Hong Kong criminalizing promotion of unlicensed stablecoins

Crypto.com Scores MPI License in SingaporeIn a significant move for the Web3 industry, the Monetary Authority of Singapore (MAS) has granted online crypto trading platform, Crypto.com, a Major Payment Institution (MPI) license. This regulatory development showcases Singapore’s commitment to welcoming innovation and embracing the potential of the Web3 sector.Photo by Timo Volz on PexelsLicensing milestoneCrypto.com made the exciting announcement on Thursday, revealing that it has received the MPI license from the MAS, the country’s central bank and financial regulator. With this license in hand, Crypto.com can now provide its Digital Payment Token (DPT) services to residents of Singapore.This achievement follows the in-principle approvals granted to Crypto.com by the MAS in June of the previous year, further highlighting the company’s adherence to regulatory standards and its dedication to operating within the guidelines set by financial authorities.Community reactionThe news of the license has garnered positive reactions within the crypto community. Many members see the Singaporean government’s decision as a significant endorsement of the Web3 industry. ‘Aravind,’ a Twitter user, expressed this sentiment, stating, “Singapore government giving out a license is itself a massive plus for the Web3 Industry,” adding that it's probable the process to obtain the license has been hard fought, and likely two years in the making.Interestingly, another community member drew comparisons between Crypto.com’s successes and the challenges faced by global crypto exchange, Binance. While Binance has encountered difficulties in various jurisdictions, Crypto.com has been praised for its steady progress and forward-looking approach.Yet another Twitter user chimed in along similar lines, stating: “Whilst Binance seems to be losing ground, Crypto.com seems to be slowly doing things right and building for the future.”Binance has recently faced setbacks, such as its diminishing presence in the Australian and Canadian markets and trading restrictions imposed in certain European countries. Reports have even surfaced suggesting that Binance plans to lay off 20% of its staff in June.However, it’s important to note that Binance has not given up, as evidenced by its recent expansion into Thailand, where it established a regulatory-compliant platform. The exchange has also taken steps to ensure compliance in Japan through the creation of another regulatory-compliant platform.Additional licensesCrypto.com has set up its headquarters in Singapore, and it is in good company there with leading crypto firms Kraken and Coinbase also maintaining offices in the city state. The company has taken a truly global strategy, having marketed heavily in recent years. It maintains offices in nine other locations, including Miami, Dublin, London, Seoul, Malta, Sofia, Hong Kong and Shenzhen, as well as Kadıköy in Turkey.The crypto trading platform has received a Minimal Viable Product (MVP) preparatory license from the Virtual Assets Regulatory Authority (VARA) in Dubai, alongside firms like Komainu, Hex Trust, and GC Exchange. The company has also successfully pursued digital asset licensing in France, Australia, and the United Kingdom.Crypto.com’s acquisition of the MPI license in Singapore marks a significant milestone for the company and the broader Web3 industry. With Singapore embracing innovation and offering a favorable regulatory environment, Crypto.com is well-positioned to continue its growth and contribute to the advancement of the digital payment token ecosystem.

