Snapshot Web3

December 4, 2023

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Regulatory and Legal News

Bank of England Proposes Stricter Regulations for Stablecoins

The Bank of England has proposed stricter regulations for stablecoins, particularly targeting a business model that the U.S. Federal Reserve deemed "unsafe and unsound." The proposal focuses on stablecoins backed by a basket of assets, including traditional currencies and securities. While this model aims to maintain a stable value, regulators are concerned about potential risks and complexities. The Bank of England's regulations would mandate stricter reserve requirements, risk management practices, increased transparency regarding asset reserves, and regular stress testing and audits. The move reflects global concerns about the stability and security of stablecoins, emphasizing the need for a unified global framework for oversight.

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Innovation and Launches

Tether moving into infrastructure, energy production, CEO Ardoino says

The new CEO of Tether, Paolo Ardoino, announced that Tether is expanding beyond its USDT stablecoin to become an infrastructure provider. Tether aims to embrace the Web3 premise and build a real-world ecosystem. Ardoino expressed enthusiasm for decentralized communications app Keet, where he serves as Chief Strategy Officer, and its platform Holepunch, emphasizing its potential role in driving Bitcoin and USDT adoption globally. Tether is also venturing into renewable energy and infrastructure projects, with plans to build hydropower facilities in Uruguay and geothermal facilities in El Salvador. The company is positioning itself for diversification and growth beyond its stablecoin business.

Binance Japan Launches Full Operations

Binance has officially launched its full operations in Japan, complying with the country's stringent regulatory requirements. This move comes after a period of collaboration with regulatory authorities to ensure adherence to local laws, providing a boost to the legitimacy of the cryptocurrency industry in Japan. Binance Japan's compliance with regulations is expected to attract a broader range of investors and contribute to the broader acceptance and integration of cryptocurrencies into the financial ecosystem. The move aligns with the global trend of increased institutional interest in digital assets and signifies a step toward greater regulatory clarity in the evolving crypto landscape.

Standard Chartered-Backed Zodia Custody Joins Ripple-Owned Metaco’s Global Crypto Storage Network

Zodia Custody, a cryptocurrency storage provider backed by Standard Chartered, is joining Metaco's network, a custody solution owned by Ripple. This collaboration aims to provide global sub-custody, allowing institutions to contract with custodians in different regions. This move reflects the evolution of crypto custody into a networked model, enabling multiple custodians to link together globally. Zodia Custody's integration with Metaco's network follows the trend of developing infrastructure components in the cryptocurrency industry, resembling traditional finance practices for enhanced security and counterparty risk reduction.

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Funding and Acquisitions

Arbitrum DAO passes $23M extra budget to fund all grant applicants

The Arbitrum DAO has approved an additional budget of $23.4 million to fund all projects approved in its recent Short-Term Incentive Program (STIP). The vote, which passed with a significant majority, will distribute 21.1 million ARB tokens to an additional 26 projects, expanding the STIP's total budget to 71.4 million ARB tokens. Arbitrum, a layer-2 scaling solution for Ethereum, aims to support diverse emerging builders and foster a welcoming environment for new projects. The protocol has been successful in generating revenue through transaction fees, with over $57 million in cumulative fees reported.

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Interesting Reads

Binance is now 'totally different': Interview with CEO Richard Teng

Binance's new CEO, Richard Teng, asserts that the cryptocurrency exchange has addressed compliance gaps from its early days and is now "totally different" after the $4.3 billion settlement with the U.S. Department of Justice. Teng emphasizes the company's commitment to user funds, security, and safety, noting that the settlement is a result of historical compliance issues during Binance's rapid growth. He outlines Binance's focus on compliance, regulatory talent acquisition, and regional headquarters in the UAE and France. Teng acknowledges the challenges of replacing founder-CEO Changpeng 'CZ' Zhao but expresses optimism about the company's growth agenda and collaboration with global regulators.

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Resource of the Day

How blockchain improves daily healthcare routine, explained

Blockchain technology holds transformative potential in healthcare by ensuring transparent, secure, and unchangeable record-keeping, leading to improved patient-centered treatment, quick information sharing, and data security. It enhances clinical trial integrity, automates insurance claim procedures, and prevents drug counterfeiting in the pharmaceutical supply chain. In telehealth, blockchain facilitates secure virtual consultations, appointment scheduling, and encrypted communication channels. In medical billing, it optimizes processes, improves efficiency, and ensures regulatory compliance. Challenges include interoperability, scalability, and privacy concerns. The future landscape envisions a decentralized, secure system for medical records, promoting interoperability, automation, and patient-centric care.

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Miscellaneous

Bitcoin tops $40K for first time in 19 months, Matrixport tips $125K in 2024

Bitcoin has surpassed the $40,000 mark for the first time in 19 months, reaching a 19-month high and a new year-to-date high. The cryptocurrency surged over 2% in 24 hours, climbing from under $39,500 to above $40,000. While it is up over 140% since the beginning of the year, it remains around 42% below its November 10, 2021, all-time high of over $69,000. Matrixport's research head, Markus Thielen, predicted in a note that Bitcoin would surpass $60,000 by April 2023 and reach $125,000 by the end of 2024, citing historical patterns around Bitcoin halvings and mining rewards. The recent price milestone aligns with speculation that a spot Bitcoin exchange-traded fund (ETF) could be approved in the United States soon.

FTX and Alameda transfers another $22M worth of crypto asset

FTX and Alameda Research, two prominent players in the cryptocurrency space, have reportedly conducted another substantial transfer of digital assets, amounting to $22 million. This recent move involves a diverse mix of cryptocurrencies, including $IMX, $GMT, $ETH, UNI, $SHIB, $BAL, $LOOKS, and $WOO. The ongoing maneuvers by FTX and Alameda Research come in the wake of their bankruptcy declaration, with transactions totaling $551 million across 59 different tokens since October 2023. The recent transfer involved $10.8 million spread across tokens like GMT, UNI, SYN, KLAY, FTM, SHIB, ARB, and OP, and it occurred on platforms such as Wintermute, Binance, and Coinbase. FTX and Alameda Research continue to navigate financial challenges and liquidations as they address substantial debts.

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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.