Snapshot Web3

September 5, 2023

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Regulatory and Legal News

Indian central bank-backed NPCI begins blockchain recruitment

The National Payments Corporation Of India (NPCI), backed by the Reserve Bank of India, is seeking an experienced blockchain technologist to explore blockchain applications in modern payment systems. NPCI operates India's Unified Payments Interface (UPI) and aims to infuse blockchain into it. Several countries, including Singapore, Malaysia, the UAE, France, Benelux countries, Nepal, and the UK, have adopted UPI. The ideal candidate should have six years of blockchain experience and a deep understanding of multiple blockchain platforms. NPCI's blockchain recruitment drive is expected to expand as viable use cases emerge.

Former MAS chair who called crypto ‘highly risky’ wins Singapore’s presidential race

Tharman Shanmugaratnam, former chair of the Monetary Authority of Singapore, has won the presidential election with over 70% of the vote. He'll be sworn in on September 14. Shanmugaratnam, who previously criticized cryptocurrencies, resigned from his positions at MAS before his campaign. As president, his role is largely ceremonial. His election follows regulatory moves, including approvals for Crypto.com and exemptions for Bitstamp, Coinbase, and Gemini Trust in Singapore.

The EU's digital euro could face challenges in non-euro member states

The EU's digital euro may face obstacles in non-euro member states due to the need for international agreements between the EU and these countries. These agreements are necessary for the digital euro to be widely accepted. Complex legal and jurisdictional issues also need resolution. The investigation phase of the digital euro project, initiated by the ECB in July 2021, will conclude in October 2023, with the ECB deciding on the next development and testing stages.

Australia Senate Committee Rejects Crypto Bill From Opposition Senator Andrew Bragg

Australia's Senate Economics Legislation Committee rejected Senator Andrew Bragg's "Digital Assets (Market Regulation) Bill 2023," calling for continued industry consultation on crypto regulation instead. They cited the bill's lack of detail and misalignment with international standards as concerns. Bragg criticized the Labor government for slowing crypto regulation efforts. The expected consultation paper on crypto licensing and custody from Prime Minister Anthony Albanese has not been released yet. Australia's central bank is also exploring a CBDC but anticipates a decision will take several years.

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Innovation and Launches

Australian cardiac institute ditches cloud storage in favor of Filecoin

The Victor Chang Cardiac Research Institute in Australia has switched to Filecoin for storing its extensive research data. They made this transition in September 2022 to save on storage costs, avoiding fees from cloud providers. Filecoin's decentralized and data integrity-focused approach aligns well with their needs. It also facilitates easier data sharing with other researchers. Filecoin has other notable clients, including universities and Web3 players, and has onboarded a massive 1.5 EiB (1.7 billion gigabytes) of data.

Micro $3 Bitcoin miners won’t make bank, but that’s not the point: Inventors

Micro Bitcoin mining devices, despite their limited profitability, are viewed as a response to the "secrecy and exclusivity" within the Bitcoin mining industry, according to their creators. These small, often open-source, and pocket-sized miners are not designed to generate significant profits but aim to counter the lack of transparency in the industry. They provide an opportunity for individuals to participate in mining and promote decentralization by open-sourcing their designs. While they may not compete with commercial mining operations, they offer an affordable and accessible entry point to mining Bitcoin.

London Stock Exchange to create traditional assets trading platform on blockchain

The London Stock Exchange (LSE) Group is planning to create a blockchain-based platform for trading traditional financial assets. While it won't involve cryptocurrencies, it aims to use blockchain technology to improve the efficiency and transparency of traditional asset transactions. LSE Group intends to be the first major global stock exchange with a blockchain-powered ecosystem for investors. It waited for the right technology and investor readiness before proceeding. Other traditional financial institutions, like SWIFT, are also exploring blockchain integration for various purposes.

