What happened this week in the world of blockchain and cryptocurrencies? The most relevant local and international events as well as appealing background reports in a concise and compact weekly review.
Selected articles of the week:
The Zug, St. Gallen and Lucerne cantonal banks have been offering services for cryptocurrencies for six months. The elephant is the next to enter the room. Zürcher Kantonalbank (ZKB) is approaching an offer for trading Bitcoin (BTC) and Ethereum (ETH), as CVJ.CH has learned. According to well-informed sources, ten state institutions are actually on the verge of launching their own crypto products. More than half of all cantonal banks are looking into the topic. ZKB’s launch, which is expected to take place this year, will make waves internationally.
The Cantonal Bank of Zürich (ZKB) is approaching an offering for trading Bitcoin (BTC) and Ethereum (ETH), CVJ.CH has learned.
SEC vs. Ripple nears settlement
In December 2020, the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and its two executives. In it, the authority accused the company of selling unregistered securities to investors. Ripple defended itself against the SEC’s lawsuit for two and a half years until a US court handed down its first judgment in July 2023. The XRP token itself was not a security, only the offering to institutional investors had violated federal law. Now the SEC is lowering its claim from USD 2 billion to USD 103 million. A settlement could be approaching.
After some setbacks in court, the SEC reduces its demand against Ripple from two billion to 103 million US dollars.
Pressure on stablecoin providers
The European Union Regulation on Markets in Crypto Assets (MiCA) was adopted in April 2024 with strong support from the European Parliament. MiCA provides a comprehensive legal framework for the crypto market in the EU. The law provides legal clarity and security. All crypto service providers must be licensed and strict identification requirements are set for transactions to combat money laundering (AML) and terrorist financing. While the majority of the package will not come into force until next year, stablecoin providers will have to comply with strict rules as early as July.
The MiCA regulation on stablecoins will come into effect as of June 30th 2024, heavily regulating stablecoins such as Tether’s USDT.
CVJ.CH Academy: Cryptocurrencies
After the emergence of Bitcoin in 2009, many people recognized the potential that lay in cryptocurrencies and the underlying blockchain technology. As a result, developers and technology enthusiasts began to create their own cryptocurrencies to address different needs and use cases. The numerous currencies that now exist fulfill a wide range of functionalities. A look at the history, technology and current applications in the CVJ.CH Academy.
Through cryptocurrencies, digital trading and payments are enabled in real time and without central instances.
Valuation of Ether (ETH)
In addition: A key challenge for investors is the valuation of cryptocurrencies such as Bitcoin or Ethereum. The valuation of Bitcoin poses particular challenges due to the lack of yield, which is why comparative valuation methods must be used. Ethereum, on the other hand, uses a Proof-of-Stake (PoS) system where validators use ETH as a “stake” to generate recurring revenue from network activity. Ethereum can therefore be valued using the discounted cash flow (DCF) method.
Ethereum, a groundbreaking platform in the crypto world, has far surpassed the traditional boundaries of…
