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Protests create an unstable setting for Bangladesh’s General Elections

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Bangladesh is heading to a crucial general election on December 30 amid a tense political atmosphere and widespread allegations of repression and intimidation by the ruling party. The main opposition alliance, led by the Bangladesh Nationalist Party (BNP), has accused the government of cracking down on its activists and supporters, arresting thousands and filing false cases against them. The government has denied the allegations and said it is only enforcing the law and order.

The election is seen as a test of the country’s democracy, which has been marred by violence, corruption and authoritarian tendencies in recent years. The incumbent Prime Minister Sheikh Hasina, who has been in power since 2009, is seeking a third consecutive term. She faces a challenge from Dr. Kamal Hossain, a veteran lawyer and former foreign minister, who is leading the opposition coalition called the Jatiya Oikya Front (National Unity Front).

The opposition has demanded a level playing field for the election, including a neutral caretaker government, a reformed election commission and an end to the digital security act, which critics say curbs freedom of expression and dissent. The government has rejected these demands and said the election will be free and fair under the existing constitutional framework.

The election campaign has been marked by clashes between rival supporters, attacks on opposition candidates and workers, and allegations of vote rigging and manipulation. The opposition has also expressed concern over the role of the military, which has been deployed across the country to maintain law and order. The government has said the military is only assisting the civil administration and will not interfere in the electoral process.

One of the most contentious issues in the 2018 Bangladesh election was the role and influence of the military. The ruling party, the Awami League, claimed that the deployment of army personnel across the country would boost the confidence of voters and ensure a peaceful and fair election.

However, the main opposition party, the Bangladesh Nationalist Party, accused the government of using the army to intimidate and harass its supporters and candidates. The army was also accused of being biased in favor of the Awami League and of interfering in the electoral process. The army deployment lasted for 13 days, from December 29, 2018, to January 10, 2019.

According to some reports, at least 12 people were killed in election-related violence, despite the presence of security forces. The role of the military in Bangladesh’s politics has been a source of controversy and instability for decades, as the country has experienced several military coups and periods of martial law since its independence in 1971. The 2018 election raised questions about the extent of civilian control over the military and the prospects for democratic consolidation in Bangladesh.

The 2023 election comes at a time when Bangladesh is facing several challenges, such as the Rohingya refugee crisis, the economic impact of the Covid-19 pandemic, and the growing threat of Islamist extremism. The outcome of the election will have significant implications for the country’s stability, development and regional relations.

The role of the military in Bangladesh’s politics has been a source of controversy and instability for decades, as the country has witnessed several military coups and periods of martial law since its independence in 1971. The 2018 election raised questions about the extent of civilian control over the military and the prospects for democratic consolidation in Bangladesh.

The implications of the military’s role in the 2018 election were manifold. On one hand, it could be seen as a positive sign that the military did not intervene directly or overtly to overthrow or undermine the elected government, as it had done in the past.

This could indicate a degree of respect for constitutional norms and democratic institutions, and a recognition of the legitimacy and popularity of the Awami League. On the other hand, it could also be seen as a negative sign that the military still wielded considerable power and influence over the political process, and that it acted as a de facto ally of the ruling party, rather than a neutral arbiter.

This could undermine the credibility and fairness of the election and erode public trust and confidence in the democratic system. Moreover, it could create resentment and frustration among the opposition and its supporters, and fuel political polarization and violence. The military’s role in the 2018 election could also have implications for Bangladesh’s development and security.

On one hand, it could contribute to maintaining stability and order in a volatile and complex region, and to supporting the government’s efforts to achieve economic growth and social progress. On the other hand, it could also hamper the development of a vibrant and pluralistic civil society and limit the space for dissent and dialogue among different political actors.

Furthermore, it could also pose challenges for Bangladesh’s relations with its neighbors and allies, especially India and the United States, who have expressed concerns about the state of democracy and human rights in Bangladesh.

As the year comes to an end, Bangladesh faces a critical moment in its history. The country will hold a general election on December 30, which could determine its future direction and stability. However, the election campaign has been marred by violence, arrests, and allegations of repression and intimidation by the ruling party.

