Hana Bank to Establish Joint Digital Asset Custody Venture with BitGo

Singaporean Regulator Proposes Framework for Digital Money UseThe Monetary Authority of Singapore (MAS) has released a White Paper that outlines proposed standards for the use of digital assets. The aim is to establish a common protocol and conditions for the utilization of these assets.While the paper identifies the potential digital assets bring in streamlining transactions and promoting financial inclusion, it also outlines challenges that need to be addressed before digital money can be successfully implemented.Photo by Pixabay on PexelsPurpose Bound Money (PBM)MAS’s White Paper, which was published on Wednesday, provides requirements to protect the use of digital assets as a medium of exchange and offers a technical overview of Purpose Bound Money (PBM). PBM allows the sender of digital money to specify certain conditions such as validity periods or how the money can be spent.The covered digital monies include central bank digital currencies (CBDCs), tokenized bank deposits, and potentially well-regulated stablecoins, excluding digital assets that it considers volatile such as Bitcoin. These digital monies are generally pegged to real-world currencies, commodities, or financial institutions, making them more stable.MAS highlights that PBMs utilize a common protocol compatible with different ledger technologies and forms of money. This protocol enables money to be directed toward a specific purpose without requiring the money itself to be programmed. It functions as a secure two-layered delivery vehicle, with funds held as collateral in a “wrapper” until specific conditions are met for its release.Standardized formatThe standardized format outlined in the White Paper will allow users to access digital money using their preferred wallet provider. By establishing these standards, the prospects for digital money to become a significant component of the future financial and payments landscape are enhanced. Standardization and regulated use of PBMs can unlock economic value, facilitate efficient and inclusive digital transactions, and provide additional consumer protection.One notable application of PBMs is in protecting online payments, such as e-commerce transactions and prepaid packages. With PBMs, advance payments can be securely held until the service is fulfilled, ensuring that the product or service is delivered before funds are released. This benefits both consumers and merchants, assuring consumers of product delivery and allowing merchants to verify payment before delivering.PBMs can also aid businesses in mitigating risks associated with international trade transactions, ensuring secure and efficient payments while reducing the potential for fraud or non-payment.InteroperabilityTo ensure the safety and usability of digital monies, MAS highlights considerations that will impact PBM implementation. Interoperability across different platforms is crucial to avoid fragmentation and excessive fees. The choice of underlying digital currencies also affects usability and value, with CBDCs, tokenized bank liabilities, and stablecoins offering varying levels of guarantees and regulatory oversight. Additionally, privacy, digital readiness, and the impact on users need to be carefully assessed.MAS acknowledges that the regulatory landscape for digital monies is still evolving globally, which may lead to varying regulatory treatment of PBMs across jurisdictions. It believes that policy considerations should be thought through when designing PBM-based solutions, including decisions regarding issuance, distribution, and conditions for use.

