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- Spain To Implement MiCA Six Months Ahead Of July 2026 Deadline 🇪🇸🗓️
Spain To Implement MiCA Six Months Ahead Of July 2026 Deadline 🇪🇸🗓️
PLUS: There are now nearly 40M Bitcoin addresses in profit — A new record. Bulgaria’s oldest football club adopts Bitcoin and Lightning.
Manan Vora
November 01, 2023
Snapshot Web3
November 1, 2023
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Regulatory and Legal News
The U.S. Commodity Futures Trading Commission (CFTC) has paid out $16 million to whistleblowers this year, with the majority of tips related to cryptocurrency. In September, two whistleblowers received a total of $15 million for their information, leading to successful enforcement cases. The CFTC emphasized the importance of whistleblowers in combating fraud and illegal activities in commodities trading, particularly in the crypto space, which has seen pervasive fraudulent activities. Since the program's inception in 2014, the CFTC has paid out nearly $350 million, leading to over $3 billion in enforcement sanctions. CFTC Commissioner Christy Goldsmith Romero highlighted the need for stronger identity verification measures to minimize illicit finance in the crypto market.
Spain is set to implement the Markets in Crypto-Assets (MiCA) Act, the first comprehensive European Union crypto framework, six months ahead of the general deadline in December 2025. The MiCA Act was initially slated for implementation across all EU member states by July 2026. Spain aims to expedite this transition, shortening the transitional period to 18 months from the original 36-month timeline. This move is intended to provide legal clarity and enhanced protection for Spanish investors in crypto assets. Additionally, major international crypto exchanges operating in Spain have obtained local licenses to ensure regulatory compliance and Anti-Money Laundering standards.
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Innovation and Launches
Project mBridge, a central bank digital currency (CBDC) bridge, is gearing up for its commercial launch. The Bank for International Settlements (BIS) released an update providing comprehensive details about the project, including its governance, technical aspects, and the use of the Dashing consensus algorithm. The update also highlights the aim to reduce steps in cross-border payments, enabling direct bilateral connectivity between local banks. Additionally, it reveals 25 observer organizations involved in the project, including central banks and institutions like the IMF. Project mBridge, initiated in 2021, is a collaboration between central monetary authorities and BIS to streamline cross-border payments.
The Dubai Virtual Assets Regulatory Authority (VARA) has granted a VASP license to Backpack, allowing the launch of the Backpack Exchange. The license is specifically for crypto exchange services in Dubai. The exchange will feature advanced security measures and aims to set a new standard for transparency and compliance. Initial access will be given to existing users in November 2023, with public access planned for Q1 2024. During this time, Backpack plans to add various trading functionalities, including derivatives and margin options.
Botev Plovdiv FC, Bulgaria's oldest football club, has integrated Bitcoin and the Lightning Network for fan payments in its stadium. Fans can now use Bitcoin for purchases at the club's fan shops and stands during matches. The club is also planning to extend Bitcoin payments for tickets and its online store. This initiative comes as part of a partnership with BTCPay Server, known for its open-source architecture, secure infrastructure, and low fees. Additionally, the club has joined the decentralized protocol Nostr and has revamped its online presence. This move follows Real Bedford, a UK-based club, which was the world's first to adopt Bitcoin.
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NFT, Gaming and Metaverse
Web3 gaming investors are being more selective amid the crypto bear market, says Animoca Brands CEO Robby Yung. He stresses the need for solid due diligence and a clear market fit for product ideas. Yung notes that investors now expect tangible progress, like an alpha build and user testing, before committing capital. While selectivity has increased, he acknowledges that companies are still able to secure funding, indicating a shift towards quality projects. Yung also highlights the challenge of user acquisition in Web3 gaming due to distribution difficulties, particularly on mainstream gaming platforms. He suggests more engagement between mainstream players and the Web3 community is needed for broader market solutions.
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Scams and Hacks
Bitget and Floki are embroiled in a dispute over the listing of the TokenFi (TOKEN) token. Floki claims Bitget listed the token before it was launched, causing confusion, while Bitget accuses Floki of market manipulation. Floki submitted a proposal to launch a staking program but didn't reveal the token's name. They informed exchanges not to list it for seven days after launch, but claim Bitget violated this. Bitget argues TOKEN's price fluctuations led to suspicions of market manipulation and cited an unclear token economy. TOKEN's launch on Bitget saw rapid price gains, and Floki alleges Bitget ended up with a $20 million liability.
On October 29, a new contract deployed by Unibot, a popular Telegram bot for trading on Uniswap, was exploited, resulting in the loss of around $560,000 in various memecoins from users. Scopescan, a blockchain analytics firm, alerted Unibot users about the ongoing hack. The exploit involved a newly deployed contract that drained the holdings of several users. Unibot later confirmed the hack and temporarily paused its router to contain the issue. The hacker is in the process of converting the stolen memecoins into Ether. Unibot has committed to compensating all affected users, with cryptocurrencies like Joe (JOE), UNIBOT, and BeerusCat (BCAT) representing a major part of the loot. The price of UNIBOT token dropped by 42.7% in one hour following the hack, but it has since started to recover.
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Interesting Reads
The latest data from Glassnode, an on-chain analytics firm, reveals that there are now a record number of Bitcoin addresses "in the black." As of October 30, 39.1 million addresses are in profit, which is the highest number ever recorded for Bitcoin. This surpasses the previous peak of 38.1 million seen in November 2021 when BTC/USD was trading at all-time highs. Despite the current spot price being 50% lower than those levels, the total number of non-zero addresses now stands at 48.3 million. In percentage terms, addresses in profit are at 18-month highs of 81.1%. By contrast, addresses at a loss currently stand at just over 9 million, down from a peak of over 20 million in December 2022. This data indicates a difference in mentality between short-term and long-term holders, with long-term holders showing minimal profit-taking in the face of recent price increases.
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Resource of the Day
Blockchain technology is revolutionizing charitable giving with unprecedented transparency, efficiency, and security. Through its decentralized ledger, every transaction related to charity is recorded, ensuring donations are used as intended and fostering trust in nonprofit organizations. Smart contracts automate transactions, reducing administrative costs and ensuring funds reach their intended recipients. Blockchain enables quick and affordable international donations, expanding the reach of charity endeavors. It also enhances data integrity and security, protecting gift records and deterring fraud. While challenges like cryptocurrency volatility and legal compliance must be addressed, blockchain-based philanthropy represents a paradigm shift towards a new era of accessible, efficient, and transparent giving.
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Miscellaneous
The ticker for the Invesco Galaxy spot Bitcoin ETF (BTCO) has been added to the Depository Trust and Clearing Corporation’s (DTCC) website. This is seen as a step forward in the application process for the ETF, which is managed by Invesco and Galaxy Digital. However, it's important to note that the appearance of the ETF on the DTCC's site does not guarantee future approval. According to a DTCC spokesperson, adding securities to the NSCC security eligibility file is a standard practice in preparation for the launch of a new ETF, and it doesn't indicate the outcome of any outstanding regulatory processes. The application for the joint spot Bitcoin ETF was reactivated on June 21, following a wave of similar filings after BlackRock submitted its application for a spot Bitcoin ETF on June 15.
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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.
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