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The Bank of Japan (BOJ) has initiated a series of discussions with 60 firms, including some industry giants like Sony and Toyota, as part of a pilot program exploring the development of a digital yen. These discussions will delve into business and technological aspects of retail settlements using a Central Bank Digital Currency (CBDC). Despite the ongoing discourse, no decision has been made on whether Japan will issue a digital yen. This move comes as central banks around the world are increasing efforts to develop digital versions of their currencies for retail use, with the Bank for International Settlements estimating that around two dozen CBDCs could be in circulation by the end of the decade. Source: https://www.reuters.com

Bundle, a social payments app based in Nigeria, has announced its decision to discontinue its crypto exchange operations. As announced on 20 July, the company’s shareholders have decided to concentrate on its payment solution Cashlink that meets the Web3 ecosystem’s needs. Bundle has already ceased several user services including new registrations, asset deposits, and all asset swaps in Bundle wallet except for Tether. Users are now unable to withdraw via Cashlink without Nigerian Naira or other fiat on Bundle. Bundle users are also advised to withdraw all assets by 12 September 2023. Source: https://cointelegraph.com

Payments network and technology company Ripple has reportedly applied to register as a crypto asset firm with the UK Financial Conduct Authority (FCA), while also pursuing a payments licence in Ireland. This comes after Ripple’s partial triumph in the US court, which deemed Ripple’s XRP token as a security for institutional rather than for retail investors. This move reflects a trend among crypto firms seeking regulatory clarity and business-friendly environments in the UK. Notably, venture capital firm Andreessen Horowitz has recently opened an office in London. Source: https://cointelegraph.com

UK Financial Conduct Authority (FCA) announced on 20 July the launch of its Digital Sandbox, a permanent platform designed to support tech firms in early product development stages. Starting from 1 August, the platform provides a secure testing environment for businesses, startups, and data providers, including those from the banking, investment, lending, and payment sectors to test their products and services. The Digital Sandbox intends to stimulate innovation, promote economic growth, and enhance international competitiveness. Source: https://cointelegraph.com

UK Financial Services Minister Andrew Griffith has refuted a report published by the Parliament’s Treasury Select Committee in May to regulate cryptocurrencies as gambling rather than financial service due to significant risks posed by unbacked cryptocurrencies to consumers. Griffith, in response, warned that such move would create regulatory ambiguity and potential misalignment with international standards and approaches from other major jurisdictions. It could also potentially fail to address sector-specific risks, as evidenced by the collapse of crypto exchange FTX. Source: https://www.reuters.com

Kuwait’s Capital Markets Authority (CMA) announced a complete ban on most cryptocurrency-related activities, including payments, investments, and mining, according to a circular released on 18 July. This includes prohibiting local regulators from licensing businesses to provide services related to virtual assets. However, the ban does not cover securities and other financial instruments regulated by the Central Bank of Kuwait and the CMA. The CMA urged customers to remain vigilant about the risks tied to virtual assets, emphasising that cryptocurrencies lack legal status and are unsupported, making them susceptible to price fluctuations driven by market speculation. Source: https://cointelegraph.com

Nasdaq has reportedly suspended the rollout of its own cryptocurrency custody service, which was initially scheduled for a Q2 2023 launch. The decision comes in response to regulatory uncertainty in the US, as announced by CEO Adena Friedman during the Q2 results call. However, Friedman stressed that the decision would not impede Nasdaq’s commitment to digital asset business development. He also highlighted the firm’s continued vigilance towards upcoming regulatory shifts. Unveiled in September 2022, the crypto custody project aimed to provide customers with secure storage for Bitcoin and Ether. Source: https://cointelegraph.com

Societe Generale has reportedly become the first company in France to secure a licence for cryptocurrency services, reflecting a growing trend of mainstream financial firms adopting crypto this year. The French bank’s crypto division, Forge, has been authorised to provide services such as crypto custody, trading and sales, as revealed by France’s market regulator AMF. Although some crypto firms like Binance have already registered with the regulator, licensed institutions are subject to more stringent regulations in areas such as IT, corporate governance, and compliance. Source: https://www.reuters.com

US Securities and Exchange Commission (SEC) has formally acknowledged applications for spot bitcoin exchange-traded funds (ETFs) from six firms, including BlackRock. Bitwise, VanEck, WisdomTree, Fidelity, and Invesco have also had their applications accepted by the SEC and appeared on the Federal Register. The US regulator, which has previously denied numerous spot bitcoin ETF applications due to fraud and investor protection concerns, is taking the first steps towards evaluating these new proposals. Source: https://www.reuters.com

Following the US court’s decision on the lawsuit against Ripple (XRP), XRP’s trading volume has risen significantly, making it the most traded cryptocurrency in a month, as per a report by Kaiko. The report shows a 61% increase in XRP trading since the court’s ruling. XRP represented 21% of the global trade volume as of 17 July. In addition, the ruling caused XRP’s market value to increase by $21.2 billion, moving it up to the fourth largest cryptocurrency by market capitalisation. XRP’s trading volume and price have also reached their highest in 10 and 15 months respectively. Source: https://cointelegraph.com

The Australian Securities and Investments Commission (ASIC) announced on 19 July its decision to revoke FTX Australia’s financial licence. Despite the cancellation, FTX Australia, which had its Australian Financial Services (AFS) licence suspended by the ASIC in November 2022 following FTX’s filing for bankruptcy, is permitted to continue to provide limited financial services until 12 July next year to settle its transactions with clients. The firm is also required to arrange client compensation during this period. Source: https://cointelegraph.com

New York-based venture capital firm CoinFund has reportedly raised $158 million in its fourth seed fund, exceeding its initial fundraising target of $125 million. The fund has already invested in Giza, a startup aiming to introduce artificial intelligence to smart contracts, and Superstate Inc., which plans to merge decentralised finance with mutual funds. CoinFund, which is a registered investment advisor, will also continue to invest in tokens despite regulatory uncertainties. Source: https://www.business-standard.com