Organised by Dynamic Events Ltd., the awards were divided into nine different categories aimed at recognizing outstanding emerging start-ups, disruptive technologies, unique business models, as well as established players in the electronic money transfer domain.

Specializing in payment and banking solutions for the iGaming & Crypto industries among others, FinXP was recognized for its IBAN4U product, a dedicated Euro IBAN Account linked to a debit Mastercard. On platform environments, the solution can innovatively be extended so that both the platform and the end-users have IBAN accounts, facilitating instant, cross-border deposits & withdrawals. This payment solution, which is part of a larger ecosystem of FinXP payment services, has already been adopted by several tier-1 operators and platforms.

Jens Podewski, co-founder and CEO of FinXP, commented “we are honoured to be recognized for the solutions that we are bringing to market. I’d like to take this opportunity to thank our amazing team, these awards and the results we achieve would not be possible were it not for their dedication and work ethic.”

“Looking ahead, we have a lot to be excited about. We are exhibiting at prestigious events, launching new products, finalizing new partnerships, and so much more. 2023 is panning out to be an eventful year for FinXP”.

The post FinXP achieves double success at the Malta Fintech & Crypto Awards first appeared on The Malta Business Weekly.

Background

Following endorsement by the European Council in October 2022, the Markets in Crypto-Assets Regulation (MiCA) is now on track to create a harmonised, regulatory landscape for crypto-assets in the European Union (EU). MiCA, the first pan-national legislation worldwide for crypto-assets, applies to issuers of crypto-assets and service providers undertaking MiFID-like and other activities in relation to crypto-assets.

Whatever the perception, it is evident that crypto markets are an integral part of the international financial system. MiCA illustrates the EU’s objective to promote innovation while focusing on consumer protection, market integrity and financial stability. As a regulation, MiCA will be directly applicable throughout all EU member states – but Malta is not envisaging any major headaches given the framework introduced by the Virtual Financial Assets Act (VFA Act), way back in 2018. Service providers in Malta are expected to transition effortlessly from their current VFA licence to the new MiCA-compliant licence, giving our jurisdiction a competitive edge.

Classification under MiCA

Crypto-assets are defined in MiCA as a digital representation of a value or a right that may be transferred and stored electronically using distributed ledged technology (DLT) or similar technology. MiCA distinguishes between three categories of crypto-assets: (1) asset-referenced tokens (ARTs), (2) e-money tokens (EMTs) and (3) other crypto-assets.

Both types of stablecoins, namely ARTs and EMTs, require authorisation and the establishment of the issuer in the EU. Stablecoins are crypto-assets pegged against a reference asset (whether FIAT-backed, crypto-backed, commodity-backed, algorithmic or hybrids thereof). As with service providers, the authorisation of issuers will allow “passporting” across the EU. This means that if an issuer is authorised by the Malta Financial Services Authority (MFSA), the authorisation in Malta will be valid across the EU without the need of any additional authorisation in other EU member states.

MiCA is clear that the framework does not apply to assets falling within existing EU financial services legislation, particularly financial instruments covered by MiFID II, or even deposits, structured deposits, funds under PSD2 or insurance and pension products.

Asset-Reference Tokens (ARTs)

ARTs are defined as a type of crypto-asset that “is not an electronic money token” and that purports to maintain “a stable value” by “referencing to any other value or right or a combination thereof, including one or more official currencies”. MiCA highlights that ARTs could be widely adopted to transfer value or as a means of exchange and thus represent a more significant threat to market integrity and the protection of retail investors.

The issuer of an ART needs to be established in the EU and its whitepaper requires approval by the national competent authority, such as the MFSA, prior to being offered to the public. This does not apply when an ART will be offered solely to “qualified investors” (being, per se professional clients under MiFID II) or when the offer to the public is below a set threshold. The requirements of the whitepaper, and other sections of MiCA, shed further light on the characteristics of ARTs, particularly that:

• ARTs may lose their value in part or in full;
• ARTS may not always be transferable;
• ARTs may not be liquid;
• the holders of ARTs have a redemption right at any moment;
• redemption proceeds may be satisfied by funds other than e-money or in kind (that is, the asset referenced by the token);
• redemptions cannot be subject to any fees;
• yield/ interest is prohibited to reduce the risk that ARTs are used as a store of value; and
• ARTs require the establishment and maintenance of an “asset reserve”, which is segregated from the issuer’s estate and from the reserve of assets of other tokens.

