Crypto.com’s South Korea launch hit by regulatory roadblock

April 23, 2024 Coin Telegraph

Mauritius mulls wrapping metaverse into financial services

November 6, 2023 Coin Telegraph

While acknowledging the need for collaboration in reshaping the financial services to accommodate metaverse, the FSC Mauritius asked seven questions to the public.

The Financial Services Commission (FSC) of Mauritius started collecting feedback from industry stakeholders and the general public regarding the inclusion of metaverse within the financial services industry.

The FSC Mauritius dedicated the entire month of November to amass comments on the strategic developments and repercussions of the metaverse, a recent consultation paper, “Reshaping the financial services sector,” showed.

Mauritius intends “to ensure that the regulatory and business environments in Mauritius are appropriately ready and re-engineered” as metaverse adoption continues to amplify on a global scale. FSC Mauritius highlighted metaverse-centric efforts from offshore regulators from the European Commission, the UK, Dubai, Indonesia, China, South Korea and Singapore and how they have made significant efforts to accommodate the new technology.

“As the nations across different continents increasingly continue to take steps forward, a future can be anticipated whereby the metaverse will transform into a space that not only unleashes boundless imagination, but also upholds fundamental values of consumer protection and individual empowerment.”

While acknowledging the need for collaboration in reshaping the financial services to accommodate metaverse, the FSC Mauritius asked seven questions to the public, as shown below:

*FSC Mauritius asks 7 metaverse-related questions to stakeholders and the general public. Source: fscmauritius.org*

Respondents are expected to share their opinions on the relevant questions by Nov. 30. The comments and feedback will be considered to establish a multidisciplinary working group to further address the future policy and regulatory orientations in relation to the metaverse.

Mauritius is also expected to launch the pilot phase of a digital rupee in November 2023. However, an official release is still pending.

On April 28, the governor of the Bank of Mauritius, Harvesh Kumar Seegolam, said he prioritized CBDC development when he took office in 2020:

“As a central banker, I need not stress upon the determining role that CBDCs can play, not only in protecting monetary sovereignty but also in assisting central banks and regulatory authorities on the front of AML/CFT [Anti-Money Laundering/Combatting the Financing of Terrorism].”

Seegolam said the Bank of Mauritius “is contemplating” launching a digital rupee pilot phase in November.

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Crypto reshapes the American dream for younger generations: Report

October 26, 2023 Coin Telegraph

Coin Telegraph

Young Americans are actively exploring fresh economic prospects independent of an obsolete financial system supported by sluggish institutions, according to a Coinbase report.

A new Coinbase report on the state of crypto has revealed the disillusionment of younger generations (Gen Z and Millennials) with the traditional American dream and the financial system. It shows young Americans are more open than older generations to unconventional paths to financial independence, such as crypto, than older generations.

According to the report, young people find the American dream less achievable, partly due to high housing costs, inflation and an outdated financial system. Instead of following conventional paths, they are actively building new models of work, ownership and finance that are more flexible and don’t rely on legacy intermediaries.

Younger generations are actively exploring fresh economic prospects. They are establishing the groundwork for a modernized system and a rejuvenated version of the American dream, empowered by technologies like cryptocurrency as a means to modernize the system, according to the report.

*Screenshot of Coinbase’s Q3 report. Source: Coinbase*

Per the report, almost 38% of younger generations see crypto and blockchain as offering economic opportunities beyond traditional finance vs. 26% of older individuals, with 31% owning cryptocurrency vs. just 12% of older people holding digital assets. At 16%, younger people express more interest in crypto as a global currency vs. 10% among older individuals. Around 38% anticipate cryptocurrency as the future of finance vs. 28% among older generations.

Young people do not just own crypto; they study it at school, recognizing its job potential. They also want to vote for forward-thinking candidates in 2024, and with Millennials and Gen Z forming around 40% of today’s voting-age population, they will become the majority of voting-age Americans by 2028, according to Brookings Research.

According to the report, 51% are willing to support candidates favorable to crypto in the 2024 elections. Additionally, 39% believe politicians and policymakers should endorse technologies like cryptocurrency and blockchain to benefit future generations, in contrast to the 28% of older Americans who share this view.

