DBS Bank enables crypto-linked structured note distribution

It emerged on Wednesday that the Indian version of the Apple App Store has blocked access to eight crypto exchanges that were recently subject to a show cause notice from an Indian government agency, the Financial Intelligence Unit (FIU). The development occurred only two weeks after these global firms were flagged for allegedly operating "illegally" in the country. The FIU had cited non-compliance with India's anti-money laundering rules. In its statement on Dec. 28, the FIU urged India's IT Ministry to block the websites of all nine services in the country. The affected exchanges include Huobi, Gate.io, Bittrex, Binance, Kraken, Kucoin, MEXC Global and Bitfinex. Binance acknowledged the issue in a social media post, stating that it will continue to work with local regulators. Interestingly, Bitstamp, another exchange mentioned by the FIU, remained operational on the App Store in India. While these apps have been removed from the Apple App Store, they are still available on the Google Play Store in India and their websites remain accessible within the country. Users who had previously installed these apps on their devices can still access them. Photo by Naveed Ahmed on UnsplashTax avoidanceThe backdrop for this action involves a trend where many Indian traders had shifted to global cryptocurrency platforms rather than native digital asset exchanges. India initiated cryptocurrency taxation last year, imposing a 30% tax on gains and a 1% deduction on each crypto transaction.  While Indian-based exchanges like CoinSwitch, CoinDCX and WazirX maintain compliant know-your-customer verifications, global platforms have not followed suit. Notably, WazirX has experienced a drastic 97% drop in trading volume over two years as many traders migrated to global apps. It’s thought that as many as five million crypto users have shifted their trading activity to offshore exchanges. The tax has proven to be controversial and according to Dr. Vikash Gautam, the author of a report on the tax measure published last November, “it just isn’t enforceable . . . It is possible to be done with international cooperation, but we do understand it is a long process. Some of the other countries have some arrangements with international exchanges to track that." Leveling the playing fieldIt’s amid that competitive backdrop that native Indian exchanges lobbied the Indian government through the Bharat Web3 Association (BWA) to take action against unregulated offshore exchanges recently. CoinSwitch's co-founder and CEO, Ashish Singhal, urged offshore exchanges to comply with local regulations, suggesting registration with the FIU and adherence to India's Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) measures. Singhal, whose CoinSwitch platform is a founding member of the BWA industry advocacy group, highlighted that this would not only benefit offshore exchanges but also enhance consumer protection in India through increased regulatory oversight. Earlier warnings from Indian cryptocurrency exchanges foresaw users shifting to decentralized exchanges or non-compliant services due to the New Delhi government's taxation policy on crypto. In response, CoinDCX announced incentives for customers transferring their crypto assets from global exchanges to its India-based platform. Taking to social media on Wednesday, CoinDCX founder Sumit Gumpta stated:”This is a defining moment for [virtual digital assets] in India, and we're dedicated to facilitating a seamless and secure transition for investors navigating these changes.”   

