France

French startup Mistral AI closes $415M funding round

The French artificial intelligence startup Mistral AI closed a funding round worth around $415 million as it strives to be the EU’s rival to OpenAI.

French artificial intelligence (AI) startup Mistral AI has announced it raised €385 million ($415 million) in its latest funding round to develop its technology and open-source software.

Andreessen Horowitz and the company’s initial backers, Lightspeed Ventures, led the round, which closed on Dec. 11. This follows a previous funding round in June where Mistral raised $113 million in seed funding. The company is currently valued at around $2 billion.

Mistral AI focuses on open-source technology for generative AI tools, chatbot development and customizable features. It aims to make its products available to the general public in early 2024.

Societe Generale issues its first green bond on Ethereum

The unsecured bond has a value of 10 million euros and a maturity of three years, with all the proceeds going for eligible green activities investments.

The third-largest bank in France, Societe Generale, reported issuing its first digital green bond as a security token on the Ethereum public blockchain. The bond, registered by Forge, a subsidiary of Societe Generale, went public on Nov.

The bond has a value of 10 million euros (around $11 million) and a maturity of three years.

The digital infrastructure of the bond grants 24/7 open access to the data on its carbon footprint through the bond’s smart contract.

“This enables issuers and investors to measure the carbon emissions of their securities on the financial infrastructure.”

Another innovation of the bond is a technical option for investors to settle securities on-chain through the EUR CoinVertible, a euro-pegged stablecoin issued by Forge in April 2023.

“While Central Bank Digital Currencies (CBDC) solutions are being experimented, this panel of settlement methods demonstrates the large capabilities of SG-FORGE in providing full spectrum of on-chain services.”

Societe Generale has been active in the crypto sector, issuing euro bonds on the Ethereum blockchain and security tokens on the Tezos blockchain, as well as proposing Dai (DAI) stablecoin loans in exchange for bond tokens. In July 2023, Forge became the first company to obtain the highest access license for crypto services in France.

Crypto ownership in Canada slips in 2023, but average value of holdings rises

Only 34% of Canadians still believe that crypto “will play a key role in the future,” but the number of those able to give a basic definition of digital currencies has risen slightly.

The number of crypto hodlers in Canada dropped slightly in 2023, but the average value of their holdings rose significantly. However, 77% of respondents regret investing in crypto assets, according to a survey published by the Ontario Securities Commission (OSC).

The OSC published its “Crypto Assets Survey 2023” on Nov.

The survey results reflect a general pessimism toward crypto in the country’s population, which could be due to the period when the research was done.

Fewer Canadians own crypto assets than a year ago, dropping from 13% in 2022 to 10% in 2023.

Despite the pessimism, 39% of respondents claimed their crypto portfolio is profitable, which is only slightly less than in 2022 (46%).

The most common reason for buying crypto remains consistent.

French central bank looks at certification, incorporation as part of DeFi regulation

The Banque de France presented a well-written consideration of issues related to DeFi and the forthcoming MiCA regulation, with suggestions.

The Banque de France has contributed to the discussion of European crypto asset regulation with a close examination of decentralized finance (DeFi) and potential approaches to its regulation. The discussion is timely, given the growing use of tokenization in finance and the introduction of blockchain technology in many economic sectors, the authors said.

The paper, written by members of the Fintech-Innovation Hub at the French central bank’s Prudential Supervision and Resolution Authority, notes that the term “DeFi” represents a range of crypto asset services, technologies and associated risks, which cannot be adequately addressed with current regulations:

“The main idea developed in this paper is that the regulation of disintermediated finance cannot simply replicate the systems that currently govern traditional finance.”

The paper suggests that regulation through certification could strengthen blockchain infrastructure security, decentralized autonomous organizations (DAOs) could be supervised by making them incorporate, and control over the intermediaries that allow access to DeFi services could enhance customer protection. As currently written, the European Union’s Markets in Crypto-Assets (MiCA) regulation excludes fully decentralized services from its scope and would have to redefine “crypto asset service providers” to make it possible to extend regulation to DeFi intermediaries.

Blockchain code could be subject to minimum standards, the paper argues. However, controlling the concentration of validation capacities in a DAO would be fraught with complexities and knock-on effects on a public blockchain, so the authors prefer a “resolution mechanism” that can be triggered after a cap has been reached. A private blockchain has the advantage of selecting trusted players but would require a more specific regulatory framework.

