In today’s episode, we’re unpacking crypto regulation. We explore the role regulation plays in enhancing crypto’s legitimacy, trust and adoption, and examine how frameworks address consumer protection, market transparency, and innovation. 

With the much-anticipated Markets in Crypto-Assets Regulation (MiCA) set to make a substantial impact on the EU market, today, we’re joined by Josh Peschko, Global Head of Compliance at Talos, to shed light on its significance, and potential implications for businesses in the crypto space.

On January 10, 2024, the first US-listed Bitcoin Exchange Traded Funds were approved by the Securities Exchange Commission, representing a significant step towards greater institutional acceptance of Bitcoin.

Here to talk more about the impact of this approval is Benjamin Dean, Director of Digital Assets at WisdomTree - one of the leading fund managers to have its spot Bitcoin ETF application approved by the SEC. 

KPMG recently published a report looking at the environmental, social, and governance impact of Bitcoin and its role in the ESG imperative. 

To discuss this report in more detail, today we’re joined by Brian Consolvo, Technology Risk Principal at KPMG, who co-authored the report alongside Kirk-Patrick Caron, ESG & Climate Advisory Director at KPMG. 

The sustainability and energy use issue around Bitcoin mining is a topic of significant concern and debate in both the cryptocurrency community and broader public discourse.

Addressing this issue head on, today, we’re joined by Bert de Groot, the Owner of Bitcoin Bloem, a Dutch startup that uses Bitcoin mining to grow tulips in the Netherlands.

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This week in crypto, the fallout of Binance’s $4 billion fine continued, new NFT games are launched, and CoinShares released their latest report on institutional crypto investments. 

Binance's former CEO, CZ, is facing an uncertain future as a judge deliberates on whether to permit his departure from the U.S. before his February 2024 sentencing. CZ recently pleaded guilty to violating the Bank Secrecy Act related to Binance's anti-money laundering policies. While he initially obtained release on a $175 million bond, allowing him to return to the UAE where his family resides, prosecutors raised concerns about a potential flight risk due to his considerable wealth and the absence of an extradition treaty with the UAE. In response, the judge temporarily halted CZ's foreign travel privileges. The sentencing in February 2024 carries the possibility of a prison term ranging from a few months to a maximum of 10 years, and CZ's future endeavors may be influenced by the judge's decision on his travel restrictions.

Australian exchange Swyftx has partnered with blockchain forensic firm TRM Labs to combat fraud in the cryptocurrency space. Following government data reporting a substantial $146 million loss in cryptocurrency, the collaboration aims to enhance security measures. Swyftx and TRM Labs are launching a pilot project, encouraging 2,000 customers to activate two-factor authentication on their accounts and complete a course jointly developed by the two companies. As an incentive, participants will receive AUD $10 (~$6.6) in Bitcoin. Swyftx's COO, Jason Titman, highlighted the exchange's success in halting approximately $2 million worth of crypto scams, emphasizing the typical progression of fraud from social media to banking systems and ultimately reaching exchanges. This initiative aims to curb fraudsters in the Australian market following a reported $2 million hack on a local exchange. 

BinaryX has launched an AI-based battle royale adventure game, AI Hero, introducing innovative elements of AI technology, Battle Royale, and GameFi. Following the Open Beta release in October, the game utilizes AI-generated content to dynamically shape the gaming experience, altering the world, generating quests, NPC interactions, and events for a unique playthrough each time. With 20 participants simultaneously entering the game, AI plays a crucial role in creating a personalized and ever-changing adventure. PvP gameplay adds intensity, encouraging players to gather resources, craft superior gear, and outmaneuver rivals among the 20 participants for victory. Most interestingly, players have the opportunity to mint NFT heroes after the launch, participating in a competitive mode with potential mining rewards. 

