Rohit Sabhlok

There is a lot of voices re MiCA and impact on Reserves and Liquidity. All of designed to protect consumers which should always be a priority. Sure our regulators have to support businesses but not at the disadvantage of consumers.. 🚀 **Understanding MiCA's Reserve Requirements for Stablecoin Issuers** 🚀 The European Union's Markets in Crypto-Assets (MiCA) framework is setting new standards for stablecoin issuers. Here are the key reserve requirements: 🔹 **1:1 Reserve Ratio**: Issuers must hold reserves equal to or exceeding the value of their stablecoins in circulation. 🔹 **High-Quality, Liquid Assets**: Reserves must consist of high-quality, highly liquid assets like cash or government bonds to ensure stability. 🔹 **Segregation of Reserves**: Reserves must be kept separate from corporate assets and held in a bankruptcy-remote vehicle for enhanced security. 🔹 **Regular Audits and Disclosures**: Issuers are required to conduct regular third-party audits and provide transparent disclosures to build trust and ensure compliance. These measures aim to protect users and maintain market confidence, fostering a secure and reliable environment for stablecoins in the EU. 🌐💼 #Crypto #Stablecoins #MiCA #Blockchain #Fintech #Regulation #DigitalAssets --- Feel free to customize it further to match your style or add any additional insights you might have!

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Gemini joins Coinbase cutting ties with those who hire regulators.... not such a bad idea? It's a coincidence that I happen to exchange comments on LinkedIn about the FCA about the conflict of regulators going to firms. To manage conflicts I had suggested a 4 year gardening leave before regulators could join a financial firm.. the alternative was to make the FCA a high paying first choice for compliance people... also not a bad idea. I do think there is danger in crypto firms publicly throwing their weight around in this way... ...however.... I can see that when you are faced with a regulator that you can't sue, is pretty much unaccountable and is aggressive in it's attitude towards certain sectors of the industry... then what alternatives do you have? This maybe something in the future that firms could adopt in the UK if the FCA reforms don't come.

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🚀 abrdn Leads UK in Asset Tokenization with Hedera Hashgraph 🌐 In a groundbreaking move, abrdn PLC, the UK's largest active wealth manager, has embraced distributed ledger technology by initiating asset tokenization on Hedera Hashgraph. This initiative, in collaboration with regulated digital asset exchange Archax, marks abrdn as the first major UK asset manager to issue a tokenized security. Key Developments: 1️⃣ Innovative Tokenization: abrdn has tokenized its interests in the Aberdeen Standard Liquidity Fund (Lux) – Sterling Fund, leveraging Hedera Hashgraph's technology. 2️⃣ Strategic Partnership: The collaboration between abrdn and Archax underscores the growing interest and practical applications of digital asset tokenization in the financial sector. 3️⃣ Regulatory Progress: The UK Treasury is exploring fund tokenization frameworks, indicating a strong move towards embracing Web3 technologies across the nation. Technological Advancements: - New Hedera Improvement Proposal: EVM developers have released a proposal to enhance Hedera’s functionality, focusing on improving the allowance and approval mechanisms for HBAR, Hedera's native cryptocurrency. - Enhancing DeFi Capabilities: This proposal is part of Hedera's DeFi 2.0 strategy, aiming to foster innovation and accessibility within the decentralized finance ecosystem. 💬 Discussion Point: How do you think abrdn's move into tokenization will influence traditional financial practices and the broader acceptance of blockchain technology in asset management? 🔄 Share your insights and keep an eye on how these developments might shape the future of finance! #Abrdn #HederaHashgraph #AssetTokenization #Blockchain #DigitalAssets #Fintech 🔗 Dive deeper into Abrdn's tokenization project and its impact on the market 👉 https://lnkd.in/eaWBzsh7 Feel free to share this post to spark a conversation on the future of tokenization and digital finance!