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NFT and Metaverse

Casio to release virtual G-SHOCK NFTs on Polygon

Casio is partnering with Polygon Labs to launch virtual G-SHOCK NFTs on Polygon's blockchain. Users can claim NFT-based G-SHOCK creator passes, starting on September 23. Casio customers with a CASIO ID can participate from September 23-26, followed by a public distribution phase from September 26-29. Casio plans to harness the popularity of its G-SHOCK watches, which have shipped over 100 million units since 1983. Community members can submit and vote on the pass design. Other major brands like DraftKings, Adidas, and Starbucks have also launched initiatives on Polygon's blockchain.

Failure to tax the metaverse ‘will create a tax haven’ — Harvard legal expert

Harvard legal scholar Christine Kim suggests taxing the metaverse as a way to prevent it from becoming a tax haven. In her research paper, she argues that economic activity within the metaverse should be regulated and taxed as it meets income definitions. Kim proposes taxing gains, even unrealized ones, immediately upon receipt within the metaverse. She outlines two enforcement methods: platforms withholding taxes for users or providing tax information for users to handle their tax obligations. Kim believes that taxing the metaverse can also serve as a testing ground for innovative policy development.

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Scams and Hacks

Crypto is in ‘arms race’ against AI-powered scams: Quantstamp co-founder

Quantstamp co-founder Richard Ma warns that the cryptocurrency industry is in an "arms race" against AI-powered scams. AI tools are making social engineering attacks more convincing and successful. Scammers can impersonate key personnel and engage in convincing conversations before requesting sensitive information. The scale and complexity of AI-powered attacks make them challenging to combat. Ma advises using internal communication channels for sensitive data, implementing anti-phishing software, and staying vigilant against evolving AI-driven scams.

Elaborate Crypto Scam Fleeces Victim of £180,000

A UK resident lost £180,000 ($227,292) in a sophisticated crypto scam. Scammers posed as investment advisors, convincing the victim they were investing in cryptocurrencies. Over six months, they gained access to her devices and transferred money, but no funds were invested in crypto. This comes as the UK government plans to crack down on crypto and insurance fraud, with the aim of hiring 400 specialized personnel. Fraud costs the UK approximately $9 billion, with criminals often targeting victims through social media and online channels. UK Prime Minister Rishi Sunak is committed to fighting these fraudulent activities.

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Funding

Blockchain Developer Cronos Labs Kicks Off Search for Participants in $100M Accelerator Program

Blockchain developer Cronos Labs is searching for eight startups to join its $100 million accelerator program, with a focus on projects at the intersection of AI and crypto. The 12-week program aims to support early-stage initiatives utilizing AI to enhance speed and efficiency in the crypto space. Cronos Labs has enlisted Google Cloud, Amazon Web Services (AWS), PeckShield, and Certik as mentors for the program. This initiative reflects the growing interest in AI within the blockchain and crypto industry and its importance for attracting investment. The recruitment phase aligns with Korea Blockchain Week.

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Quick Links

Ethereum Founder Vitalik Buterin Clearly Knows Something We Don't: Here's Why

Vitalik Buterin, Ethereum's co-founder, has recently made cryptocurrency transfers, including around 999 ETH (approximately $1.64 million). These transactions have raised questions about their purpose, which could involve portfolio diversification, strategic partnerships, undisclosed funding rounds, or routine financial management, and their potential impact on the cryptocurrency market.

Musk Funded Dogecoin, Mulled Blockchain Social Media, Biography Details

An upcoming biography of Elon Musk uncovers his role in privately funding Dogecoin's development and his contemplation of a blockchain-powered social media platform with payment features, an idea suggested by his brother Kimbal. Musk briefly altered Twitter's logo to the Dogecoin Shiba Inu, mentioned the concept on his rebranded platform "X," but ruled out launching its token. The biography also touches on Sam Bankman-Fried's unsuccessful attempt to assist Musk in acquiring Twitter, which Musk rejected.

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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.