Investment Education

According to Cointelegraph: The United States Securities and Exchange Commission (SEC) has imposed a $2.5 million fine on BlackRock Advisors, LLC, one of the world's largest asset managers. The penalty comes as a result of BlackRock's failure to accurately describe its significant investments in the entertainment industry, according to the SEC. iShares Bitcoin ETF listing on DTCC. Source: DTCC Between 2015 and 2019, BlackRock's Multi-Sector Income Trust (BIT) allegedly made major investments in a print and advertising business called Aviron Group, LLC, through a loan facility. The SEC's accusation centers around BlackRock erroneously classifying Aviron as a "Diversified Financial Services" provider in several of BIT's yearly and semi-annual public reports. Furthermore, the SEC claims that BlackRock misrepresented the interest rate associated with its investment in Aviron. BlackRock identified and rectified these mistakes in 2019. Meanwhile, BlackRock has recently attracted attention in the crypto community due to a proposed spot Bitcoin ETF. The SEC's charges against BlackRock coincided with the listing of its spot Bitcoin ETF by the Depository Trust & Clearing Corporation (DTCC). The sighting of the ETF listing led many to believe that regulatory approval for the product was imminent. Nevertheless, a DTCC spokesperson clarified that the iShares Bitcoin ETF has been listed on the platform since August, with the listing not necessarily indicating regulatory endorsement.

According to Reuters: Euroclear, one of the world's largest securities settlement houses, has announced its first settlement of a digital note for the World Bank. The bond, which was issued on the Luxembourg Stock Exchange, successfully raised 100 million euros ($106 million) to fund sustainable development activities. The Brussels-based settlement house reported that the event marked the introduction of its new digital securities issuance service. This service allows customers to issue, distribute, and settle fully digitalised international security using distributed ledger technology (DLT) or blockchain, the technology behind cryptocurrencies. This development reflects the latest move in traditional market infrastructure such as settlement houses into the digital realm as regulatory bodies become increasingly accepting of such technology. Euroclear's digital platform aligns with the European Union's rules for settlement systems and is connected to its core settlement system handling trillions of euros in securities worldwide. "Euroclear Group's CEO, Lieve Mostrey, stated, ""Today’s launch marks an important moment for our clients and for the potential of digital assets."" Citi bank's issuer services acted as the issuing and paying agent, TD Securities as the dealer, and Euroclear Bank as the issuer central securities depository. Anshula Kant, Managing Director and Chief Financial Officer at the World Bank Group, expressed satisfaction at the World Bank's involvement in the new service, especially remembering their previous issuance of the world's first blockchain bond in August 2018. The world of issuing and settling securities on the blockchain is still developing with various pilot programmes but no seamless market facilitating their connection yet. UK Finance reported that despite the growth in digital bond issuance in recent years, it accounted for less than 1% of the $20.6 trillion in long-term fixed income instruments issued in 2021.

BlackRock, the world's largest asset manager, is stepping up its efforts for the launch of a Bitcoin spot Exchange-Traded Fund (ETF), as evidenced by recent amendments to its S-1 filing. The financial giant has procured a CUSIP, or Committee on Uniform Securities Identification Procedures number, a prerequisite in the lead-up to the ETF launch. CUSIP numbers serve as distinct identifiers for securities issued within the United States. Beyond this, BlackRock is reportedly ramping up its provisions for Seed Capital, a fundamental infrastructure for launching a new ETF. Seed Capital constitutes assets bought by the issuer itself for the recently launched product to satisfy the prospective demand for ETF shares. As per regulatory norms, a new ETF requires a minimum of 100,000 shares outstanding at launch. To meet this threshold, ETFs generally initiate with a minimum of $1 million in Seed Capital, with the figure often surpassing $2.5 million. BlackRock's recent moves, as discerned from their amended S-1 filing, indicates the company's preparations for a Bitcoin spot ETF are well underway.

The Thai government has postponed its proposed plan to issue digital currency to its citizens. Deputy Finance Minister Julapun Amornvivat confirmed the delay, indicating that the initiative to distribute 10,000 baht (approximately US$280) to each Thai citizen over the age of 16 will not commence before February 1, 2024, as initially planned. Previously, Prime Minister Setah Tasha had proposed issuing around 548 billion baht (approximately US$15 billion) in digital currency - an allotment of roughly 10,000 baht for each Thai citizen above 16. This digital currency distribution was intended to be carried out via a new "super application". The Pheu Thai Party viewed this plan as a pivotal part of their strategy for stimulating economic recovery in Thailand.

A recent study conducted by the Atlantic Council, an American think tank, reveals that as of June 2023, 130 countries globally are participating in Central Bank Digital Currency (CBDC)-related initiatives. 11 of these nations, including several Caribbean countries and Nigeria, have already introduced their own CBDCs. Sweden, leading the pack, has actively initiated trial operations for its CBDC, indicative of significant progress amongst G20 member nations in this innovative financial technology sector.

