Intella X Teams Up with Web3 Comm Protocol to Boost Game Experience

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.

Nasdaq-listed Bitcoin Depot, an American cryptocurrency ATM specialist, is expanding into Hong Kong, citing the city’s burgeoning status as a crypto hub and rapid digital asset adoption across Asia. The Atlanta-based company, which provides kiosks for converting cash into cryptocurrency, went public in July 2023. Its move into Asia follows a recent acquisition of assets from National Bitcoin ATM that boosted its domestic market share to a reported 30% as well as the strengthening of its compliance program. "Hong Kong is quickly becoming a global center for crypto, with the right mix of regulation, demand, and momentum," company president Scott Buchanan said in a Nov. 12 statement.Photo by Keller Chewning on UnsplashHong Kong's digital asset pushBitcoin Depot’s expansion aligns with a concerted push by the special administrative region to position itself as a global hub for digital assets. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), recently highlighted this ambition, which was underscored by a Nov. 11 announcement of an additional HK$10 billion ($1.3 billion) issuance of digital green bonds. The tokenized bond issuance, the third under the government's program, was denominated in Hong Kong dollars, Chinese yuan, U.S. dollars, and euros, and involved major banks like HSBC, BNP Paribas, and J.P. Morgan. The move also reflects a broader regional trend. In September, Tokyo-based Coinhub launched Japan's first officially registered crypto ATM network, installing 25 machines with plans to expand to 3,000 nationwide. Industry faces regulatory headwindsDespite the growth, the industry faces scrutiny from law enforcement over the use of crypto ATMs in criminal activity. In 2024, the FBI logged nearly 11,000 fraud complaints tied to the kiosks, with reported losses topping $246 million. According to Cointelegraph, increased regulatory attention has prompted several U.S. cities to ban crypto ATMs outright, while some states are introducing new restrictions. Concerns are growing over scams targeting vulnerable groups, especially seniors. Regulatory pressure is also mounting elsewhere. Australia's financial crimes watchdog, AUSTRAC, issued a $56,340 infringement notice last month to local operator Cryptolink, which the company paid. Cryptolink must now appoint third-party reviewers to ensure its anti-money laundering and counter-terrorism financing (AML/CTF) controls are adequate. The action followed findings from AUSTRAC’s Crypto Taskforce that 85% of transactions by the 90 most frequent crypto ATM users were linked to scam proceeds or money mule operations. AUSTRAC CEO Brendan Thomas urged the public "to be cautious of making transactions to any wallet they don’t control and thinking twice in circumstances where someone asks you to deposit money into a crypto ATM.” 

In an effort to fortify the cryptocurrency market and safeguard investors' funds, the Hong Kong Securities and Futures Commission (SFC) has introduced a minimum insurance requirement of 50% for licensed cryptocurrency exchanges handling customers' assets.Photo by Simon Zhu on UnsplashGuarding against insolvency riskThe move came to light through a statement published recently by OSL, one of Hong Kong’s licensed virtual asset trading platforms. It’s aimed at enhancing security measures, protecting users from potential security breaches or insolvency. As part of that disclosure, OSL announced a two-year partnership with Canopius, an underwriter syndicate associated with Lloyd's of London. Under this collaboration, OSL will provide insurance coverage for an impressive 95% of its users' assets, surpassing the mandated 50%. OSL emphasized its commitment to safeguarding regulated assets under custody, irrespective of the regulatory guidelines permitting virtual asset service providers (VASPs) to reduce insurance coverage to 50%. Response to recent failuresThis decision is grounded in the acknowledgment of the volatile market conditions and the series of cryptocurrency firm collapses witnessed in recent years. 2022 saw a number of high-profile crypto platform collapses, such as the demise of FTX. HashKey Exchange, another licensed crypto exchange in Hong Kong, has also proactively secured its users' assets by entering into a crypto insurance agreement with Hong Kong headquartered fintech firm OneDegree back in September. The insurer entered the digital assets space last July, expanding into the Middle East last month. OneDegree’s arrangement with HashKey offers coverage ranging from $50 million to $400 million, extending beyond standard security breaches and insolvency to include server downtime, data back-up and load management incidents, ensuring comprehensive protection. Broader regulatory effortsThe minimum insurance requirement is part of the SFC's larger strategy to regulate the cryptocurrency industry in Hong Kong. While the Chinese autonomous territory enabled cryptocurrency trading for retail investors in August, only OSL and HashKey have obtained virtual asset trading licenses. Thirteen other entities are currently in the application process, undergoing rigorous due diligence checks, including comprehensive financial audits exceeding the scope beyond proof-of-reserve systems. This insurance mandate represents a significant step toward enhancing investor confidence in the cryptocurrency market. As digital assets gain popularity, ensuring the security of customers' funds has become paramount. The SFC's proactive approach seeks to strike a balance between fostering innovation and safeguarding investors. Products are also emerging that crypto users themselves can access. UK-based CryptoShield offers insurance protection directly to users that covers potential loss of funds on crypto platforms. The cryptocurrency landscape in Hong Kong is evolving rapidly, with the SFC playing a pivotal role in shaping the regulatory environment. Regulators aim to establish a robust framework addressing potential risks and protecting market participants while embracing digital innovation. As the regulatory landscape matures, more licensed crypto exchanges in Hong Kong may be required to meet the 50% minimum insurance requirement, further strengthening security measures and making the market a safer place for investors.