The digital-asset firm Nexo Capital will pay $45 million in penalties to U.S. federal and state regulators over allegations that it broke securities rules by offering a crypto lending product.

Financial services regulators should treat cryptocurrency trading for what it is — another form of wagering, some experts say. But banks seeking to provide custody and many other services tied to digital assets would face even tighter restrictions under that approach.

Genesis Global Capital, the cryptocurrency lending unit of Digital Currency Group, is laying the groundwork for a bankruptcy filing as soon as this week, according to people with knowledge of the situation.

Digital Currency Group, the struggling crypto empire whose Genesis Global Capital lending unit is trying to stave off bankruptcy, said it's suspending quarterly dividends to preserve cash.

Coinbase Global is halting operations in Japan, less than a month after another major digital-asset exchange, Kraken, announced its withdrawal from the country.

The New York bank reported a 17% drop-off in deposits during the fourth quarter as it sought to reduce its concentration in the digital currency realm. It expects its balance sheet to stabilize in the second half of 2023.

The former tech entrepreneur, "Razzlekhan" rapper and accused cryptocurrency thief Heather Morgan has a new job.

Silvergate Capital Corp. reported a $1 billion loss and said it would offboard some noncore digital-asset customers following a quarter that saw a dramatic draw-down in deposits after the collapse of Sam Bankman-Fried's FTX.

Signature Bank of New York is pulling back from crypto deposits and has increased borrowings from the Federal Home Loan Bank of New York.

Crypto pain deepens, credit union merger is official and more in banking news this week.