Crypto Biz: UAE’s regulatory structure draws crypto firms, Canaan’s revenue slumps, and more

December 3, 2023 Coin Telegraph

Canaan

The United Arab Emirates increasingly attracts Web3 companies to its jurisdictions, becoming the center of global crypto innovation.

Behind the wave of companies moving or deploying initiatives in the UAE is regulation. The country has introduced regulatory frameworks for decentralized autonomous organizations (DAOs), virtual asset providers, metaverses and other Web3-related entities.

By offering regulatory clarity and a clear path to compliance — amid a crackdown in the United States — the UAE is moving closer to fulfilling what it wants to be: an international financial hub for digital assets.

While predictions about how it will affect the future of the UAE or the crypto space itself vary, history shows how countries have used regulatory gaps to build new industries or curb existing ones.

This week’s Crypto Biz also explores Canaan’s revenue challenges, Wormhole’s massive fundraising and Banco Santander’s crypto moves.

Iota launches $100 million Abu Dhabi foundation for Middle East expansion

Open-source blockchain developer Iota announced the launch of the Iota Ecosystem DLT Foundation in Abu Dhabi, which is dedicated to expanding its distributed ledger technology (DLT) in the Middle East.

Santander offers Bitcoin, ETH trading for Swiss account holders: Report

November 20, 2023 Coin Telegraph

Banking

High-net-worth individuals of Santander Private Banking International will have access to trade BTC and ETH, according to a report claiming access to a leaked internal communication.

The international arm of Spanish lender Banco Santander has reportedly rolled out a new service, allowing clients with Swiss accounts to invest in and trade Bitcoin (BTC) and Ether (ETH).

According to a report from Coindesk claiming access to a leaked internal communication, high-net-worth individuals of Santander Private Banking International will have access to trade BTC and ETH. Cointelegraph could not independently verify the development as Santander did not immediately respond to requests for comments at the time of writing.

While Santander’s rollout of the new crypto trading services will reportedly start with BTC and ETH only, the banking giant will introduce other cryptocurrencies following the clearance of its screening criteria.

According to the report, Santander launched BTC and ETH trading services upon request from clients through relationship managers. The bank will hold the private cryptographic keys of the tradable assets in a regulated custody model.

Commerzbank recently became the first “full-service” German bank to be granted a crypto custody license in the country under the legal framework of the German Banking Act.

The license allows the bank to offer custody of crypto assets and “further digital asset services” in the future.

“This highlights our ongoing commitment to applying the latest technologies and innovations, and it forms the foundation for supporting our customers in the areas of digital assets,” stated Jörg Oliveri del Castillo-Schulz, chief operating officer of Commerzbank.

The bank initially plans to establish a platform that is both “secure and reliable” and fully complies with local regulations.

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Santander, Crédit Agricole asset arm receives French crypto custody license

June 22, 2023 Coin Telegraph

Coin Telegraph

CACEIS’s registration comes just in time to avoid the bank being subject to France’s new crypto regulations.

CACEIS Bank, the asset servicing arm of Crédit Agricole and Santander, has received a crypto custody license in France, according to the regulator’s website on June 20.

CACEIS claims to be a European leader in asset servicing, offering services from clearing and fund administration to middle office outsourcing for asset managers, insurance companies, brokers, pensions and real estate funds, among other clients. As a crypto custodian, CACEIS will store users’ private keys, thereby increasing security for institutional clients.

According to the bank’s website, CACEIS had 4.6 trillion euros ($5.06 trillion) in assets under custody as of December 2021, while assets under management stood at 2.4 trillion euros ($2.6 trillion).

The French stock market regulator, the Autorité des Marchés Financiers (AMF), requires companies planning to offer custody services to apply for registration. Other crypto businesses, including digital assets trading platforms, are also subject to the registration requirement.

The timing of CACEIS’ registration allowed the company to avoid new, stricter regulations. A new set of rules for digital assets providers in France will take effect in July, demanding firms to comply with tighter Anti-Money Laundering measures, such as ensuring customer funds are segregated, and providing more detailed disclosures about risks and conflicts of interest.

