Thai Central Bank Collaborates With Singapore’s 2C2P on CBDC Pilot

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.

GSR Gets on Path Towards Full Regulatory Approval in SingaporeGSR Markets Pte. Ltd., the Singaporean subsidiary of the global crypto trading firm GSR, has reached a significant milestone in its quest to become a fully licensed entity within the city-state. On Monday, the Monetary Authority of Singapore (MAS) granted GSR in-principle approval for a Major Payment Institution (MPI) license.Photo by Mike Enerio on UnsplashTrading licenses filtering throughThis development mirrors similar approvals granted to other crypto firms in the region, solidifying Singapore’s status as a hub for crypto and Web3 innovations. The approval of GSR’s MPI license follows hot on the heels of Coinbase Singapore’s announcement of securing a full Major Payment Institution license from MAS.Other companies such as Circle, Blockchain.com, and Crypto.com have also obtained MPI licenses this year. These developments underscore the competitive yet regulated landscape of the cryptocurrency market in Singapore.In-principle approvalThe in-principle approval from MAS empowers GSR to provide crypto and fiat-related services to Singaporean residents and entities. This includes the ability to conduct payment services without the limitations of single transaction thresholds (SGD 3 million) and monthly limits (SGD 6 million). GSR’s CEO, Jakob Palmstierna, expressed gratitude for MAS’s constructive oversight, which has played a pivotal role in shaping the evolving digital asset landscape in Singapore. Palmstierna stated:“We are immensely grateful to MAS for their constructive oversight, which helps shape a growing digital asset ecosystem that we feel proud to be a substantial part of.”Meanwhile, GSR’s COO Xin Song, emphasized the importance of this approval, stating that it enables them to “deepen our local client partnerships and continue in our critical role as a liquidity provider within the ecosystem.”GSR’s presence in Singapore aligns with the country’s burgeoning crypto-friendly environment. Recent surveys indicate that 25% of Singaporeans view cryptocurrency as the future of finance, with 32% having some involvement in crypto ownership. Moreover, Singapore boasts over 700 Web3 companies, positioning itself as a pivotal market for the expansion of the crypto and Web3 economy.Company ambitionsGSR, established in 2013 in New Jersey, offers a diverse range of services, including over-the-counter crypto trading, derivatives trading, market making, and venture capital investments. The firm is no stranger to regulatory compliance, holding Money Service Business licenses across several US states.The company was founded by former Goldman Sachs Executives Rich Rosenblum and Cristian Gil. At the height of the last crypto bull run, the crypto market maker had plans “to add 100 hires every six months for the next few years.” No doubt that ambition has been scaled back since then, given the protracted bear market which has followed.Last month, Gil became embroiled in a spat with Andrei Grachev of rival market making firm, Singapore-based DWF Labs.GSR’s recent attainment of in-principle approval for a Major Payment Institution license from MAS reinforces Singapore’s position as a leader in the crypto space. The firm’s interest in pursuing a compliant route forward and its role as a liquidity provider bode well for both GSR and the broader crypto community in the Asia-Pacific region.

Huobi Aims for Hong Kong License Within 6–12 MonthsAccording to Justin Sun, the founder of layer one blockchain Tron and advisor to Huobi, the cryptocurrency exchange could have obtained a crypto trading license in Hong Kong by the end of the year.Photo by Pixabay on PexelsApplication submissionIn an interview with CoinDesk TV on Friday, Sun revealed that Huobi recently submitted an application to become a virtual asset service provider (VASP) in Hong Kong. While the approval process typically takes up to 18 months, Sun expressed optimism that a decision could be reached within the next six to twelve months.A legacy Chinese cryptocurrency exchange was driven out of the country a few years ago following the implementation of a crypto trading ban, and is now a Seychelles-headquartered company which currently has offices in Singapore, Japan, South Korea, and the United Kingdom.It had been previously understood that at least 10 companies with Chinese founders, including OKX, Bybit, and Huobi, had either announced or were known to be planning to announce their bid for licenses in Hong Kong. Sun’s comments today add clarity to the matter.Sun highlighted that during this grace period, which spans the next 18 months, the specific details of regulations will be developed. This includes guidelines on compliance with customer withdrawals and anti-money laundering requirements. He further explained that with the approval, Huobi Hong Kong will be able to operate, onboard customers, establish banking relationships, and serve its user base effectively.In a strategic move, Huobi relocated its headquarters from Singapore to Hong Kong, driven by the city’s aspirations to become a leading virtual asset hub as early as this summer. The exchange’s decision to establish a presence in Hong Kong positions it favorably to leverage the emerging opportunities in the region.Expectations of more applicantsWhile it’s not entirely clear who else has applied, Sun speculated that five to six other major players could follow suit. Among the potential contenders mentioned were OKX, Gate.io, Bitget, and ByBit. This suggests a potential wave of interest in Hong Kong as a regulatory-friendly jurisdiction for virtual asset trading.When asked about Huobi’s plans to enter the Canadian market and compete with established players like Coinbase and Kraken, Sun made it clear that Huobi has no immediate intentions to operate in Canada. He emphasized the importance of prioritizing friendly jurisdictions, with a specific focus on regions like the Caribbean, Hong Kong, and Japan.Hong Kong’s regulatory approach towards cryptocurrencies and virtual asset service providers has gained attention in recent months. The city’s commitment to establishing a robust framework for digital asset trading and ensuring compliance with international standards has drawn interest from industry players seeking regulatory clarity and stability.As Huobi progresses through the application process and awaits a decision on its VASP license, the outcome will have significant implications not only for the exchange itself but also for the broader crypto ecosystem in Hong Kong. The successful acquisition of a license by Huobi could set a positive precedent, attracting more exchanges to establish a presence in the region and further solidifying Hong Kong’s position as a leading virtual asset hub in Asia.The developments in Hong Kong’s regulatory landscape will be closely monitored by industry participants as they shape the future of virtual asset trading in the city.