In a historic move, the U.S. Securities and Exchange Commission (SEC) has given the green light for the listing and trading of several spot bitcoin exchange-traded products (ETPs), marking a significant shift in its stance towards digital assets. This decision comes after a prolonged period of hesitation and disapprovals under the leadership of former Chair Jay Clayton.

🚨BREAKING🚨

Bitcoin ETFs Likely Approved by the SEC

It certainly looks like the #Bitcoin ETF Approval order had hit the SEC website but the link is no longer working. That said, this document looks accurate to me.https://t.co/NhJueWNPJ0 pic.twitter.com/W0ipnlg3j1

— James Seyffart (@JSeyff) January 10, 2024

The turning point for the SEC’s decision was a recent ruling by the U.S. Court of Appeals for the District of Columbia. The court criticized the Commission for failing to provide a satisfactory explanation for rejecting Grayscale’s proposed ETP*. This verdict led to the Commission reevaluating its position and ultimately approving the new ETP listings.

The SEC emphasizes that its approval is strictly limited to ETPs holding bitcoin and does not imply endorsement of bitcoin or any other crypto assets. The Commission remains clear that it is “merit neutral” and its primary focus is on ensuring investor protection and public interest under the guidelines of the Exchange Act and its regulations.

Today’s approval introduces stringent investor safeguards. Key measures include mandatory comprehensive disclosure for ETP sponsors, the requirement for these products to be listed on registered national securities exchanges, and the application of existing rules and standards of conduct in the purchase and sale of approved ETPs. This encompasses Regulation Best Interest for broker-dealers and a fiduciary duty under the Investment Advisers Act.

Furthermore, the SEC is concurrently reviewing registration statements for 10 spot bitcoin ETPs, aiming to level the playing field for issuers and foster fairness and competition in the market. This step echoes the Commission’s past experience in overseeing non-security commodity ETPs like precious metals, dating back to 2004.

Despite the approval, the Commission maintains a cautious stance, noting that bitcoin is predominantly a speculative and volatile asset associated with various illicit activities. It underscores that the approval of spot bitcoin ETP shares does not constitute an endorsement of bitcoin. Investors are advised to remain vigilant about the risks associated with bitcoin and crypto-related products.

The decision is a milestone in the evolving narrative of cryptocurrency regulation, reflecting the Commission’s commitment to adapting its approaches in the face of changing market dynamics while upholding its mandate to protect investors and the integrity of the securities markets.

AI generated image @ DeepInfra

The introduction of P2P payments is expected to enhance the functionality of X, creating new opportunities for commerce and showcasing the convenience of integrating multiple aspects of digital life into one place. This move positions X to compete with other established tech firms and financial services, including those like PayPal, which Elon Musk had a role in creating.

X’s focus on becoming an ‘everything app’ is not limited to P2P payments. The platform is also enhancing its user and advertising experience with the use of artificial intelligence (AI). This includes improvements in features like See Similar Posts and the introduction of See Dissimilar Posts, leveraging user activity to present content that aligns with or challenges their perspectives.

In addition to financial services, X continues to invest in creators and content partnerships, aiming to attract new users and fuel advertising efforts. The company emphasizes its commitment to being a major platform for influential and curious individuals worldwide, who use it to follow their passions and engage with various cultural events and movements.

Fintech valuations boomed in 2020 and 2021, but are now recovering amid a tightening of capital investment.

Augmentum, which backs UK challenger bank Monese, UK SME lender Iwoca and German technology rental platform Grover, said the value of its top 10 investments rose from £182m to £199m in the six months to the end of September.

Tim Levene, chief executive of Augmentum Fintech, said Augmentum had not invested in new start-ups during the period as the cost of investment was too high.

Augmentum increased its investment in Zopa, raising its stake from £30 million to £34 million,
and in Tide, from £36 million to £41 million. However, the value of its stake in Grover was reduced from £43 million to £41 million.

Augmentum’s Chairman, Levene, noted that the company refrained from making new investments in startups during the period due to elevated pricing.

He characterized 2023 as a “tale of two halves,” with the first half experiencing lower deal activity, but the second half witnessing an uptick with the emergence of higher-quality companies in the market.

Levene painted a cautiously upbeat picture moving forward but said that 2024 and 2025 could be “really strong vintages” for venture funds that get it right.

According to Reuters, the Israel-based company will not only make the cuts but also close some of its offices in Asia. The reason for this is a scandal involving a fake letter of credit used as collateral in a deal with an insurer.

The offices the company is expected to close are in Tokyo, Hong Kong and Seoul, but it will retain employees in Tel Aviv, New York, London, Dubai and Bermuda.

“In order to solidify the foundation of the company and reassure the industry, leadership must return its focus to core services while reducing overall costs, including parting ways with some of our employees”, Vesttoo said in an emailed statement to Reuters.

