Boon-Hiong Chan

Another milestone in this highly anticipated initiative that would have far reaching impact to the market. Please see the Hong Kong Monetary Authority (HKMA) post below for the latest updates. #Stablecoins #FRS

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The Monetary Authority of Singapore (MAS) 🇸🇬 has announced plans to advance asset tokenization in financial services through 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐆𝐮𝐚𝐫𝐝𝐢𝐚𝐧. Key points include: ✔️ MAS aims to form commercial networks, develop market infrastructures, foster industry frameworks, and enable access to common settlement facilities for tokenized assets. ✔️ Project Guardian has involved over 40 financial institutions 🏦 and policymakers across seven jurisdictions, conducting more than 15 industry trials in six currencies. ✔️ The Guardian Wholesale Network industry group has been formed by major banks to commercialize asset tokenization trials. ✔️ MAS launched the 𝐆𝐥𝐨𝐛𝐚𝐥 𝐋𝐚𝐲𝐞𝐫 𝐎𝐧𝐞 (𝐆𝐋1) initiative to develop foundational digital infrastructures for commercial networks. ✔️ Two industry frameworks were published: the 𝐆𝐮𝐚𝐫𝐝𝐢𝐚𝐧 𝐅𝐢𝐱𝐞𝐝 𝐈𝐧𝐜𝐨𝐦𝐞 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤 (𝐆𝐅𝐈𝐅) and the 𝐆𝐮𝐚𝐫𝐝𝐢𝐚𝐧 𝐅𝐮𝐧𝐝𝐬 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤 (𝐆𝐅𝐅) to guide tokenization implementation. ✔️ MAS is facilitating access to common settlement assets, including S$ wholesale CBDC, through a test network (SGD Testnet) for eligible financial institutions. 💡 These initiatives aim to improve capital raising, secondary trading, asset servicing, and settlement of tokenized assets while deepening liquidity across markets. Image Credit: MAS. #MAS #TheGuardian #tokenizedassets #liquisity #SGDTestnet #capitalraising Harry Lars Ghillemyn Güneş Ünüvar Tristan Husson Julien Choveton-Caillat Daniel Rodríguez Miguel

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The Monetary Authority of Singapore (MAS) announced plans to support the commercialisation of asset tokenisation.  MAS will expand activities under The Global Layer One (GL1) Initiative to design an open digital infrastructure of international standards.  This will align governance, risk management controls, and settlement arrangements for cross-border transactions.  MAS aims to form commercial networks to deepen liquidity in tokenised assets through Project Guardian.  This will facilitate seamless transactions of tokenised assets across networks.  Two industry frameworks, the Guardian Fixed Income Framework (GFIF) and the Guardian Funds Framework (GFF), have been published to guide the implementation of tokenisation in debt capital markets and funds.  MAS will facilitate access to common settlement assets, including the Singapore dollar wholesale central bank digital currency (CBDC), for market testing purposes.  This initiative will improve fundraising, secondary trading, asset servicing, and settlement of tokenised assets.  It will also support the development of digital infrastructure and common standards to enable industry-wide adoption of tokenisation. Based on this, I posit MAS could potentially accept tokenised carbon credits.  MAS has already shown interest in supporting innovative financial solutions, including the commercialisation of asset tokenisation.  MAS has launched the Transition Credits Coalition to develop a new class of carbon credits aimed at accelerating the closure of coal-fired power plants.  Tokenised carbon credits align with MAS’s goal of promoting sustainable finance and supporting the transition to a low-carbon economy.  Tokenisation improves the efficiency of carbon markets by simplifying transactions and increasing liquidity.  By facilitating the trading of tokenised carbon credits, MAS helps achieve global climate goals, such as reducing greenhouse gas emissions and promoting renewable energy. MAS has launched the Transition Credits Coalition, which includes financial institutions, carbon exchanges, standard setters, and NGOs.  This coalition aims to develop a new class of carbon credits to accelerate the closure of coal-fired power plants.  MAS has initiated pilot projects to test the use of high-integrity transition credits in transactions for the early retirement of coal-fired power plants.  These credits are generated by retiring a coal plant early and replacing it with clean energy sources.  This is a good base to expand to general trading of fungible compliance carbon credits. Terence Nunis Terence K. J. Nunis, Consultant President, Red Sycamore Global