Gnosis Plans Crypto Visa Card Launch for Singapore and Hong KongGnosis, the Ethereum-centric decentralized infrastructure firm, is launching a Visa card in the UK and the EU, with plans for expansion to Brazil, Mexico, Singapore, and Hong Kong.Photo by Markus Winkler on UnsplashBridging the gapThe Visa card allows users to spend funds from their self-custodial wallets at any merchant accepting Visa. These products are important given that crypto doesn’t exist in a vacuum, and there’s a gap to be bridged between traditional payment methods, such as Visa, and the crypto ecosystem.Traditionally, the crypto industry has struggled with limited usability, but Gnosis wants to erase the divide between crypto and the real world. By enabling users to spend their crypto assets in traditional settings, Gnosis Card paves the way for wider adoption and showcases the potential of DeFi for society as a whole.Expanding reach to AsiaWhile initially launching in Europe, Gnosis Card has ambitious plans for expansion. The company aims to introduce its innovative payment solution to markets beyond Europe. Among the target locations are Hong Kong and Singapore, known for their progressive approach to fintech and in particular, to crypto. By entering these dynamic markets, Gnosis seeks to tap into the growing demand for self-custodial crypto spending options in the Asian region and further empower individuals to utilize their digital assets in everyday transactions.Collaborations for seamless integrationGnosis has partnered with Monerium, the provider of the regulated euro-denominated stablecoin EURe, to facilitate the seamless conversion between traditional currencies and cryptocurrencies. Monerium allows users to connect their wallets to an International Bank Account Number (IBAN), ensuring smooth transactions and interoperability.Additionally, Gnosis Pay, a suite of developer tools, will enable other wallets to issue their own customized payment cards. This collaboration with Fractal, a decentralized identity startup, ensures a smooth know-your-customer (KYC) process. By leveraging strategic partnerships, Gnosis is attempting to create an integrated ecosystem that combines the best of both traditional finance and blockchain technology.Simplifying compliance and securityTo address compliance and security concerns, Gnosis Pay utilizes the Safe smart contract wallet infrastructure. Each user has a Safe account on the Layer 1 chain of Gnosis and another on the Layer 2 Ethereum scaling solution, zkEVM, developed by Polygon.This dual-layer architecture ensures compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations while providing instant payment processing through the Visa network. Gnosis Pay’s partnerships enable effective screening for fraudulent activities and ensure data privacy compliance, empowering users with control over their personal information.With the launch of the Gnosis Card, Gnosis is likely to change the way individuals spend digital assets held within their self-custodial wallets in the real world. Additionally, by expanding to Hong Kong and Singapore, Gnosis Card is set to make a significant impact in vibrant Asian markets.Through strategic collaborations and a user-centric approach, the company is driving the adoption of cryptocurrencies, promoting financial inclusion, and accelerating the integration of blockchain technology with traditional finance.

Monex Group, a well-known securities broker in Japan’s financial services sector, is delving further into the digital currency space through the acquisition of a majority stake in 3iQ Digital Holdings, a Canadian crypto asset management company. Whilst the acquisition was announced via a joint press release on Thursday, the specific details of the deal were not disclosed.Photo by sebastiaan stam on UnsplashAchieving growth through cryptoYuko Seimei, the CEO of Monex Group, emphasized the long-term strategy of strengthening their asset management business. By incorporating 3iQ into their portfolio, the aim is to achieve substantial growth by catering to the evolving crypto asset management needs of institutional investors and crypto exchanges globally. Monex Group is already a key player in the Japanese crypto landscape, owning the Coincheck exchange. Coincheck is one of the largest cryptocurrency exchanges in Japan. It has regained market dominance after a cyber attack resulting in the theft of $534 million in digital assets in 2018. Monex collaborated with Japanese telecommunications firm NTT DOCOMO in October, forming Monex Securities as a holding company containing Coincheck, while selling NTT DOCOMO a 49% stake. ETF focusThe acquisition of 3iQ marks Monex’s strategic move to extend its exposure to the North American crypto industry. This adds to the conglomerate’s existing presence in the United States through the ownership and operation of TradeStation, an American brokerage firm. 3iQ, operating under a Canadian license, has come to prominence in the crypto-sphere for launching two exchange-traded funds (ETFs) in Canada. Notably, it introduced Bitcoin and Ethereum ETFs on the Toronto Stock Exchange, showcasing innovation in a region where regulatory approval is awaited by U.S.-based companies. Spot bitcoin ETFs have been hotly tipped to offer the next form of crypto adoption, potentially facilitating the in-flow of massive amounts of money currently within the domain of traditional finance. While the focus has been largely on the United States in that regard, other centers such as Hong Kong are similarly gearing up towards offering spot ETF crypto products to both institutions and retail investors. Amid that background, this acquisition by Monex didn’t go unnoticed by ETF sector professionals. Bloomberg Intelligence ETF Research Analyst James Seyffart took to social media platform X on Thursday to draw attention to the deal. Frederick Pye, the Chairman and CEO of 3iQ, expressed enthusiasm about joining forces with Monex Group. With Monex already owning Coincheck, a crypto exchange powerhouse in Japan, Pye highlighted the potential synergy. The collaboration is seen as an opportunity to enhance Coincheck’s offerings, particularly for institutional investors. Pye characterized the partnership as a groundbreaking collaboration that promises to reshape the crypto industry. Monex’s acquisition of 3iQ is aligned with its broader vision of being a key player in the global crypto asset management landscape. The move not only expands their reach into North America but also positions them to capitalize on the growing demands of institutional investors in the evolving digital currency market.