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Microsoft, Goldman Sachs, others partner in new blockchain network

May 9, 2023 Coin Telegraph

Coin Telegraph

The Canton blockchain network for financial institutions is being launched by Digital Asset and a group of firms, including Microsoft, Goldman and Deloitte.

A new blockchain network aimed at financial institutions is in the works from a conglomerate of participants in the finance and tech space, including the likes of Microsoft and Goldman Sachs.

According to the announcement on May 9, the Canton Network will be a privacy-enabled interoperable blockchain network aimed at those working with institutional assets. It will allow the synchronization of financial markets that were “previously siloed.”

The network will begin testing its capabilities in July, which include extensive privacy controls and the ability to achieve the scale and performance needed by major financial institutions. Participants in the network currently include BNP Paribas, Cboe Global Markets, Digital Asset, Paxos, Microsoft, Goldman Sachs, Deloitte and others.

Cathy Clay, the executive vice president at Cboe Global Markets - one of the partners in the project- said that when leveraged, blockchain technology can potentially “unlock” new opportunities in the market.

“...the tokenization of real-world assets may offer an unprecedented opportunity to create new market infrastructure and drive efficiency in the trading of products across the globe.”

Canton is built on Daml, the smart-contract language of Digital Asset, which creates an interoperable system where “assets, data, and cash” can synchronize across linked applications.

As the crypto winter shows signs of thawing, investment and industry interest continue from institutional investors.

In March, Cathie Wood’s ARK Investment bought up around $18 million in Coinbase shares which equaled out to about 269,928 shares. A study from Goldman Sachs released on May 8 revealed that 32% of family offices currently have investments in digital assets.

On May 3, the securities token platform INX launched a new MPC wallet for institutional investors to control assets and employee access to such assets.

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China and Singapore team up to scale green and transition financing

April 23, 2023 Coin Telegraph

Asia

China and Singapore will collaborate “on concrete initiatives that will catalyze capital flows to support a credible and inclusive transition to a low carbon future for our countries and the region.”

Major Asian economies, China and Singapore, have set up a task force to deepen bilateral cooperation in green and transition finance. The move is aimed at facilitating greater public-private sector collaboration for a low-carbon future in the region.

The Monetary Authority of Singapore (MAS) announced the collaboration with the People’s Bank of China (PBC) in establishing the China-Singapore Green Finance Taskforce (GFTF). With GFTF, the duo aims to co-develop a set of financial standards, products, technologies and definitions to lower carbon footprints.

According to MAS’ assistant managing director and chief sustainability officer, Gillian Tan, public-private participants from China and Singapore will collaborate “on concrete initiatives that will catalyze capital flows to support a credible and inclusive transition to a low carbon future for our countries and the region.”

For starters, the GFTF will allow MAS and PBC to find a common ground for taxonomies and definitions with respect to each other’s existing transition activities. The task force will also enable the countries to strengthen sustainability bond market connectivity, which includes two-way access to green and transition bond products.

GFTF’s technology initiative will see the involvement of MetaVerse Green Exchange, a licensed crypto exchange from Singapore and Beijing Green Exchange, a Beijing municipal government-approved company, to help facilitate sustainable finance adoption. The two companies are also tasked with piloting digital green bonds with carbon credits.

Chinese banks are reportedly opening bank accounts for regulated crypto companies, with several acting as a payment layer for the crypto platforms.

While Chinese state-owned Bank of Communications is in talks to open accounts for regulated companies, ZA Bank, Hong Kong’s largest virtual bank will act as the settlement bank for the crypto companies, according to Wall Street Journal report.

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Brazil’s President Lula Urges Developing Countries to Abandon Dollar as Global Reserve Currency

April 13, 2023 Bitcoin.com

Peter Schiff blames ‘too much gov’t regulation’ for worsening financial crisis

March 19, 2023 Coin Telegraph

Banks

Finding the right balance between regulations and banking institutions is important for Schiff, considering that Puerto Rico regulators closed down Schiff’s bank due to non-compliance.