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BlackRock's really diving into #crypto! They've gone from sceptic to nearly topping the charts with a $16.7bn #BitcoinETF & they have launched the fastest-growing tokenised Treasury fund! 🤯 #onchain #web3 #NFT #Bitcoin #stablecoin #tokenization #DeFi https://on.ft.com/4alJ8er

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Crypto is now “a thing” in the UK 🇬🇧 🔦 Clarity in regulation is a huge step forward for any industry, and the UK’s latest move to provide legal recognition for digital assets is a great example of this. ✅ By officially introducing a new category of personal property for crypto (called “a thing”), the legal framework will give much-needed clarity and protection to individuals and businesses alike. This will also make it easier for legal professionals to navigate disputes and safeguard clients against fraud. 🌍 Once again, the UK is positioning itself as a more attractive hub for crypto-related business—which will also pave the way for innovation and growth in the space. Read more about the bill here: https://lnkd.in/d-4tJjFs

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UN Trade and Development (UNCTAD) observes two major trends: 1.a. Weak trade and weak investment - meaning for the the LDCs weak growth! - in the estimates of all IOs. 1.b. FDI was found weak for the 2nd straight year 2.a The funds directed towards the SDGs and the related sectors to the SDGs fell by 10% in 2023 - worrying trend 3. Since 2019 the geographical distribution of manufacturing projects mainly shifted closer to OECD markets - with new strategic locations for the TNCs. 3.b. Decentralization ito investment esp wrt manufacturing - towards Central America, Mexico, West Asia and North Africa - are the beneficiary region 4. Total Investment landscape - wrt Decline of FDI - decreased 2% in 2023! Stabilized around 1.3 Trillion USD - nothing major is happening - going down but not dramatically but remains stable... Developing nations saw a decline of 7% of FDI - meaning - which is more damaging than the 10% average decline. Decline in investment related to the SDGs sectors #UNCTAD thinks that there will be a most growth in 2024 - change of tendency - more optimistic - extra effort to ease the financial conditions and investment facilitation - this could support this optimism wrt 2024 The decrease in M&A for EU (14%) & North America (5%) The most vulnerable countries - The LDCs and LLDCs and SIDS saw a slight increase in FDIs When it comes to #SustainableFinance which is part of the worrying trends A marginal growth in sustainable bonds but inflows into sustainable investment flow dropped by 60% - not yielding the expected result - not as stable as it was thought to be See discussion about Green-Washing - because more and more investors are demanding more impact and better credible reporting This means that the investor is becoming more demanding and looking more credible on everything called sustainable/ESG investing. External auditing and 3rd parting rating will be important to maintain the entusiasm towards sustainable finance. Negative spill-overs on the SMEs due to the Sustainability Standards with the SMEs shouldn't be overburdened by many standards (spaghettibowl of standards) - need a system that is credible and that allow SMEs to participate in GVC - but need a more straightward and less complex system!s Investor registration expanded to 124 in 2023/24 - acc. ito investment facilitation - to support the weakest countries with the weakest institutions. Digital government for investment facilitation - benefiting all businesses (domestic/foreign) is an important tool that could strengthen - to counteract wrt weak FDI towards DCs and SDGs investment. GSG Swiss Impact Investment Association United Nations Global Compact UNDP Sustainable Finance Hub Impact Entrepreneur Zambian National Advisory Board for Impact Investment (NABII) Impact Investing Kenya Impact Investing Ghana Impact Investing SA SFG - Sustainable Finance Geneva Swiss Sustainable Finance

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Most interesting to watch from 2013 that a cypherpunk invention has now gone totally in opposite direction but achieving the purpose of self sovereign data ownership. In my opinion, ICO remains one of the most powerful tools for democratising finance besides peer to peer payments with privacy protection. Cypherpunks, which include the governments and the public now, must ensure data security and privacy protection are on top of their agenda if they are serious about Web4 economy.