According to CoinDesk: The U.S. Securities and Exchange Commission (SEC) has scored a default judgement against Thor Technologies and its founder, David Chin, over a $2.6 million unregistered offering of cryptocurrency asset securities. This ruling comes from a San Francisco district court nearly a year after the SEC first brought charges against Thor Technologies in December 2022. A default judgment typically happens when the defensive party doesn't meet specific actions, such as attending a trial or meeting document filing deadlines. Thor Technologies and Chin were charged with selling "Thor Tokens" to raise funds for a software platform designed for gig economy workers and companies. These tokens were not registered with the SEC and were promoted as an investment opportunity. Thor announced in April 2019 that it would shut down its operations due to "many regulatory challenges" Under the court's decision, Thor and Chin are prohibited from participating in any cryptocurrency asset securities offering. They are also ordered to disgorge $744,555 with a prejudgment interest of $158,638.06. However, Chin is still allowed to buy or sell securities, including crypto-asset securities, for his personal account.

As reported by Cointelegraph: According to the General Manager of Binance's local operation in Dubai, Alex Chehade, the certainty and clarity of regulatory frameworks in the Middle East immensely contribute to drawing in major cryptocurrency exchanges and businesses to the region. The area, including the UAE, Dubai, and Bahrain, has offered a friendly environment for crypto startups and established players due to its regulatory openness. Chehade argued that the Middle East, particularly Dubai with its Virtual Assets Regulatory Authority and Abu Dhabi with its Global Market framework, stands out by offering clear and specific compliance guidelines for virtual assets. Chehade also noted Bahrain's central bank's acceptance of cryptocurrencies. He further stated that many other jurisdictions struggle in this aspect due to lacking the necessary knowledge or capacity to regulate the burgeoning industry effectively. With Binance now employing approximately 600 individuals in its Dubai operation, the company sees itself as a catalyst encouraging Web3 companies to establish a presence in the region. Fostering a "healthy environment with big and small players", the platform continues to operate as a regulated exchange in Dubai segregated from its other global operations. Taking a similar stance, Akshay Chopra, Visa’s vice president, and head of innovation and design, lauded the region's forward-looking perspective on blockchain and crypto solutions. According to Chainalysis, the Middle East and North Africa (MENA) region has become the fastest-growing cryptocurrency market worldwide, with users receiving $566 billion in crypto transactions from July 2021 to June 2022.

Contrary to recent media reports, BlackRock has confirmed that its application for the iShares Bitcoin Spot ETF is still under review by the U.S. Securities and Exchange Commission (SEC). The investment management company addressed the rumors, clarifying that no approval has been granted at this time, underscoring the need for accurate information in the rapidly-evolving cryptocurrency market.

According to Zawya: The reputed Solana Foundation has joined the Dubai Multi Commodities Centre (DMCC) Crypto Centre as an ecosystem partner. This partnership aims to fuel the growth of the Web3 industry in Dubai, a recognized hub for cryptocurrency innovation. The DMCC, a government-funded free zone focused on commodities trade and enterprise, expressed its excitement in welcoming Solana Foundation, an organization committed to promoting the Solana network's decentralization and security. This alliance will strengthen DMCC’s existing services by enabling its members to scale their businesses using Solana, a prominent blockchain platform in the industry. As part of the collaborative venture, the Solana Foundation will provide technical and business development support to DMCC Crypto Centre members. In addition, it will extend its existing grant program to DMCC companies and will join the DMCC Crypto Centre in delivering educational webinars and a range of courses on pertinent Web3 topics. As part of this initiative, Solana will establish a presence at the DMCC Crypto Centre to work closely with its diverse network of technology partners, exchanges, government entities, investors, and other service providers, inviting engagement with over 23,000 companies that currently exist within the DMCC’s business precinct. Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, declared that through this partnership DMCC members can gain access to Solana's world-class blockchain platform and dedicated engineering teams to elevate their businesses, while also providing business licensing and set-up support for Solana ecosystem projects on a complimentary basis. Dan Albert, Executive Director of the Solana Foundation, looks forward to exploring the abundant Web3 value in Dubai, appreciating the high density of crypto firms and the supportive environment that DMCC provides. As a one-stop destination for emerging blockchain and Web3 technology businesses, the DMCC Crypto Centre offers comprehensive support for companies looking to set up and expand their operations. The integration of Solana Foundation sets a positive trajectory for the growth of the Web3 industry, asserting Dubai's position as a global innovation hub.

According to Odaily: Reacting to the rising fraudulent incidences within the financial sector, the Hong Kong Monetary Authority (HKMA) has taken a proactive approach. The regulator noted that it received 954 bank-associated fraud complaints within the first nine months of 2021, significantly outpacing the total of 555 cases filed in the previous year. In the wake of these reportings, the HKMA issued a notice to banks yesterday, mandating the allocation of ample resources and specialized personnel to ensure the implementation of crucial cooperative measures targeting fraud prevention. These measures span three key areas: information sharing, transaction monitoring, and customer warnings. In the coming two months, HKMA plans to integrate warnings within the Faster Payment System (FPS), designed to alert users to the possibilities of transferring funds to precarious accounts. This move underscores HKMA's commitment to bolstering sector-wide security and protecting customers' financial assets.