Six Capital Insider: Your Monthly Review
Welcome to our June newsletter! This month saw another lot happening in the field of Web3 and blockchain technology. In this edition of the monthly newsletter, we will talk about Blackrock applying for a Bitcoin spot ETF, Crypto regulations with extra attention to the U.K. and the cessation of Binance’s services in the Netherlands.
- BlackRock Enters the Cryptomarket
- Crypto Regulation Renewed
- Binance discontinues its services in the Netherlands
BlackRock Enters Crypto Market: A Breakthrough for Bitcoin ETFs?
BlackRock, the world leader in asset management, recently announced its intentions to get involved in the cryptocurrency market. The company has applied for a Bitcoin exchange-traded fund (ETF) called “iShares Bitcoin Trust.” This is a significant milestone in the evolution of Web3, which is currently under the magnifying glass of various regulators. This Bitcoin ETF aims to allow both retail and institutional investors to benefit from price fluctuations in Bitcoin, the special aspect being that the Bitcoins are actually owned, in contrast to most current Bitcoin-related ETFs.
It is important to note that BlackRock is not the first company to take such a step. Several other companies, including Grayscale and Fidelity, have previously undertaken similar initiatives. So far, however, the U.S. Securities and Exchange Commission (SEC) has not approved any application for a spot Bitcoin ETF. Admittedly, BlackRock’s impressive reputation as a leading asset management firm could lend some additional weight to their application. Despite this, the SEC remains skeptical of cryptocurrency-related products and has even taken legal action against major exchanges such as Coinbase and Binance.
The fact that BlackRock, a well-known and respected asset management company, has applied for a Bitcoin ETF is a big step forward in the world of cryptocurrency. If BlackRock gets involved, more people may start accepting and appreciating digital currencies. But the big question is whether the SEC, which has been reluctant in the past, will approve BlackRock’s Bitcoin ETF proposal, called “iShares Bitcoin Trust.”
BlackRock’s intention to launch a Bitcoin ETF underscores the growing relevance of digital currencies and highlights the potential of Web3 investments. With this, the company offers its customers the opportunity to invest in cryptocurrencies in a simple and secure way.
This means that large regulated parties can now invest in Bitcoin. Parties such as pension funds that manage billions have the bridge to Web3 ahead. Previously, this was not possible due to the scarcity of regulated providers.
Crypto Regulation Renewed: The UK’s New Course
Over the past decade, crypto currencies have experienced remarkable growth, resulting in wider acceptance and increasing use worldwide. Recently, the United Kingdom announced a new set of rules specifically designed to regulate the Web3 market. These new regulations focus on ensuring consumer protection, combating money laundering and strengthening oversight of the growing Web3 market.
The recently introduced UK cryptocurrency regulations expand the scope of regulated activities related to crypto-assets. This includes things like trading, issuing and borrowing stablecoins. The rules also place a strong focus on anti-money laundering (AML) requirements. Companies are now required to implement clear procedures, such as appointing an anti-money laundering officer, conducting risk assessments, and monitoring customers and their transactions. The so-called “Travel Rule” is an important new addition that requires companies to collect and share information about the sender and receiver of cryptocurrency transactions with other service providers. This measure aims to better track and prevent illegal activities. In addition, firms involved in crypto-assets are required to register with the Financial Conduct Authority (FCA) and meet strict compliance standards.
This new cryptocurrency regulation in the UK symbolizes a major shift in the way government and regelative institutions dealing with the fast-growing cryptocurrency industry. Through the implementation of robust measures and expanded supervision, the U.K. seeks to strike a balance between encouraging innovation and ensuring consumer protection and the integrity of the financial system.
At Six Capital, we strive to help investors take advantage of the opportunities presented by updated regulations and markets, with an emphasis on risk management.
Binance discontinues its services in the Netherlands
Binance, one of the world’s leading cryptocurrency trading platforms, recently announced that it will cease operations in the Netherlands. The decision comes after several attempts by Binance to register with the Financial Markets Authority (AFM) as a virtual asset service provider (VASP). However, the company has been unable to obtain VASP registration, leading to the decision to exit the Dutch market.
As of July 17, 2023, existing Dutch users of the Binance platform will only be able to withdraw their existing balances. New purchases, trades and deposits on the platform will no longer be possible. Binance advises its Dutch clients to take appropriate action and remove their assets from the platform.
Earlier, Binance has already received a €3.3 million fine from the Dutch central bank for offering services in the Netherlands without the required registration.
Despite this setback in the Netherlands, Binance remains compliant with EU standards for anti-money laundering and the prevention of terrorist financing. This is confirmed by successful registrations in other EU countries, including France, Italy, Spain, Poland, Sweden and Lithuania. Binance remains committed to working closely with global regulators and is adapting its operations to comply with the new EU crypto-asset rules (MiCAR).
Binance’s departure from the Dutch market represents a significant shift for Dutch cryptocurrency users. While Binance is disappointed by the need for this move, the company emphasizes its continued commitment to working with Dutch regulators in a productive and transparent manner.
Despite Binance ending its services in the Netherlands, our Web3 technology investment fund still offers a reliable and regulated way to continue investing in the promising Web3 market.