Calea Digital meticulously selects news that we believe has the most significant impact on the Blockchain & Web3 trends ecosystem based on a set of well-defined criteria. Our aim is to highlight developments that not only demonstrate the innovative strides being made within the space but also to provide insights into how these advancements can redefine the technological, economic, and social landscapes. We prioritize stories that showcase groundbreaking applications of blockchain technology, notable shifts in tokenomics and governance models, and major regulatory or legal milestones that might influence the framework within which these technologies operate. By focusing on these key areas, we ensure our audience is informed about the most consequential changes shaping the future of decentralized systems and digital assets.
Below, we summarize the most important news from the blockchain and cryptocurrency sector over the past week, explaining the news, highlighting the key points and outlining conclusions and next steps.
BTC news
National Bank of Bahrain Launches Its First Bitcoin Investment Fund
The National Bank of Bahrain, in collaboration with ARP Digital, has announced the launch of its first-ever Bitcoin investment fund aimed at institutional investors within the Gulf Cooperation Council (GCC) region. This groundbreaking fund aims to offer these investors a unique opportunity to gain exposure to Bitcoin, including mechanisms for maximizing returns while minimizing potential losses.
Key Points:
The fund is designed specifically for institutional investors in the GCC, aiming to provide controlled exposure to Bitcoin.
It includes a set maximum return limit and loss protection to attract cautious investors looking for exposure to digital currencies.
Bahrain's initiative to create a welcoming regulatory environment for cryptocurrency and fintech innovation is part of a broader strategy to position itself as a leading digital asset hub in the region.
The move by the National Bank of Bahrain reflects a growing trend in the Middle East and North Africa (MENA) region towards adopting digital currencies, supported by significant institutional interest and regulatory advancements, particularly in the UAE and Saudi Arabia.
The launch of this Bitcoin investment fund is likely to encourage further institutional investment in the cryptocurrency sector within the Gulf region. It may also prompt other financial institutions in the GCC and MENA region to explore similar digital asset investment opportunities. Additionally, this initiative could accelerate the development of a regulatory framework across the region, fostering further innovation and investment in the fintech and cryptocurrency sectors.
HBO ‘reveals’ identity of alleged Bitcoin creator: Peter Todd
This article delves into the bombshell announcement by an HBO documentary, which names Peter Todd, a well-known cryptography and Bitcoin expert, as the elusive Satoshi Nakamoto, Bitcoin's pseudonymous creator. It explores Todd's background, his contributions to the cryptocurrency world, and the implications of this revelation.
Key Points:
Revelation Source: The HBO documentary cites undisclosed sources and evidence that led them to identify Peter Todd as Satoshi Nakamoto.
Peter Todd's Background: The article gives an overview of Todd's career, highlighting his early interest in cryptography, his significant contributions to Bitcoin's development, and his stance on privacy and security.
Community Reaction: Responses from the cryptocurrency community vary, with some expressing skepticism about the claim, while others consider the evidence presented by HBO compelling.
Impact on Bitcoin: Speculation on how this revelation could affect Bitcoin's perception, its principles of anonymity and decentralization, and the future development of the cryptocurrency.
Todd's Response: The article mentions Peter Todd's response to the claims, stating whether he denies or confirms the documentary's findings.
The piece concludes with a call for more in-depth research and verification of the claims made by the HBO documentary.
It suggests that the cryptocurrency community and larger public should keep a close eye on the developments and prepare for potential impacts on the market and on blockchain technology's perception.
Spain news
BBVA and Visa boost financial tokenisation on Ethereum
Visa has launched the Visa Tokenized Asset Platform (VTAP), a tool designed to help banks integrate fiat money tokenisation into Ethereum. BBVA has been testing this technology for the past year and plans to launch a pilot in Europe in 2025.
Key points:
Fiat money tokenisation: VTAP enables the issuance, burning and transfer of fiat currency-backed tokens (stablecoins and tokenised deposits) with easy integration into banking services.
