Pedro Orlando

This is interesting - Swiss bank #UBS has introduced a tokenized money market fund on the #Ethereum blockchain I wonder what the demand for is digital financial assets among investors and how it varies across jurisdictions. I also wonder whether, for this type of investment, additional compliance / sign off re risks involved is required from the investors. #crypto #investments #digitalassets #crownstone #taxtipper

6

🌐 New FASB Rules for Cryptoassets🌐 Cryptoasset holders can now early adopt favorable new accounting rules effective December 2024. The FASB ASU No. 2023-08 introduces significant changes to the accounting and disclosure requirements for certain cryptoassets, creating a new subtopic: FASB ASC Subtopic 350-60, Crypto Assets. Key Changes in ASU 2023-08 🔍 Subsequent Measurement at Fair Value: Starting fiscal years after December 15, 2024, certain cryptoassets will be measured at fair value with changes recorded in net income each reporting period. This is a shift from the current cost-less-impairment model, which only recognizes decreases in value. 🔍 Enhanced Disclosures: The new rules require detailed disclosures about the types of cryptoassets held and any changes in holdings, providing better decision-useful information for investors, lenders, and other stakeholders. Scope of ASU 2023-08 ASU 2023-08 applies to all entities holding cryptoassets that meet specific criteria: Defined as intangible assets (excluding financial assets) without physical substance. Do not grant enforceable rights to underlying goods or services. Reside on a blockchain and are secured by cryptography. Are fungible and not created or issued by the reporting entity or its related parties. Measurement and Disclosure Requirements 🔍 Fair Value Measurement: Cryptoassets are measured at fair value, with changes recognized in net income. This approach aligns with Topic 820 guidance and provides several advantages, such as reduced accounting complexity and better information for investors. 🔍 Presentation: Cryptoassets measured at fair value must be presented separately from other intangible assets. This includes separate presentation of gains or losses from remeasurement changes in the income statement. 🔍 Disclosure: Annual and interim disclosures must include the name, cost basis, fair value, and number of units for significant cryptoasset holdings, as well as aggregate values for non-significant holdings. Additional disclosures are required for cryptoassets subject to sale restrictions. Effective Date and Transition ASU 2023-08 is effective for fiscal years and interim periods beginning after December 15, 2024, with early adoption permitted. Transition requires a cumulative-effect adjustment to the opening balance of retained earnings. Benefits for Reporting Entities and Investors The new fair value measurement for cryptoassets benefits both reporting entities and investors by: Reflecting the true economic impact of cryptoassets. Reducing accounting complexity and costs. Providing transparent and useful financial information. Given these benefits, it is expected that many cryptoasset holders will opt for early adoption of ASU 2023-08. #CryptoAssets #compliance #ITGRC #ITGRCAdvisory #BWAdvisory #AkademiaITGRC

11

Increasing transparency to reserve assets entrusted to custodians and exchanges is the most existential issue facing #crypto and #digitalassets long-term success. We have other big hurdles to jump, but without basic foundations of trust and transparency, the market will continue to suffer the misfortune of its own neglect. Thank you to The Digital Chamber for leading and educating on this topic! https://lnkd.in/gzuiiZTr

14

🆕 New blog posted 🆕 where I go one layer deeper on my recent Blockworks Op-Ed. [https://lnkd.in/gMHQztmu] 💊 Financial Statement Audits alone have been shown time and time again to be an insufficient tool for regulatory and customer transparency to crypto reserve assets. ⁉ So, what's being done about it before the disastrous history of 2022 repeats itself? The Digital Chamber #PROOFAct #TexasPoR #Wyoming #crypto #regulation #ProofOfReserves

24

Is Revenue Gross or Net in Crypto Financial Statements? 📊💰 Virtual Asset Service Providers (VASPs) face a crucial decision: Should revenue be recognized as gross or net? This depends on whether they are acting as a principal or agent and must follow IFRS 15 guidelines. Accurate revenue reporting is essential for ensuring compliance and reflecting a company's financial performance. 🔍✅ For example: 📱PayPal Holdings 💳, a payment service provider listed in the US, recognizes revenue on a net basis. 🏦Sinohope Technology Holding 🔄, an OTC trading company based in Hong Kong, recognizes revenue on a gross basis. Related materials by Cryptoworth : https://lnkd.in/gEBykKVF #CryptoFinance #VASPs #IFRS15 #RevenueRecognition #CryptoCompliance #GrossVsNet #PayPal #Sinohope #Accounting #CryptoAssets #Blockchain #Fintech #FinancialReporting #Web3 #DigitalAssets #Regulation #Finance

