1. Singapore To Help Crypto Firms Setting Up Corporate Bank Accounts
We covered on many occasions the interest shown by Singapore towards the crypto phenomenon. It has now been reported that the Monetary Authority of Singapore (MAS) is going to help cryptocurrency businesses setting up corporate accounts. It must be mentioned that this does not mean that the banking regulations in place currently will be loosened. Managing Director Ravi Menon specified that the city-state wants to attract crypto firms, but not at the expense of their regulatory framework. What the financial regulator will do instead is helping banks and crypto companies finding a common ground. Menon said that given the different nature of these companies, it’s normal for banks to be wary of them. Despite the country relatively open approach, it was acknowledged that the crypto industry also carries some risks. Both advantages and threats are being taken into account when deciding how to move forward. This is just the latest statement made by MAS. Just over two weeks ago, we reported the regulator discussing the potential uses of cryptocurrencies and blockchain during the Singapore Blockchain Week.
2. The Financial Stability Board Wants To Monitor Crypto Assets
Last week, we revealed that the European Securities and Markets Authority (ESMA) would spend €1.1 million in 2019 to monitor cryptocurrencies. The Financial Stability Board (FSB) has now made a similar statement. The international body has stated that crypto assets do not put the financial stability at risk, but there is still a need for monitoring as well as consumer protection. The belief is due to the fact that crypto assets do not have a large enough market capitalisation to pose a threat to financial markets. However, due to the rate at which changes take place, a monitoring approach is being suggested. The FSB went on to say that “illiquidity, concentrated ownership, fragmented market structure, and other issues also make crypto-assets potentially susceptible to price manipulation.”
3. Blockchain Will Help Commodities, says Former JP Morgan Executive
During the London Metal Exchange annual dinner, former JP Morgan executive Blythe Masters stated that blockchain technology will increase the efficiency of the commodity market. This will be achieved through the creation of various blockchain projects. Masters went on to say that the commodity supply chain will be the area to benefit the most from the new technology as they often are “complex and inefficient”. To many, this statement won’t come as a surprise. In fact, several companies, through consortiums or individually, have already started developing blockchain-based systems to improve their operations. At the top of the list, there are definitely Walmart and IBM. Finally, in 2015, Masters joined crypto advocacy group the Chamber of Digital Commerce’s board.
This news roundup was brought to you by BlockEx.
To receive our daily news roundup in your mailbox, sign up here: http://bit.ly/BlockExNewsAndUpdates