The big Silicon Valley venture capital firm Andreessen Horowitz announcing the largest crypto fund ever, The UK Financial Conduct Authority (FCA) putting the trading platform Binance under pressure, and China´s way of getting to the world blockchain top by 2025. Additionally, El Salvador citizens receiving $30 each in bitcoin and the first permission of the German BaFin for detaining cyber devices & more.


The largest crypto fund to date announced

A $2.2 Billion Crypto Venture Fund was launched by Andreessen Horowitz. Last week, the Silicon Valley venture capital firm, also known as “a16z”, announced the largest crypto fund ever. Andreessen Horowitz was founded by Marc Andreessen and Ben Horowitz in 2009. The company invests in seed to late-stage technology companies, across the consumer, enterprise, bio/healthcare, crypto, and fintech spaces. a16z has $18.8B in assets under management across multiple funds. The so-called “Crypto Fund III” was described by the firm in a press release as a validating moment for the ecosystem and another sign that crypto is becoming an ever more mainstream part of our financial infrastructure. In their blog post titled “Crypto Fund III” they wrote:

“We are radically optimistic about crypto’s potential to restore trust and enable new kinds of governance where communities collectively make important decisions about how networks evolve, what behaviours are permitted, and how economic benefits are distributed.”

FCA stops Binance from regulated activities in the UK

The UK Financial Conduct Authority (FCA) has ordered the prominent trading platform Binance to cease all regulated activities in the country. To do so, the company was given a deadline of June 30, 2021. Moreover, Binance is supposed to point out on its website and social media that it is not allowed to conduct regulated activities in the country. However, since the exchange has also withdrawn an application to become a registered crypto company with the FCA, the trading platform cannot offer unregulated services either. Unregulated services include spot trading, for example. The current deadline for other crypto exchanges to obtain FCA approval in the UK is March 31, 2022.

China at the blockchain world top by 2025?

Recently, China cut Sichuan´s energy supply for 26 mining farms. About 65 to 75 percent of Bitcoin mining took place in China. The effects of the ban are already being clearly felt. The hash rate, which quantifies the computing power in the entire Bitcoin network, has now fallen by around 40 percent since its all-time high in mid-May. Nevertheless, the country does not miss the potential of blockchain technology. China’s industry regulator and cyberspace regulator have released a guideline to promote the development and application of blockchain technology in China. The document further announced a plan to bring China’s blockchain industry to the world top by 2025. Furthermore, pursuant to the document,  China would support the establishment of three to five backbone enterprises by 2025 and the industry scale will keep expanding in 2030. According to The Block, China’s blockchain development will focus on the real economy and public services. The technology could also be used to enhance industrial bases and industry chains. In the final phase, blockchain technology would break the barriers between different sectors and boost their coordinated development. 

El Salvador’s citizens receive $117 million in Bitcoin

According to The Block, $117 million US-Dollars, which currently are about 3.400 BTC, will be given to El Salvador´s citizens. Every grown citizen who downloads the Chivo e-wallet app and completes the facial recognition process is supposed to receive $30 in bitcoin. This is another big step of El Salvador and its President Nayib Bukele towards the goal of bitcoin becoming legal tender on September 7, 2021. Bitcoin also comes with a blockchain that depends on mining. Energy supply for the bitcoin mining process is supposed to be won sustainably from volcanoes, providing further 95 megawatts.   

BaFin grants Coinbase Germany permission for detaining cyber devices

The financial regulator Bafin granted Coinbase Germany permission to engage in crypto custody and proprietary trading on June 28, 2021. However, the permission is limited to cryptocurrencies and units of account. Coinbase is thus the first company to receive this permission in Germany. Experts estimate that this provides a launchpad for the development of crypto-based business models.

And more exciting news from around the world:

It was a great week for blockchain technology. Follow us for more exciting news and be part of the blockchain revolution by joining our BLOCKCHANCE EUROPE 2021 conference in Hamburg in December 2021. You can get tickets here.

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