The Ghanaian central bank recently collaborated with the Monetary Authority of Singapore (MAS) to demonstrate the use of digital credentials in international trade. The second phase of Project DESFT culminated in the execution of cross-border trade between the West African nation and Singapore in April 2024. Ghana’s CBDC to Streamline Cross-Border Trade The Bank of […]
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Singapore Imposes New Rules for Digital Payment Token Services
Singapore’s central bank, the Monetary Authority of Singapore (MAS), has announced amendments to the Payment Services Act to impose additional requirements on digital payment token service providers and broaden the scope of regulated services. The central bank warned that entities that do not fulfill the requirements must cease the activities when the amendments come into […]
Bitcoin News
Singapore Police Warn About ‘Crypto Drainers’ Stealing Cryptocurrencies From Wallets
Singapore’s Police Force and Cyber Security Agency (CSA) have issued a joint warning about “crypto drainer” malware, which steals cryptocurrencies from wallets. As digital assets become more popular, “Cybercriminals are increasingly leveraging crypto drainers to target owners of cryptocurrency wallets,” the authorities cautioned.
Singapore Police Warn About Crypto Drainers
The Singapore Police Force and the Cyber Security Agency (CSA) of Singapore issued a joint advisory on Wednesday advising investors to protect themselves from crypto drainers. They explained:
Cybercriminals are increasingly leveraging crypto drainers to target owners of cryptocurrency wallets (‘crypto wallets’) as the use of cryptocurrencies become increasingly popular with their dollar values correspondingly increasing.
The authorities explained that a crypto drainer “is a type of malware that targets crypto wallets,” adding: “These drainers are often deployed as part of phishing attacks, where the victim is tricked into clicking a malicious link or opening a malicious attachment. By doing so, the victims are tricked into consenting to a malicious transaction that allows the drainer to steal cryptocurrencies stored in their wallets.”
The advisory also includes a list of measures crypto owners can take to safeguard themselves from the crypto drainer scam. One of the measures is:
Using a hardware wallet for enhanced security.
Other measures include being wary of “too good to be true” offers, verifying smart contract legitimacy and functions before interaction, and limiting high allowances using blockchain explorers or wallet interfaces.
Moreover, the authorities advised investors to thoroughly research projects and cryptocurrencies before linking their wallets and only make connections after verifying the project website’s validity. The advisory also notes that investors should also consider connecting a newly created or empty crypto wallet when uncertain about a project or token, and should not divulge seed phrases to anyone.
Have you come across crypto drainer malware? Let us know in the comments section below.
Singapore High Court Denies 3AC’s Bid to Dismiss Suit by Defiance Capital Founder
The High Court of Singapore has denied Three Arrows Capital’s (3AC) attempt to dismiss a lawsuit by Defiance Capital founder Cheong Jun Yoong, affirming the legal standing of digital assets in trust disputes.
Singapore Court Upholds Defiance Capital’s Suit Against 3AC in Crypto Case
The High Court of Singapore has rejected a motion by the beleaguered crypto hedge fund Three Arrows Capital (3AC) to dismiss a lawsuit filed by Cheong Jun Yoong, founder of Web3 investment firm Defiance Capital.
Cheong, also known as Arthur Cheong, filed the suit in April 2023, asserting that Defiance Capital investors were the rightful beneficial owners of assets held in trust by 3AC. He argued that these funds should not be used to satisfy creditor claims against 3AC.
The genesis of the dispute traces back to the establishment of Defiance Capital as an “independent and standalone fund” on the 3AC platform. Under the arrangement, Cheong had access to 3AC’s resources, including its middle and back office infrastructure, fund administrators, and auditors. Despite its close operational ties with 3AC, Defiance maintained separate accounts and wallets under Cheong’s control, contributing 25% of its fees to 3AC founders Su Zhu and Kyle Davies.
By May 2022, Defiance Capital’s holdings included 22.3 million USDT and .8 million in various cryptocurrencies and fiat. Although Defiance Capital was later transferred out of 3AC and restructured as two separate entities in Singapore following 3AC’s move to Dubai, certain assets were not transferred as per a prior agreement.
The High Court’s decision, made public recently, delves into the nuanced legal arguments presented by both parties. Notably, the judgment acknowledged the potential for a trust relationship to exist, despite the wording of legal documents to the contrary. This point is critical, as it suggests that the assets under Defiance’s control might be exempt from being used to settle 3AC’s debts.
The court further established that the crypto assets in question, particularly those in Fireblocks wallets under 3AC control, were in trust. This finding challenges 3AC’s stance that such claims were without merit. Additionally, the court determined Singapore as the appropriate forum for the lawsuit, given the location of the individual controlling the wallet keys and the country’s legal nexus to the case.
This ruling marks a crucial milestone in the case and offers a glimmer of hope to Defiance Capital and its investors. It also sets a precedent in the crypto legal landscape, particularly concerning the treatment of digital assets and the application of trust law.