Smart Contracts and Programmability: The platform enables the use of smart contracts, allowing the automation of credit lines, collateral generation and real-time settlements.
Interoperability: VTAP facilitates the connection between different chains, paving the way for the widespread adoption of tokenisation in the banking sector.
After a year of testing, BBVA has issued and transferred tokens internally, using Ethereum as the basis for interacting with smart contracts.
The next step will be to launch a pilot with customers, where tokenisation of fiat money (either through stablecoins or tokenised deposits) is expected to play a key role in the evolution of the financial sector.
Madrid Region to Launch Spain's First Blockchain Network in 2025
Announced by the Madrid government's digitalization counselor, Miguel López-Valverde, at the Merge Madrid Conference, the Madrid region plans to spearhead the development of Spain's inaugural Blockchain Network by 2025. This ambitious project aims to position the region as a leader in blockchain services, intending to provide necessary logistics for innovation in key sectors like finance, automotive, and logistics, while also enhancing citizen access to public services.
Key Points:
The Madrid Blockchain Network is aligned with the European Blockchain Services Infrastructure (ESBI), indicating its role in a broader European context.
This initiative will coexist with Alastria, an existing blockchain network initiated in 2017 by major Spanish companies and institutions for creating digital representations (tokens) of assets.
A Blockchain Cluster was established by the Madrid region in April 2022, involving leading institutions and companies such as Banco Santander, Repsol, and Telefónica. This cluster supports the promotion and implementation of blockchain technology among its members and the broader community.
While the creation of the Madrid Blockchain Network is a significant milestone, further details on the implementation and operational facets of the network are awaited. The initiative is likely to foster collaboration within the existing blockchain ecosystem, including Alastria and the blockchain cluster, potentially setting a precedent for blockchain infrastructure and innovation in Spain and possibly Europe.
MiCA Law news
European banks prepare to trade crypto after 1 January
European banks are gearing up for the implementation of the MiCA (Markets in Crypto-Assets) legislation, marking a significant step toward the regulatory framework for digital assets within the EU. This move is seen as a preparation to embrace the evolving crypto market, ensuring compliance, and enhancing consumer protection against the volatility and risks associated with crypto investments.
Key points:
The framework unifies the regulation of crypto-activities within Member States.
The framework is expected to encourage responsible innovation and protect consumers.
Coinbase withdraws Tether due to new MiCA law
Coinbase is set to remove USDT (Tether) from its European services following the implementation of the EU's MiCA regulations, which impose strict conditions on stablecoins— conditions that Tether has failed to meet.
Key points:
These include the requirement to be authorized as a financial entity within the EU and concerns over the transparency and sufficiency of Tether's reserves, with a specific stipulation that 30% of stablecoin reserves be kept in European banks, a criterion Tether does not fulfill.
This move by Coinbase to drop USDT aims to comply with regulations and avoid potential sanctions, prompting users to transition to other compliant stablecoins like USDC.
This action highlights Coinbase's alignment with regulatory measures, albeit at the expense of narrowing user options, steering the market towards greater stability and protection.
Other news
The United Arab Emirates eleminates VAT on crypto transactions.
The United Arab Emirates has announced the removal of Value Added Tax (VAT) on Bitcoin and other digital asset transactions, applying this change retroactively from January 1, 2018. This policy shift aims to reduce operational costs for cryptocurrency businesses and investors, aligning with the UAE’s goal to foster a supportive environment for digital currency innovation and financial technology advancements.
Key Points:
The VAT exemption applies to digital asset transactions starting from November 15, 2024.
Businesses and investors can amend VAT payments retroactively from 2018.
This move positions the UAE as a forward-looking player in the global financial technology landscape.
The exemption is part of the UAE's broader vision to become a central hub for global innovation in finance and technology, enhancing its appeal to international stakeholders.
Building on this policy change, the UAE plans to further develop its regulatory infrastructure for digital assets. This includes fostering innovations, enhancing investor confidence, and strengthening the country's role as a global and regional leader in technology and financial markets. The goal is to accelerate the adoption of digital assets worldwide and attract more international investment and talent to the UAE.