1

📢📢📢 A safe global crypto hub? The UK plans to implement a cryptoasset regulatory framework by the end of July... 📢📢📢 ⏩ The #OECD is pushing forward with a global crypto regulatory framework (the #CARF). Meanwhile, the #UK is focusing on its own regulatory for cryptoassets and #stablecoins by *July 2024*. This framework will mean that crypto asset activities will be regulated. ⏩This comes about following the proposals published by the UK government in October 2023 for regulating the crypto sector. This included a requirement that firms obtain authorisation from the Financial Conduct Authority (#FCA) to perform crypto-related activities. Essentially, the #FCA and the Bank of England would co-supervise stablecoins. ⏩ The law comes into effect after amendments were made to the Economic Crime and Corporate Transparency Act 2023. This expands the power of the National Crime Agency #NCA to confiscate and seize crypto assets relating to illicit activities. ⏩ The UK's motto is to #innovate but also #protect consumers. This is a delicate tightrope to walk. Attractiveness, accessibility, protection and profitability are all factors to consider. #crypto #compliance #CARF #FCA #NCA #UK #tax #crownstone #taxtipper

3

Key developments of interest over the last month include: the Bank of England publishing a discussion paper on its approach to innovation in money and payments; the European Commission publishing clarifying Q&As on the Instant Payments Regulation; and the Bahamian Parliament passing the Digital Assets and Registered Exchanges Act 2024. #Payments #DigitalAssets #Regulation

1

Thank you, Shaun, for highlighting the "touch it once" philosophy. I'm glad this resonated with you, as it encapsulates a crucial aspect of effective family office operations. To expand on this concept, it's essential to recognize that the quest for a single, all-encompassing solution often leads family offices down a suboptimal path. Excellence often lies in the strategic integration of specialized components rather than a one-size-fits-all approach. The key to success lies not in the tools themselves but in the thoughtful design of workflows and processes. Before considering any technology, family offices should map out their operational needs and data flows. This approach allows for selecting best-in-class components that serve the office's specific requirements. In our experience, the focus should be on three core aspects of data management: 1. Data Extraction: Efficiently gathering information from various sources. 2. Data Structuring: Organizing information in a way that's coherent and useful across the organization. 3. Data Visualization: Presenting insights in transparent, actionable formats. By prioritizing these elements, family offices can create a system where data flows seamlessly, supporting persona-based dashboards that cater to individual roles and responsibilities. This approach starkly contrasts the common pitfall of selecting technology based primarily on user interfaces or feature lists. Crucially, we achieve this outcome by leveraging incredible strategic partnerships. These collaborations allow us to integrate upstream and downstream technologies of our core systems seamlessly. This approach represents a paradigm shift from the traditional model of simply adding more staff as technology increases. Instead, it focuses on intelligent integration and automation, maximizing efficiency without unnecessarily expanding the team. Ultimately, the goal is to create a "master-planned community" of integrated systems rather than the "urban sprawl" that often results from ad-hoc technology adoption. When done right, this strategy enhances efficiency and provides the flexibility to adapt and scale as the family office evolves, all while maintaining a lean and agile operational structure.

15

1 commentaar

Unlocking the power of appropriate transaction fees in #blockchain is crucial for optimizing costs and ensuring timely confirmations. Strategies for setting optimal transaction fees in your #blockchain projects: - Dynamic fee adjustment - Fee trend analysis - Fee-optimized wallets

3

Loss versus rebalancing (LVR) is precisely the adverse-selection cost that LPs on AMMs incur from toxic flow, and it is arguably the biggest (application layer) problem for DeFi on Ethereum. For the next generation of AMMs, the alpha of AMM design is LVR. Hayden Tsutsui provides a deep-dive on what LVR is and its importance for AMM design. He also illuminates research on the next generation of AMM design, offers thoughts on what AMMs really are more broadly, and what to expect moving forward. Frontier Research finds the majority of MEV is CEX-DEX arbitrage, and Max Resnick (Special Mechanisms Group) adds that 80-90% of that value is captured by proposers, not LPs. The TLDR is, LPs get wrecked by toxic flow in expectation, and receive a small portion of this value for their liquidity-at-risk. Next generation AMMs will recapture LVR for LPs. The two primary approaches are dynamic fees and auctions. In the report, we highlight research and protocols (both in-prod and in-development) in each of these categories. The oncoming wave of AMM innovation is expected to reduce LVR. Given better mechanism design and tooling, AMMs start to resemble decentralized autonomous investment management platforms upon which a marketplace of agents and services optimize returns. If AMMs do not reduce LVR, liquidity on Ethereum could slowly deteriorate, especially if more performant chains continue to gain attention and capital. Research shows shorter block times yield less LVR. AMMs are a crypto-native paradigm shift in capital management. While there are headwinds, if AMMs can materially reduce LVR, we believe AMMs will continue to grow and eventually rival trade volume on CEXs. Check out the full report for more details: https://lnkd.in/gaKq6ARE