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🚀 Real Adoption of RWA Tokenization Continues.. Deutsche Bank announced plans to explore #tokenization on public blockchains in collaboration with the Monetary Authority of Singapore (MAS) and will soon offer services for tokenized assets and digital funds. The bank aims to propose protocol standards and identify best practices in this domain. 💁‍♀️ Alongside MAS, regulators from the UK (FCA), Switzerland (FINMA), and Japan (FSA) are also involved in this initiative. The Southeast Asia region is emerging as a new frontier in asset servicing, well-positioned to drive industry progress by anticipating and exceeding clients’ needs. Tokenization is inevitable ❗ #rwa #tokenization #digitalassets #blockchain

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𝗠𝗔𝗦 𝗔𝗱𝘃𝗮𝗻𝗰𝗲𝘀 𝗧𝗼𝗸𝗲𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝘄𝗶𝘁𝗵 𝗡𝗲𝘄 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲𝘀 𝗳𝗼𝗿 𝗔𝘀𝘀𝗲𝘁 𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗶𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗦𝗲𝘁𝘁𝗹𝗲𝗺𝗲𝗻𝘁 𝗞𝗲𝘆 𝗣𝗼𝗶𝗻𝘁𝘀: ✅ MAS Supports Tokenization in Financial Services: The Monetary Authority of Singapore (MAS) has announced plans to boost tokenization by creating commercial networks, building market infrastructures, establishing industry frameworks, and enabling a common settlement facility for tokenized assets. ✅ Project Guardian Drives Industry Trials: Under Project Guardian, MAS has facilitated over 15 industry trials with more than 40 financial entities across seven jurisdictions, exploring tokenization for capital markets in various currencies and financial products. ✅ Guardian Wholesale Network Established: Citi, HSBC, Schroders, Standard Chartered, and UOB have formed the Guardian Wholesale Network to commercialize tokenization trials, aiming to enhance capital raising, trading, and settlement processes and deepen liquidity in tokenized markets. ✅ GL1 Platform for Cross-Border Infrastructure: Launched by MAS in 2023, the Global Layer One (GL1) initiative brings together banks like BNY, Citi, J.P. Morgan, MUFG, and Societe Generale - FORGE to set governance and risk principles for seamless cross-border trading of tokenized assets. ✅ Industry Frameworks for Tokenized Assets: Two frameworks, the Guardian Fixed Income Framework (GFIF) and Guardian Funds Framework (GFF), provide guidelines for implementing tokenization in debt and funds markets, supporting industry standards for asset issuance, management, and settlement. ✅ Common Settlement Assets with SGD Testnet: MAS’s SGD Testnet offers a settlement facility for the issuance, transfer, and redemption of S$ wholesale central bank digital currency (CBDC), with plans for expanded interoperability to include other digital forms of central bank and commercial bank money. 𝗥𝗲𝗮𝗱 𝗺𝗼𝗿𝗲 𝗵𝗲𝗿𝗲:  https://lnkd.in/ebBCXMGJ

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So the OKCoin and Huobi pulled out their applications and so it looks like the VASP regulation system is a total disaster. The goal of the regulatory system is 1) to develop a virtual asset business ecosystem in Hong Kong 2) to protect the consumer against fraud The VASP licensing system is remarkable because it has the worst of both worlds. It does absolutely nothing to protect consumers from fraud and also pushes companies to locate outside of Hong Kong. There are three factors that cause this mess 1) The basic law rule against capital controls 2) The internal politics of the SFC 3) The administrative mindset of HK regulators So one key thing about Hong Kong is Article 112 of the Basic Law which prohibits the HK government from instituting capital controls. This means that the HK government can only regulate HK-HK transactions. If either the exchange or the client is not in HK, then the HK government cannot regulate. What this means is that if you are interested in servicing HK clients is makes more since to operate outside of HK (i.e. Binance) and have nothing to do with HK. Conversely, if you are in HK you are not regulated if you only serve non-HK clients (Bitmex for example). This means that if you are in HK and you want to buy stuff, you can buy it from outside of HK with zero regulation. The internal politics of the SFC is that they get in trouble only if a HK-regulated company goes bad. So if a Singapore company blows up (like FTX), the SFC can say "too bad, not our problem". However, if an HK regulated company blows up they are looking at all of HK screaming at them. The thing is that they get punished when things go bad, but they don't benefit at all if a company located in HK. This means that the SFC is highly incentivized to make sure that there is no crypto sales in Hong Kong, because no crypto means no scandal. Now this kills HK as a virtual asset hub, but that's InvestHK's problem not the SFC. The third issue is that HK bureaucrats are administrators and not politicians. They were trained to follow orders from London, and they still do (i.e. all of the new regulations are carbon copies of UK legislation). The trouble is that they haven't gotten the memo that the British Empire no longer exists, and that they need to do new stuff. This requires vision, creativity, and an appetitie for risk, which is something people in the HK bureaucracy don't have. So it's a disaster. I am going to be making a lot of noise basically saying "since VASP licensing has been such as disaster, it might be a good idea not to license anything else." Part of it is to see if anyone disagrees.

