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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 Hungaryâs finance ministry has indicated that it is exploring the regulation of cryptocurrencies, however, also stated that virtual currencies are not recognized as legal tender.
Also Read:Â Report: North Korea to Hold a Crypto Conference
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 âallow financial institutions and corporate investors to carry out simultaneous exchange and final settlement of tokenized digital currencies and securities assets.â The venture is intended to âimprov[e] operational efficiency and reducing settlement risks.â
According to a press release, major financial companies Anquan, Deloitte, and Nasdaq have been appointed as âtechnology partnersâ for the project. The project is expected to deliver a report examining âthe 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 investorsâ by November.
The head of technology at Singapore Exchange and chair of the project, Tinku Gupta, stated: âThis initiative will deploy blockchain technology to efficiently link up funds transfer and securities transfer, eliminating both buyersâ and sellersâ risk in the DvP process. This is a collaborative innovation bringing together multiple players to pursue real-world opportunities that will benefit the ecosystem.â
Sopnendu Mohanty, the chief fintech officer of MAS, said: âBlockchain 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.â
Chinese Authorities Warn Against Illicit Crypto Crowdfunding
A statement composed by Chinaâs 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 âlawless entitiesâ seeking to raise funds âusing the banner of âfinancial innovationâ and âblockchainâ in exchange for âso-called âvirtual currency,â âvirtual assetsâ and âdigital assetsâ,â asserting that âSuch activities are not really based on blockchain technology, but rather the practice of speculative blockchain concepts for illegal fundraising, pyramid schemes, and fraud.â
The statement also emphasizes that citizens be skeptical and ârationalâ in their assessment of claims made by cryptocurrency companies seeking to lure investment through âair dropsâ 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 countryâs finance ministry.
The finance ministry also indicated that it is exploring regulatory frameworks for cryptocurrencies, with a statement reading: âHungary 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.â
Do you think that tokenized securities will become embedded into mainstream financial processes? Share your thoughts in the comments section below!
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