Banxa's UK arm makes regulatory strides with FCA approval

Bitget invests in Morph layer 2 networkBitget, the Seychelles-incorporated crypto derivatives exchange, has injected a multi-million dollar investment into Morph, a Layer 2 blockchain that puts consumer experience at the forefront.Photo by Shubham Dhage on UnsplashCombining zero knowledge and optimistic rollupsThe collaboration, unveiled on Monday, signals a significant stride toward cultivating a novel, value-driven decentralized application (dApp) ecosystem. Morph, formerly known as Morphism, has garnered attention for its unique use of roll-up technology. By seamlessly blending optimistic and zero-knowledge (ZK) roll-ups, Morph aims to revolutionize scalability, reduce cost barriers, expedite dispute resolutions and ensure secure and adaptable transactions.The project’s modular framework allows individual components of the ecosystem to evolve independently, staying abreast of rapid innovations in consumer applications.Combating MEVA distinctive feature of Morph’s design is the Decentralized Sequencer Network, a mechanism that ensures swift and cost-effective Layer 2 transactions. This challenges the dominance of maximal extractable value (MEV) and eradicates central points of control. MEV involves the maximum amount of value that can be extracted from a block on a blockchain network. It may be manipulated through the ordering and sequencing of transactions on the chain.Technological innovation is not the sole objective of the Morph development team. Their ambition extends to creating a space where dApps seamlessly integrate into users’ daily lives, delivering tangible value. This consumer-centric approach prioritizes user experience through easy onboarding processes and intuitive interfaces. The network is attractive to developers due to lower cost barriers and accelerated dispute resolution.Gracy Chen, Managing Director of Bitget, underscored the significance of the collaboration, praising Morph’s exceptional team, multicultural approach and strategic capabilities. Chen notes that Morph’s emphasis on a decentralized and consumer-centric approach aligns seamlessly with Bitget’s vision. This partnership, she believes, has the potential to transform the blockchain space, making the technology more accessible for everyday use and unlocking widespread consumer adoption.Cecilia Hsueh, Co-Founder and CEO of Morph, expressed gratitude for Bitget’s support, emphasizing that the recent capital infusion underscores confidence in Morph’s unique value proposition, setting the stage for an upcoming seed funding round. The strategic alliance with Bitget provides Morph with a robust platform for growth, tapping into Bitget’s expansive user base of 20 million exchange users and 12 million Bitget Wallet users. Notably, Morph had previously entered into a strategic alliance with Foresight Ventures, a crypto fund based in Singapore.Looking ahead, Morph is gearing up for significant milestones as it develops further. The project plans to intensify the refinement of its technical framework and broader ecosystem in the coming months. Notably, Morph is slated to launch its public testnet in January 2024, followed by the beta mainnet of its Optimistic zkEVM, which is scheduled for Q2 2024.As Bitget continues to forge ties with up-and-coming Web3 entities, this collaboration with Morph has the potential to propel the project towards its strategic goals but also sets the stage for a transformative shift in the landscape of Layer 2 solutions.

