The world’s first crypto ETF; Thailand’s regulatory advances; Kraken Ventures
For the week ending on February 21st, 2021
Greetings and welcome back to the RedBlock newsletter!
This week we’re covering the world’s first crypto ETF courtesy of Hashdex, regulatory developments from Thailand and Russia, as well as news from Kraken and Sygnum.
Read on to get caught up!
1. Thailand’s SEC seeks to protect investors
In order to cultivate a safer space for digital asset investors to conduct business, Thailand’s SEC will begin conducting hearings to “determine what qualifications traders need before getting into the digital currency industry”. This, in order to ensure that investors have sufficient funds to buffer against potential losses.
This comes amid rapid growth in Thailand’s digital assets industry with record numbers of investors entering the field in recent months, and December 2020’s “net buying of digital assets [doubling] to THB1.1 billion (US$37 million) from THB500 million (US$16.7 million) in November”.
However, due to the proposed wealth prerequisite, some are critiquing the call for regulation, saying it will bar lower-income investors from participating in this burgeoning space. (CoinGeek)
2. Russian government advances crypto tax legislation
Draft legislation of a bill recognizing crypto assets as property has passed Russia’s lower house of government.
Amending existing taxation codes, the legislation will tax crypto transactions as well as penalize late or non-tax reporting individuals and entities. As it stands, “Russia’s legal framework is still suffering from the lack of clear definition of terms such as ‘crypto asset’ or ‘digital asset’”. (Decrypt)
1. Brazilian asset manager Hashdex launches first crypto ETF
Available for trading this week on the Bermuda Stock Exchange is the world’s first crypto ETF, courtesy of Brazil-based asset manager Hashdex.
Developed by Nasdaq and Hashdex, this product further expands the bridge between the crypto asset space and institutional investors. Situated in Bermuda, the fund will enjoy the location’s “advanced regulation of the digital assets market”. (Nasdaq)
1. Kraken Ventures, independent investment fund, receives backing from Kraken Digital Asset Fund
Kraken, this week, announced its backing of independent investment fund Kraken Ventures. The unique value proposition that Kraken Ventures brings to the table is that the early stage startups and technology that it invests in will have access to the Kraken ecosystem.
The fund, although independently operating, will enjoy the advantage of financial and expertise support from Kraken Digital Asset Exchange. (Kraken via Businesswire)
2. Sygnum secures $8 million investment from SBI Digital Asset Holdings
SBI Digital Asset Holdings, a subsidiary of Japan’s SBI Holdings, will be investing a sum of $8 million into Sygnum, a Swiss crypto bank.
This investment will be used to “grow [Sygnum’s] client base and expand into new markets across Europe and Asia”, as well as “[increase] Sygnum’s range of custody offerings, commercializing its tokenization platform and secondary market trading facility, as well as expanding its open banking API infrastructure”. (Nasdaq)
That wraps it up for this week’s highlights!
Until next week👋
References
Regulatory News
1. “Thai regulator wants to cushion digital currency investors against losses”
2. “Russian Government Passes Draft Bill on Bitcoin Taxation”
Industry Updates
1. “Hashdex Launches First Crypto ETF”
Investment and Financing
1. “Kraken Backs Launch of Venture Capital Fund”
2. “Japan’s SBI Investing ‘Eight-Figure’ Sum in Swiss Crypto Bank Sygnum”
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About RedBlock
RedBlock Inc is a digital investment and fintech firm leveraging blockchain technology for asset digitization and management, from issuance to secondary liquidity. Its global network of capital market participants, including issuers, broker-dealers, secondary exchanges, funds, liquidity providers and custodians, are supported by its end-to-end blockchain-powered asset management platform. RedBlock also manages an investment fund to support companies in its ecosystem that align with its investment thesis. With a growing track record and pipeline, the RedBlock team hails from top tier global investment banks, venture capital firms and blockchain technology companies.
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