The European Securities and Markets Authority (ESMA) has been mandated to publish guidelines on the criteria and conditions to distinguish between crypto-assets under MiCA (particularly, ARTs) and financial instruments under MiFID II. This is essential given that certain features of ARTs resemble those of financial instruments. While it is quite evident that tokens such Dai and PAX should qualify as ARTs, legal certainty will be necessary for the industry to understand whether regulatory implications arise under MiCA, MIFID II or otherwise in respect of other “non-conventional” or “security-like” tokens.

E-Money Tokens (EMTs)

EMTs are crypto-assets which aim to “maintain a stable value by referencing to the value of one official currency” and which should not be treated as deposits. To minimise regulatory arbitrage, MiCA aims to capture all crypto-assets which either classify as e-money (as such term is defined in Article 2(2) of EMD2 or Directive 2009/110/EC) or which share similar elements or a comparable function thereto. Akin to e-money, EMTs also emerge as digital alternatives to banknotes and coins, which are also commonly used for payment purposes.

Locally, the Financial Institutions Act (Chapter 376 of the laws of Malta) implements EMD2 which, in turn, defines e-money as “electronically, including magnetically, stored monetary value as represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transactions as defined in point 5 of Article 4 of PSD2, and which is accepted by a natural or legal person other than the electronic money issuer”.

In a report published back in 2019, the European Banking Authority (EBA) had confirmed that for a DLT asset to qualify as electronic money, it must fulfil the below cumulative elements:

1. be electronically stored;
2. have monetary value;
3. represent a claim on the issuer;
4. be issued on receipt of funds;
5. be issued for the purpose of making payment transactions; and
6. be accepted by persons other than the issuer.

In this regard, MiCA adopted an all-encompassing approach to mitigate the possibility of bypassing EMD2 rules by ensnaring tokens analogous to e-money but which do not necessarily satisfy all the above cumulative elements set out by the EBA, and by setting a common set of regulatory obligations applicable for both types of tokens. While the regulation only allows credit institutions or electronic money institutions authorised under EMD2 to issue EMTs, it also mandates the same issuers to inter alia publish a crypto-asset white paper and notify it to their competent authority. Furthermore, MiCA imposes on such issuers the obligation to grant redemption rights to EMT holders, wherein each token would give rise to a claim against the issuer representing the underlying currency referencing the EMTs, and which could be exercised at any point in time, at par value. It is also key to note that under MiCA, so as to ensure that EMTs are used as a medium of exchange, as opposed to a store of value, there is a general prohibition on EMT issuers to grant interest in relation to EMTs, be it positive or negative interest.

Other Crypto-assets

This is a catch-all that comprises “all other crypto-assets” falling outside the two categories above (ARTs/ EMTs), including utility tokens, which are defined as crypto-assets that are only intended to provide access to a good or a service supplied by the issuer of the token. Issuers or offerors of these types of crypto-assets will not need to be authorised by the MFSA. However, a white paper and notification to the MFSA will be necessary prior to offering these crypto-assets to the public or seeking admission on a trading platform – unless certain exemptions apply.

Significant ARTs and EMTs

It is worth mentioning that, if an ART or EMT is classified as ‘significant’, specific provisions and additional regulatory burdens will apply. Here, the EBA will exercise supervision jointly with the relevant national competent authority. The classification of an ART or EMT as ‘significant’ will be based on transaction volume and frequency metrics.

Non-Fungible Tokens (NFTs)

Unique and non-fungible tokens (“NFTs”), including digital art and collectibles, are excluded from MiCA. However, whenever issued in a large series or split into fractional parts, these tokens may be considered to be fungible and fall within MiCA (or possibly MiFID II).

