On Monday, a Belgium-based investment company acquired Bitstamp, the largest digital currency exchange in the European Union by volume, with turnover of $100 million per day. The acquiring company has more than 2 billion euros in assets under management and is the European subsidiary of the South Korea-based investment company that owns Korbit, a South Korean cryptocurrency exchange. Also this week, Bittrex International announced plans to launch a digital trading platform that will feature a streamlined and feeless token approval process. The platform will seek to identify tokens that are consistent with their jurisdiction's regulatory environment and match token teams to a network of international exchange partners. According to a press release, Bittrex International will operate within the regulatory framework established by the European Union and the Malta Virtual Financial Assets Act.

Malta, recently dubbed "Blockchain Island," is scheduled to host the Malta Blockchain Summit this week. During the summit, three new blockchain technology bills that were adopted earlier this year will take effect: (1) The Malta Digital Innovation Authority Act, (2) The Innovative Technological Arrangement and Service Act, and (3) The Virtual Financial Asset Act. The Malta Digital Innovation Authority Act establishes an agency that will regulate the blockchain industry, protect consumers and financial markets, and promote transparency. The Innovative Technological Arrangement and Service Act establishes a regime for the registration and certification of technology service providers and lays the groundwork for future technology developments. And The Virtual Financial Asset Act establishes the "financial instruments test," which provides guidance on whether a cryptocurrency or token issued in an initial coin offering (ICO) constitutes a security. Any asset that does not squarely pass the test will be deemed a "virtual financial asset" regulated by the new law.

On the domestic front, a major national bank received a patent on Tuesday for a device that securely stores cryptographic keys, which have been prone to hacking and cybertheft. The patent presents a significant business opportunity for the bank since most cryptographic keys are used for blockchain platforms. And a report published this week states that if bitcoin were to become a true global transactional currency, the electricity needed to mine bitcoin would generate enough carbon dioxide emissions to warm the planet beyond 2 degrees Celsius within 25 years. Critics challenge the research's assumption that bitcoin's energy consumption will increase linearly, claim it is too speculative to conclude whether or not bitcoin will become a true global transactional currency, and assert that hydroelectric power and other renewable energy resources provide the potential for bitcoin mining to go green.

To read more about the topics covered in this week's post, see the following:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.