Hybrid exchange Cube lists Access Protocol (ACS)

ZA Bank to Expand into Crypto Trading in Hong KongZA Bank, a leading virtual bank in Hong Kong, announced its plan to launch virtual asset trading services for retail investors. This initiative aligns with the Hong Kong government’s objective to foster a thriving virtual asset sector.The bank aims to enable investors to trade virtual assets in fiat currency via the ZA Bank App, a move that involves securing regulatory approvals and forming partnerships with licensed virtual asset exchanges.Photo by Jimmy Chan on PexelsComprehensive financial servicesIn a press release on Wednesday, ZA Bank CEO Ronald Lu appreciated the licensing guidelines set forth by the Hong Kong Securities and Futures Commission (SFC), expressing belief that virtual assets could evolve into a major asset class. The virtual bank’s new venture forms part of ZA Bank’s broader strategic expansion plan to provide a full range of financial services, which will eventually include US stock trading services.ZA Bank places a high emphasis on customer security and regulatory compliance. The bank commits to employing appropriate safeguards, including working with reliable third-party providers, implementing advanced security protocols, and strictly following anti-money laundering (AML) and know-your-customer (KYC) rules. Furthermore, ZA Bank will educate its users about the potential risks and rewards of virtual asset trading, assisting customers in making informed decisions.Similar move by an exchangeA similar move was seen earlier from crypto exchange BitMEX. The Seychelles-based trading platform announced in a blog post that it is gearing up to launch “BitMEX Hong Kong.” The company is presently working towards acquiring a virtual asset service provider (VASP) license from the SFC. The SFC notified that the VASP guidelines will become effective on June 1.Facilitation from regulatorsThese recent developments in the crypto industry follow the Hong Kong Monetary Authority’s (HKMA) efforts to facilitate dialogue between banks and crypto enterprises. According to last month’s column by HKMA Deputy Chief Executive Arthur Yuen, the HKMA and the SFC convened a joint meeting for the banking industry and VASPs to share opinions on bank account opening.

Binance Initiates Registration Process for AML Compliance in TaiwanGlobal crypto exchange Binance has set in motion the process of registering under Taiwan’s Money Laundering Control Act, the sole crypto-related regulatory framework currently established in Taiwan.In a confidential gathering on Tuesday, Taiwan’s Financial Supervisory Commission (FSC) conveyed to numerous domestic crypto service providers that Binance is in the process of applying for registration to ensure compliance with anti-money laundering (AML) regulations, according to a local media report.Photo by Thomas Tucker on UnsplashImportance of AML complianceTaiwan has mandated that virtual asset service providers (VASPs) adhere to its anti-money laundering statutes since the FSC introduced AML rules in July 2021. Outside of these measures, the cryptocurrency industry in the country remains largely unregulated.Speaking to The Block on Friday, an FSC official refrained from confirming whether Binance had already submitted the necessary documentation to register with the regulatory body. However, the official did emphasize the importance of offshore crypto platforms operating in Taiwan abiding by the local AML regulations.While Binance is not yet regulated in Taiwan, it has established a local entity named “Binance International Limited Taiwan Branch (Seychelles),” as per records from the Department of Commerce’s database. The registration particulars indicate that the Taiwanese government endorsed Binance’s company registration on May 12, 2023, with a registered capital of NT$30 million ($944,000) within Taiwan.Cooperation with law enforcementBinance has taken steps to cooperate with local law enforcement agencies to combat cybercrime in Taiwan. In June, the exchange revealed its collaboration with Taiwan’s Criminal Investigation Bureau, leveraging its expertise to assist over 200 Taiwanese law enforcement officers in addressing digital asset-related criminal activities.Damien Ho, Head of Global Partnerships at Binance, remarked in a blog post at the time:“As an increasing number of individuals in Taiwan show interest in cryptocurrency, ensuring a secure and comfortable crypto ecosystem for users becomes crucial.”Growing Asian influenceBinance’s influence is growing across Asia. This month, it officially launched operations in Japan after its acquisition of the local exchange Sakura Exchange BitCoin in November 2022, paving the way for regulatory oversight by the Japan Financial Services Agency (JFSA). Earlier this month, an investigative report carried out by the Wall Street Journal revealed that Binance is thriving in China in spite of the fact that crypto trading is a banned activity there.Regulatory guidelines anticipatedTaiwan’s FSC, which assumed the role of the primary regulator overseeing the crypto industry in March, is currently formulating comprehensive guidelines for trading and payments involving cryptocurrencies for VASPs.The FSC has disclosed plans to release the VASP guidelines by the end of September. Kevin Cheng, a Director at the Taiwan Fintech Association, revealed that the FSC intends to implement a stringent regulatory approach for crypto platforms in Taiwan, similar to its oversight of traditional financial institutions.Cheng noted: “The FSC plans to require VASPs to keep their own crypto assets separate from the clients’ crypto assets and to have accounting firms audit such assets every year.” However, Cheng highlighted the potential difficulty of this requirement, as many accounting firms might hesitate to serve crypto clients due to the specialized nature of crypto-related information.