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Using #Blockchain More Broadly Across Asia: A Path to Digital Transformation By Kevin Varend - 凯文, COO & Founder, J3D.AI (Jedi).AI Labs, Estonia 🔴 Blockchain technology is rapidly becoming a game-changer in Asia, offering the potential to fundamentally change industries. At the #Horasis Asia Meeting, leaders from various sectors, including business, government, and academia, gathered to discuss how blockchain can be leveraged to unlock new business models, streamline supply chains, and drive financial inclusion. This article delves into the key insights shared during the session, exploring blockchain’s transformative power to reshape industries, drive innovation, and bridge the digital divide across Asia. 🔴 Blockchain technology has the potential to radically transform economies across Asia, driving financial inclusion, enhancing governance, and revolutionizing supply chains. However, for blockchain to fully realize its potential, it will require collaborative efforts from governments, businesses, and academic institutions. By fostering a clear regulatory environment, promoting education and awareness, and building trust in the technology, blockchain can become a powerful tool for creating a more transparent, efficient, and inclusive economy. Read the full article: https://lnkd.in/ePkTQmQf https://lnkd.in/ePkTQmQf

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👏 At #SmartCon 2024, HashKey Group Chairman and CEO, Dr. Xiao Feng, shared his vision for the increasing integration of traditional and crypto finance markets. 💡 He highlighted #stablecoins, #ETFs, #RWAs, and #STOs facilitated by licensed and compliant institutions as key drivers of this convergence. 🔗 Dr. Xiao explained that "on-chain" integration, the process of bringing various assets onto the blockchain, happens in three primary ways: #Web2 (data on-chain), #DePIN (device on-chain), and #DeFi (asset on-chain). 💪 He further explained that on-chain integration is a means to an end, not the ultimate goal. It serves as a tool to unlock broader value for users. 🙌 HashKey's recently launched L2, HashKey Chain, exemplifies this value. It aims to create a "compliant" and innovation-friendly ecosystem where both traditional finance and #Web3 users can benefit from the potential of blockchain technology and its applications. 👇 Discover how HashKey strategically shapes this integrated financial future： https://lnkd.in/gWWrdTi7 #HashKeyChain #blockchain #cryptomarket

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From Digital Currency to Legal Tender | The Role of Regulated Stablecoins in Driving Real-World Payments This report by Quinlan & Associates explores the transformative potential of regulated stablecoins in reshaping #globalpaymentsystems, bridging the gap between #digitalcurrencies and traditional legal tender. It highlights their role in driving the real-world adoption of #blockchain-based payments while addressing challenges related to scalability, regulatory compliance, and interoperability Stablecoins as Payment Enablers:      Regulated stablecoins, anchored to fiat currencies, provide the stability required for mainstream adoption. They mitigate volatility issues associated with #cryptocurrencies, making them suitable for day-to-day transactions and cross-border payments. Market Evolution:      The global stablecoin market has grown exponentially, supported by increased institutional interest and the development of blockchain infrastructure. By 2024, stablecoin transaction volumes are expected to surpass traditional crypto trades, driven by their utility in payments and remittances. Regulatory Imperatives:      The report underscores the need for clear and consistent regulations to integrate stablecoins into the global financial system. Key areas include anti-money laundering (AML) compliance, consumer protection, and ensuring operational resilience of stablecoin issuers. Institutional Adoption:      Major financial institutions and central banks are exploring stablecoin solutions as part of their digital transformation strategies. Partnerships between private stablecoin providers and public entities are identified as critical to achieving scale and trust. Real-World Use Cases:      Stablecoins are gaining traction in areas such as e-commerce, remittances, and #decentralizedfinance (#DeFi), showcasing their versatility in both #B2C and #B2B transactions. - Policy Frameworks: Governments and regulators must establish frameworks to ensure stablecoin stability and foster #innovation while safeguarding systemic integrity.  - Public-Private Collaboration: Enhanced collaboration between stablecoin providers and regulators is essential to create interoperable and secure payment ecosystems.  - Infrastructure Development: #Investment in blockchain infrastructure is critical to enable faster, cheaper, and more inclusive #paymentsystems globally. In conclusion, regulated #stablecoins present a pivotal opportunity to modernize global payments by merging #digitalinnovation with #traditionalcurrency stability. Their adoption relies on balanced #regulations, public-private cooperation, and robust #blockchain infrastructure. By addressing challenges like scalability and compliance, stablecoins can drive #financialinclusion, streamline #crossbordertransactions, and establish trust in a rapidly evolving #financialecosystem.

