Daily Digest - 15 June 2023

Headlines

▌Hong Kong pressures banks to take on crypto clients

HSBC and Standard Chartered are among lenders facing pressure from Hong Kong regulators to take on crypto exchanges as clients, according to the Financial Times.

The two banks, alongside the Bank of China, were questioned by the Hong Kong Monetary Authority last month on why crypto exchanges were not being accepted as clients.

This comes as Hong Kong attempts to entice global crypto companies to set up shop in the city. Just this week, a legislator invited Coinbase to relocate to Hong Kong following news of the SEC lawsuit against the company.

Blockchain application

▌Apple rejects the launch of the new version of the BTC wallet Zeus

Zeus founder Evan Kaloudis tweeted that Apple has rejected the latest version of Zeus, a Bitcoin wallet that supports Lightning Network payments, on the App store. According to Kaloudis, Apple turned its attention to Zeus after Damus and required the creator of the wallet to provide proof of the required licenses and permissions in order to obtain App store approval.

Previous Zeus versions are still in the App store. It's unclear what changes Kaloudis has made in the new version. “Non-custodial wallets should be approved,” Breez, another non-custodial Bitcoin wallet, wrote in its official tweet. “After all, there are many wallet applications in the App store.”

▌Polygon announces cooperation with online shopping platform Flipkart

Polygon Labs has announced that Indian multinational online shopping platform Flipkart is now its new partner. Polygon and Flipkart launch FireDrops 2.0, a brand loyalty program designed to revolutionize brand marketing, storytelling and customer engagement on the Polygon network. Specifically, users will benefit from lifetime discounts, membership passes, and other rewards that can be earned through rewards and quests.

Cryptocurrency

▌Encryption service company BCB Group cancels the acquisition of Sutor Bank

Digital asset trading company BCB Group will no longer acquire financial institution Sutor Bank. After "careful analysis and consideration" by both parties, Sutor Bank withdrew its agreement to sell the stake to BCB Group, according to an emailed statement. Citing “recent banking market events and macroeconomic changes,” the BCB said it would focus more on its European strategy by applying for an e-money license in France and taking action to capture and service demand for U.S. dollar payment rails.

BCB Group first announced plans to acquire Sutor Bank in December 2021. Terms of the deal were not disclosed, but it was previously reported that the deal would provide a "substantial capital injection".

▌Coinbase: DEX cannot be regulated like an exchange

Coinbase sent a new letter to regulators on Monday, this time opposing a proposal to regulate decentralized exchanges like centralized ones. Coinbase chief legal officer Paul Grewel said that decentralized exchanges like Uniswap, known as DEXs, cannot be registered in the same way as national stock exchanges. This proposal is too flawed in process and substance to move forward. In particular, the SEC sought to pre-empt congressional action by incorporating unsupported assumptions about its cryptocurrency jurisdiction into proposed rules.