The recent fall of major banks in the United States and the need for federal intervention reignited discussions to identify the most effective ways to safeguard the crumbling economies. Comparing the episode to the financial crisis of 2008, prominent economist Peter Schiff found that increasing banking regulations contribute to the worsening financial crisis.

A deeper analysis of Silicon Valley Bank (SVB) by a group of economists revealed that nearly 190 banks in the United States are at risk of a depositor-driven collapse. It was highlighted that the monetary policies penned down by central banks could hurt long-term assets such as government bonds and mortgages, creating losses for banks.

The 2008 financial crisis was driven by the collapse of the housing market. However, Schiff believed the crisis was caused by “too much government regulation.”

When the Govt. imposed lots of new #banking regulations after the 2008 #FinancialCrisis, we were assured that what is happening right now would never happen again. But one reason we had the 2008 Financial crisis was too much Govt. regulation. That's why this crisis will be worse.
— Peter Schiff (@PeterSchiff) March 17, 2023

Schiff highlighted how the US government introduced new banking regulations after the 2008 financial crash while promising that “what is happening right now would never happen again.” He added:

“But one reason we had the 2008 Financial crisis was too much Govt. regulation. That's why this crisis will be worse.”

Finding the right balance between regulations and banking institutions is important for Schiff, considering that Puerto Rico regulators closed down Schiff’s bank not too long ago, on July 04, 2022.

Despite no evidence of crimes, Puerto Rico regulators closed my bank anyway for net capital issues, rather than allow a sale to a highly qualified buyer promising to inject capital far in excess of regulatory minimums. As a result accounts are frozen and customers may lose money.
— Peter Schiff (@PeterSchiff) July 3, 2022

At the time, Schiff was reminded by Crypto Twitter as to why millions of people around the world vouch for Bitcoin (BTC) adoption in the quest for financial freedom.

On the other end of the spectrum, crypto entrepreneurs have started to double down on Bitcoin’s epic comeback. Former Coinbase chief technology officer Balaji Srinivasan predicted that Bitcoin would reach $1 million in value within 90 days.

Sir, I believe we have ourselves a deal https://t.co/9JYaLNo9Eq
— James Medlock (@jdcmedlock) March 18, 2023

As Cointelegraph reported, pseudonymous Twitter user James Medlock and Srinivasan made the wager based on their different views of the U.S. economy's future amid ongoing uncertainty regarding the country's banking system.

Srinivasan’s bet circles around an impending crisis that will lead to the deflation of the U.S. dollar and take the BTC price to $1 million.

South Korea launches Metaverse Fund to expedite domestic initiatives

March 12, 2023 Coin Telegraph

Coin Telegraph

With the help of the Metaverse Fund, South Korea will support the mergers and acquisitions of various firms from the metaverse ecosystem.

While some global economies got distracted by the commotion around price instability and ecosystem collapses in crypto, South Korea doubled down on the potential of the metaverse as a new economic growth engine.

South Korea’s Ministry of Science and ICT announced investments into a fund dedicated to driving metaverse initiatives in the country. According to the official announcement, the South Korean government invested roughly $18.1 million (24 billion Korean won) with the goal of creating a fund of more than 40 billion Korean won (approximately $30.2 million) toward metaverse development.

With the help of the Metaverse Fund, South Korea will support the mergers and acquisitions of various firms from the metaverse ecosystem. The government sufficed this move by highlighting the rising interest of major tech companies in Metaverse.

The government agrees that considering the underlying investment risks, it is difficult for local players to raise capital through private investments. As a result, in addition to mergers and acquisitions, South Korea intends to help domestic metaverse-related companies compete with global players, adding that “we plan to actively support it.”

*Metaverse Seoul screenshots. Source: opengov.seoul.go.kr*

In January, the city of Seoul launched a digital replica of the city in the metaverse. As Cointelegraph reported, the South Korean government spent roughly 2 billion won — $1.6 million — for the first phase of the metaverse project.

However, in the physical world, South Korea continues to keep checks and balances on cross-border threats. In February, the country announced its first independent sanctions related to cryptocurrency thefts and cyberattacks against specific North Korean groups and individuals.

