Welcome to Barmy’s Daily Crypto News – December 20th, 2022
1. Bank of Canada emphasizes the need for stablecoin regulation
On December 19, Bank of Canada employees published an analytical note on fiat-referenced crypto assets, also known as stablecoins. The note included an overview of the processes for producing and dispersing stablecoins, a list of potential hazards and advantages, and an expression of the writers’ support for additional regulation of the crypto asset.
Between the start of 2020 and the middle of 2022, the global market for crypto assets with fiat references expanded thirty-fold, reaching $161 billion in U.S. dollars. The note notes that while they are mostly employed on cryptocurrency trading platforms, they offer the potential for a wide range of other purposes, particularly when used in conjunction with smart contracts.
Despite recommendations from global standards-setting organizations, “most existing regulatory frameworks, in Canada and overseas, are not now fit for purpose,” according to the paper. It briefly described the frameworks and temporary solutions that are currently being created.
2. Next House committee chair reintroduces crypto innovation bill
Rep. Patrick McHenry of North Carolina, who will take over as chair of the House Financial Services Committee in January, has reintroduced legislation that would establish innovation offices within governmental organizations that deal with financial services.
McHenry said that he had reintroduced the Financial Services Innovation Act on Dec. 19, a measure he had previously supported in 2016 and 2019. The Act aimed to establish offices within currently operating federal financial institutions that may provide innovators, including those working with blockchain and cryptocurrencies, with a path toward regulatory clarity in the United States.
McHenry claims that businesses may register for a “enforceable compliance agreement” with the offices of organizations like the Securities and Exchange Commission and Commodity Futures Trading Commission, allowing for a legal path forward without “out-of-date or unnecessarily burdensome” laws. He said that the North Carolina regulatory sandbox program had served as the inspiration for the legislation.
The Office of the Comptroller of the Currency and other federal agencies have already made announcements about their plans to launch innovation offices with a focus on fintech. The Strategic Hub for Innovation and Financial Technology, or FinHub, was established by the SEC in 2018, and an independent office will be established there in 2020. In 2019, LabCFTC, the CFTC’s fintech research division, took a similar action.
3. Binance has increased its shareholding in Indonesian crypto asset trader Tokocrypto
According to local sources on Dec. 19, Binance has raised its ownership of Indonesian crypto asset broker Tokocrypto.
Binance CEO Changpeng Zhao (CZ), who described the transaction as having “simply injected additional funds and boosted our stake a bit,” confirmed the cash infusion in a tweet. At the exchange, adjustments are anticipated.
In 2020, Binance made its initial investment in the Indonesian firm. Tokocrypto apparently thought about launching an initial public offering in 2021, but the offering never happened.
Following its establishment in 2018, Tokocrypto became the first cryptocurrency exchange in Indonesia to be given approval by the country’s Commodity Futures Trading Regulatory Agency (Bappebti). Since then, cryptocurrency exchanges are required to have that organization’s approval. By March of this year, Bappebti had approved 17 firms.
4. Axelar releases $60M startup ecosystem program
A $60 million startup funding initiative for the proof-of-stake (PoS) blockchain Axelar was introduced on December 19 with the goal of speeding the creation of decentralized applications and protocols that can take the place of centralized exchanges. The project has the support of around 15 blockchain investors.
The project, known as the Axelar Ecosystem Startup Funding Program, was created to encourage the creation of Web3 apps that address global problems that cannot be resolved by a centralized internet. According to the business, projects must also protect digital sovereignty, security, and privacy and strive to onboard masses without creating needless friction between particular blockchains or tokens.
The money comes from the Axelar Grant Program, which began in 2022 and awarded grants to more than 50 initiatives, about 33% of which were successful in obtaining seed or pre-seed finance.
Blockchange, Chorus One, Collab+Currency, Cygni, dao5, DCVC, Divergence Ventures, Dragonfly Capital, Lemniscap, Morningstar Ventures, Nima Capital, Node Capital, North Island Ventures, Rockaway Blockchain Fund, and SCB 10X are among the blockchain investors who are supporting the program.
The program attempts to link investors and developers who are creating interchain dApps. Partners in development include Polygon, Circle, Osmosis, and Arbitrum.
5. Major cryptocurrency investment firm CoinShares has debuted trading on Nasdaq Stockholm
On December 19, the first trading day on Nasdaq Stockholm’s main market, CoinShares made an official announcement. The stock of CoinShares began trading on the exchange under the ticker CS.
For the equities of CoinShares, the most recent trading debut signifies a change of listing venue. The Nasdaq First North Growth Market, a secondary stock market for small and medium-sized businesses in Europe, was where CS shares were previously traded. In March 2021, CoinShares made its first public offering by listing its shares on the Nasdaq First North Growth Market.
The current release states that the admission of the CoinShares’ shares to trading on Nasdaq Stockholm does not involve any offering or issuance of additional shares.
The shift in trading venue, according to CoinShares CEO Jean-Marie Mognetti, is intended to highlight the company’s dedication to becoming into the “leading full-service digital asset investment and trading group.”
In March 2021, CoinShares held its initial public offering (IPO) at a set price of 44.9 Swedish kronor (SEK), or $5.3 per share. Data from TradingView show that the CS stock surged to an all-time high of 115 SEK, or $11, in April 2021 and then started to decline.
CS shares are currently selling at 21 SEK ($2), down around 2% from when they first began trading on Nasdaq Stockholm.
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