Not every news is news that MATTERS.
We are bringing you the hand curated news through our Last Week Crypto News Today series. You can find a compilation of all the news from this series in our weekly crypto news compilation page.
We have seen this week in the news that a lot of excitement is brewing with government agencies taking a more favorable stance toward blockchain startups.
Let’s look at this past week’s picks.
Liechtenstein approves Blockchain Act, first country to have comprehensive token economy regulations
Google translation of the official announcement reads “With the new law, Liechtenstein is the first country to have comprehensive regulation of the token economy. On the one hand, the law regulates the civil law issues in connection with customer or asset protection. On the other hand, adequate supervision of the various service providers in the token economy is introduced. In addition, there are measures to combat money laundering by subjecting service providers to the due diligence rules. In addition, the law creates clarity with respect to fully digital securities.” More and more countries are now racing to be regarded as the world’s friendly places for blockchain tech to prosper. Switzerland, Singapore, Malta and now Liechtenstein join that list of friendly places for blockchain tech.
Paypal leaves Facebook’s Libra Association
It is not a secret that we are not big fans of Facebook’s Libra. We made that clear in our earlier articles about how Facebook’s numbers scare everyone, why Facebook’s Libra backfired and we were the first ones to call Facebook’s Libra a copycat coin. Lawmakers have started cracking down on Facebook’s attempt to ‘monkeying’ with the money supply. Now, PayPal, one of the 28 members of the Libra Association has withdrawn its participation. Financial Times reported (according to The Verge) “that at least one primary concern for PayPal has been the lack of attention Facebook executives have paid to Libra’s considerable backlash.” In spite of the lawmakers backlash, PayPal withdrawing its support, we still believe Libra will launch as planned in 2020.
Walmart pilots end-to-end traceability of Shrimp from Andhra Pradesh, India
Walmart is forging forward with its food safety through blockchain initiative. It has added Shrimp to the end-to-end traceability catalogue. This will be the first blockchain project to track Shrimp from India to other countries. According to the news article in The Hindu, “Shrimp is India’s largest agricultural export, with the U.S. as its largest market, taking a 46% share of India’s shrimp exports by value in 2018.” The article also states that Andhra Pradesh State Government “is encouraging farmers to improve quality standards and comply with stringent U.S. monitoring programmes to win the trust of U.S. retailers and consumers.” Leveraging Blockchain technology to enable end-to-end traceability is a great way to garner trust. Food traceability is one of the use cases of Blockchain that is quickly gaining traction.
Morningstar to rate cryptos backed by real-world assets
Credit Ratings race is on in the crypto. Weiss Ratings may have been one of the early players but the big names are making their moves. Morningstar is now working on introducing crypto ratings, specifically for cryptos backed by real world assets. Entrance of brands like Morningstar will legitimize this space even further. With the announcements from JP Morgan, Fidelity and others, bitcoin and blockchain space has been gaining traction for the past few years. Forbes article states “Morningstar’s entrance into the space could unlock billions of dollars waiting for the moment when cryptoassets assets finally become credible.”
World’s first invoice with smart contract and digital cash to purchase from IKEA
According to a press release, Tradeshift and Monerium announce first successful transaction utilizing smart contract and digital cash. The transaction took place on Ethereum blockchain to help Nordic Store purchase goods from IKEA Iceland. Stefán Árnason, CFO of IKEA Iceland, said “a programmable financial supply chain, where trading partners can connect information flows to money flows through smart contracts, will transform how suppliers and customers interact.”
Block.one settles with SEC
“It’s easy to say sorry than to ask for permission,” is an old adage in the business world. Block.one, the creators of EOS, have once again proved this adage true. The company raised close to 4 billion dollars in the ICO which SEC says is an unregistered ICO. Now, SEC has settled the case with a meager 24 million in penalty. To put that into context, the total amount raised by Block.One through EOS ICO is 4 Billion dollars and their penalty of 24 million represents .6% (under 1%). While we are glad that SEC has decided to help move things forward, in our opinion, it just sends the wrong message to the industry that don’t bother asking for permission as long as you can pay millions in fines. This is another reason why we said in spite of drama Facebook’s Libra will see the day of light and Ripple will get away with civil fines for minting 100s of millions of dollars each month.
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RK Reddy holds two Masters degrees, one in Accounting and another in Business Administration with over 15 years of experience in the financial services industry.
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