Vesttoo is currently conducting an internal and external analysis of the events leading up to the first fraudulent credential report. The size of the fintech company was 200 employees.

“These are painful, but important decisions that we must make at this time. Our focus remains on regaining our footing and emerging from this challenge stronger than before”, the company continued.

The scandal surrounding the fraud has changed and halted the company’s plans to raise about $200 million in late-stage funding that would have valued the firm at nearly $2 billion.

When selecting FinTech software, firms weigh a variety of factors including cost, scalability, potential for APIs, consistently high performance, compliance, security, and time to market. But the programming languages used most significantly influence these factors. Like anything else, programming languages have their advantages and disadvantages. Some of them improve performance, adaptability and security.

Today we’ve chosen to introduce you to key programming languages needed in the FinTech sector according to Analytics Insights.

Key Programming Languages in FinTech

Java
Being a well-known language with an extensive library of third-party components, Java is used in many Fintech systems because it facilitates the creation of complex Fintech software.

Python
Given that Python is among the most widely used programming languages, it is not surprising that it has had a dramatic impact on the Fintech sector. According to PyPI’s analysis of Google searches, Python is the most widely used programming language in the world.

Golang
Golang, commonly known as Go, is an open source programming language created by Google in 2009. It is quickly displacing other programming languages among fintech companies that need to launch soon and have a clear, scalable, and simple backend.

Ruby
Did you know that many startups in the digital finance sector use Ruby in combination with the Ruby on Rails framework for its productivity and ease of use? Some major reasons why developers prefer it are the security protections built into the framework and the simplicity of the language that saves time and money.

Scala
High-end distributed software systems used in financial products often process large amounts of data. Because it’s so productive and helps engineers shorten their source code, Scala is an excellent choice for processing them. There are at least two or three departures from Java. Additionally, the most popular Big Data frameworks that are vital to the FinTech sector have been developed using Scala.

It was a difficult period, but…

After ten years of monumental growth, fintech is experiencing its first more difficult period. Having already been hit by the tech downturn, layoffs, the cost-of-living crisis, and the looming recession, the news from the Wall Street Journal that fintech companies underperformed financials and tech stocks in 2022 makes for rather uncomfortable reading, which unfortunately wouldn’t surprise anyone familiar with it.

Vulnerability to high interest rates, the removal of pandemic catalysts and a focus on businesses that are profitable or have a clear path to profitability are some of the reasons for the poor performance of fintech stocks.

Fintech has already changed the business and personal finances of millions of people around the world. Alongside innovations that have improved legacy systems in banks, and B2B technologies that have increased security, privacy and risk for consumers, consider the millions of people with Revolut or Monzo cards in their wallets.

As well, we might consider the companies that have survived thanks to SME funding platforms, or for the merchants using digital payment devices. Fintech is having an even bigger impact in emerging markets through online money transfers, microloans and mobile payments.

According to experts, despite economic difficulties, fintech will continue to attract huge venture funding in 2023.

Fintech companies predispose healthier businesses

Now, more than ever, every dollar counts. Today, fintech companies can add tremendous value in improving companies’ financial back-office functions and run healthier businesses.

Crises create opportunities

More forecasts suggest that the current economic environment will make it difficult for fintech entrepreneurs to raise capital unless they can demonstrate attractiveness. At the same time, crises create opportunities. Entrepreneurs are using technology to help consumers pay their debts more efficiently, get faster mortgage approvals, and access BNPL’s services to manage their personal and/or business finances.
There’s always a chance for proper business

Although fintech stocks are down, there are still significant opportunities for successful businesses. The outliers and risks are those that can succeed in challenging economic conditions, those that create businesses designed for long-term growth and scale.

Nexo Pro is a game-changer for the individual trader as it introduces sophisticated tools – such as the advanced TWAP (Time-Weighted Average Price) orders used by large institutions – into the everyday trading stack of the non-technical user. In another industry-first, Nexo Pro combines its own order book with those of world-leading trading venues and market makers, to give users access to the broad market, both in a single user interface and via API.

Key features: 

• Efficient access to aggregated spot and futures liquidity from the 10+ biggest crypto trading venues, using a single account. Near-zero slippage of trade executions, both when buying and selling.
• Integration with all existing Nexo services (Earn, Spend, Borrow). Seamless transition from earning yield on cryptocurrencies to trading them, and vice-versa, with free and instant asset transfers.
• Limit and market orders as well as Take Profit and Stop Loss functionalities, with trailing, OCO, and Smart orders and many more to be added soon.
• Short and long margin* trading with up to 5x leverage on 90+ market pairs. ● Out-of-the-box strategies such as built-in TWAP orders and basis trading for enhanced alpha-generation.
• Perpetual futures contracts settled in USDT with the ability to open both long and short positions (incl. leverage) to place directional plays or hedge individual positions or entire portfolios.
• API gateways for advanced users – an additional interface to access deep liquidity.
• Reserves audited in real time, top-tier platform security, and $775M custodial insurance through partnerships with industry-leading custodians.

