Selected articles of the week:
An increasing number of financial institutions are positioning themselves in the field of digital assets. This is also confirmed by the Basel Committee on Banking Supervision (BCBS), which reports directly to the central banks of the G10. Since 2019, the organization has been dealing with the incorporation of corresponding cryptocurrency guidelines into the Basel Framework Agreement. The complex regulatory framework is intended to regulate the risk mitigation of the new asset class for banks.
Since 2019, the BCBS has been working to include banks’ crypto asset exposure and respective guidelines in the Basel Framework.
The proactive role of the regulator has put Switzerland in a unique position for crypto companies. Favourable conditions allowed for an early flourishing ecosystem around digital assets, which today hundreds of companies join annually. In conversation with CVJ.CH, Thomas Brunner, Head of the “Custody & Staking” division at Sygnum Bank, talks about his experience at one of the first Swiss cryptocurrency banks with a FINMA banking license.
In an interview with CVJ.CH, Thomas Brunner, Head of Custody & Staking at Sygnum, gives a glimpse into the future of digital assets.
There has been a strong adoption of cryptocurrencies on the African continent for some time now. With their unlimited accessibility, Bitcoin & Co. represent the only option for a wide segment of the population to digitally store their assets and carry out transactions with them. The South African Reserve Bank (SARB) is now setting the course for the institutional handling of digital assets with guidelines for banks and cryptocurrency companies in South Africa.
The South African Reserve Bank has issued guidelines to govern the handling and regulation of cryptocurrencies.
Centralized and decentralized credit platforms play the role of banks in the blockchain world by acting as an interface between crypto investors and borrowers. Analogous to the traditional financial sector, it has become apparent during the recent market turmoil that top-notch loan collateralization is essential in the crypto space too. Centralized providers as well as decentralized platforms that accepted cutbacks on this front have become victims of the liquidity crisis, which often ended in their demise and bankruptcy. NFTs are also allowed as collateral by individual protocols. The case of BendDAO shows how illiquid securities coupled with poor liquidation mechanisms can have devastating consequences.
Recent events surrounding the NFT credit protocol BendDAO revealed the danger of a liquidation spiral in the NFT markets.
In addition: Established technology companies have been positioning themselves in the crypto sector for some time. In January, South Korean technology giant Samsung already developed a wallet function for Galaxy smartphones and a television that supports NFTs and cryptocurrencies. Now, the subsidiary Samsung Securities wants to get a foothold in the field of crypto trading through a new initiative.
The South Korean technology giant Samsung is looking to expand its crypto engagement with a standalone crypto exchange.
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