Regulatory News
European Union (EU)
ECB initiates calls for Digital Euro components: Opportunities for framework agreements with external providers - On January 3, 2024, the European Central Bank (ECB) announced the issuance of five calls for applications to establish framework agreements with potential providers of digital euro components and related services. The objective is to secure the implementation of the necessary infrastructure, ensuring the Eurosystem is well-prepared to commence the development of a digital euro when the appropriate time arrives.
The five digital euro components for which tenders are being sought are as follows:
- Alias Lookup: Application deadline is February 19, 2024. Details can be found here.
- Fraud and Risk Management: Application deadline is February 8, 2024. Details can be found here.
- App and Software Development Kit (SDK): Application deadline is February 20, 2024. Details can be found here.
- Offline Services: Application deadline is February 15, 2024. Details can be found here.
- Secure Exchange of Payment Information: Application deadline is February 13, 2024. Details can be found here.
Candidates interested in participating can submit their applications via the ECB’s eTendering platform. The specific criteria for each application can be found in the respective documents linked above. For more information, visit the ECB’s eTendering platform here.
Bank of Spain Chooses Cecabank, Abanca, and Adhara Blockchain for CBDC Testing - Bank of Spain has selected Cecabank, Abanca, and Adhara Blockchain as collaborators for central bank digital currency (CBDC) testing. The pilot, spanning six months, will simulate interbank payments processing and settlement using a single tokenized wholesale CBDC. The experiment will also involve settling a simulated tokenized bond through the Cecabank-Abanca consortium. Out of 24 applications received, these three companies were chosen, with Adhara Blockchain headquartered in the UK.
United Kingdom (UK)
OKX implements FCA's new rules for UK users: Risk assessments mandatory for trading - Cryptocurrency exchange OKX is set to enforce new rules for its UK users in compliance with the Financial Conduct Authority (FCA) regulations. Starting next week (January 8), UK-based users must complete risk assessment questionnaires to demonstrate their understanding of the risks associated with buying and trading digital assets. Failure to complete the assessments or show a comprehension of risks will render users ineligible to hold an OKX account. The move aligns with the FCA's goal to ensure users are aware of the risks in crypto trading.
Global News
South Korea's Financial Regulator proposes ban on credit card payments for cryptocurrencies - On January 4, South Korea's Financial Services Commission (FSC) is considering changes to credit finance laws, aiming to prohibit citizens from using credit cards to purchase cryptocurrencies. The FSC expresses concerns about potential illegal fund outflows, money laundering, and speculative activities associated with South Korean citizens buying cryptocurrencies from overseas exchanges. The proposal is open for public input until February 13, with plans for review and resolution, targeting implementation in the first half of 2024.
China: Legislation and technology lag behind as cryptocurrencies facilitate new avenues for bribery crimes - Recent discussions at the 2023 annual meeting of the China Integrity and Legal Research Association highlight the challenges posed by emerging forms of corruption leveraging virtual currencies and electronic gift cards. Experts point out the need for legislative updates to address these evolving corruption methods. The adoption of cryptocurrencies and digital assets, often associated with anonymity and difficulty in tracking, has created loopholes in the regulatory system. As authorities grapple with the concealment of new corruption channels, the experts emphasize the importance of improving legislation, enhancing supervision in high-risk areas, and leveraging technology to bridge the gap between regulatory needs and anti-corruption efforts.
Hong Kong proposes regulations for stablecoins, launches public consultation - Hong Kong has initiated a public consultation on a legislative proposal aimed at regulating issuers of stablecoins, digital tokens pegged to existing currencies or commodities. Jointly released by the Financial Services and the Treasury Bureau and the Hong Kong Monetary Authority (HKMA), the proposal outlines plans for a licensing regime, requiring fiat-referenced stablecoin issuers to be licensed by the HKMA. Only licensed entities can provide such stablecoins to retail investors, and advertising by unlicensed entities will be prohibited. The consultation period runs until Feb 29, as Hong Kong seeks to strengthen its position as a global virtual asset hub.
Industry News
LATAM
Experts predict top cryptocurrencies for 2024: Bitcoin, Ethereum, Solana, and Promising Altcoins to Watch - Experts in the Brazilian crypto industry anticipate 2024 to be promising for cryptocurrencies. Bitcoin is highlighted as the most favorable due to its security and store of value status, with potential growth tied to upcoming ETF approvals and halving events. Ethereum is expected to see increased value with a Q1 2024 network update and potential ETF approval. Solana stands out for its scalability and recent initiatives in gaming, while recommended altcoins include Ronin, Echelon Prime, and Pendel. Other notable picks encompass Polygon, Aave, Avalanche, Cosmos, and specific executive recommendations like UniBot, Realio, and Injective.
Global News
Cryptocurrency donations in philanthropy: Charities embrace change - According to Crypto News article, as 2023 concludes, the trend of charities accepting cryptocurrency donations is gaining momentum, with thousands of organizations worldwide supporting crypto philanthropy. Charities like UNICEF, Save The Children, Susan G. Komen, and The Giving Block's Maui Emergency Response Fund are among those accepting crypto donations. Benefits include tax efficiency, attracting younger donors, and facilitating borderless transactions. The trend is expected to grow with increased crypto adoption. As donors look for year-end giving opportunities, crypto holders may consider contributing to crypto-friendly charities, fostering positive change.
NFT predictions for 2024: Anticipated trends and challenges - Cointelegraph spoke with Web3 professionals to glean insights into the anticipated trends and challenges the NFT space may encounter in 2024. Predictions include a closer link between digital and physical assets, with NFTs serving as digital twins and certificates of authenticity. The tokenization of real-world assets is expected to continue, expanding into industries like precious metals and real estate. NFT gaming is predicted to gain momentum, introducing new ways to use tokens in gaming experiences. Bitcoin-based NFTs are anticipated to grow, leveraging the unique features of the Bitcoin network. Challenges include changing public perception, overcoming stigma and navigating regulatory uncertainties surrounding NFTs. Despite challenges, experts express bullish views on NFTs becoming standard internet infrastructure.
Moody's rates first tokenized fund on SC Ventures' Libeara platform - Moody's has provided a rating for FundBridge Capital's SGD Delta Fund, the first fund to utilize Standard Chartered's Libeara tokenization platform. Despite the underlying AAA credit quality, the fund received an AA rating due to factors like the issuer's limited experience and Libeara's nascent track record. The tokenized fund, issued on Ethereum and Stellar blockchains, focuses on high-quality Singapore government securities. The offering emphasizes a controlled experience, limiting trading to whitelisted investors and using the StraitsX stablecoin XSGD for subscriptions.
Goldman Sachs in talks to facilitate BlackRock and Grayscale Bitcoin ETFs - Goldman Sachs is in discussions to be an "authorized participant" for the proposed bitcoin ETFs by BlackRock and Grayscale, pending SEC approval. This crucial role involves creating and redeeming ETF shares to ensure alignment with underlying assets. JPMorgan Chase, Jane Street, and Cantor Fitzgerald have already committed to similar roles for other bitcoin ETF applicants. The move signals traditional U.S. banks' growing interest in cryptocurrencies, facilitated by a cash-based mechanism seen as crucial for SEC approval. The collaboration involves major industry players, with BlackRock as the world's largest asset manager and Grayscale managing the $26 billion Grayscale Bitcoin Trust.
