Project mBridge reveals details of its workings ahead of MVP, commercial debut

October 31, 2023 Coin Telegraph

BIS

Project mBridge has put together a slick publication with lots of new information to let the world know what the hottest project in CBDC is.

The Bank for International Settlements (BIS) released a colorful and fact-filled Project mBridge update on Oct. 31. The publication combines technical and promotional discussions in a shift of tone as the project prepares to become a minimum viable project for commercial launch next year.

The update gathers a significant amount of information about the central bank digital currency (CBDC) bridge that had been scattered or completely unavailable until now. The governance structure is explained in general terms, and technical details are slipped into the text at a level of readability that makes it accessible to non-specialists.

A next envisaged stage in Project #mBridge is whether the tested platform can become a minimum viable product, with continued work on the technology, legal and governance, and welcoming new participants and use cases. Read the new report: https://t.co/dzQCxz9UYL #BISInnovationHub pic.twitter.com/4ZtHDrERK8
— Bank for International Settlements (@BIS_org) October 31, 2023

The update explains the project’s use of the Dashing consensus algorithm, which was introduced earlier this month and had previously only been announced in Chinese-language media. It describes it as:

“A Byzantine Fault Tolerance (BFT) consensus protocol that uses proofs of partial confirmation of a block validation to reduce the time needed to achieve consensus and to improve the overall protocol performance.”

The use of legal entity identifiers for Anti-Money Laundering and Countering the Financing of Terrorism is also new information.

The technical information is sandwiched in text that is, at least by the standards of central banking, blatantly promotional:

“With Project mBridge, the number of steps [in cross-border payments] can be significantly reduced by allowing direct, bilateral connectivity between the payee’s and payer’s local banks supported by interoperability with participants’ domestic payment systems.”

One of the bigger revelations in the update is a list of observer organizations in the project. Their presence was known before but never specified. There are 25 observers, which include central banks and organizations such as the International Monetary Fund and Federal Reserve Bank of New York. Eleven of them are active in the project’s sandbox. Their identities were not revealed.

*Observing members of Project mBridge. Source: BIS*

Project mBridge was initiated in 2021 by the central monetary authorities of China, Hong Kong, Thailand and the United Arab Emirates in partnership with BIS. It announced plans for its commercial launch in September. This publication calls "see[ing] if the platform tested can evolve to become a Minimum Viable Product" the project's next step.

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Singapore plans joint crypto pilots with Japan, Switzerland and UK

October 30, 2023 Coin Telegraph

Coin Telegraph

Singapore’s central bank and financial regulator is seeking closer cross-border collaboration for its asset tokenization project.

The Monetary Authority of Singapore (MAS), the country’s central bank and financial regulator, is planning to start crypto-related cooperation with some European countries and Japan.

The MAS officially announced on Oct. 30 that it is partnering with the Financial Services Agency of Japan (FSA), the Swiss Financial Market Supervisory Authority (FINMA) and the United Kingdom’s Financial Conduct Authority (FCA) to promote joint digital asset pilots. The authority specifically seeks to carry out such pilots in relation to fixed income, foreign exchange and asset management products.

The initiative builds upon Singapore’s ongoing asset tokenization project known as Project Guardian, which was launched in 2022. Under the MAS Project Guardian, Singapore’s central bank collaborated with 15 financial institutions to complete pilots on asset tokenization, which demonstrated a significant potential for transaction efficiency.

“As the pilots grow in scale and sophistication, there is a need for closer cross-border collaboration among policymakers and regulators,” the MAS wrote, adding that the regulator has therefore established a Project Guardian policymaker group comprising the FSA, the FCA and FINMA.

The group aims to initiate policy and accounting discussions and identify potential risks and legal gaps related to digital assets and tokenized solutions. The project also seeks to explore the development of common standards for the design of digital asset networks and find best practices across various jurisdictions. Other work vectors include interoperability, regulatory sandboxes and education related to the digital currency industry.

