What has been happening around Blockchain Technology and Cryptocurrencies this week? The most relevant local and international developments as well as appealing background reports in a pointed and compact way in retrospect in our weekly review.
U.S. financial services providers of digital assets are pushing to go public. Circle's targeted IPO brings members of the "USDC" central consortium to the public market. The second-largest stablecoin pegged to the U.S. dollar, which is jointly managed with crypto exchange Coinbase, has surged in popularity. USDC is currently the eighth largest cryptocurrency by market capitalization. Among stablecoins, its market value is second with $26 billion, after Tether (USDT) with $62 billion. The trusted digital currency pioneer expects the current USDC market cap to grow sevenfold by 2023, with the business valued at $4.5 billion.
Crypto Valley Venture Capital (CV VC) started early to establish a local ecosystem for startups. Today, the venture capitalist is an integral part of the Swiss crypto industry. At the end of May, the firm closed a 13 million Swiss franc funding round. With the new capital, CV VC aims to further expand its startup portfolio. So far, the venture capitalist has invested in 27 blockchain startups from Switzerland, Europe, the Americas and Africa. Through a branch office in Cape Town, CV VC is pushing for geographic expansion. The project is supported by the Swiss government (SECO & EDA) and aims to drive the innovation hub on an international scale.
In the past, the German financial regulator (BaFin) emphasized its concern about the volatile nature of the crypto market. Now, the authority has granted institutional funds permission to invest a portion of their portfolios in crypto assets. While the regulator still advises caution when dealing with cryptocurrencies, the new development is meant to show recognition of the growth of the emerging financial technology. In addition, German lawmakers last month allowed companies to launch blockchain-based debt securities. These measures are helping the DACH region to become a leading innovation hub.
The largest crypto exchange Binance has recently come under scrutiny by regulators from several jurisdictions. This included warnings in the Cayman Islands, the Canadian province of Ontario, South Africa and Japan. The UK regulator also noted that Binance Markets Limited "is not authorized to carry on a regulated activity in the UK." The nation has banned crypto derivatives providers for some time. Major UK bank Barclays recently blocked deposits to the crypto exchange "to protect" its 24 million customers. This step was very critically commented on social media channels by a part of the clientele.
In addition: Growing interest in cryptocurrencies has motivated the Philippine Stock Exchange (PSE) to adopt digital currencies as an asset class. PSE aims to become the primary trading platform for crypto assets in the country. According to the exchange, the requirements are in place in terms of security measures and investor protection. The decision of the regulator remains to be seen. The government has stepped up its efforts in the crypto space in the past with the aim of encouraging innovation while limiting risks for potential investors. In addition, the Philippine central bank announced that it would treat all crypto transactions as remittance services. The central bank is also not averse to the introduction of a central bank digital currency (CBDC).
Selected articles in the weekly review:
Another U.S. based crypto firm is aiming to go public.
https://cryptovalleyjournal.com/hot-topics/news/usdc-issuer-circle-announces-ipo/
With the support of the State Secretariat for Economic Affairs (SECO) and the Federal Department of Foreign Affairs (DFA), venture capital provider CV VC is expanding internationally.
The trend towards a recognized asset class in Germany continues.
The world's largest exchange operator for cryptocurrencies is facing a stiff regulatory breeze from several jurisdictions.
The nation experienced a wave of new crypto adopters and aims to regulate the asset class uniformly.
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