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Tag: targets

  • Hong Kong’s ZA Bank Targets Stablecoin Issuers

    Hong Kong’s ZA Bank Targets Stablecoin Issuers

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    Hong Kong’s virtual lender ZA Bank is embracing
    digital finance by engaging potential stablecoin issuers to establish fiat
    reserve accounts. This initiative marks a significant step towards integrating digital assets into the traditional banking sector in Hong Kong as the country explores listing crypto exchange-traded funds (ETFs) to enhance its presence in the sector.

    According to a report by Bloomberg, ZA Bank’s
    Alternate Chief Executive, Devon Sin, disclosed in a recent interview about the
    bank’s initiative to engage with existing and prospective stablecoin
    issuers. Sin emphasized the versatility of stablecoins,
    highlighting their potential applications in wholesale and retail markets,
    tokenization , exchange trading settlements, and cross-border remittances.

    He expressed ZA Bank’s interest in exploring use cases for stablecoins with potential issuers under the supervision of the Hong Kong Monetary Authority. Hong Kong aims to position itself as a digital asset
    hub. The city has taken significant strides in regulating the crypto sector,
    licensing its first crypto trading platforms, and exploring the listing of
    ETFs.

    Additionally, the Hong Kong Monetary Authority is in
    the process of formulating a regulatory framework for stablecoins, which
    typically maintain a 1-1 peg to fiat currency and are backed by
    cash and bond reserves. ZA Bank has reportedly facilitated over $1 billion in
    transfers from more than 100 Web 3 clients.

    Hong Kong Regulates Stablecoin Issuers

    Last year, Hong Kong introduced new regulations for
    stablecoin issuers. The proposed rules, outlined in a consultation paper by the
    Financial Services and the Treasury Bureau and the Hong Kong Monetary
    Authority, marked a significant move towards ensuring stability and security
    within the digital asset ecosystem, Finance Magnates reported.

    The consultation paper defined stablecoins as digital
    assets pegged to one or more fiat currencies, aiming to maintain a stable
    value. Under the proposed rules, stablecoin issuers actively marketing
    their fiat-referenced stablecoins to users in Hong Kong must obtain a local
    license.

    Notably, algorithmic stablecoins are not permitted in the region, a decision influenced by the collapse of the algorithmic stablecoin TerraUSD. To obtain a license in Hong Kong, stablecoin issuers must adhere to
    stringent requirements.

    They must maintain a full reserve of assets backing the stablecoins, ensuring they are at least equal to the par value. These reserves
    must be segregated, and securely stored, and regularly reported to regulators. Additionally, stablecoin issuers must establish a local presence by appointing key personnel, including a Chief Executive Officer and senior management team.

    Hong Kong’s virtual lender ZA Bank is embracing
    digital finance by engaging potential stablecoin issuers to establish fiat
    reserve accounts. This initiative marks a significant step towards integrating digital assets into the traditional banking sector in Hong Kong as the country explores listing crypto exchange-traded funds (ETFs) to enhance its presence in the sector.

    According to a report by Bloomberg, ZA Bank’s
    Alternate Chief Executive, Devon Sin, disclosed in a recent interview about the
    bank’s initiative to engage with existing and prospective stablecoin
    issuers. Sin emphasized the versatility of stablecoins,
    highlighting their potential applications in wholesale and retail markets,
    tokenization , exchange trading settlements, and cross-border remittances.

    He expressed ZA Bank’s interest in exploring use cases for stablecoins with potential issuers under the supervision of the Hong Kong Monetary Authority. Hong Kong aims to position itself as a digital asset
    hub. The city has taken significant strides in regulating the crypto sector,
    licensing its first crypto trading platforms, and exploring the listing of
    ETFs.

    Additionally, the Hong Kong Monetary Authority is in
    the process of formulating a regulatory framework for stablecoins, which
    typically maintain a 1-1 peg to fiat currency and are backed by
    cash and bond reserves. ZA Bank has reportedly facilitated over $1 billion in
    transfers from more than 100 Web 3 clients.

    Hong Kong Regulates Stablecoin Issuers

    Last year, Hong Kong introduced new regulations for
    stablecoin issuers. The proposed rules, outlined in a consultation paper by the
    Financial Services and the Treasury Bureau and the Hong Kong Monetary
    Authority, marked a significant move towards ensuring stability and security
    within the digital asset ecosystem, Finance Magnates reported.

