Afghanistan’s internet blackout highlighted the need for more decentralized internet infrastructure solutions to bolster blockchain’s resistance to censorship. Afghanistan’s recent nationwide internet outage underscored a critical weakness in the world’s leading decentralized blockchains: their dependence on centralized internet providers that remain vulnerable to government intervention and technical failures. The country suffered a near-total internet shutdown that lasted about 48 hours before connectivity was restored on Oct. 1, Reuters reported. The disruption was reportedly ordered by the Taliban administration, though officials later blamed “technical issues” involving fiber optic cables. While blockchains aim to provide people with a public, censorship-resistant network for value transfers, their reliance on centralized internet providers makes these use cases challenging during outages. Read more
EU regulations assume all tokens are transferable, leaving non-transferable digital assets in regulatory limbo. Blockchain Sandbox reveals the solution. Opinion by: Elisenda Fabrega, general counsel at Brickken Europe’s rulebook was written for assets that move. Yet a large class of assets, including non-listed company quotas and bespoke revenue-sharing contracts, is non-transferable by design. Because Markets in Crypto-Assets’ (MiCA) definitions presuppose transferability, and MiFID II targets transferable securities and continues to apply to the digital representations of such securities, these “digital but nontransferable” instrument representations fall into a regulatory blind spot. The EU Blockchain Sandbox offers a way out: recognizing that a faithful “digital twin” can preserve the legal nature of the original non-transferable asset rather than being automatically qualified as a new, transferable security token. Read more
Bitcoin’s price spiked, and ETF inflows are on a tear as “Uptober” just gets started. Over the last two months, at least 31 crypto exchange-traded fund (ETF) applications were filed with the US Securities and Exchange Commission, 21 of which were filed in the first eight days of October. This ETF wave comes amid increased optimism in crypto markets, which have seen impressive gains over the last month. The price action has started a familiar pattern of markets booming in October, dubbed “Uptober.” This also coincides with major geopolitical developments that can affect the finance sector. In France, Prime Minister Sébastien Lecornu has stepped down after just 26 days, rocking the country’s financial markets. In the US, a government shutdown has put federal business on pause, including ETF considerations at the SEC. Read more