Daily Crypto News | June 1st, 2022
1. Australian Big-four Banks don’t Regret Offering Crypto Services.
Excecutives of Australia and New Zealand Banking Group (ANZ) and National Australia Bank (NAB) said they’re pleased that they did not go ahead offering crypto trading products to retail customers. In March, ANZ became the first bank in Australia to mint the stable coin A$DC pegged to an Australia dollar (AUD). Meanwhile, NAB has been gearing up to launch its own stablecoin, which is expected in operation by the end of 2022. Both stablecoins from the 2 big banks will initially be offered to institutional clients seeking an on-ramp for crypto investments.
The only Australian bank plans to launch a retail crypto trading product is the Commonwealth Bank of Australia (CBA). Its CEO, Matt Comyn, said despite facing challenges, they still intent to launch the service.
2. Brazil Development Bank Launches their own Blockchain Network.
Since May 30, The Brazilian Blockchain Network, a public and distributed blockchain, was officially launched. This is a beginning point hosted by Brazillian Development Bank to get other institutions of Brazil to collaborate with the development and growth of the network. The bank expects others to get out of the lab structure and establish a working production prototype, so other third parties can focus on building apps on the network.
The network based on proof-of-authority consensus mechanism. Up to now, the network is still in its experimental stages in the laboratories of these institutions, and is expected to present working applications by 2023.
3. EU Regulator Views that Inflation Could Drive Investors to Crypto.
The Europe’s top securities regulators, Securities and Markets Authority (ESMA), has warned that soaring inflation may drive retail investors into cryptocurrencies. An amount of investors believe that Bitcoin is a great hedge against inflation. However, the cryptocurrencies now is highly volatile. Only in May, the crypto market as a whole has shed around $500 billion.
For more information, the ESMA is now given the power to regulate crypto issuer and service providers among Europe by the European Parliament. The latest bill on this aspect is the Markets in Crypto Assets (MiCA) bill first introduced in 2020.
4. South Korea to Invest $177 Million Directly in Metaverse Platforms.
South Korea is one of leading nations which directly invest in the future technology metaverse. The total amount of investmentis up to $177.1 million, just to kickstart the national industry, announced by the Minister of science and information and communication technologies. While various companies that are already investing in the metaverse, not many countries that have put their leg into such investing directly. The main reason is there are many regulatory questions still unanswered about the operation of metaverse companies and the intersection of Web3 technologies, which can include a cryptocurrency element in the mix.
However, with the pioneering of South Korea, other nations might follow.
5. Basel Committee focues on Restrictive Requirements for Banks’ Crypto Holdings.
The Basel Committee is a committee of banking supervisory authorities. The committee stated that it would soon publish its second consultative paper with the intention of finalizing guidelines on the prudential treatment of crypto exposure by banks by year-end. Since 2021, the committee has begun consultations on the banking sector’s risk exposure to cryptocurrency.
The committee divided crypto assets into two groups, the 1st group contains tokenized traditional assets and stablecoins, and the 2nd group consists of all others. A total 1,250% risk weight was assigned to the second group, which included all cryptocurrencies and their derivatives. That meant a bank was expected to hold $1 in fiat money for every $1 worth of cryptocurrency it held.
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