Home Blog Page 1227

South Korea proposes 5% limit for listed firms’ crypto exposure

0

The proposed guidelines would allow eligible firms to invest in the top 20 cryptocurrencies by market value.

Are DAOs Pipe Dreams? NONPC Founder Says Discipline, Not Privilege, Decides Survival

0

A serial crypto architect Koichi Hatta argues that the debate between centralized teams and DAOs is a matter of timing rather than a moral choice. He views early-stage centralization as “scaffolding”—necessary for fast, coordinated execution and security during a protocol’s infancy. The Scaffolding Theory of Governance In the volatile landscape of decentralized finance, the word […]

Hub71 Strengthens UAE-Ireland Ties with Venturewave Capital Partnership

0

Hub71, Abu Dhabi’s global tech ecosystem, has signed a strategic partnership with Venturewave Capital, one of Ireland’s leading private equity and venture capital firms. The agreement marks a significant deepening of ties between the two nations, positioning Venturewave as Hub71’s first Irish venture capital partner.

The collaboration aims to create reciprocal growth pathways for startups in both Abu Dhabi and Ireland. Venturewave Capital, which is currently in the process of incorporating within the Abu Dhabi Global Market (ADGM), will play a pivotal role in supporting the growth of startups in priority impact sectors, including Health, Education, Food & Agriculture, Climate, and Sustainable Finance.

Beyond capital, the firm will contribute to Hub71’s selection process, helping to evaluate candidates for its programs. Crucially for Abu Dhabi-based founders, Venturewave will act as a bridge for expansion into European and North American markets. Conversely, the partnership creates new entry points for Irish startups looking to tap into opportunities within the UAE.

Diplomatic momentum

The partnership follows a series of high-level diplomatic engagements commemorating 50 years of relations between the UAE and Ireland. Earlier this year, a UAE delegation led by H.E. Reem Al Hashimy visited Dublin to explore tech collaboration. This was reciprocated this week by an Irish delegation led by H.E. Peter Burke, Ireland’s Minister for Enterprise, Tourism and Employment, who visited Hub71’s headquarters.

Ahmad Ali Alwan, CEO of Hub71, commented on the strategic alignment: “Our engagement with Ireland’s innovation ecosystem continues to deepen following this year’s high-level visits and ongoing collaboration. The partnership with Venturewave Capital strengthens Hub71’s venture network and opens new pathways for founders on both sides to access international markets, capital, and expertise.”

Alan Foy, chairman of Venturewave Capital, added: “We are especially excited to foster deeper links between the UAE and Ireland as a gateway to Europe, creating new pathways for innovation, capital and cross-border collaboration.”

The move reinforces Hub71’s broader strategy to expand its network of international partners, ensuring that Abu Dhabi remains a globally connected node for high-impact technology and innovation.

India Cranks Up Crypto KYC Rules, Making Sign-Ups Harder

0

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

According to official releases and news reports, India’s Financial Intelligence Unit (FIU) rolled out tougher Know-Your-Customer (KYC) and anti-money-laundering checks that crypto platforms must use when bringing new users on board.

Based on reports, the rules add live biometric checks, location data capture, and bank-account verification steps designed to cut down on anonymous accounts and suspicious flows.

Live Selfie And Geo-Tagging Required

Reports have disclosed that new sign-up flows must include a live selfie verified by liveness detection — such as eye blink or head movement checks — so a static or doctored photo can’t be used.

Platforms must also record latitude and longitude, the device IP address and a timestamp at the moment a user registers. Those pieces of data will be kept as part of the KYC record, according to coverage by major outlets.

A Penny-Drop To Confirm Bank Ownership

Exchanges are required to carry out a so-called penny-drop — a nominal ₹1 transfer — to confirm the customer actually controls the linked bank account. Users must supply PAN plus a secondary government ID such as Aadhaar, passport or voter ID, and verify phone and email addresses with OTPs. These steps are intended to tighten the link between identity and on-chain activity.

Total crypto market cap currently at $3.11 trillion. Chart: TradingView

Enhanced Ongoing Checks And Reporting Duties

Exchanges must refresh KYC every year for ordinary users and every six months for clients flagged as higher risk. Reporting duties have been stepped up: platforms will register as reporting entities with the FIU under the Prevention Of Money Laundering Act (PMLA) and file suspicious transaction reports when triggers are hit. Based on industry commentary, that will raise compliance costs and slow down onboarding for new retail customers.

The iconic Taj Mahal of India. Image credit: Kriangkrai Thitimakorn via Getty Images.

Market And User Impact

Industry participants told reporters that the new steps are likely to increase the time it takes a user to open an account and will push up operational costs for platforms that must integrate biometric and geolocation systems. While regulators say the measures aim to block illicit finance, some retail investors may find the process harder to complete, which could affect volumes in the near term.

According to sources, the FIU expects exchanges to implement these checks promptly and to keep records for audit. Failure to comply could invite action under PMLA rules. Observers say the move aligns India with stricter global KYC norms and signals that regulators plan active oversight as crypto use grows.