bitFlyer Moves to Comply With Travel RulebitFlyer, a Tokyo-based Bitcoin exchange and marketplace, has taken steps to comply with the travel rule, an anti-money laundering measure promoted by Paris-based global financial crime watchdog, the Financial Action Task Force (FATF).The rule necessitates the exchange to pass on customer data to a recipient exchange where the crypto transaction involves a value of greater than $3,000.Photo by Ivan Babydov on PexelsImplementing TRUST technologyThe company announced on Tuesday that these measures, which went into effect in the afternoon local time, include restrictions on transfers from the exchange to platforms that do not comply with the Travel Rule Universal Solution Technology (TRUST). This technology was initiated by Coinbase, the US-based crypto exchange, to ensure that firms adhere to FATF’s requirements. The mechanism is a product of the collaboration of Coinbase alongside leading crypto exchanges such as Kraken, Gemini, BitMEX, Bittrex, Okcoin, and others.To enforce these measures, bitFlyer has established notification requirements for receiving and sending crypto to TRUST-compliant platforms in a list of 21 countries. The list includes Japan, Israel, Gibraltar, Hong Kong, the Bahamas, and Switzerland. Additionally, bitFlyer has limited transfers to compliant platforms in these countries to TRUST-compatible crypto assets such as bitcoin (BTC), ether (ETH), and several ERC-20 tokens.On the other hand, transfers to and from countries not on the list, as well as transfers to private self-custodied wallets, can be conducted using any crypto asset available on the bitFlyer platform.Compliance with Japanese legislationWhile the exchange refers to travel rule compliance relative to 21 countries, it’s unlikely to be a coincidence that the Japan-headquartered company has implemented this compliance measure a couple of days before Japan is set to introduce a FATF travel rule compliance requirement which comes into effect on June 1.These measures align with Japan’s recent commitment to implementing FATF’s travel rule, which requires the sharing of crypto transaction information between platforms. The watchdog had urged advanced economies in the G7 to take the lead in combating money laundering through digital assets.Increasing regulatory demandsIt is worth noting that bitFlyer’s US unit recently faced a fine from US financial regulator, the New York State Department of Financial Services (NYDFS), due to its failure to meet cybersecurity requirements. The incident highlighted the increasing scrutiny and regulatory demands placed on crypto exchanges to ensure the security and compliance of their operations.By aligning itself with the FATF Travel Rule and implementing these restrictions, bitFlyer aims to enhance its anti-money laundering efforts and contribute to global efforts to combat financial crimes in the crypto space, helping to steer itself clear of potential issues with global regulators.As the crypto industry continues to evolve, regulatory frameworks and standards are being established to address concerns regarding money laundering and illicit activities. Compliance with such regulations is essential for crypto exchanges to foster trust among users, attract institutional investors, and contribute to the overall maturation and legitimacy of the crypto ecosystem.

China and Singapore collaborate on cross-border digital yuan transactionsTaking yet another stride toward globalizing the e-CNY currency, China’s central bank has unveiled a pilot program in collaboration with its Singaporean counterpart, enabling tourists from both countries to use the digital yuan for transactions when traveling.Photo by Eric Prouzet on UnsplashSeries of initiativesThis move is part of a series of initiatives unveiled by the two governments during a Joint Council for Bilateral Cooperation event which was held in Tianjin, China, last week. Among the announced measures is a mutual 30-day visa-free travel arrangement, one of 24 deals signed to strengthen bilateral ties between China and Singapore.The Monetary Authority of Singapore (MAS) disclosed in a statement that it had collaborated with the Digital Currency Institute of the People’s Bank of China (PBOC) for this initiative. The program aims to facilitate the use of the digital version of the Chinese currency for tourist spending, enhancing convenience for travelers during their overseas trips. While specific details about the scheme were not disclosed, it represents a collaborative effort to promote cross-border transactions using the digital yuan.Internationalizing the digital yuanIn its reporting on the announcement, the South China Morning Post (SCMP) pointed to the views of Richard Turrin, an independent financial technology consultant and author of “Cashless: China’s Digital Currency Revolution.” Turrin sees the digital yuan collaboration as a promising opportunity for cross-border retail use. He suggests that starting with small transactions, such as those by tourists, could pave the way for broader applications in trade and other high-value scenarios.In an editorial back in November, the SCMP referred to the birth of the Petro-Yuan, speculating that the era of the Petro-Dollar is coming to an end. “In a global political economy long dominated by the petrodollar, this could be the beginning of a seismic shift,” the editorial stated. The internationalization of the e-CNY will likely be a key aspect of that overall monetary sea change.Over 5 years in developmentChina initiated digital yuan testing in 2019, and although an official launch timetable has not been confirmed, adoption has accelerated recently. Former PBOC governor Yi Gang reported that total e-CNY transactions reached 950 million yuan ($133 million) in June, with a cumulative value of 1.8 trillion yuan compared to 100 billion yuan in August 2022. This indicates a substantial increase in digital yuan transactions.The momentum extends beyond mainland China, with Beijing exploring CBDC usage internationally. The mBridge trial, completed last year, involved multiple countries using central bank digital currencies to settle trades, including Hong Kong, Thailand and the United Arab Emirates.In June, authorities in China’s resort city of Sanya introduced e-CNY ATMs so that foreign visitors could buy the digital yuan and use it during their time in China. Another initiative aims to encourage further use of the digital currency within the Chinese autonomous territory of Hong Kong. In July, the Hong Kong arm of the Bank of China rolled out a digital yuan shopping festival in Hong Kong, allowing visitors to Hong Kong from mainland China to make purchases using the digital yuan.