Peter Hsu

The EBA has issued new Guidelines on the so-called ‘travel rule’, i.e. the information that should accompany transfers of funds and certain crypto assets. This rule will help tackle the abuse of such transfers for money laundering and terrorist financing purposes [...] https://lnkd.in/exEprBC6 #cryptoassets #cryptonews #crypto #aml #amlcompliance #regulatorycompliance #news #LSCPROM

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Australian court rules against Qoin issuer BPS Financial on 4 charges Qoin still has a class-action suit pending against it in addition to the case brought by regulator ASIC. Read More: https://lnkd.in/eQDXU8-s #virtualcoincap #bitcoin #cryptocurrency #blockchain #ethereum #ripple #money #trading #bitcoinmining #cryptocurrencies #bitcoinnews #cryptotrading #bitcoins #investment #investing #entrepreneur #cryptonews #invest #business #eth #bitcointrading #litecoin #trader #bitcoinprice #investor

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The Latest FATF Targeted Update 💡 𝗞𝗲𝘆 𝗙𝗶𝗻𝗱𝗶𝗻𝗴𝘀 - The 2024 survey shows marginal improvements in R.15 implementation, but some areas, such as VASP registration or licensing, have seen greater progress. - As of April 2024, 130 FATF mutual evaluations and follow-up reports were published, with 75% of jurisdictions being only partially or not compliant with R.15. - Many jurisdictions struggle with fundamental R.15 requirements; 29% have not conducted virtual asset risk assessments. - More than 25% of jurisdictions are undecided about how to regulate the VASP sector. 60% permit virtual assets and VASPs and 14% opt for partial or explicit prohibition. - Prohibiting VASPs is challenging; only two of twenty jurisdictions with prohibitions are largely compliant with FATF requirements. - Little progress has been made on the Travel Rule, with 30% of jurisdictions not passing legislation and low supervision and enforcement in those that have. 🔎 𝗩𝗔𝗦𝗣 𝗖𝗼𝘂𝗻𝘁𝗲𝗿𝗽𝗮𝗿𝘁𝘆 𝗗𝘂𝗲 𝗗𝗶𝗹𝗶𝗴𝗲𝗻𝗰𝗲 - VASPs must identify and conduct due diligence on counterparty VASPs to transmit required Travel Rule information. - Many jurisdictions allow domestic VASPs to transact with foreign VASPs who are non-compliant with the Travel Rule. - Without proper identification of counterparty VASPs and beneficiary locations, originator VASPs risk breaching economic sanctions. ⚙️ 𝗜𝘀𝘀𝘂𝗲𝘀 𝘄𝗶𝘁𝗵 𝗧𝗿𝗮𝘃𝗲𝗹 𝗥𝘂𝗹𝗲 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗧𝗼𝗼𝗹𝘀 - The industry has developed various Travel Rule compliance tools, but many do not fully meet FATF standards. - Common shortcomings include failure to transmit information immediately, undermining sanctions screening and counterparty due diligence. - VASPs should carefully select compliance tools that meet all FATF Travel Rule requirements [page 24 -25]. - Lack of interoperability among compliance tools can hinder counterparty identification and TR information exchange, affecting transaction monitoring and detecting suspicious activity. - The FATF encourages private sector efforts to increase compatibility among Travel Rule compliance tools through developing interoperable solutions. - 7 jurisdictions reported VASPs using in-house Travel Rule compliance tools (an increase from 3 in 2023). 💱 𝗣𝗿𝗼𝗽𝗼𝘀𝗲𝗱 𝗥𝗲𝘃𝗶𝘀𝗶𝗼𝗻𝘀 𝗼𝗳 𝗥.𝟭𝟲 𝗮𝗻𝗱 𝗜𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗧𝗿𝗮𝘃𝗲𝗹 𝗥𝘂𝗹𝗲 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 - In February 2024, FATF started a public consultation on potential changes to Recommendation 16 and its Interpretive Note on payment transparency. - Proposed revisions aim to adapt the Standard to new payment system business models and messaging standards (ISO 20022) while ensuring technology neutrality and consistent rules for similar activities and risks. 📄 𝗞𝗲𝗲𝗽 𝗮𝗻 𝗲𝘆𝗲 𝗼𝘂𝘁 𝗳𝗼𝗿 𝗼𝘂𝗿 𝘂𝗽𝗰𝗼𝗺𝗶𝗻𝗴 𝗯𝗹𝗼𝗴, which will discuss the FATF’s latest update and what the above points mean for VASPs seeking to comply with the Travel Rule.

