TRES secures $11M funding to expand multi-chain tax reporting

Cebu Meeting of FSB Highlights Crypto RisksThe Regional Consultative Group for Asia of the Financial Stability Board (FSB) has highlighted the risks implicated by crypto assets in a series of meetings held on Thursday and Friday in Cebu, the Philippines.The FSB is an international body with a mandate to monitor the global financial system, as well as make recommendations in respect of that system. The agency was established by the G20 group of countries in April 2009, replacing its forerunner, the Financial Stability Forum.Photo by John Alvin Merin on UnsplashA regulatory framework for cryptoThe two-day event focused on non-bank financial intermediation (NBFI) in Asia and the development of an effective global regulatory framework for crypto-assets. It discussed recent developments in financial markets, together with their regional impact.In opening remarks, Philippine Central Bank Governor, Felipe Medalla, stated: “Crypto, the biggest issue there is, whether we like it or not is quite a lot, especially younger people who are actually gambling. They have huge losses, our view right now. Well, you’re there, it’s your problem and the regulation becomes strict the moment crypto meets banking.”International participants highlighted the need for the development of an effective global regulatory framework for crypto-assets. Particular concern exists with regard to the potential for systemic risk in relation to crypto and a potential overflow into the traditional financial system.Earlier this year, the FSB proposed a complete regulatory framework for cryptocurrencies, with the report having been originally submitted in October of last year. Among its key components is the imposition of tighter controls. It proposed the guiding principle of “same activity, same risk, same regulation” for crypto assets, mirroring the approach taken for traditional financial assets.Global approach to taming cryptoThis approach has proven to be problematic for people working within the digital assets space. Many of the core facets of cryptocurrencies are entirely different to anything we see in traditional finance. Trying to frame crypto within an existing approach and standard has been perceived by many to be akin to trying to fit a square peg in a round hole.It’s not the FSB's role or place to affect policy directly. That responsibility lies with policymakers and regulators in each individual country. However, the organization is seeking to influence those individuals and entities in the hope that they will employ its suggested regulatory framework.Klaas Knot, Chair of the FSB and President of the Dutch Central Bank, provided this view on crypto: “We will come up with a global regulatory framework. It also only makes sense to regulate this from a global perspective. Because, nowadays you can take a server and put it anywhere in the world and start issuing these digital assets.”From Knot’s take, it’s clear that governments and central bankers are cottoning on to the fact that individual nation-state regulation is futile to an extent where decentralized innovations like cryptocurrency are concerned. Others such as European Central Bank (ECB) President Christine Lagarde and Mark Branson, President of German financial markets regulator BaFin, similarly have called for a globally enforced regulatory approach over the course of the past year.Ongoing struggleWhile regulation can be helpful, particularly when it comes to the points at which crypto meets the traditional system, there’s no doubt that this emerging innovation will disrupt the conventional system to some degree or other. That may place an incentive before central bankers and governments to try and stymie the further development of digital assets.While a truly global approach to regulating digital assets could retard development of the sector, there is rarely total consensus among world governments on a single issue. Therefore, by its very nature, crypto, and the digital assets sector will likely continue to develop regardless. It’s more a question of how long that process takes.

