Investment Education

According to Cointelegraph: The London Stock Exchange Group (LSEG), the parent company to the London Stock Exchange and multiple fintech firms, seeks a director for digital assets according to its LinkedIn job posting. In its quest for the right candidate, LSEG listed several qualifications, including a “passion for and understanding of digital assets, cryptocurrencies, and distributed ledger technology.” According to the job description, the successful candidate will aid the company in developing and implementing a commercial strategy for new infrastructure solutions. The appointee will also help enhance LSEG's position and reach within digital private markets. However, a representative from LSEG told Cointelegraph that they could not provide additional details about this development at this time. This move follows LSEG's earlier announcement about their plan to utilize blockchain technology for the creation of a traditional asset trading platform. Through this venture, they aim to increase the efficiency of holding, purchasing, and selling these assets. Despite LSEG’s interest in blockchain technology, the group's head of capital markets, Murray Roos, clarified that they would not be venturing into cryptocurrency-related projects. This comes amidst increasing regulation in the UK's crypto environment. In October, the UK passed a bill allowing authorities to confiscate Bitcoin used in criminal activities and announced new stablecoin regulations. Furthermore, the country's financial watchdog issued a warning to crypto companies to comply with marketing regulations by January 2024, tightening its oversight of the rapidly growing industry.

According to The Block: Switzerland’s fifth-largest cantonal bank, St. Galler Kantonalbank (SGKB), has introduced bitcoin and ether custody and trading services in collaboration with SEBA Bank. The services launch marks SGKB's first venture into the digital asset space. This week, SGKB announced the offering to a select group of clientele, with plans to expand its digital assets services by adding more cryptocurrencies, based on client demand. Christian Bieri, SEBA Bank Head of B2B and Custody Solutions, expressed his pleasure over supporting SGKB with their expertise in digital assets services expansion. He added that following a short implementation project and a contract signing earlier this year, SGKB is now ready to offer cryptocurrency access, initially to bitcoin and ether, with other currencies to follow shortly. The partnership with SEBA Bank will facilitate SGKB's clients in integrating cryptocurrencies into their existing investment portfolios. According to Falk Kohlmann, Head of Market Services at St. Galler Kantonalbank, the cooperation has led to a straightforward initial setup that will enable them to learn and grow in line with their clients' requirements. SGKB is part of the 24 Swiss cantonal banks, partially owned by Switzerland's federal governments. Meanwhile, SEBA Bank, a licensed entity under Switzerland's FINMA financial markets regulator, offers digital asset services to other banking institutions, including both private and retail banks such as LGT Bank Liechtenstein and Julius Baer Bank.

According to Odaily: At the recent "KUN & Hashkey Exchange" strategic cooperation signing ceremony, Hashkey Group's founder Dr. Xiao Feng announced an alliance with Yuanbi Technology and Zhongan Bank to jointly release stablecoins in Hong Kong. Yuanbi Technology, lead by former president of the Hong Kong Monetary Authority, Chen Delin, has the Hong Kong Monetary Authority's stored value facility (SVF) license. Its notable shareholders include members of ZhongAn Online’s ZhongAn Digital Asset Group and HashKey Holdings Limited. This alliance will strengthen the burgeoning FinTech ecosystem within Hong Kong and could potentially pave the way for broader crypto adoption in the region. Further details about the joint issuance of stablecoins, their underlying protocols, and potential use-cases are to be outlined by the companies involved.

According to Odaily: Hong Kong Customs Commissioner, Ho Peishan, underlined the critical role of international law enforcement collaboration during a recent meeting to address emerging financial crimes leveraging virtual assets. Attending the 34th Hong Kong Customs and South Korean Customs Cooperation Conference held in Seoul, alongside South Korean Customs Department Director Gao Guangxiao, Commissioner Ho emphasized the need to meet head-on the new challenges in anti-narcotics, combating money laundering, and protecting intellectual property rights. Ho pointed out that financial crimes involving virtual assets are a burgeoning area of concern, requiring close cooperation and coordination between international law enforcement agencies to efficiently tackle and mitigate potential threats. Commissioner Ho's remarks underscore the increasingly complex landscape of financial crimes as digital currencies rise to prominence and the pivotal role that international collaborations play in addressing such crimes.

According to CoinDesk: The Commodity Futures Trading Commission (CFTC) of the United States, responsible for overseeing the derivatives market, has awarded $16 million to whistleblowers in 2023, with a majority of the 1,530 tips received related to cryptocurrency, according to Commissioner Christy Goldsmith Romero. Evidently, crypto remains a hotbed for fraud and other forms of illegality. "The majority of the tips received this year involved crypto, an area that continues to have pervasive fraud and other illegality," Romero noted in a published statement on the CFTC website. Due to the proliferation of cryptocurrency, the number of retail customers under CFTC's jurisdiction has soared, making the Commission's Whistleblower Program and the Office of Customer Education and Outreach initiatives more crucial than ever. According to Romero, whistleblowers play a vital role in identifying fraudulent activities and interpreting evidence. "The faster we can stop fraud, the more we can protect customers from harm," Romero added. This year's astounding payouts include over $15 million awarded to two whistleblowers whose crucial information and cooperation led to the successful prosecution of multiple enforcement cases. Overall, the CFTC has disbursed a whopping $350 million to whistleblowers, which has contributed to orders for more than $3 billion in enforcement sanctions.        

