$100M Pyramid Scheme Linked to Prominent Chinese Filecoin Project

Hong Kong and Kazakhstan Pilot SWIFT’s CBDC SolutionCentral bank digital currency (CBDC) development globally is unrelenting, with the latest iteration of that involving global financial messaging network SWIFT.The global member-owned cooperative recently disclosed that three central banks are currently participating in beta-testing of this revolutionary solution, including the Hong Kong Monetary Authority (HKMA) and the National Bank of Kazakhstan.Photo by NASA on UnsplashBuilding upon initial successThe company provided details on the initiative via a press release published to its website on Wednesday. Simultaneously, an extended consortium of over 30 financial institutions is embarking on sandbox experiments to explore a multitude of potential use cases.The impetus behind SWIFT’s commitment to CBDC interoperability grew stronger after a successful round of sandbox testing. Participants in the initial phase quickly recognized the potential and intrinsic value of SWIFT’s solution.Building on this success, the beta version of SWIFT’s CBDC connector solution is now being integrated into the infrastructure of three central banks and monetary authorities.Second phase testingIn tandem with the beta testing, SWIFT has inaugurated a second phase of sandbox experiments, drawing in a consortium of commercial banks, central banks, and financial market infrastructure providers. This phase is dedicated to exploring an array of use cases, ranging from trigger-based payments for digital trade platforms to foreign exchange models, delivery vs. payment mechanisms, and liquidity-saving techniques.Eighteen central and commercial banks had taken part in the first phase of those sandbox experiments. Equally, the second phase has attracted a long list of entities, including the Reserve Bank of Australia, Deutsche Bundesbank, HKMA, Bank of Thailand, CLS, and others. With thirty leading global financial institutions participating in this latest testing round, that makes for a 66% increase in participation by comparison with the first phase. Their collective input and collaboration will contribute towards shaping the future landscape where CBDCs are concerned.Tom Zschach, Chief Innovation Officer at SWIFT, commented on the use of the technology in bridging from existing systems, stating:“The financial community has already recognized the strong potential of our CBDC innovations for preventing digital islands while securely bridging the payment systems of today and the future.”Global hotbed of innovationThe American think tank, the Atlantic Council, has been tracking CDBC projects on a global basis. Its endeavors in that respect demonstrate the expansive efforts that are being made to develop this technology.19 of the G20 countries are in advanced stages of CBDC development, with nine already in pilot phases. While this proliferation signifies the growing importance of CBDCs on the global stage, it also raises concerns about potential fragmentation as countries predominantly focus on domestic usage.SWIFT has taken a proactive stance in addressing the potential challenges of a fragmented CBDC landscape. The company embarked on its CBDC journey over 18 months ago, with the initial sandbox phase simulating nearly 5,000 transactions between different blockchain networks and existing fiat-based payment systems.

Korea requires lawmakers and senior officials to declare crypto holdingsSouth Korea’s Ministry of Government Legislation announced on Thursday (local time) that 84 new legislative statutes are set to be implemented in December. Among these statutes, an amendment to the Public Service Ethics Act stands out, which will require lawmakers and senior government officials to report their virtual asset holdings.Photo by Huy Phan on UnsplashStarting Dec 14The Public Service Ethics Act requires public officials in political service, government officials of rank four or higher and executives of public service-related organizations to declare their own wealth as well as that of their spouses and lineal relatives. In Korea, public servants are ranked from one to nine, with one being the highest and nine being the lowest. As it stands, disclosing cryptocurrency holdings isn’t mandated, but this will change from Dec. 14 due to recent amendments. Records of cryptocurrency transactions will also be subject to disclosure.Possible restrictions on departments or employeesFurthermore, the leader of a national or local government organization has the authority to enforce restrictions on the acquisition of virtual assets for specific departments or employees under their jurisdiction. This action is applicable if their roles are associated with accessing cryptocurrency information or having an impact on the crypto market. In such scenarios, the chief officer is obligated to report their methods of imposing these restrictions to the pertinent government ethics committee. The committee then holds the right to recommend adjustments to these strategies.

Interactive Brokers Hong Kong secures retail crypto trading licenseInteractive Brokers Hong Kong has successfully obtained the necessary licensing to facilitate retail crypto trading in Hong Kong, marking a pivotal move for the brokerage firm in the rapidly evolving crypto landscape of the region.This announcement was made by David Friedland, the Managing Director for Asia Pacific at Interactive Brokers, on LinkedIn on Friday, solidifying the firm’s position as a significant player in the local crypto market.Photo by Risa Fukunaga on UnsplashOngoing interest in virtual assets in Hong KongThe decision to enter retail crypto trading comes at a time when Hong Kong is experiencing sustained interest and activity within the crypto sector. Interactive Brokers had rolled out BTC and ETH trading services to accredited investors in Hong Kong in February. Major companies are actively seeking local licensing, mirroring similar milestones achieved by entities like HashKey and Swiss crypto bank SEBA.In a parallel development, it emerged last week that Victory Securities, a prominent investment firm in Hong Kong, has also secured regulatory approval from the Securities and Futures Commission (SFC) to offer cryptocurrency services targeting retail clients. This positions Victory Securities alongside Interactive Brokers in the competitive retail crypto space of the region.Significance acknowledged within the industryThis milestone achievement by Interactive Brokers in Hong Kong has not gone unnoticed within the virtual assets sector. Gabor Gurbacs, Head of Digital Asset Strategy at American investment management firm VanEck, took to the X platform, stating:“Hungarians know inflation and the importance of hard money. Thanks to [Interactive Brokers Founder/Chairman Thomas Peterffy] for being a silent Bitcoin advocate. You can count on Hungarians when it comes to important matters.”As Interactive Brokers expands its footprint, recent financial reports reveal impressive growth. In the third quarter, the company reported a remarkable 45% year-over-year increase in net revenue, reaching $1.145 billion. The firm is strategically focusing on European expansion, consolidating operations in Ireland to enhance efficiency and better serve its growing client base.Moreover, Interactive Brokers has extended trading hours for U.S. equities and crypto services in partnership with Zero Hash, a move geared towards providing ever more comprehensive and accessible financial services. The successful entry into Hong Kong’s retail crypto trading arena is expected to contribute significantly to the firm’s overall growth and influence in the region.Fine-tuning regulationThe regulatory environment in Hong Kong has recently undergone adjustments, with the SFC refining its crypto policies. While certain offerings have been restricted to professional investors, there is now an increased emphasis on evaluating clients’ knowledge before allowing them to engage in crypto transactions. Despite these stringent measures, the sector has faced challenges, including the JPEX scandal that shook Hong Kong’s digital asset market.In 2022, Interactive Brokers extended its crypto trading service in the United States on a 24/7 basis, having first commenced with a crypto product offering in mid-2021. With this strategic move, Interactive Brokers, as a TradFi stalwart, has demonstrated adaptability and resilience in the face of ongoing digital asset innovation and evolving market conditions.