Europe remains fertile ground for the cryptocurrency ecosystem to flourish compared with harsher regulatory environments, according to prominent speakers at Blockchain Expo Europe 2023 in Amsterdam.
Cointelegraph attended the event held at the RAI Amsterdam convention center for the second year running, with the Blockchain Expo forming part of a larger Tech Expo event being hosted in the Netherlands.
The event has typically attracted prominent mainstream industry players from the financial world to showcase how blockchain technology is being leveraged to power innovative new products and solutions across a myriad of industries.
From finance, logistics, healthcare and marketing, blockchain technology and Web3 functionality continues to be a key growth area for different industry players.
MiCA bodes well for institutional adoption
Regulatory matters remain front and center, as was evident in a fireside chat featuring Coinbase institutional sales co-head James Morek and Zodia Markets co-founder Nick Philpott.
Philpott described the European Union’s Markets in Crypto-Assets (MiCA) regulations as a progressive regulatory measure to guide the growth of the sector while protecting users.
“Institutions feel more comfortable knowing that there is a framework within which they can operate, which is at odds with what is happening in countries like America.”
Philpott’s reference to the United States’ regulatory landscape centered on a cloud of uncertainty over the cryptocurrency ecosystem. This has been primarily driven by the Securities and Exchange Commission’s separate enforcement actions against key industry players, including Coinbase, Ripple and Binance.US, for alleged securities violations.
Morek, who heads up Coinbase’s institutional sales in the EMEA and APAC regions, also highlighted the establishment of clear regulatory parameters across the EU and in the United Kingdom, which have helped crypto-related firms continue to do business.
Off-the-record conversations also suggest that major players like Coinbase continue attracting interest from institutional clients looking to gain exposure or custody of certain cryptocurrencies outside the United States.
This includes many potential clients, ranging from traditional fund managers, large corporations, private banks and a variety of businesses. Morek told Cointelegraph that Coinbase currently serves over 1,300 institutional customers globally.
Legal frameworks that have long allowed companies to have both onshore and offshore entities continue to be an important element in allowing cryptocurrency exchanges and companies to offer services in different jurisdictions.
Philpott also highlighted the United Arab Emirates as a fast-growing crypto and Web3 hub actively looking to attract the biggest firms in the industry. Binance has already established a foothold in the UAE, while Coinbase was reportedly exploring setting up a base of operations in the jurisdiction earlier in 2023.
A tokenized future
Tokenization remains a drawcard for various institutions, including mainstream banks and financial firms looking to issue and manage debt and investments.
Cointelegraph also spoke to Martijn Siebrand, digital assets ecosystem manager of Dutch bank ABN AMRO. He shared insights into ABN AMRO’s recent issuance of a digital green bond using Polygon’s layer-2 Ethereum scaling technology to raise 5 million euros ($5.3 million).
Siebrand said that blockchain technology is proving to be a useful tool for banks to better serve capital markets:
“It’s funny, if we have now talks within the bank, people say capital markets have been there for a long time already yet we haven’t seen many innovations. This could be one major change where a lot of banks are investing in.“
Siebrand added that ABN AMRO is already showcasing its blockchain-based digital bond exploits at conferences and exhibitions to both capital market players like mainstream banks, as well as private companies looking to raise funds:
“We see two tracks. We have the institutional one serving traditional capital markets. But we also have the chance to help clients that are too big for crowdfunding but too small for capital markets.”
Siebrand added that tokenized debt offerings can be useful for companies that want to avoid selling equity. However, jurisdictional regulatory frameworks need to be further developed before ABN AMRO can create a working roadmap to further its blockchain tokenization offerings:
“We think that private markets involving private issuances, which are one-on-one or with two or three investors, that will be easier to to scale than the institutional one.”
NFTs remain valuable for institutions
Mia Van, EMEA lead for blockchain and digital assets at Mastercard, delved into the value of nonfungible tokens (NFTs) for institutional users. The sector has produced $1.9 billion in sales volumes over the past year, according to Van, with the average number of Web3 wallets increasing despite sellers dominating NFT marketplaces in recent months.