“MAS’ partnership with the FSA, the FCA and FINMA shows a strong desire among policymakers to deepen our understanding of the opportunities and risks arising from digital asset innovation,” MAS deputy managing director of markets and development, Leong Sing Chiong, said. He added:

“Through this partnership, we hope to promote the development of common standards and regulatory frameworks that can better support cross border interoperability, as well as sustainable growth of the digital asset ecosystem.”

Singapore has been actively collaborating with global financial authorities in the field of digital currency. In September 2023, Singapore MAS completed a joint test of the cross-border trading and settlement of wholesale central bank digital currencies in collaboration with the Bank for International Settlements and the central banks of France and Switzerland.

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Thailand’s KBank acquires crypto exchange business Satang

October 30, 2023 Coin Telegraph

Coin Telegraph

Thailand's second-largest lender by assets, Kasikornbank, is moving into crypto by acquiring a majority stake in the local crypto business Satang.

Thailand’s Kasikornbank, one of the largest banks in the country, is moving into the cryptocurrency industry by acquiring a majority stake in the local crypto business Satang.

Kasikornbank, also known as KBank, acquired 97% of shares in the operator of Thailand’s Satang crypto exchange, according to an announcement published on Oct. 30 on the website of the Stock Exchange of Thailand (SET).

According to Kasikornbank, the acquisition is valued at 3.7 billion Thai baht, or around $103 million. The transaction is being made through K-Bank's new subsidiary called Unita Capital, which is focused on investment in the digital asset industry, the statement notes.

Following the acquisition, Satang Corporation is set to change its name to Orbix Trade Company Limited. Kasikornbank’s crypto business will have three divisions, including the custody platform Orbix Custodian, the venture arm Orbix Invest and Orbix Technology, a blockchain technology developer.

Satang Corporation is a major cryptocurrency business in Thailand, operating a crypto exchange and other digital asset services. Satang’s founder Poramin Insom is known for launching the privacy-focused cryptocurrency Firo (FIRO), formerly known as Zcoin.

Insom took to Facebook on Oct. 30 to confirm the acquisition by Kasikornbank. “I’ve been at Satang since 2017 until now, six years have passed,” Insom said, adding:

“Currently, Satang on the trading board has already exited according to the news. And there should be an official announcement soon.”

He also mentioned that Satang’s other companies include the blockchain service platform Satang Technology and space-related Satang Space.

“I still continue to do it without being affected. So I reported here. In case Satang’s corporate customers are shocked at what the existing services will be like in the future,” Satang CEO noted.

The announcement comes shortly after KBank launched a $100 million fund targeting Web3, fintech, and artificial intelligence in September 2023. The bank is reportedly Thailand's second-largest lender by assets, following only Bangkok Bank. According to data from SET, Thai NVDR Company Limited is the largest shareholder of KBank. The Stock Exchange of Thailand owns 99.9% of NVDR’s shares.

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Thailand delays digital money handout, critics call for probe

October 23, 2023 Coin Telegraph

Coin Telegraph

Thailand’s government has delayed the launch of a planned digital money program aimed at stimulating its economy, while opposition leaders call for a probe of the scheme.

Thailand’s planned digital wallet scheme, which intends to payout 10,000 baht (~$274) to citizens over 16 years old, has been delayed, while critics call for a probe from the country’s electoral commission.

As originally reported by the Bangkok Post, Thailand’s deputy finance minister, Julapun Amornvivat, announced that the planned February 2024 launch of a new digital wallet has been delayed to buy more time for the development of the system.

The Thai government hopes to use the wallet to issue 10,000 baht to eligible citizens in a bid to stimulate the local economy.

A statement from Amornvivat highlighted that the government wants more time to ensure the security of the system underpinning the digital grant wallet while reaffirming that its launch will still take place in the first quarter of 2024.

