Korean Investment Firm Partners with Open Asset to Build Security Token System

First ever cross-border settlement achieved for gold using e-CNYThe first ever cross-border settlement for precious metals using China’s central bank digital currency (CBDC), the digital yuan or e-CNY, has been successfully completed.Photo by Jingming Pan on UnsplashA year of e-CNY firstsIn October, Chinese state-owned media reported that the Shanghai Petroleum and Natural Gas Exchange (SHPGX) had been the venue for the first ever significant settlement of an oil contract using the e-CNY. Running along a commodities theme, on Wednesday a similar transaction was carried out once again with Shanghai being the venue, relative to the purchase of gold.A transaction valued at 100 million yuan ($14 million) was facilitated by the Bank of China’s Shanghai branch through the Shanghai Financial Exchange International Board. That’s according to reports from local Chinese media outlets.The Bank of China’s Shanghai branch, a key participant in the ongoing e-CNY pilot testing, orchestrated the transfer of e-CNY CBDC settlement received from overseas for the purchase of the gold. A spokesperson for the Bank of China highlighted the strategic significance of the transaction, stating:“The account will contribute financial strength to support Shanghai’s in-depth implementation of the free trade pilot zone promotion strategy and promote the quality and upgrading of the international trade center.”Oil, gold and iron oreThis achievement follows on from the Bank of China’s Hong Kong affiliate Bank of China (Hong Kong) (BOCHK) facilitating the import of iron ore to China through the e-CNY just last week. As part of that pilot trial, Baosteel Group, a customer of the Bank of China, purchased iron ore from Bao-Trans Enterprises.Further expanding its international partnerships, China signed a $400 million memorandum on CBDC cooperation with the United Arab Emirates on Dec. 1. The move underscores China’s commitment to fostering collaboration in the development and implementation of CBDCs on a global scale.Partnering with foreign banksThe Bank of China is actively collaborating with foreign institutions, including France’s BNP Paribas, to advance the development of the digital yuan CBDC.In July, Singaporean bank DBS Bank launched an e-CNY product for mainland China-based customers. Amid relentless moves to further the use of the digital currency, British banking giant Standard Chartered joined the advanced stages of pilot trials of the CBDC in November.Chinese President Xi Jinping, recognizing the pivotal role of CBDCs in cross-border trade, emphasized their importance during an address to the July 2023 Shanghai Cooperation Organisation (SCO) Summit. Subsequently, foreign banks have joined China’s ongoing CBDC trials, and Singapore announced its decision to allow Chinese tourists to utilize e-CNY for transactions within Singapore.In a related development, the official e-CNY app received an update on Tuesday. The latest version allows users to create an e-CNY wallet using their phone number, provides options to disable the wallet in case of phone loss and enables the resetting of passwords and private keys. Users can also link their personal bank accounts and debit cards to the e-CNY wallet for seamless in-wallet purchases.