Nexo Pro is available globally in a single intuitive interface and through the REST & WebSocket APIs. Initially accessible on desktop, Nexo Pro will soon launch on mobile with a private beta of the Nexo Pro app.

“Nexo Pro is the result of a long exploration in the world of retail and institutional trading. We’ve tried and tested its underlying features – the best prices across 420 liquidity pools, the tightest bid/ask spread, near-zero slippage, automated TWAP and basis trading – as part of our institutional prime brokerage platform Nexo Prime. We are now passing this most advanced trading performance to our 5M+ customers at near zero cost and are set to revolutionize retail trading globally,” 

said Yasen Yankov, Nexo’s VP of Product Development.

“Nexo Pro is a gateway to professional-like trading for retail customers. We are the first platform to offer institutional-grade liquidity aggregation with this many venues as pure-play exchanges usually prefer to settle exclusively within their own order books. As a crypto lender, Nexo is able to source liquidity from 3,000 order books and guarantee our customers the best possible quote for their spot, margin, or futures trades, so they don’t have to go looking for it themselves. We expect Nexo Pro to quickly become the first choice for those striving to outperform the average trader, and do so in the most secure way,” 

said Kosta Kantchev, Co-Founder and Executive Chairman of Nexo.

With the launch of this advanced trading platform, Nexo – which now boasts over five million users – marks yet another milestone to solidify its position as the only 360-degree crypto super-app with wallet, lending, custody, and professional trading capabilities, among other verticals in its roadmap.

In the coming weeks, Nexo will introduce additional token utilities giving NEXO Token holders the ability to reduce trading fees and pay those using $NEXO. By building on top of its existing benefits (lower borrowing rates, higher savings yields, free withdrawals), the NEXO Token will combine the utilities of both exchange and lending tokens into a single asset, creating extraordinary value for holders. This upgrade will start a new chapter in the evolution of the token and set the stage for the next edition of Nexonomics, the company’s program aimed at driving value and utility for its native token.

So far in 2022, Nexo has launched the Nexo Card, a first-of-its-kind crypto-backed card in partnership with Mastercard and DiPocket; rolled out its institutional-grade trading and custody platform Nexo Prime; invested in over 50 early-stage web3 companies through Nexo Ventures. Looking ahead, Nexo will continue to expand its product lineup into new markets and uncharted, decentralized crypto territories.

*Margin and futures are subject to certain geographic limitations and eligibility criteria. 

Risk Disclosure and Important Information: The information provided in this release should not be regarded as investment or financial advice. Cryptocurrency trading combined with high market volatility may expose you to risk.

The Nexo Card is the first card in the world that allows users to spend without having to sell their digital assets. Nexo has teamed up with DiPocket, Nexo’s card issuer for the new offering in Europe, and Mastercard as the tech company and payment network, to offer various innovative features for the Nexo Card:

• Your Crypto Stays: The Nexo Card is linked to a Nexo-provided, crypto-backed credit line that starts and stays at 0% APR*. It allows cardholders to use their digital assets as collateral rather than selling them. The credit line is dynamic and can use multiple assets as collateral, including but not limited to Bitcoin, Ethereum, and Tether.
• Zero Fees: The card requires no minimum repayments, monthly, or inactivity fees. There are no FX fees for up to €20,000 per month.
• 2% Crypto Rewards: Every Nexo Card transaction is equipped with instant crypto cashback, paid out in Bitcoin or in Nexo’s native NEXO Token. This means users not only can retain ownership of their digital assets, but they also earn up to 2% back in free cryptocurrency with each purchase, which becomes automatically available in their Nexo account.
• Seamless Access: Available both in virtual and physical form, the Nexo Card comes with direct Apple Pay and Google Pay integrations. Cardholders can add the Nexo Card to their preferred mobile wallet from the Nexo Wallet App with a few taps. Additional virtual cards come at no cost.

Thanks to the advanced infrastructure provided by DiPocket and Mastercard, the Nexo Card will be accepted by 92 million merchants worldwide where Mastercard is accepted, allowing investors to spend up to 90% of the fiat value of their crypto in seconds without selling any of it.

Antoni Trenchev, Co-founder and Managing Partner at Nexo, commented:

“Launching the Nexo Card in Europe in partnership with Mastercard and DiPocket is a big milestone for us and the latest proof of the immense synergy between the existing financial network and digital assets. This unique product will allow millions of people, first in Europe and then worldwide, to spend instantly without having to give up the potential of their cryptocurrencies, thus offering unprecedented everyday utility for the emerging asset class.”