5

Did you miss the live stream of our insightful panel discussion on stablecoin accounting and regulatory integration? Don’t worry! You can still access the full recording and read the detailed summary. Watch the full recording: https://lnkd.in/d6cVu9F8 Read and watch the summary and clips here: https://lnkd.in/d4hYRBhU Our expert panelists, Dr. Sean Stein Smith DBA, CPA; Nami Baral, and Atikh Bana delved into critical topics such as: 1. The Adoption of Stablecoins in Payroll and Global Payments 2. Regulatory Challenges and Opportunities for Stablecoins 3. Stablecoin Use Cases in Traditional and Crypto-native Businesses 4. Future Trends in Stablecoin Integration with Real-world Assets "We have a lot to learn from what has been happening in the financial technology sector over the past six, seven years. You have to be as close to a bank in terms of your implementation of banking as a service technology. I think we're going to require something very, very similar for stablecoin issuers regardless of what size they may be." As Dr. Sean Stein Smith noted, "The easiest on-ramp is stablecoins backed on a one-to-one basis by that stable currency, which really can be very appealing and interesting to both individuals and institutions." This discussion set the stage to understand: - The latest regulatory updates impacting stablecoin use. - How stablecoins can streamline international payments and payroll. - Best practices in accounting for stablecoins. - Preparing for future trends in tokenized assets and stablecoin integration.

2

"1% 𝘧𝘦𝘦 𝘧𝘰𝘳 𝘤𝘶𝘳𝘳𝘦𝘯𝘤𝘺 𝘦𝘹𝘤𝘩𝘢𝘯𝘨𝘦 𝘰𝘷𝘦𝘳 𝘵𝘩𝘦 𝘸𝘦𝘦𝘬𝘦𝘯𝘥 𝘥𝘶𝘦 𝘵𝘰 𝘍𝘖𝘙𝘌𝘟 𝘮𝘢𝘳𝘬𝘦𝘵 𝘤𝘭𝘰𝘴𝘶𝘳𝘦" Still wondering why Stripe sees a $1.1bn value in acquiring Bridge? 🤔 Yes, there are still barriers to full crypto payments adoption: --> It’s not widely accepted as a payment method yet, especially in developed economies where banking systems work "well enough" --> Entering the crypto world can be a serious hazing process for corporates: KYB, wallets, seed phrases, fear of being "unbanked" --> The whole process (on-ramp + transfer + off-ramp) can be more expensive and just as slow as a traditional wire transfer --> And don't get me started on network bridging – your client holds crypto on network A, but you're on network B. Nightmare, right? 😏 But! Fintechs are reshaping payment UX: --> Random accountant can handle wallet with ease (cc Cometh 👋) --> The choice of blockchain network will be completely abstracted. --> Companies will embrace stablecoins for transactions without rushing to convert them to fiat. Why? 🌍 No borders. Less frictions. ⚡ Transfers are nearly instant (notably on L2) ⚙️ Blockchain never sleeps (even on weekends 😉). 🔐 Blockchain doesn’t lie – it’s fully transparent & censorship resistant With all these advantages, stablecoins are seriously disrupting the FOREX market. The question is simple: Revolut Business, wen stablecoin? 👀 - - - - - - - #Crypto #Adoption #Blockchain #Stablecoins #Payments #Forex #FinTech #Web3 #FutureOfFinance #DigitalCurrency

18

A Banco de Portugal Occasional Paper on Decentralized Finance Decentralised Finance (DeFi) has gained significant attention in recent years. It aims to replicate the functions of the traditional financial system in a disintermediated way leveraging on the interplay between blockchain technology, smart contracts and stablecoins. This paper provides an overview of the underlying components of this relatively new ecosystem, as well as its associated risks from the perspective of a financial supervisory authority. While DeFi inherits the risks present in traditional finance, some of these risks could be amplified due to the lack of a clear regulatory framework and the intrinsic features of the DeFi space. Therefore, this paper also takes a closer look at the regulatory challenges involved, including the promise of self-regulation, and explores potential avenues for addressing these challenges without stifling the innovation that DeFi can foster.

46