LATERALUS NWSLTR

🌐 Global Regulators Tighten Their Grip on the Crypto Industry

• Regulators worldwide, including in Hong Kong, Europe, and the United States, are actively seeking to enhance oversight and control over digital assets.

• Recent regulatory actions include proposing guidelines for assessing management members in crypto firms, requiring banks to disclose quantitative and qualitative data on crypto exposures, designating cryptocurrency mixing as a primary money laundering concern, and imposing restrictions on certain digital currency products, making them available only to professional investors.

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🇺🇸 US Official Affirms Military Worries About China's Use of Cloud Technology

• The situation involves rising tensions between the United States and China, with the U.S. expressing concerns about China's access to cloud-based technologies, similar to the restrictions it has applied to artificial intelligence (AI) chips.

• As a result, the U.S. is considering measures to control China's access to cloud technology to prevent its use in areas such as military logistics, radar, and electronic warfare capabilities. The U.S. Department of Commerce recently strengthened export controls on AI chips, which has led to uncertainties about potential bans on cloud computing technology access. Discussions between the U.S. and China on export restrictions may be further complicated by recent developments in the South China Sea.

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🏛 MiCA's Potential Impact on Crypto Adoption Hinges on U.S. Legal Cases

• The global crypto industry has low adoption rates, and recent high-profile collapses have contributed to a "wild west" narrative around crypto. There's a growing need to improve the industry's reputation and appeal.

• MiCA, the EU's regulatory framework, aims to make crypto companies more transparent and accountable with requirements like record-keeping, trade transparency, and security measures. While MiCA is seen as a step toward wider adoption, outcomes of U.S. crypto enforcement cases also play a crucial role in shaping the industry's future.

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🇹🇷 Turkey's 2024 Vision Emphasizes Digital Asset Regulation Priorities

• Turkey is introducing detailed regulations for asset security in the 2024 Presidential Annual Program, in response to the surge in crypto investors due to high inflation. More than half of Turkish citizens now view digital currencies as a hedge against economic challenges.

• The Turkish government is aiming to legally categorize digital assets and establish regulatory norms for cryptocurrency exchanges. This shift in legislation is influenced by past cryptocurrency exchange crises, such as the Thodex debacle in April 2021, where over 400,000 patrons faced the loss of deposits totaling $2 billion.

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⛓️ Chainalysis Report: Declining U.S. Oversight in the Stablecoin Market

• The US government's ability to oversee the stablecoin market is diminishing, with most stablecoin inflows shifting from US-licensed companies to non-US-licensed ones since March. In June, 54.6% of stablecoin inflows to the 50 largest crypto service providers went to non-US licensed exchanges.

• Non-US-issued stablecoins have recorded higher transaction volumes than US-issued stablecoins since March, reflecting the trend of decreasing US oversight. This shift comes despite the fact that over 90% of stablecoin activity is linked to stablecoins pegged to the US dollar.

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🇯🇵 Japan Takes the Lead in Crafting Stablecoin Regulations

• Japan introduced a stablecoin law in June, becoming a trailblazer in stablecoin regulation. This law aims to address concerns about the backing of stablecoins by real-world assets. While Japan's regulations show that stablecoin oversight is possible, they also highlight the complexity of the task. Launching stablecoins in Japan will not be quick, with the first ones likely to launch in June of the following year at the earliest.

• Japanese regulations require domestic stablecoins to have 100% of their backing assets held in a trust in Japan. This helps ensure asset security but presents a challenge for issuers looking to generate profits. Striking a balance between security and profitability in the stablecoin space remains a challenge, and Japan's experience can serve as a model for other jurisdictions navigating these issues.

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🇳🇬 Nigeria's Inclusion of Fintechs in Expanded Official Currency Market

• Nigeria plans to broaden its official currency market to include legitimate participants, such as financial technology companies and bureaux de change.

• The government is considering making trading on the foreign currency parallel market illegal. The country is expecting $10 billion in foreign currency inflows in the coming weeks. The Nigerian currency, the naira, fell to 1,215 naira for every dollar on the parallel market, while the official exchange rate was 1:795. A lack of liquidity is contributing to the naira's depreciation.

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🇹🇼 Taiwan Initiates Crypto Regulation with Introduction of Digital Asset Bill in First Reading

• Taiwan introduced a crypto bill, the Virtual Asset Management Ordinance Draft, aimed at defining virtual assets and setting operational standards for asset operators in the country. This step comes after the collapse of crypto exchange FTX and amid growing interest in the sector.