With the lawsuit against 3AC cleared to move forward, do you think Defiance Capital will be successful? Share your thoughts and opinions about this subject in the comments section below.
Worldcoin (WLD) Gains By 10% Following Singapore Debut
Worldcoin (WLD), the brainchild of OpenAI CEO Sam Altman, has experienced a significant level of positive traction in the past month. Notably, Worldcoin gained by over 50% in mid-December to attain an all-time high of .6. Although the token soon fell from these heights trading at .35 on December 25, it appears that WLD may be gathering momentum for another bullish breakout.
Singapore Launch, Among Others Spurs Interest In Worldcoin
According to data from CoinMarketCap, Worldcoin has gained by 9.68% in the last seven days, signifying a steady rise in buying pressure from investors in the WLD market.
Using data from IntoTheBlock, popular crypto analyst Ali Martinez has given more insight into this bullish trend. On December 30, he shared via X that the number of WLD whales in possession of 10,000 to 100,000 WLD rose by 16.33% in the last week. Interestingly, this price increase and network growth occurred a few days after Worldcoin announced its expansion into the crypto-friendly nation of Singapore.
#Worldcoin | The number of #WLD whales holding between 10,000 and 100,000 $WLD has increased by 16.33% over the past week! pic.twitter.com/ps9xzcMtVd
— Ali (@ali_charts) December 30, 2023
In a blog post on December 27, the crypto project stated that it had successfully set up physical screening locations in the Asian nation allowing interested users to undergo the World ID verification process and join its growing network.
Beyond Singapore, Worldcoin also shared that it has registered an increased presence in several nations in the last month. These include Spain, Germany, Chile, and Japan. Notably, in Argentina, the crypto project recorded a national record of over 10,000 World ID verifications in a single day. Apparently, these multiple strides appear to have increased investor confidence in Worldcoin, as indicated in the price action stated above.
WLD Price Prediction
Based on recent developments surrounding Worldcoin, the token seems poised for a major boost in adoption which could translate into a price rise over the next few weeks. Aside from its expansion into new nations, the launch of the World ID 2.0 in mid-December, which introduced integrations with various Apps such as Reddit, Shopify, and Telegram, is also regarded as a positive development by the project’s growing number of users.
Interestingly, Martinez predicts that WLD could soon experience an 80% rally based on chart indicators alone. If this projection proves true, the altcoin could trade as high as .30.
However, despite all these indications, it must be noted that Worldcoin remains under heavy regulatory scrutiny in some nations due to privacy concerns in regard to user data.
Worldcoin operations have been actively suspended in Kenya and are under investigation in Germany and the United Kingdom. In fact, the crypto project recently halted its orb verification service in Brazil, France, and India although citing a “limited time access” on the screening orbs provided in these markets.
At the time of writing, WLD trades around .73 with a 3.90% gain on the last day. In tandem, The token’s daily trading volume increased by 83.12% and is valued at 7.52 million.
Hashkey Capital Singapore Secures Full Capital Markets Services License From Singapore
Reflecting Singapore’s progressive stance on digital assets, the Monetary Authority of Singapore (MAS) has awarded Hashkey Capital Singapore a full Capital Markets Services license, enabling the firm to enhance its fund management services and contribute significantly to the burgeoning blockchain community.
Hashkey Capital Singapore Elevates Its Market Presence with New CMS License from MAS
In yet another positive move for the digital assets sector in Singapore, Hashkey Capital Singapore, a subsidiary of Hong Kong-based digital asset group Hashkey, has been granted a full Capital Markets Services (CMS) license by the Monetary Authority of Singapore (MAS). This approval marks a crucial step for the firm in expanding its regulated fund management services within the region.
We’ve secured the Capital Markets Services (CMS) license from @MAS_sg!
As a licensed fund management company (LFMC), this empowers us to provide regulated fund management services in the realm of capital markets products.
@techinasia
https://t.co/WIQQ31T99J pic.twitter.com/oFrd0QbNxI
— HashKey Capital (@HashKey_Capital) December 19, 2023
Hashkey Capital Singapore, which applied for the license in late 2021, aims to leverage this opportunity to launch regulated funds and offer capital market products to local customers. The CMS license allows the firm to actively contribute to and foster progress within Singapore’s burgeoning blockchain community.
Mr. Deng Chao, CEO of Hashey Capital Singapore and Head of Hashkey Singapore, commented on the achievement, stating, “Securing the CMS license from the MAS marks a defining moment for Hashkey Capital and the vibrant Web3 landscape in Singapore. As a licensed fund management company, we are committed to contributing to the local blockchain community and playing our part in shaping its future.” He continued,
Singapore’s innovative spirit aligns with our mission, and we’re excited to propel blockchain-related capital markets products and investments further into the mainstream, offering new possibilities for institutional and accredited investors.
