FinTech Futures: Top five stories of the week – 11 August 2023
Here’s our pick of five of the top news stories from the world of finance and tech this week.
Revolut halts crypto services in the US citing “evolving regulatory environment”
Revolut suspends crypto operations in the US
Revolut confirmed this week that from 2 September, its US customers will no longer be able to place buy orders for crypto with the bank, with access due to be fully disabled from 3 October.
Speaking to FinTech Futures, a Revolut spokesperson attributed the move to “the evolving regulatory environment” in the country and “uncertainties around the crypto market”.
Its announcement is indicative of the increasingly strenuous relationship between US regulators and cryptocurrency, coming mere months after the Securities and Exchange Commission (SEC) cracked down on industry heavyweights Coinbase and Binance.
PayPal launches US dollar stablecoin PayPal USD
PayPal is set to launch a US dollar-denominated stablecoin, PayPal USD, in a bid to address the emerging potential of fully-backed and regulated stablecoins to transform payments in Web3.
PayPal says the stablecoin has been “designed to reduce friction” for in-experience payments in virtual environments, enable quick transfers of value to support friends and family, send remittances and make international payments, and foster its continued expansion into digital assets.
“The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar,” says Dan Schulman, president and CEO of PayPal.
Banque de France, ERAFP, Generali Group tap Iceberg Data Lab for ESG data solutions
Iceberg Data Lab signs three new clients
Banque De France, France’s central bank, Generali Group, the global asset management and insurance firm and ERAFP, a French public service additional pension scheme, have enlisted Iceberg Data Lab’s scientific-led dataset to assess the environmental impact of their portfolios.
The dataset, which is part of IDL’s impact calculation platform, will enable its three latest clients to invest more sustainably, build risk management strategies and develop environmental impact reporting.
Banque de France plans to mitigate its biodiversity impact; ERAFP intends to examine the exposure of its listed asset portfolios to climate change and biodiversity issues; while Generali Group will leverage the dataset to promote the ecological strategy of its investments.
FCA warns consumers against loan fee fraudsters amid rising summer borrowing
Last week, the Financial Conduct Authority (FCA) was warning banks about passing on interest rate gains to savers. Now it’s back again to take on loan fee fraudsters.
With a rise in borrowing over the summer, consumers stand a higher chance of falling victim to loan fee fraud, which is when a fraudster charges a consumer for a loan they never receive, often to the tune of a £260 loss per consumer.
The FCA has delivered new measures this week with the launch of its ‘3-step-check’ campaign, which aims to increase awareness around this type of fraud, reveal the tell-tale signs consumers should watch out for and protect the integrity of the lending process.
Italy’s government to tax banks on profits from interest rate rises
Italy announces 40% tax on banks
Tapping an emerging trend across Europe, the Italian government, led by prime minister Giorgia Meloni, shocked the country’s financial industry this week by announcing a one-off 40% tax on its banks.
The tax would target the net interest income banks are set to generate as a result of increased interest rates. The funds raised by the tax, calculated to be around €2 billion, are to be applied to alleviate the cost of borrowing for households and businesses.
After the news caused shares in some Italian banks to tumble, ministers were quick to clarify that it would set a cap for payouts and that the tax would not amount to more than 0.1% of banks’ total assets.
