Crypto Compass - Week 30

📈 Crypto Adoption on the Move

• US Spot Ethereum ETFs finally launching: The SEC has officially approved nine spot Ethereum ETFs, set to begin trading on July 23. This landmark decision includes funds from BlackRock, Fidelity, VanEck, and more. Even if analysts predict these ETFs could attract between $5.4 billion to $15 billion in the first six months, the first few days have been slower than expected. This move offers a regulated pathway for investors, reducing previous concerns over market volatility and regulatory scrutiny. Ethereum's exchange balances had also dropped to multi-year lows, indicating strong anticipation for the launch. Read more
• Ferrari Revs Up for Crypto Payments in Europe:  Following a successful US launch, Ferrari is expanding its crypto payment options to European dealerships. Not sure this is the most mass market use case, but it's interesting to see a Ferrari at the forefront of finance. Read more
• Toyota Considers Ethereum Integration:  In another take of blockchain in the car industry, the auto giant Toyota is exploring the possibility of incorporating Ethereum blockchain technology in the design of their Mobility-Oriented Account (MOA), holding the identity of the vehicle. Read more
• Italian Bank Issues Digital Bond on Polygon: Cassa Depositi e Prestiti SpA (CDP), an Italian state-owned bank, and Intesa Sanpaolo, Italy’s largest banking group, have successfully completed their first digital bond issuance on Polygon. This issuance is part of a broader European Central Bank (ECB) initiative to explore wholesale fiat money settlement methods on blockchain technology. Read more

⚖️ Global Regulatory Landscape Takes Shape

• India Promises Landmark Crypto Policy Paper: Indian Economic Affairs Secretary Ajay Seth announced that India will be releasing a comprehensive crypto paper in September. This paper, rather than proposing immediate legislation, will focus on initiating stakeholder consultation. Read more

• South Korea Cautious on Corporate Crypto Investment:  South Korea's financial regulator expressed caution regarding corporate investments in cryptocurrency. The regulator stressed the need for a thorough risk assessment framework to safeguard corporate interests and financial stability. Read more
• Argentina Tightens Crypto Regulations Argentina is stepping up its crypto game by requiring exchanges to obtain operating permits. This move aims to regulate the industry and protect investors. While it might impose additional hurdles for businesses, it also signals a growing acceptance of cryptocurrencies in the country. Read more
• Argentina Approves First Crypto-Capitalized Company:  In another bold move to modernize Argentina's economy and boost its appeal to foreign investors, the regulatory authorities have granted approval for companies to hold and utilize capital in Bitcoin and USDC. Read more
• Coinbase UK Fined by FCA: Coinbase's UK subsidiary was fined $4.5M by the Financial Conduct Authority (FCA) for failing to meet regulatory standards and in doing so providing e-money services to roughly 13,000 “high-risk” customers. Read more

💵 Stablecoins Take Center Stage

• Hong Kong Pushes Stablecoin Trials:  After the launch of its stablecoin sandbox in March, Hong Kong continues its exploration of stablecoins with a trial involving Standard Chartered Bank and Animoca Brands. The region’s financial regulators also released the results of a legislative proposal consultation for stablecoin issuers on Wednesday. Read more
• HKMA Offers Sanctuary for Stablecoin Issuers: With HKMA positive attitude towards stablecoins, local banks are becoming friendlier. For exemple Hong Kong virtual bank, ZA Bank, on Friday, announced the roll out of reserve bank services for stablecoin issuers. The bank noted that it is negotiating partnership with nearly 10 stablecoin firms. Read more
• Lightning Labs Eyes Smoother Stablecoin Settlements:  Lightning Labs is working on improving stablecoin settlements using the updated Taproot capabilities of Bitcoin.  This could simply make stablecoin viable on Bitcoin by increasing the efficiency and scalability of stablecoin transactions. Read more

🌏 CBDC across the globe

• Philippines Sets CBDC Launch for 2029: After an initial pilot phase, the Philippines has confirmed its plan to launch a wholesale central bank digital currency (CBDC) by 2029. Unfortunately, much like the Digital Euros, it will operate on a private payment and bank-owned settlement system, rather than on a public blockchain. Read more
• Russian CBDC Won't Be Cross-Border Ready Until 2026:  Russia's central bank digital currency (CBDC) project is not expected to support cross-border transactions until 2026, which appears to be too slow for President Vladimir Putin. Observers had anticipated that the digital ruble could serve as a tool to circumvent sanctions and reduce dependency on the US dollar. Read more
• Peru Experiments with CBDC Pilot:  Peru's central bank is partnering with Viettel Peru to pilot a CBDC program. The initiative involves collaboration with various stakeholders to ensure the system's design and functionality meet the Central Bank's requirements. This collaborative approach aims to enhance user adoption and address potential entry barriers. Read more

➕ Beyond the Headlines

• US Accounting Giant Teams Up With Crypto Company: KPMG and Cryptio have partnered to help US crypto firms adhere to GAAP compliance, establishing robust controls and accounting practices, crucial for institutional investors drawn to crypto amid rising debt and inflation. Read more

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