In the Daily: Tokenized ETFs, Chainalysis, Binance Labs in Argentina
In this edition of The Daily we cover an exchange that offers cryptocurrency investors access to tokenized ETFs based on major indices, a response from Chainalysis to the recent outcry against blockchain surveillance services abusing customer data, and a program to support startups by Binance Labs in Argentina.
Also Read: Israel Securities Authority Wants a Dedicated Token Exchange
DX Exchange Develops Tokenized ETFs
DX Exchange, an Estonia-based venue which launched trading on tokenized stocks in January, has broadened the platform’s offering. It now offers trading on tokenized exchange-traded funds (ETFs), including Nasdaq-mirrored QQQ, S&Ps and SPY. These tokenized ETFs are said to be compatible with the latest guidelines put forth by the European Securities and Markets Authority (ESMA), and with the MiFID II directive Mifid II (the latest EU financial regulations). They are not based on contracts for difference (CFDs) as offered by many forex brokers.
Besides traditional fiat payment options, the regulated exchange accepts deposits in BCH, BTC, ETH, USDT, DASH, LTC, XRP and a few other cryptocurrencies. This opens a new diversification avenue for crypto investors that wish to gain exposure to stocks and indices. The company also believes that because cryptocurrencies are accessible to the unbanked, its tokenized ETF provision can potentially connect millions of people to the global investment markets.
Chainalysis Denies Using Traders’ Personal Data
Blockchain surveillance company Chainalysis has issued a report on how it collects and uses cryptocurrency transactional data from its clients. The move came after intense public pressure against Coinbase for acquiring Neutrino brought the issue to the community’s attention. Similar to Elliptic, Chainalysis claims not to use personal data obtained from exchanges during their KYC process.
The company explains that exchanges that use its service for AML compliance submit only their transaction data, not personally identifiable customer data, in order to automate the process of transaction monitoring. So Chainalysis claims to only know that a particular address belongs to a client at a specific exchange, not who the person is.
“In short, Chainalysis provides service-level identification, not individual-level identification,” the report summarizes. “We can’t speak for all other vendors. It’s possible other vendors may ask for more information. But Chainalysis is concerned only with service-level transaction data.”
Binance Labs Supporting Startups in Argentina
Binance has announced that a program supported by the Argentina’s Ministry of Production and Labor has committed to match an investment of up to $50,000 for each local project that receives funding from the venture arm of the cryptocurrency exchange, Binance Labs, and local startup accelerator Founders Lab. For a four-year term, the government-supported program will match investments from Binance Labs and Founders Labs, in up to 10 Argentinean projects per year.
The company explained that the co-investment agreement with the government-supported accelerator program was formed after Binance Labs selected Buenos Aires as the Latin American hub for Season two of the Binance Labs Incubation Program. Through a collaboration with Founders Lab, Binance Labs will host a 10-week incubation program for blockchain startups in Buenos Aires, one of the six cities selected as the program’s regional hubs. Binance Labs invests in early-stage teams through incubation, direct investments and limited partnerships.
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