Crypto institutional investment marked their ninth consecutive week of inflows, as reported by CoinShares. In the past week alone, inflows reached $346 million, contributing to a total of $1.663 billion for the year. Institutional traders are also gaining exposure through exchange-traded products (ETPs), bringing stability and legitimacy to the space. Bitcoin remains a dominant choice, attracting $312 million in new inflows last week. Ethereum ETPs experienced a significant surge, with a 915% increase in inflows to $33.5 million. Institutional investments in digital asset products have reached their highest point since the late 2021 bull market, with total assets under management (AuM) reaching $45.3 billion. The surge in momentum followed the announcement of spot Bitcoin ETF applications in the US, and Ethereum ETF applications further fueled positive inflows into Ethereum ETPs. Anticipation is high for the approval of spot ETFs in 2024, offering another avenue for institutional exposure.

Last week in crypto, Bitcoin dipped down, and at time of writing/recording sits at $36,290. 

The news we’re most excited about though, Blockchain.com closed a $110M round of funding, led by UK-based Kingsway Capital, the latest sign that crypto-focused venture capital investments are picking up amid this year’s rebound in digital-asset prices. 

Disney and Dapper Labs are collaborating on a new NFT collectibles platform called Disney Pinnacle. Inspired by Disney's physical pins, the platform will offer digital collectibles based on Disney, Pixar, and Star Wars characters, minted as NFTs on the Flow blockchain. Characters like Buzz Lightyear, Woody, Disney Princesses, and Darth Vader will be featured. While Marvel is not mentioned at launch, Dapper Labs CEO hinted at potential future additions. Disney Pinnacle is designed for mobile use and aims to strike a balance between accessibility for fans and limited or even super limited edition assets for collectors. The platform's waitlist is open, and a gradual onboarding process for beta testing will begin before public launch. Dapper Labs, known for NBA Top Shot's success, introduced Disney to NFTs, and the collaboration signifies the broader application of NFTs beyond sports.

Uniswap Labs, the developer of the decentralized exchange Uniswap, has launched its Android app, catering to approximately 430,000 users on the waitlist. This move is part of Uniswap Labs' strategy to expand its user base globally, given Android's 70% market share worldwide. The Android app, following a beta release in October, complements the previously launched iOS app in April. To enhance international reach, Uniswap Labs is adding more languages, including Chinese, Japanese, Spanish, Portuguese, and French. A few weeks ago, we talked about Uniswap Labs’ decision to charge a 15 basis point fee on certain tokens, which has generated nearly $1 million in revenue, a strategy that’s been implemented on both the iOS and Android apps too. 

Last week in crypto, we saw Bitcoin rise to $35k, and that trend continued with another year-to-date all-time-high this week, at the time of recording bitcoin is trading at over $36,000, passing the $36k mark.

Along with other altcoins, Toncoin saw a price rise as well - to it’s highest point in nearly a year. Right now, Toncoin is trading at $2.63, up over 20% from its price 30 days ago. It’s suggested that this spike can be attributed to Pavel Durov, the founder of Telegram who announced last week they would give away 10,000 premium subscriptions for the Telegram App. Durov specified in his announcement that he procured the premium accounts with TON tokens, totalling around $200k.

Attendees at ApeFest, a convention based on the Bored Ape Yacht Club NFT, returned for the event in Hong Kong this week. However, some attendees reported extreme eye pain after attending, with a small handful hospitalized. Yuga Labs, the digital assets company behind the event, shared a post on X, addressing the concerns and concluding this was likely the result of UVA emitting lights that were used at the event.

London’s City Minister, Andrew Griffith, is championing the role of crypto in London’s financial portfolio. In a recent conversation with David Merritt, Griffith shared he perceives London as a potential hub for emerging domains such as cryptocurrency and AI, capitalizing on London’s reputation for quality and trust. Griffith stated: “I think it builds naturally on our strengths in terms of things like tech and payments”.

Last week in crypto, bitcoin moved significantly, reaching a 2023 all time high and continued to hover around the $35k mark throughout this week. 

Vietnam has emerged as a rapidly growing space for crypto, despite the State Bank of Vietnam's strict prohibition on the use of cryptocurrencies as payment, the sector continues to grow, especially in areas like remittances and international transactions. The Vietnamese government is now addressing the regulatory challenges, with the establishment of the Vietnam Blockchain Association and discussions around Decision 1255, aimed at formulating a comprehensive legal framework for virtual assets. Some see the future of crypto regulations in Vietnam as cautiously optimistic, with the government studying the domain and the industry actively preparing for potential changes.