Furthermore, the code in smart contracts could be subject to certification through a variety of mechanisms to assure it functions as intended, the paper says. Decentralized oracles could be regulated to avoid collusion.

L’@ACPR_actu publie un document de réflexion sur la #DeFi. Ce document avance plusieurs pistes possibles de réglementation et invite les parties prenantes à l’occasion d’une consultation publique.
https://t.co/5HEVHKB2kH pic.twitter.com/OLVkdZDh31

— Autorité de contrôle prudentiel et de résolution (@ACPR_actu) April 3, 2023

Stablecoin regulation would be a necessary complement to DeFi regulation, as stablecoins “are now essential to the functioning of DeFi.” This is complicated under the MiCA framework, due for its final vote this month, as “the MiCA Regulation does not apply to services provided in a fully decentralized manner without any intermediary.” An additional rule would have to be introduced here, too, for the regulation of stablecoin use in DAOs.

At 45 pages, not including a consultation questionnaire, the paper’s argumentation is dense. Nonetheless, the English translation distinguishes itself with its clear language and thorough descriptions of DeFi technology and the issues it perceives with it.

Magazine: ZK-rollups are ‘the endgame’ for scaling blockchains: Polygon Miden founder

European banks launch ‘sustainable’ blockchain platform for digital bonds

The platform makes the first use case of a so-called “Proof of Climate” blockchain protocol.

Two banks from Sweden and France announced the launch of a new digital bond platform built on blockchain technology. The platform will enable institutional clients to issue, trade and settle bonds digitally, providing a more efficient and secure process than traditional methods.

The platform is a joint project of Skandinaviska Enskilda Banken (SEB) and Credit Agricole Bank, called “so|bond.“ According to the announcement from April 3, the blockchain network will be using a validation protocol, “Proof of Climate awaReness,” and minimizing its environmental footprint.

The Proof of Climate awaReness protocol is said to enable an energy consumption comparable to non-blockchain systems, and incentivize participating nodes to improve the environmental footprint of their infrastructures.

Each node will be remunerated according to a formula linked to its climate impact: the lower the environmental footprint, the larger the reward. So|bond would become the first use case for the protocol developed by the French-based IT provider Finaxys.

Romaric Rolleti, head of innovation and digital transformation at Credit Agricole, said that the bond blockchain platform was part of a larger plan for the bank’s digital transformation:

“The platform’s innovative approach, both to the blockchain infrastructure and to the securities market, is coupled with the strong commitment to green and sustainable finance that is at the center of our Societal Project.”

The project joins many other efforts to explore the use of blockchain, smart contracts and the Internet of Things for a global environment cause. For example, in October 2022, the Bank for International Settlements, the Hong Kong Monetary Authority and the United Nations Climate Change Global Innovation Hub presented the results of their Genesis 2.0 initiative — two prototypes of tokenized green bonds.

The view from Paris Blockchain Week 2023: Web3 builds while the city burns

It was champagne and optimism for Paris Blockchain Week 2023 despite Parisian protests and economic uncertainty.

Paris Blockchain Week (PBW) celebrated its fourth edition in spring 2023 against a backdrop of riots, protests and general civil unrest. The builders in the Bitcoin (BTC), crypto, and Web3 spaces were unfazed by protesters chanting and dancing on the doorstep of the conference venue.

The event occurred amid ongoing protests in Paris and worsening macroeconomic conditions in France. Many attendees expressed concern about the impact of these factors on the future of the blockchain and crypto industry, particularly in Europe.

Nevertheless, the overall mood at PBW 2023 was optimistic, with many attendees citing the recent surge in Bitcoin’s price as a sign of growing mainstream acceptance of the technology. As the CEO of Ledger, Pascal Gauthier, explained to Cointelegraph: “Bitcoin was designed for this.”

“Bitcoin was designed in reaction to Lehman Brothers in the 2008 crisis. It was designed because you can’t trust central authorities. And it’s designed because it’s clear that central authorities will fail. It’s not a question of if. It’s more a question of when.”

However, as protestors marched by the entrance of “Les Salles du Carousel” — the crypt in the Louvre where the event was held — there appeared to be a disconnect between the Web3 space and reality.