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‼️MAS Commits up to S$100 Million to Support Quantum and Artificial Intelligence Capabilities in the Financial Sector‼️The Quantum track will comprise the following grants: ➡️ Technology Centres grant – This supports the establishment of quantum computing and security innovation functions in Singapore, to enable financial institutions and global technology companies to explore and unlock new opportunities arising from quantum technologies. This grant will provide funding support of up to 50% on manpower and other qualifying expenses such as hard/software infrastructure, subscriptions and licenses, for a period of 24 month. ➡️ Technology Innovation grant – This comprises two sub-tracks to support adoption of quantum technology solutions by financial institutions. The first sub-track aims to catalyse meaningful institutional use cases that bring about significant impact to business. The second sub-track will support strategic endeavours to solve relevant industry-wide problem statements. Up to 50% co-funding support will be provided to advance the exploration and implementation of such quantum solutions. ➡️ Security grant – This aims to enhance cyber security readiness to better prepare our financial infrastructure and services for the quantum era. Funding support of up to 30% will be provided to enable experimentation and development of quantum technology-related pilots that explore the use of Post-quantum Cryptography (PQC) and Quantum Key Distribution (QKD) to safeguard firms’ critical data. MAS will enhance the existing AI and data grant scheme under FSTI 3.0. to ➡️ Bolster financial institutions' development and deployment of AI technologies in Singapore – Singapore has the potential to become a centre of excellence for anchoring AI capabilities, such as in the development of applications, as well as testing and deployment of AI solutions for the financial sector. MAS will support financial institutions in establishing AI innovation centres in Singapore for a range of functions. (…) ➡️ Develop AI platforms to address industry wide use cases – There are strong prospects for the financial industry to apply AI to solve industry-wide problems beyond what each financial institution can do individually. This involves the development of frameworks and platforms for policies and protocols that enable secure and privacy-protected data exchange where financial institutions can collaborate on industry-wide use cases. For example, MAS has identified scam and fraud detection as a use case for the first pilot project, and will work with banks, technology solution providers and public agencies on this. (…) More details on the enhanced support for AI will be announced in the coming months. Read the full release in the link below. https://lnkd.in/gmqW6g-W

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While the media is actively following the virtual assets #VA market and regulatory development in Hong Kong from BTC & ETH spot ETFs to VATP licensing, another “more boring” yet massive real economy and mainstream finance #TradFi opportunity is emerging where the different building blocks are quietly coming in place. The total value of #tokenised real-world assets #RWA, excluding stablecoins, is around US$5 billion for 2024, primarily across #commodities, #privatecredit, and #UStreasuries, according to estimates by a paper published by Standard Chartered and Synpulse. On the other hand, the total addressable market size for #TokenisedTradeFinance, including the trade finance gaps, amounts to around US$14 trillion. Expected market size for overall tokenised real-world assets could reach up to US$30.1 trillion by 2034 with trade finance asset tokenisation making up to 16% of the total market then. In Hong Kong, #ProjectDynamo, a collaboration between Standard Chartered, Bank for International Settlements – BIS Innovation Hub Hong Kong, Hong Kong Monetary Authority (HKMA), and technology companies, explores how digital trade tokens can improve the whole supply chain finance process. To download the paper: https://lnkd.in/gqW_J5VC FintechHK Alpha Lau Christopher Hui Joseph HL Chan Julian Ip Charles Ng Jason Fong Karen Mak Julia Chan pauline fan Peggy Kwok King Lin Brian Cook Simon Chan 陳思浩

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FinTech Futures report on a trial of new safeguards designed to protect financial communications and data from the potential threats posed by quantum computing by the Banque de France and Monetary Authority of Singapore (MAS) https://lnkd.in/eRiMmdJT #TerraGlobal #fintech #quantum #computing

