The cryptocurrency market remains range-bound, with Bitcoin (BTC) hovering around $37,000. While preparing this report, Bitcoin was trading at $37,881, almost flat compared with the price traded 24 hours earlier. Ethereum (ETH) had lost 0.70% to trade at $2,035. XRP was trading at $0.6081, down 0.50% in the past 24 hours.
Major cryptocurrencies, which have gained ground in the past 24 hours, are IOTA (IOTA – $0.2494, 44.40%),
VeChain (VET, $0.02156, 0.20%), EOS (EOS – $0.6789, 0.40%), Avalanche (Avax- $21.25, 2.20%), Solana (SOL, $60.08, 2.90%), Major cryptocurrencies, which have lost ground in the past 24 hours, are Cardano (ADA, $0.3801, -1.10%), Binance Coin (BNB – $227.65, -0.80%), Bitcoin Cash (BCH, $223.09, -0.10%), Shiba Inu (SHIB, $0.00000824, -1.10%), Polkadot (DOT, $5.15, -2.50%), and ChainLink (LINK – $14.53, -0.50%).
Government Level Initiatives
OECD’s Global Crypto Tax Reporting Norm Gains 48 Jurisdiction Support
The Organization for Economic Co-operation and Development (OECD) has created a norm for countries to automatically share tax-associated data, specifically concerning cryptos. The rules, referred to as the Crypto-Asset Reporting Framework (CARF), have received endorsement from 48 jurisdictions. This includes the UK, the US, several EU countries, Brazil, and Australia.
The majority of jurisdictions experiencing significant crypto adoption are not members of the Organisation for Economic Co-operation and Development (OECD). Among the top ten countries in the Chainalysis 2023 Global Crypto Adoption Index, only the United States holds OECD membership. While there are five OECD members within the top 20, it is noteworthy that Turkey has not subscribed to the Common Reporting Standard for Crypto-Assets (CARF).
The UK’s Treasury has estimated that crypto tax avoidance could potentially range from 55% to 95%.
The Financial Action Task Force (FATF) has already established regulations for anti-money laundering reporting. However, it is worth highlighting that the OECD’s definition of a crypto-asset is more comprehensive than that of the FATF, encompassing any asset utilized for payment or investment purposes, including tradable non-fungible tokens (NFTs).
Private Sector Initiatives
Enhancing MSME Financing with Trusted Credentials
The Universal Trusted Credentials (UTC) initiative, started by the United Nations Development Program (UNDP) and the Monetary Authority of Singapore (MAS) intends to offer micro, small, and medium-sized enterprises (MSMEs) with standardized data that would encourage financiers to offer loans.
Small enterprises continue to face a capital and trade funding gap. The World Bank has estimated the aggregate MSME funding gap to be $5.20 trillion on an annual basis. Specifically, the trade financing gap is $2.50 trillion, an increase of 40% in the last three years.
Notably, three years ago, during the pandemic, the G20 tabled a similar plan through the Global Value Chain (GVB) Passport. In addition to the G20, the initiative had support from Business at the OECD (BIAC). However, the plan did not succeed.
A whitepaper released by the United Nations Development Program (UNDP) stresses the criteria governing the information to be incorporated into the UTC credential. This encompasses pertinent data such as corporate names, identifiers, tax references, and related details.
Multi-Jurisdictional Digital Bond Repo in Project Guardian Trial
As part of Singapore’s Project Guardian tokenization trials, UBS, DBS Bank, and SBI completed a repurchase (repo) transaction spread across three jurisdictions, namely Singapore, Japan, and Switzerland, involving a digital bond issued on a public blockchain.
One of the primary objectives of Project Guardian is to demonstrate the capabilities of blockchains. Furthermore, this transaction proved capital efficiencies and atomic settlement on a real-time basis.
The repo trade, which involves selling a bond and repurchasing it after a predetermined period, is used to raise funds in the short term. In the aforesaid deal, a Japanese bond was issued on a public blockchain through the UBS Tokenize platform. The settlement was carried out on a real-time basis through the use of a JPY stablecoin issued by SBI’s associate firm, Shinsei Trust & Banking. In the repo trade, the yen was borrowed against the bond, and the funds were utilized to purchase an additional tranche of bonds.
Ultimately, the bond was redeemed with the unwinding of the trade. Notably, all steps in the transaction, i.e., paying the principal and interest at maturity, were carried out on the blockchain.
Miscellaneous
SC Ventures & SBI Launch $100M Global Digital Asset Fund in UAE
Standard Chartered’s subsidiary SC Ventures and Japan-headquartered SBI Holdings have formed a digital asset joint venture in the UAE. The $100 million fund will invest in digital asset initiatives. Notably, the firm will not restrict itself to the UAE but intends to fund ventures globally (seed to series funding).
Interestingly, in 2022, SC Ventures and SBI partnered to unveil a firm focused on fintech and the digital asset environment. This was followed by a collaboration between Standard Chartered’s Zodia Custody and SBI for digital asset custodial service in Japan. Two months into the partnership, SBI headed Zodia Custody’s $36 million funding round.
The Chief Executive Officer of SC Ventures, Alex Manson, has articulated that the Digital Asset Joint Venture under his leadership aims to strategically and selectively invest in various sectors, including market infrastructure, risk management, compliance tools, decentralized finance (DeFi), tokenization, consumer payments, and the metaverse.
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.
