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German VC Funding Increases By 3% Amid Market Downturn

Despite a decline in the global blockchain market, Germany's blockchain sector showed resilience with a 3% year-on-year increase in venture capital funding, totaling $355 million across 34 deals in 2023. This growth marked an all-time high for Germany's share of global venture capital funding. The country attracted 2.4% of global blockchain funding and 2.5% of global deals, significantly higher than the previous year's figures of 0.9% and 1.9%, respectively. Within Europe, Germany secured 9.4% of blockchain funding and 10.3% of deals. This positive trend in Germany contrasts with a 62% global decline in venture capital funding and a 44% decrease in deals across all continents, which some experts attribute to a perceived lack of innovation in the blockchain space, with many existing narratives like zero-knowledge proofs, layer-2 solutions, and NFTs already having matured.

Source [1]

Sweden and Canada at the Forefront of Crypto ETPs as US Proposals Multiply

The SEC is considering approximately 30 bitcoin- and ether-related ETF proposals, including those by Franklin Templeton and Hashdex. Currently, the US hosts only four of the top 25 crypto exchange-traded products (ETPs), with Sweden's XBT Provider's Bitcoin Tracker One and Ethereum Tracker One leading the pack. These ETNs have $4.4 billion and $2.6 billion in assets, respectively. Canada is home to six of the top 25 ETPs. However, if the SEC approves more crypto ETFs, these rankings could change rapidly. The SEC's stance has historically been cautious, but recent developments suggest spot bitcoin ETF approvals may be more likely in the near future.

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South Korea's Crypto Landscape Bounces Back from Terra Incident, with Gaming Emerging as Dominant Force in Web3 Engagement

South Korea's crypto ecosystem is recovering from the Terra debacle, with a focus on gaming in the Web3 landscape. KBW featured local gaming startups specializing in various applications built on blockchain networks. While the Terra incident impacted DeFi trust, Korean banks are cautiously entering the market, and exchanges report increased trading. However, some see the blockchain gaming sector as overhyped, and the Korean crypto industry remains localized.

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In France, Crypto Content Creators Now Have the Option to Obtain a 'Responsible Influence Certificate' to Bolster Their Credibility and Reliability

France has introduced a "Responsible Influence Certificate" for financial influencers, including those promoting crypto. This non-mandatory certificate covers various investment products, including cryptocurrencies, and requires influencers to correctly answer at least 75% of 25 multiple-choice questions. While not legally binding, non-compliance can lead to certificate revocation. This comes after the French Senate allowed registered cryptocurrency firms to engage social media influencers for promotion. In contrast, the UK warns influencers about legal consequences for crypto promotions, and the European Consumer Organisation advocates a complete ban on crypto advertising by influencers.

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Lisbon: A Rising Haven for Crypto Enthusiasts in the Face of Regulatory Uncertainty in the U.S.

Lisbon is emerging as a leading hub for crypto enthusiasts, surpassing cities like New York, Berlin, and Singapore, according to the "State of European Crypto Report" by Greenfield Capital. The city's appeal is attributed to its active DeFi scene, favorable tax policies, and lower cost of living. Portugal's resident-non-habitual (NHR) status can exempt crypto income from taxes for up to a decade. Lisbon's lifestyle, blending historic architecture, rich culture, top restaurants, and a thriving tech scene, attracts expatriates. Clear crypto regulations, as provided by the Markets in Crypto-Assets (MiCA) law in the European Union, make it an attractive destination for crypto businesses and investors.

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Opera browser debuts stablecoin wallet MiniPay in Africa

Opera, a web browser, is set to launch MiniPay, a noncustodial stablecoin wallet integrated into its mobile web browser for its African user base. MiniPay, built on the Celo blockchain, will enable African users to send and receive stablecoins using their mobile numbers, targeting countries like 🇳🇬 Nigeria, 🇰🇪Kenya, 🇬🇭 Ghana, and 🇿🇦 South Africa. The wallet offers sub-cent fees, integration with local payment methods like Airtime and M-Pesa, and compatibility with Celo Dollar (cUSD) to simplify transactions for users. Opera aims to address concerns about high fees, service reliability, and access to mobile data in the region.

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German Financial Titans Provide Institutional-Grade Crypto Staking Solution with Full Insurance Coverage

Boerse Stuttgart Digital and Munich Re have joined forces to offer an insured crypto staking solution for institutional investors, focusing on minimizing "slashing risks." Boerse Stuttgart Digital Custody will expand its services to include staking, providing additional revenue opportunities for institutional investors.

