News relating to the crypto space, blockchain technology, and finance is becoming increasingly important in reporting. What’s next for central bank digital currencies (CBDCs) around the world? How are banks and other companies operating in the crypto space?
It is becoming increasingly difficult to maintain an overview. But don’t worry! We at the “Bitcoin, Fiat & Rock’n’Roll” podcast will take care of this for you and summarise the most important news relating to traditional and crypto-native finance and blockchain technology here every month.
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Crypto
SEC approves eleven Bitcoin ETFs:
Following an initially false tweet, the US Securities and Exchange Commission (SEC) approved eleven applications for a Bitcoin ETF on 10 January 2023.
However, the hoped-for significant price increase failed to materialize as the approval was already priced in and other factors such as selling pressure at the Grayscale Bitcoin Trust had a dampening effect.
New Ethereum token standard to facilitate real-world asset tokenization:
The Ethereum community has officially adopted the ERC-3643 standard for the tokenized representation of real-world assets. ERC-3643 builds on ERC-20 and adds two authorization levels to improve security and compliance.
Victims of the Ledger Wallet hack to be compensated:
After attackers were able to steal up to USD 600,000 from users due to a security vulnerability at Ledger, the wallet provider has now announced that it will compensate the victims. In order to avoid similar problems in the future, “Clear Signing” is to be used in the future, which allows users to view transactions before they are authorized.
TradFi
BIS, Swiss National Bank, and World Bank launch joint tokenization project:
The BIS, the Swiss National Bank, and the World Bank are launching the Promissa project to test the tokenization of financial instruments.
Distributed ledger technology will be used to simplify the management of promissory notes and create a centralized data source for all participants. The aim is to complete a proof of concept by early 2025 and increase the volume of tokenized promissory notes in the long term.
Taurus tokenizes SME loans:
Deutsche Bank-backed Swiss company Taurus helped SME FinTech Teylor to tokenize a portfolio of SME loans. The security can be traded on Taurus’ regulated marketplace TDX.
The aim is to provide access to private SME loans for a wider range of investors such as high-net-worth individuals and to improve the liquidity of this asset class.
Revolut discontinues crypto services in the UK:
Revolut plans to suspend some of its crypto services for business customers in the UK to align with new rules from the Financial Conduct Authority (FCA).
Revolut will no longer allow UK customers to buy cryptocurrencies via Revolut Business from 3 January 2024 but will continue to allow holding and selling. Many crypto firms have had to adapt their services since the FCA introduced new rules on advertising crypto products in October.
Visa launches new Web3 loyalty platform:
Visa has unveiled a Web3 loyalty platform to allow firms to reward customers not only for purchases but also for engagement and interactions.
In collaboration with SmartMedia Technologies, the platform can combine Web2 with Web3 to create personalized experiences and offers for customers. According to Visa, customers today have higher expectations for loyalty programs that go beyond traditional points.
CeFi
Anycoin Direct receives BaFin license:
Anycoin Direct, a Dutch crypto exchange with offerings in Germany, has received a BaFin license. This trading and custody license enables Anycoin Direct to offer secure custody and trading services for cryptocurrencies, fully compliant with strict transparency, consumer protection, and security regulations.
This license strengthens user confidence and enables Anycoin Direct to offer its cryptocurrency services in a legal and regulated manner.
15 million dollars for Finoa:
Finoa, a technology platform for digital assets, has closed a USD 15 million funding round. This capital will be used to support the company’s further growth and to offer new features and services to institutional investors.
11.5 million euros for Timeless – and a new CEO:
Timeless, the Berlin-based fintech, has closed a financing round of 11.5 million euros and appointed a new CEO at the same time.
Timeless plans to use the additional capital to consolidate its position as the market leader in the field of collectible investments and to expand within Europe. According to Timeless, it has tokenized around 450 properties with a total value of more than EUR 20 million to date.
Onecoin trial ends with prison sentences:
A trial against accomplices in the Onecoin crypto fraud ended with prison sentences. The court in Münster found three defendants guilty and sentenced them to long prison terms. Although one of the main perpetrators, Ruja Ignatova, is still on the run, the injured investors can now hope for compensation.
Bitpanda becomes an advertising partner of FC Bayern Munich:
Crypto exchange Bitpanda has entered into a partnership with FC Bayern Munich, in which Bitpanda will act as the club’s official advertising partner. This collaboration between cryptocurrencies and sports shows an increasing acceptance and integration of the crypto industry into the mainstream.
Binance has to pay almost USD 3 billion to the CFTC:
Binance, one of the leading CeFi crypto exchanges, will pay nearly USD 3bn to the Commodity Futures Trading Commission (CFTC). This payment is part of an out-of-court settlement after the CFTC charged Binance with illegal trading activities. By paying the fine, Binance hopes to avoid legal consequences and regain investor confidence.