Sam Bankman-Fried, founder of FTX, continued his testimony. Over 60 people attended the hearing, showing continued interest, though fewer than the previous days. Bankman-Fried seemed more composed in his responses but maintained a tone reflecting his reluctance to be there. Challenges surfaced when questioned about regaining control of FTX after its bankruptcy filing. His defense attorney, provided a more relaxed atmosphere during cross examination. The trial transitions to closing arguments, with the jury expected to deliberate on wire fraud and other charges, possibly starting this week. This week, according to data from on-chain analysis firm Spotonchain, the FTX wallet has sent over $13M in different altcoins to numerous crypto exchanges as of November 1st 2023. This is part of a court-ordered liquidation process, allowing FTX to sell nearly $3.4B in crypto assets in weekly batches starting from $50M a week. 

Binance, is discontinuing selected margin trading pairs on Binance Margin, with removals set for November 9. Major cryptocurrencies like Cardano (ADA), Polygon (MATIC), Avalanche (AVAX), Bitcoin Cash (BCH), Chainlink (LINK), Shiba Inu (SHIB), and Dogecoin (DOGE) are among those affected. The decision is part of Binance's strategy to completely end BUSD stablecoin support by February 2024. Users won't be able to engage in isolated margin borrowing for these cryptocurrencies from November 3, and Binance Margin will close positions, conduct automatic settlements, and cancel pending orders on the specified pairs by November 9.

The demand for “climate risk” insurance is growing at an unprecedented rate, as climate change significantly threatens the stability of our environment and economy.

However, in Africa alone, the majority of the 300 million smallholder farmers are not currently financially protected against crippling risks such as floods and drought.

Today we’re joined by Roy Confino, Head of Strategy and Operations at Lemonade Foundation,  who turned to the blockchain to tackle this head on in an attempt to close the climate insurance gap. 

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Last week in crypto, the market was moving. With Bitcoin up 8% in a few days and surpassing the $30k mark. We’ve seen this continue into this week, with 2023 all time highs, and hoovering around the $35k point. Other assets followed, with Ethereum up 7% and Dogecoin up 8%, and Chainlink up a staggering 30%. As bitcoin trends up, it’s dominating the crypto news landscape this week, but there’s still plenty of other things going on.

Uniswap Labs, owner of the Uniswap platform has introduced a new fee structure on specific token pairs. This has caused unease within UNI token holders, who govern the protocol and had not voted to implement the fees. Those against the new fees argue that Uniswap Labs are capitalizing on the token’s value, and not sharing the profits with the token holders. But some in the community support the change, arguing that allowing companies like Uniswap Labs to monetise their front-end interfaces can create sustainable business models and promote continued development. 

Tether’s newly appointed CEO, Paolo Ardonio, has made a game changing commitment to the Tether ecosystem as he vows to release real-time reports on Tether’s reserves next year. 

Tether already provides daily reserves reports on its website, but Ardonio wants to share even more data as he recently shared his goals for increasing tech investments, talking to regulators, and expanding into renewable energy. Tether’s USDT does more in trading volume than any other crypto asset, including Bitcoin, and last week data from Santiment showed high amounts of Tether being sent to crypto exchanges, which some say is a bullish signal. 

A report from Le Figaro, France’s biggest newspaper, has highlighted a rise in the number of French stores accepting Bitcoin. In 2021, Bouchon-comptoir Brunet, a Lyon-based bouchon, which is a type of eatery specific to the Lyon area, were the first in the area to accept bitcoin as a form of payment. They have a dedicated Bitcoin page on their website, where they share their reasoning and that they do not convert the bitcoin they receive into euros or fiat currency, but instead hold the cryptocurrency. The eatery also offers some items only available to purchase in Bitcoin, such as a rare bottle of chartreuse herbal liqueur, which is priced at 0.001 Bitcoin.