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The EBA has released three sets of final (draft) regulatory technical standards (RTS) and one set of final (draft) implementing technical standards (ITS) under the Markets in Crypto-assets Regulation (#MiCAR) specifically concerning asset-referenced tokens (ARTs). These points summarise the key aspects of the EBA's standards regarding ARTs under MiCAR: 1. The European Banking Authority (EBA) recently published final draft regulatory technical standards (RTS) and implementing technical standards (ITS) concerning asset-referenced tokens (ARTs) under the Markets in Crypto-assets Regulation (MiCAR). These standards focus on the authorisation process for ART issuers, information requirements for acquiring qualifying holdings in ART issuers, and the approval process for white papers related to ARTs issued by credit institutions. 2. The RTS on authorisation specifies the information necessary for applying to offer ARTs publicly or seek admission to trading, emphasising that only EU-established legal entities can apply. The ITS on authorisation provides application templates and outlines the process for assessing application completeness. Notably, these standards do not apply to credit institutions needing approval only for white paper publication. 3. Detailed content requirements for notifications of proposed acquisitions of qualifying holdings in ART issuers have been established to aid competent authorities in prudential assessments. Criteria such as the reputation of acquirers, financial soundness, and anti-money laundering measures are considered. Privacy compliance reminders have been incorporated following public consultation, particularly for authorization applications and acquisition notifications, with credit institutions requiring notification instead of authorisation to issue ARTs. Click here for a copy of the EBA publication: https://lnkd.in/e-TpA9y8

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For MAS Rewrite, the identifier for counterparty 1 should be an LEI (or pre-LEI when LEI is not available), where counterparty 1 is a specified person. It's important to note that in the case of an allocated contract executed by a fund manager on behalf of a fund, the fund, and not the fund manager, is reported as the counterparty. If counterparty 1 is unspecified, or LEI or pre-LEI are unavailable, use SWIFT BIC code, AVOX ID, any identifier issued by a licensed trade repository or licensed foreign trade repository, or client code. In the case of individuals, use a client code. Do you and your firm need guidance with establishing which identifier to use? Contact the team at TRAction for assistance! #MAS #MASRewrite #TransactionReporting #RegulatoryReporting #RegTech

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🚨 KfW Issues €100m Crypto Digital Bond on Polygon Labs 🚨 German state-owned investment bank KfW has issued a €100 million ($108m) bond on the Polygon blockchain. This marks a significant step in the digitalisation of capital markets, with KfW being the first syndicated crypto security in Germany. Here's what you need to know: 1️⃣ The bond has a 3.125% coupon with a maturity date of December 10, 2025. Investor demand was described as 'heavy', with participants including Union Investment (anchor investor), Volksbank, DekaBank Deutsche Girozentrale, LBBW, SOLVENTIS, Sparkasse, and National Bank of Commerce (WI/MN). 2️⃣ This issuance differs from KfW's previous digital bonds by using the Polygon blockchain instead of a central securities depository (CSD). It's supported by the German Electronic Securities Act (eWpG), which allows distributed technology such as blockchain to replace the need for a central record-keeper. 3️⃣ KfW is already planning its next crypto security bond, participating in the European Central Bank wholesale DLT (Distributed Ledger Technology) settlement trials. The new bond will be settled in central bank money through the Bundesbank's trigger solution, combining benefits of blockchain with the safety and stability of central bank settlement. Read the full article here: https://lnkd.in/eN3w-k9F - - - Meet moreliquid. moreliquid is a digital assets platform that offers end-to-end services to asset managers for tokenised securities. ▶ Follow us, moreliquid ▶ Subscribe to our newsletter: https://lnkd.in/g2ZY8QTX

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The EBA has just released guidelines under the Markets in Crypto-Assets Regulation (MiCAR), shaping the future of asset reference tokens (ARTs) issuance in the EU. The following is a breakdown of the key points: 1. The new Regulatory Technical Standards (RTS) outline what information is needed for entities applying to offer or trade ARTs. Updates include that only EU-established entities can apply, and that only the issuer is eligible to submit an application for authorization, ensuring that only issuers can be granted authorization. 2. Implementing Technical Standards (ITS) provide standard application formats, making it easier for entities to apply. Notably, credit institutions only need approval for white paper publication, not full authorization. 3. RTS on information for notifying proposed acquisitions outline the necessary data for assessing acquisitions in ART issuers. 4. The RTS on white paper approval procedures set clear timelines for approval processes which must be adhered to by credit institutions, competent authorities and central banks. Link below: https://lnkd.in/dNSNfaUM #ARTs #EBAupdates #esgroup #solutionproviders E&S Group Jade Fenech