In a recent consultation document published by the MFSA in anticipation of MiCA, the Maltese Regulator, while seeking feedback from stakeholders prior to implementing changes to the VFA legislative infrastructure, has expressed its view that the conventional characteristics of NFTs (that is their uniqueness and lack of interchangeability) may act as a barrier for NFTs to be used for investment or payment purposes. The MFSA therefore asserts that regulating NFTs would deviate from and slightly jar with the objective which the VFA framework is seeking to achieve namely the regulation of issuances and MIFID-type services within the context of assets which are similar to traditional financial instruments. It is anticipated that, following the consultation exercise, the local regime would likely follow the logic behind MiCA and exclude NFTs from its supervision.

What’s next?

Following formal approval by the European Parliament and the Council, MiCA will be published in the EU’s Official Journal and enter into force after 20 days. A transitional period of between 12-18 months is subsequently envisaged for MiCA to become applicable. While MiCA is expected to take effect in 2024, the attention will be on the regulatory technical standards and guidelines to be issued by the EBA and ESMA.

Legal certainty, including a potential test similar to the “financial instrument test” established by the MFSA, will be key for the classification of crypto (and other) assets.

Since the previous tentative plan for the European Parliament to vote on MiCA during December 2022 has not been attained, it is anticipated that the supranational legislator will decide on the regulation during Q2 of 2023.

Mark Caruana Scicluna is a senior associate within Ganado Advocates’ investment services and funds team

James Debono is an associate within Ganado Advocates’ banking and finance team, assisting institutional as well as start-up clients on various regulatory matters, particularly in the fintech space, particularly payment and e-money institutions, credit institutions, blockchain and crowdfunding platforms

The post The Classification of Crypto-Assets under the new Markets in Crypto-Assets Regulation first appeared on The Malta Business Weekly.

According to data presented by AksjeBloggen.com, the combined value of all crypto coins plunged by 48% since May reaching $1.32trn last week. However, this figure still represents a 76% increase year-to-date.

Bitcoin’s Market Cap Up by 13% YTD, Ethereum Soared by 190% Despite Crypto Price Crash

The year 2020 was a fantastic year for crypto investors, with the combined value of all digital coins circulating in the crypto space surging by 300% YoY to $758bn. This was even above the market cap reached in 2017, considered as the break-out year for Bitcoin and other digital coins.

However, 2021 witnessed even more impressive growth, with many of the major crypto coins reaching their all-time highs. The CoinMarketCap data show the global crypto market cap soared by 130% in the first three months of 2021 jumping to over $1.8trn. Two months later it hit an all-time high, with the combined value of all crypto coins soaring to $2.5trn on May 12.

However, two weeks later, this figure almost halved to around $1.3trn. The unexpected pullback in Bitcoin and other cryptocurrencies came as a flurry of negative headlines and catalysts, from Tesla CEO Elon Musk to a new round of regulations by the Chinese government, causing a massive hit for the entire sector.

Statistics show that Bitcoin’s market cap dropped by 44% since May reaching $617bn last week. However, this still represents a 13% increase since the beginning of the year.

The market cap of Ethereum, as the world`s second-largest cryptocurrency, soared by 190% YTD, despite the recent crypto price crash. In January, the combined value of all Ethereum coins amounted to $84.7bn. After reaching an all-time high of $497bn in May, this figure dropped to $245bn last week.

Tether Witnessed the Biggest Growth Among the Top Three Cryptocurrencies

However, the CoinMarketCap data show Tether witnessed the most significant market cap growth among the top three cryptocurrencies. In January, the market cap of the world’s most used stable coin amounted to $21bn. By the end of March, this figure jumped to $40bn and continued rising. Last week, it stood at $62.2bn, a massive 196% increase YTD.

Besides impressive market cap growth, Tether also ranked as the most traded coin in the crypto space. Statistics show the world’s most widely used cryptocurrency, hit $2.3trn in monthly trading volume, almost double than Bitcoin and 2.5 times more than Ethereum.