47% of hedge fund managers trading in traditional markets have exposure to cryptocurrencies
A recent survey conducted by the Alternative Investment Management Association and PwC highlights a significant trend among hedge funds, showing nearly half of those focused on traditional asset classes now have cryptocurrency exposure. This uptick, from 29% in 2023 to 47% in 2024, is attributed to clearer regulations and the advent of crypto exchange-traded funds (ETFs) in the U.S. and Asia. The survey also reveals a strategic shift towards more sophisticated trading approaches, including derivatives, and highlights the growing confidence in the crypto market due to regulatory clarity.
Key Points:
47% of traditional market hedge funds now invest in digital assets, an increase from previous years.
Of these, 67% plan to keep their crypto investments stable, while others seek to increase them by the end of 2024.
There's been a pivot from spot market trading to more complex strategies, like derivatives trading, indicating an evolution in investment approaches within the sector.
Regulatory clarity is identified as a key confidence booster for hedge funds engaging with cryptocurrencies.
Despite the opportunities, a notable portion of hedge fund managers remains skeptical about entering the crypto market, with 76% of non-investors indicating no plans to invest in the coming years.
The survey showed a resistance to integrating Bitcoin ETFs into digital-asset strategies among two-thirds of traditional hedge funds.
As the landscape of digital asset investments continues to evolve, it appears hedge funds that are currently invested or considering investment are likely to delve deeper into the market, employing diversified strategies. However, the stagnant stance of a significant chunk of hedge fund managers towards cryptocurrency investments suggests ongoing reservations about the asset class's stability and long-term viability.
Ripple vs. SEC Update: Ripple Labs Files Cross-Appeal in Ongoing Legal Battle with SEC
Ripple Labs has taken a significant step in its ongoing legal feud with the U.S. Securities and Exchange Commission (SEC) by filing a notice of cross-appeal. This move is aimed at bringing the dispute to the attention of the United States Court of Appeals for the Second Circuit. The cross-appeal intends to challenge the decisions made in an earlier ruling on August 7, where Ripple was ordered to pay a $125 million civil penalty for violating securities laws.
Key Points:
Ripple's cross-appeal, filed on October 10, seeks to address both the SEC's initial appeal (filed on October 2) and its own counterclaims regarding legal and procedural errors in the previous decision.
The legal confrontation originated in 2020 following the SEC's allegations against Ripple for conducting an unregistered securities offering through the sale of its cryptocurrency token, XRP.
In July 2023, Judge Analisa Torres provided a mixed decision stating that while Ripple's sales of XRP to institutional investors violated securities laws, its programmatic sales and distributions to the general public, employees, and developers did not.
Ripple's Legal Director, Stuart Alderoty, highlighted that the SEC lost on essential points and confirmed that they would not appeal the decision classifying XRP as not being a security, mocking the SEC's apology in another case for suggesting a token could inherently be a security.
The cross-appeal and the SEC's appeal revolve around finding legal clarifications, including the interpretation of the Howey test for determining what constitutes an investment contract under U.S. securities law.
Both parties are expected to present further arguments in the coming weeks following their respective filings for the appeal and cross-appeal.
The timeline for these legal proceedings remains uncertain, and it is unclear if the SEC will focus solely on challenging the imposed penalties on Ripple or if it will also continue contesting the broader ruling regarding XRP's status.
Biography
https://btctimes.com/national-bank-of-bahrain-launches-its-first-bitcoin-investment-fund/
https://www.expansion.com/empresas/banca/2024/10/04/66fee19de5fdeaaf1b8b4575.html
https://www.iproup.com/economia-digital/50390-los-bancos-europeos-se-preparan-para-la-ley-mica
https://www.coindesk.com/policy/2024/10/07/uae-exempts-crypto-transactions-from-value-added-tax/
Ripple Labs Files Cross-Appeal as Battle With SEC Rages On - Decrypt
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