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UK financial regulator announces launch of permanent Digital Sandbox in August

According to the FCA, the sandbox will be open to companies, startups and data providers, including those involved in banking, investing, lending and payments.

The UK Financial Conduct Authority (FCA) has announced the launch of its Digital Sandbox, which aims to support technology companies in the early stages of product development.

In a July 20 announcement, the FCA said the Digital Sandbox will be permanently available starting August 1. The financial watchdog has run two pilot programs of the initiative, which will be open to companies, startups and data providers, including those involved in banking, investing, lending and payments.

A sandbox allows projects to operate in a test environment to test their products and services largely without unwanted side effects that affect the real world. According to the FCA, the Digital Sandbox aims to help innovative companies in their efforts to launch new products and services, in addition to supporting economic growth and international competitiveness.

The UK Department of Treasury and Finance proposed a “financial market infrastructure sandbox” in April 2022 alongside its plans for a regulatory framework for payment stablecoins. HM Treasury also opened an investigation into a digital securities sandbox that could include crypto products in July.

On July 3, the European Commission announced that 20 projects had been selected for an EU regulatory sandbox. Those who qualified for the initiative included companies in financial and capital markets, telecommunications and information technology, and global trade.

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Ark Invest sells over $50 million worth of Coinbase stock amid stock market rally

Cathie Wood’s investment firm, Ark Invest, has made significant moves in its Coinbase stock, selling over $50 million worth of shares as shares of the cryptocurrency exchange continue to rise.

This was the second time in a week that Ark Invest has reduced its stake in Coinbase, reflecting its hands-on management approach amid a backdrop of regulatory development and industry optimism.

At the same time, Ark Invest has been actively investing in other prominent companies including Meta Platforms and Robinhood.

Ark Invest profits from Coinbase Rally

Ark Invest, led by Cathie Wood, sold a total of 478,356 shares of Coinbase on Friday, worth more than $50 million. The sales were distributed across Ark’s flagship fund, the Ark Innovation ETF, which sold 263,247 shares, the Ark Next Generation Internet ETF, which sold 93,227 shares, and the Ark Fintech Innovation ETF, which sold 121,882 shares.

This decision comes on the heels of Coinbase’s role as a vigilant exchange partner for several Bitcoin ETF candidates, including industry giants BlackRock and Fidelity. Furthermore, recent legal rulings surrounding the status of the XRP cryptocurrency have added to the overall optimism of the industry.

While reducing its holdings in Coinbase, Ark Invest has also been actively investing in other adjacent crypto companies. The company started buying shares in Meta Platforms (formerly Facebook) and Robinhood. In June, the Ark Innovation ETF bought 69,793 shares of Meta, while the Ark Fintech Innovation ETF bought 111,843 shares of Robinhood.

Additionally, the Ark Next Generation Internet ETF increased its holdings with 12,559 Meta shares and 169,116 Robinhood shares. These strategic investments reflect Ark Invest’s ongoing strategy to navigate the evolving digital asset market.

Ark Invest’s decision to cut its holdings in Coinbase following significant acquisitions during market volatility and regulatory challenges demonstrates a calculated approach to securing profits amid the stock’s impressive recovery this year and indicates a calculated effort to secure gains during the recovery. of the actions.

Additionally, it demonstrates the company’s commitment to diversifying its portfolio to achieve long-term growth potential, as evidenced by its investments in Meta Platforms and Robinhood.

As the cryptocurrency market continues to evolve, Ark Invest shares will be closely watched by market participants, seeking information and guidance to navigate this dynamic landscape.

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Nearly 100 Customers Sue Coinbase Over Its Wallet App

Coinbase is in trouble after nearly 100 customers filed lawsuits against the Western Hemisphere’s largest digital currency trading platform.

Customers Are Angry at Coinbase

These customers accuse Coinbase of turning a blind eye to a scam that ended up costing them over $21 million in digital currency funds. The problem stems from the Coinbase Wallet, which last fall, when downloaded, directed users to fraudulent or fake websites that allowed scammers and hackers to take control of their accounts and transfer their digital assets to Coinbase wallets.

To date, due to the terms and conditions applied by Coinbase, none of the lawsuits in question have resulted in defendants or plaintiffs going to court. Instead, everything is handled through an arbitration process. This ensures that details remain out of the media and that lawsuits take place privately between the company and those affected. Legal disputes are heard by a neutral decision maker who then decides which party deserves a decision in their favor.

In the arbitration process, customers allege that Coinbase was well aware of what was happening with its wallet application and that executives did nothing to address it or minimize the damage. They made several attempts to alert Coinbase bosses to what was going on, but little was done to acknowledge their concerns or the money they had lost. Now these people are taking stronger means to get their money back and get justice for themselves.

To say it was a difficult year for Coinbase would be an understatement. 2022 has been affected by digital currency based issues for everyone, although Coinbase has arguably been affected more than others. What was initially supposed to be a year of massive hiring and taking headcount to new levels turned into a time when not only were all hiring plans put on hold, but the exchange subsequently announced that it would lay off around 18% of its team. to deal with the cryptocurrency windfall the space was experiencing.