• The bill, while not taking a strong position on derivatives or stablecoins, opens the possibility for crypto derivative-specific regulation and focuses on separating customer assets from business funds. It mandates operators to commission periodic reports from accountants and allows regulatory inspections. Stakeholders in Taiwan's crypto industry welcome regulatory oversight, and a second reading of the bill is pending.

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🎮 Bandai Namco Executive Predicts Blockchain to Become the Norm in Asian Gaming

• In Asia, there is a more favorable attitude toward Web3 and blockchain gaming, with less stigma compared to the Western market.

• This difference in perception has led to increased activity in blockchain gaming in Asia, with more major publishers in Japan and Korea actively developing blockchain games, particularly in the mobile gaming sector.

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🏪 German Supermarket Wants Your NFTs - A Fresh Take on Digital Collectibles

• Kaufland, one of Germany's largest supermarkets with €32 billion in annual revenue, is offering a €10 voucher in exchange for NFTs.

• Kaufland's Marketing Director, Christoph Schneider, cites the decline in the value of many NFTs as an opportunity to engage with the NFT community.

• The supermarket's initiative has garnered significant attention, with a video about the offer receiving 400,000 views.

• Kaufland's exchange program is a clever way to attract potential customers with disposable income who own NFTs, and it has created a collection of NFTs displayed on a "Wall of Lame" in their stores.

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📱 Web3 Mobile Games: Get Ready for the Future of Gaming!

• The global gaming market, valued at $184.4 billion in 2022, is dominated by mobile gaming, which generated $92.2 billion in revenue, making up half of the global gaming revenues.

• Web3 gaming has faced criticism, with concerns about blockchain games being boring, costly, and appealing primarily to technical users, causing skepticism about the value of NFTs and blockchain in gaming.

• Despite initial skepticism, the Web3 gaming landscape is evolving, with over 35 Web3 games now having more than 5,000 daily active players, thanks to innovations like embedded wallets, zero gas blockchains, and instant block times.

• Mobile gaming's success relies on in-game purchases, and these purchases are evolving from microtransactions to essential Web3-based transactions, offering players true ownership of in-game assets. This shift is redefining the gaming industry's economic structure, with the integration of Web3 becoming an impending reality.

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🖼️ NFTs in Action: Mercedes and Lufthansa Among Leading German Companies Exploring New Frontiers

• German brands, including traditional companies like Mercedes-Benz, Deutsche Post, Lufthansa, Adidas, and food brands like Ritter Sport, Katjes, and Haribo, are embracing NFTs to engage with customers and build brand loyalty.

• NFTs offer various use cases for these brands, such as creating digital collectibles, loyalty programs, limited-edition NFT fashion, and exploring new ways to use NFTs for community engagement.

• Major German companies are using NFTs to expand their reach into the digital world, offering innovative products and experiences to their customers.

• NFTs are being utilized for loyalty programs, and brands are exploring ways to blend the digital and physical worlds through creative marketing strategies, marking a shift in the perception of NFTs as mainstream marketing tools and community-building concepts.

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🇨🇳 China's Central Bank Chief Pledges Crackdown on Cryptocurrency Speculation

• Pan Gongsheng, the new governor of the People's Bank of China (PBOC), has pledged to curb cryptocurrency speculation in China as part of measures to maintain financial stability and prevent risks in the country's financial market.

• The PBOC, under its new governor, intends to take strong actions to "severely crack down" on illegal financial activities, illegal fundraising, and domestic virtual currency transaction speculation. Additionally, the bank will intensify its efforts to investigate and handle money laundering cases. This demonstrates China's continued commitment to regulating cryptocurrency-related activities and ensuring financial market stability.

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💳 Mastercard's Collaboration with MoonPay Expands Web3 Services and Cryptocurrency Payments

• MoonPay has partnered with Mastercard to explore Web3 tools for improving experiential marketing and connecting with Mastercard's consumers.

• Mastercard will leverage MoonPay's entire Web3 portfolio, including various tools and services, to enhance its experiential initiatives. MoonPay will also integrate Mastercard products and solutions to enhance compliance and trust within the Web3 industry. This partnership further reflects Mastercard's ongoing efforts to engage with blockchain and cryptocurrency-related innovations.