According to Van, luxury brands such as Breitling and Louis Vuitton actively use NFTs to provide digital twins of items that prove their provenance. Meanwhile, mainstream brands like Adidas and Nike continue to explore NFTs and metaverse activations that give users ownership of objects in both the physical world and metaverse environments.
Mastercard is also becoming part and parcel of the Web3 ecosystem. Earlier this year, Animoca Brands announced a $30 million investment in neobank platform Hi. A unique offering of the platform is a customizable NFT-styled crypto debit card. Users can stylize their Mastercard with NFTs they digitally own, allowing them to show off that prized Bored Apein the physical world.
Van would not be drawn to comment on Mastercard’s blockchain and digital asset strategy and partnerships.
John Swinney has won the SNP leadership contest and is set to be named as Scotland’s new first minister, replacing Humza Yousaf.
Mr Swinney could become Scotland’s seventh first minister as early as Tuesday.
The SNP leadership nominations closed at 12pm on Monday, with the party confirming Mr Swinney was the sole nominee.
He is expected to give a speech later in the day.
Posting on X, he said: “I am deeply honoured to have been elected as leader of the SNP. I will give all that I have to serve my party and my country.”
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Former finance secretary Kate Forbes had been tipped to join him, but later announced she would not stand and instead threw her support behind Mr Swinney.
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Mr Swinney has said he would want Ms Forbes to “play a significant part” in his government if elected as first minister.
Potential challenger Graeme McCormick also withdrew his bid at the 11th hour.
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The veteran SNP activist claimed he had secured the 100 nominations from 20 branches needed to enter the contest but backed out of the campaign on Sunday evening after a “lengthy and fruitful conversation” with Mr Swinney.
The SNP has appeared keen to avoid an explosive leadership contest similar to the one that followed Ms Sturgeon’s resignation.
Scottish Tory leader Douglas Ross congratulated Mr Swinney on becoming SNP leader for a second time, but urged him to abandon his “relentless push for independence”.
Mr Ross added: “It’s difficult to see how he can be the fresh start Scotland needs when he’s the ultimate continuity candidate.”
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Patrick Harvie, Scottish Greens co-leader, said Scotland “needs a period of stable government”.
He added: “Mr Swinney knows that if he is to have our support then it must be on the basis of progressive policies that help us to tackle the climate crisis and build a fairer and more equal future.”
Mr Harvie said his party remains “utterly committed” to the policies delivered as a result of the Bute House Agreement and will “oppose any move away from them or steps to dilute them”.
He added: “We are committed to delivering on our vision of a fairer, greener and more equal Scotland, and are open to talks with John Swinney and his team about how we can work together to make that happen.”
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Mr Swinney is now clear to take over as SNP leader, but will need to seek parliamentary approval to succeed Mr Yousaf as first minister.
The timing is decided by the parliamentary bureau, and could take place as early as Tuesday.
The parliament will have 28 days to nominate a replacement for Mr Yousaf once his resignation has been accepted by the King.
As the SNP is comfortably the largest party in Holyrood, the onus is on them to find a new leader who can work with other parties in a minority government.
The SNP’s tally of 63 MSPs leaves them just short of a majority in the 129-member parliament, meaning politicians from other parties would need to be persuaded to either vote for Mr Swinney, or at least abstain in the ballot, for the party to be successful.
The leaders from other political parties can also put themselves forward and MSPs can nominate a candidate, although it must be seconded by another member.
If that happens, any candidate that secures more than half of all votes will win the nomination.
If no one reaches that threshold, the candidate with the fewest votes will be eliminated – with the process repeated until the candidates are whittled down to two.
At that point, a candidate will only require a simple majority to win.
Whoever wins the vote is then formally appointed by the King.
An official swearing-in ceremony at the Court of Session in Edinburgh would then take place.
However, if no new first minister can be selected within the 28 days, the Scottish parliament would be forced to hold an extraordinary general election.