Revolut’s License Woes & ASX Ditches Blockchain: Debating Innovation vs Stability

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The Bank of England is reportedly on the verge of rejecting Revolut‘s application for a banking license, following a two-year campaign. According to The Telegraph, the Prudential Regulation Authority (PRA) has concerns over Revolut’s balance sheet and plans to issue a statutory warning notice to the neobank. While this may discourage innovation in the banking sector, it demonstrates that the Bank of England is committed to maintaining the stability and security of the UK’s financial system.

In a surprising turn of events, Australia’s stock market operator, ASX Ltd, has decided not to rebuild its software platform using blockchain technology. Tim Whiteley, ASX exchange project director, stated during a meeting that the exchange will likely “need to use a more conventional technology” for its software overhaul in order to achieve specific business outcomes. This decision may be seen as a setback for blockchain adoption in the financial industry, but it could also indicate a cautious and measured approach towards integrating new technologies.

Digital asset financial services firm HashKey Group is reportedly planning to raise funds at a $1 billion valuation. The Hong Kong-based company aims to raise between $100-200 million, capitalizing on a favorable environment for crypto firms within the region. This highlights the continued growth and expansion of digital asset-centered companies, even if their valuations may raise some eyebrows.

Meanwhile, Grayscale is looking to exploit a potential loophole with its new Bitcoin (BTC) Exchange Traded Fund (ETF) filing. The firm plans to have 40% exposure to spot bitcoin ETFs, with each of the five underlying funds weighted equally. If approved, the US-listed vehicle would invest in “spot” bitcoin exchange-traded products in other countries. This proposed fund shows that innovation and demand for exposure to digital assets continue to grow, despite the potential regulatory hurdles.

On the topic of safety, Ledger co-founder and former CEO Éric Larchevêque recently commented on the wallet manufacturer’s controversial service launch, describing it as a “horrible mess.” He conceded that communication surrounding the service “would have needed a much more prepared communication,” but believes the fallout was primarily a PR failure rather than a technical one.

New York-based Bitcoin miner Bit Digital is expanding its operations to Iceland in an effort to mitigate potential regulatory risks from the US government’s proposed crypto-mining tax. This move highlights the volatile nature of the cryptocurrency mining landscape, with miners constantly seeking new jurisdictions and locations that are friendly to their operations.

Researchers from the US New York Federal Reserve and Monetary Authority of Singapore (MAS) have published a report suggesting that central bank digital currency (CBDC) systems on different networks can be utilized for cross-border and cross-currency payments. This bodes well for the development of CBDCs and their potential use in international remittance and payment services.

Lastly, Switzerland’s canton of Zug has increased the limit for tax payments in BTC and Ethereum (ETH) to approximately $1.66 million. The decision signifies progress towards a “digital future” and showcases how governments can adapt to the growing adoption of cryptocurrencies as a form of payment.

Source: Cryptonews

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