On the occasion of the 15th anniversary of the Bitcoin whitepaper by Satoshi Nakamoto, Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), extended his congratulations via a post on platform X, while also delivering a clear message to crypto firms. In his tweet, Gensler remarked, "If Satoshi Nakamoto went as Satoshi Nakamoto for Halloween, would we be able to tell? Happy 15th anniversary to Satoshi’s famous white paper that started crypto." He then added, "Any crypto companies that are tricking investors should start treating them to compliance with the securities laws." Gensler's words underscore the SEC's stance on the necessity for legal compliance within the crypto sector, particularly aimed at firms engaging in deceptive practices towards investors. This statement reflects the regulatory body's ongoing commitment to ensuring a well-regulated and secure environment within the dynamic and evolving crypto market, balancing innovation with investor protection.

The Hong Kong Monetary Authority (HKMA) has released the first phase report of the "Digital Hong Kong Dollar" Pilot Plan. As reported by Odaily, the trial phase of the plan has demonstrated potential unique benefits of the digital Hong Kong dollar in three key areas: programmability, tokenization, and instantaneous settlement. The ability to digitize the Hong Kong dollar could facilitate faster, more cost-effective, and inclusive transactions while also enabling newer economic activities. However, since pilot program trials took place on a small scale within a controlled environment, the HKMA maintains that further study and evaluation are necessary to confirm whether the benefits identified can be applied to bigger, real scenarios. The HKMA has yet to make a decision on the official launch of the digital Hong Kong dollar. The Authority will use the experience and results from the first phase to refine possible implementation strategies. The next phase of the project will involve exploratory studies on new use cases for the digital Hong Kong dollar and deeper analysis of the trial results.

On October 29th, asset management company VanEck reportedly submitted a revised version of their Bitcoin Spot ETF to the U.S. Securities and Exchange Commission (SEC). This news was shared by Bloomberg ETF analyst James Seyffart via social media, according to a report by BlockBeats. This development comes only a few days after Bitwise, a prominent crypto asset management organization, took a similar path. As reported by BlockBeats on October 26th, Bitwise submitted their own modified version of a Bitcoin Spot ETF to the SEC. Seyffart highlighted that Bitwise's submission was, in essence, a response to comments and concerns raised by the SEC. Should the SEC approve Bitwise's product, it is set to trade under the ticker BITB. It remains to be seen if VanEck's revised submission will receive a similar nod of approval from the US regulatory body. This move of submitting revised Bitcoin spot ETFs represent the continuous efforts from various investment companies to receive a green light for Bitcoin ETFs, which have the potential to open up cryptocurrency to a broader investment audience, and foster growth in the digital assets market.

According to Cointelegraph: The United States Securities and Exchange Commission (SEC) has imposed a $2.5 million fine on BlackRock Advisors, LLC, one of the world's largest asset managers. The penalty comes as a result of BlackRock's failure to accurately describe its significant investments in the entertainment industry, according to the SEC. iShares Bitcoin ETF listing on DTCC. Source: DTCC Between 2015 and 2019, BlackRock's Multi-Sector Income Trust (BIT) allegedly made major investments in a print and advertising business called Aviron Group, LLC, through a loan facility. The SEC's accusation centers around BlackRock erroneously classifying Aviron as a "Diversified Financial Services" provider in several of BIT's yearly and semi-annual public reports. Furthermore, the SEC claims that BlackRock misrepresented the interest rate associated with its investment in Aviron. BlackRock identified and rectified these mistakes in 2019. Meanwhile, BlackRock has recently attracted attention in the crypto community due to a proposed spot Bitcoin ETF. The SEC's charges against BlackRock coincided with the listing of its spot Bitcoin ETF by the Depository Trust & Clearing Corporation (DTCC). The sighting of the ETF listing led many to believe that regulatory approval for the product was imminent. Nevertheless, a DTCC spokesperson clarified that the iShares Bitcoin ETF has been listed on the platform since August, with the listing not necessarily indicating regulatory endorsement.

According to Reuters: Euroclear, one of the world's largest securities settlement houses, has announced its first settlement of a digital note for the World Bank. The bond, which was issued on the Luxembourg Stock Exchange, successfully raised 100 million euros ($106 million) to fund sustainable development activities. The Brussels-based settlement house reported that the event marked the introduction of its new digital securities issuance service. This service allows customers to issue, distribute, and settle fully digitalised international security using distributed ledger technology (DLT) or blockchain, the technology behind cryptocurrencies. This development reflects the latest move in traditional market infrastructure such as settlement houses into the digital realm as regulatory bodies become increasingly accepting of such technology. Euroclear's digital platform aligns with the European Union's rules for settlement systems and is connected to its core settlement system handling trillions of euros in securities worldwide. "Euroclear Group's CEO, Lieve Mostrey, stated, ""Today’s launch marks an important moment for our clients and for the potential of digital assets."" Citi bank's issuer services acted as the issuing and paying agent, TD Securities as the dealer, and Euroclear Bank as the issuer central securities depository. Anshula Kant, Managing Director and Chief Financial Officer at the World Bank Group, expressed satisfaction at the World Bank's involvement in the new service, especially remembering their previous issuance of the world's first blockchain bond in August 2018. The world of issuing and settling securities on the blockchain is still developing with various pilot programmes but no seamless market facilitating their connection yet. UK Finance reported that despite the growth in digital bond issuance in recent years, it accounted for less than 1% of the $20.6 trillion in long-term fixed income instruments issued in 2021.