Denelle Dixon, CEO of the Stellar Development Foundation, explained that “It is a little bit like we’re not recognizing what’s happening with the builders and what’s happening with the protesters.” Nir Kouris, the founder of Creator Nations, told Cointelegraph that the work of Paris Blockchain Week is “super important,” but it’s important to speak to those in the mainstream world:

“We need to not live in a bubble to include, to embrace, to empower all these people from outside. They don’t have a clue about what is blockchain. So our goal is to use different and different terminology so we can include all of them into the conversation.”

Cointelegraph interviewed some of the protesters during the event; very few were aware of crypto, and some had not heard the word “Bitcoin” before.

*Cointelegraph speaks to protestors in front of the conference venue*

The streets of Paris saw fires, trash and fire extinguisher fluid — an apocalyptic scene for many of the tourists visiting France — but Parisians were unperturbed, and some called for calm. Gauthier, a Parisian through and through, shrugged his shoulders at the protests. It’s part of French culture to take to the streets, he explained.

Another key theme throughout the event was the risk that Web2 companies, including Google, Nasdaq and Facebook, and traditional brands, such as LVMH and Gucci, could be co-opting the Web3 vision. The headliners at PBW included established brand managers from the likes of Diesel and Fiat. What are established retail brands doing at a crypto conference? Animoca Brands CEO Robby Yung wades in:

“The reason that there is a place for them in Web3 is because brands themselves have power. You know, they resonate with consumers, whether it’s gaming brands or, you know, handbag and and luxury watch brands. Brands have resonance with consumers.”

Web3 provides new ways to innovate, Yung explained. Ryan Nix, head of solutions architecture at Coinbase, agreed, to an extent. He said that Web2 players want to get in on the action, but must also “obfuscate difficulty from their users.” Ultimately, Nix continued, to access a greater audience, simplifying the somewhat complicated crypto and blockchain tools could help.

*Cointelegraph speaks to Coinbase’s Nix*

An interesting omission for the 2023 iteration was the notable absence of the crypto exchange Binance. In 2022, Binance financed the largest stand at the conference, and Changpeng Zhao, the CEO of the crypto exchange, gave a keynote speech. This year, the world’s largest exchange is caught up in a lawsuit in the United States while the crypto bear market rages on.

As the industry evolves, events like PBW 2023 will play an increasingly important role in bringing together key players and driving innovation. However, the crypto space must begin to address more real-world use cases to reach the mainstream and catch the eye of those ordinary people taking to the streets of Paris.

G7 to collaborate on tighter crypto regulation: Report

Leaders from Japan, the United States, the United Kingdom, Canada, France, Germany and the European Union are expected to outline a global cooperative strategy for digital assets in May.

The next G7 meeting might bring a push from the seven biggest democracies for tougher regulations on cryptocurrencies around the world, Kyoto news agency reported on March 25.

Together, leaders from Japan, the United States, the United Kingdom, Canada, France, Germany, and the European Union will outline a cooperative strategy to increase crypto transparency and enhance consumer protections, as well as address potential risks to the global financial system, officials told Kyoto. This year’s summit is set to happen in Hiroshima in May.

Among G7 members, Japan already regulates cryptocurrencies, while the European Union’s Markets in Crypto-Assets (MiCA) regulation is set to go into effect in 2024. The United Kingdom is gradually developing its crypto framework, with a special category for crypto assets on tax forms recently introduced and plans for a digital pound in the works.

Canada treats digital assets as securities and the United States currently applies existing financial regulations to crypto, with some anticipating a crypto regulatory framework from lawmakers in the coming months.

Parallel efforts toward standards for digital assets are being made by the Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS), the group of the 20 biggest economies of the world — collectively known as G20 — announced in February during a meeting in Bengaluru, India.

*India’s finance minister, Nirmala Sitharaman, during FMCBG meeting in Bengaluru. Source: Ministry of Finance*

Recommendations on the regulation, supervision and oversight of global stablecoins, crypto assets activities and markets are scheduled to be delivered by July and September. It is unclear, however, what the overall tone of the recommendations will be.

For instance, in February the IMF released an action plan on crypto assets, urging countries to abolish legal tender status for cryptocurrencies. The IMF opposition to crypto as legal tender is well known, especially since El Salvador adopted Bitcoin as its official currency in September 2021. The fund, however, has been advocating for countries to adopt greater crypto regulation, while it’s working on an interoperable central bank digital currency platform to connect multiple global CBDCs and enable cross-border transactions.

