Welcome to Barmy’s Daily Crypto News – November 3rd, 2022
1. Meta’s NFT interface for Instagram
At its Creator Week 2022 event on Nov. 2, Instagram parent firm Meta said that the network would let its creators to produce “digital collectibles” and sell them “both on and off Instagram.”
It states that only a “small group” of American authors will be permitted to test the new capabilities, and that expansion to other nations will follow, although it makes no mention of when this will happen.
Additionally, metadata for specific NFT collections, including names and descriptions, will be retrieved from the NFT marketplace OpenSea. Support for video NFTs will also be enabled.
The bloackchain gas fees for buyers will be covered by Meta “at launch,” according to Stephane Kasriel, head of commerce and financial technology at Meta, who did not specify how long the launch timetable would be. Meta will not charge fees to manufacture or sell NFTs until 2024, he added.
NFT transactions would continue to be subject to “app store costs,” Kasriel added, alluding to Apple’s 30% commission on NFT sales, which has come under fire for being higher than the typical 2.5% charge imposed by NFT marketplaces like OpenSea.
2. Switzerland will be extending an anti-money laundering ordinance
In order to disclose some crypto transactions, the Swiss Financial Market Supervisory Authority, or FINMA, has stated it will be extending an anti-money laundering regulation that mandates identity verification.
The Swiss banking authority said in a notice dated Nov. 2 that it will enforce a $1,000 threshold for virtual currency transfers to cash or “other anonymous forms of payment,” which at the time of publishing amounted to $997. In compliance with the nation’s Anti-Money Laundering Act and its government’s Anti-Money Laundering Ordinance, the regulator, according to FINMA, made the change.
The determination of the threshold for transactions with virtual currencies drew a lot of replies, according to the regulator, FINMA. The requirement that technical measures are required to prevent the threshold of CHF 1000 from being exceeded for connected transactions within thirty days is maintained by FINMA in light of the risks and recent cases of abuse.
In response to “heightened money-laundering threats” in cryptocurrencies, the Swiss financial authorities started enforcing a reporting threshold from 5,000 to 1,000 CHF for unidentified virtual currency transactions in January 2020. The updated law and rules, which are expected to take effect in January 2023, will be extended by FINMA.
3. Dubai’s crypto regulations have been augmented and extended
On Nov. 1, the Dubai Financial Services Authority (DFSA) stated that, after a six-month transition period, its crypto token policy had taken effect in the Dubai International Financial Centre (DIFC) special economic zone. The “Regulation of Investment Tokens” introduced by the DIFC in October 2021 served as the foundation for the new regime, which is the DFSA’s second wave of laws.
With the exclusion of utility tokens, nonfungible tokens, central bank digital currencies, privacy tokens, and algorithmic tokens, crypto tokens are understood to be any token other than the previously defined investment tokens. Tokens must first go through a formal application process before they can be accepted by the DFSA for use in the DIFC. Fiat crypto tokens, often known as stablecoins, must meet extra criteria.
The new regime covers consumer protection, market integrity, custody, and financial resources for service providers, as well as anti-money laundering and countering the financing of terrorism. In a consultative paper published in March, the regulations were initially laid forth. There was a lengthy review and comment procedure for the paper.
4. First DeFi trade is carried out by JP Morgan on a public blockchain.
Decentralized finance (DeFi) on a public blockchain was successfully used by multinational financial corporation JP Morgan to complete its first ever cross-border transaction.
On Nov. 2, the trade was made possible by Project Guardian, a pilot program run by the Monetary Authority of Singapore (MAS) to “research potential decentralized finance (DeFi) uses in wholesale funding markets.
In other words, the pilot was a further step in studying how conventional financial institutions may conduct financial transactions using tokenized assets and DeFi protocols, among other use cases.
Oliver Wyman Forum, a corporate leadership forum, SBI Digital Asset Holdings, the largest bank in Singapore, DBS Bank, and other financial institutions participated in the pilot project.
Using a modified version of the smart contract code from the AAVE protocol, the deal was carried out on the Ethereum layer-2 network Polygon.
According to MAS, tokenized Singaporean Dollar and Japanese Yen deposits were used in a “”live cross-currency transaction,” along with a practice exercise where tokenized government bonds were bought and sold.
5.DeFi is used to trade FX by Singaporean bank DBS.
DBS said on November 2 that it had begun a trading test of foreign currency (FX) and government securities utilizing permissioned, or private, DeFi liquidity pools.
The project is a part of Project Guardian, an industry-spanning initiative led by the Monetary Authority of Singapore (MAS). The deal involved buying and selling tokenized Singapore government securities, the Singapore dollar, Japanese government bonds, and the Japanese yen. It was carried out on a public blockchain.
Using a fork of the Uniswap v2 protocol, Project Guardian was carried out on the Polygon mainnet, a DBS spokesman told Cointelegraph. Verifiable credentials and pricing oracles are the other two crucial implementations that must take place in order to get closer to an institutional-grade DeFi protocol, according to the spokesman.
The project has demonstrated how instant trading, settlement, clearing, and custody may all take place simultaneously when using a private DeFi protocol. According to DBS, the effort could change the way that trading is currently done by improving liquidity across a variety of financial assets and markets.
Han Kwee Juan, head of strategy at DBS, claims that the most recent Project Guardian advancements establish the groundwork for the creation of international institutional liquidity pools that will facilitate faster trading, more transparency, fewer settlement risks, and other advantages.
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