The UK is expected to introduce laws regulating stablecoins within the next few months, according to Circle’s global head of policy, Dante Disparte. Stablecoin usage has surged recently, with the market reaching a record high of nearly $170 billion in Q3 2024, pushing regulators to act.
While the European Union has already implemented its Markets in Crypto-Assets regulation, the UK has been slower to create specific rules. However, recent developments, including a proposal to classify digital assets as personal property, suggest progress is being made.
With clearer regulations, the UK hopes to capitalise on the potential benefits of stablecoins, such as faster payments and innovation in financial services, while addressing risks linked to these digital assets.
Japan’s financial regulators remain cautious about approving spot crypto exchange-traded funds (ETFs), even as other markets like the US and Hong Kong move forward with similar products. Oki Shiozawa, investment director at Sumitomo Mitsui Trust Asset Management, explained that Japan’s Financial Services Agency (FSA) is conservative and not yet ready to allow such ETFs, despite global advancements.
While Japan aims to position itself as a crypto-friendly hub, strict regulations and high tax rates have limited the growth of digital assets. Crypto gains in Japan are taxed as high as 55%, compared to the 20% tax rate for traditional assets like ETFs. Keisuke Kimura, from the Japan Cryptoasset Business Association, noted that past scandals, like Mt. Gox, have made both regulators and the public wary of crypto investments.
Despite the challenges, companies like Franklin Templeton and SBI Holdings are preparing for potential regulatory shifts, while others, like Nomura, have already launched crypto-related products for institutional investors. As global markets embrace crypto ETFs, Japan faces increasing pressure to adapt.
The Indonesian Commodity Futures Trading Regulatory Agency, known as Bappebti, has extended the deadline for crypto exchanges to secure their Physical Crypto Asset Traders licenses until the last week of November 2024. This extension is part of a revised government bill, Bappebti Regulation Number 9 of 2024, which only applies to crypto exchanges already listed as Prospective Crypto Asset Physical Traders.
Under the new regulations, crypto exchanges must establish partnerships with local government bodies and implement Know Your Transaction standards while providing trading opportunities for institutional entities. Oscar Darmawan, CEO of INDODAX, one of Indonesia’s leading crypto exchanges, welcomed the extension, stating that it will strengthen the industry by ensuring compliance with the new standards.
The revised bill also expands eligibility for digital asset trading to include legal and business entities, not just individuals. Furthermore, licensed exchanges must partner with the Directorate General of Population and Civil Registration and list on the National Crypto Asset Futures Exchange to avoid having their licenses revoked. Bappebti aims to create a robust and transparent crypto ecosystem that meets the dynamic market needs.
A new report from Aspen Digital reveals that 76% of Asia’s private wealth sector has already ventured into digital assets, with an additional 18% planning future investments. Interest in digital assets has surged since 2022, when just 58% of respondents had explored the space. The survey covered 80 family offices and high-net-worth individuals and found that most manage assets ranging from $10 million to $500 million.
Among those invested, 70% have allocated less than 5% of their portfolios to digital assets, although some increased their holdings to over 10% in 2024. Interest in decentralised finance (DeFi) and blockchain applications continues to grow, with two-thirds expressing a desire to explore DeFi, while 61% are keen on AI and decentralised physical infrastructure.
The approval of spot Bitcoin ETFs, particularly in the US and Hong Kong, has driven increased demand for digital assets. The report highlighted that 53% of investors have gained exposure through funds or ETFs, with optimism remaining high as 31% predict Bitcoin could reach $100,000 by the end of 2024.
The Ras Al Khaimah Digital Assets Oasis (RAK DAO) in the UAE is preparing to launch a new legal framework for decentralised autonomous organisations (DAOs), marking a significant step in enhancing the country’s digital asset sector. The framework, set to be discussed on 25 October, aims to clarify how DAOs can remain compliant with legal and governance requirements while providing protections for founders and members.
DAOs in the UAE will benefit from clear tax obligations and will be able to own both onchain and offchain assets. Additionally, the framework offers the ability to engage in legally binding contracts, as well as guidance on resolving disputes. The new structure is expected to attract global participants, as DAOs can be established remotely without the need for a physical presence in the UAE.
The UAE’s approach offers a cost-effective alternative to Switzerland, where setting up a DAO can cost up to $46,000. In comparison, the UAE’s framework starts at just $3,000, making it accessible to even smaller DAOs.
