Japan's Stablecoin Regulations Pose Challenges for Issuers
Japan has taken the lead in regulating stablecoins, implementing a stablecoin law in June. The regulations aim to address concerns about the assets backing stablecoins and their accessibility. Only banks, trust companies, and fund transfer services are allowed to issue stablecoins in Japan, and stablecoin issuers must establish a trust within the country to hold the assets. However, the strict regulations have made it challenging for companies to issue yen-based stablecoins due to the low interest rate for Japanese bank deposits and high compliance costs.
Bank of England Likely to Hold Rates Steady at 5.25% in November, Economists Say
According to a Reuters poll of economists, the Bank of England is expected to keep its Bank Rate at 5.25% on November 2nd, with the majority of respondents predicting no further policy tightening. While inflation remained at 6.7% in September, the highest among major advanced economies, the economists cited the impact of previous rate hikes and a lack of significant data to justify a change in policy.
Thailand Delays Implementation of “Digital Currency” Plan
Julapun Amornvivat, Deputy Minister of Finance of Thailand, stated that the government's plan to distribute a "digital currency" of 10,000 baht (approximately $280) to each citizen over the age of 16 cannot be launched as originally planned before February 1, 2024. Julapun explained that more time is needed to develop a secure system, and the plan requires maximum confidentiality. Nevertheless, the plan will be launched in the first quarter of 2024.
London Police Set Up a 40-Member Professional Team to Hunt Down Cryptocurrency Criminals
In response to the increasing use of cryptocurrency in criminal activities, the Metropolitan Police in London has taken decisive action by establishing a team of 40 members dedicated to cryptocurrency investigations. Data shows that last year, cryptocurrency fraud cases in the UK increased by 41%, reaching £306 million.
Chief Commissioner of the Malaysian Anti-Corruption Commission: The Anti-Corruption Commission has discovered the use of new media for money laundering such as cryptocurrency
Dato' Sri Azam Baki, the Chief Commissioner of the Malaysian Anti-Corruption Commission, pointed out that donating to charities, hiding wealth through agents and political funding, has been identified as one of the increasingly rampant money laundering methods in the country. The Anti-Corruption Commission has also discovered new mediums for money laundering, including the use of cryptocurrencies, underground transactions, cross-border financial institutions, and offshore financial services. The complexity of money laundering methods has made it more difficult and challenging for law enforcement agencies to recover funds.
The Swiss City of Lugano Launches the Bitcoin-Anchored Stablecoin “LUGA” and Announces $50 Million in Financial Support for Crypto and Blockchain Startups
Lugano (LUGA), a stablecoin anchored to Bitcoin, has been launched in the Swiss city of Lugano and can be used in over 350 merchants in the city. The city government also revealed that it will start accepting tax payments in Bitcoin from December 1.
Singapore Court Approves Financial Investigation Firm’s Use of Legal Document NFT to Mark Hacked Accounts
Singapore High Court has allowed financial investigation company Intelligent Sanctuary (iSanctuary) to attach NFTs containing legal documents to cold wallets related to a hacker incident. The NFTs will not prevent transactions with these wallets, but will serve as a warning to counterparties and exchanges that these wallets have been involved in a hacker incident.
Hong Kong Securities and Futures Commission Updates Cryptocurrency Market Regulation in Line With New Market Developments
Hong Kong Securities and Futures Commission announced plans to update its cryptocurrency sales and regulatory framework as the digital asset industry continues to develop. The revised notice issued by the regulatory agency on October 20 covers five main areas related to the cryptocurrency industry, including the distribution of virtual asset (VA)-related products, as well as the provision of cryptocurrency trading services, asset management platforms, advisory services, and implementation procedures.
FTX’s Former General Counsel: Google and BlackRock Considered Participating in FTX’s C1 Round of Financing
Can Sun, former general counsel of FTX, testified that FTX's Series C financing began in "late summer and autumn of 2022." An electronic spreadsheet showed that 15 potential investors, including BlackRock, Google, and Apollo, were interested in participating in this round of financing, with the possibility of BlackRock and Google investing being "medium." Both companies conducted due diligence on FTX before it went bankrupt.
The Hong Kong Monetary Authority established a central bank digital currency expert group and cooperated with 5 local universities
Hong Kong Monetary Authority (HKMA) has established a central bank digital currency (CBDC) expert group today and signed a memorandum of understanding with five local universities. Scholars from the five universities will participate in the research work of the expert group, and members will participate in a personal capacity. The group also brings together experts from multiple fields related to HKMA's CBDC research, covering business, computer science, economics, finance, and law.
HKMA said that it hopes to promote cooperation and knowledge exchange with the academic community in CBDC research through the establishment of an expert group. The group will assist HKMA in researching major policy and technical issues related to CBDC, provide opinions and training on financial technology-related issues for HKMA, and hold seminars.
The five local universities participating in the expert group include Chinese University, City University, Polytechnic University, Science and Technology University, and the University of Hong Kong. HKMA said that it will consider inviting overseas university scholars to participate in the future. The expert group has begun writing two research papers, the first of which is related to the privacy issues of CBDC, and the second explores the interoperability of CBDC.
Lee Tat Chi, Deputy Chief Executive of HKMA, said that this cooperation will jointly explore the major policy and technical issues of CBDC at the wholesale and retail levels. The expert group will play an important role in assisting Hong Kong in consolidating its position in the field of CBDC research.
