Sony Singapore partners with Crypto.com to enable USDC payments

In an effort to safeguard crypto investors from falling prey to misleading advertisements, the Securities and Exchange Commission (SEC) of Thailand has intensified its scrutiny of promotional campaigns within the crypto sphere. Photo by Dave Kim on UnsplashBroker agent eventsOn April 29, the Bangkok Post reported that the SEC has raised concerns regarding the potential violation of local regulations through introducing broker agent (IBA) events. These events, the SEC clarified, may breach regulations as IBAs are only permitted to promote digital token services to deter speculation on cryptocurrencies, categorized as high-risk assets. IBAs, acting as local conduits for partner digital asset exchanges, typically earn commissions by onboarding clients within a specific market. Such practices are common for exchanges or brokers that don't directly operate in certain markets. Deputy Secretary-General Anek Yooyuen conveyed the commission's unease over crypto exchanges offering preferential treatment to onboard users. Yooyuen stated: "When operators organise sales promotions by offering rewards to entice people to use the service, this could encourage use of the service without considering the investment risks. This is especially the case for cryptocurrencies.” Warning of consequencesHe cautioned that failure to adhere to these guidelines would result in “punishment according to the law.” While cryptocurrency exchanges are legal in Thailand, they must secure local approval. Notably, last month, Thailand even greenlit asset management firms to launch private funds, offering Bitcoin exchange-traded funds (ETFs) exclusively to institutional and ultra-high-net-worth investors. Nonetheless, the country recently prohibited the sale of cryptocurrency lending products and mandated that exchanges prominently display risk warning messages. International regulatory trendThis move by the Thai SEC mirrors actions taken by regulators in other major crypto markets. For instance, the United Kingdom's Financial Conduct Authority (FCA) issued 450 alerts for illegal crypto ads in 2023 alone. Similarly, Spain’s principal securities market regulator, the National Stock Market Commission, denounced fraudulent crypto asset promotions in November 2023, emphasizing companies’ obligations to adhere to local laws. Thai advertising guidelines mandate businesses and advertisers to substantiate the “facts” presented in their campaigns, failing which could lead to legal repercussions. A recent incident provides a case in point. Hackers hijacked advertisements on Etherscan, redirecting users to phishing sites aimed at draining crypto wallets. Scam Sniffer, a blockchain investigation firm, attributed the widespread phishing campaign to the inadequate oversight by advertisement aggregators. The company made the following statement on the matter: “Etherscan aggregates ads from platforms like Coinzilla and Persona, where insufficient filtering could lead to exposure to phishing attempts.” The wallet drainer scam involves enticing users to counterfeit websites and coercing them to link their crypto wallets, enabling scammers to siphon funds into their own wallets without user authentication or consent. This is not the first time that the authorities in Thailand have homed in on crypto-related advertising. In August 2023, the Southeast Asian country’s Ministry of Digital Economy and Society (MDES) outlined that it had engaged with social media firm Meta, owner of Facebook, informing it that its response to the proliferation of fraudulent platform ads relative to crypto had been inadequate. 

