StanChart CEO predicts blockchain will replace cash in everyday finance

SC Ventures Exits Digital Asset Custody Infrastructure InvestmentSC Ventures, the Singapore-headquartered corporate venture capital arm of Standard Chartered Bank, has announced its decision to divest its stake in Metaco, a Swiss-based digital asset custody firm. As one of Metaco’s early adopters, SC Ventures played a crucial role in supporting the company’s growth and development.Photo by Pixabay on PexelsDissolving a partnershipHaving been the largest institutional investor in the digital custody infrastructure firm, SC Ventures contributed significantly to the enhancement of Metaco’s award-winning custody product. The partnership between the two entities facilitated valuable contributions in various areas, including corporate governance, business strategy, institutional use cases, and access to SC Ventures’ extensive ecosystem. Through their collaboration, SC Ventures aimed to provide institutions with a secure and compliant ecosystem for operating digital assets.Ripple acquisitionIn a recent development, enterprise blockchain company Ripple acquired Metaco for $250 million. Ripple’s acquisition of Metaco signifies its diversification into custody solutions, expanding its business opportunities within the blockchain sector. With this move, Ripple aims to offer its customers technology that enables custody, issuance, and settlement of various types of tokenized assets. Further evidence of Ripple’s interest in this area emerged last week with the news that the company is collaborating with authorities in Hong Kong to showcase real world asset tokenization.Despite the acquisition, Metaco will continue to operate as an independent brand and business unit, under the leadership of its founder and CEO, Adrien Treccani. This decision ensures continuity and stability for Metaco’s existing clients and partners while benefiting from the resources and support provided by Ripple.Ongoing linkWhile the divestment of a division of an international banking behemoth like Standard Chartered from a digital asset infrastructure firm may seem like a bad news story, it’s likely not that straightforward. It’s worth noting that Zodia Custody, itself a digital assets custody venture incubated by SC Ventures, continues to maintain a strategic partnership with Metaco.The ongoing collaboration between Zodia Custody and Metaco focuses on matters related to compliance and risk management. This partnership ensures that both companies can leverage their respective expertise to address the increasing demand for safe and compliant access to cryptocurrencies and digital assets from institutional investors.Despite this divestment, it appears that SC Ventures still recognizes the importance of supporting emerging technologies on the cusp of adoption through its continued involvement with Zodia Custody, continuing advancements in the digital asset space.SC Ventures’ exit from its stake in Metaco marks a significant milestone in the ongoing evolution of both companies. While SC Ventures has played a vital role in Metaco’s growth, the acquisition by Ripple opens up new opportunities for Metaco to expand its offerings and cater to a broader customer base. Meanwhile, the collaboration between Zodia Custody, Metaco, and SC Ventures ensures that institutional investors have access to secure and compliant solutions as the demand for digital asset services continues to rise.

Survey Reveals Favorable Public Opinion on Binance’s Acquisition of Korean Exchange GopaxCratos, a South Korean blockchain-based polling app, conducted a survey from June 12 to June 14 to gauge public opinion on whether the Financial Services Commission (FSC) should approve the request of Korean cryptocurrency exchange Gopax’s operator Streami to change its representatives, as reported by local news outlet The Stock. This change is necessary for global crypto exchange Binance to acquire Gopax.The survey, which involved 2,093 participants, revealed that 64.6% of respondents favored approving the acquisition, while 35.4% opposed it. More than half of the participants believed that approving the acquisition would safeguard investors’ assets deposited in Gopax.Photo by Heesang Park on PexelsSurvey resultsWhen analyzed by age group, the survey found that respondents in their teens and 20s were more likely to disagree with the acquisition, with 69.4% and 52.3%, respectively. However, those in their 30s were more inclined to support it. Notably, over 70% of respondents in their 50s agreed with the acquisition.Among those who favored Binance’s acquisition, 55.5% chose investor protection as their reason. 33.5% believed there were no legal grounds to refuse the acquisition (33.5%), and 11.0% expressed concerns about the potential shrinkage of the crypto market (11.0%).On the other hand, the most common reason given by respondents for opposing the acquisition was the risk of Binance’s opaque business and financial structure (45.8%). This was followed by the ineligibility of executives, representatives, and other major shareholders (37.4%) and the risk of disrupting the crypto market (16.8%).Consensus on investor protectionCratos CEO Kang Dong-won explained that the crypto winter, characterized by declining crypto asset values, has been prolonged due to a series of negative news at home and abroad, including the US Securities and Exchange Commission’s (SEC) lawsuits against Binance and Coinbase, poor performance of crypto exchanges, and controversy over a Korean lawmaker’s alleged holding and investment of crypto assets. Kang believes that the survey findings reflect falling crypto yields, leading to a growing consensus on the need for investor principal protection and victim relief.On March 7, Streami submitted a report to notify the Financial Intelligence Unit (FIU) under the FSC about the change of its representatives. However, the Korean financial watchdog has been pending its decision amid Binance’s legal issues.The concern is that if Binance fails to acquire Gopax, investors could suffer losses since their assets worth KRW 56.6 billion are held in GoFi, the exchange’s crypto deposit service. On June 8, GoFi users sent a public inquiry to the FIU regarding the reasons for the delay in approving the exchange operator’s request. In the meantime, Streami is exploring ways to address this challenge by announcing its board meeting scheduled for next week. The meeting will discuss changing its CEO from Leon Sing Foong, Asia Pacific Head at Binance, to Lee Joong-hoon, Gopax’s current Vice President, as it is believed that appointing a Korean national as the CEO would facilitate smoother communication with the government.

South Korea is ramping up its scrutiny on cryptocurrency exchanges, with the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) announcing its intention yesterday to remove platforms that lack the necessary qualifications, according to the Korea Economic Daily.Unqualified exchangesIn its announcement yesterday, the FIU revealed its aim to block unqualified virtual asset service providers (VASPs) from facilitating trades in Korean won, the currency of the country. Those currently providing Korean won trading services will be eliminated from the market unless they can demonstrate they meet the required standards. With many exchanges set to renew their registrations in the latter half of this year, the FIU is gearing up for thorough evaluations through June to identify and remove unqualified VASPs. The FIU's assessments will focus on determining whether VASPs have adequate measures in place for user protection and are safeguarded against risks of money laundering. To bolster its efforts in preventing money laundering risks, the FIU intends to establish a framework where lawyers and accountants participate in crypto oversight activities.Photo by Andrea Piacquadio on PexelsExamining majority shareholder of VASPThe financial watchdog is also looking to propose amendments to the Financial Transaction Reports Act, aiming to raise the standards for VASP registration by introducing more stringent requirements. Beyond the current assessments of a VASP operator and its executives, the new regulations will involve close examination of its majority shareholder. This additional layer of scrutiny will evaluate the credibility of the major parties related to the VASP, taking into account factors such as their history of loan defaults. The FIU is set to create a system for analyzing cryptocurrency transactions and will strengthen its communication channels, not just with financial institutions but also with prosecutors and police forces. Furthermore, the agency is reviewing the Financial Action Task Force's (FATF) recommendation for freezing transactions in cases of suspicious activities. Once implemented, this will enable the FIU to temporarily halt suspicious transactions before bringing the issue to prosecutors.