dtcpay forges strategic partnership in launch of crypto payments system

UBS extends crypto ETF access to clients in Hong KongMultinational investment bank UBS Group AG has followed suit with competitors like HSBC, enabling its wealthy clients in Hong Kong to engage in the trading of select crypto-linked exchange-traded funds (ETFs).Photo by Pierre Borthiry — Peiobty on UnsplashRegulatory approval to offer three ETFsThis move, reported by Bloomberg on Thursday, aligns with Hong Kong’s efforts to establish itself as a prominent digital asset hub. Citing an undisclosed source, Bloomberg outlined that three crypto ETFs, namely the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures and CSOP Ether Futures, have received approval from the Securities and Futures Commission (SFC) and will be available on UBS’s Hong Kong platform starting this Friday.The inclusion of these ETFs allows UBS clients to diversify their investment portfolios, offering exposure to the dynamic crypto market. Educational materials will also be accessible to clients, aiding in their understanding of associated risks. While UBS declined to comment on this development, it marks a strategic move by the Swiss bank to tap into the growing demand for crypto-related investment products.In June, Hong Kong’s largest bank, HSBC, moved to expand its offering to include crypto ETFs. It has made available the very same crypto ETFs as UBS is about to offer.Hong Kong’s crypto credentialsHong Kong introduced a comprehensive digital asset regulatory regime on June 1, aiming to safeguard investors while fostering the Chinese autonomous territory’s emergence as a digital financial center. The SFC permits retail investors to trade major tokens on licensed exchanges under these regulations.Despite these regulatory advancements, Hong Kong faced setbacks, notably with the recent issues surrounding the unlicensed JPEX exchange, which led to increased scrutiny. The establishment of a joint task force between the SFC and the police aims to monitor and prevent suspicious activities within the crypto industry.Globally, financial institutions remain cautious about compliance risks in the crypto sector. However, signs of increased engagement are emerging. DBS, Singapore’s largest bank, has expressed its intention to seek a license to offer crypto services to Hong Kong customers. ZA Bank, the largest virtual bank in Hong Kong, plans to provide token-to-fiat currency conversions over licensed platforms. Furthermore, SEBA Bank, backed by the Julius Baer Group, has obtained a license for its unit to offer crypto services in Hong Kong.Unlocking ETF potentialA report published by the Hong Kong Stock Exchange in April claimed that crypto ETFs possess the potential to unlock the next phase of digital asset expansion in Asia. Earlier this week, it emerged that regulators were open to the notion of allowing retail access to spot crypto ETFs in Hong Kong, provided that the necessary regulatory approvals and checks were in place.The inclusion of the CSOP Bitcoin Futures and CSOP Ether Futures funds on UBS’s platform highlights the gradual recovery of the crypto sector from the market rout experienced in 2022. Despite the previous market challenges and collapses, the prospect of the U.S. allowing its first spot Bitcoin ETFs has contributed to a resurgence in the largest token’s price this year. The move by UBS aligns with the broader trend of financial institutions cautiously embracing the crypto economy, indicating a shifting attitude toward these digital assets in the financial mainstream.

Korean Travel Rule Solution Provider CODE to Start Charging Monthly Fees Next MonthSouth Korean Travel Rule solution provider CODE, established in collaboration between local cryptocurrency exchanges Bithumb, Coinone, and Korbit, has announced the implementation of service fees starting next month. Up until this point, CODE has been offering its services free of charge. The notification regarding this change was issued to CODE’s clientele, which includes various crypto exchanges, as reported by local tech news outlet Digital Daily.Photo by Kenny Eliason on UnsplashTravel RuleThe Travel Rule regulations, set by the Financial Action Task Force (FATF) and Korean legislation, require Korean trading platforms to maintain records of both the sender and recipient’s information for virtual asset transactions exceeding 1 million KRW ($780). The FATF, founded in 1989 and headquartered in Paris, is an international financial watchdog dedicated to combating global money laundering and terrorist financing.More competitive priceCODE is anticipated to offer its services at a more competitive price of 1 million KRW ($780), in contrast to its rival VerifyVASP (VV), which introduced a monthly fee of $1,800 earlier this year. VV is a product developed by Lambda 256, a subsidiary of Dunamu, the parent company of Upbit, the largest cryptocurrency exchange in Korea.CODE launched its services in March last year. Among its crypto exchange members are Gopax, Cashierest, and Coredax. In December, the Travel Rule solution provider appointed Lee Sung-mi, the former compliance officer of Bithumb, as its new CEO, and since then, it has accelerated its monetization plan. Prior to Lee’s appointment, Coinone CEO Cha Myung-hun had been at the helm of CODE.

Bitget Introduces Innovative MPC Wallet for Enhanced SecurityBitget, the Seychelles-registered crypto derivatives platform, has unveiled a cutting-edge security and key management feature that could potentially be a game changer in terms of the way users safeguard their assets.Photo by Shubham’s Web3 on UnsplashIntroducing Multi-Party Computation (MPC)As confirmed via a press release on Tuesday, the Bitget team has introduced the Multi-Party Computation (MPC) wallet service to its Bitget Wallet, a relatively new solution in the realm of cryptocurrency security. This development comes on the heels of the launch of the account abstraction wallet service powered by the Ethereum scaling protocol Starknet in July.The introduction of the MPC wallet could well be a paradigm shift relative to crypto security as it leverages a distributed key generation mechanism, distributing multiple key shares to various locations under the control of different parties. This approach introduces a robust process, demanding that the owners of these distributed private key shares collectively sign and authorize transactions.Notably, the MPC wallet shatters the conventional industry practice of relying on users to store or memorize mnemonic phrases and private keys. In a departure from the current norm, this wallet streamlines the user experience by eliminating the need for mnemonics and instead implementing a password-based authentication method provided by Bitget, effectively eliminating the reliance on a single-point private key.Unlocking MPC technologyBitget’s vision with the MPC wallet is to deliver a user experience reminiscent of traditional Web2 products and services. From a technical standpoint, the MPC wallet is rooted in a threshold signature scheme, employing secure large prime numbers to underpin its security architecture.This consumer-oriented development mandates a minimum number for signature authorization, requiring two-thirds of the total key shares to complete the signature necessary for authorizing a transaction. Notably, the final key share finds secure refuge on a backup cloud server, contributing to a highly decentralized and secure ecosystem.Moreover, the MPC wallet offers a robust sharing mechanism that automatically invalidates key shares on older devices when new devices are integrated. This innovative feature substantially mitigates the risk of key shares being compromised on outdated or forgotten devices, reinforcing user confidence and security.Trending towards crypto self-custodyBitget’s introduction of the MPC wallet underscores the growing significance of self-custody in the cryptocurrency space. In the wake of high-profile failures and security breaches on centralized exchanges, such as FTX, self-custody has emerged as a paramount consideration for cryptocurrency enthusiasts and investors.As a testament to this trend, in March 2023, Ledger, a prominent hardware wallet manufacturer, secured $109 million in funding to bolster hardware production and develop novel products, underlining the increasing demand for secure and user-centric solutions in the crypto world.Bitget Wallet is a rebrand of the wallet produced by BitKeep, a Singapore-based project which Bitget acquired earlier this year. The crypto platform has been working on various initiatives that go some way towards reassuring customers. It had previously introduced proof of reserves reporting. While this system doesn’t provide the whole picture, proof of reserves does go some way in reassuring customers that their funds are still held by the platform and not loaned out or otherwise removed from the platform.