Magazine: Best and worst countries for crypto taxes — plus crypto tax tips

American regulators are pushing hard against crypto: Law Decoded, Feb. 28–March 6

Crypto mining operators, custodians and Binance personally received a fine doze of the United States officials’ attention last week.

American lawmakers and regulators continue to compete in their creative efforts to propose anything but comprehensive game rules for the crypto industry.

Senators Edward Markey and Richard Blumenthal have penned a letter asking Meta CEO Mark Zuckerberg to deny young adults access to the firm’s metaverse platform. According to the two lawmakers, allowing teenagers between 13 and 17 years old entrance to the virtual environment posed “serious risks,” citing privacy concerns, eye strain and online bullying.

Along with his colleague Jared Huffman, Markey also announced the reintroduction of the Crypto-Asset Environmental Transparency Act in Congress. The bill would require crypto mining companies to disclose emissions for operations that consume more than five megawatts of power, and require the Environmental Protection Agency administrator to head up an interagency investigation of the impact of crypto mining in the United States.

Another group of Senators — Elizabeth Warren, Chris Van Hollen and Roger Marshall — have sent a letter to Binance CEO Changpeng “CZ” Zhao expressing concern over several areas of Binance’s activities. The Senators requested information from the company, including its balance sheet. The trio claim there is evidence that the company attempted to evade U.S. sanctions and facilitated the laundering of at least $10 billion.

The United States Securities and Exchange Commission chair Gary Gensler has again backed a proposed rule that would extend asset custody rules to more cryptocurrencies, saying investors need more protection. The proposed rule would require written agreements between advisers and custodians, add requirements for foreign institutions serving as custodians, and explicitly extend the safeguard rules to discretionary trading.

France on the verge of passing stringent crypto firm licensing laws

The French National Assembly has voted to legislate stricter licensing rules for new cryptocurrency firms to harmonize local laws with proposed European Union standards. The vote was passed with 109 votes (60.5%) in favor to 71 (39.5%) against. The French Senate has already passed the bill, which now goes to President Emmanuel Macron, who has 15 days to either approve it or send it back to the legislature.

If passed, the new law would oblige French-based cryptocurrency service providers to comply with stricter Anti-Money Laundering rules, show that customer funds are segregated, adhere to new guidelines on reporting to regulators, and provide more detailed risk and conflict of interest disclosures as a means to strengthen consumer protection.

One more free economic zone for digital assets in the UAE

Ras Al Khaimah (RAK), one of the seven emirates that comprise the United Arab Emirates, is set to launch a free zone for digital and virtual asset companies as the country’s approach to the industry continues to attract global crypto players. The RAK Digital Assets Oasis (RAK DAO) will be a “purpose-built, innovation-enabling free zone for non-regulated activities in the virtual assets sector.”

The free zone will be dedicated to digital and virtual assets service providers in emerging technologies, such as the metaverse, blockchain, utility tokens, virtual asset wallets, nonfungible tokens, decentralized autonomous organizations, decentralized applications and other Web3-related businesses.

Proposed South Dakota amendment would prohibit cryptocurrencies, but not CBDCs

Legislation has been introduced in the American state of South Dakota to amend the Uniform Commercial Code to limit the definition of money to exclude cryptocurrencies. Central bank digital currencies (CBDCs) would still be considered money under the proposed new definition. The 117-page amendment, introduced into the state House of Representatives by Republican Mike Stevens, defines “money” as “a medium of exchange that is currently authorized or adopted by a domestic or foreign government.”

DeFi to be examined at inaugural CFTC tech advisory meeting: Finance Redefined

French police arrested two individuals in connection with the Platypus exploit in the month of February.

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you significant developments over the last week.

DeFi will be in focus during the inaugural Commodity Futures Trading Commission (CFTC) tech advisory meeting, where a panel will “explore issues in decentralized finance.”

Polygon, a layer-2 scaling protocol for Ethereum, has launched a zero-knowledge decentralized identity solution to the public nearly a year after announcing its development.

The cryptocurrency phishing scammer behind some of the most high-profile and high-value Web3 thefts claims to have packed up shop, saying it was “time to move on to something better.”

In another DeFi exploit-related development, Platypus Finance has created a portal that enables users to view how much the platform owes them following the recent $9.1 million exploit. The French police have arrested two suspects and seized 210,000 euros ($223,000) worth of crypto in connection with the Platypus exploit.