    The consultation paper defined stablecoins as digital
    assets pegged to one or more fiat currencies, aiming to maintain a stable
    value. Under the proposed rules, stablecoin issuers actively marketing
    their fiat-referenced stablecoins to users in Hong Kong must obtain a local
    license.

    Notably, algorithmic stablecoins are not permitted in the region, a decision influenced by the collapse of the algorithmic stablecoin TerraUSD. To obtain a license in Hong Kong, stablecoin issuers must adhere to
    stringent requirements.

    They must maintain a full reserve of assets backing the stablecoins, ensuring they are at least equal to the par value. These reserves
    must be segregated, and securely stored, and regularly reported to regulators. Additionally, stablecoin issuers must establish a local presence by appointing key personnel, including a Chief Executive Officer and senior management team.



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  • Coinbase Prime Partners with Enfusion, Targets Institutional Investors

    Coinbase Prime Partners with Enfusion, Targets Institutional Investors

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    Coinbase Prime announced yesterday that the company has established a collaboration with Enfusion to offer seamless crypto trading to institutional investors. The integration, which is expected to be completed during the second quarter of 2022 (Q2 2022), will give institutions easy access to the growing market of digital assets.

    Coinbase Prime expects leading financial institutions to increase their crypto exposure in the future. The company aims to provide efficient institutional-level crypto services to its clients through the integration of innovative technologies.

    “Enfusion’s connectivity with Coinbase Prime will allow us to seamlessly manage our crypto positions alongside other assets from a single interface, streamlining our trading operations. We’re very excited to see two platforms. We rely on the everyday team up to continue improving how institutions access the crypto markets,” said Eric Peters, the CEO and CIO of One River, a leading asset management firm.

    In September 2021, Coinbase Prime announced the launch of innovative features to help clients in the management of their portfolios. Earlier this year, Coinbase acquired Routefire to expand Prime Brokerage execution.

    OEMS Enfusion

    According to Brett Tejpaul, the Head of Institutional Sales, Trading and Prime at Coinbase, the institutional interest in digital assets has increased substantially in the last 12 months.

    “By providing straight-through processing to Coinbase Prime via APIs, Enfusion is providing its clients institutional access to digital asset custody and algorithmic trading, with the potential to further our relationship in the future,” he said in a recent post.

    “We’re excited to connect to our first OEMS Enfusion, as their native multi-asset management system is a natural first choice to collaborate with on a joint institutional offering. We expect financial institutions to continue to increase their portfolio exposure to crypto, and we’re committed to offering the best tools to enable them to manage it efficiently,” Tejpaul added.

    Coinbase Prime announced yesterday that the company has established a collaboration with Enfusion to offer seamless crypto trading to institutional investors. The integration, which is expected to be completed during the second quarter of 2022 (Q2 2022), will give institutions easy access to the growing market of digital assets.

    Coinbase Prime expects leading financial institutions to increase their crypto exposure in the future. The company aims to provide efficient institutional-level crypto services to its clients through the integration of innovative technologies.

    “Enfusion’s connectivity with Coinbase Prime will allow us to seamlessly manage our crypto positions alongside other assets from a single interface, streamlining our trading operations. We’re very excited to see two platforms. We rely on the everyday team up to continue improving how institutions access the crypto markets,” said Eric Peters, the CEO and CIO of One River, a leading asset management firm.

    In September 2021, Coinbase Prime announced the launch of innovative features to help clients in the management of their portfolios. Earlier this year, Coinbase acquired Routefire to expand Prime Brokerage execution.

    OEMS Enfusion

    According to Brett Tejpaul, the Head of Institutional Sales, Trading and Prime at Coinbase, the institutional interest in digital assets has increased substantially in the last 12 months.

    “By providing straight-through processing to Coinbase Prime via APIs, Enfusion is providing its clients institutional access to digital asset custody and algorithmic trading, with the potential to further our relationship in the future,” he said in a recent post.

    “We’re excited to connect to our first OEMS Enfusion, as their native multi-asset management system is a natural first choice to collaborate with on a joint institutional offering. We expect financial institutions to continue to increase their portfolio exposure to crypto, and we’re committed to offering the best tools to enable them to manage it efficiently,” Tejpaul added.

