Fintech Update, 8/7 - 8/13
August 7-13, 2017
Leading Off
Nasdaq purchased market surveillance and compliance monitoring firm Sybenetix; 46 new ICOs have been announced for the coming months, despite a recent SEC decision promising greater scrutiny of them; the value of Bitcoin passed $4,000 for the first time; the U.K. issued a statement of intent regarding changes to the country’s data protection laws; China’s central bank is taking a more active role in regulating online payments firms; and Coinbase raised $100M in new funding, gaining a $1B valuation.
In the News
Wave of ICOs continues, despite recent SEC move. According to the New York Times, 46 new initial coin offerings (ICOs) have been announced since the SEC’s ruling last month that most ICOs are subject to regulation as securities offerings. Per the article, most of the announced ICOs “have little legal oversight [and] appear to conflict with the [SEC]’s basic advice.”
Bitcoin value passes $4,000. Over the weekend, the value of a Bitcoin rose above $4,000 for the first time, highlighting the digital currency’s recent and accelerating surge. The currency first topped $3,000 last week, and was trading at $3,700 only 24 hours before reaching $4,000. The surge has unleashed new speculation and interest in the digital currency as a store of value.
Hackers steal HBO files, demand bitcoin. Operating under the moniker “Mr. Smith,” a group of hackers stole and leaked confidential files from HBO, including an unaired episode of “Game of Thrones,” demanding a ransom of several million dollars in bitcoin to prevent further leaks. The hackers have since leaked additional files.
Crypto, crypto, crypto... The recent surge in Bitcoin’s value helped produce a flurry of articles on cryptocurrency investing. The WSJ highlights the growing community of digital currency investors and speculators; the NYT provides a cryptocurrency primer; and Quartz offers a tool to help potential digital investors determine which currency might for them.
U.K. legislation to strengthen data protection, align with GDPR. The U.K. government committed to revising and strengthening its data protection laws through the Data Protection Bill, which will bring the country in-line with the General Data Protection Regulation (GDPR), the new pan-European data protection law that takes effect in May 2018.
Nasdaq acquires Sybenetix. The stock exchange purchased the London-based Sybenetix, which builds AI- and behavioral analytics-enabled market surveillance and compliance monitoring systems. Nasdaq intends to use the company's tools and expertise to improve its defenses against market manipulation, market abuse, and other financial crimes.
Venmo adds QR code functionality. The mobile payments service added scannable QR codes to user profiles, allowing users to add contacts by scanning another’s code or by accessing a QR code shared via text message or social media. Venmo anticipates the new feature will make it easier and faster to add contacts, particularly those with common names or handles.
Coinbase raises $100M, becomes unicorn. The digital currency exchange picked up $100 million in Series D financing from several venture firms, including IVP, Spark Capital, and Greylock Partners. Coinbase has now raised $217 million total, with its latest round giving it a valuation over $1 billion.
Combatting the lure of the West Coast. The NYT profiles the New York-based FinTech Innovation Lab, the accelerator backed by Wall Street power-players like Henry Kravis, Fred Wilson, and Jim Robinson, and its efforts to keep fintech innovators in the Big Apple rather than losing them to Silicon Valley.
Have a great week!
The Fintech Update Team