Flybit Achieves Top Score in FIU’s Anti-Money Laundering Assessment

Ripple to lead National Bank of Georgia’s CBDC pilot projectThe National Bank of Georgia (NBG) has selected enterprise blockchain and cryptocurrency solutions firm Ripple as the official technology partner for its ambitious Digital Lari (GEL) pilot project. The initiative aims to explore Ripple’s central bank digital currency (CBDC) technology, assessing its practical applications and potential benefits for a wide range of stakeholders, including the public sector, businesses and retail users.Photo by Max Kukurudziak on UnsplashCiting Ripple’s CBDC tech capabilitiesRipple divulged details of the collaboration via a press release published to its website on Thursday. The decision to entrust Ripple with this pivotal role came after a competitive selection process. The Georgian central bank cited a number of reasons for choosing to partner with Ripple, including Ripple’s deep understanding of the project’s objectives and a commitment to its success.The central bank thought that it had a clear project development roadmap and that it could facilitate a gradual deployment approach to various use cases. Additionally, the NBG acknowledged Ripple’s extensive experience in implementing real-life pilot projects, encompassing primary CBDC digital infrastructure, smart contracts and tokenization.Ripple’s CBDC solution, the Ripple CBDC Platform, emerged as the frontrunner for its capacity to provide a comprehensive end-to-end solution. The company launched the platform in May of this year. This platform empowers central banks, financial institutions and governments to seamlessly create, manage, transact and redeem CBDCs. Notably, it leverages the XRP Ledger (XRPL), known for its energy efficiency and open-source nature.Natia Turnava, Acting Governor and Member of the Board of the National Bank of Georgia, expressed satisfaction with the choice of Ripple as their official technology partner, emphasizing Ripple’s technical excellence and the expertise of its team.She also expressed gratitude to other companies that participated in the selection process. Ripple’s James Wallis, VP of Central Bank Engagements, highlighted the NBG’s pioneering role in adopting blockchain technology to usher in the digital era for the Georgian economy.He noted that this pilot project, empowered by the Ripple CBDC Platform, would set the stage for transformative advancements in blockchain technology’s utilization within the public sector, enhancing efficiency and transparency in transactions. Back in May, Wallis remarked on the launch of its CBDC platform that he believed “this platform will help solve problems for many central banks and governments who are devising plans and developing a technology strategy for CBDC Implementations.” He added:“The innovative capabilities of the platform will help enable instant settlement of both domestic and cross-border payments, reduce risk, and improve the user experience of quickly sending and receiving digital currency on either side of a transaction.”Transitioning from selection to pilot phaseWith the selection phase now concluded, the NBG is preparing to transition to the pilot stage, where they will test the Ripple CBDC Platform in a live environment. This real-world testing will enable the NBG to assess the practicality of select use cases, taking Georgia one step closer to realizing the full potential of CBDCs in their economic landscape.Ripple’s impact is not limited to Georgia. It has been actively engaging with governments and central banks worldwide. Ripple has announced five pilot programs in collaboration with countries like Bhutan, Palau, Montenegro, Colombia and Hong Kong. Furthermore, discussions are underway with over 20 other nations across the globe.

