Launch of new initiatives in stable coins, CBDCs, tokenized securities, supply chain; Guide to cryptography published for credit unions; CFTC Fine Events Market | Baker


Financial Messaging Network launches experiments in the Stablecoin sector

Through Veronica reynolds

A global messaging network used by financial institutions to send and receive financial information recently announced that it is exploring the tokenized asset market, in particular options to improve interoperability between market participants. In pursuit of this goal, the messaging network plans experiments in the first quarter of 2022 using established payment forms and central bank digital currencies (CBDCs) that will explore the ‘issuance, delivery versus payment, and redemption processes. , to support a frictionless and seamless tokenized asset market. . “Asset tokenization typically refers to dividing traditional (or digital) assets, such as stocks, bonds, and commodities, into fractions whose value matches the size of the division. According to his article on the site. Web, the messaging network notes that while the ecosystem of tokenized assets remains relatively small, it has the potential to grow to $ 24 trillion by 2027.

Stablecoin credit risks and market opportunities around stablecoin issuance could improve with greater regulatory certainty, according to a recent press release and report by a U.S. credit rating agency. Clearer regulation “could clarify the extent to which the credit profiles of stablecoin issuers diverge from traditional developed market participants in the deposit-receiving space,” the press release postulates. The statement also notes that the EU has released draft regulations calling for stablecoin issuers to be regulated like banks or electronic money institutions, with similar recommendations included in a recent US regulatory report, but that it is not clear if or when legislation to implement these recommendations will be adopted.

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Tech and Financial Firms Announce CBDC and Digital Securities Initiatives

Through Keith R. Murphy

A multinational bank and multinational tech company recently announced that they have successfully tested an end-to-end transactional lifecycle spanning central bank digital currencies (CBDCs), electronic bonds and currency settlement capability, according to a recent Press release. The test, which involved direct transactions between two CBDCs in a hybrid cloud environment, would be part of an effort to explore the possibility of a digital euro and help demonstrate how to reduce market risk and improve transaction security. between banks.

In a separate development, a digital asset trading platform announced its recent acquisition of a transfer agent registered with the Securities and Exchange Commission, according to a report. The transfer agent is said to have been instrumental in issuing and listing some of the first digital securities to qualify by the SEC, including the acquiring company’s token. According to the CEO of the company, the intention is to create a regulated global hub for digital assets, focused on the infrastructure of digital securities capital markets.

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Gold, wool and freight: global supply chains continue to embrace blockchain

Through Lauren Bass

The government of Burkina Faso is said to have partnered with a blockchain platform based in Rwanda in order to bring transparency, security and efficiency to the artisanal gold production of its country. The partnership recently exported its first kilogram of gold, for which each mining source has been independently tracked and verified along the blockchain. There are reports that the company hopes to replicate this partnership with other mineral-producing countries in sub-Saharan Africa.

On a related note, a non-profit organization in the Australian wool industry has reportedly joined forces with a London-based digital transparency company to create a proof of concept that will help trace the life course of genuine wool products. According to reports, the blockchain-based project will provide immutable records to sellers and consumers to help verify provenance and biodiversity claims made by Australian wool producers.

In related news, a multinational blockchain-based supply chain platform has reportedly entered into an exclusive deal with Pakistani customs to digitize import-export documentation of containerized goods entering and leaving the country. According to reports, technological integration will help improve the operational efficiency of legal trade and identify and deter illegal activities.

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NCUA Clarifies Crypto Guidelines For Credit Unions; Release of crypto tax report

Through Joanna F. Wasick

Late last month, the National Credit Union Administration (NCUA), a U.S. regulator overseeing credit unions, released a statement clarifying the existing authority and concluding that, subject to certain conditions being met, cooperatives Federally Insured Credit Cards (FICUs) may work with third party providers. who offer digital asset services to FICU members, including buying, selling and holding uninsured digital assets such as cryptocurrencies. The NCUA cautioned that FICUs should exercise “due diligence” and ensure compliance with all applicable laws and regulations when engaging in such crypto activity, and that FICUs should protect cybersecurity and comply with the financial consumer protection, investor protection and the fight against money laundering / terrorism. finance law. This letter follows a request for information that the NCUA released last July, in which it asked how distributed ledger technology and decentralized finance (DeFi) might affect the credit union system and how regulated entities of the NCUA could interact with these technologies and other cryptographic tools.

A leading US accounting firm recently released its 2021 annual report on global crypto taxes. As in previous reports, the 2021 report tracks the growing number of jurisdictions issuing crypto tax guidelines and uses a crypto tax index, which measures whether a particular issue is addressed by existing guidelines, to illustrate and compare the completeness of the tax guidelines. between jurisdictions. This year’s edition also includes information from more countries; covers the tax implications of several key and emerging areas such as NFT and DeFi; and discusses the impact of other notable events in 2021, including El Salvador’s adoption of bitcoin as legal tender. The report concludes by identifying areas in need of more guidance in the coming year, including guidance on how to approach decentralized Web3 business models and decentralized autonomous organizations.

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The CFTC targets the smart contract market; DOJ traces bitcoin linked to theft

Through Kayley B. Sullivan

According to a recent press release, the U.S. Commodity Futures Trading Commission (CFTC) placed an order against Polymarket, a cryptocurrency betting service, for failing to research the necessary records to offer binary options in the United States. According to the press release and the order:

[B]As of approximately June 2020, Polymarket had been operating an illegal, unregistered or unidentified facility for event-based binary options online trading contracts known as “event markets”. … Polymarket offered the public the possibility of “betting on their beliefs” by buying and selling binary options contracts linked to an event taking place in the future and likely to be resolved with “yes” or “no”, like: ETH (Ethereum) be above $ 2,500 on July 22? … Polymarket has offered more than 900 distinct event marketplaces since its inception, while deploying smart contracts hosted on a blockchain to tap the marketplaces.

As part of the settlement, the company agreed to pay a fine of $ 1.4 million, shut down its markets, and offer users reimbursement for fees the company did not record.

In the UK, the Advertising Standards Authority (ASA) recently ruled against a cryptocurrency payment and trading platform, saying the company’s ads were misleading. The ASA said the ads took advantage of consumers’ “inexperience or gullibility” and did not clarify the risk of the investment or specify the limits of buying cryptocurrency with a card. credit.

In a latest development, the US Department of Justice announced in a recent press release that it had successfully returned $ 154 million in funds that had been stolen from a large multinational electronics company after tracking that money into bitcoin. A company employee embezzled the $ 154 million and then quickly converted the funds into bitcoin. According to the press release, the FBI “was able to trace bitcoin transfers and identify that approximately 3,879.16 bitcoins, representing the proceeds of the stolen funds…

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