The full story can be read here

The post Global crypto market cap plunged by 48% since May to $1.32T, still a 76% increase YTD first appeared on The Malta Business Weekly.

8 out of 10 US Crypto Owners Held Bitcoin

Bitcoin came into existence in 2009 and thus created the cryptocurrency industry. In its early days, crypto, as it is more colloquially known, remained on the fringes but in 2021, crypto has become part of the mainstream. In the US, a recent survey in early 2021 showed that 80.7% of 2,925 respondents owned the cryptocurrency Bitcoin while 35.7% indicated owning Ethereum.

Dogecoin was the third most popular cryptocurrency found in the survey with a 24% ownership rate while Litecoin had a 19.1% ownership rate. Bitcoin Cash rounds out the top five most owned currencies among US adults with 16.8%.

Similar Results For Crypto Ownership in the UK

Notably, when the same survey was conducted in the UK, the results showed the same order but slightly different ownership rates. In the UK, 70% of more than 1500 cryptocurrency owning adults indicated owning Bitcoin. The ownership rate for Ethereum was more similar for both countries with the UK registering a slightly higher 37.3% but Dogecoin ownership was much lower at just 15.5%.

Rex Pascual, editor at TradingPlatforms.com, commented;

“Despite awareness around cryptocurrencies reaching mainstream levels, there is still much debate about the long term viability of virtual currencies. Nevertheless, ownership levels are on the rise, and the volatile nature of crypto shown by the steep fluctuations in its value is precisely what is both attracting and repelling potential investors.”

You can read more about the story with more statistics and information at:  https://tradingplatforms.com/blog/2021/06/02/bitcoin-ownership-among-us-crypto-owners-at-81-in-march-2021-survey/

The post Bitcoin ownership among US crypto owners at 81% in March 2021 survey first appeared on The Malta Business Weekly.

FinXP, a Malta-based fintech, has been chosen as the banking partner for crypto payment solution Utrust. The collaboration between both companies will result in unique, new benefits for Utrust customers and in the process will continue to revolutionize the crypto ecommerce industry.

As a modern payment and banking service provider, FinXP will enable Utrust to offer instant crypto-to-fiat settlements for merchants all around the world through a highly secure online platform. This means that merchants using Utrust no longer need to wait days in order to convert their crypto sales to banked money. Furthermore, merchants will also be able to make settlements in different currencies. As a result of this partnership, working with cryptocurrencies has now become a more seamless and borderless experience for merchants.

Jens Podewski, CEO and co-founder of FinXP commented that “it is very likely that cryptocurrencies will be playing an important role in the future of global commerce and so it is important for modern financial institutions to support this technology and this movement. As a forward-looking fintech company, FinXP already works with several crypto businesses and we are proud to be working together with Utrust because they are a company that is innovating and that is making a difference in how cryptocurrencies are used”.

Utrust’s CEO, Sanja Kon, also commented: “Our vision has always been bridging the gap between digital currencies and traditional e-commerce and retail merchants. The partnership with FinXP will allow us to provide a better and faster settlement service to our customers, broadening as well the number of fiat currencies available.”

The post FinXP chosen as Banking Partner for Utrust first appeared on The Malta Business Weekly.

In addition to Bitcoin, Venmo has opened up the platform to Ethereum, Litecoin and Bitcoin Cash — generally considered to be among the mainstream of the digital currencies. Despite the social media proclaimed arrival of Doge Day Tuesday, the cryptocurrency Dogecoin is not on the list to be cleared for trade on Venmo. Crypto buyers will be able to publish their purchases or sells on the Venmo’s social feed as well.

Bitcoin has attracted massive interest, particularly in the last 18 months. Its price has held steadily above $50,000, and the value of other cryptocurrencies has been on the rise.

The digital currency trading platform Coinbase went public earlier this month, giving the company a valuation over more than $80 billion. Companies like Tesla now accept Bitcoin as a form of payment on its cars.

Venmo will only allow users to buy, sell or hold crypto currencies. The company is not allowing its users to send these currencies as a form of payment between users yet.

