Schlagwort: crypto business

The exchange will, in the next few weeks, be working to secure a Major Payment Institution license

Singapore -based crypto exchange Coinhako confirmed on Tuesday that it had received in-principal approval from the Monetary Authority of Singapore (MAS) under the Payment Services Act (PSA) to offer digital payment token (DPT) services. The approval makes Coinhako the first local non-bank exchange to get the license.

Coinhako’s Director of Corporate Development Collin Cheong applauded his team, saying it had worked so hard to ensure the business’ structure remained compliant in the years leading to this approval. He added that receiving the green light was a testament to their effort.

Consequently, Coinhako will be working leading into the next few weeks to satisfy the monetary authority’s requirements to gain a Major Payment Institution license in the country. With such authority, the exchange would be able to fully provide DPT services to its users.

Securing the coveted license is a priority for entities in the sector

The Major Payment Institution license is a requirement in the Asian country for firms seeking to transact any DPTs, including cryptocurrencies. Further, those seeking to facilitate users to exchange DPTs are also required to hold this license.

“Singapore has always been at the forefront of fintech innovation. The regulation of DPTs under the Payment Services Act is a clear indication of our nation’s readiness to nurture innovations in the digital assets and cryptocurrency space while balancing the need to protect consumer and social interests,” noted Yusho Liu, co-founder and chief executive of Coinhako.

Founded in 2014, Coinhako offers users the ability to trade in fiat-to-crypto and crypto-to-crypto. The exchange has recently seen some tremendous growth, recording a 1000% increase in the number of users in the first eight months of the year, compared to the whole of last year.  The exchange holds over 300,000 registered users, also recording 150,000 monthly active ones.

The growth that Coinhako has experienced isn’t what one would call secluded. In fact, the general Asia Pacific has generally seen quite the boom in users seeking to adopt cryptocurrencies. Findings of a recent MasterCard survey revealed that the region has 45% of consumers wanting to use crypto within the next year. This figure is 5% higher than the global average.

Other crypto-related moves Coinhako has been making

Supported by strong investors in the crypto sector, such as Boost VC and Tim Draper, Coinhako has launched a number of initiatives in the crypto sector. On October 19, the crypto exchange flagged off the Privé platform, intended to provide digital asset services to institution-grade clients and high-level markets. The exchange also recently played host to an event for Singapore’s first-ever large-scale NFT gallery.  The event, ‘Right Click + Save’, saw international interest attracting several parties.

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The Parliamentary Standing Committee wants government officials to appear before it to address existing concerns

In a meeting that was the first of its kind, the Parliamentary Standing Committee on Finance led by Bharatiya Janata Party (BJP) MP Jayanth Sinha came to a consensus on Monday that cryptocurrencies in India cannot be stopped and should instead be regulated. The meeting was attended by professionals from the Blockchain and Crypto Assets Council (BACC), reps from top crypto exchanges, Indian Institute of Management Ahmedabad, among others.

„There was overall consensus among MPs that there should be regulation instead of banning it. Now there are two ways of looking at it. Either 90 per cent of it is banned, and 10 per cent is allowed or vice versa. That’s the trade-off discussion which has been pending. And for that, we have to go point-by-point,“ a source told Financial Express.

Uncertainties on who should lead the regulation

In the meeting, industry reps told the parliamentary panel that enforcing a ban might not help much with security concerns and the need to protect investors from financial crime. They suggested setting up regulations to cover the crypto sector, though no specific regulator was earmarked to be the watchdog on the digital assets.

It is expected that this meeting will be followed by others in the future, given the crypto situation in India. Digital assets have been a topic of controversy owing to some of their facets. One of the standout facets is the astronomical returns that crypto services are promising users.

Just a few days ago, Prime Minister Narendra Modi led a high-level meeting where crypto and related issues were discussed.  Among the top concerns flagged in the meeting were the over-promising and lack of transparency around the digital assets. A strong view was held that ‚misleading‘ information around crypto, which often targets gullible youth via false advertising and over-promises, needed to be handled.

India’s apex bank is cynical about cryptocurrencies

In the lead-up to the Monday consensus, Reserve Bank of India (RBI) governor Shaktikanta Das reiterated the government’s position on crypto last week. Das insisted that crypto presented a threat to any financial system’s macroeconomic and financial stability unless regulated.

The governor was also skeptical of the mammoth numbers being floated around that have been claimed to represent the market value of the assets. There has also been a lack of clarity on where the crypto situation in India lies in the past. March 2020 saw the Supreme Court nullify a ban on crypto issued via a circular from the RBI two years earlier. The April 2018 circular had prohibited banks and other regulated entities from providing services related to virtual currencies.

The post India’s crypto panel yet to agree on which regulator should oversee the sector appeared first on Coin Journal.