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🏙 The EBA has released a Consultation Paper on May 13, 2024, detailing proposed Regulatory Technical Standards (RTS) under the Capital Requirements Regulation (#CRR) Article 124(12). This document outlines risk weight standards for mortgages on properties currently under construction, aiming to standardize the regulatory framework across the EU. Key Points: ➡ Properties under construction may receive favorable risk weight treatment, subject to specific criteria. ➡This initiative promotes uniformity and stability in the EU's real estate financing landscape. For further information, access the full article here: https://lnkd.in/dZcGWPHq

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On June 19, 2024, the European Banking Authority (EBA) released a comprehensive package of regulatory products under the Markets in Crypto-Assets Regulation (MiCA), completing its technical standards under MiCA. This latest tranche focuses on key areas such as reporting, liquidity stress testing, and the formation of supervisory colleges essential for monitoring and managing the use of crypto-assets effectively within the EU. 🔍 Key Updates Include: ‣ Regulatory Technical Standards (RTS) on the use of asset-referenced tokens (ARTs) and electronic money tokens (EMTs) denominated in non-EU currencies, detailing methodologies for transaction estimation crucial for MiCA reporting. ‣ Implementing Technical Standards (ITS) that define specific reporting templates and instructions for ARTs, EMTs, and crypto-asset service providers (CASPs), enhancing transparency and supervisory capabilities. ‣ Guidelines on Liquidity Stress Testing that set out the risks and parameters for stress test scenarios, ensuring that liquidity requirements are robust and comprehensive. ‣ RTS on Supervisory Colleges to specify conditions for defining the relevance of various entities and the use of significant ARTs and EMTs at a large scale, facilitating better regulatory oversight. 📄 Published Documents: • Final Report on RTS on the use of ARTs and EMTs as a means of exchange under MiCA • Final Report on ITS on reporting obligations • Several annexes providing detailed templates and instructions for reporting • Final Report on Guidelines on liquidity stress testing under MiCA • Final Report on RTS on supervisory colleges under MiCA By creating a structured and secure regulatory framework, the EBA is promoting stability and transparency across the EU. Understanding these standards will be pivotal for stakeholders in the cyrpto space to operate within the bloc. 🔗 Full press release and documents: https://lnkd.in/euJbWyEY #CryptoRegulation #MiCA #DigitalAssets #FinancialServices #EBA #CryptoCompliance

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𝐄𝐒𝐌𝐀 𝐜𝐨𝐧𝐟𝐢𝐫𝐦𝐬 𝐚𝐝𝐨𝐩𝐭𝐢𝐨𝐧 𝐨𝐟 𝐃𝐓𝐈 𝐚𝐧𝐝 𝐅𝐅𝐆 𝐃𝐓𝐈 𝐭𝐨 𝐢𝐝𝐞𝐧𝐭𝐢𝐟𝐲 𝐜𝐫𝐲𝐩𝐭𝐨-𝐚𝐬𝐬𝐞𝐭𝐬 𝐟𝐨𝐫 𝐌𝐢𝐂𝐀 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 📜 On 3 July 2024, ESMA confirmed in its Final Report (cf. link in the comments) the adoption of the ISO 24165 Digital Token Identifier (𝗗𝗧𝗜) and Functionally Fungible Group DTI (𝗙𝗙𝗚 𝗗𝗧𝗜) as identifiers for crypto-assets under MiCA regulation. 🧐 The DTI will be used for pre- and post-trade transparency, order book management and record-keeping by Crypto Asset Service Providers (𝗖𝗔𝗦𝗣𝘀). Issuers and offerors of asset-referenced or e-money tokens, commonly known as stablecoins, will also be required to provide DTIs and FFG DTIs, where available, within crypto-asset white papers. 💡 DTIs and FFG DTIs are made available as part of the Digital Asset data offering from SIX. Example: Ether (ETH) – Valor 39891263 / ISIN XTD5RG2FHH04. 🚀 DTIs have also been adopted and implemented by SDX, SIX Digital Exchange. 👉 Find out more about our Digital Asset data offering: https://six.swiss/3WyY8Sm #MakingADifferenceWithData #MICAR #DigitalAssets #CryptoAssets SIX Digital Exchange