The DeFi market had a bearish start to March, where the price slump on Thursday wiped out most of the gains from the top 100 DeFi tokens. Barring a few, most of the top 100 tokens traded in the red on the weekly charts.

Decentralized finance to be examined at inaugural CFTC tech advisory meeting

The United States commodities regulator is set to take a close look at the decentralized finance space at an upcoming meeting of its tech committee, with crypto industry executives also invited.

The CFTC announced on March 1 that the agenda for the March 22 meeting of its Technology Advisory Committee will include a panel on “exploring issues in decentralized finance.”

Continue reading

Notorious Monkey Drainer crypto scammer says they’re ‘shutting down’

The scammer with the pseudonym Monkey Drainer posted to their Telegram channel on March 1 that they “will be shutting down immediately,” and all “files, servers and devices” related to the drainer “will be destroyed immediately” and it “will not return.”

The scammer even advised budding “young cyber criminals,” saying they shouldn’t “lose themselves in the pursuit of easy money,” and only those “with the highest level of dedication” should operate a “large scale cybercrime” outfit.

Continue reading

Polygon launches decentralized ID product powered by zk-proofs

The Polygon ID service uses zero-knowledge proofs, which use cryptographic techniques to allow users to verify their identity online without having their sensitive information passed or potentially stored with a third party.

Polygon Labs publicly released Polygon ID on March 1, almost 12 months after the project was officially launched in a closed-source environment. The Polygon team says Polygon ID was built to “solve the issue of digital trust.”

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French police arrest 2 people in connection to Platypus attack

French police have arrested two suspects in connection with the $9.1 million Platypus exploit, and 210,000 euros ($223,000) worth of cryptocurrency has been seized, according to the local authorities.

Investigations leading to the arrests were supported by on-chain sleuth ZachXBT and crypto exchange Binance, Platypus said. The same exploiter compromised the decentralized protocol in three flash loan attacks on Feb. 16.

According to the latest update from the protocol, it launched a page that lets viewers check how much compensation they can get from the platform. The page contains several sections that allow users to better understand how much they are owed after the exploit. This includes an overview, a pre-attack net value and post-attack adjustments.

Continue reading

DeFi market overview

Analytical data reveals that DeFi’s total market value remained below $50 billion this past week. Data from Cointelegraph Markets Pro and TradingView shows that DeFi’s top 100 tokens by market capitalization had a bearish week, with most of the tokens trading in red, barring a few.

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education in this dynamically advancing space.

France pilots in-store crypto payments as Binance partners with Ingenico

A new partnership between Binance and Ingenico allows in-store payments in France via Binance Pay.

Mainstream crypto and crypto-based services adoption continues, with more companies bridging traditional financial (TradFi) solutions with decentralized financial (DeFi) solutions.

In an announcement on Feb. 22, a new pilot program launched between the crypto exchange, Binance and credit card service company Ingenico, allows in-store crypto payments via Binance Pay. Currently, the initial test of this offering is only available on Ingenico Axium payment terminals in France.

According to the announcement, the program accepts more than 50 cryptocurrencies. Initially, merchants will be paid in cryptocurrency; however, a crypto-to-fiat solution allowing merchants to receive fiat payments is set to pilot in Q2 of 2023.

The France pilot is going live with two merchants, Le Carlie and Miss Opéra, in the hospitality and retail sectors.

Additional European countries, where Binance is an approved crypto operator, are next on the list for service expansion. Binance is approved to operate in France, Italy, Lithuania, Spain, Cyprus, Poland and Sweden.

Typically, in-store devices require some form of integration to begin utilizing cryptocurrencies. However, the new solution claims to be an “all-in-one” device, making onboarding easier for merchants and consumers.

Jonathan Lim, head of Binance Pay and Binance Card, called the all-in-one device a “new way to approach the market” and said it will “accelerate access to consumers.”

Over the last year, Binance has worked on various payment solutions worldwide. It recently partnered with Mastercard to launch a prepaid crypto card in Brazil after successfully launching it in Argentina in August 2022.

Other companies have also tried bridging the gap between Web2 and Web3 payment systems. On Feb. 10, Bit2Me announced a partnership with Mastercard to launch a debit card that offers crypto cashback.