The London Stock Exchange has detailed the process for admitting Crypto Exchange Traded Notes (ETNs) to its trading platform. ETNs are debt securities that provide exposure to an underlying asset, and in this case, Crypto ETNs track the performance of cryptoassets like Bitcoin or Ethereum.
For the admission of Crypto ETNs, the London stock exchange has established specific criteria to protect the reputation and integrity of its markets. Firstly, the proposed Crypto ETN must be physically backed and not leveraged. Secondly, it must have a reliable and publicly available market price or value measure for the underlying asset. Lastly, the underlying cryptoassets must be Bitcoin or Ethereum.
Regarding the custody of the cryptoassets, they must be held in “cold storage,” meaning offline depositary wallets. If alternative arrangements are used instead of cold storage, the issuer must obtain an audit report from a qualified third party. The custodians holding the cryptoassets must also comply with Anti-Money Laundering (AML) regulations in the United Kingdom, European Union, Jersey, Switzerland, or the United States.
To facilitate a smooth admission process for Crypto ETNs, the London stock exchange encourages early engagement from prospective issuers. Issuers can admit up to three different currency lines for each Crypto ETN. These lines can be applied for simultaneously with the main currency line or at a later stage. The required documentation for multi-currency lines is similar to that of the standard line, except for the prospectus/pricing supplements.
The European Commission has imposed a first-time fine of 1.8 billion euros ($1.95 billion) on Apple for restricting Spotify and other music streaming services from offering alternative payment options outside its App Store. This verdict follows Spotify’s 2019 complaint concerning these limitations and Apple’s 30% App Store fees.
The EU competition authority deemed Apple’s restrictions as unfair trading practices. Margrethe Vestager, EU antitrust chief, explained how Apple exploited its market dominance for a decade by limiting developers from suggesting cheaper music services outside the Apple ecosystem, a violation of EU antitrust regulations. Apple is instructed to eliminate App Store constraints, aligning with requirements from the new Digital Markets Act (DMA), which Apple must comply with by March 7.
Apple expressed its intent to contest the EU’s decision in court, stating the ruling disregards the lack of credible proof of consumer harm and overlooks a flourishing and competitive market. The company further remarked that Spotify, the primary proponent and benefactor of this decision, holds the world’s largest music streaming app and has engaged extensively with the European Commission.
South Korea’s Personal Information Protection Commission (PIPC) has launched an investigation into cryptocurrency project Worldcoin following numerous complaints about its collection of personal information. Of particular concern is the project’s use of iris scanning in exchange for cryptocurrency. The PIPC announced on Monday that it will examine company’s collection, processing, and potential overseas transfer of sensitive personal information, and will take action if any violations of local privacy rules are found.
It is worth noting that OpenAI, which co-founded Worldcoin, was fined last year by the privacy watchdog for leaking personal information of South Korean citizens through its ChatGPT application. This connection with OpenAI adds weight to the concerns surrounding the handling of personal data by Worldcoin.
Worldcoin is an identity-focused cryptocurrency project. Participants in the protocol receive WLD tokens in return for signing up. The project’s unconventional sign-up process has also raised concerns in other jurisdictions. As of now, company has not responded to the investigation or the accusations.
China’s Supreme People’s Procuratorate (SPP) is ramping up efforts to combat cybercrime by targeting criminals who use blockchain and metaverse projects for illegal activities. The SPP is alarmed by the recent surge in online fraud, cyber violence, and personal information infringement. Notably, the SPP has observed a significant rise in cybercrimes committed on blockchains and within the metaverse, with criminals increasingly relying on cryptocurrencies for money laundering, making it challenging to trace their illicit wealth.
Ge Xiaoyan, the Deputy Prosecutor-General of the SPP, highlights a 64% year-on-year increase in charges related to cybercrime-related telecom fraud, while charges linked to internet theft have risen nearly 23%, and those related to online counterfeiting and sales of inferior goods have surged by almost 86%. Procuratorates have pressed charges against 280,000 individuals involved in cybercrime cases between January and November, reflecting a 36% year-on-year increase and constituting 19% of all criminal offenses.
The People’s Bank of China (PBoC) acknowledges the importance of regulating cryptocurrency and decentralized finance in its latest financial stability report. The PBoC emphasizes the necessity of international cooperation in regulating the industry.
Despite the ban on most crypto transactions and cryptocurrency mining, mainland China remains a significant hub for crypto-mining activities.
Czech company based in the UK, collected the US consumers’ browsing information using browser extensions and antivirus software, according to the FTC complaint. The collected data included details about users’ web searches, visited webpages, religious beliefs, health concerns, political leanings, location, financial status, and visits to child-directed content. This information was stored indefinitely and sold to third parties without adequate notice or consent.
The FTC also argues that Avast deceived users by falsely claiming that its software would safeguard their privacy and block third-party tracking. Company failed to sufficiently inform consumers that it would sell their detailed, re-identifiable browsing data. The data was sold to over 100 third parties through Avast’s subsidiary, Jumpshot.
In addition to fine, Avast and its subsidiaries will be prohibited from misrepresenting their data usage practices. Under the proposed order, Avast is required to delete the browsing information transferred to Jumpshot and any products or algorithms derived from that data.