US SEC is taking ‘new look’ at Spot Bitcoin ETF proposals – Gary Gensler

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The US Securities and Exchange Commission (SEC) is reconsidering its stance on spot bitcoin exchange-traded funds (ETFs), according to its chair Gary Gensler. In a recent interview with Bloomberg, Gensler said that the SEC is taking a “new look” at the proposals for spot bitcoin ETFs, which would track the price of the cryptocurrency directly, rather than through futures contracts or other derivatives.

Gensler’s comments suggest that the SEC may be more open to approving spot bitcoin ETFs, which have been repeatedly rejected by the regulator in the past due to concerns over market manipulation, fraud, and lack of transparency. The SEC has only approved bitcoin futures ETFs so far, which are based on contracts traded on regulated exchanges such as the Chicago Mercantile Exchange (CME).

But what is the difference between spot bitcoin ETFs and futures bitcoin ETFs? A spot bitcoin ETF would allow investors to buy and sell shares that represent the actual bitcoin held by the fund, while a futures bitcoin ETF would allow investors to buy and sell shares that represent contracts that bet on the future price of bitcoin. A spot bitcoin ETF would reflect the current market price of bitcoin, while a futures bitcoin ETF would reflect the expected future price of bitcoin.

Spot bitcoin ETFs are seen as a more convenient and cost-effective way for investors to gain exposure to bitcoin, without having to deal with the technical and security challenges of buying and storing the cryptocurrency directly. However, spot bitcoin ETFs also face more regulatory hurdles and risks, as they would require the SEC to approve the underlying bitcoin market, which is largely unregulated and prone to manipulation, fraud, and hacking.

However, Gensler also cautioned that the SEC still has high standards for any spot bitcoin ETFs that seek its approval. He said that the SEC would need to see robust oversight and surveillance of the underlying bitcoin market, as well as adequate investor protection and disclosure. He also said that the SEC would consider the environmental impact of bitcoin mining, which consumes a large amount of energy and generates greenhouse gas emissions.

Gensler’s remarks come amid growing demand and interest for spot bitcoin ETFs from investors and industry players. Several firms, including Fidelity, VanEck, and Valkyrie, have filed applications for spot bitcoin ETFs with the SEC, hoping to tap into the growing popularity and adoption of the cryptocurrency.

Spot bitcoin ETFs are seen as a more convenient and cost-effective way for investors to gain exposure to bitcoin, without having to deal with the technical and security challenges of buying and storing the cryptocurrency directly.

The SEC has not yet made a decision on any of the pending spot bitcoin ETF applications, but it is expected to do so in the coming months. The SEC has set a deadline of February 14, 2024, to approve or deny VanEck’s spot bitcoin ETF proposal, which was filed in March 2023.

The SEC has also extended its review period for Fidelity’s spot bitcoin ETF proposal, which was filed in May 2023, until January 26, 2024. The SEC has not yet announced a timeline for Valkyrie’s spot bitcoin ETF proposal, which was filed in July 2023.

DTCC closes deal to Buy Securrency Amid Fresh Venture Funds for BTC/ETH based projects

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The Depository Trust & Clearing Corporation (DTCC), a leading provider of post-trade infrastructure and services, announced today that it has completed the acquisition of Securrency, a blockchain-based fintech company that offers a suite of tools for digital asset issuance, compliance, and trading.

The deal, which was first announced in October 2023, marks a significant milestone for the integration of traditional finance and crypto markets, as DTCC aims to leverage Securrency’s technology to enhance its existing offerings and create new solutions for its clients.

Securrency is known for its patented Compliance Aware Token (CAT) framework, which enables the creation of smart securities that can automatically enforce regulatory rules and contractual obligations across different jurisdictions and platforms. Securrency also offers a decentralized exchange (DEX) platform that allows users to trade digital assets with low latency, high liquidity, and minimal fees.

By acquiring Securrency, DTCC hopes to expand its capabilities in the digital asset space and offer more value-added services to its customers, such as tokenization, custody, settlement, and reporting. DTCC also plans to collaborate with Securrency to develop new products and standards for the emerging crypto industry, such as interoperability protocols, identity solutions, and governance models.