FTX wants billions back:
CeFi crypto exchange FTX claims to be owed billions by various parties and has filed several lawsuits to enforce its claims.
These lawsuits are part of FTX’s efforts to recover money to pay creditors and move the company forward. FTX has already successfully recovered several financial assets and hopes that legal action will help realise further claims.
Celsius transfers over USD 125 million worth of Ether:
Troubled crypto lender Celsius has moved more than USD 125 million worth of Ether to crypto exchanges Coinbase and FalconX to begin repaying its creditors. However, Celsius still holds over 550,000 ETH worth USD 1.36bn, which will be used to repay debts and operating costs.
The insolvent crypto exchange FTX and Alameda Research have also transferred USD 28m in crypto assets to exchanges to raise funds to compensate their creditors.
Sam Bankman-Fried will not be tried again:
US prosecutors are not planning a second trial in the fraud trial against the founder of insolvent crypto exchange FTX, Sam Bankman-Fried.
The “strong public interest” in a quick resolution of their case against the 31-year-old former billionaire outweighs the benefits of a second trial, the prosecutors wrote in a letter filed with the federal court in Manhattan.
Stablecoins
Stablecoin issuer Circle receives preliminary authorization in France:
Circle, the issuer of the USDC and EURC stablecoins, has received preliminary authorization as a Digital Asset Service Provider (DASP) from the French regulator Autorité des Marchés Financiers (AMF). The final authorization is subject to the receipt of an e-money license.
Circle announced that Coralie Billmann will lead the company in France. She was EMEA Treasurer at PayPal in Luxembourg for more than nine years until mid-2022.
Stablecoin company Circle files for US IPO:
In an “initial public offering” (IPO), Circle would become a publicly traded company and offer shares for sale and purchase on global markets. Circle did not disclose the number of shares to be sold or the proposed price range for the IPO filing.
The company had previously stated that it was valued at USD 9bn in 2021 when it planned to go public via a special-purpose acquisition company (SPAC). The IPO will only take place after the completion of the review process by the Securities and Exchange Commission (SEC) and subject to suitable market conditions.
Tether (USDT) co-operates with secret services, is used for money laundering and continues to grow:
The market capitalization of Tether USD (USDT) continues to grow rapidly – by 4 percent in the first month of the year and a whopping 44 percent over the last year to over USD 95 billion. In a letter to the US Senate, Tether reveals that it is cooperating with the US Secret Service and the FBI and freezing USDT tokens in OFAC-listed wallets.
At least 326 wallets controlling a total of USD 435 million USDT have been sanctioned in the Tether Smart Contract.
At the same time, a UN report claims that the stablecoin is being used in Southeast Asia for fraud, scams, and money laundering – particularly frequently in so-called “pig butcher” fraud schemes, in which operators are seduced via dating platforms and then defrauded of large sums of USDT during the romantic relationship.
The fact that the CEO of the well-known investment bank Cantor Fitzgerald spoke out in favor of USDT and stated that the Tether tokens are 100% covered and that the bank is the custodian for many billions of USD in government bonds held by Tether can be seen as a positive signal.
Regulation
US judge questions SEC claim in Coinbase trial:
In a five-hour hearing at the District Court of New York, District Court Judge Katherine Polk Failla expressed doubts about the authority of the Securities and Exchange Commission (SEC) to regulate the cryptocurrency exchange Coinbase. This raises concerns about the SEC’s jurisdiction.
Judge Failla is currently considering a motion by Coinbase to dismiss the SEC’s civil lawsuit and is expected to make a decision in the coming months. The case has significant implications for the SEC’s oversight mandate.
More US Senators take aim at money laundering with cryptocurrencies:
More US Senators are backing Senator Elizabeth Warren on a bill that would crack down on money laundering-related activities involving cryptocurrencies.
The bill provides for stricter customer identification (KYC) and anti-money laundering (AML) regulations for cryptocurrency exchanges and digital asset services. This legislative push reflects growing concerns about illegal activity in the crypto industry.
UK plans to introduce a crypto sandbox:
The UK is planning to introduce a regulatory sandbox specifically for cryptocurrencies. This sandbox will serve as a testing environment for crypto start-ups and companies to drive innovation within a controlled regulatory environment.
The initiative aims to promote technological advances while ensuring consumer protection and compliance with regulatory standards.
WEF 2024 focuses on AI and crypto regulation:
The World Economic Forum (WEF) in Davos in 2024 focused on the need for clearer crypto regulation alongside artificial intelligence (AI).
Executives and experts from various sectors emphasized the importance of creating a regulatory framework that balances innovation and investor protection in the crypto sector.
FINMA publishes guidelines on staking services
The Swiss Financial Market Supervisory Authority (FINMA) has published guidelines on staking services. The guidelines are intended to create transparency with regard to the treatment of staking services under financial market law.
They address legal uncertainties in connection with the staking of crypto assets and emphasize the need for appropriate risk mitigation measures for supervised institutions.