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FCC ANALYTICS RegTech Innovation Day 2024 - Addressing the HKMA Circular on Use of A.I for Monitoring Suspicious Activities and Gen A.I Sandbox FCC Analytics in Asia Pacific is pleased to invite you to the FCC Analytics RegTech Innovation Day 2024 on 1 November 2024 at HKSTP Wheelock Gallery from 2:00 PM to 6:00 PM. This year marks the second year of FCC Analytics organising this event, which is a satellite event of Hong Kong FinTech Week 2024. Our focus will be on how the banking industry can prepare for the HKMA circular on the use of AI for monitoring suspicious activities and the launch of the HKMA Generative AI Sandbox. Join us for insightful discussions, where representatives from FCC ANALYTICS and KPMG will share their expertise and insights. This is an invitation-only event, designed to foster meaningful connections within the industry. At the end of the event, there will be a networking session for industry practitioners, providing a fantastic opportunity to connect with fellow leaders in the field. We would like to extend our gratitude to our supporting organizations, HKSTP - Hong Kong Science and Technology Parks Corporation, Invest Hong Kong, and KPMG China, for their invaluable support in making this event possible. Chad Olsen Lilian Sin Ricky Li Derek Chim Annie Chung Ernest MA (MA Hok Wang)Philip Cheung Isabella Wong Wallace Chow If you have not received an invitation from us, please contact us at info@fcc-analytics.com. We look forward to an inspiring day of innovation and collaboration! #RegTech #Fintech #HKMA #AI #Innovation #Networking #HongKongFintechWeek2024 #Banking #AML #Transaction #TransactionMonitoring #GenAI #HKSTP #KPMG #InvestHongKong #Australia #Singapore

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Hong Kong’s Securities and Futures Commission (SFC)'s recent circular on the Use of Generative AI Language Models underscores key areas of caution for licensed corporations. Here’s how 𝗖𝘆𝗺𝗲𝘁𝗿𝗶𝗰𝘀 𝗩𝘂𝗹𝗰𝗮𝗻, our pioneering AI security and LLM verification platform, addresses these crucial considerations: 1️⃣ 𝗠𝗶𝘁𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝗛𝗮𝗹𝗹𝘂𝗰𝗶𝗻𝗮𝘁𝗶𝗼𝗻𝘀: Cymetrics Vulcan detects and mitigates AI hallucinations across four critical areas: security, safety, privacy, and fairness. This ensures financial institutions can uphold data accuracy and reliability, supporting compliance and informed decision-making. 2️⃣ 𝗛𝘂𝗺𝗮𝗻-𝗶𝗻-𝘁𝗵𝗲-𝗟𝗼𝗼𝗽 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻: Vulcan supports a balanced approach by combining AI insights with human oversight in critical decisions. This ensures that users retain control and transparency, reducing risks of errors or biases and aligning with regulatory guidance to prevent over-reliance on AI in sensitive applications. 3️⃣ 𝗗𝗲𝗳𝗲𝗻𝗱𝗶𝗻𝗴 𝗔𝗴𝗮𝗶𝗻𝘀𝘁 𝗔𝗱𝘃𝗲𝗿𝘀𝗮𝗿𝗶𝗮𝗹 𝗔𝘁𝘁𝗮𝗰𝗸𝘀: Vulcan proactively evaluates models for adversarial vulnerabilities, helping financial institutions safeguard AI systems from potential manipulation. This approach strengthens the resilience and integrity of AI-driven processes, supporting secure, trustworthy applications. As AI regulations evolve, Cymetrics Vulcan enables financial institutions to align with Responsible AI standards, enhancing trust, compliance, and security in AI deployments. Feel free to reach out if you have questions about safely deploying AI systems or ensuring they align with regulatory expectations. We’re here to help! Alex Leung Alvin Kwock Michelle Ip Lettie Sin Stanley C. Eric Fang Frank Liao SangJune Park Lynn Jiang WEI-SHAN (Lisa) LIN Joyce H. Rex Zhang Marco Lau Lokie Tam Vincent Alliaga Stephen Cheng Sue Yen LEOW Chad Duffy (林杰辰) SiewMei Loh Joby Chang Beatrice Tohme #CymetricsVulcan #GenerativeAI #AIRegulations #ResponsibleAI #SFC

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