According to reports from the country, the sub-committee responsible for the program is still deliberating over the source of the funds for the scheme. The Pheu Thai Party’s digital wallet scheme is estimated to cost 548 billion baht ($15 billion).

The government previously projected the initiative to stimulate economic growth by 5% next year, while Amornvivat also suggested that tax revenue from increased economic activity would help fund part of the cost of the program.

Former Thai Senator Rosana Tositrakul is a vocal skeptic of the project and has since requested the election commission probe the legality of the proposed scheme.

With the Thai government considering using its national budget to fund the digital handout, questions over a lack of funding and the potential of raising debt to pay for the initiative have led to Tositrakul questioning the legality of the scheme.

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mBridge CBDC project preparing for new members, launch of minimum viable product

September 25, 2023 Coin Telegraph

BIS

The project now includes central and commercial banks of China, Hong Kong, Thailand and the UAE. Future new members were not identified.

Project mBridge may soon see significant expansion, according to Hong Kong Monetary Authority (HKMA) CEO Eddie Yue. He outlined the plans for the central bank digital currency (CBDC) project in a speech in Shanghai.

Yue said tests have shown mBridge to provide faster, cheaper and more transparent cross-border payments. The project was initiated in 2021 with the participation of the HKMA, and the central banks of China, Thailand and the United Arab Emirates, as well as commercial banks from each of those jurisdictions and the Bank for International Settlements Innovation Hub (BISIH).

Now mBridge will expand and be commercialized. Yue said:

“We are expecting to welcome more fellow central banks to join this open platform. And very soon we will launch what we call a minimum viable product, with the aim of paving the way for the gradual commercialisation of mBridge.”

Central banking officials connected with the project have said previously that a central bank does not have to have its own CBDC to participate in it. All of the current participants have CBDCs at the stage of pilot projects. The only countries that have launched CBDCs are the Bahamas, Jamaica and Nigeria, according to the website cbdctracker.org.

mBridge’s progress has already been noticed in the United States Congress. Ranking member of the House Financial Services Committee Maxine Waters expressed her concern during the markup of Representative Tom Emmer’s CBDC Anti-Surveillance State Act on Sept. 20 that the project could be leveraged to evade economic sanctions. The key to effective sanctions evasion by CBDCs is adoption, experts say.

*Commercial banks participating in Project mBridge. Source: BISIH*

mBridge is the only international CBDC project China has taken part in. Its digital yuan is by far the world’s largest CBDC pilot, and the People’s Bank of China has made several deals with international companies and commercial banks to further the adoption of the digital yuan. Thus, BNP Paribas China and DBS Bank China have made integrations with the digital yuan available to their corporate clients in 2023.

Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority, was appointed to a key post at the Bank for International Settlements, a top international financial institution backed by most of the world’s central bank https://t.co/ZY7a78gFBL
— Caixin Global (@caixin) September 14, 2023

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Thailand to start taxing overseas income next year, including from crypto

September 19, 2023 Coin Telegraph

Coin Telegraph

Any person who resides in Thailand for up to 180 days, would be subject to personal income tax on foreign assets, including crypto.

Thailand’s Revenue Department is planning to impose personal income tax on the foreign revenues, including those made from crypto trading, of any person who resides in Thailand for more than 180 days.

According to the Sept 19 report from the Bangkok Post, the new rule will take effect on Jan. 1, 2024, with the first tax forms, including overseas income to be delivered in 2025.

Under the previous regulation, only the foreign income, remitted to Thailand in the year of earning, was taxed. The new rule closes this loophole and will oblige an individual to declare any income, earned overseas, even if it wasn't going to be used in the local economy. A Finance Ministry official explained this logic to journalists:

“The principle of tax is that you must pay tax on income you earn from abroad no matter how you earn it and regardless of the tax year in which the money is earned”.

According to other Bangkok Post sources, the policy specifically targets residents trading in foreign stock markets through foreign brokerages, cryptocurrency traders, and Thais with offshore accounts.