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ClearBank announced it has been selected by Poundtoken to provide banking services, allowing it to hold its fiat-backed stablecoin reserves at the Bank of England. poundtoken.io is the first British regulated sterling stablecoin issuer. The fiat equivalent value of Poundtoken (GBP) is “held in safeguarded and segregated bank accounts, meaning it is always redeemable, one-to-one, for pound sterling.” By providing safeguarded bank accounts, ClearBank enables “the stablecoin reserves to be held at the Bank of England, offering greater peace of mind for holders.” #blockchain #crypto #stablecoin #digital #future

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Earning with Stablecoins in the TON Ecosystem (Part 1) Latest Update as of June 11, 2024 (https://lnkd.in/e-4UK6P5) I've never been full of love and admiration for the TON network, largely due to the lingering disappointment from the ICO era of 2017-2019, when 99% of projects failed to deliver on their promises to small investors. Telegram official Wallet (specifically its CeFI component) offers an opportunity to earn 50% annual interest for the first 2 weeks and 25% for the following 2 weeks. Restrictions: 1️⃣ KYC Requirement: Prepare your passport or driver's license; it will take SumSub about two hours to review them. 2️⃣ Maximum Deposit: 3000 USDT. 3️⃣ Rewards: Paid in TON, with a minimum withdrawal amount of 1 TON (equivalent to $7). 4️⃣ Minimum Deposit: $240 (since earning 1 TON is required to make a withdrawal). 🎁 Maximum Profit Calculation: With a deposit of 3000 USDT, the potential earnings are: $86.53 = 3000 * 0.5 / 52 * 2 + 3000 * 0.25 / 52 * 2 #ton #ton_wallet

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"In a new discussion paper, the U.K. central bank also said it wants to ensure stablecoins are interchangeable with the pound." Bank of England #stablecoins #digitalcurrency #digitalpound #cbdc #dlt #UK #centralbankdigitalcurrency #crypto #cryptoassets #digitalassets https://lnkd.in/gmnmHaCD

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Stripe to pay $1.1bn for stablecoin platform Bridge https://buff.ly/3Ae88YW Stripe has announced its intention to acquire the stablecoin platform Bridge for a substantial sum of $1.1 billion. This strategic move highlights Stripe's commitment to expanding its capabilities in the fast-evolving financial technology sector. Stablecoins, known for their price stability, are increasingly important in facilitating seamless digital transactions. This acquisition is expected to bolster Stripe's position in the digital payments landscape, enhancing its offerings and market reach. For more details, visit the link: https://buff.ly/3Ae88YW. #Fintech #DigitalPayments

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🔊MiCA Stablecoin legislation comes into effect this Sunday 30th June 2024. 😳$20BN of Stablecoin USDT has left the market - and IMHO has gone underground into Fiat/Cash. This structural market movement is due to stronger VASP (Crypto exchange) AML/KYC source of funds ongoing due diligence and daily PEP/Sanction checks in line with Financial Action Task Force (FATF) travel rule adoption. 🇦🇪 UAE announce a ban on non-dirham backed stablecoins for payments within the region. 🇯🇪 Jersey British Isles based Moneybrain (VASP) ready to serve 🇬🇧 & 🇪🇺 with liquid Blackrock Moneymarket Fund Backed Ethereum ERC20 Stablecoins. $ #USDB € #EUROB £ #GBPB Please add in the comments any other Stablecoins that are able to be exchanged in 🇬🇧 & 🇪🇺from July 1st 2024. Please forward/re-post to who you feel may be interested and onto your preferred exchanges or family offices/OTC desks and ask them to DM me [email protected] if they wish to establish BiPS digital $€£ stablecoin pairings. With thanks to Camomile Shumba for the article in the comments for sharing all the up to date facts. CoinDesk #GlobalP2P #Moneybrain #BiPS #Stablecoins

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Dive into the world of algorithmic trading with our comprehensive Certificate Program - Extension Pack EP292 now available! Why should you care? ✅ Master cutting-edge trading strategies ✅ Leverage data-driven decision making ✅ Stay ahead in the fast-paced financial markets This extension pack builds on our core program, offering: • Advanced algorithmic concepts • Hands-on coding workshops • Real-world case studies Don't let this opportunity slip by. Invest in your future today! Curious to learn more? Drop a comment below or DM me for details. #AlgorithmicTrading #FinTech #ContinuousLearning #TradingStrategies