Singapore’s Central Bank Paves the Way for Digital Asset NetworksSingapore’s Monetary Authority (MAS) has taken a significant step towards the future of digital assets by proposing a comprehensive framework for the design of open and interoperable networks for tokenized digital assets.Photo by Pixabay on PexelsDetailed frameworkIn a report published on Monday, titled “Enabling Open & Interoperable Networks,” MAS presented a detailed framework aimed at understanding the design options necessary to facilitate the seamless trading of digital assets across diverse networks and liquidity pools. The framework is rooted in the core principles of financial market infrastructure and draws inspiration from cutting-edge projects that have been at the forefront of advancing these concepts.To ensure a robust and comprehensive approach, the report was jointly developed with subject matter experts from the Bank for International Settlements’ (BIS) Committee on Payments and Market Infrastructure (CPMI), with valuable contributions from prominent financial institutions including DBS Bank, JP Morgan, HSBC, SBI Digital Asset Holdings, Standard Chartered, and UOB.MAS defines digital asset networks as platforms that leverage distributed ledger technology (DLT) or blockchain to enable secure and efficient transfers of digital assets without the need for traditional intermediaries. These networks serve as the foundation for open and interoperable infrastructure, facilitating the issuance, transfer, and custody of digital assets. By promoting transparency, efficiency, and trust, the report suggests that they will play a pivotal role in shaping the digital asset ecosystem.Project GuardianThe report underscores the immense potential of digital asset networks in a future financial landscape, where digital assets and currencies can be seamlessly exchanged across different networks. MAS believes that these networks could revolutionize the way financial transactions occur, leading to increased efficiency and expanded possibilities. The framework also lays the groundwork for future exploration as part of the Project Guardian initiative, encompassing additional focused themes such as Trust Anchors and Institutional DeFi.MAS has also announced the expansion of Project Guardian to include a broader range of financial asset classes. The project now features an industry group comprising 11 leading financial institutions that will spearhead industry pilots in asset and wealth management, fixed income, and foreign exchange. Esteemed banks such as HSBC, Standard Chartered, DBS, and Citi are set to conduct multiple trials focusing on tokenization. For instance, Standard Chartered, in collaboration with Linklogis, is developing an initial token offering platform to issue asset-backed security tokens listed on the Singapore Exchange.Despite its cautious stance on cryptocurrency speculation, MAS recognizes the immense potential for value creation and efficiency gains within the digital asset ecosystem. Leong Sing Chiong, MAS’ Deputy Managing Director of Markets and Development, emphasized the authority’s optimism, stating: “We see significant potential for value creation and efficiency gains in the digital asset ecosystem.”This latest initiative by MAS comes on the heels of its recent proposal for standards governing the use of digital money, including central bank digital currencies (CBDCs) and stablecoins. Singapore’s central bank is paving the way for the future of digital assets and making a strong effort to assert its position as a global leader in digital asset innovation through the establishment of this framework alongside industry collaboration.