This development bookends a successful 2023, which started the year with Hashkey Capital’s 0 million funding round, a testament to the firm’s growth and influence in the crypto asset management space. The company’s operations in Singapore include a team of approximately 40 staff members, covering a range of services from venture capital investment and fund management to over-the-counter trading of digital assets.
Managing over US billion in client assets, the firm has invested in over 500 projects across infrastructure, tools, and applications within the blockchain and crypto domains. The achievement by Hashkey Capital Singapore comes on the heels of similar licenses granted to other firms in the region, such as Digift and SBI Digital Markets, signaling a growing regulatory embrace of digital assets in Singapore.
Is Singapore the most progressive country with respect to digital assets? Share your thoughts and opinions about this subject in the comments section below.
China and Singapore Team Up to Allow Tourists to Spend Digital Yuan
Singapore and China have teamed up on a pilot to allow tourists in both countries to spend China’s central bank digital currency, the digital yuan. “This will enhance convenience for travelers when making purchases during their overseas travel,” Singapore’s central bank described.
Tourists in China and Singpoare Can Spend Digital Yuan
Singapore’s central bank, the Monetary Authority of Singapore (MAS), announced Thursday “new digital finance and capital markets initiatives to expand its financial cooperation with China.”
One of the initiatives is a “cross-border e-CNY pilot between China and Singapore,” the MAS explained, adding that it and People’s Bank of China’s Digital Currency Institute (PBCDCI) signed a Memorandum of Understanding (MOU) on digital finance cooperation in 2020. The announcement details:
MAS and PBCDCI are embarking on a pilot that will allow travellers from both countries to use e-CNY for tourism spending in Singapore and China. This will enhance convenience for travellers when making purchases during their overseas travel.
China is at the forefront of central bank digital currency (CBDC) development, actively testing its e-CNY project. Since initiating digital yuan research, the People’s Bank of China (PBOC) has steadily expanded the pilot program’s reach. Presently, there are 26 pilot areas for digital yuan spread across China.
PBOC Governor Yi Gang disclosed in July that transactions utilizing China’s central bank digital currency reached 1.8 trillion yuan (0 billion) at the end of June. In November, Standard Chartered Bank said that it had begun offering digital yuan exchange services in China. Moreover, the Chinese central bank and the Hong Kong Monetary Authority (HKMA) have entered the second phase of integrating digital yuan for payments and cross-border transactions within Hong Kong.
What do you think about the collaboration between China and Singapore to let tourists in both countries spend digital yuan? Let us know in the comments section below.
Singapore Unveils Plan to Ensure Seamless Financial Transactions Across Digital Asset Networks
The Monetary Authority of Singapore’s managing director has outlined the central bank’s plan to ensure seamless financial transactions across digital asset networks. “Currently, there is a proliferation of digital asset networks,” the head of Singapore’s central bank said. “We cannot wish these dynamics away and force consolidation of all financial transactions onto a single network. It is more feasible to work towards making these diverse networks interoperable.”
Singapore’s Central Bank Discusses Digital Asset Plans
Ravi Menon, the managing director of Singapore’s central bank, the Monetary Authority of Singapore (MAS), discussed digital assets at Singapore Fintech Festival last week.
“Digital assets have two critical features that can fundamentally transform the nature of financial transactions,” he began. The first is tokenization allows financial assets to be exchanged without intermediaries, which “eliminates settlement risk, duplicative reconciliation, and the need for large funding accounts,” he highlighted. The second is tokenization enables “the fractionalization of assets,” making partial collateralization of assets possible.
The head of Singapore’s central bank continued:
To fully realize seamless financial transactions across digital asset networks, we must ensure they are interoperable.
“Currently, there is a proliferation of digital asset networks, due to different commercial motivations or legal and regulatory requirements,” he described, emphasizing: “We cannot wish these dynamics away and force consolidation of all financial transactions onto a single network. It is more feasible to work towards making these diverse networks interoperable.”
Menon then provided details on the central bank’s strategy to build the new financial architecture via Project Guardian. He explained, “MAS and industry partners are tokenizing different asset classes with specific desired outcomes.” Additionally, he mentioned that the International Monetary Fund (IMF) is joining the Project Guardian policymaker group. The MAS established this policymaker group in October in partnership with Japan’s Financial Services Agency (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the United Kingdom’s Financial Conduct Authority (FCA).
The central banker also discussed digital money. He explained that privately issued cryptocurrencies, central bank digital currencies (CBDCs), tokenized bank liabilities, and well-regulated stablecoins are “four contenders for digital money.” Noting that many crypto investors have “suffered significant losses,” he opined:
Cryptocurrencies have failed the test of digital money. They have performed poorly as a medium of exchange or store of value. Their prices are subject to sharp speculative swings.
