Bitcoin

Bitcoin Daily: Avanti Preparing To Apply For Banking Charter; NJ Lawmaker Introduces Regulatory Rules On Crypto

Bitcoin daily

A “future bank” focused solely on providing regulated services for digital assets is preparing to start, according to Coindesk on Monday (Feb. 24).

Called Avanti, the venture is put forward by Caitlin Long, a legislative champion for blockchain and a former Wall Street veteran. Long was preparing to apply for a special purpose depository institution (SPDI) charter early this week, Feb. 24.

The name Avanti means “forward” in Italian. The company was formed Jan. 6 and has already raised $1 million in seed funding.

The application hadn’t been put in as of Monday, but has eight products in its pipeline that aren’t available in the U.S. yet. Because trust companies can’t custody securities in the U.S., the SPDI will be an asset to make up for that.

Blockchain circles have been enamored with central bank digital currencies (CBDCs), but the feeling doesn’t seem to be mutual as banks aren’t as interested in that form.

Some representatives from the world’s central banks discussed the matter last week in Kyiv, Ukraine, at a conference arranged by the National Bank of Ukraine. At the conference, ideas about digital currencies were discussed, according to Coindesk.

But while NBU had been exploring that idea as far back as 2016, tests among a limited number of participants revealed no discernible advantage to using a CBDC. The tests did not rule out an alternative decentralized model, however.

The tests are currently on ice, awaiting more input from global professionals.

Meanwhile, a New Jersey lawmaker has introduced a bill that would require cryptocurrency firms to obtain a license before being able to operate, according to Coin Telegraph.

Assemblywoman Yvonne Lopez introduced the Digital Asset and Blockchain Technology Act on Feb. 20, which would introduce new standards and rules for how crypto businesses operate.

They’d be required to disclose their names, their anti-money-laundering policies and anti-terrorist-financing platforms, and their licensing and legal history to the State of New Jersey’s Department of Banking and Insurance.

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