*CACEIS Bank registration with the Autorité des Marchés Financiers (AMF). Source: AMF*

These new rules do not apply to CACEIS and the more than 60 crypto firms registered with the AMF. Companies that have registered with the AMF will be governed by the European Union’s Markets in Crypto-Assets (MiCA) legislation that comes into effect next year.

Among the AMF-registered crypto companies is Binance. According to a report published in the French newspaper Le Monde, Binance’s local arm has been under preliminary investigation since 2022. The exchange reportedly failed to comply with Know Your Customer procedures and possibly engaged in money laundering activities, according to the Paris Prosecutor’s Office.

France has been tightening rules on crypto businesses in recent months. One of the most recent developments is a bill restricting local crypto companies from using influencer marketing. Penalties for failure to comply with the law include up to two years imprisonment and a 300,000 euro ($328,000) fine, with the possibility of an influencer ban as well.

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Brazilian Securities Commission CVM Opens a Path for Funds to Invest in Crypto

December 26, 2022 Bitcoin.com

Santander Will Block Users From Buying Crypto

November 4, 2022 The Crypto Briefing

Santander UK Limits Cryptocurrency Exchange Transactions, Bank Says Investing in Crypto ‘Can Be High Risk’

November 3, 2022 Bitcoin.com

After Years of Uncertainty, Cryptocurrency Exchanges Can Open Bank Accounts in Chile

October 30, 2022 Bitcoin.com

Santander bank trials blockchain platform for used cars in Brazil

October 24, 2022 Coin Telegraph

Banks

Santander Brasil is also reportedly planning to launch crypto trading services to its customers, CEO Mario Leao announced in July.

Major global bank Santander continues exploring the benefits of blockchain technology, with a local branch implementing blockchain for vehicle trading and car registration.

Santander Brasil has launched testing of a blockchain-based tokenization platform for transferring ownership of used cars in Brazil, Cointelegraph Brasil reported on Oct. 19.

The platform is designed to automate the process of transferring property registration by deploying smart contracts based on a delivery versus payment (DVP), a settlement method guaranteeing the ownership transfer after successful payment.

Santander’s latest vehicle registration solution is developed in partnership with Parfin, major digital custody and Web3 infrastructure provider in Latin America.

According to Parfin co-founder and chief technology officer Alex Buelau, the platform will be based on a proprietary blockchain network developed from the Ethereum blockchain. But in contrast to Ethereum, the system’s blockchain will be permissioned or private, meaning that it will not be publicly accessible.

Santander's project is part of initiatives selected by Brazil's central bank’s Financial Innovations Laboratory (Lift). The Lift acts as a project incubator, with one of the goals to apply the digital real, or Brazil’s central bank digital currency, which is reportedly scheduled for launch in 2024. In the meantime, Santander has already presented its demo platform to the central bank, aiming to test real transactions involving in the near future.

Jayme Chataque, open finance superintendent at Santander, suggested that the same technology could be used for selling and registering properties. “It has both convenience and security benefits for both the buyer and the seller. You turn two transactions into one,” he noted.

Buelau reportedly pointed out that regulation is one of the few major challenges on the path to mass adoption of blockchain technology, stating:

“Technology is moving faster than regulation. [...] The challenge is in regulation. But Brazil is ahead in that sense, the authorities are bold, so we may have this sooner than we thought.”

Santander Brasil is the Brazilian unit of Spain’s largest commercial bank, Banco Santander. The local bank is known for its crypto-friendly stance, with CEO Mario Leao reportedly announcing Santander Brasil’s plans to launch crypto trading earlier this year.

The global Santander bank has also been actively experimenting with blockchain technology, jointly working on tokenization infrastructure for agro commodities and issuing blockchain-based bonds. The bank is also known for its close collaboration with major crypto firm Ripple.

Santander Proposes Project to Tokenize and Trade Properties With the Brazilian CBDC

October 24, 2022 Bitcoin.com

Brazil Registers Record Number of Institutions Declaring Cryptocurrency Holdings

October 9, 2022 Bitcoin.com

Santander

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