The cryptocurrency market remains range-bound with a slight bullish bias as Bitcoin (BTC) inches towards $45,000. While preparing this report, Bitcoin was trading at $43,651, an increase of 3.30% in the past 24 hours. Ethereum (ETH) was trading at $2,318, up 2.20% in the same period. XRP had gained 2.10% to trade at $0.5345.
Major cryptocurrencies, which have gained ground in the past 24 hours, are VeChain (VET, $0.0291, 3.10%), Avalanche (Avax- $36.04, 2%), Solana (SOL, $103.13, 6.1%), EOS (EOS – $0.7187, 0.60%), Bitcoin Cash (BCH, $242.17, 1.50%), and Polkadot (DOT, $7.04, 2%), IOTA (IOTA – $0.2542, 2.1%), Cardano (ADA, $0.5342, 7.90%), Shiba Inu (SHIB, $0.00009307, 2.60%), Binance Coin (BNB – $311.47, 1.40%), and ChainLink (LINK – $15.03, 1.60%).
Government Level Initiatives
Bank of Jamaica Addresses Slow CBDC Adoption
Jamaica commercially rolled out its JAM-DEX central bank digital currency (CBDC) in April 2022. However, the vendor onboarding process was slow as retailers had to spend money on upgrading their Point of Sale hardware. To resolve the issue, Bank of Jamaica’s Governor Richard Byles has revealed the central bank’s plan to finance the process of upgrading the machine to handle the JAM-DEX QR codes.
Currently, Jamaica has about 50,000 PoS machines in operation. The central bank has taken steps to technically upgrade 10,000 of the latest machines that can handle JAM-DEX QR codes.
The challenges encountered with traditional brick-and-mortar retailers elucidate the fervor surrounding the establishment of a digital marketplace for e-commerce in the previous year, facilitating the utilization of JAM-DEX. Jamaica, which has a population of 2.80 million, has 260,000 wallet holders. Nevertheless, the government is interested in resolving the PoS problem before advocating using CBDC.
Thailand SEC Eases Restrictions on Tokenized Real-World Assets for Retail Investors
Thailand’s Securities and Exchange Commission (SEC) has introduced new regulations impacting firms dealing in digital assets and tokenization. The SEC is lifting limitations on consumer investors for two classes of tokenized real-world assets (RWA) – real estate and infrastructure.
Retail investors are now allowed to take part in initial coin offerings (ICOs) for real estate-backed tokens or those associated with real estate revenues, terminating the earlier 300,000-baht ($8,415) restriction. The SEC intends to balance investor protection with raising funds for national development.
Furthermore, the SEC outlined rules for digital asset businesses seeking to operate additional business lines. These businesses must obtain approval from the SEC, and the criteria for assessment include whether the new revenues benefit the core digital asset business, avoid conflicts of interest, and do not pose risks to customer assets.
Lastly, the SEC has introduced rules for digital asset custody businesses within a group of companies to prevent conflicts of interest if the custody firm shares common shareholders with the digital asset business. The regulations also prohibit digital asset firms from providing services through entities owned by individuals sanctioned or accused of digital asset violations. These measures aim to enhance regulatory oversight and safeguard investor interests in Thailand’s digital asset market.
EU Council and Parliament Agree on Anti-Money Laundering Guidelines for Cryptos
The EU Council revealed a temporary agreement with the EU Parliament about certain portions of the anti-money laundering (AML) guidelines that affect cryptos. The European Union has a cumbersome process for approving legislation that paves the way for cooperation between the Commission, the EU Council, and Parliament, symbolizing respective state governments.
In March 2023, the EU Parliament approved a first vote on three sections of legislation requiring crypto-asset service providers (CASP) to follow the same rules as banks to validate the identity and data related to their clients. This affects transactions of over €1,000. The 2023 draft also included NFT platforms and Decentralized Autonomous Organizations (DAOs). Nevertheless, it is no longer a part of the legislation.
Miscellaneous
WCAS to Acquire Majority Stake in EquiLend, Investing $200 Million for Growth
Privately owned equity investment firm Welsh, Carson, Anderson & Stowe (WCAS) is acquiring a majority stake in bank-backed securities funding firm EquiLend. The deal is expected to be completed in the second quarter, pending regulatory approvals. EquiLend functions as a securities lending trading platform that handles $2.40 trillion in monthly trades.
In addition to the takeover, WCAS is allocating $200 million to support EquiLend’s growth, including finance for acquisitions.
Currently, EquiLend is trialing 1Source, a DLT-based securities lending platform planned to be rolled out in the third quarter of 2024. One of the main goals of the blockchain venture is to facilitate participant’s ability to retain data in sync by offering a single point of truth. This is specifically beneficial after a securities lending deal is initially consented to. Digital Asset is acting as the technology partner.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
