Al-Khwarizmi Weekly #11: Crypto & Blockchain Weekly News Summary
Welcome to this week’s newsletter. Japan is now allowing startups to raise funds through crypto instead of stocks. The London Stock Exchange is using blockchain for traditional asset trading. Binance.US is changing its leadership and reducing its workforce. Genesis Trading is shutting down its crypto services. North Korean crypto hacks have dropped by 80%. Stay informed about these developments and more as we provide insights into the ever-evolving financial landscape. Dive in for a closer look at what’s happening.
Top Global News
Japan Plans to Enable Startups to Raise Funds Via Crypto Rather Than Stocks
Rather than stocks, Japan is now allowing companies to begin raising funds via crypto assets. This is a huge development for the country and aids in making it a leader in the crypto space in Asia after a period of stagnant growth. According to The Nikkei, a Japanese financial news site, this upgraded system is specifically designed for a type of fund called Investment Business Limited Partnerships (LPS).
London Stock Exchange Group to Establish Digital Markets Business Powered by Blockchain Technology
The London Stock Exchange Group (LSEG) plans to launch a blockchain-powered digital markets business. This innovative technology will enhance the trading of traditional financial assets. This transition was a year-long process and is now being seen as a major milestone in the traditional markets. It was emphasized by Murray Roos (head of capital markets at LSE Group) that there are no plans to offer crypto assets as it is only using blockchain technology to improve the trading of traditional securities.
Deutsche Bank Explores Crypto Custody and Tokenization in Partnership with Taurus
Deutsche Bank has partnered with Taurus, a Swiss startup that specializes in the secure storage of cryptocurrencies, to develop digital asset custody and tokenization services. The collaboration aims to enhance the quality and security of these services, providing a reliable platform for managing and safeguarding digital assets. Corporate and institutional clients will soon be able to custody their own crypto assets on the Taurus platform.
Scams & Hacks
North Korean Crypto Hacks Have Plummeted By 80%
Despite the possibility of a sudden increase, hackers in North Korea are believed to have dramatically reduced their crypto-related cybercrimes. A recent report via Chainalysis indicates that the amount of crypto stolen is down from $1.7 billion the year before. Social engineering is a main weapon in the arsenal of North Korean hackers, as users are warned to be extra vigilant with links and messages from unknown sources.
Sidekick of The Infamous Cryptoqueen Sentenced To 20 Years for Orchestrating A $4 Billion Ponzi Scheme
OneCoin has been described as “one of the largest fraud schemes ever perpetrated” in an official statement by the US Attorney’s Office for the Southern District of New York. OneCoin’s co-founder, responsible for the fraudulent cryptocurrency, has been sentenced to 20 years in a US prison. Sebastian Karl Greenwood among others accused of scamming more than $4 billion from investors. After being arrested in Thailand back in 2018, the notorious co-founder pled guilty to the charges of wire fraud and money laundering.
Other, Not Very Good, News
Genesis Trading Discontinues All Cryptocurrency Trading Services
Genesis was recently known for being directly impacted by the FTX exchange implosion. The company is now discontinuing all its cryptocurrency trading services. Initially announcing the shutting down of its U.S. desk, a spokesperson added the downfall of the international spot and derivatives trading operations too.
The CEO of Binance.US Leaves the Company While The Crypto Exchange Reduces Its Workforce By One-Third
To free up cash and create “seven years of financial runway”, Binance.US, the American arm of the world’s largest cryptocurrency exchange has announced layoffs and a reduction in workforce by one-third. Additionally, pressures from the SEC have made it a difficult year for the exchange, influencing its CEO to leave as well. Although operations are expected to remain the same, this is a major shift in the American cryptocurrency exchange market.
Tech & Regulation
Opera, An Emerging Web Browser Introduces MiniPay to Foster Web3 Adoption For African Users
Peer-to-peer stablecoin transactions through the Celo blockchain are now possible with the introduction of MiniPay by Opera. By ushering in an era of convenient and cost-effective stablecoin transactions for millions in Africa. All it takes is a mobile phone number to enjoy hassle-free financial transactions. This groundbreaking advancement harnesses the immense potential of Celo’s mobile-first architecture, setting a new benchmark for intuitive and seamless wallet experiences.
France Introduces Certification For Finfluencers For Those Who Provide Cryptocurrency Advice
The country has recently implemented a voluntary Responsible Influence Certificate for individuals involved in promoting cryptocurrencies. The Autorité des Marchés Financiers and the Autorité de Régulation Professionnelle de la Publicité (ARPP) have collaboratively developed a training module specifically designed for influencers operating within the financial sector and this is expected to apply to digital asset advisors as well.