BNP Paribas Partners With Chinese in Digital Yuan Push

3AC Liquidators Pursue $1.3 Billion from FoundersLiquidators appointed for Three Arrows Capital (3AC), the failed Singaporean cryptocurrency hedge fund, are seeking to recover $1.3 billion from the fund’s co-founders.That’s according to an unidentified source cited by Bloomberg in a report published on Tuesday. The requested amount represents losses incurred by the founders during the months leading up to the firm’s collapse, according to a source familiar with the liquidators’ claims.Photo by Giorgio Trovato on UnsplashLiability allegationsDuring a meeting with the hedge fund’s creditors on Tuesday, the liquidators discussed the allegations against Three Arrows co-founders Su Zhu and Kyle Davies. The co-founders are accused of causing the hedge fund to accumulate significant leverage between May and June 2022, despite already suffering substantial losses from ill-fated Luna tokens and other investments.The liquidators argue that the firm was insolvent at that time. Consequently, they have taken legal action against Zhu and Davies in a British Virgin Islands court to recover the losses on behalf of the fund’s creditors.Lawyers representing Zhu and Davies have not yet responded to requests for comment. However, in a Twitter post last June, Zhu mentioned that their attempts to cooperate with the liquidators were met with resistance.Crypto failure catalystThe failure of Three Arrows Capital coincided with a downturn in the digital currency market, impacting platforms that had exposure to the hedge fund, including crypto lenders BlockFi and Voyager Digital. These platforms subsequently filed for bankruptcy in the weeks following the liquidation of the hedge fund.The liquidators’ allegations against the co-founders represent an escalation of actions taken against Zhu and Davies, whom they have accused of non-cooperation during the investigation. The liquidators, who are partners at the consulting and advisory firm Teneo, were appointed by a British Virgin Islands court last year to recover funds for Three Arrows Capital’s creditors, who are collectively owed approximately $3.3 billion.Earlier this month, the liquidators urged a New York bankruptcy judge to impose a daily fine of $10,000 on Davies. They argue that this substantial fine is warranted because he has failed to respond to a subpoena requesting business records and other relevant information.While the liquidators do not currently know the whereabouts of Davies or Zhu, court documents from earlier this month referenced a New York Times article reporting that Davies had traveled to Bali after the collapse of Three Arrows Capital.Restraining orderIn May Zhu had secured a restraining order against BitMEX Co-Founder Arthur Hayes in a Singaporean court. Hayes believes that he is owed $6 million by the 3AC co-founders. Despite significant adverse publicity within the crypto space, the 3AC co-founders have proceeded to do business within the industry.They’ve established a crypto claims trading platform, OPNX, and alongside that Dubai-based business, they’ve also established a new venture capital fund, 3AC Ventures.The Dubai regulator, the Virtual Assets Regulatory Authority (VARA), has reprimanded OPNX and the business's founders for operating an unregistered digital assets business within the territory.