Featured image from Unsplash, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

BNY Debuts Tokenized Deposits for Institutions and ‘Digital Natives’

0

In brief

  • BNY said that it will begin issuing tokenized deposits.
  • The product relies on the bank’s private and permissioned blockchain.
  • The institution described the tokens as its connective tissue to crypto.

BNY, the world’s largest custodian bank, signaled on Friday that it will begin issuing digital representations of customers’ deposits on the blockchain.

In a blog post, the institution co-founded by Alexander Hamilton described the move as a key step in bolstering its ability to move “programmable, on‑chain cash” across digital rails. The product is powered by the bank’s private and permissioned blockchain, BNY added. The product is for both institutions and “digital natives,” it added.

BNY described its tokenized deposits as digital book entries representing funds that participating clients would be able to withdraw through traditional means. The bank said the tokens will initially be used in circumstances related to collateral and margin.

The move underscored how Wall Street incumbents are increasingly using digital assets as a way to augment their existing businesses. BNY highlighted the ability of tokenized deposits to “reduce settlement friction” and “improve liquidity efficiency” in various settings.

The company noted that clients’ balances, although they will be represented on-chain, will continue to be recorded with BNY’s traditional systems for compliance purposes.

In a statement, BNY Chief Product and Innovation Officer Carolyn Weinberg underscored the trusted nature of the institution’s bank deposits. The bank, which has existed for more than 240 years, safeguarded $57.8 trillion in assets on behalf of clients, as of September. The New York-based behemoth also has $2.1 trillion in assets under management.

As competitors like JPMorgan expand tokenized deposits to various networks, BNY said that its version of the product will serve as “the connective tissue of BNY’s digital infrastructure,” which includes a tokenized money-market fund with Goldman Sachs that was unveiled in July.

After forming its digital assets unit in 2021, the company started managing private keys for clients the following year, with the debut of custody services for Bitcoin and Ethereum.

BNY’s blog post included statements from around a dozen crypto-native firms, including crypto bank Anchorage Digital, stablecoin issuers Circle and Paxos, BlackRock-backed tokenization specialist Securitize, and Ripple’s institutional prime brokerage platform, Ripple Prime.

“BNY taking this step to enable tokenized deposits is a milestone moment for digital cash adoption,” Anchorage Digital co-founder and CEO Nathan McCauley said.

Citadel Securities, which said in July that it accounts for 25% of U.S. equity volume, also described tokenization as crucial for the future of finance. The market-making giant’s CEO, Ken Griffin, had in 2021 called crypto a “jihadist call” against the U.S. dollar.

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.

Vitalik Wants Better Decentralized Stablecoins on Ethereum

0

One of the inventors of Ethereum, Vitalik Buterin, argues that Ethereum needs better decentralized stablecoins to truly give people independence from the traditional financial system. 

“We need better decentralized stablecoins,” Buterin said in a post to X on Sunday, in response to Gabriel Shapiro, a lawyer at crypto investment firm Delphi Labs, who said Ethereum is “tripling down on disrupting power to enable sovereign individuals.”

However, Buterin said for this to happen, decentralized stablecoins need to address three problems.

Three problems plaguing decentralized stablecoins

One of the problems is that most stablecoins are pegged to the US dollar. CoinGecko data shows 95% of stablecoins are pegged to the USD.

Buterin argued that while tracking the USD may be acceptable in the short-term, a stablecoin’s survivability shouldn’t rest on the shoulders of a nation-state.

“On a 20 year timeline, well, what if it hyperinflates, even moderately?,” said Buterin, arguing that there should be an index to track that’s “better” than the price of the US dollar.

The second issue is related to oracles, which fetch real-world data for blockchains to ensure stablecoins maintain accurate value and proper collateralization.

Buterin said that an oracle needs to be strong enough to resist manipulation attacks without protocols raising costs for users or artificially inflating token prices.

The third issue, according to Buterin, is that staking returns need to remain high without destabilizing collateral or discouraging use.

He suggested sharply reducing staking yields to around 0.2% while introducing a new type of staking that avoids the usual slashing risks.

He also warned that stablecoin security must account for both protocol errors and network attacks, pointing out that no amount of Ether (ETH) can ensure a stablecoin’s stability and that mechanisms must be in place to navigate large price swings.

Source: Vitalik Buterin

The stablecoin market has boomed into a $311.5 billion market in 2026, up around 50% from the start of 2025. 

Related: ETH-BTC ratio bottomed in April, mirrors 2019 cycle: Analyst 

It is widely used by individuals in emerging countries for cross-border transfers and as a savings vehicle, while institutions use it for large-scale transactions and liquidity management.

Decentralized stablecoins are far behind USDT, USDC

Tether (USDT) and Circle’s USDC (USDC) — both centralized stablecoins — currently make up over 83% of the market and lead trading volumes by a similar margin.