "The Governor of the Financial Supervisory Service has directly identified the transaction details between the cryptocurrency exchange and the bank, and some Internet banks are taking issue with excessive loans to customers linked to the exchange's real-name accounts."

Kakao Bank, which provides Coinone with real-name accounts, is inspecting to determine whether the employees have violated internal controls. 

A Kakao Bank official said, "According to the agreement with Coinone, we can request data on internal control from Coinone, and if there is an illegality, we may stop providing accounts in won."

Coinone should check whether internal controls related to AML and KYC are working correctly, as mandated by the Special Transactions Act. A bank that transacts with a virtual asset provider (VASP) must check the counterparty's violation of the provisions of the Special Transactions Act. 

The bank may stop providing accounts in won if there is any illegality.

The crisis at Coinone has highlighted the need for tighter regulation and scrutiny of the cryptocurrency industry. The South Korean government has been working on rules to protect investors and prevent money laundering, but the recent events at Coinone show that there is still much work to be done.

Cryptocurrency exchanges must ensure that their internal controls are effective in preventing money laundering and complying with AML and KYC regulations. Banks providing real-name accounts to exchanges must also ensure they do not facilitate illegal activities or excessive loans to cryptocurrency investors.

The South Korean government and financial authorities will continue monitoring the situation at Coinone and other cryptocurrency exchanges to ensure they comply with regulations and protect investors.

 The industry needs to maintain transparency and accountability to build trust and ensure its long-term sustainability.

Source : Crypto exchanges, Internet banks face audit(www.eblockmedia.com/news/articleView.html?idxno=950))