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🏦 World Bank's Inaugural Blockchain Bond Marks a Significant Milestone for Digital Asset Class

• Euroclear has successfully settled the World Bank's inaugural digital note, a bond dedicated to sustainable development initiatives, using its digital securities settlement service integrated with the blockchain. This move highlights the growing trend of traditional market structures, like clearing houses, embracing digital assets, and becoming more receptive to blockchain technology.

• The World Bank's CFO, Anshula Kant, expressed satisfaction with the new service, emphasizing its scalability and transparency. Although there are several pilot projects for blockchain-based securities issuance and settlement, a unified market connecting them remains elusive.

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🏦 TradFi's Foray into DeFi: A Pivotal Moment or Prelude to Bigger Challenges?

• Traditional financial institutions, including PayPal, VISA, BlackRock, Fidelity International, and others, have made significant moves into decentralized finance (DeFi), treating digital assets and the technologies underpinning them as a new asset class for institutional investors. This entry reflects a change in opinion about the potential of digital assets, indicating that DeFi has gained recognition and interest from the traditional financial sector.

• The motives behind these moves vary, including commercial reasons like servicing client needs and earning fees, exploring technology usage and asset class exposure, and even retaining centralized power in a new international financial system. This expansion of traditional finance into DeFi can bring benefits such as increased investment, trading volume, professionalism, and reliability, but it also raises questions about the potential for conflicts between these two financial sectors and the need for cooperation and innovation.

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🏭 Corporate Giants' Surge into the Crypto World: A Mass Migration

• The blockchain industry is experiencing a significant influx of investment, with more than $2.3 billion USD in funding directed toward blockchain gaming since the beginning of 2023, and major companies are actively participating.

• Notable partnerships between leading blockchain brands like Oasys and Japan's KDDI, and Sony with the Astar Network, indicate a growing focus on onboarding the general public to blockchain technology. These partnerships aim to simplify cryptocurrency access and encourage users to engage with blockchain gaming, further driving the growth of this sector, which has already seen over $600 million in Q3 2023 investments despite market challenges. Major companies, including telecom giants and tech leaders, are investing in blockchain infrastructure, suggesting the industry is poised for a period of rapid development and innovation.

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🖼️ NFT Market Lags Behind Despite Crypto's Surging Success

• The NFT market has not seen significant growth despite a broad-based rally in the cryptocurrency market, with digital collectibles like CryptoPunks and Pudgy Penguins experiencing a drop in floor prices of 4% and 5% on a 7-day basis.

• However, there are some positive signs, such as an increase in overall trading volumes and an uptick in "active projects" in the NFT space. Trading volumes have risen from a yearly low of 29,742 ETH (under $50 million) to 47,369 ETH (over $85 million) for the week ending October 23. Additionally, the number of active projects has increased from 41 collections to 80, suggesting ongoing interest and activity in the NFT sector.

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🗺️ Top 9 Countries to Start Your Blockchain Business... aaand Joseon!? 🤔

• The passage provides information about the top 10 countries or jurisdictions to start a blockchain venture, highlighting their blockchain-friendly attributes.

• Joseon is positioned as the number one jurisdiction, with a legal framework built around blockchain technology, offering advantages not found in traditional business jurisdictions. Other countries like Luxembourg, Malta, Portugal, Bermuda, Dubai, Estonia, Switzerland, Hong Kong, Singapore, Canada, Poland, and Lithuania are also mentioned for their favorable regulatory environments and support for blockchain ventures.

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🖳 Decentralized Computing Network Aims to Challenge the Oligopoly of Cloud Computing

• Cloud computing is pervasive in modern society, with users often unaware of the extent to which they rely on it. Approximately 50% of online subscription fees end up with cloud providers, creating a significant "cloud tax."

• Akash, a decentralized computing network, aims to make the cloud more transparent and open. It serves as a marketplace that matches users with computing power providers, helping maximize resource utilization. As of now, Akash is experiencing nearly 100% utilization for high-density GPUs, setting it apart from other crypto offerings.

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🇺🇸 The Evolving American Dream: How Crypto Is Shaping the Future for Younger Generations

• Younger generations (Gen Z and Millennials) in the United States are becoming disillusioned with the traditional American dream and financial system due to high housing costs, inflation, and an outdated financial system. They are actively exploring unconventional paths to financial independence, with 38% seeing crypto and blockchain as offering economic opportunities beyond traditional finance.