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  • UK digital services tax targets crypto exchanges

    UK digital services tax targets crypto exchanges

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    A recent update to Her Majesty’s Revenue and Customs (HMRC) regulations has introduced a digital services tax that will be levied on cryptocurrency exchanges operating in the United Kingdom.

    Crypto exchanges in the UK will now have to pay a 2% digital services tax according to a Telegraph report. Britain’s tax authority, HMRC, does not recognize digital assets as financial instruments and therefore exchanges are not eligible for financial exemptions.

    On Nov. 28, the authority included cryptocurrency exchanges under the Treasury’s tech tax. The digital services tax on revenue was introduced in April 2020 targeting social media and search giants such as Facebook and Google.

    The latest blow to crypto exchanges is a result of the HMRC’s classification of crypto assets, as the regulator explained:

    “There are a wide variety of crypto assets, each with different characteristics. It said that because cryptocurrencies do not represent commodities, financial contracts, or money, it is unlikely that crypto-asset exchanges can benefit from the exemption for online financial marketplaces.”

    According to CryptoUK, the trade body representing the digital asset sector in Britain, the tax is unfair and is likely to be passed on to investors and traders.

    Executive Director Ian Taylor stated that treating cryptocurrencies differently to other financial instruments such as stocks or commodities is detrimental to the crypto sector.

    He added that it is another heavy blow to the industry following the arduous licensing system introduced by the Financial Conduct Authority (FCA) for exchanges. Since January, all UK-based crypto-asset companies have had to comply with AML (anti-money laundering) regulations and register with FCA.

    The regulator imposed a ban on crypto derivatives in January, and in June, the FCA warned consumers against 111 crypto firms that had yet to register with it.

    Related: UK revenue authority to target cryptocurrency tax evaders

    In April, Cointelegraph reported that HMRC was ramping up its efforts to snare crypto tax evaders and introduced explicit demands on details of digital asset holdings on self-assessment forms.

    Britain’s tax authorities reportedly demanded that several crypto asset exchanges hand over details on customers from transactions and holdings in August 2019.

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  • New decentralized stablecoin in China targets international trade

    New decentralized stablecoin in China targets international trade

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    As financial authorities around the globe become increasingly concerned about stablecoin regulation, a jurisdiction in China is preparing to pilot a new yuan-pegged stablecoin for international trade.

    Chris Banbury, head of global operations at permissionless blockchain project Conflux, told Cointelegraph on Sept. 21 that the firm will provide its technology to launch an offshore renminbi (RMB) stablecoin pegged to China’s central bank digital currency (CBDC), the digital yuan.

    “This is going to be pegged to the digital yuan in price only with no formal integration,” Banbury noted, adding that the project will be exploring how the token trades against other currencies.

    The new stablecoin project will facilitate international trade in Shanghai’s Lin-gang Special Area after the Chinese government granted the free economic zone permission to explore free trade with an offshore RMB stablecoin in July.

    “While the use case for the offshore RMB stablecoin has been approved by the government of China and Shanghai, the pilot program is not endorsed by or connected with the government,” Banbury noted.

    In contrast to popular stablecoins like Tether (USDT) and USD Coin (USDC), the upcoming offshore RMB stablecoin will not be a private stablecoin because it is fully decentralized, Banbury said. The executive said that the new stablecoin is called the “offshore RMB stablecoin” because its functionality will be limited to global trading:

    “The term ‘offshore’ refers to the RMB’s use for international trading purposes — not domestic trading. The digital yuan is used exclusively for domestic purposes. As such, the offshore RMB is not an ‘offshore yuan.’ The digital yuan is for domestic purposes overseen by the People’s Bank of China.”

    Related: Chinese banks explore e-yuan for selling investment funds and insurance

    According to Banbury, the offshore RMB stablecoin is being held through the Shanghai ShuTu Blockchain Research Institute, a branch of the Conflux Tree-Graph Institute for blockchain research and development. The stablecoin has not yet received a dedicated ticker as the development team is still determining when to launch, he added.

    One of the world’s first nations to debut a CBDC, China has continued to crack down on cryptocurrency trading and mining, with local authorities shutting down multiple mining farms and suspending crypto trading transactions this year.