Regulatory News
Revolut: Revolut has teamed up with TRUST (The Travel Rule Universal Solution Technology) to prepare for impending crypto regulation changes called the Travel Rule. This rule will be effective in the UK from September 2023 and in the EU from early 2025. TRUST will help Revolut adhere to the Travel Rule by facilitating secure data exchange among its members, which include major crypto exchanges, brokerages, custodians, and digital wallet providers.
Spain - Ministry of Finance and Civil Service: Spain has inaugurated an AI regulatory agency as part of its bid to establish itself as a frontrunner in the industry. This moves places Spain at the forefront of European Union countries, pioneering the establishment of a dedicated body for overseeing Artificial Intelligence. The newly formed Spanish Agency for the Supervision of Artificial Intelligence (AESIA) is set to ensure that the nation's AI advancements are characterized by inclusivity, sustainability, and a focus on citizens' well-being.
UK - GOV.UK: The UK is deliberating a complete prohibition on cold calls promoting cryptocurrency investments, and the Treasury has issued a consultation paper to assess the potential consequences, with the consultation period ending on September 27, 2023. In response to an annual estimated cost of £7 billion ($8.7 billion) due to fraud, the UK government is set to expand its intelligence-led policing approach by adding 400 jobs. This development follows previous instances where cold calls resulted in investor losses, including cryptocurrency-related cases, despite prior efforts to restrict such calls.
Brazil - CoinTelegraph: The Brazilian Crypto Economics Association (ABCripto) has partnered with tokenization firms to help them acquire licenses for crowdfunding activities under the Brazilian Securities and Exchange Commission (CVM). This collaboration involves aiding in documentation analysis and application formalization to increase approval chances. The partnership was formed as part of CVM's efforts to regulate crowdfunding, and it aims to ensure compliance with regulations and broaden investor access to different investment classes.
Dubai - FinanceMagnates: Dubai's Virtual Asset Regulatory Authority (VARA) has expanded regulations to allow crypto staking via custody services, bolstering the Emirate's position as a global crypto hub. Custodians in Dubai can now offer staking without a separate license for Virtual Asset Management and Investment Services. This move supports Dubai's economic diversification strategy and regulatory attractiveness for cryptocurrency companies, potentially making the UAE a top destination for crypto businesses seeking transparent regulations.
Dubai - CoinTelegraph: Komainu, a collaboration between Nomura, CoinShares, and Ledger, has achieved a significant milestone by obtaining a full operating license from Dubai's Virtual Asset Regulatory Authority (VARA). This comes after completing a three-step process, including provisional approval and an MVP license, highlighting Dubai's crypto-friendly stance and fostering innovation. Komainu's regulatory status is seen as pivotal for business growth, enabling the firm to offer comprehensive custody services and further expand its operations.
Dubai - CoinShastra: Dubai's Virtual Asset Regulatory Authority (VARA) has issued a $2.7 million fine on cryptocurrency project OPNX, created by the now-defunct Three Arrows Capital (3AC). Despite settling fines with its founders and CEO, OPNX has not paid its imposed levy, leading to VARA's concern and potential consideration of further measures against the project. The fines were related to alleged violations of regulations in marketing and advertising, with OPNX previously facing skepticism due to its association with the collapsed 3AC. The situation is being closely monitored for its potential impact on cryptocurrency prices.
CoinTelegraph: Follow up - PayPal's PYUSD stablecoin faces challenges and opportunities in the digital economy. Despite the lack of regulatory clarity for digital assets in the US, PayPal aims to provide a stable digital instrument for mainstream users, connecting the crypto world with fiat seamlessly. While the potential benefits of PYUSD include easier onboarding to the Web3 space and leveraging PayPal's established user base, experts highlight potential drawbacks such as regulatory uncertainties, limited functionality compared to established stablecoins, and concerns over its Ethereum-based infrastructure. As PayPal forges ahead with its blockchain and digital asset ambitions, industry observers watch closely to assess the true impact of PYUSD on the evolving financial landscape.
Industry News
Brazil - Portal do Bitcoin: The Brazilian Crypto Economy Association (ABCripto) has welcomed Visa as its latest associate member, aiming to enhance the development of the country's crypto sector. With over 200 global territories in its network, Visa intends to leverage its expertise in digital payments and innovation to bolster the potential of crypto assets, fostering investment opportunities and expertise exchange. The move marks a significant step in Brazil's crypto landscape, with Visa's commitment to advancing the digital currency ecosystem and prioritizing solutions that make a meaningful impact on consumers' daily financial experiences.
Brazil - CoinTelegraph: Brazilian firm Zaros Labs secured R$2.75 million (about $500,000) in investments for its decentralized exchange (DEX), perp DEX Zaros, valuing the company at R$50 million (about $9 million). Zaros Labs uses liquid staking tokens (LSTs) and Chainlink's Cross-Chain Interoperability Protocol (CCIP) to boost liquidity efficiency. The perp DEX Zaros taps into the LST trend and enables users to provide liquidity using LSTs and stablecoins like USD Coin (USDC).
BeInCrypto: This week, the market is preparing for significant token unlocks, with Avalanche (AVAX) leading the pack by releasing 9.54 million tokens, potentially introducing a $100 million selling pressure. Past unlocks, such as in May, have caused price drops, as seen in AVAX's 30% decline, but recovery followed from the $10.44 support range. Notable unlocks from Space ID (ID), Yield Guild Games (YGG), and Lido DAO (LDO) are also anticipated, contributing to the overall unlock volume of over $120 million.
CoinTelegraph: Friend.tech, a decentralized social media app built on Coinbase's layer-2 network Base, has surged in popularity with over 64,000 users and 24,000 Ether in trading volume since its August 11 launch. The platform enables users to buy shares of friends and influencers, granting access to private chats. While praised for its innovative user experience, critics caution against its rapid growth and escalating share prices. As opinions differ on its future, Friend.tech's impact on the crypto community, backed by Coinbase's infrastructure, is undeniable.
CoinDesk: Bitcoin miners are branching out into high performance computing (HPC) services, targeting the expanding artificial intelligence (AI) market, to reduce their crypto dependency. Funding for these new ventures partly comes from coin sales by miners. This diversification is evident in rebranding efforts, like Hive Blockchain Technologies becoming Hive Digital Technologies. Notably, former Ethereum miners are also repurposing GPUs for gaming and AI-related services, as the AI sector's growth increases demand for high performance computing, making it a potentially more lucrative avenue for these miners.