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Sony Reveals Intentions for Blockchain Development

Sony Network Communications is partnering with Startale Labs to develop a blockchain, aiming to make it a fundamental component of global web3 infrastructure. The blockchain will also host blockchain-based offerings from Sony. They will establish a joint venture called Sony Network Communications Labs. Sony Network Communications has a market cap of $54 million and a history in internet services, IoT, and AI. This move aligns with mainstream companies like PayPal and Nubank embracing web3 despite the ongoing crypto market conditions. Sony and Startale previously collaborated on web3 initiatives and received a $3.5 million investment from Sony in June.

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Coinbase CEO Brian Armstrong Announces Plans for Bitcoin Lightning Network Integration

Coinbase plans to integrate the Bitcoin Lightning Network (LN) to offer faster and cheaper Bitcoin transactions, addressing the scalability challenge. This move follows community debates on the feasibility of LN integration for major exchanges. Coinbase's decision comes after a month of investigating LN integration and amidst public discussions involving figures like MicroStrategy's Michael Saylor and Square's Jack Dorsey. This development is expected to enhance affordable and efficient Bitcoin micro transactions, aligning with Binance's earlier announcement of Bitcoin LN integration for withdrawals and deposits.

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Berlin-Based Crypto Custodian Finoa to Provide Regulated DeFi Access

Berlin-based crypto custody firm Finoa is expanding its services to offer institutional clients access to regulated DeFi through FinoaConnect. Finoa received regulatory approval from the German financial watchdog BaFin earlier this year. FinoaConnect integrates with carefully curated permissioned DeFi platforms, web3 apps, and blockchain governance scenarios, serving over 300 institutional clients. This move aims to address the growing demand for decentralized applications within Web3 environments while maintaining strict security and transaction integrity standards. FinoaConnect provides a compliant entry point for traditional financial institutions to participate in DeFi with transparency and regulatory compliance.

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PayPal Introduces Feature Allowing Users to Make Payments Using Cryptocurrencies

PayPal has introduced "On and Off Ramps" a feature allowing web3 merchants in the United States to accept cryptocurrency payments from customers. It enables integration with PayPal's payment platform, offering a fast and secure way to buy and sell crypto in the US. Additionally, crypto wallet users in the US can convert their crypto to USD directly from their wallet to their PayPal balance for various financial transactions.

This feature aims to enhance the payment experience for web3 merchants and crypto users, and it's now available on MetaMask and other platforms.

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Deutsche Bank Collaborates with Swiss Crypto Company for Custodial Services

Deutsche Bank has partnered with Swiss crypto company Taurus to offer crypto custody services for institutional clients. While the bank has expressed interest in crypto trading in the past, it clarified that there are no immediate plans for it. Deutsche Bank has also applied for regulatory approval to operate as a cryptocurrency custodian in Germany. Initially, the bank plans to generate revenue through custody fees and later expand its fee structure to include charges for tokenization services and trading functionalities. The platform aims to provide services such as taxation, valuation, fund administration, lending, staking, and voting for digital assets.

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Takeaways for the Crypto Industry from AI's Success in Influencing Washington

The crypto industry should learn from AI about engaging with policymakers. Lessons include facing skepticism from Congress, dealing with public misinformation, and navigating regulatory challenges.

The AI industry should seize its advantage of bipartisan support and significant capital to shape the regulatory framework in its favor and run a public affairs campaign highlighting its benefits to everyday Americans. Rather than focusing solely on Washington, the AI industry should also engage in campaigns at the grassroots level to win lawmakers' favor in key constituencies and states.

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Jeremy Allaire of Circle Anticipates 'Significant' Stablecoin Regulation in the US That Will Benefit the Crypto Sector

Circle CEO Jeremy Allaire anticipates that the United States will introduce legislation to regulate stablecoins, providing regulatory clarity to the crypto industry. He emphasizes the importance of understanding blockchain technology as more than just fintech and encourages policymakers to recognize its broader applications beyond finance, describing it as "general-purpose internet infrastructure" Allaire believes that embracing this understanding will lead to a robust regulatory framework beneficial for the US and the digital assets industry.