Circle Makes Inroads in Singapore with License AwardCircle Internet Financial’s Singapore entity, Circle Internet Singapore, has received a full license from the Monetary Authority of Singapore (MAS) to provide digital payment token services in Singapore. This major payment institution (MPI) license will enable Circle Singapore to offer cross-border and domestic money transfer services through its Circle account.Photo by Timo Volz on PexelsMajor Payment Institution (MPI) licenseThe company announced the milestone achievement via a press release published on Monday. The MPI license enables Circle to offer institutional customers access to USDC, a leading US dollar stablecoin issued by the company. With the license approval, Circle Singapore can now fully utilize the expertise of its corporate affiliates to drive innovation, expand its offerings, and provide more value to its clients and stakeholders.The granting of the license follows the in-principle approval received by Circle Singapore in November last year and the subsequent opening of its office in May. The company recognizes the importance of Singapore in its global expansion strategy and its mission to promote global economic prosperity through seamless value exchange.Jeremy Allaire, Co-Founder and CEO of Circle, expressed the significance of Singapore in Circle’s expansion plans and the goal of facilitating frictionless value exchange. The company aims to leverage its licensed status to contribute to Singapore’s digital payment ecosystem positively.Pursuing overseas expansionWith ongoing regulatory turmoil in the United States right now in relation to the treatment of digital assets, no doubt Circle, just like many other leading US digital asset companies, sees the benefit in diversifying geographically. In turn, that feeds into the importance Allaire affixes to this Singapore expansion: “Singapore is integral to Circle’s global expansion and mission in raising global economic prosperity and through the frictionless exchange of value.”There has been a flurry of activity in terms of large crypto sector players establishing a greater foothold in Singapore in recent months. Last week, global crypto trading platform Crypto.com was granted an MPI license by MAS.Coinbase, the US-headquartered crypto exchange business that was sued earlier this week by the Securities and Exchange Commission (SEC) in the United States, took the decision to expand its product offering in the Singapore market last month. Another US-based crypto business, Gemini, has decided to expand its Singapore operation with a view towards growing its institutional and retail customer base.Tribe collaborationEarlier this year, Circle Singapore collaborated with Tribe, the first government-supported blockchain ecosystem builder in Singapore. Together, they launched a training and support program designed to nurture and upskill Web3 developer talent in the region. This initiative aligns with Singapore’s focus on promoting blockchain technology and nurturing a skilled workforce capable of driving the growth of the digital economy.With its full license, Circle Singapore is well-positioned to strengthen its presence in the Singaporean market and offer enhanced digital payment token services to institutional customers. The license also demonstrates the company’s commitment to compliance and regulation in the evolving landscape of digital finance.As Circle Singapore expands its operations and explores further innovations, it will continue to contribute to Singapore’s reputation as a leading global fintech hub. The company’s focus on promoting global economic prosperity aligns with Singapore’s vision of becoming a smart financial center and a pioneer in digital innovation.

Banking Difficulties Remain in Hong Kong for Crypto Start-UpsWhile Hong Kong has demonstrated a very clear crypto-friendly stance over the course of the past six months, crypto start-ups are still struggling with banking in the Chinese autonomous territory.Photo by Manson Yim on UnsplashLicensing backlogAll the signs are that Hong Kong is striving to develop itself as a regional hub for crypto and blockchain related business. Encouraged by that stance, against a background of the United States becoming openly hostile to crypto over that very same time frame, applications are streaming in from international firms to be licensed to operate their businesses in the city.In discussion with crypto start-up applicants, CoinDesk has established that the issue extends to firms that have already obtained a license to operate. To compound matters, the Hong Kong regulator, the Securities and Futures Commission (SFC), has a shortage of manpower, with just eight officials currently working on the applications of eighty crypto firms.Speaking to that backlog, Amy Yu, APAC CEO for Swiss crypto financial services company, SEBA Bank, stated: “This probably would have been a different story six or nine months ago.”A known problemIt appears that both the SFC and its regulatory peer, the Hong Kong Monetary Authority (HKMA) were aware of the issue and tried to get out ahead of it. Late last month, both regulators convened a meeting with bank officials and virtual asset service providers (VASPs).The objective was to try to forge a path forward such that banks could amend their approach, enabling greater facilitation and acceptance of crypto businesses such that the banks would be more inclined to approve bank account applications from those fledgling businesses.Arthur Yuen, Deputy CEO of the HKMA addressed the matter in a blog post published to the regulator’s website on April 27. Yuen was clear in calling on the banks to enable banking for VASPs:“With the implementation of the regulatory regime for VA [virtual assets] activities in Hong Kong and the strengthening of supervisory regimes in different jurisdictions according to the international standards, and as the banking industry develops a better understanding of the VA industry over time, we expect that regulated virtual asset service providers (VASPs) will be able to successfully apply for a bank account through a reasonable process.”Banker resistanceElaborating on the matter further, it’s clear that Yuen and his colleagues understand the importance of banking in enabling this nascent business sector such that the broader strategy of a pro-crypto business environment is affected in Hong Kong. “To attract businesses from new markets, it is crucial to have high quality financial services, while enhancing corporate access to bank accounts would be one of the key priorities,”he stated.An attendee at that regulator-organized round-table last month said that “It was more like a wish list from the regulator,” and that “whether the banks fully embrace it is another matter.” The issue remains as a major impediment to the ability of crypto start-up companies to operate, Some are being forced to try and work around the stumbling block, relying instead on overseas banking partners.