Singapore’s largest bank in terms of assets under management (AUM), DBS Bank, has introduced “DBS Token Services,” an offering it describes as “a new suite of banking services that integrate tokenisation and smart contract-enabled capabilities with its award-winning banking services.” The bank announced details of the new service offering via a press release published on its behalf by PR Newswire on Oct. 18. The product caters towards the needs of DBS Bank’s institutional clients, with the objective of unlocking operational efficiencies and transaction banking capabilities.  The product suite includes DBS Treasury Tokens, conditional payments and programmable rewards, with the latter allowing institutions to program and manage the use of funds. The products run on the bank’s permissioned blockchain, while being Ethereum virtual machine (EVM) compatible.Photo by Shubham Dhage on UnsplashRunning on permissioned blockchainThe bank pointed out the implications of operating the service over a permissioned blockchain network, stating:”Using a permissioned blockchain provides DBS full control over these services, enabling the bank to harness the benefits of blockchain technology while adhering to compliance standards.” Permissioned networks utilize distributed ledger technology (DLT) but they don’t truly embrace decentralization. They’ve proven popular with traditional financial services companies who want to still maintain ultimate control over the network. Conditional paymentsThe bank’s new product suite integrates tokenization and smart contract capabilities with existing conventional services. Those smart contracting capabilities make programmability an accessible feature for institutions relative to fund governance.  With that, conditional payments are likely to lead to an improvement in payment workflows for institutions. The bank believes that this aspect of its latest offering builds upon a recent pilot project that DBS engaged in alongside Enterprise Singapore and the Singapore Fintech Association (SFA). That project involved the utilization of blockchain technology, and in particular smart contracting, for the purpose of distributing government grants. DBS Token Services has been integrated with the bank’s core payment engine and various other banking sector payment infrastructures. Treasury Tokens enable institutional clients to settle multi-currency intra-group transactions across multiple markets instantaneously, 24/7. Back in August DBS partnered with digital payments provider Ant International, an affiliate of Chinese conglomerate Alibaba Group, on a pilot project involving blockchain-based treasury and liquidity management using Treasury Tokens. DBS Bank’s Group Head of Global Transaction Services, Lim Soon Chong, claimed that "by leveraging tokenisation and smart contract capabilities, DBS Token Services enables companies and public sector entities to optimise liquidity management, streamline operational workflows, strengthen business resilience, and unlock new opportunities for end-customer or end-user engagement.” Chong added that the new service is a leap forward in transaction banking, demonstrating “how established financial institutions can leverage blockchain technology to deliver new ground-breaking features and experiences.” Embracing blockchainDBS is an outlier in TradFi relative to blockchain and digital assets insofar as it has delved much deeper into the emerging technology by comparison with the majority of its peers. Last month, the company announced that it plans to introduce over-the-counter (OTC) crypto options trading and structured notes for institutional clients during Q4 2024. Earlier in the year, it participated in a proof of concept for FX payment versus payment (PvP) settlement on the blockchain of Singapore-based unified ledger market infrastructure firm Partior.

Korean Ministry of Government Legislation Holds Lecture on Generative AI and BlockchainThe Korean Ministry of Government Legislation said it held a lecture on generative artificial intelligence and blockchain in light of the global rise of advanced technologies on Thursday as a means of educating and enhancing the digital capabilities of its employees.The legal environment is expected to undergo rapid and substantial changes in tandem with the fast-paced advancement of technological innovation. In response, the Ministry is conducting a three-part series of special lectures on the expected demands of legislation in the future to help its employees prepare accordingly.This lecture was the second installment in the series, titled “Essential Survival Strategies in the Era of Generative AI.”It was planned as per Minister Lee Wan-kyu’s special orders to educate Ministry employees on the promotion and regulation of new technologies such as generative AI and blockchain, which have been gaining traction as key topics in recent legislative discussions.Photo by RUT MIIT by UnsplashA future led by blockchainThe first lecture, held on July 20, was led by Professor Park Seong-jun, Head of the Blockchain Research Center at Dongguk University in Seoul. During the session, he discussed how blockchain technology would impact South Korean society in the future and shared his insights into the trajectory of related legislation.Living with generative AIThe most recent second lecture featured Chief Judge Kang Min-gu of the Seoul High Court, who delved into the kind of mindset that public officials should adopt in the era of generative AI. He emphasized the need to strike a balance between digital and analog expertise and highlighted the importance of reassessing our attitude towards innovative technology while still valuing the essential principles for our way of life.Managing money launderingThe upcoming final lecture, scheduled for next month, will be given by Park Jeong-hoon, the former Head of the Korea Financial Intelligence Unit, regarding the topic of virtual assets and anti-money laundering. Given the existing concerns about the potential for virtual assets to facilitate money laundering due to their key characteristics such as anonymity and decentralization, this lecture aims to underscore the significance of instituting regulatory measures for preventing money laundering related to virtual assets.“Our laws must evolve to reflect the times that we are living in. Our society is currently experiencing rapid digital innovation — through the enhancement of the digital capabilities of our Ministry employees, I hope that legal administration can undergo innovation as well,” said Minister Lee, who also attended the lectures.“In the future, we will continue to expand capacity-building education opportunities for Ministry employees, enabling them to facilitate legislation that is demanded by modern times.”