The company has had a tough year.

Furthermore, the company has seen its shares crash and burn in recent weeks due to how tied it is to bitcoin, the world’s largest and most popular cryptocurrency by market capitalization. The asset has lost over 70% of its value in the past 12 months, and with bitcoin losing so much in such a short period, the digital exchange is seeing similar results.

When the company first went public in April 2021, shares were priced above $300, even though those same shares have since dropped into the $50 range. Coinbase is also the subject of a new SEC investigation.

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PayPal joins other payment and remittance providers in suspending services in Russia

Several payment and remittance platforms, now including PayPal, have restricted access to their services in Russia as Western sanctions over Moscow’s invasion of Ukraine continue to expand. Fintechs have been limiting operations in the Russian Federation as well in response to Kiev’s call for help.

Payments giant Paypal stops services in Russia and keeps withdrawals for now

Paypal, the global online payments provider, has joined a growing list of fintechs backing Western sanctions against Russia for its decision to invade neighboring Ukraine. The company, which offered Russians only international transactions, canceled its services in the Russian Federation on Saturday.

Cited by Reuters, President and CEO Dan Schulman explained the measure in “current circumstances”, noting that Paypal supports the international community and condemns Russia’s military aggression against Ukraine. The platform stopped accepting new users based in Russia earlier this week.

Through a spokesperson, Paypal added, however, that withdrawals will be supported for an unspecified period of time. The payments giant aims to “ensure that account balances are dispersed in accordance with applicable laws and regulations.”

The announcement follows calls from Kiev authorities to suspend services in Russia and support Ukraine’s fundraising efforts. The US-based California-based company revealed ahead of the weekend that it “has helped raise more than $150 million for charities supporting response efforts.” The Ukrainian government and local NGOs have also received millions in cryptocurrency donations.

Paypal’s move comes after other payment and remittance platforms already suspended certain services in Russia in late February. This includes Wise, which processed international payments for Russian users, and Remitly, which made it easy to send funds.

UK-based fintech Wise initially imposed a daily cap of £200 ($265) on transfers to the Russian Federation, but later suspended all money transfers as the US and its European allies imposed further restrictions on the system. financial situation, including the expulsion of some Russian banks. of the SWIFT interbank payment system.

As a result of the tougher sanctions, Remitly has also suspended support for money transfers to Russian recipients. Other remittance service providers have also introduced similar measures, including Transfergo and Zepz.

According to crypto media reports, UK-based Revolut has suspended payments to Russia and its ally Belarus, while an advertisement on its websites indicates the fintech is doing everything it can to ensure its users can send money to Ukraine. In a blog post, the company’s CEO, Nik Storonsky, highlighted its Russian and Ukrainian roots and expressed its opposition to the war.

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Get Paid in Bitcoin With NYDIG’s Bitcoin Savings Plan

The product caters to employers seeking to attract the best talent by offering payments in bitcoin.

Leading U.S. companies can now offer their employees the option to get paid in bitcoin by opting into NYDIG’s newly launched product, Bitcoin Savings Plan. The offering is an employee benefit program through which the worker can choose what percentage of their paycheck they would like to receive in bitcoin each month, at no additional cost.

NYDIG said in a Tuesday statement that the Bitcoin Savings Plan is catered to companies that want to differentiate themselves by offering their employees the ability to get paid in bitcoin, a need the institutional bitcoin services provider discovered in a recent survey as 36% of respondents under 30 said they would be interested in allocating a portion of their pay to bitcoin.

“We know how hard it is for companies to attract top-notch talent,” said Patrick Sells, CIO of NYDIG, in a statement. “An NYDIG Bitcoin Savings Plan is an easy-to-adopt benefit that can help employers stand out from the pack while providing their employees with a critical tool for protecting their financial futures.”

Former NFL superstar Drew Brees is among the first employers to leverage the new product. NYDIG said the now-retired athlete that has the second most NFL career touchdown passes will not only offer the option to the employees of his companies but also opt into a Bitcoin Savings Plan himself to convert a portion of his compensation to bitcoin. Other companies that Brees is involved with will also make the leap, including Everbowl and StretchZone.

“The more I have immersed myself in the understanding of money, long-term value, and the history of finance, the importance of bitcoin became apparent,” Brees said in a statement. “In its 13-year history, Bitcoin has been an inclusive vehicle for wealth creation, and a Bitcoin Savings Plan is one of the easiest ways to start saving.”

NYDIG said that other companies launching a Bitcoin Savings Plan include leading digital banking solutions provider Q2, financial services companies MVB Bank and Vantage Bank, and sustainable bitcoin miner Iris Energy. NYDIG itself will also offer the benefit to all its employees.

Paycheck conversions into bitcoin held by employees as part of a Bitcoin Savings Plan will be stored in NYDIG’s custodial cold storage system. With such an arrangement, workers will be able to get exposure to the bitcoin price but will not be inserted into the Bitcoin ecosystem, being unable to achieve financial sovereignty.