Dispatch #108: Europe Nears Landmark Crypto Legislation

Oct 07, 2022 4 min read

Dispatch

In this patch of your weekly Dispatch:

Europe’s big crypto bill
Kim Kardashian in the SEC cross-hairs
October to Uptober?

The Big Idea

Here Comes MiCА

For years, Europe has been working towards comprehensive digital asset legislation. And as of Wednesday, the full legal text of that legislation has been agreed upon by members of the European Union.

The text that was just agreed to was finalized in June after several key political deals were struck, and the voting members this week signed off on that text without amendment.

Some of the focuses for MiCA include a licensing setup for infrastructure companies like exchanges and wallets, as well as reserve requirements for stablecoins. Another related law was approved that forces wallet providers to do KYC on their users’ identities – much to the chagrin of some privacy advocates. The next step is for the text to be formally agreed to in the European Parliament before ultimately taking effect in 2024.

Much can (and will) be said and written about the rules. Are they a model for other parts of the world? Are they restrictive in a way that will see the industry abandon Europe? Whatever the case, the rules are here, and the next generation of European crypto will be shaped by them.

The Latest In…

Uptober Again?

Historically speaking, September tends to be one of the worst months for markets, and October – one of the best. Certainly, this is the case for Bitcoin, which has only had two down Octobers in its history. Surely with all the macro pressure aligned against us, however, we can’t expect another Uptober? Not so fast. The US stock market got out to a blistering start this week, with the Dow Jones up over 700 points twice in a row for the first time. Still, by Wednesday, a little more uncertainty crept back in on early data showing that labor markets remained strong in September, reducing the chances for a Fed pivot anytime soon. Still, we’d be lying if we said we didn’t love a little green to start the month.

The Latest In…

Celebrity No-No’s

Across US regulatory agencies, 2022 has been a year of enforcement actions. The CFTC shocked the crypto industry (which had generally viewed it as comparatively benevolent) when it recently went after a DAO. It surprised just about no one when Gary Gensler’s SEC settled with Kim Kardashian for her promotion of EthereumMax. A nice announcement video followed by a quick appearance on CNBC had some speculating that it was more publicity stunt than substance. And we will lie if we said we haven’t been waiting for a Kim K cameo in Dispatch.

The Latest In…

NFTs and the Metaverse

Last week we noted some signs of life in the NFT space, and this week brought further evidence that this community remains excited and engaged.

Data Vault Holdings is trying to get US approval for NFTs of election memorabilia.
The Bored Ape Yacht Club unveiled a community council to help continue to expand what BAYC can do.
Finally, Japan’s Prime Minister Fumio Kishida discussed the country’s plans for investing in areas such as NFTs and the metaverse. Pretty cool, eh?

The Latest In…

Antoni Meets Raoul

Few interviews have been more personal and insightful than our co-founder Antoni’s encounter with Raoul Pal – the legendary (and retired, god we’re envious) hedge fund manager. In this Real Vision show, the two go over everything that’s shaped their careers – Antoni’s path from Parliament to fintech founder, the biggest opportunities for crypto companies right now, and the metaverse, of course.

You need to watch it. It’s free.

The Week’s Most Interesting Data Story

Bitcoin Difficulty Per Issuance

One of the things that make Bitcoin and crypto so remarkable is the entirely new world of on-chain analyses. It’s not every day, however, that someone innovates a new model that helps us understand Bitcoin better. One research has proposed a new pricing model that tries to reimagine Bitcoin’s cost of production, specifically factoring in changes in Bitcoin mining difficulty. It took no time for the novel approach to make it live to Glassnode.