This week in FinTech, we’ve got news about Canadian accusations, PayPal crypto trading (anyone surprised?), and Jamaican digital currency efforts.
Over the weekend…
Canada’s Ontario Securities Commission formally accused Coinsquare of wash-trading, market manipulation and deceiving traders about exchange volume. They also alleged that Coinsquare fired the whistleblower who initially raised concerns within the company.
Roger Ver, founder of Bitcoin.com, accused Twitter of blocking his tweets about near-field communication payments for Bitcoin Cash and Simple Ledger Protocol tokens. He tweeted, “It seems Twitter is blocking me from sending certain tweets promoting non state issues money,” along with screenshots for proof.
PayPal announced its plans to offer crypto trading through US stablecoin operator Paxos. Paxos previously announced its plans to launch a crypto brokerage, which PayPal will now be using.
Banque de France will begin testing digital euro integration for inter-bank settlements through a handful of candidates. The list of companies includes Accenture, HSBC, Euroclear and LiquidShare; among others.
The Bank of Jamaica has invited interested tech solution companies to develop a Central Bank Digital Currency (CBDC). Companies must submit an application before August 7th.
Robinhood, the stock and crypto trading app, has announced that it will cease its efforts to expand into the UK indefinitely. They are reportedly focusing “on strengthening [their] core business in the U.S.”.
The Chairman of Kazakhstan’s anti-corruption agency Alik Shpekbayev stated that a national digital currency would significantly reduce corruption in the country by providing more transparency while also reducing transaction costs. He cited China’s pilot program as an example of what Kazakhstan should be doing.
South Korea’s crypto income tax has officially set its rate at 20%. However, if you generate $2,000 a year or less through crypto trading, you will not be taxed.
Russia passed its long-awaited crypto bill. The bill, “On Digital Financial Assets”, legalizes digital assets but does not allow them as a payment method.
The Bank of Korea launched a digital innovation department focused on blockchain and AI technology. It hopes to develop a better digital infrastructure as well as help create new, more applicable policies.
The World Stablecoin Association officially launched and will be headquartered in Geneva amid growing interest in the asset type. The organization was created by VirgoX and Global Digital Assets Capital.
The ETH 2.0 testnet is going live on August 4th. Named Medalla, the protocol was built for general community management and usage.
24 hours after the Office of the Comptroller of the Currency (OCC) announced bank-based crypto custody services, Bitcoin surged 5%. Banks and federal financial associations will now be able to open their arms to the crypto world by not only providing asset storage, but also offering tools to invest within the market.
Despite Indian banks’ interest in the crypto space, existing regulations and the uncertainty around them have made it difficult for the industry to take hold in the country. Many officials are very anti-crypto and several fintech companies in the region have failed over the last couple of years due to lack of support.
Digital Asset manager and analyst Charles Edwards went to Twitter stating that US Banks could spur a rapid surge in BTC prices. He claims that just a 1% investment could double the bitcoin price.
A new interest rate swap contract for DAI could aid stabilization for its unforeseeable interest rates. Delta Exchange launched the derivative as a way to hedge against volatile rate changes.
For more information on these stories, visit:
Robinhood’s global expansion: https://www.bloomberg.com/news/articles/2020-07-21/robinhood-shelves-u-k-launch-puts-global-expansion-on-hold
Kazakhstan’s anti-corruption agency: https://coinchapter.com/kazakhstan-needs-national-crypto-to-fight-corruption-says-local-official/
South Korea’s crypto tax: https://ihodl.com/topnews/2020-07-22/south-korea-approves-20-tax-crypto-gains/
DAI interest rate swap: https://ibsintelligence.com/ibs-journal/ibs-news/delta-exchange-launches-the-first-interest-rate-swaps-on-dai/#:~:text=Delta%20Exchange%2C%20a%20digital%20asset,EST%20on%20July%2024%2C%202020.