“Securrency is a pioneer in the digital asset space, and we are thrilled to welcome them to the DTCC family. This acquisition will enable us to accelerate our innovation agenda and deliver cutting-edge solutions that meet the evolving needs of our clients and the market,” said Michael Bodson, President and CEO of DTCC.

“DTCC is a trusted leader in the global financial system, and we are honored to join forces with them. Together, we will leverage our complementary strengths and expertise to create a more efficient, secure, and inclusive financial ecosystem for the benefit of all stakeholders,” said Dan Doney, Co-Founder and CEO of Securrency.

DTCC’s clients include banks, broker-dealers, asset managers, mutual funds, hedge funds, insurance companies, and other financial institutions that participate in the U.S. and global capital markets. DTCC processes over $2 quadrillion worth of securities transactions annually and provides clearing, settlement, risk management, and data services for various asset classes.

Bitcoin, Ethereum-based projects see fresh venture Funds.

In this week’s funding wrap, we take a look at some of the latest investments in the crypto space, focusing on Bitcoin and Ethereum-based projects. These projects aim to provide innovative solutions for various use cases, such as decentralized finance, gaming, identity, and scalability.

Chainflip, a cross-chain liquidity protocol that enables fast and secure swaps between any blockchain, raised $6 million in a seed round led by Framework Ventures and ParaFi Capital. Other investors include CoinFund, Delphi Digital, Maven 11, and KR1. Chainflip plans to launch its mainnet in Q1 2024 and integrate with Bitcoin, Ethereum, Polkadot, Cosmos, and Avalanche.

Immutable, a layer-2 scaling solution for Ethereum-based NFTs and gaming, raised $60 million in a Series B round led by BITKRAFT Ventures and King River Capital. Other investors include Prosus Ventures, Galaxy Interactive, Fabric Ventures, Alameda Research, and AirTree Ventures. Immutable claims to offer zero gas fees, instant trades, and carbon neutral NFTs.

Magic, a passwordless authentication platform that leverages blockchain technology and decentralized identity standards, raised $27 million in a Series A round led by Northzone. Other investors include Tiger Global, Volt Capital, CoinFund, Digital Currency Group, and Placeholder. Magic aims to provide a seamless and secure login experience for web3 and web2 applications.

StarkWare, a scalability and privacy solution for Ethereum using zero-knowledge proofs, raised $50 million in a Series B round led by Sequoia Capital. Other investors include Paradigm, Founders Fund, Wing Venture Capital, DCVC, Scalar Capital, and Semantic Ventures. StarkWare powers several projects in the DeFi space, such as dYdX, Immutable X, and DeversiFi.

Wintermute, a crypto market maker that provides liquidity for spot and derivatives exchanges, raised $20 million in a Series B round led by Lightspeed Venture Partners. Other investors include Pantera Capital, Sino Global Capital, Kenetic Capital, Rockaway Blockchain Fund, and Hack VC. Wintermute plans to expand its team and product offerings, as well as explore new markets and regions.

M-PESA Partners With Visa to Launch Physical Debit Cards to Its Millions of Customers

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Mobile phone-based payments and money transfer service M-PESA, has partnered with payments processing giant Visa, to issue physical debit cards to its millions of customers.

The physical cards will be operational across the eight countries where M-PESA is available, enhancing the convenience for customers who require reliable payment methods for various subscription services. According to M-PESA, the debit card will be a tap-to-go solution for customers that will also enable merchants to receive payments seamlessly.

Also, the company announced that it will provide tourists with a solution that will enable any visitor to the eight M-PESA markets to pair their Visa card with M-PESA for seamless payments across almost 1 million businesses on the service.

Announcing this recent development, M-PESA wrote on X,

“In line with our purpose of transforming lives, we are innovating our payment solutions to provide customers and businesses with more options and additional convenience. As part of this strategy, Safaricom has achieved PCI DSS compliance, which builds on our strategic partnership with Visa, expanding M-PESA’s payment capabilities to include card issuing and acquisition.

