Daily Digest - 11th May 2023

Headlines

▌The IRS Files Claims Worth $44 Billion Against FTX Bankruptcy

The Internal Revenue Service (IRS) has filed claims worth nearly $44 billion against the estate of bankrupt cryptocurrency exchange FTX and its affiliated entities, with the IRS filing 45 claims against FTX companies, including West Realm Shires (FTX. US legal entity), Ledger Holdings (parent company of LedgerX and LedgerPrime), and Blockfolio, among others.

Policies

▌EU member states support the sharing of encrypted currency data held by citizens with tax authorities

The unanimous support of EU member states for sharing data with tax authorities on citizens' holdings of cryptocurrencies could lead to a formal agreement on the law next week, a senior EU official said. In 2022, the European Commission proposed to curb tax evasion using cryptocurrencies through an eighth amendment to the Administrative Cooperation Directive, expanding existing laws designed to prevent taxpayers from hiding taxable assets in hidden overseas bank accounts.

Blockchain Application

▌The NFT project Boss Beauties received a donation of $250,000 from Barbie and will launch the NFT series on the Flow blockchain

The NFT project Boss Beauties announced on social media that it has reached a partnership with Barbie to create a unique NFT. The two parties will launch an NFT series on the Flow blockchain to commemorate the rich history of Barbie. It is reported that the digital collection will be released in July 2023 and divided into four rarity levels: common, super rare, extremely rare, and exclusive. Additionally, Barbie announced a $250,000 donation to the Barbie Dream Gap Project and the Boss Beauties Foundation.

Cryptocurrency

▌UAE Royal Group shorted billions of dollars in US stocks and increased investment in cryptocurrencies

Emirates Royal Group has taken billions of dollars in short positions in US stocks amid fears that a recession will weigh on markets. According to a report from Bloomberg, the investment firm became bearish on stocks at the start of the year and shifted its portfolio toward short-term Treasuries. It also ramped up investments in commodities and cryptocurrencies. It was not immediately clear which stocks or sectors the firm was shorting. Royal Group, a conglomerate that helps manage one of the world's largest family fortunes, will seek to increase its exposure to the US once valuations improve and the Federal Reserve signals it is preparing to cut interest rates, the report said.

▌Standard Chartered to launch digital asset custody service in Dubai

Standard Chartered has announced plans to launch digital asset custody services in the Dubai International Financial Center (DIFC), subject to regulatory approval. The solution will be aimed at institutional clients around the world and will be delivered by its subsidiary Zodia Custody. Zodia Custody started out as a joint venture with Northern Trust, which holds a 5% stake.