Daily Digest - 22 November 2022

Headlines

▌Genesis Warns Without Funds May File for Bankruptcy

Citing people familiar with the matter, Bloomberg reported that Genesis is struggling to raise cash for its lending unit and warned potential investors that if it fails to do so, it may file for bankruptcy. The firms have been facing a liquidity squeeze since FTX filed for bankruptcy protection earlier this month and have been trying to raise at least $1 billion, including money from Binance, according to Bloomberg. Bloomberg cited a statement from Genesis saying it had no "immediate" plans to file for bankruptcy and was working to resolve the current situation.

Policy

▌Sub-Saharan African Central Bank Governors Discuss Cross-Border CBDC

The Central Bank of Kenya hosted a meeting of the Sub-Saharan Africa Advisory Group of the Financial Stability Board (FSB). Several of the 13 central banks in attendance are working on or have launched central bank digital currencies (CBDCs). But the topic of discussion is not the use of domestic CBDC, but how to use CBDC for cross-border payments. Improving the efficiency of cross-border payments is an important initiative of the FSB. The FSB statement said the panel discussed initiatives to strengthen cross-border payments in the region, including the possible use of central bank digital currencies, while noting the importance of complying with Anti-Money Laundering and Combating the Financing of Terrorism (AML-CFT) standards. Among the countries present, the South African Reserve Bank was openly engaged in cross-border CBDC initiatives, namely Singapore, Malaysia and Australia’s Central Bank’s Project Dunbar. Most other CBDC research in South Africa has focused on wholesale or interbank use of CBDC.

▌Kenya Proposes to Tax Cryptocurrencies

Amendments to the Capital Markets Act to impose income tax on Kenyan cryptocurrency traders have been submitted to Parliament for consideration. "The income tax law applies to cryptocurrencies held for less than 12 months, and the capital gains tax law applies to cryptocurrencies held for more than 12 months," the bill said. The bill also plans to charge all fees from cryptocurrency transactions. The 20% excise tax is deducted from the tax and requires cryptocurrency holders to submit information to the Capital Markets Authority (CMA), including the date of purchase and sale of cryptocurrencies. The Capital Markets (Amendment) Act 2022 aims to tax cryptocurrency exchanges and digital wallets and impose a transaction tax similar to the excise tax on bank transactions. According to a June report by the United Nations Conference on Trade and Development (UNCTAD), 8.5 percent of Kenya’s population, or 4.25 million people, own cryptocurrencies.

▌Coinbase Confirms That It Is Safe to Hold About 635,000 BTC on Behalf of Grayscale

Coinbase confirmed that it is safe to hold about 635,000 BTC on behalf of Grayscale Bitcoin Trust. Coinbase periodically performs "on-chain verification" to confirm the existence and security of a certain amount of BTC.

▌Texas Launches Investigation Into Tom Brady and Steph Curry Over FTX Promotion

The fallout from the failed crypto exchange FTX continues, and this time the Texas State Securities Board is involved. The multi-billion dollar business collapsed into bankruptcy this month, causing millions of its clients to lose money.

The Texas regulator is scrutinizing payments received by NFL legend Tom Brady and NBA superstar Steph Curry from FTX for endorsements, along with what disclosures were made and how accessible they were to retail investors.

▌JPMorgan Officially Registers a Cryptocurrency Wallet Trademark

American banking giant JPMorgan (NYSE: JPM) continues to advance in the cryptocurrency sector, with the lender showing its intent to explore different products through trademark filings. In this line, the institution has registered a trademark with the United States Patent and Trademark Office (USPTO) for ‘J.P. MORGAN WALLET,’ seeking to offer a crypto wallet for digital currency exchange and transfer. The trademark was granted by USPTO on November 15.

▌BTC fell below $16,000

The market shows that BTC has fallen below $16,000 and is now at $15,998.5, with an intraday drop of 3.38%. The market fluctuates greatly, so please do a good job in risk control.