China announces plans for new national financial regulator

March 7, 2023 Coin Telegraph

China

The new administration will replace the current banking and insurance watchdog, which coincides with a more extensive government overhaul.

The Chinese government has plans for a governmental overhaul, according to a new announcement. This includes introducing a new national financial regulator.

On Tuesday, March 7, the government announced that its current banking and insurance watchdog, the China Banking and Insurance Regulatory Commission (CBIRC), will be abolished.

The responsibilities of this commission will be moved to a brand new administration, as will particular functions of the central bank and securities regulator. The legislature will vote on a plan for institutional reform on Friday, March 10.

When in place, the new financial regulator will “strengthen institutional supervision, supervision of behaviors and supervision of functions,” according to the plan.

Currently, the financial industry in China is under the supervision of the People’s Bank of China (PBOC), the CBIRC mentioned above, and the China Securities Regulatory Commission.

This announcement follows a call for reforms for party and state institutions in China from the country’s president Xi Jinping. These reforms will also include a bureau for sharing and developing data resources, which will partly replace the duties of the current Office of the Central Cyberspace Affairs Commission.

Although the Chinese government announced new plans for its financial sector, there was no specific mention of reforms for the crypto industry. However, in February, an ex-adviser to the PBOC called upon regulators in Beijing to reconsider its harsh ban on crypto.

In 2021, China banned nearly all crypto transactions. Nonetheless, the government has been spending millions developing its own central bank digital currency (CBDC), the digital yuan.

One of the most recent updates on the digital yuan project was the incorporation of new smart contract functionality and new use cases, including buying securities and offline payments.

On Feb. 8, China announced a new state-supported institution, the National Blockchain Technology Innovation Center, to speed up the country’s industry via blockchain technology.

Coordinated global crypto policies: G20 key financial stability priority

February 25, 2023 Coin Telegraph

Coin Telegraph

India's finance minister called for a coordinated effort “for building and understanding of the macro-financial implications,” which could be used to build global crypto reforms.

During the first G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under India’s presidency, the members were invited to discuss key financial stability and regulatory priorities, among other policy approaches. India urged member nations to build and understand the macro-financial implications of crypto assets and recommended formulating a coordinated global policy.

India’s Finance Minister, Nirmala Sitharaman, has historically supported the idea of creating crypto regulations in partnership with other jurisdictions — given the global reach of crypto assets. Under India's G20 Presidency, this narrative is now a part of mainstream discussions.

*India's Finance Minister Nirmala Sitharaman during FMCBG meeting in Bengaluru. Source: Ministry of Finance.*

During the FMCBG meeting held on Feb. 24 and 25, G20 members discussed the potential of technology innovations while emphasizing balancing associated risks. Key discussions included financial stability and regulatory priorities, policy approaches for advancing financial inclusion and productivity gains for the G20.

Union Finance Minister Smt. @nsitharaman & Shri @DasShaktikanta, Governor @RBI steered #G20 discussions in 2nd session on key financial sector and #FinancialInclusion issues during the 1st #G20 #FMCBG meeting under #G20India Presidency, in Bengaluru, today. (1/6) pic.twitter.com/bRtFmrBL9x
— Ministry of Finance (@FinMinIndia) February 24, 2023

In her closing remarks, Sitharaman welcomed support for reforms related to crypto assets. Specifically, the finance minister called for a coordinated effort “for building and understanding of the macro-financial implications,” which could be used to build global crypto reforms.

She further thanked the International Monetary Fund (IMF) for releasing a comprehensive paper on the macro-financial implications of crypto assets. On an end note, Sitharaman underlined the need for coordination among the G20 nations “to support responsible technological innovations and safeguard stability of the financial system.”

The Board of Control for Cricket in India (BCCI) recently released a 68-page advisory asking the Women’s Premier League to refrain from crypto advertising and sponsorships:

“No franchisee shall undertake a partnership or any kind of association with an entity that is in any way connected/related to an entity that is involved/operates, directly or indirectly, in the cryptocurrency sector.”

This follows a ban for the men’s cricket Premier League, introduced in 2022. Before the ban, the Indian Premier League had collaborated at least with two local crypto exchanges — CoinSwitch Kuber and CoinDCX.

Financial Systems