Fedele Di Maggio, Co-founder and CEO at DiPocket, said:

“DiPocket is delighted to have been selected as the issuer of the Nexo Card, a truly innovative solution designed to fulfill the needs of millions of investors in digital assets. Our partnership in this project with Nexo and Mastercard is a distinctive example of how DiPocket’s embedded finance technology enables visionary companies to deliver value and convenience to their customers.”

Raj Dhamodharan, Mastercard’s Head of Crypto and Blockchain Products and Partnerships, said:

“Mastercard believes that digital assets are revolutionizing the financial landscape and we are leading in innovation with programs like our partnership with Nexo to deliver people new and one-of-a-kind choices in how they pay and activate their crypto holdings. We’re excited to continue to innovate in payments by making digital assets more accessible across the ecosystem.”

Earlier this year, Nexo completed a partial roll-out of the Nexo Card in select European countries, targeting a focus group that collectively generated extraordinary interest and transaction volume, proving there is high demand for this financial product. In the coming stages of the Nexo Card’s development, the company is planning to add a debit-type card functionality and expand the offering internationally, among many other upgrades.

“We are pleased to deliver strong third-quarter results, generating record revenue and continuing to expand our partnerships. We remain focused on growing our presence across the unsecured consumer, auto, credit card, point-of-sale, and real estate sectors, and have plans to expand by offering credit solutions for mortgages, insurance, and other data-rich markets. In the immediate future, Pagaya is hyper-focused on integrating its network with banks and Fintech companies across the United States, delivering a comprehensive technology and capital solution that enables them to grow their customer ecosystem in a capital efficient manner.”

Third Quarter 2021 Financial Highlights include:

• $137 million in revenue for the third quarter ending September 30, 2021
• $320 million year-to-date revenue through Q3, over 220% higher than full-year 2020 revenue
• Strong momentum continuing into Q4 2021

According to CoinGecko, Bitcoin is down nearly 14.6% in the last seven days. After hitting an all-time high of $69,044 on Nov. 10, bitcoin fell below $60,000 on Tuesday. It’s currently trading at around $56,201.

Ether is down nearly 12.4% in the last seven days and is currently trading at around $4,085.

U.S. to sell cryptocurrency worth $56 million after seizure in BitConnect case
On Tuesday, authorities announced that the U.S. Justice Department will sell off $56 million worth of cryptocurrency it seized as part of a case against a man who promoted crypto lending program BitConnect. The proceeds will be used to reimburse victims of the BitConnect fraud.

BitConnect is alleged to have scammed people in the U.S. and abroad out of more than $2 billion worth of bitcoin from January 2017 to January 2018.

Crypto.com buys naming rights to Staples Center in a $700 million deal

Crypto.com secured a 20-year contract deal worth $700 million with the Anschutz Entertainment Group (AEG) to buy the naming rights to the Staples Center in Los Angeles, home to the Los Angeles Lakers.

The name change will take effect on Christmas Day, when the Lakers host the Brooklyn Nets.

After the deal was announced Tuesday night, Crypto.com’s coin, called CRO, rallied. And on Sunday, it hit an all-time high of 79 cents.

Lawmakers introduce a bipartisan bill to address crypto tax reporting requirement

After President Joe Biden signed the $1.2 trillion bipartisan infrastructure bill into law on Nov. 15, a bipartisan group of House representatives introduced a bill to amend a cryptocurrency tax provision on Thursday.

The provision would require each “broker,” which will mainly be exchanges, to report their cryptocurrency gains in a type of 1099 form. “Brokers” will also have to disclose the names and addresses of their customers.

On Friday, former secretary of state Hillary Clinton spoke about cryptocurrencies at the Bloomberg New Economy Forum.

Clinton mentioned that “the rise of cryptocurrency” is an area that she hopes “nation-states start paying greater attention to.”

Citadel CEO Ken Griffin outbids ConstitutionDAO

On Thursday, billionaire Ken Griffin, CEO of hedge fund Citadel, paid $43.2 million for a copy of the U.S. Constitution at a Sotheby’s auction. Sotheby’s estimated the copy would sell for $15 million to $20 million.

He outbid ConstitutionDAO, a group of cryptocurrency investors who planned to buy the document. The DAO raised over $40 million within days for the effort.

El Salvador plans to create a ‘Bitcoin City’ and raise $1 billion via a ‘Bitcoin Bond’

El Salvador plans to construct a “Bitcoin City” funded by the cryptocurrency, the country’s President Nayib Bukele announced Saturday.

The city will be built near Conchagua volcano in south eastern El Salvador and will have no taxes except from value-added tax, which is a levy on goods and services at each step along the supply chain. Construction will begin in 2022.

El Salvador plans to raise about $1 billion through a “Bitcoin Bond.” The country plans to partner with Blockstream, a digital assets infrastructure company, to raise the funds, half of which will be used to buy bitcoin.