In recent regulatory news, Chinese authorities have issued a warning seeking to encourage citizens to be skeptical regarding the promotional claims of illegal fundraising schemes operating with cryptocurrencies, Singapore Exchange and the Monetary Authority of Singapore have partnered with Anquan, Deloitte, and Nasdaq to settle tokenized securities using distributed ledger technology, and Hungary’s finance ministry has indicated that it is exploring the regulation of cryptocurrencies, however, also stated that virtual currencies are not recognized as legal tender.
Singapore Partners With Anquan, Deloitte, and Nasdaq to Settle Tokenized Securities via DLT
The Monetary Authority of Singapore (MAS) and Singapore Exchange have announced a partnership that will “allow financial institutions and corporate investors to carry out simultaneous exchange and final settlement of tokenized digital currencies and securities assets.” The venture is intended to “improv[e] operational efficiency and reducing settlement risks.”
According to a press release, major financial companies Anquan, Deloitte, and Nasdaq have been appointed as “technology partners” for the project. The project is expected to deliver a report examining “the potential of automating [Delivery versus Payment (DvP)] settlement processes with Smart Contracts and identify key design considerations to ensure resilient operations and enhanced protection for investors” by November.
The head of technology at Singapore Exchange and chair of the project, Tinku Gupta, stated: “This initiative will deploy blockchain technology to efficiently link up funds transfer and securities transfer, eliminating both buyers’ and sellers’ risk in the DvP process. This is a collaborative innovation bringing together multiple players to pursue real-world opportunities that will benefit the ecosystem.”
Sopnendu Mohanty, the chief fintech officer of MAS, said: “Blockchain technology is radically transforming how financial transactions are performed today, and the ability to transact seamlessly across blockchains will open up a world of new business opportunities. The involvement of three prominent technology partners highlights the commercial interest in making this a reality. We expect to see further growth in this space as FinTechs leverage on the strong pool of talent and expertise in Singapore to develop innovative blockchain applications and benefit from the new opportunities created.”
Chinese Authorities Warn Against Illicit Crypto Crowdfunding
A statement composed by China’s central bank, the Banking Regulatory Commission, the Central Network Information Office, the Ministry of Public Security, and the General Administration of Market Supervision, has sought to warn Chinese citizens of the claims made by illegal fundraising ventures operating with cryptocurrency technology.
The statement warns of “lawless entities” seeking to raise funds “using the banner of ‘financial innovation’ and ‘blockchain” in exchange for “so-called ‘virtual currency,’ ‘virtual assets’ and ‘digital assets’,” asserting that “Such activities are not really based on blockchain technology, but rather the practice of speculative blockchain concepts for illegal fundraising, pyramid schemes, and fraud.”
The statement also emphasizes that citizens be skeptical and “rational” in their assessment of claims made by cryptocurrency companies seeking to lure investment through “air drops” and celebrity endorsement.
Hungarian Finance Ministry Rejects Cryptocurrency as Legal Tender
Local Hungarian media outlet, Portfolio, has reported that bitcoin and other cryptocurrencies will not be recognized as legal tender, as per the country’s finance ministry.
The finance ministry also indicated that it is exploring regulatory frameworks for cryptocurrencies, with a statement reading: “Hungary is currently looking into regulating crypto instruments, and the central bank, the tax authority, the finance ministry and other authorities have set up a joint work group to evaluate legal, economic, law enforcement, money laundering and other aspects of cryptocurrencies with an eye to introducing more detailed regulation.”
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