Matrixport forecasts SEC bitcoin ETF rejection

QCP Trading, the trading arm of Singaporean crypto market maker and broker dealer QCP Group, has taken a significant step towards full licensing in Singapore, having been awarded in-principle approval (IPA) for a Major Payment Institution (MPI) license by local regulator, the Monetary Authority of Singapore (MAS). Regulated spot tradingIn a press release published by PR Newswire on behalf of QCP Trading Pte. Ltd. on Nov. 11, the company outlined further details on the receipt of the preliminary license. The company confirmed that the IPA represents an “essential step towards full licensing,” enabling it to prepare to offer regulated spot trading service facilities relative to digital payment tokens. QCP Trading is geared towards facilitating a broad range of crypto spot trading, including the trading of stablecoins and major digital asset tokens. The company offers on/off ramps into and out of cryptocurrency positions via multiple fiat currencies. Photo by Guo Xin Goh on UnsplashOperational expansionDarius Sit, founder of QCP Trading, commented on the development, stating that as the firm continues its pursuit of a full trading license, the focus remains on supporting Singapore’s reputation as a leader in digital asset regulation. Sit added that the company is proud of its “ability to remain agile and responsive to both global and local market conditions,” suggesting that this approach is the key to success in the rapidly evolving crypto sector. QCP Trading intends to continue to build a local team in Singapore and with that it is hiring in order to enable operational expansion. Melvin Deng, the company’s CEO, said that the firm is aiming “to champion robust governance frameworks,” and that its “early recognition of the critical role of regulation has proven to be a strategic foresight." Global expansionThe QCP Group appears to be pursuing a global expansion strategy as back in May, group company QCP Capital received IPA for regulated digital asset trading activities from the Financial Services Regulatory Authority (FSRA), the regulator within the Abu Dhabi Global Markets economic zone in the United Arab Emirates (UAE). In doing so, it became the first Singapore-headquartered crypto broker and market maker to receive preliminary approval within the Middle East region. At that point, QCP had 70 employees, with plans to relocate some of them to Abu Dhabi. In the lead-up to that IPA licensing award in Abu Dhabi, QCP had partnered with Further Ventures as part of its efforts in expanding into the Middle Eastern market. On Nov. 11, QCP Capital put out a warning via its Telegram channel, informing market participants that given the rise in the unit price of Bitcoin in recent days, it is necessary to be mindful of the risk of pullbacks, which will be required in order to account for the use of leverage within the market. In recent weeks, Fly Wing Technologies, a subsidiary of cryptocurrency service provider Matrixport, and the Singaporean subsidiary of American crypto exchange Gemini have received IPA approval with respect to MPI licensing in Singapore. At the beginning of September, crypto exchange OKX received full MPI approval. 

Korean Police Agency Bolsters Crypto Investigation SkillsThe Korea National Police Agency (KNPA) is escalating its efforts to improve its proficiency in probing digital asset-related crimes. As reported by Digital Today, this will be achieved by providing dedicated training to track digital assets and implementing a strategic plan to eradicate such illicit activities.Photo by Pixabay on PexelsTracking digital assetsIn a recently revealed training proposal, the KNPA outlined its intention to launch a specialized training program on tracking digital assets. The program, scheduled to begin in mid-July, will run for three months and include four distinct sessions, with a total of 120 attendees.The rising number of cases involving the illicit use of virtual assets to gain criminal proceeds has underscored the necessity for proficient tracking of these assets during investigations. As part of its commitment to strengthening its cyber investigation capabilities, the KNPA is encouraging its officers to obtain professional certifications. Last year, the agency also organized a training course focusing on tracing virtual assets.Hands-on, case-based approachThis year’s training curriculum will adopt a more hands-on, case-based approach, emphasizing practical experience. There will be two types of courses offered: specialized and advanced. They will cover a range of topics, including the fundamentals of Bitcoin, the differences between Ethereum and Bitcoin, and the concept of crypto mixing and unmixing.Chainalysis certificationsUpon completion of the specialized course, participants will be awarded a Chainalysis Reactor Certification from a reputable crypto data analysis company based in New York. Those completing the advanced courses will receive certifications such as the Chainalysis Ethereum Investigations Certification and the Chainalysis Investigation Specialist Certification.In April, the KNPA initiated a procurement procedure to acquire and install 12 units of crypto tracking software developed by Chainalysis, costing 81.67 million KRW ($61,000) per unit. This software allows for real-time monitoring of crypto address transactions, data visualization, correlation analysis, and supports the tracking of over 100 tokens, including Bitcoin and Ethereum. It also facilitates IP tracking and unmixing, a technique used to disentangle mixed cryptocurrency transactions.Strategic effortsTo further enhance its expertise in investigating virtual assets, the KNPA commissioned a study this month titled “Establishing Strategies to Eradicate Virtual Asset Crimes and Address Investigation Risks.” Through this initiative, the agency aims to examine the policy and legislative approaches adopted by other countries in combating crypto crimes, assess their applicability in Korea, and study investigative techniques and systems tailored to various virtual assets.

Amid the heightened excitement about the potential incorporation of virtual assets into the traditional financial system, the Korea Exchange (KRX), the country’s only securities exchange operator, plans to run a pilot test on central bank digital currency (CBDC) transactions using distributed ledger technology (DLT). The pilot test is scheduled in the second half of this year, as part of KRX’s effort to respond to rapidly evolving financial technologies, Yonhap Infomax reported.  The KRX is targeting the carbon trading market for this pilot test, aiming to develop a DLT-driven carbon trading system. The objective of this initiative is to check the feasibility of applying the Delivery versus Payment (DVP) to carbon credit trading facilitated by dedicated tokens. The project will be undertaken in cooperation with the Bank of Korea (BOK), with whom the KRX signed a memorandum of understanding last year to forge digital financial infrastructure. Additionally, the exchange is planning to create a cloud-based settlement and payment system for brokerage and non-brokerage firms.Photo by Marcin Jozwiak on UnsplashLG CNS, an integrated security system provider, and Koscom, a financial IT company, will supervise the CBDC pilot program. They are tasked with conducting a comprehensive assessment of the entire process, from developing the decentralized ledger payment system to assuring its quality.  Broad application of DLTA DLT system records all transactions on a peer-to-peer network and verifies them through every participant. This eliminates the need for a central authority, thereby increasing its reliability and transparency. Currently, the DLT is of particular interest to many financial institutions worldwide, including the SIX Swiss Exchange. These financial institutions are actively experimenting with CBDC to improve the security and efficiency of their DVP settlements.  In particular, the carbon credit market is experiencing a significant integration with the DLT. A KRX official said that the exchange plans to test the maturity of DLT systems and the interoperability between the BOK’s network and those of other organizations. This will evaluate DLT’s effectiveness within the carbon credit market. The person added that this pilot test aims to establish technological standards regarding the CBDC payment and blockchain network registration, which will provide a critical reference for future technical experiments in the industry.