Ari10 Weekly Newsletter #114 (Crypto Business Insights, Crypto Market News and Ari10 Company Update)

What happened this week in the crypto space?

GM! This is Mateusz Kara.

And you've just found the best place in the crypto space to know more about the blockchain industry. I'm also giving you updates on my biz.

In Today's edition:

1/ We Know When ETH ETFs Will Launch!

2/ Fed Shifts its Stance

3/ China’s Largest Bank Positive on BTC and ETH

4/ Brazil’s Largest Bank Selling Bitcoins

+ Crypto Business Insights & Ari10 Company Update

Sounds interesting? I think so.

Let's dive deeper into the crypto rabbit hole:

1/ We Know When ETH ETFs Will Launch!

As you may recall, at the end of May, the SEC approved applications for ETH ETFs. However, the catch is that they didn't "greenlight" the S-1 applications, which are the actual tickets to the US stock exchanges (the process of establishing ETFs in the US is two-stage).

Now we know when the ETH ETFs will launch. During Senate proceedings, Gary Gensler, the SEC head, spoke. When asked by senators when his commission would approve the "S-1s," he replied that it would happen this summer. We now know that ETH ETF units will be available to investors by September at the latest.

2/ Fed Shifts its Stance

This week, the Fed also announced its interest rate decision. And again, it neither cut nor raised them. The pause continues.

More importantly, however, is what emerges from the central bank's report. From the so-called "dot plot," we learn that the central bank may begin cutting only in 2025. More precisely, this year we can expect one small cut (by 25 basis points), while a series of cuts is expected the following year.

Is this bad news? Not entirely. It means that the full bull market might start a few months later than we anticipated.

3/ China’s Largest Bank Positive on BTC and ETH

Industrial and Commercial Bank of China (ICBC) is the largest bank in China. It published a report that surprised cryptocurrency investors. Why? Because China is a country generally hostile to bitcoin (referring to government policy, not the attitude of citizens). ICBC, however, in its new document on BTC and ETH, gave a very positive outlook on both projects.

Bitcoin is seen by bank experts as digital gold. Meanwhile, ether is described as "digital oil" that fuels the Web3 market.

Such a large bank must, in a sense, be subordinate to the government. Could this be a sign of a revolution in China's bitcoin policy?

4/ Brazil’s Largest Bank Selling Bitcoins

Itau Unibanco, the largest bank in Brazil, allows its clients to trade bitcoins and ethers. In practice, this means opening the cryptocurrency market to 60 million clients.

Cryptocurrency trading is possible through the bank's trading app. Since the announcement regarding the opening of BTC and ETH markets, the app has been downloaded 3.5 million times.

Crypto Business Insights ??

Cryptocurrency Exchange as a Small Payment Institution

In the context of the obligations associated with operating a cryptocurrency exchange, it's worth noting that some exchanges hold the status of a Small Payment Institution. This is a beneficial solution for this type of business because it increases customer trust in the entity. However, an exchange as a Small Payment Institution is subject to additional requirements, restrictions, and controls. Small Payment Institutions are regulated by the Payment Services Act. According to Article 2 point 17b of the mentioned act, the term Small Payment Institution refers to a natural person, a legal entity, and an organizational unit that is not a legal entity, to which the law grants legal capacity, entered into the register referred to in Article 4 paragraph 3 of this act, conducting activities in the scope of any of the payment services mentioned in Article 3 paragraph 1 points 1-6 of the act and not conducting activities in the scope of payment services mentioned in Article 3 paragraph 1 points 7 or 8.

To clarify the references contained in the Payment Services Act, the above-mentioned register is the register of providers and issuers of electronic money. Registration is required not only small payment institutions but also entities such as:

- National payment institutions,

- Payment service offices,

- National electronic money institutions and their branches,

- Agents of these entities performing agency activities in the provision of payment services,

- Branches of national payment institutions if they provide payment services in a member state other than their home member state,

- Providers providing only account information services, their branches, and agents performing agency activities in the provision of payment services if they provide payment services in a member state other than their home member state,

- Branches of foreign electronic money institutions, as well as savings and credit unions and their branches.

Small Payment Institutions must include at least one of the following services:

- Accepting cash deposits and withdrawals from a payment account, as well as any actions necessary for operating the account,

- Executing payment transactions, including transfers of funds to a payment account with the user’s provider or another provider, or with another provider by executing direct debit services, including one-off direct debits, using a payment card or a similar payment instrument, and by executing credit transfer services, including standing orders,

- Executing payment transactions mentioned in point 2, debiting funds provided to the user based on credit, issuing payment instruments, enabling the acceptance of payment instruments, and executing payment transactions initiated by the payer’s payment instrument through the payee or its agent, particularly handling authorizations, transmitting payment orders from the payer or the payee to the issuer of the payment instrument or payment systems, aimed at transferring to the payee the funds due, excluding activities involving settlement and clearing of these transactions within a payment system as defined by the Finality in Settlement Act (acquiring), and providing money remittance services.

At the same time, a Small Payment Institution cannot operate in the scope of services such as payment initiation services and account information services. A Small Payment Institution is, however, subject to certain limitations related to the volume of transactions conducted, the amount of funds held, the scope of services provided, and the location of its business operations. Fortunately, the limits have been set high. Transactions cannot exceed 1,500,000 euros per month, and the maximum total amount of funds accepted for one user at any time cannot exceed 2,000 euros. Furthermore, a Small Payment Institution must be headquartered exclusively within Poland. A cryptocurrency exchange operating as a Small Payment Institution is subject to financial oversight.

ARI10 COMPANY UPDATE ??

Fueled by tennis mania in Poland, we have become a sponsor of the Poznan Open ??

Poznan's key tennis tournament is part of the ATP Tour Challenger. In the past, stars such as Hubert Hurkacz and Jerzy Janowicz have won on its courts.

Considering tennis and crypto alike have their gems, we plan to run a series of engaging contests for all participants ??

These will be held at our booth in the center of the Olimpia Tennis Park from June 20 - 22, 2024.

(Details: eneapoznanopen.pl )

Tennis is another sport, alongside boxing, MMA, and speedway, that Ari10 supports!

Crypto payment adoption can uplift your business.

It's a strategic step to keep pace with market trends.

As regulations are now in place, crypto integration is safer.

It's wise to move fast.

This will soon be common in e-commerce.

Crypto users, known for their wealth, tend to prefer crypto payments.

This method can help you stand out, especially in luxury retail.

Crypto will be a regular market strategy with new regulations.

So, fast implementation is key.

And that’s all for today. Thanks for your time, investors & Crypto Geckos! ?? ????

Please rate this newsletter with a reaction

?? - well done, Matt

???? - acceptable, it’s OK

?? - meh, do better…

Thanks for your feedback and see you next week!

Mateusz Kara