• This shift is evident in their higher cryptocurrency ownership (31% among younger individuals compared to 12% among older generations), their greater interest in crypto as a global currency (16% vs. 10% among older individuals), and their belief that cryptocurrency is the future of finance (38% vs. 28% among older generations). They are also more open to supporting candidates favorable to crypto in the 2024 elections, with 51% willing to do so, compared to 39% of older Americans.

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🇺🇸 Younger Generations Lean Towards Crypto-Friendly Candidates for 2024 US Election

• More than 50% of Millennials and Gen Z in the United States are likely to support candidates who endorse cryptocurrencies in the 2024 election, based on surveys conducted by Coinbase and Bovitz, Inc.

• These younger generations, comprising around 40% of the voting-age population today, see cryptocurrency as an important source of jobs and advocate for politicians and policymakers to support blockchain and crypto technologies to benefit future generations. Approximately 51% of them express their likelihood to support crypto-friendly candidates, in contrast to 28% of older Americans who share this view.

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🌎 Latin America takes global lead in preference for centralized exchanges

• According to a recent report from blockchain analytics firm Chainalysis, Latin America has an inclination toward centralized exchanges (CEXs) over decentralized exchanges (DEXs) compared with the rest of the world.

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🇧🇷 Prosegur inaugurates high-security facility to store physical wallets of cryptocurrencies in São Paulo, Brazil

• This secure installation will house 'hardware wallets' for regulated companies looking to engage in cryptocurrencies and other types of tokens.

• Prosegur is a multinational security and transportation services company headquartered in Spain, with a strong presence in private security, including digital asset storage services is set to open a 'bunker' in São Paulo dedicated to safeguarding physical wallets for cryptocurrencies, known as 'hardware wallets.' This marks the company's second facility of its kind, with an existing crypto bunker located in Madrid, Spain, the city where the company is headquartered. The initiative's primary objective is to provide a secure environment for regulated entities to store their crypto assets

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🇧🇷 The Brazilian Chamber of Deputies has passed a bill that introduces a 22.5% tax on Bitcoin and cryptocurrencies starting in 2024

• The Chamber of Deputies, in a deliberative session, has approved the bill that imposes a 22.5% tax on investments in Bitcoin and cryptocurrencies. The Chamber of Deputies endorsed the base text of Bill 4173/23, proposed by the Executive Branch, which establishes the taxation of individual investments abroad and the advance payment of taxes in closed-end funds in Brazil, including Bitcoin and cryptocurrencies. The approved text now moves to the Senate for potential amendments.

• The Bill 4173/2023, introduced by the Federal Government, entails the imposition of up to a 22.5% tax on individuals holding cryptocurrencies on exchanges located outside Brazil.

• It's worth noting that the Brazilian Association of Cryptoeconomics (ABCripto) has emphasized that the proposal for a new cryptocurrency tax in Brazil is considered illegal.

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🇧🇷 Brazil's Central Bank Strategizes Next Steps for CBDCs and Digital Payments Adoption

• Brazil's Central Bank President Roberto Campos Neto discussed the challenge of balancing open networks and privacy in the implementation of central bank digital currencies (CBDCs). He noted that existing CBDCs are hybrid systems with DLT components inside the central bank and centralized components outside, and finding a solution to balance privacy with openness remains a challenge.

• Campos Neto believes that by digitally connecting CBDCs from different countries, it could enhance international transactions' speed and efficiency without requiring a common currency. He cited that Brazil's digital payments platform, PIX, has seen significant adoption with over 170 million transactions in a single day, becoming the most popular payment system in the country. Additionally, he emphasized the advantages of tokenization for improving processes such as contracts and registration, potentially streamlining transactions like international real estate purchases. Campos Neto also highlighted the potential for "programmable money" and the transformation of the credit card industry in the next few years.

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🇦🇷 The Path to a Digital Peso: Argentina's CBDC on the horizon

• Argentina's economic landscape has been abuzz with discussions surrounding the country's potential CBDC.

• The Central Bank of Argentina is making its intentions clear by revealing plans to expedite the implementation of the digital currency and push for the necessary legislation "as soon as possible.

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🇦🇷 Argentinian Presidential Candidate Javier Milei Seeks Support from the Crypto Community

• Argentina's presidential election saw Javier Milei securing 30% of the vote, indicating strong support for his pro-crypto stance. Sergio Massa led with 37%, leading to a runoff election on November 19.

• Milei is a far-right candidate who advocates for crypto and a departure from the Argentine Peso, with 30% support in the first round. If Milei becomes president, his pro-crypto stance could influence Argentina's cryptocurrency policies.

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