🌍 Iran and Russia Explore CBDC and Tokenized Assets for Payments 🔄 Iran and Russia are collaborating to advance the use of central bank digital currencies (CBDC) and tokenized assets for cross-border settlements, a move driven by their exclusion from traditional international payment systems like SWIFT. This partnership highlights an emerging trend in the global financial landscape, where nations explore alternative payment mechanisms under economic constraints. Key Developments: 1️⃣ Legal Framework Adjustments: Recent legislative changes in Russia now permit the use of digital financial assets, including tokenized commodities like gold, for cross-border payments, paving the way for these new financial interactions. 2️⃣ CBDC Advancements: Both nations are also examining the potential of CBDCs to streamline transactions and potentially mitigate issues related to exchange rate discrepancies, although practical deployment is anticipated to begin no earlier than January 2025. 3️⃣ Technological and Regulatory Challenges: The integration of such innovative financial instruments involves significant logistical challenges, including the need for counterparties to integrate with designated platforms and potentially open local bank accounts. 4️⃣ Strategic Financial Navigation: Amidst international sanctions, this initiative reflects a strategic pivot to alternative currencies and digital assets, aligning with broader efforts to maintain economic stability and continuity in international trade. 🌟 Reflections on Global Finance: This development is part of a broader narrative where countries under economic pressures explore innovative financial technologies to sustain and secure their international trade relationships. 💬 What are your thoughts on the use of digital currencies and tokenized assets in international finance? How do you see these technologies impacting global economic policies and trade in the future? 🔄 Share this post to discuss the evolving role of digital finance in global trade and the strategic maneuvers nations are making in response to economic sanctions. #DigitalCurrency #GlobalFinance #CBDC #Tokenization #Sanctions 📖 For a deeper dive into the specifics of this Iran-Russia financial collaboration and its implications for the future of international payments: https://lnkd.in/eqKUCurn

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💡Have no intention to read this 44 pages Global Crypto Regulation Landscape report but like the juicy part? Bingo, I’ve summarised this below and added recent development on top. Key Summary: ⭐#1 MiCA sets a precedent for comprehensive crypto regulation - came into force in June 2024 for stablecoins   ⭐#2 Expansion of the Travel Rule to include crypto transactions is now a global trend. Requires originating institution to share info regarding the payments ⭐#3 Growing regulatory focus on stablecoin - EU, SG and HK are leading the way ⭐#4 FATF in March 2024 published a report assessing 58 jurisdictions with significant VASP exposure while 75% of jurisdictions being partially or non-compliant to AML/CFT standards 🇺🇸US - Intensifying efforts to prevent money laundering, enhancing oversight of sanctions evasions, enforcing AML/CFT standards and addressing stablecoin risks - Imposed multiple sanctions and SEC taken aggressive stance by targeting Uniswap, which received the Well’s notice - Lack of progress in passing legislation to crypto. The US House passed the Financial Innovation and Technology for the 21st Century Act but the bill faces hurdles by SEC  🇪🇺EU - MiCA goes into effect for stablecoin and e-money token issuers from Jun'24. While Circle received stablecoin issuer license, we have seen USDT being removed from Coinbase more recently as they are not seeking license - While MiCA is EU-specific, it is influencing regulatory approaches in other regions - In Mar'24, ESMA published first report outlining rules for Cryptoasset Service Provider (CASP), while broader CASP regulation will come into effect in 2024 🇦🇪UAE - In Jun’24, UAE Central Bank approved its stablecoin regulation. Tether later then announced to launch the first to be licensed stablecoin pegged to AED under the Payment Token Services Regulation   - Solidified UAE’s CBDC strategy and sent AED50m from UAE to China via mBridge, a platform that allows cross border payment 🇭🇰Hong Kong - SFC’s VATP (crypto exchange licensing) regime started in Jun’2024 enforcing all exchanges to be licensed. 11 crypto exchanges including crypto.com, Bullish received deemed license. HKVAX received the 3rd VATP license more recently - In Jul’24, HKMA announced the stablecoin consultation results, while a list of 3 stablecoin sandbox participants been announced - In Apr’24, SFC approved 3 firms (China AMC, Bosera AM, Harvest Global) to launch BTC and ETH ETFs listed in HK, 4 months after SEC approved 11 Bitcoin ETFs. 🇸🇬 Singapore  - In Jul’24, Paxos received MAS’ approval to offer it’s stablecoin under Major Payments Institutions (MPI) license  - OKX SG, GSR, BitGo received the MPI licenses earlier this year Travel Rule Service Providers: VerifyVASP, Notabene Crypto surveillance, monitoring service providers: Elliptic, Solidus Labs, Chainalysis Elliptic's Full report: https://hubs.la/Q02RDNkd0 #crypto #regulation #global #report #summary #MiCa #SEC #VARA #MAS #HKMA #SFC