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Japan Relaxes Startup Financing Rules to Accommodate Cryptocurrency

Japan is easing regulations on startup financing to promote the growth of its venture capital sector. The government plans to allow startups to access financing from venture capitalists (VCs) by offering cryptocurrency alongside traditional stocks. However, this regulatory change will primarily apply to funds investing in limited partnerships (LPs). Japan's increasing support for cryptocurrencies aligns with global efforts to accommodate the growing crypto sector, although regulators have also been enhancing compliance measures, such as enforcing the Travel Rule to combat money laundering.

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European Legislators Give the Green Light to Regulatory Initiative for Cryptocurrency Taxes

European lawmakers have approved the DAC8 directive, granting tax authorities the authority to oversee and regulate cryptocurrency transactions within the European Union (EU). The directive received overwhelming support, with 535 votes in favor, 57 against, and 60 abstentions. DAC8 will utilize reporting standards from the Crypto-Asset Reporting Framework (CARF) OECD format and align with the MiCA standards. The directive, proposed by the European Commission in December 2022, aims to create a reporting framework for crypto-asset service providers to monitor transactions conducted by their EU clients. The EU continues to work on comprehensive crypto regulation, including the Markets in Crypto-Assets (MiCA) legislation.

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CFTC Commissioner Aims to Enhance Investor Protection Through Technological Advancements

United States Commodity Futures Trading Commission (CFTC) Commissioner Christy Goldsmith Romero has proposed modernizing investor protection with technology. She emphasized the need for regulators to keep up with technology advancements to safeguard American investors effectively. Romero appointed technology experts in fintech, AI, cryptocurrency, blockchain, and cybersecurity to the CFTC’s Technology Advisory Committee (TAC). The TAC's responsibilities include finding ways to implement Know Your Customer (KYC) and Anti-Money Laundering (AML) processes in decentralized finance and crypto and promoting responsible AI development. Romero also suggested the creation of a National Financial Fraud Registry to centralize records related to financial fraud.

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Founder of Atari Believes Play-to-Earn Games Are a Source of Discontent Among Traditional Gamers Towards Crypto

Nolan Bushnell, founder of Atari, believes the gaming community's disdain for crypto and NFTs is rooted in the rise of play-to-earn games. He argues that good gamers dislike grinding and that play-to-earn games depend on the "greater fool theory" Bushnell sees the future of Web3 gaming shifting away from play-to-earn dynamics toward building immersive virtual worlds using virtual reality and augmented reality. He also highlights three key blockchain benefits for gaming: secure fund transfers, smart contract utility, and secure storage of digital assets.

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DeFi As a Perspective During Times Of Crisis

Cryptocurrencies like Bitcoin have emerged as solutions to the challenges posed by the traditional banking and monetary system, offering self-custody, efficiency, and protection against inflation. Central Bank Digital Currencies (CBDCs) may offer some benefits but are still highly centralized and lack several key advantages of cryptocurrencies. To achieve mass adoption, the decentralized finance (DeFi) community should focus on improving user experience, educating users, and expanding DeFi applications.

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Web3 Should Forever Stay Youthful

Web3's childlike playfulness and nostalgia are key factors in its potential for mainstream adoption. Projects like Pudgy Penguins tap into nostalgia and creative storytelling to onboard people into Web3. As adults increasingly engage in childlike leisure activities, Web3's playful essence and focus on experience over technicality make it a playground for growth. Gamified elements, collectibles, and immersive experiences in Web3 attract both brands and a fresh wave of consumers, contributing to its appeal and potential for adoption.

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The Web3 Revolution: How the Digital Wallet Became the New Marketing Treasure

The cookie-less internet opens doors for Web3 and user-owned digital wallets to prioritize privacy in consumer-brand relationships. Increasing customer acquisition costs, the end of third-party cookies, privacy concerns, and regulations drive brands to seek efficient and personalized engagement methods. Digital wallets offer direct connections, privacy, diverse utility, and long-term engagement, making them ideal for brand interactions in Web3. Brands should adopt open, non-custodial wallets to build trust and enhance engagement in this evolving landscape.

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Guidance for Web3 Projects: Your Reputation Holds as Much Weight as Your Financial Resources

In Web3, reputation equals wealth. To build a positive reputation, focus on transparent communication during challenges, engage with the Web3 community via various channels, and form strong partnerships with industry leaders. A good reputation is essential for trust in decentralized technology, so invest in strategic communication and marketing teams for effective reputation management.

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