The Monetary Authority of Singapore (MAS) is set to gain enhanced powers through the Financial Institutions (Miscellaneous Amendments) Bill 2024 (FIMA Bill), currently under consideration in the country's parliament.Photo by Kenneth Koh on UnsplashProfound impactIf the bill passes, it could have a profound impact on cryptocurrency firms operating in Singapore. One significant aspect of the proposed amendments is the expansion of MAS's authority to issue directives to capital markets services license (CMSL) holders involved in unregulated business activities. This move is particularly aimed at firms offering unregulated products that might pose contagion risks to their regulated operations. The bill cites examples such as bitcoin futures and payment token derivatives traded on overseas exchanges. At the moment, the regulator is actively monitoring the crypto space in Singapore, issuing investor alerts relative to unregulated entities. Last month, MAS added imToken, a non-custodial crypto wallet, to its Investor Alert List. The list serves as a means for the regulator to draw attention to entities that may be actively trading within the city-state while being wrongly perceived by the investing public as licensed or regulated entities. Greater powersIn response to potential risks, MAS had previously issued guidance on risk-mitigating measures for CMSL holders conducting unregulated business with retail investors. The FIMA bill seeks to empower MAS further by enabling it to issue written directions specifying the minimum standards and safeguards for CMSL holders and their representatives engaging in unregulated businesses. Cryptocurrency exchanges, potentially categorized as CMSL holders, along with Major Payment Institution (MPI) licensees, may face increased regulatory scrutiny. MAS has been active in implementing measures to curb speculation in cryptocurrency investments and has updated its regulatory framework for stablecoins. The bill introduces additional provisions empowering MAS to compel individuals to participate in interviews and provide written statements. It grants MAS the authority to enter premises without a warrant and obtain court orders to seize evidence. Furthermore, the bill allows MAS to approve agents appointed by foreign regulators for inspecting Singaporean financial institutions. Precursor to ETF offeringThe potential ramifications of the bill extend beyond local regulatory dynamics. Industry observers suggest a connection between these developments and the recent approval of spot bitcoin exchange-traded funds (ETFs) in the United States. Lasanka Perera, CEO of Independent Reserve Singapore, recently highlighted that the approval of bitcoin ETFs in the U.S. will likely attract major global wealth management firms, intensifying the demand for bitcoin and transforming it into an accessible asset class for traditional institutions. Perera sees relevance in this proposed legislation as it pertains to the potential offering of spot bitcoin ETF products within the Republic of Singapore. While he speculates that it's too early to tell, he said Singapore’s proposed new bill to enhance regulatory authority over financial services, including bitcoin futures, makes provisions for possible spot bitcoin ETFs in the Republic. As Singapore continues to refine its regulatory framework, the proposed amendments reflect a broader trend of regulatory tightening in the global cryptocurrency landscape, emphasizing the importance of compliance and risk management for industry participants. 

MHC Digital Group, an Australian digital assets management platform, has entered into a partnership with USDC stablecoin issuer Circle Internet Financial, with a view towards increasing the circulation of USDC within Australia and the Asia-Pacific (APAC) region. MHC was founded by well-known venture investor Mark Carnegie, with the company having offices in Sydney and Singapore. The firm will work with Circle to distribute USDC in Australia and within the APAC region. MHC has been marketing its services towards institutional investors and it’s that same client group that the two firms want to target in order to increase USDC circulation. The firm will provide “cost-effective and efficient USDC access” where institutional clients are concerned.Photo by Catarina Sousa on PexelsCrypto ‘a better mousetrap’ In a media release published on behalf of the two companies, Carnegie claimed that while many people still claim that there is no use case for crypto, hundreds of billions move globally at a fraction of the cost experienced via the traditional financial system. “Crypto is simply a better mouse trap for the vast majority of international payments,” he added. Commenting on the development in an interview with the Australian Financial Review, Carnegie stated:“I’m hoping we can show there are hundreds of millions of dollars of forex [foreign exchange] trading fees, where super funds are getting their faces ripped off by Macquarie Bank and the other incumbent banks.” Appealing to pension funds Carnegie wants to get large pension funds on board in using USDC. He pointed to the fact that global banks make $170 billion from corporations and individual investors through the movement of funds over the SWIFT network. He can see that major savings can be made if USDC is used relative to these fees. Despite all this, Carnegie acknowledges that it will be a hard sell to get them on board. As part of these plans, MHC Digital will be launching an over-the-counter (OTC) trading desk, which will be targeted towards hedge funds, crypto enterprises and high-net-worth individuals. APAC opportunity Kash Razzaghi, Circle’s chief business officer (CBO), identified APAC as presenting with an adoption opportunity beyond institutional clients. Razzaghi stated: “With its young, mobile-first and digital wallet-ready population, the Asia Pacific region is ahead of the curve when it comes to digital asset adoption." Carnegie appears to be similarly enthusiastic when it comes to the APAC region. In an interview with CNBC back in January, he suggested that the crypto bull run was “an Asian story this time round.” It’s understood that the two companies are also considering collaborating on the issuance and distribution of an Australian dollar (AUD) denominated stablecoin. This development is the latest in a string of initiatives taken by Circle to bring about USDC adoption in the APAC region. In 2023 the company partnered with SBI Holdings with the objective of enhancing the circulation of USDC within the Japanese market. The very same rationale resulted in it partnering with Tokyo-based crypto trading platform Coincheck in February 2024. The company has also tried to trigger adoption at a retail level, through collaborations with FamilyMart convenience stores in Taiwan and Southeast Asian super app Grab.