“PCI DSS compliance enables M-PESA to begin offering tap-to-pay card payments for the more than 60 million customers, 5 million businesses and 100,000 developers across our entire ecosystem. This will empower them to receive mobile payments, online and in-person card payments from any customer across the world. M-PESA will also provide tourists with a solution that will enable any visitor to the eight M-PESA markets to pair their Visa card with M-PESA for seamless payments across almost 1 million businesses on the service.

“FinTechs and financial institutions are equally set to leverage our card processing capabilities empowering them to provide end-to-end mobile and card payment solutions. Together with Visa, M-PESA currently offers virtual payment cards to our more than 60 million customers and 925,000 merchants across our markets”.

Until now, M-PESA only provided its customers with a virtual card called GlobalPay, powered by Visa. The virtual card is linked to M-PESA users wallet and enables them to make payments to international online merchants for goods and services using their card details.

Those virtual cards were however limited to only online purchases and could not be used at Kenya’s cash-first retail stores. 

With the roll-out of physical debit cards, M-PESA, which serves over 51 million Kenyans, is set to transform the payment habits in the country where it operates, making it a major player in the global digital payments arena.

This remarkable step is designed to build on the success of M-PESA’s mobile money services and extends its functionality beyond the existing virtual GlobalPay card to include physical retail transactions.

Established on the 6th of March 2007 by Vodafone’s Kenyan associate, Safaricom, M-PESA is Africa’s leading mobile money service with more than 604,000 active agents operating across the Democratic Republic of Congo (DRC), Egypt, Ghana, Kenya, Lesotho, Mozambique and Tanzania.

The Fintech company has been lauded by many, for giving millions of people access to the formal financial system, and for its pivotal role in reducing crime in otherwise largely cash-based societies.

EU Opens Legal Action Against X Over Disinformation Concerns

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The European Union (EU), has initiated legal actions against X, due to concerns related to disinformation and illegal content.

The EU commissioner for internal market, Thierry Breton said on Monday that the commission opened formal infringement proceedings against X, a move in response to suspected breaches of X’s transparency obligations and duties to counter illegal content and disinformation.

Breton said,

“Today’s opening of formal proceedings against X makes it clear that with the DSA, the time of big online platforms behaving like they are too big to care has come to an end. We invite X to cooperate with us in this investigation”.

The opening of legal proceedings implies that the EU will investigate X’s systems and policies related to certain suspected infringements, to ensure that European citizens are safeguarded online.

In response to the EU’s legal action, X disclosed that it remains committed to complying with the Dififal Services Act, and is cooperating with the regulatory process.

The social network platform added that it is important if the legal action taken can remain free of political influence and doesn’t contradict the law.

X wrote,

“It is important that this process remains free of political influence and follows the law. X is focused on creating a safe and inclusive environment for all users on our platform while protecting freedom of expression, and we will continue to work tirelessly towards this goal”.

The European Commission launched the proceedings under the DSA “on the basis of the preliminary investigation conducted so far, including based on an analysis of the risk assessment report submitted by X in September.

Recall that the commission had earlier sent X a formal request for information in October, several days after Hamas’s attack on Israel, demanding answers on the alleged spread of illegal content and disinformation.

X responded by disclosing that it had already removed numerous accounts associated with Hamas from its platform. The investigation marked the first instance under the EU’s regulations which came into effect in August.

Notably, following the EU’s recent legal action against X, the investigation will also address a suspected deceptive design of the X user interface, notably focusing on the platform’s blue checkmark.

X however disclosed that the blue ticks denote verified accounts that have an active subscription to the X Premium service and meet certain eligibility requirements, such as showing a display name and profile photo, being in active use, and being secure and non-deceptive.

It is worth noting that under the recent EU law, called the Digital Services Act (DSA), platforms with more than 45 million active users are subject to content moderation rules.

Therefore, infringements of the DSA can result in fines, and financial penalties which can be up to 6% of global turnover. In exceptional cases, a penalty might include a temporary shutdown of the company.