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🇬🇧Today, the Financial Conduct Authority published a few interesting documents: 📚A research note on crypto assets consumer * 12% of UK adults own crypto ↗️ * 93% of UK adults have heard about crypto * Only 1 in 10 people say they did not do any research before buying crypto * Link here https://lnkd.in/d_sEdZfC 🔉A blog on their regulatory approach to crypto, with key points on: * Admissions and disclosures - fundamental for investors protection * Market abuse regime - Yes it is coming, get in touch for how we can help you to achieve compliance 🔥 Solidus Labs * Trading platforms and intermediaries - setting up strong systems and controls that enables fair, orderly, transparent and efficient trading Link here https://lnkd.in/d5J7Sq4s ⏳The roadmap for crypto regulations with Market abuse Discussion paper - Systems and controls Information, sharing Inside information, disclosure is planned for Q4 🚀 with a consultation in Q3 2025. At Solidus Labs we are here to help and support you on the road to compliance, so get in touch and start planning 🔥 . Link here https://lnkd.in/d3XbknvN ❗ Cryptoasset financial promotions and fiat-to-crypto on/off ramp services warning regulated/registered firms to carefully consider the risks of partnering with unregistered cryptoasset firms that may be illegally promoting to UK consumers. Interesting to note that they "are concerned about financial promotions communicated in addition to the ‘widget’ operated by the MLR registered firm, such as on the broader website, app or social media accounts of the unregistered partner firm". And this is exactly what we discuss at the roundtable organised by Simmons & Simmons during the RegTech Forum Steve Vallas Carly Nuzbach Lowery George Morris Podcast spoiler alert 😉 ✅ As always the FCA provides for good practices such as engaging with a section 21 approver (Gateway 21), having robust risk controls in place such as persuading the partner/client firm to implement controls such as geo-blocks, to prevent financial promotions on websites, applications, and other channels from having effect in the UK. ❌ The FCA also discourages authorized firms to have direct relationships with unregistered crypto assets firms. Strongly recommend a full read here: https://lnkd.in/dGg7a-d2 🚀 And as always do not forget to join the Crypto Compliance and Legal TG group https://lnkd.in/ed9gh_xw where we share all the latest regulatory news, best practices, experiences and tips Ian Taylor can't wait to work closer on those topics with you and CryptoUK #Cryptocompliance #futureoffinance #Marketintegrity #betterworld