In July, Thailand’s Securities and Exchange Commission (SEC) obliged digital asset service providers to offer adequate warnings highlighting risks associated with cryptocurrency trading. It has also prohibited any forms of crypto lending services.

However, the trend for tight scrutiny over the crypto industry might change with the recent election of the new prime minister. Real estate tycoon Srettha Thavisin, elected to lead the Thai parliament, participated in a $225 million raise for a crypto-friendly investment management firm XSpring Capital and even issued its own token through XSpring in 2022.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

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Second-largest Thai bank creates $100-million AI fund

September 14, 2023 Coin Telegraph

Second-largest Thai bank creates 0-million AI fund

Banks

The fund, named KXVC, will target AI, Web3, and Deep Tech startups with a focus on the Asia-Pacific region.

According to the press release published on Sept. 13, the fund will possess a $100 million investment budget with Krating Poonpol, a Chairman of KBank Business Technology Group, in charge of the enterprise. In Poonpol’s words:

Kasikornbank, or KBank, one of Thailand’s largest private banks, launched a flagship fund to invest in artificial intelligence (AI). The fund, named KXVC, will target AI, Web3, and Deep Tech startups with a focus on the Asia-Pacific (APAC) region.

“KXVC will be a stepping stone for global founders to drive their business expansion in APAC with strong synergy with KBank and our partners.”

More precisely, KXVC is going to invest in consumer-focused AI, cybersecurity, AI/ML tools such as deployment platforms, data annotation and model optimization, and problem-specific AI startups. Within Web3, its investments will aim at Web3 infrastructures, nodes validators, RPC providers, middlewares, modularity technologies, privacy, ZKP, wallets, alternative L1/L2s, shared securities, LsdFi and consumerization of NFTs.

The fund plans to invest in over 30 startups and funds globally with geographic focuses in the United States, European Union, Israel, and APAC.

Kbank is not new when it comes to the digital economy. In 2021, it began experimenting with decentralized finance (DeFi) services as part of its business expansion plan. And back in 2018, the bank joined Visa’s blockchain-based B2B solution for cross-border payment transactions.

Kbank is the second-largest bank in Thailand in assets evaluation. By 2023, it was holding 3.6 trillion Thai Bhat, which is roughly $100 billion.

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Thai authorities arrest five in 3,200-victim, $27M crypto scam

September 11, 2023 Coin Telegraph

Authorities

Victims lost over $27 million worth of Thai bhat after investing in a fraudulent cryptocurrency investment platform.

Authorities in Thailand arrested five foreign nationals linked with a fraudulent cryptocurrency investment platform that fleeced over $27 million from local investors.

According to an initial report from the Bangkok Post, Thailand’s Cyber Crime Investigation (CCIB) Bureau arrested four individuals from China and one from Laos for orchestrating a fraudulent investment scheme that duped more than 3,200 locals.

The CCIB began investing the operation after affected investors came forward in late 2022, claiming that they had lost investments made through bchgloballtd.com with the assistance of the United States Homeland Security Investigations and other international law enforcement agencies.

The five accused were arrested and charged for colluding to commit transnational crime, public fraud and money laundering.

The Office of the Attorney General in Thailand moved to prosecute the suspects in August 2022, before the anti-money laundering office confiscated 585 million baht worth of personal property from the accused.

CCIB spokesperson Kissana Phathanacharoen said that investment schemes continue to cause the most financial damage of scams reported in the country. Victims are said to invest life savings into the schemes or take out finance on homes or property.

Thailand’s Securities and Exchange Commission issued new requirements in Jan. 2023 for virtual asset service providers in the country aimed at increasing investor protecting and safeguarding user funds held by custody providers.

As a recent Cointelegraph report uncovered, scammers have gone as far as targeting MetaMask users using government-owned website URLs to trick victims and access their crypto wallet holdings.

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