“Wholesale CBDCs and tokenized bank liabilities can play the role of digital money and help to achieve atomic settlement,” stated Menon. Noting that well-regulated stablecoins can also “play a useful role as digital money,” he said the monetary authority has granted in-principle approval under the Payment Services Act to three stablecoin issuers: Straitsx SGD Issuance, Straitsx USD Issuance, and Paxos Digital Singapore.
What do you think about the statements by MAS Managing Director Ravi Menon and the central bank’s digital asset approach? Let us know in the comments section below.
Singapore Announces Global Tokenization Initiative in Partnership With BNY Mellon, DBS, JPMorgan, and MUFG
The Monetary Authority of Singapore (MAS) has announced a global tokenization initiative that seeks to allow tokenized assets to be exchanged by different financial institutions across borders. The initiative, touted by MAS officials as the evolution of Project Guardian, a series of tokenization pilots carried by the institution, has the support of banking powerhouses like BNY Mellon, DBS, JPMorgan, and MUFG.
Monetary Authority of Singapore Announces Global Layer One Tokenization Project
The Monetary Authority of Singapore (MAS) announced Global Layer One (Gl1), an initiative to integrate global tokenization activities under one interconnected network. The project, which has the involvement and support of banking behemoths like BNY Mellon, DBS, JPMorgan, and MUFG, seeks to “facilitate seamless cross-border transactions and enable tokenized assets to be traded across global liquidity pools, while meeting relevant regulatory requirements and guidelines.”
The MAS announcement also establishes that the amalgamation of public and private companies in this project will ensure that the digital structures resulting from this initiative will comply with international standards and regulations.
GL1’s network is being presented as an evolution of Project Guardian, a series of initiatives exploring the future of tokenization in financial markets.
MAS Deputy Managing Director of Markets and Development Leong Sing Chiong stated that while Project Guardian has “successfully demonstrated that tokenized financial assets such as fixed income, foreign exchange and asset management products can be traded, distributed, and settled seamlessly across borders,” there is a need for a scalable infrastructure “to fully realize the potential of tokenized markets, and achieve network effects.”
Interconnected Tokenization Networks and More Pilots
In addition, the authority also announced the concept of an Interlinked Network Model (INM), a protocol to allow financial institutions and banks to exchange and transfer tokenized assets even if they are not present in the same network. A whitepaper detailing architecture considerations and implementation advice is already available publicly.
As part of Project Guardian, the authority announced five more pilots involving different use cases with several industry giants.
Citi, T. Rowe Price Associates, Inc., and Fidelity International are testing a bilateral digital assets trade mechanism. BNY Mellon and OCBC are piloting a solution for cross-border FX payment across different networks. Ant Group is experimenting with a global liquidity management solution to allow worldwide multicurrency clearing and settlements.
Also, Franklin Templeton is exploring tokenizing money market funds using digital assets for shares. JPMorgan and Apollo are working on an asset management suite using digital assets to reduce manual processes.
What do you think about MAS’ tokenization initiatives? Tell us in the comments section below.
Singapore High Court Mandates Hodlnaut Liquidation, Sets Stage for 17,000 Customer Reimbursements
In a dramatic culmination to a turbulent period for Hodlnaut, the Singapore High Court has ordered the crypto lender’s liquidation, tasked with the daunting goal of reimbursing its 17,000 customers. The judicial decree follows Hodlnaut’s entanglement with the fallout of Terra’s decline and the company’s subsequent 3 million deficit.
Crypto Lender Hodlnaut Winds Up, Facing 3M Shortfall
The trouble for Hodlnaut surfaced after the crypto lender paused customer withdrawals in July 2022, blaming worsening market conditions for its plight. Not long after, the firm sought the court’s protection via judicial management, aiming to salvage its operations. Court filings revealed the extent of the financial abyss Hodlnaut faces, with a staggering shortfall of around 3 million, laying bare the vulnerability of crypto lenders to market volatility.
OPNX, whose founding ties to the infamous Three Arrows Capital (3AC) have cast a dubious shadow, proposed a takeover of Hodlnaut, offering million in FLEX tokens. However, Hodlnaut’s interim judicial managers criticized the offer as inadequate, given the tokens’ illiquidity. Hodlnaut was ordered to wind up on November 10, 2023, by Judge Aedit Abdullah over its insolvency.
As liquidators take the helm, Hodlnaut faces the complex task of unwinding its operations. According to a circular from EY Corporate Advisors, the process will prioritize transparency and regular updates to creditors. “Responding to all creditor queries individually may not be practicable or economical,” Aaron Loh Cheng Lee, one of the appointed liquidators from EY said. “Liquidators will instead consolidate their answers to creditor queries within their updates to all potential creditors.”
What do you think about Hodlnaut’s mandated liquidation? Share your thoughts and opinions about this subject in the comments section below.