Korea unveils detailed plan for retail CBDC transaction pilot with 100K participantsThe Bank of Korea (BOK), Financial Services Commission (FSC) and Financial Supervisory Service (FSS) jointly announced on Thursday (local time) their comprehensive plan to pilot a central bank digital currency (CBDC). This pilot program will concentrate on two key areas: retail transactions and technical experiments within simulated environments.For the retail transaction aspect, the test aims to give citizens direct experience in using the new digital currency, helping them understand its advantages. This practical approach will promote public familiarity with the CBDC.In terms of technical experiments, these will be conducted in partnership with various banks. The goal is to explore and develop methods for constructing a financial market infrastructure suitable for the future, leveraging the capabilities of the digital currency.Photo by Terrence Low on UnsplashRetail CBDC test to commence in Q4 2024The initiative to examine retail transactions using a CBDC is scheduled to begin in the fourth quarter of 2024. This test will focus on improving how vouchers work. Currently, the use of vouchers faces several challenges, such as high fees, complex and slow settlement procedures and the risk of fraudulent transactions. CBDC-based deposit tokens programmed with the digital voucher functionality could help solve these problems. The exploration of digital vouchers within the realm of CBDCs is not just a concern in Korea but also a topic of global interest.Banks that will participate in the CBDC retail transaction test are to be selected by the end of the third quarter of next year, following necessary procedures such as the financial regulatory sandbox policy. These selected banks will receive the green light to issue deposit tokens within this regulatory sandbox framework. They’ll be in charge of recruiting and managing test participants, which includes both individuals and merchants. Additionally, these banks will be responsible for developing digital wallets for users and handling payment transactions. On the other hand, any bank interested in joining technical experiments in simulated environments may apply to do so until mid-December this year.Citizens who want to take part in the retail transaction test for the CBDC can apply through the banks involved in the test. However, it’s important to note that since this CBDC utilization test is a limited trial, the number of participants will be limited to a maximum of 100,000.The retail transaction test for the CBDC will involve three stages: issuance, distribution and payment. Initially, banks will issue deposit tokens with digital voucher functions upon request. Users will then use these tokens to buy goods from merchants, with the transactions being settled accordingly. Before starting, the BOK, FSC and FSS will propose pilot tasks to the banks, following consultations with relevant agencies and the review of pertinent laws. Banks will also propose tasks related to the voucher function. During the test, these tokens will be used solely for digital voucher transactions, and peer-to-peer transfers won’t be allowed.Simulated environment experiments: three use casesFor technical experiments within simulated environments, the financial authorities have selected three use cases focused on examining the technical feasibility of new types of financial instruments.The first objective is to collaborate with Korea Exchange, the only securities exchange operator in the country, to connect the CBDC system with a carbon credit trading simulation platform. This platform will be based on an external distributed ledger. The key objective here is to assess if the “delivery versus payment” (DvP) mechanism between carbon credits and special payment tokens can function smoothly. DvP is a settlement method that ensures the transfer of securities occurs only after the corresponding payment is made.The second objective will see collaboration with the Korea Financial Telecommunications and Clearings Institute (KFTC). In this scenario, a hypothetical issuer will release tokenized assets to the public through a public offering. To manage this, deposit tokens that match the subscription amount by investors will be temporarily frozen, preventing them from being liquidated. After the final allocation of these tokenized assets is determined, the system, using smart contracts, will automatically transfer funds equivalent only to the allocated tokenized assets.The last objective revolves around advancing the concept of a unified ledger introduced by the Bank for International Settlements (BIS). In this endeavor, the BOK aims to issue digital demo securities within the CBDC system. Following this, an experiment will be conducted where financial institutions will have the opportunity to trade these digital securities using the institutional CBDC. This trading will be executed using the DvP method.

Foblgate Strengthens Anti-Cybercrime Measures with Chainalysis SolutionsKorean crypto exchange Foblgate last Thursday announced its adoption of virtual asset data analysis solutions from blockchain data analysis firm Chainalysis, which has significantly enhanced its ability to combat illegal money laundering of virtual assets and cybercrime.“As crimes involving virtual assets continue to rise, the introduction of Chainalysis’ solutions empowers us to address a wider range of diverse and advanced virtual asset-related crimes,” said Ahn Hyun-jun, CEO of Foblgate.Photo by GuerrillaBuzz on UnsplashChainalysis’ specialized solutionsChainalysis provides data, software, services, and research to governmental agencies, exchanges, financial institutions, insurance companies, and cybersecurity firms all over the world, aiding in solving high-profile criminal cases and expanding consumer access to cryptocurrency safely.Foblgate will use two of its products, Know Your Transaction (KYT) and Reactor, to strengthen safety and security measures on its exchange platform.KYT is a cryptocurrency compliance product that combines blockchain technology, a simple interface, and a real-time application programming interface (API) to map data, monitor crypto transactions, and provide safe access to decentralized finance.Meanwhile, Reactor is an investigation software that connects cryptocurrency transactions to real-world activity. This allows users to visualize cryptocurrency flows and trace transactions across blockchains.Both solutions automatically detect patterns of potential high-risk activities then issue alerts accordingly and link numerous addresses to actual entities (individuals or organizations associated with virtual asset wallet addresses.)By integrating this technology, Foblgate can restrict deposits and withdrawals made by high-risk entities, including unregistered overseas virtual asset exchanges. It can also ensure transparency in virtual asset trading within its domain.Taking security measures a step furtherFoblegate is also taking other measures to further earn trust as a secure exchange by bolstering its countermeasures to cybercrime. Notably, it has established a partnership with GTOne, a company specializing in governance and compliance solutions including anti-money laundering (AML). Through this collaboration, it will be able to thoroughly comply with the Act on Reporting and Using Specified Financial Transaction Information.This strategic move towards innovative blockchain data analysis solutions not only underscores Foblgate’s commitment to regulatory compliance and user security but also a proactive stance against emerging challenges in the realm of virtual assets and cybercrime.