Singapore Takes Lead in Regulating StablecoinsSingapore has taken a proactive step by finalizing regulations for stablecoins, solidifying its position as one of the first jurisdictions to do so on a global scale.The Monetary Authority of Singapore (MAS) has established a comprehensive framework that outlines essential prerequisites for stablecoin operations, according to an announcement made by the central bank on Monday.Key highlights include:Reserve Backing: Stablecoins must be backed by reserves consisting of low-risk and highly liquid assets. The value of these reserves should equal or surpass the circulating stablecoin value at all times.Prompt Redemption: Stablecoin issuers are mandated to return the par value of the digital currency to holders within five business days upon redemption requests.Transparency: Issuers must furnish users with “appropriate disclosures,” including audit outcomes of the backing reserves.These regulations will be applicable to stablecoins issued in Singapore that mirror the value of the Singapore dollar or any G10 currency, such as the US dollar. Stablecoins meeting all the requirements outlined by the regulations will receive recognition from the regulator as “MAS-regulated stablecoins.” This distinct categorization will differentiate them from tokens lacking regulation.Photo by CoinWire Japan on UnsplashKey roleWith a market valuation of approximately $125 billion, stablecoins have rapidly emerged as a significant force within the crypto space. Leading the pack are Tether’s USDT and Circle’s USDC, which together command around 90% of the market’s total value.Stablecoins play a key role in the crypto trading market. They allow traders to move in and out of various cryptocurrencies and back into fiat. However, despite their immense influence, stablecoins have largely remained unregulated across the globe. While their primary use has been in trading, stablecoin proponents assert their versatility in various applications, including remittances.Digital currency hubSingapore has been actively positioning itself as a hub for digital currencies, striving to attract foreign companies seeking refuge from the crypto industry’s apprehensions surrounding the current unwelcoming US regulatory approach.Despite their prevalence, stablecoin issuers have faced criticism regarding the transparency of their reserve holdings. Singapore’s regulatory measures aim to bring increased clarity to this sector.Ho Hern Shin, Deputy Managing Director of Financial Supervision at MAS, expressed that the framework’s purpose is to enable stablecoins to serve as a credible digital medium of exchange and bridge the gap between fiat and digital asset ecosystems.Positive industry responseLeading stablecoin firms, Tether and Circle, have applauded Singapore’s new regulations. Yam Ki Chan, Vice President of Strategy and Policy for APAC at Circle, stated that MAS is at the forefront of forward-looking regulators globally, establishing a transparent regulatory framework for stablecoins and digital assets. Paolo Ardoino, CTO of Tether, hailed the framework for providing a clear structure, accountability, and transparency in stablecoin operations within Singapore.The collapse of algorithmic stablecoin UST last year drew regulatory attention to this category of stablecoins. Unlike traditional stablecoins like USDT and USDC, UST was governed by an algorithm and lacked real-world assets as reserves.Singapore’s stablecoin regulations have placed it in a select group of jurisdictions pioneering such rules. Hong Kong is presently undergoing public consultation on stablecoins and plans to introduce regulations in the coming year.

Hyundai Motor Harnesses Blockchain to Double Down on Climate Change EffortsSouth Korean auto giant Hyundai Motor Group is taking significant strides in tackling global climate change concerns by harnessing the power of blockchain technology.Photo by Chris Liverani on UnsplashTracking carbon emissionsToday, Hyundai Motor and Kia, two affiliates of the group, have introduced the Supplier CO2 Emission Monitoring System (SCEMS), a carbon emission tracking solution based on blockchain technology. This system marks a pivotal step towards intensifying their efforts to reduce carbon emissions across their extensive supply chain.The SCEMS is designed to record and manage carbon footprints at every stage of the manufacturing process, starting from the extraction of raw materials to the production and delivery of parts and vehicles. This comprehensive approach allows Hyundai and Kia to gain better control over their carbon reduction initiatives.The urgency of addressing climate change has made it essential for organizations of all sizes to manage and decrease their carbon emissions. However, calculating carbon footprints requires an understanding of complex standards and intricate mathematical processes.Supply chainTo address these challenges, Hyundai Motor and Kia are providing the SCEMS to hundreds of their suppliers free of charge, offering them the necessary tools to effectively curb carbon emissions. The SCEMS employs artificial intelligence modeling, which automatically computes carbon emissions and predicts future projections as suppliers from various industries input their data into the system.Previously, these suppliers had to rely on external experts to perform such calculations. By adopting Hyundai’s new system, suppliers can now independently set their carbon reduction goals and efficiently manage their activities, thereby cutting costs and enhancing their competencies.Incorporating blockchainMoreover, Hyundai Motor and Kia anticipate that the incorporation of blockchain technology into their operations will bolster the reliability of their data, increasing their credibility among global evaluators of environmental, social, and governance (ESG) management.A Hyundai official emphasized that the scope of eco-friendly products now encompasses their entire lifecycles and supply chains. The company aims to lead the charge in building a sustainable and green supply chain.In line with this commitment, Hyundai Motor and Kia in February joined the Carbon Disclosure Project’s (CDP) Supply Chain Program, a nonprofit organization that oversees a global disclosure system for investors, companies, and regions to manage their environmental impacts. As part of this initiative, the Hyundai affiliates have also provided education to their suppliers to aid them in achieving carbon neutrality.Under the CDP’s Supply Chain Program, Hyundai affiliates’ suppliers need to submit data on energy consumption and greenhouse gas emissions, along with carbon neutrality strategies, sustainability objectives, and renewable energy transition plans to the nonprofit organization.