Regulatory Pressure Sees Binance Cease Card Offering in the Middle EastLeading global crypto exchange Binance has announced the discontinuation of its card services in the Middle East.Users hailing from the region will have until September 21 to maximize the utility of their Binance cards before the product will no longer be available to them. Latin America is another region which will be similarly affected by the decision. Binance Customer Support stated: “The Binance Card will regrettably no longer be accessible to users based in Latin America and the Middle East.”Photo by rupixen.com on UnsplashEnabling crypto spendingDistinct from conventional debit cards, these Binance cards have offered users the convenience of settling day-to-day expenses with crypto assets. However, this unique feature is now set to become a relic as the exchange shifts its strategy in response to evolving regulatory dynamics.It’s worth noting that this product curtailment will only impact less than 1% of users situated in these regions. Other Binance services around the world will continue unimpeded. That said, products like this one are significant as they help to bridge the gap between the crypto sphere and conventional commerce.As a substitute, Binance is actively championing its “Binance Pay” platform, touting it as “an advanced cryptocurrency payment solution that is both contactless and internationally accessible.”Checkout.com setbackFinancial pundits are speculating that this strategic move could be closely intertwined with recent realignments in Binance’s corporate partnerships. Notably, the UK-based payment processor, Checkout.com, severed its connections with Binance earlier this month amidst mounting regional regulatory interventions and concerns.Responding to this severed partnership, Binance has indicated a contemplation of legal recourse against Checkout.com’s decision. The backdrop of this collaboration has been problematic since its inception in 2020. Initial troubles surfaced when the absence of the 3-D Secure system facilitated a criminal syndicate to conduct a $10 million transaction spree on Binance.Clash with global regulatorsRecent months have seen Binance find itself entangled in a web of legal battles. The US Securities and Exchange Commission (SEC) leveled allegations against Binance, accusing the exchange of deceiving regulatory bodies and mishandling customer funds.Meanwhile, French authorities have intensified their scrutiny, suspecting Binance of potential involvement in money laundering activities. As a domino effect, Binance had to exit numerous markets due to its inability to meet the stringent compliance criteria. Over the course of just three months, the company has lost its ability to trade in Germany, Canada, Belgium, the Netherlands, and Cyprus.Asian pivotAs the company comes under pressure in Western markets, it has focused on furthering its offering in the Asian region. In May, its subsidiary, Gulf Binance, successfully acquired a trading license in Thailand. Later that month, the company announced plans for a dedicated platform for Japanese customers.Parrot Capital, a decentralized hedge fund, has issued a direct recommendation to Binance Card users in response to the news:“Check your daily limits. Withdraw via ATM all your funds or spend them ASAP or risk losing them for good.”This sustained and pervasive scrutiny underscores the formidable challenges faced by the leading crypto exchange. As the regulatory landscape evolves, exchanges like Binance are being forced to re-calibrate in order to navigate an ever-changing environment.

Turkey crafts new crypto regulations with FATF grey list removal objectiveIn an effort to secure removal from the Financial Action Task Force’s (FATF) “grey list,” Turkey is in the process of crafting new regulations governing crypto assets.The FATF, established by the Group of Seven (G7) advanced economies, serves as a guardian of the international financial system. It’s an international organization dedicated to combating financial crimes, which added Turkey to its “grey list” in 2021. In 2019, it cautioned Turkey about significant deficiencies in procedures for freezing assets linked to terrorism and the proliferation of weapons of mass destruction.Photo by Michael Jerrard on UnsplashCrypto compliance for FATF upgradeTurkish Finance Minister Mehmet Simsek recently discussed this matter with a parliamentary commission, according to a report published by Reuters. Simsek highlighted the FATF’s evaluation of Turkey’s adherence to 39 out of the 40 standards set by the organization. The single outstanding issue pertains to crypto assets, and Simsek revealed plans to introduce a crypto assets law in parliament to address this concern. However, he did not delve into specific legal changes.The Turkish government is taking action to align with international standards and remove the shadow of the “grey list.” The Turkish Presidential Annual Program for 2024, as published in the Official Gazette of the Republic of Turkey on October 25, outlines a commitment to establish comprehensive cryptocurrency regulations in the country by the end of 2024. Within the extensive 500-page document, Article 400.5 sets the goal of providing clear definitions for crypto assets, potentially subjecting them to taxation in the future.Additionally, the document seeks to establish legal definitions for crypto asset providers, including cryptocurrency exchanges. However, it refrains from specifying the finer details of the upcoming regulatory framework.Crypto popularityTurkey has been an outlier in terms of cryptocurrency use by comparison with many of its international peers. A report by KuCoin earlier this year validated that reality, indicating a significant increase in the number of crypto investors in Turkey over the course of the previous 18 months. In the aftermath of a devastating earthquake which hit the country on Feb. 6, crypto was reported to have been used as a means to get aid to those affected quickly and easily.However, developments in the crypto space have also included difficulties. It was reported in July that the use of crypto for the earthquake relief effort in Turkey was also being used as a cover by an affiliate of the terrorist group ISIS to launder money and receive funding. Turkish users of the Thodex crypto exchange platform were the victims of fraud in 2021, with the founders of that business having been sentenced for that fraud in September. In 2021 the country moved to ban crypto payments against a background that has seen the Turkish lira experience hyper-inflation.CBDC developmentTurkey’s central bank has been making strides in the digital currency arena, successfully conducting the initial trial of its central bank digital currency (CBDC), the digital lira, by December 2022. The central bank has expressed its intention to continue testing and exploring digital currency development throughout 2024.The move to enhance regulation and compliance in the crypto sector in Turkey aligns with global efforts to ensure transparency and accountability in financial systems.