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UK Financial Conduct Authority Allows E-money Issuance and Services to Resume

On June 30, 2020, Wirecard Card Solutions (WCS), a subsidiary of the German payment giant and credit card issuer Wirecard, issued a statement saying that the British Financial Conduct Authority (FCA) allowed WCS to resume issuing electronic money (e-money) and providing payment services . This part of the activity restriction has been lifted today.

Comments:

On June 26, the FCA issued a notice requiring Wirecard's subsidiary WCS not to dispose of any assets or funds, or to conduct any regulated activities.

Separately, Wirecard filed for bankruptcy in a Munich court after disclosing a $2.1 billion financial loophole, and is evaluating whether to file for bankruptcy proceedings for its subsidiary.

At present, many developing countries are still not sufficiently punished for financial fraud by listed companies. Taking my country as an example, the number of listed companies with auditors signing "qualified opinions" is relatively large. Taking Kangmei Pharmaceutical as an example, Kangmei Pharmaceutical’s financial fraud is only 600,000 yuan in administrative penalties. In the future, blockchain technology will still be needed to assist in improving regulatory loopholes and further improving the legal system.

The Bank of Japan released a report to assess the feasibility of the central bank's digital asset technology

On July 3, 2020, the Bank of Japan stated in a research report that it will evaluate the feasibility of the central bank's digital currency (CBDC) from a technical point of view, and cooperate with other central banks and related institutions to consider the introduction of the central bank's digital currency (CBDC).

Comments:

Affected by the development of Libra by Facebook, central banks of various countries have been actively promoting the research and development of central bank digital currency (CBDC) in the past year.

• The promotion of CBDC has strong strategic significance, mainly in the following two points:

• (2) CBDC is equivalent to cash in circulation in the country. Since the cash does not endorse the holder, anyone who picks up the cash can use it. Therefore, an interest-free CBDC is needed to replace cash transactions, thereby improving the efficiency of daily retail settlement.

Total USDC Supply Exceeds $1 Billion

According to network data, the total supply of the stablecoin USDC exceeded $1 billion on July 1. In June of this year, the supply of USDC surged, jumping from 730,920,001 to 1,002,228,740, an increase of 93% compared with the beginning of the year.

Comments:

The total scale of DeFi pledged digital assets surged to US$1.8 billion in June this year. The main reason is that the governance tokens of a series of DeFi projects led by Compound were issued externally, which led to a surge in investors' demand for USDC.

Not only USDC, USDT has a total market value of more than 10 billion US dollars.

Because these DeFi projects do not meet the needs of market users for lending funds in essence, but more to meet speculative needs, so whether the subsequent liquidity needs of stablecoins can be maintained is still open to question.

Crypto asset investment app B21 expands to Indian market

On June 23, people familiar with the matter revealed that PayPal plans to launch a direct sales service for digital assets to its 325 million users. It is not yet clear which digital assets PayPal will offer direct sales services, and how much. Industry insiders said that PayPal is expected to "work with multiple exchanges to obtain liquidity."

Comments:

The addition of PayPal is actually not unexpected. On the one hand, when Facebook launched the Libra public chain in 2018, PayPal was the founding node at that time. Later, Paypal announced its withdrawal midway, which was also affected by relevant US policies.

On the other hand, it is not difficult to infer that paypal itself has a tendency towards blockchain and digital assets. As a payment tool, PayPal has similarities with competitors such as venmo.