Crypto assets and associated products and services have grown rapidly in recent years. Furthermore, interlinkages with the regulated financial system are rising. Policymakers struggle to monitor risks from this evolving sector, in which many activities are unregulated. In fact, IMF experts think these financial stability risks could soon become systemic in some countries.
Swedish officials are calling on the EU to ban energy-intensive cryptocurrency mining techniques, such as those used by Bitcoin. They say such activities cannot be tolerated at a time when all states in the world urgently need to reduce their energy consumption to combat the climate threat.
After a first attempt at a ban in 2018, the Indian government will introduce legislation to ban private cryptocurrencies. Also in the firing line is the acceleration of its Central Bank Digital Currency (CBDC). The ban is likely to impact millions of young Indians who have jumped into the sector.
The European Commission has completed its cartel investigation into the Foreign Exchange (‘Forex') spot trading market by imposing fines on five banks. The Commission has adopted on December 2nd a decision imposing a total fine of €261 million on the four banks that decided to settle the case, namely UBS, Barclays, RBS and HSBC. The Commission has also fined Credit Suisse €83 million under the ordinary procedure.
On November 29th, the Commission de Surveillance du Secteur Financier (CSSF) published a guidance and a FAQ outlining what can and cannot be done in terms of crypto-assets management in Luxembourg.
Last July, data provider and marketing agency Editus published its first API on the LUXHUB Marketplace. Through its "NEO Data Provider" API, the company provides users with detailed and diverse information about companies located in Luxembourg. On November 17th, the company went one step further and announced an important update, with the addition of UBO – Ultimate Beneficial Owner – data.
The European Commission wants to generalize instant payment.
On November 8th, in a virtual signing ceremony, held jointly in Luxembourg and Lagos, Nigeria, the Luxembourg Stock Exchange (LuxSE) and FMDQ Securities Exchange Limited (FMDQ Exchange), a subsidiary of FMDQ Holdings PLC, (FMDQ Group), Africa’s first vertically integrated financial market infrastructure group, announced that the two institutions have executed a Listing Agent and Cooperation Agreement to facilitate the dual listing of securities issued by financial institutions and corporates domiciled in Nigeria on both FMDQ Exchange and LuxSE markets.
Digitalisation partnership enables Apex to more efficiently and securely deliver client services in full regulatory compliance, starting with its subsidiary entity, the Luxembourg-based European Depositary Bank (“EDB”).
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, issued on October 28 a Public Statement on investment recommendations made on social media. ESMA makes clear what investment recommendations are, how to post them on social media platforms and what the consequences of possible breaches of the EU Market Abuse Regulation can be.