GCash to Unveil Innovations at Upcoming FutureCast 2023

GCash, teases upcoming innovations at the March 30th event, GCash FutureCast: The Future of Fintech is Here, with potential updates on GCrypto.

The post GCash to Unveil Innovations at Upcoming FutureCast 2023 appeared first on BitPinas.

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Central Banks to Enforce Standard on Banks’ Exposure to Crypto in 2025

<p class="MsoNormal">The Group of Central Bank Governors and Head of Supervision (GHOS) of the Bank for International Settlements (BIS) has endorsed a global prudential standard for banks’ exposure to crypto assets. The Group has also decided on January 1, 2025, as the implementation date for the standard.</p><p class="MsoNormal">The standard was developed by the Basel Committee on Banking Supervision, the BIS’ primary global standard setter for the prudential regulation of banks, the BIS said in <a href="https://www.bis.org/press/p221216.htm" target="_blank" rel="nofollow">a statement</a> released on Friday.</p><p class="MsoNormal">“Unbacked cryptoassets and <a href="https://www.financemagnates.com/tag/stablecoin/" target="_blank" rel="follow">stablecoins</a> with ineffective stabilization mechanisms will be subject to conservative prudential treatment. The standard will provide a robust and prudent global regulatory framework for internationally active banks' exposures to cryptoassets that promotes responsible innovation while preserving financial stability,'' <a href="https://www.financemagnates.com/tag/bis/" target="_blank" rel="follow">BIS</a> explained in the statement.</p><p class="MsoNormal text-align-justify">Low Banking System Exposure to Crypto</p><p class="MsoNormal">According to the BIS, the direct exposure of <a href="n" target="_blank" rel="nofollow">the global banking system</a> to crypto assets “remains relatively low.” However, the international financial institution noted believes that recent events have necessitated having “a strong global minimum prudential framework for internationally active banks to mitigate risks from cryptoassets.”</p><p class="MsoNormal">BIS noted that the GHOS has, therefore, tasked the Basel Committee with continuously assessing bank-related developments in cryptoasset markets, including the role of banks as stablecoin issuers, custodians of cryptoassets and as broader potential channels of interconnections.</p><p class="MsoNormal">“Today's endorsement by the GHOS marks an important milestone in developing a global regulatory baseline for mitigating risks to banks from cryptoassets. It is important to continue to monitor bank-related developments in cryptoasset markets. We remain ready to act further if necessary,” Tiff Macklem, Chair of the GHOS and Governor of the Bank of Canada, noted.</p><p class="MsoNormal text-align-justify">The New Standard</p><p class="MsoNormal">According to the BIS, <a href="https://www.bis.org/bcbs/publ/d545.htm">the standard</a> will be incorporated as a new chapter of the consolidated Basel Framework (SCO60: Cryptoasset exposures). The standard accommodates feedback from BIS' second consultation on the prudential treatment of banks’ exposures to cryptoassets carried out by the Basel Committee in June 2022.</p><p class="MsoNormal">Under the new standard, banks will be required to classify cryptoassets into Group 1 and Group 2, with Group 1 cryptoassets including digital assets such as tokenized traditional assets and stablecoins. On the other hand, Group 2 cryptoassets “pose additional and higher risks” compared to those in Group 1 and include assets such as unbacked cryptoassets.</p><p class="MsoNormal">“A bank’s total exposure to Group 2 cryptoassets must not exceed 2% of the bank’s Tier 1 capital and should generally be lower than 1%,” the standard says.</p><p class="MsoNormal">Furthermore, the standard prescribes a redemption risk test and supervision and regulation requirements for cryptoassets.</p><p class="MsoNormal">“This test and requirement must be met for stablecoins to be eligible for inclusion in Group 1. They seek to ensure that only stablecoins issued by supervised and regulated entities that have robust redemption rights and governance are eligible for inclusion,” the standard notes.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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Qatar to Explore CBDC

Qatar is exploring use cases of introducing a CBDC, including all aspects, the pros and cons of the digital currency as well as digital banking. (Read More)

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A brief history of digital banking

Explore a brief history of digital banking, tracing its evolution from early automation to the integration of new technologies, such as IoT and blockchain.

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Pyth partners with Revolut for real-time digital asset data

Pyth Network partners with Revolut to integrate digital asset data into DeFi, bridging the gap between TradFi and Web3.

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Revolut Pulls the Plug on Crypto in US, Citing Regulatory Environment

Revolut, a London-based neobank, plans to wrap up its crypto trading offering to users in the United States by October 3, CoinDesk reported today (Friday). Users have until September 2 to purchase digital assets on the platform, and another one month to sell their crypto holdings.

Revolut to Quit US Crypto Market

According to CoinDesk, the challenger bank blamed the “difficult decision” on the “evolving regulatory environment” in the United States. In recent months, the Securities and Exchange Commission (SEC) has intensified its crackdown on “crypto-asset securities” offered by “unregistered” trading platforms such as Binance and Coinbase.

In the lawsuit against Binance filed in early June, the SEC listed 13 tokens, including Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL, as unregistered securities. The move forced several platforms including Revolut, Robinhood and eToro, to move towards delisting some of the tokens from their platforms.

Revolut, which suspended the purchase of ADA, MATIC and SOL on its platform, initially gave its US users until September 18 to sell their holdings. With the deadline several weeks away, Revolut has decided to instead shut down its entire crypto services in the country.

However, Revolut in a statement shared with CoinDesk noted that its users from other regions are not affected by the decision. It emphasized that the move will impact less than 1% of its crypto customers across the world.

“This decision has not been taken lightly, and we understand the disappointment this may cause,” Revolut stated.

Revolut Grows amidst Challenges

Revolut's planned exit from the US crypto market comes at a time the fintech company, which recently marked its first full year of profit, is enduring blows to its valuations. The firm, which began as a cross-border money transfer platform and subsequently expanded into crypto trading, consumer loans, and pet insurance, is also struggling to secure a banking license in the UK, Finance Magnates reported. Moreover, the bank reportedly lost $20 million to fraudsters due to a fault in its payment systems, according to the Financial Times.

However, despite the challenges, Revolut recently surpassed 30 million users on its platform, "growing almost one million customers per month," according to Nik Storonsky, the company's Co-Founder and CEO.

Last month, the challenger bank added a robo-advisor to its super app for users in the United States. It also rolled out Joints Accounts products in the UK and expanded its financial services to New Zealand.

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