- Snapshot Web3
- Posts
- UK regulator advocates for asset managers to tokenize funds 🇬🇧💳
UK regulator advocates for asset managers to tokenize funds 🇬🇧💳
PLUS: Raiffeisenlandesbank to launch Bitcoin trading in early 2024. Crypto documentary ‘Bull Run’ takes on Bitcoin, tokenization and trading addiction.
Manan Vora
November 27, 2023
Snapshot Web3
November 27, 2023
👨⚖️
Regulatory and Legal News
The UK's financial regulator, the Financial Conduct Authority (FCA), supports a blueprint model advocating for fund tokenization by asset managers, endorsing the benefits of increased efficiency and transparency in the financial industry. The Investment Association's report suggests using distributed ledger technology (DLT) for real-time record-keeping to reduce administration costs and simplify the reconciliation process. The FCA expresses openness to innovation while highlighting the importance of addressing potential risks. The UK government welcomes the blueprint model, emphasizing its commitment to fostering innovation in the asset management industry. The report outlines principles for implementing tokenized funds, emphasizing inclusivity and adherence to traditional financial industry standards.
The Monetary Authority of Singapore (MAS) has introduced measures to discourage speculation in cryptocurrency investments. The measures for Digital Payment Token (DPT) service providers include assessing customer risk awareness, refraining from offering incentives for crypto trading, avoiding financing, margin, or leveraged transactions, refusing locally issued credit card payments, and excluding crypto holdings in determining a customer's net worth. MAS aims to address the significant risks and consumer harms associated with speculative cryptocurrency trading, driven in part by unverified success stories, celebrity endorsements, and the fear of missing out on returns.
🚀
Innovation and Launches
Circle, the issuer of USD Coin (USDC), has partnered with Tokyo-based financial services firm SBI Holdings to expand the adoption of USDC and Web3 services in Japan. The memorandum of understanding (MOU) outlines the strategic expansion of USDC into Japan. SBI Holdings aims to register as an electronic payment instruments service provider to facilitate the circulation of USDC in the country, pending approval from Japanese authorities. The collaboration also involves promoting the adoption of Circle's Web3 Services suite in the region. SBI Shinsei Bank, a subsidiary of SBI, will provide banking services to Circle to facilitate USDC access and liquidity in Japan.
Raiffeisen Bank's Austrian subsidiary, Raiffeisenlandesbank Niederösterreich-Wien (RLB NÖ-Wien), is set to launch cryptocurrency trading services for its retail clients in early 2024. Collaborating with Austrian crypto firm Bitpanda, RLB NÖ-Wien aims to provide a digital investment platform to meet the demand for easy and intuitive digital investment platforms. The rollout will begin in Vienna, and users will have access to all cryptocurrencies offered by Bitpanda, including Bitcoin and Ethereum. Raiffeisen Bank's move into crypto reflects the growing adoption of digital assets by traditional financial institutions.
♾️
NFT, Gaming and Metaverse
Square Enix, the developer behind Final Fantasy, has announced auction dates for its Symbiogenesis non-fungible tokens (NFTs). The auctions will be held in three phases, with the first batch available from Nov. 27 to 28, the second from Nov. 30 to Dec. 4, and the third from Dec. 2 to 3. The first phase is exclusive to stakeholders, suggesting early investors. The second and third phases are open to participants in an "allowlist entry campaign." Symbiogenesis is a blockchain game set to launch on Dec. 21, featuring Ethereum-based NFTs. Square Enix is known for its popular Final Fantasy series.
📵
Scams and Hacks
Inferno Drainer, a notorious crypto wallet-draining service, has announced its shutdown after assisting phishing scammers in stealing nearly $70 million worth of cryptocurrencies this year. The team behind Inferno Drainer stated that it's "time to move on" in a Telegram post and thanked those who worked with them. The files and infrastructure needed to run the wallet drainer will remain active for a smooth transition to other services. Since February, Inferno Drainer has reportedly stolen nearly $70 million from over 100,000 victims. The team urged users not to trust other drainers using its name in the future.
📚
Interesting Reads
Changpeng "CZ" Zhao, the founder of Binance, has pleaded guilty to violating U.S. Anti-Money Laundering requirements. However, a recent court filing suggests that his legal challenges are not over. While Zhao is expected to be sentenced in February 2024, the Department of Justice (DOJ) is willing to argue for a longer term, potentially up to the statutory maximum of ten years. Legal experts suggest that Zhao might receive a 12–18 month sentence under the U.S. Sentencing Guidelines, but the DOJ's push for a more extended jail time is raising questions. The case is generating controversy and scrutiny, with analysts noting differences in the treatment of crypto exchanges compared to traditional financial institutions.
👨🎓
Resource of the Day
The documentary "Bull Run," directed by Ana Ramón Rubio, is touted as the first tokenized film in history. It raised €320,000 in just 24 hours in September 2021, with backers receiving BULL tokens representing the film's debt and certain rights to its profits. The film explores Rubio's addiction to crypto trading during the bull market, providing insights into the emotional toll of the experience. While entertaining and light-hearted, it delves into the director's personal life and her evolving perspective on cryptocurrency, ultimately expressing a belief in Bitcoin's success. Rubio is now a holder, emphasizing her shift from a speculative mindset.
🌐
Miscellaneous
The governing body of Cosmos Hub has approved a proposal to reduce the maximum inflation rate of its native token, ATOM, from 14% to 10%. This modification would bring down ATOM's annualized staking yield from around 19% to approximately 13.4%. The proposal narrowly passed, with 41.1% of votes for and 38.5% against. The change aims to address concerns about overspending on security due to ATOM's elevated inflation rate and seeks to encourage the use of ATOM in DeFi and other applications within the Cosmos ecosystem.
The Blast network, a new Web3 protocol, has achieved over $400 million in total value locked (TVL) within four days of its launch. However, Polygon Labs developer relations engineer Jarrod Watts raised concerns about Blast's security and decentralization, claiming that it is a 3/5 multisig and potentially less secure than users realize. In response, the Blast team argued that the protocol is as decentralized as other layer-2 solutions and emphasized the security measures in place, including independent management of keys in cold storage. Blast aims to provide native yield for ETH and stablecoins on Ethereum Layer 2.
Liked the newsletter? Share it with your network.
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.
Reply