Newsfeed

To mark its 200th anniversary, The Glenlivet distillery in Scotland has unveiled "The Twelve Elements," a collection of 50-year-old whiskeys. This release incorporates blockchain technology via NFTs and utilizes generative AI for label design, blending tradition with innovation. Each bottle in the collection is paired with a unique NFT on the Ethereum blockchain, providing irrefutable proof of ownership through The Whisky Exchange's Cabinet marketplace. Generative AI designs one-of-a-kind labels based on each whiskey's respective element, offering a modern twist to the traditional art of whiskey labeling. The integration of NFTs and AI reflects a broader trend in the NFT landscape, where experts anticipate a shift towards utility and real-world applications beyond mere collectibles. Major brands like Mastercard, Budweiser, and Nike are also exploring the potential of NFTs for increasing transparency, traceability, and authenticity. The collection will be auctioned starting February...

The Isle of Man, renowned for its status as an offshore financial center, has initiated a public consultation regarding the future of its cryptocurrency regulation. The local Financial Service Authority (FSA) released a discussion paper on Feb. 13, focusing on overseeing "certain crypto-asset activities" for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) purposes. While the Island's National Risk Assessment highlights significant AML/CFT risks associated with crypto-related businesses, the majority of such firms are already subject to AML/CFT legislation. FSA recognizes the need for tighter regulation to address potential consumer risks, particularly for retail customers. The discussion paper outlines various options for crypto regulation, including maintaining the current framework under the Designated Businesses (Registration and Oversight) Act 2015. However, the FSA views this approach as insufficient for adequately protecting consumers from potential...

The Federal Court of Australia has ruled against Block Earner, also known as Web3 Ventures Pty Ltd, for offering its 'Earner' cryptocurrency lending product without obtaining the required Australian Financial Services License. However, the court allowed the company to continue offering its 'Access' product, which involved wrapping DeFi yields from platforms like AAVE and Compound, as the regulatory body failed to adequately prove its case. The Earner product, shut down in November 2022, facilitated straightforward crypto lending, directing user deposits to third-party firms for earning yields. Notably, Block Earner lent to firms like Stablehouse, advised by Tether's former chief strategy officer Phil Potter, and XBTO Strategies Limited. In contrast, the Access product focused on deploying funds directly into DeFi platforms and was deemed not to meet the requirements for classification as a derivative or a managed investment scheme. Block Earner sees this legal case as providing...

The Chamber of Digital Commerce (CDC), a prominent blockchain and digital asset trade association, filed an amicus curiae brief in support of French design house Hermès in its legal battle against artist Mason Rothschild over the creation of "MetaBirkins" non-fungible tokens (NFTs). The outcome of this case could set a precedent for how trademarks are applied to digital assets in the Metaverse and beyond, impacting the entire digital economy. Hermès recently secured a victory when a federal jury ruled in its favor, finding Rothschild guilty of cybersquatting and brand dilution. Despite the verdict, Rothschild intends to continue fighting the decision, arguing that his work constitutes artistry akin to Andy Warhol's iconic Campbell's soup cans. The CDC's brief argues that Hermès' right to sell its digital goods should receive the same trademark protection as physical goods, emphasizing the established brand identity's importance in assigning value to MetaBirkins. The association...

In a recent survey conducted by JPMorgan, institutional investors expressed strong confidence in the role of artificial intelligence (AI) and machine learning (ML) in the future of trading. Of the 4,010 institutional traders surveyed across 65 countries, 61% identified AI and ML as the most impactful technologies for trading in the next three years. This marks a significant increase from two years ago when AI and ML accounted for only 25% in ranked importance. Conversely, interest in other technologies such as blockchain and mobile trading applications has declined since 2022, reflecting a shifting focus among institutional traders. While AI and ML offer various benefits, including trade predictions and real-time threat identification, institutions surveyed by JPMorgan have become less inclined to venture into cryptocurrency trading. According to the survey, 78% of institutional traders have no intentions to trade cryptocurrencies like Bitcoin within the next five years, compared to...

The U.S. Treasury, through Under Secretary Brian Nelson, is set to address House lawmakers in an upcoming congressional hearing, voicing significant concerns over the exploitation of cryptocurrencies for illicit financial activities. This move shows a growing focus on combating money laundering and other illegal undertakings within the crypto space, with Washington lawmakers efforts to regulate digital assets. Nelson's testimony will appeal for enhanced legislative support to update the Treasury's capabilities and resources, aiming to effectively tackle contemporary challenges posed by the virtual asset sector. For over a decade, the Treasury has been leading efforts to curb terrorism financing, to balance mitigating risks associated with illicit finance while fostering responsible technological advancements. Despite possessing regulatory mechanisms like the authority to penalize non-compliant entities under the Bank Secrecy Act, the Treasury deems its current toolkit insufficient in...

The Blockchain Association (BA) has voiced its opposition to Senator Elizabeth Warren’s proposed Digital Asset Anti-Money Laundering Act (DAAMLA) in a letter signed by eighty individuals, including former U.S. government and military officials. The letter, addressed to key lawmakers, warns that the bill could drive a significant portion of the digital asset industry overseas, posing national security risks and hindering law enforcement efforts. Signatories argue that Senator Warren’s legislation could stifle innovation and economic growth within the digital asset sector while having limited effectiveness in targeting foreign illicit actors. Notable figures within the digital asset industry, including Coinbase Chief Policy Officer Faryar Shirzad, have joined voices with individuals from various branches of the U.S. military, emphasizing the collective concern over the potential ramifications of the proposed bill. The opposition from the Blockchain Association shows a growing divide...