The post Venmo is into crypto, allowing users to buy Bitcoin, others first appeared on The Malta Business Weekly.

However, Tesla is not the company with the largest Bitcoin holdings. According to data presented by AksjeBloggen.com, MicroStrategy, Tesla, and Square, as the three leading public companies on this list, together hold $7.6bn in Bitcoins. MicroStrategy alone, as the biggest investor, has over $5bn in Bitcoin assets.

MicroStrategy Doubled Its Investment in Less than a Year, Tesla’s BTC Holdings Jumped to $2.6B in Two Months

Although Tesla made headlines in 2021 with its announcement of investing in Bitcoin, the business-intelligence software company MicroStrategy (NASDAQ: MSTR) holds over twice their amount of cryptocurrency.

According to the company’s financial report from March, MicroStrategy spent over $2.2bn to acquire 91,579 Bitcoins, which are now worth over $5bn. That means the company doubled its investment in less than a year. The downside is that, unlike Tesla, MicroStrategy used more than $1.6bn in convertible debt to finance them.

In February, the world’s sixth most valuable company, Tesla (NASDAQ: TSLA), announced it had purchased $1.5bn worth of Bitcoin for its balance sheet and that it would soon be accepting Bitcoin as a form of payment. Tesla ended 2020 with close to $19.4bn in cash and cash equivalents, meaning it invested less than 8% of its available capital in Bitcoin. As of this week, the value of the company’s Bitcoin holdings jumped by 75% to $2.6bn.

As the third-biggest Bitcoin buyer among public companies, Square Inc, spent $200 million to buy 8,027 Bitcoins. Today, the US financial services and digital payments company holds almost half a billion dollars in BTC assets.

The World’s Best Performing Asset With a 13,000% Five-Year Growth

As the top performer this year and in 2020, Bitcoin and cryptocurrencies are becoming difficult for big institutions to ignore. Since April 2016, Bitcoin’s price surged by a staggering 14,000%, which is 110 times better than the total return of the S&P 500 in the five-year period.

With big companies rushing to invest significant amounts of money into the world’s leading cryptocurrency, Bitcoin’s price is expected to continue rising.

The maximum and total amount of Bitcoins that can ever exist is 21 million. As of April, there were just over 2.3 million Bitcoins left to be mined. The surging demand for Bitcoins, while its available supply is shrinking, will make its price grow even higher.

The full story can be read here: https://aksjebloggen.com/microstrategy-tesla-and-square-hold-7-6b-in-bitcoins/

The post MicroStrategy, Tesla, and Square Hold $7.6B in Bitcoins first appeared on The Malta Business Weekly.

The warning from Nigel Green, CEO and founder of deVere Group, comes on the day Coinbase, the biggest cryptocurrency platform in the U.S., prepares for its public debut.  

It launches its initial public offering (IPO) on the Nasdaq under the symbol COIN starting on Wednesday.

On Tuesday on the deVere Crypto app, Bitcoin, the world’s largest cryptocurrency by market capitalization, hit all-time highs of $64,000.

Mr Green says: “Coinbase’s direct listing is a truly momentous day for the cryptoverse.

“Should it hit its private market valuation of $100 billion, it would immediately become one of the 85 most valuable companies in the U.S.

“Of course, this is driven by the fact the world’s two biggest cryptocurrencies, Bitcoin and Ethereum, to which Coinbase is intrinsically linked, have risen 800% and 1,300% respectively over the last year.”

He continues: “But with these astronomical price jumps, and as they become increasingly embedded in the global financial system, and, critically, as the direct listing on the Nasdaq will reach a wider investment base other than the usual crypto evangelists, investors must expect much greater government scrutiny.

“Governments, central banks and regulators will be keen to protect the currency status quo.

“We should expect considerably higher levels of regulation in the crypto market.  Indeed, I believe it is inevitable.”

Mr Green goes on to add: “However, Bitcoin investors shouldn’t be put off by the likelihood of greater government scrutiny.  