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🥳Happy weekend 🎄the crypto regulatory world is never boring, a few highlights from the week: 🇬🇧The main one is coming from the UK with the Financial Conduct Authority announcing its roadmap for a crypto framework in one go (not 2 phases) including a discussion paper on the application of market abuse rules to crypto by year end Solidus Labs, and further guidance on FinProm warning regulated/registered firms to carefully consider the risks of partnering with unregistered cryptoasset firms that may be illegally promoting to UK consumers. Have a look here for the full summary https://lnkd.in/dmPnHvzs 🇮🇪The CBI publishing a guidance note for CASPs applying for a MiCA license https://lnkd.in/dkudpsTe 🇲🇦Morocco Central Bank to be on the verge of lifting the bans on crypto and said to be preparing on regulatory framework 🇺🇸 US Court of Appeals ruled on Tuesday that the Treasury Department’s Office of Foreign Assets Control (OFAC) ”overstepped its authority” by sanctioning crypto mixer Tornado Cash 🇪🇺New EU Commissioners approved with 3 who may play a role for crypto policy, more details here https://lnkd.in/dGzZj-cN 🇭🇰Hong Kong government has proposed a tax exemption on crypto gains for hedge funds, private equity funds, and other institutional investment vehicles. 🇹🇼Taiwan FSC announced that the upcoming money laundering prevention registration mandate for crypto exchanges was shifted to Nov. 30 from the previous Jan. 1, 2025 deadline. Meet us at the Taipei Blockchain Week 12-14.12, we can help you comply Diana Xu, CAMS 🇷🇺Russia officially declares cryptocurrency as property, adopting new tax rules: mining exemptions, progressive income taxes, and steep corporate levies starting in 2025. 🔺The pump.fun and meme coins freakshow unraveling, https://lnkd.in/dJkbQ8iP and CZ advocating for “real” blockchain over meme coins, well said👏🙏 🔥2 very amazing podcast releases which will help you understand how MiFiD and MiCA can foster growth in the EU, and give you very practical types for your day to day crypto compliance job and MiCA implementation. A huge thank you to my amazing guests Mario Hoessl-Neumann and Eoin Kearns 🙏 🚀 And as always do not forget to join the Crypto Compliance and Legal TG group https://lnkd.in/ed9gh_xw where we share all the latest regulatory news, best practices, experiences and tips

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The news that BNY Mellon, the oldest bank in the US, received SEC clearance to custody bitcoin is a big deal with respect to institutional involvement in digital assets but it's no surprise that there was a mixed reaction to the announcement. Critics are pointing to the SEC's SAB 121, which imposes stringent requirements on banks that engage with digital assets, and highlighting that BNY’s approval was potentially biased given that many other financial institutions still face significant regulatory headwinds to get anywhere near SEC rubber stamping. Be that as it may, this is a pretty big development across a number of fronts: ➡ 𝗟𝗲𝗴𝗮𝗹 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 (𝗮𝗻𝘁𝗶-𝗿𝗲𝗵𝘆𝗽𝗼𝘁𝗵𝗲𝗰𝗮𝘁𝗶𝗼𝗻) The structure of BNY Mellon’s custody model are pretty interesting as it enforces the practice of segregating customer assets from the bank’s own holdings. Yes, this is something that would have gone some way to preventing the FTX and crypto lender collapses in 2022. This legal set-up should help mitigate some (but not all) concerns around rehypothecation and potential misuse of client assets, which has plagued the industry in the past. ➡ 𝗘𝘅𝗽𝗮𝗻𝗱𝗲𝗱 𝗰𝗿𝘆𝗽𝘁𝗼𝗮𝘀𝘀𝗲𝘁 𝗰𝘂𝘀𝘁𝗼𝗱𝘆 The fact that the non-objection granted to BNY Mellon covers more than just bitcoin and ethereum signals that the SEC may finally be opening the door to a broader range of digital assets. This could pave the way for more robust institutional infrastructure around #cryptocurrencies, reinforcing the idea that digital assets are becoming increasingly interwoven with TradFi. ➡ 𝗖𝘂𝘀𝘁𝗼𝗱𝘆 𝗺𝗮𝗿𝗸𝗲𝘁 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 Another key point is that the news is being viewed positively in the context of breaking up Coinbase’s near-monopoly in crypto custody. With more custody providers like BNY Mellon entering the space, institutional clients will benefit from greater choice and reduced reliance on a single player. This diversification is important for creating more robust market infrastructure and allying single point of failure (SPOF) concerns. -- At the same time, there are questions on how this shift will affect smaller custodians as well as whether the long-term increasing custody by banks could create new systemic risks down the line. Only time will tell. #bitcoin #ethereum #digitalassets #crypto

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