Top five stories of the week – 19 August 2022
Here’s our pick of five of the best news stories from the world of finance and technology this week.
Abrdn takes up holdings in the digital securities exchange Archax
abrdn buys stake in Archax
Scottish asset management firm abrdn has finalized a deal to become the largest external shareholder in Archax, a UK-based regulated digital asset exchange.
Established in 2018, Archax helps institutional investors access blockchain-based digital assets, claiming to act as a “bridge” to traditional capital markets. It will be launched later this year.
Archax says it is the “first and only” digital securities exchange to receive approval from the Financial Conduct Authority (FCA) with trading, custody and brokerage permits.
Through its stake in Archax, abrdn aims to offer new investment opportunities through digital securities to its customers.
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The UN calls for comprehensive crypto regulation in developing countries
The United Nations Conference on Trade and Development (UNCTAD) has outlined the “risks and costs” of cryptocurrencies to developing countries in three policy guidelines, suggesting ways to limit their expansion.
UNCTAD, which promotes the interests of developing states in world trade, describes how crypto is a potential threat to financial stability, the allocation of capital and resources, and the security of monetary systems in developing countries.
Residents of emerging nations, such as Kenya, Venezuela and India, are disproportionately more likely to own digital currency, UNCTAD says, with 15 of the top 20 countries with the highest share of digital asset ownership emerging countries.
It calls on developing countries to curb crypto advertising and introduce robust regulation of crypto exchanges, digital wallets and other aspects of decentralized finance. It also proposes to ban financial institutions from holding crypto.
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Zopa founder Giles Andrews joins Hoares as a non-exclusive director
Hoares appoints Giles Andrews as non-exec director
UK private bank C Hoare & Co has appointed fintech veteran Giles Andrews as an independent non-executive director.
While Andrews has been involved in a number of fintech companies, it is his role as co-founder of peer-to-peer lending-turned-digital bank Zopa that he is best known for.
Andrews founded Zopa in 2004 as the company’s CFO before becoming CEO in 2007 and chairman in 2015. He is now a member of the fintech unicorn’s board, having served in that role since 2019.
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Monzo and Starling top the latest CMA customer satisfaction survey
Market research has revealed that challenger banks Starling and Monzo are the UK banks most likely to be recommended by their customers.
The results are from an independent survey carried out between July 2021 and June 2022 by the market research firm Ipsos as part of a regulatory requirement, and the results have been published on behalf of the Competition and Markets Authority (CMA).
In first place for overall service quality, with 81% of customers likely to recommend them, Starling and Monzo beat high street banks including Santander, NatWest and Lloyds.
The CMA says the survey promotes competition, “resulting in better experiences for all account holders”.
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Australian crypto exchange Swyftx is cutting 21% of its workforce
Swyftx is getting rid of a fifth of its workforce
Australian crypto exchange Swyftx is set to lay off 74 employees – 21% of its workforce – as the firm looks to downsize its business as it struggles with increasingly tough global economic conditions.
In a company-wide memo, co-CEOs Alex Harper and Ryan Parson cited an “uncertain business environment” with high inflation, rising interest rates, “highly volatile markets across all asset classes” and a looming global recession as reasons behind the decision.
“We started growing our team in a very different world, and it’s now prudent to ensure our cost base is consistent with this extended period of economic uncertainty,” Harper and Ryan say.
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