The company must also notify consumers whose browsing information was sold without consent about the FTC’s actions. Furthermore, they will be required to implement a comprehensive privacy program to address the misconduct highlighted by the FTC.
Waymo’s application to expand its robotaxi service in Los Angeles and San Mateo counties has been suspended for 120 days by the California Public Utilities Commission’s Consumer Protection and Enforcement Division (CPED). Company can still operate driverless vehicles in San Francisco, but further expansion is on hold until June 2024. According to the CPED, the application has been suspended for additional staff review.
Waymo clarifies that this suspension is a standard procedural step in the CPUC’s thorough review process. However, David J. Canepa, Vice President of the San Mateo County Board of Supervisors, contends that Waymo has failed to engage in meaningful discussions about expanding into Silicon Valley, prompting the CPUC to suspend the application. Canepa sees this as an opportunity to address genuine concerns regarding public safety.
Waymo currently operates a commercial service round-the-clock in San Francisco and is permitted to offer free driverless rides in certain parts of Los Angeles. In January, Waymo submitted a document to the CPUC’s Consumer Protection and Enforcement Division, seeking approval of its updated safety plan and an expansion areas where its robotaxi vehicles can operate.
Various entities, including the city of South San Francisco, the Los Angeles County Department of Transportation, and the San Francisco Taxi Workers Alliance, have expressed opposition to Waymo’s expansion plans.
During a crypto event in London, the UK’s Economic Secretary to the Treasury Bim Afolami stated that the government is working intensively to ensure the new legislation regulating stablecoins and crypto staking. However, no specific details about the regulations were provided due to the ongoing developments in the field.
In 2022, UK Prime Minister Rishi Sunak pledged to establish the country as a global crypto hub, emphasizing the need for crypto firms to be able to invest, innovate, and scale up within the UK. Progress on implementing clearer regulations has been slow, despite calls from cryptocurrency firms for more concise rules.
The UK Law Commission published recommendations in July 2023 suggesting conducting a common law analysis of crypto assets and establishing an industry-specific panel consisting of technical experts, academics, and legal practitioners to advise courts on crypto-related legal matters.
On October 30, 2023, the UK government announced plans to introduce more crypto-specific regulations in 2024. This includes bringing the regulation of fiat-backed stablecoins under the purview of the Financial Conduct Authority (FCA).
In its statement, the SEC stated that the granting of the bitcoin ETF does not mean that the SEC is promoting the cryptocurrency and called for individual investors to be cautious when they invest in digital assets.
What is the exchange-traded fund?
Invented back in the 1990s, exchange-traded funds are baskets of bonds or other assets that are usually managed by the leading financial investment firms. They can be traded on the stock exchanges and, therefore, realise gains and losses from trading. They are invented as a platform for the individual investors to participate. By investing in several assets and diversifying its portfolio, individual investors reduce the chance for significant losses.
Why is the bitcoin exchange-traded fund important for digital assets?
Considering that cryptocurrency use and safe storage still require certain technical knowledge, the ETF offers the opportunity for individual investors to invest directly in the cryptocurrency markets without the risk associated with cybersecurity. The bitcoin exchange-traded fund opens the way to invest in digital assets managed by professionals. From eleven companies that applied for the SEC approval, there are some Wall Street financial giants such as BlackRock or Van Eck but also a new wing of the crypto and innovative tech industry such as Fidelity or Ark Investments. Together, they manage hundreds of billions of dollars that will now be exposed to the cryptocurrency market. The ETF will follow the spot price of the bitcoin cryptocurrency, and may benefit the price stability of bitcoin. It will also serve as a safeguard for individual investors from the industry known for its many blunders
The SEC announcement comes one day after the security incident related to their X account. In the alleged hack, shared content was news that the SEC approved spot bitcoin exchange-traded fund. Was this a message that went public by accident or mistake from the account holders? Or was it a malicious act from the third party to undermine the government agency? Answering this question will be the primary purpose of the FBI investigation announced yesterday by the Securities and Exchange Commission
The Australian Treasury has initiated efforts to further fine tune regulation around cryptocurrency. It has published a consultation paper titled “Regulating digital asset platforms” to outline its approach. Instead of creating new rules specifically for cryptocurrencies, the regulation of crypto exchanges will be carried out under existing financial services laws.
The main focus of this regulatory framework is to oversee and regulate cryptocurrency exchanges and service providers, rather than individual cryptocurrencies or tokens. The Australian Treasury is considering making it mandatory for crypto exchanges to obtain a financial services license from the local financial regulator. These proposed rules will only apply to crypto exchanges holding more than $3.2 million ($5 million AUD) or more than $946 ($1,500 AUD) per individual.
Why does it matter?
With a quarter of Australians owning some sort of cryptocurrency, the treasurer, Jim Chalmers, stated that they are taking swift and systematic action to create a regulatory framework that balances consumer protection with the promotion of innovation in the digital asset industry.
Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending regulations. The EU market rules for crypto-assets
Crypto-assets are one of the main applications of distributed ledger technology. Crypto-assets are digital representations of value or of rights that have the potential to bring significant benefits to market participants, including retail holders of crypto-assets. Representations of value include external, non-intrinsic value attributed to a crypto-asset by the parties concerned or by market participants, meaning the value is subjective and based only on the interest of the purchaser of the crypto-asset.