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🚨 New EBA Guidelines on 'Travel Rule' for Transfers of Funds and Crypto Assets 🚨 On the 4th of July, The European Banking Authority (EBA) has issued new guidelines to combat money laundering and terrorist financing through the ‘travel rule’ 🌍💸. These guidelines specify the necessary information that must accompany transfers of funds and certain crypto assets, ensuring compliance from payment service providers (PSPs), crypto-asset service providers (CASPs), and their intermediaries. 🔑 Key Points: 💸 Consistent EU Approach: Aims to standardize the implementation of the travel rule across the EU for effective regulation 🏦. 💸 Detailed Information Requirements: Specifies the required information for transfers and outlines steps to detect and address missing or incomplete information 📄🔍. 💸 Effective from 30 December 2024: Guidelines will apply from this date, replacing previous measures under Regulation (EU) 2015/847 📅⚖️. This initiative aligns the EU’s legal framework with FATF standards and strengthens AML/CFT measures for CASPs. It ensures that relevant authorities can fully trace transfers to prevent, detect, or investigate money laundering and terrorist financing activities 🚫💼💣. Stay compliant and ensure all transfers are properly documented to meet the new guidelines. 📊✅ For more details, read the full press release and guidelines here: https://lnkd.in/dEKrXMre #EBA #CryptoCompliance #AML #TravelRule #FinanceRegulation #CryptoAssets 🌟

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Government-owned KfW bank has issued digital bonds before, including a €4 billion one. However, these used a central securities depository (CSD). The German Electronic Securities Act (#eWpG) also supports a distributed registry without a CSD, which it refers to as ‘crypto securities’. Now KfW is issuing a €100 million ($108m) #blockchain bond on the Polygon Labs blockchain, value dated 4 July. KfW claims that the bond with a 3.125% coupon and 10 December 2025 maturity is the first syndicated #crypto security in #Germany. Union Investment was again the anchor investor in the latest issuance, but KfW described investor demand for the AAA rated bond as ‘heavy’. Other investors include Berliner Volksbank eG, DekaBank Deutsche Girozentrale, LBBW, Solventis AG, Sparkasse Pforzheim Calw and Wirtschafts- und Infrastrukturbank Hessen (WIBank). The bank said interest spanned investors of different sizes and sectors, including asset managers, treasuries, and various types of banks. “Our aim was to involve as many market participants as possible in the transaction in order to collectively learn new things and test the #innovation facilitated by the legislator through the German Electronic Securities Act (eWpG) together with our banking partners, our anchor investor Union Investment and other interested investors,” said Tim Armbruster, Treasurer at KfW. “The healthy level of participation shows the investors’ keen interest in the #digitalisation of capital market transactions. We now want to use this potential to identify scaling options for our refinancing activities.” “After completing the transaction, we will have tested the entire front-to-end process, from the issue of a crypto security to the repayment. We then need to share this experience with other market participants and derive practical implications for the further development of this innovative market segment,” said Gaetano Panno, Head of Transaction Management at KfW. The project involved several participants. The bookrunning consortium was DZ Bank, Deutsche Bank, LBBW and Bankhaus Metzler. Deutsche Bank is the lead arranger and settlement agent. DZ Bank acts as the collective registered holder on behalf of all investors. Cashlink is the crypto securities registrar, and HAUCK AUFHÄUSER LAMPE Digital is the custodian. Linklaters provided legal advice with Hengeler Mueller giving legal support to the bookrunning consortium. #AltBanking The leading aggregator, bringing the best actionable news, information and opportunities in this rapidly evolving ecosystem right to you. Follow us to stay up-to-date! #finance #banking #fintech #DeFi #bond #Web3 #tokenization #investment #securities https://lnkd.in/eN3w-k9F

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On 22 December 2023, the Securities and Futures Commission (the “SFC”) published a Circular on SFC-authorised funds with exposure to virtual assets (the “Circular”) to set out the requirements that the SFC would consider in authorising investment funds with exposure to virtual assets (“VA”) of more than 10% of their net asset value (“NAV”) for public offerings in Hong Kong. This Circular supersedes the circular on VA futures exchange traded funds (“ETFs”) issued on 31 October 2022. Our Partner Rodney Teoh shed lights on the expectations and requirements that the SFC would consider when approving funds. Read the full article here: https://lnkd.in/gGVhZa4C #swhk #swcorporatefinance #hongkong #lawfirm #virtualasset #funds

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