“Major draconian clampdowns are unlikely as digital currencies are increasingly regarded as the future of money – even by traditionalists.  They can’t put the genie back in the bottle.

“Indeed, proportionate regulation should be embraced. It would help protect investors, shore-up the market, tackle criminality, and reduce the potential possibility of disrupting global financial stability, as well as offering a potential long-term economic boost to those countries which introduce it.”

The deVere CEO concludes: “The Coinbase IPO underscores that cryptocurrencies in some form or another are here to stay – and the market is only set to grow.
 
“Because of this, investors should know that regulation will become a greater priority.”

The post Coinbase IPO: Bitcoin investors must expect more government scrutiny of crypto first appeared on The Malta Business Weekly.

According to data presented by Finaria.it, the global crypto market cap doubled in the last two months and hit $1.6trn in February.

Combined Value of all Cryptocurrencies Jumped by $600B in Three Weeks

In 2013, the global crypto market cap amounted to $10.6bn, revealed Statista and CoinMarketCap data. By the end of 2016, this figure rose to $17.7bn.

In 2017, the entire market exploded, with the combined value of all crypto coins surging by more than 3000% to $566.2bn. Statistics show this figure dipped to $128.8bn in 2018 and then recovered to $237.1bn in 2019.

However, last year witnessed the most impressive growth in the crypto market’s history, with digital coins performing as a store of value amid the COVID-19 crisis. The CoinMarketCap data show the combined market cap of all cryptocurrencies surged by 220% year-over-year to $762.9bn in 2020.

The global crypto market cap continued growing strongly in the first weeks of 2021 and hit almost $1 trillion in January. Statistics show this figure increased by more than $600bn in the next three weeks.

Ethereum Soared by 1400% in a Year, Bitcoin’s Market Cap Skyrocketed to $1 Trillion

Although the entire crypto market boomed in 2020, some digital coins performed much better than the others. Statistics show Ethereum witnessed the most impressive market cap growth last year, rising from $14.2bn in January to $68.8bn in December. However, the price of the world’s second-largest cryptocurrency exploded in 2021 and Ethereum`s market cap hit $216.4bn last week, a 1400% increase year-over-year.

The market cap of the world’s leading crypto coin, Bitcoin, skyrocketed to $1 trillion last week, a 600% increase in a year.

As the third-largest cryptocurrency by market cap, the combined value of all Tether coins surged by more than 700% in the last year. In January 2020, the market cap of the world’s most used stable coin amounted to $4.10bn. This figure jumped to $33.5 bn last week.

The full story can be read here

The post Global Crypto market cap doubled and hit $1.6t in February first appeared on The Malta Business Weekly.

The family-owned retailer, who introduced ROLEX to Malta in the 1930s, has embraced the demand for swift and secure transactions via new technology and is paving the way in local crypto-payments, thanks to Malta-based Instacoins.

“Edwards Lowell has always positioned itself at the forefront of consumer demand and technology. We are proud of our partnership with Instacoins, as we are now able to promise our esteemed customers a safe and secure shopping experience through crypto. We believe this is the way of the future,” says Malcolm Lowell, Edwards Lowell Managing Director.

Instacoins Founder Adrian Kreter says: “There is an ever-growing demographic who wants to use cryptocurrency to finance their purchases – from everyday goods to luxury items. Merchants have, however, generally been reluctant to offer this option to their customers,” says Adrian Kreter, Instacoins Founder.

“It is with great pleasure that Instacoins welcomes on board Edwards Lowell, who have once again shown they are the frontrunners not only in the luxury space but also in offering cryptocurrency payment options,” adds Mr Kreter.

Instacoins Ltd. is a Maltese-registered cryptocurrency brokerage. Its mission is to provide a simple and secure buying process. Through this partnership, Edwards Lowell clients will be able to use Instacoins as a crypto-to-fiat gateway, when shopping in any of their St Julian’s, Valletta, Sliema and Portomaso outlets .

If you would like to know more about this partnership, visit www.instacoins.com/news or get in touch with Edwards Lowell via e-mail info@elcol.com.

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