Grayscale, a prominent crypto asset manager, has officially filed with the United States Securities and Exchange Commission (SEC) to convert its $520 million Digital Large Cap Fund into an exchange-traded fund (ETF). The New York Stock Exchange (NYSE) submitted the request on Grayscale’s behalf in a 14 October filing. This move aims to simplify the buying and selling of shares for investors by creating a spot ETF that holds the underlying assets rather than relying on futures contracts.
Currently managing over $524 million in assets, the fund is heavily weighted in Bitcoin, accounting for 76% of its portfolio, with Ether making up 18%. The conversion comes on the heels of the SEC’s changing stance on crypto ETFs, following a favourable court ruling for Grayscale earlier this year. Previously, the SEC had rejected all applications for spot crypto ETFs, but the new developments indicate a shift in regulatory approach.
Investors have been offloading shares following the ETF conversions of Grayscale’s Bitcoin Trust and Ethereum Trust, with notable outflows recorded. Since the conversion to ETFs, Grayscale’s Bitcoin fund has seen $21 billion in outflows, while its Ethereum ETF has recorded $3 billion. Meanwhile, Grayscale continues to expand its offerings, recently adding 35 altcoins to its consideration list for future investment products.
Coinbase has filed a motion seeking partial summary judgment in its ongoing legal battle against the US Securities and Exchange Commission (SEC). The cryptocurrency exchange aims to access internal SEC documents, hoping to gain insight into the regulator’s approach toward the crypto industry. This stems from the SEC’s decision to deny requests under the Freedom of Information Act (FOIA) for crucial records on its enforcement strategies.
Coinbase, through History Associates, has been attempting to understand the SEC’s stance on digital assets, especially concerning the regulation of cryptocurrencies as securities. The SEC initially withheld documents under law enforcement exemptions but later acknowledged that these protections might no longer apply. Despite this, the regulator has delayed the document review process for three years, which Coinbase argues is unwarranted.
This motion is part of Coinbase’s broader efforts to challenge the SEC’s regulatory approach to the crypto sector, which many believe lacks clear guidelines. The case highlights the need for transparency regarding how the SEC enforces securities laws in the rapidly growing digital asset space.
US Vice President Kamala Harris is strengthening her connection with the cryptocurrency community through her “Opportunity Economy” agenda. She is set to speak with Black entrepreneurs in Erie, Pennsylvania, discussing her support for small businesses, cryptocurrency regulation, and cannabis legalisation at the federal level. The initiative aims to empower Black men by providing tools for home ownership, business creation, and wealth building.
Harris’s campaign has shifted its stance on digital assets. Once seen as part of an anti-crypto regime, her current position favours regulatory frameworks that protect crypto investors, including Black men who own such assets. Ripple co-founder Chris Larsen’s $1 million donation to her campaign signals a growing belief that Harris may work on bipartisan crypto legislation.
Despite this support, not everyone in the crypto community is convinced by her campaign’s shift. However, Harris remains focused on protecting crypto ownership rather than restricting it.
Deutsche Bank has entered a strategic partnership with Keyrock, a crypto-native market maker, to bolster its global market-making and OTC trading operations. The collaboration is set to improve settlement processes and expand Keyrock’s operations across regions like Europe, the Middle East, and Asia-Pacific. Deutsche Bank will provide multi-currency accounts and access to over 100 currency pairs, enabling Keyrock to trade efficiently and reduce settlement risks.
Keyrock CEO Kevin de Patoul welcomed the partnership, emphasising Deutsche Bank’s industry expertise and innovative approach. Kilian Thalhammer, Deutsche Bank’s Global Head of Merchant Solutions, noted that this move reflects the bank’s commitment to supporting fintech and blockchain advancements.
This partnership follows Deutsche Bank’s earlier steps into blockchain technology, including its involvement in Singapore’s Project Guardian. The bank’s proactive stance on digital assets highlights its increasing engagement with the evolving financial markets.
Alchemy Pay has announced that its Virtual Card service is now compatible with Samsung Pay, making cryptocurrency payments faster and more convenient for users. This new feature allows cardholders to connect their virtual crypto cards to Samsung Pay, adding to the previously available Google Pay option. By linking their card, users can now seamlessly pay with cryptocurrency both online and in-store at millions of global locations.
With this integration, Alchemy Pay is making digital assets more accessible to everyday shoppers, offering flexibility to spend crypto on major platforms such as Amazon, Netflix, and eBay. Cardholders simply add their Virtual Card to Samsung Pay and can start making payments immediately.
Alchemy Pay is focused on expanding its payment capabilities and plans to collaborate with major card networks like Visa and Mastercard soon. This is part of a broader strategy to enhance crypto payments for both experienced users and newcomers alike.
