Snapshot Web3

October 2, 2023

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Regulatory and Legal News

New US bill to require firms to report off-chain transactions to CFTC

The Off-Chain Digital Commodity Transaction Reporting Act, introduced by U.S. Representative Don Beyer, compels crypto providers to report transactions to a government repository registered with the CFTC. This addresses risks associated with off-chain transactions, enhancing transparency in the market.

Georgia preparing limited live CBDC pilot, considering Ripple among tech providers

The National Bank of Georgia is moving forward with its digital lari central bank digital currency (CBDC) through a limited-access live pilot. Ripple Labs and eight other companies are part of this project, with one being selected for further testing. The CBDC is envisioned with programmable features and support for asset tokenization. The NBG aims for interoperability with the digital euro while ensuring monetary freedom. This initiative aligns with Georgia's consideration for EU membership. Ripple's involvement reflects its global presence in CBDC projects across various countries.

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Innovation and Launches

Brazil rolls out blockchain-based digital ID

Brazil is launching a blockchain-based digital ID program, starting with Rio de Janeiro, Goiás, and Paraná. Over 214 million Brazilians will benefit, with Serpro's private blockchain ensuring secure identity issuance. This initiative aims to combat organized crime and streamline administrative records. It aligns with efforts to standardize identity issuance across states and facilitate secure data exchange between government sectors. Additionally, Brazil is developing a central bank digital currency called Drex, with plans for expanded business access to capital through tokenization.

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NFT, Gaming and Metaverse

Epic Games lays off 830 staff, citing ‘unrealistic’ metaverse ambitions

Epic Games, the creator of Fortnite, has laid off 830 staff, citing unrealistic metaverse revenue expectations. CEO Tim Sweeney acknowledged the success of the Fortnite Creator program but noted it led to lower margins, necessitating major structural changes. An additional 250 employees will leave as the company sells Bandcamp and spins off SuperAwesome. Departing employees will receive six months of pay and healthcare. Epic Games, known for Fortnite and the Unreal Engine, is reevaluating its financial strategy after experiencing significant growth and changes in its economic landscape.

For Mark Zuckerberg, Advances in AI Still Lead Back to the Metaverse

Mark Zuckerberg emphasizes the significance of AI, particularly in creating digital avatars for Meta's metaverse. He envisions AI enhancing user experiences on platforms like Facebook and Instagram. While acknowledging the call for AI regulation, he leans towards a competitive approach, emphasizing the importance of the U.S. maintaining a lead in this sector. However, Meta's AI endeavors have faced criticism, notably regarding accessibility. Zuckerberg defends Meta's open-source stance, highlighting the need for a balance between openness and security.

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Scams and Hacks

Hong Kong and Macau police seize over $2.8M related to JPEX fraud case

In the JPEX crypto exchange fraud case, Hong Kong and Macau police arrested two individuals involved in money laundering through Macau casinos. Assets worth over $2.8 million were seized, and two more suspects were apprehended, one attempting to destroy evidence. In total, 18 individuals have been detained. The JPEX scandal, one of Hong Kong's largest fraud cases, has received over 2,300 complaints from victims, resulting in losses of approximately $178 million. Efforts continue to locate the masterminds behind the scheme with the assistance of Interpol.

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Interesting Reads

How blockchain transforms the streaming industry via new business models

Web3 streaming, utilizing blockchain, disrupts the entertainment industry. Unlike centralized Web2 platforms, Web3 offers decentralized control and NFTs for artists. Fans benefit from interactive models, strengthening creator-fan relationships. EarnTV, a blockchain-powered content delivery platform, exemplifies this shift, providing secure transactions and viewer rewards through tokenization. EarnTV's native token, ETV, plays a central role. With a strong focus on security and reputation, EarnTV aims to revolutionize the industry in the Web3 era.

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Quick Links

3AC’s Su Zhu arrested in Singapore

Su Zhu was arrested at Singapore Changi Airport while attempting to leave the country after a court granted a committal order.

Binance Russia buyer tightlipped on owners, denies CZ involvement

Binance’s buyer in Russia, CommEx, has been developing its platform for six months and has onboarded some ex-Binance employees, the firm said.

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Miscellaneous

Google Cloud is now a validator on the Polygon network

Google Cloud has become a validator on the Polygon proof-of-stake network, joining over 100 others in verifying transactions on its layer-2 Ethereum platform. This move leverages Google Cloud's robust infrastructure, which powers platforms like YouTube and Gmail, to enhance the security and efficiency of Polygon. Validators play a crucial role in securing the network by operating nodes, staking MATIC, and participating in the proof-of-stake consensus mechanism. This partnership signifies a strategic collaboration between Google Cloud and Polygon Labs, with a shared goal of advancing the Web3 future. Polygon Labs' recent "Polygon 2.0" initiative aims to update the network, including transitioning to the new token POL. These changes are set to roll out in Q4 2023.

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Resource of the Day

Crypto synthetic assets, explained

Crypto synthetic assets are digital financial instruments created through blockchain technology to mimic the value and behavior of real-world assets like stocks, commodities, or currencies, without owning the underlying assets. They utilize complex financial derivatives and smart contracts in decentralized finance (DeFi) ecosystems, offering users access to a wider range of financial markets and assets. These assets come in various forms, including stablecoins, tokenized commodities, leveraged tokens, and yield-bearing assets. While they provide benefits like diversification and leverage, they also entail risks such as smart contract vulnerabilities and regulatory uncertainties, necessitating a comprehensive understanding before engagement.

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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.