Appold Market Watch - Week ending 3 January 2025

Market Update & Industry News - Week ending 3 January 2025

🔷 The EU’s Markets in Crypto-Assets (MiCA) regulation became effective on 30 December 2024, providing a legal framework for digital assets. It mandates licensing, governance standards, and reserves for service providers while enhancing transparency and consumer protection. MiCA excludes NFTs, DeFi, and other areas but has been enforced to boost investor confidence and blockchain adoption.

Appold view: MiCA’s enforcement marks a pivotal step for EU crypto regulation. While compliance windows vary depending on the services offered, many firms remain underprepared, risking fines and market exclusion as key deadlines approach.

🔷 Valencia's Provincial Council launched a blockchain-based digital currency to boost rural commerce and combat depopulation in remote areas. The initiative rewards residents for positive actions, with tokens redeemable at local businesses through a mobile app.

Appold view: It’s unclear which blockchain has been used, but this certainly highlights a growing trend of using decentralised technology for local economic empowerment.

🔷 The UK’s Financial Conduct Authority issued 1,702 alerts on illegal digital asset advertisements between October 2023 and October 2024. The Financial Times reported that allegedly only 54% of the flagged ads were removed, leaving nearly half still active. The FCA requires all digital asset advertisers to have regulatory approval in an alleged move to protect consumers.

Appold view: It’s concerning that nearly half are apparently still active, and it raises questions about the effectiveness of its consumer protection measures. 

🔷 The co-founder of Terraform Labs was extradited from Montenegro to the U.S., where he pleaded not guilty to charges including securities fraud, wire fraud, commodities fraud, and money laundering conspiracy. 

Appold view: The process has taken around 21 months to complete and highlights the ongoing efforts to hold crypto executives accountable for high-profile alleged losses.

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