Regulatory News
European Union (EU)
ECB President Lagarde Discusses Euro's 25th anniversary and Digital Euro at European Parliament hearing - On February 15, 2024, during a hearing with the Committee on Economic and Monetary Affairs of the European Parliament, ECB President Christine Lagarde provided updates on the economic outlook and recent monetary policy decisions. Lagarde emphasized the significance of the euro's journey over the past 25 years, highlighting its role in providing simplicity, stability, and sovereignty. Additionally, she addressed the Parliament's role in strengthening the euro's foundations and outlined the ECB's commitment to addressing new challenges, including the development of a digital euro, to ensure the currency's future success.
ECB Executive Board Member discusses Digital Euro preparation phase - On February 14, 2024, Piero Cipollone, a member of the Executive Board of the ECB, addressed the Committee on Economic and Monetary Affairs of the European Parliament regarding the digital euro preparation phase. Cipollone emphasized the importance of preserving citizens' freedom to use a public means of payment while ensuring that both cash and digital euro remain widely accessible. He provided insights into key aspects of the digital euro preparation, including the search for possible providers, development of a digital euro rulebook, stability of the financial system, and the enhancement of privacy in digital payments.
ECB Working Paper analyzes transition to Central Bank Digital Currency - On February 13, 2024, the European Central Bank's working paper ´´Managing the transition to central bank digital currency´´ examines the shift from a non-CBDC state to one with a CBDC, utilizing a two-country DSGE model with financial frictions. Highlighting CBDC benefits like enhanced payment convenience, it notes potential drawbacks in increased volatility and initial declines in investment, consumption, and output. The study suggests that imposing binding caps proves most effective in mitigating disintermediation and output losses during the transition while minimizing international spillovers.
Crypto.com President foresees MiCA boosting European expansion for exchanges - Eric Anziani, president and COO of Crypto.com, anticipates that the implementation of MiCA legislation in 2024 will facilitate the expansion of cryptocurrency exchanges across Europe by providing unified regulations. Anziani emphasizes the challenges posed by fragmented regulatory frameworks in different European markets and sees MiCA as a step towards harmonization, reducing compliance costs for exchanges. Despite regulatory shifts globally, including in the UK, Crypto.com maintains a strong presence across key jurisdictions and reports a growing user base nearing 100 million.
United Kingdom (UK)
UK Regulator cracks down on iIllegal crypto ads: Issues 450 alerts in 2023 - The Financial Conduct Authority (FCA) issued 450 alerts for illegal cryptocurrency advertisements in 2023, cracking down on non-compliance with new promotion rules. Additionally, over 10,000 finance-related promotions were ordered to be withdrawn or amended by the FCA in the same year. The regulator highlighted concerns about firms making unsupported claims about the safety and ease of use of crypto services. It also emphasized ongoing efforts to remove illegal promotions, including collaborations with tech companies to take down offending websites and apps. Consumers were urged to report potential scams and misleading advertisements through official channels.
Data Protection and Digital Information Bill carried over to next Parliamentary session - On February 7, 2024, the House of Commons passed a carry-over motion on the Data Protection and Digital Information (No. 2) Bill. In particular, a carry-over motion allows a Public Bill to continue its progress from one parliamentary year (session) into the next. Public bills that have not been passed by the end of the session in which they were introduced will otherwise fail. The Data Protection and Digital Information Bill introduces provisions to enhance data protection, streamline compliance requirements, facilitate smart data schemes, establish digital verification services, and reform the Information Commissioner, among other measures.
Global News
Philippines plans wholesale CBDC launch in two years - Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona disclosed plans for a non-blockchain wholesale CBDC to be launched within two years. The decision to avoid blockchain technology was motivated by past challenges faced by other central banks. Remolona emphasized the focus on wholesale CBDCs mediated by banks, citing concerns about retail CBDCs potentially exacerbating financial instability.
Industry News
European Union (EU)
Deutsche Börse-owned Crypto Finance secures BaFin licenses, prepares for exchange launch - Deutsche Börse-owned Crypto Finance's German subsidiary secures four licenses from BaFin, paving the way for regulated digital asset trading, settlement, and custody services in Germany. This development aligns with Deutsche Börse's plans to launch a digital exchange named DBDX, targeting institutional users later this year. With its commitment to transparency and security, Crypto Finance aims to contribute to the development of a reliable ecosystem for crypto assets within the framework of MiCA regulations set to come into force in 2024.
Deutsche Telekom partners with Bosch and Fetch.ai for blockchain foundation - Deutsche Telekom has joined the Fetch.AI Foundation, formed by Bosch and Fetch.AI, as its first corporate member. Through this collaboration, Deutsche Telekom aims to leverage Fetch.AI's concept of Autonomous Economic Agents (AEA) to automate industrial services and enhance processes using blockchain technology. Fetch.AI's autonomous agents, combined with IoT and smart devices, offer innovative solutions for various industries such as healthcare, automotive and supply chain management. Additionally, Deutsche Telekom's involvement extends its expertise in operating nodes and validators across multiple public blockchains since 2019.
Torrevieja aims to lead Europe in crypto adoption as stores welcome digital payments - Torrevieja in Spain plans to become Europe's first crypto-friendly city, allowing stores to accept cryptocurrencies for payments. This initiative, part of a digital transformation project, is a collaboration between the local government and merchants' association. Alongside promoting commerce with crypto transactions, the city aims to enhance natural spaces and boost job creation in the technology sector. The move reflects Spain's growing openness to cryptocurrencies, with increasing numbers of registered crypto companies and Bitcoin ATMs in the country.
Telefónica teams up with Chainlink for Web3 security using GSMA Open Gateway - Telefónica has formed a strategic alliance with Chainlink Labs to integrate Chainlink Functions with GSMA Open Gateway APIs, enhancing Web3 security and connectivity. The collaboration, showcased through the first use case of the GSMA Open Gateway SIM SWAP API by Vivo (Telefónica Brazil), adds an extra layer of security to blockchain transactions. By leveraging Chainlink's industry-standard platform, developers can access Telco APIs and bolster the Web3 ecosystem with improved authentication and verification mechanisms. Telefónica and Chainlink will present their collaboration at the Mobile World Congress (MWC), highlighting Telefónica's role as a Web3 enabler and its strides in the Metaverse strategy.
LATAM
OKX expands crypto exchange services to Argentina, targeting Latin American market growth - OKX, a cryptocurrency exchange, has launched its services in Argentina, marking its expansion into the Latin American market following its previous entry into Brazil. Argentine users now have access to OKX's exchange platform, self-custody wallet, and NFT trading capabilities. The move comes amid Argentina's growing crypto adoption, with the country ranking 15th on the Chainalysis Global Crypto Adoption Index. Despite regulatory challenges, OKX president Hong Fang sees Argentina as a key part of the exchange's regional growth strategy in Latin America.
Global News
Citi teams up with Wellington Management and WisdomTree for private market tokenization - Citi, in collaboration with Wellington Management and WisdomTree, has successfully completed a proof of concept on tokenizing private funds, utilizing smart-contract capabilities on the Avalanche Spruce institutional test Subnet. The experiment demonstrated the potential for enhanced operational efficiencies and compliance in private markets, addressing challenges such as lack of standardization and transparency. Through this initiative, Citi aims to explore new operating models and create efficiencies for both issuers and investors in the broader market.