Seychelles-headquartered global crypto exchange OKX outlined on Nov. 18 that it will offer instant, zero-fee Singaporean dollar (SGD) deposits and withdrawals into and out of the exchange platform for customers resident in Singapore.Photo by Peter Nguyen on UnsplashDBS partnershipIn a press release published by GlobeNewswire on behalf of OKX, the company outlined that it has been in a position to enable this feature for its Singapore-based customers due to a collaboration with Singapore’s largest bank, DBS Bank. OKX Singapore CEO Gracie Lin said that “working with DBS to provide payment rail infrastructure in Singapore provides customers with secure and seamless access to digital assets.” As DBS is one of 27 banks that participate in PayNow, a real-time payment system that falls under the Fast and Secure Transfers (FAST) service in Singapore, OKX customers who are also customers of a bank that participates in the PayNow scheme, can effect those SGD deposits and withdrawals in real time. Lin added that OKX is working towards the addition of more features in an effort to further enhance the customer experience. The new offering takes OKX a step further towards integrating with the local traditional finance system (TradFi).  Singpass integrationAdditionally, the exchange has also integrated Singpass verification. Singpass is a digital identity system that enables Singaporean residents to access private sector and government services online. Back in March, the company acquired in-principle approval (IPA) from the Monetary Authority of Singapore (MAS) in respect of a Major Payments Institution (MPI) license. Continuing that shift towards regulatory compliance, it followed up with the acquisition of a full MPI license from MAS in September. The company is now one of 29 crypto sector firms to have been licensed by MAS in Singapore. While a particular effort has been made in Singapore, OKX has been making similar in-roads elsewhere. Last month, it launched its service in the United Arab Emirates (UAE), having received full licensing from Dubai’s Virtual Assets Regulatory Authority (VARA). Making further progress in October, OKX partnered with UK-headquartered multinational bank Standard Chartered for institutional crypto custody. Both Singapore and the UAE are seen by the company to be strategic crypto hubs. However, its efforts in expanding its offering globally has also taken it into other markets. In February OKX launched OKX TR, a specialized crypto exchange platform catering to the specific needs of the Turkish market. In an emailed response to Reuters, DBS Bank’s Head of Digital Assets, Evy Theunis, commented on its partnership with OKX:”DBS has been actively fostering a responsible and innovative digital asset ecosystem in Singapore for several years now. Working with OKX deepens the bank's wide-ranging involvement in this space." DBS has been following its own path as a pioneering TradFi entity getting further involved in cryptocurrency, blockchain and tokenization. Last month it launched DBS Token Services for institutions, integrating tokenization and smart contracting capabilities within its existing conventional services. 

Korean Blockchain Firm Proposes Fintech Collaboration in CambodiaSouth Korean fintech and blockchain company KONDOR recently made an announcement through a press release regarding the establishment of a blockchain fintech advisory board in Cambodia. The firm has proposed a business agreement to the Securities and Exchange Regulator of Cambodia (SERC) with the aim of ensuring sustainable growth in the financial sector and capital markets.Photo by allPhoto Bangkok on PexelsFintech advisory boardThe advisory board comprises experts from various fields, including finance, economics, law, blockchain technology, fintech, and artificial intelligence. They will function independently, offering counsel on policy decisions.Sou Soucheat, Director General of SERC, highlighted that Cambodia is currently in the process of rebuilding and has a youth-driven economy and financial markets. He sees the collaboration with KONDOR as a valuable opportunity to develop a future-oriented financial system.The advisory board will see participation from KONDOR and other notable members, namely VEXK, a global digital asset exchange in Vietnam; Blue Contents, a Honolulu-based digital economy research center; and the Paññāsāstra University of Cambodia, a key player in the country’s educational field.KONDOR and VEXK have put forth a proposal for the joint establishment of a trust company and the pursuit of a custody license in alignment with Cambodia’s revised trust law of 2019.Procuring licensesFollowing the proposal’s approval, VEXK plans to procure a license as a digital asset exchange, as well as a license to establish a trust company. This would enable VEXK to effectively oversee clients’ digital and physical assets through accounts within the established trust company. The safety of these assets will be ensured through insurance coverage provided by reputable global insurers. Furthermore, VEXK will acquire the ability to facilitate USD trading and will retain the digital asset exchange license for five years.The license application will gain support from the SDG Impact Fund, a US-based organization managing $11 billion worth of assets, and the Estates & Infrastructure Exchange (EIX), a project bond exchange based in London.EIX CEO Mark Worrall said that active support from a securities regulator in the dynamic and expanding Web3 era would certainly contribute to Cambodia’s economic growth.