Alpaca Finance Institutional Newsletter #7
Developed and emerging countries alike are quietly racing to finish stress tests of CBDC programs tipping BIS (Bank of International Settlements) to provide technology infrastructure. The list includes Hong Kong, China, Thailand, UAE, Israel, Norway and Sweden. Thus, the writing is on the walls with respect to where sovereign currency issuance is headed, which is further supported by the recently leaked MiCA draft.
The most recent MiCA draft puts any digital euro issuance directly in the purview of regulatory oversight with ARTs (asset reference tokens), which are defined as any tokens that seek to provide a transfer of stable value, having been mentioned over three thousand times in the draft. NFTs and DeFi were awarded a more favorable yet cautionary update, citing both will be treated on a case-by-case basis depending on structure and scale, essentially sitting outside the scope of regulation (at least for the time being).
Amendments to the draft are held in the hands of a select few behind closed doors. Yet taking an optimistic approach to the changes thus far, there is now a light at the end of the tunnel for favorable regulation allowing for crypto companies to operate while domiciled in the EU.
News
- Industry Offers Cautious Welcome to EU’s Landmark Crypto Law MiCA
- SWIFT partners with Chainlink for cross-chain crypto transfer project
- BIS marks CBDC pilot as ‘successful’ with $22M transacted
- Israel, Norway and Sweden central banks partner with BIS to explore CBDC payments
Regulation
- FCA green lights Revolut, making no UK crypto firms operating under temporary status
- Korean authorities orders freeze of $67M of Bitcoin tied to Do Kwon
- Crypto.com scores fresh regulatory approval in France
- Interpol ‘Red Notice’ issued for Do Kwon — South Korea prosecutors
Products
- Robinhood Web3 wallet enters beta, taps Polygon as first blockchain
- UAE Ministry of Economy opens up new headquarters in the Metaverse
- MetaMask adopts custodial features for NFT-hungry institutional investors
- Algorithmic Stock Platform Delphia Debuts Digital Asset Component
Funding
- Crypto VC Pantera Capital Looks to Raise $1.25B for Second Blockchain Fund
- London-based Asset Manager Fasanara Capital Establishes $350M Crypto VC Fund
- Cardano’s Founding Entity Emurgo to Invest Over $200M to Boost Ecosystem
- Jack Mallers’ Crypto Payment Firm Strike Raises $80M
