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On 12 November 2024, during a parliamentary session, Deputy Prime Minister and Chairman of the Monetary Authority of Singapore, Mr Gan Kim Yong, provided a detailed response to questions raised by Ms He Ting Ru, Member of Parliament for Sengkang GRC. The questions centred on the security protocols and fraud liability protection measures implemented by banks for digital accounts operated by minors under 16 years of age. In his response, Mr Gan clarified the specific safeguards, parental responsibilities, and remediation processes for unauthorised transactions on minor-operated accounts, underscoring a framework designed to protect young account holders. Accounts for children under 16 can only be opened by a parent on behalf of the child, either as a joint account with parental control or a sole account in the child’s name. The parental role is pivotal, with parents authorised to monitor and manage account activities closely: Joint Accounts: In a joint account arrangement, the parent...

On 13 November 2024, ASIC Deputy Chair Sarah Court delivered an address at the Australian Financial Security Authority Summit. In her remarks, she highlighted ASIC's commitment to supporting confidence in the Australian credit system, with an emphasis on protecting financially vulnerable consumers from predatory practices and unfair outcomes. Court underscored ASIC’s regulatory focus on compliance within the credit sector and explained how ASIC’s targeted interventions, particularly in financial hardship cases, serve as key mechanisms to protect consumer interests. ASIC holds a central role in promoting integrity and fair outcomes in the Australian credit system. Its regulatory mandate includes overseeing entities within the consumer credit sector, with the goal of encouraging compliance and accountability across the industry. ASIC accomplishes this by promoting a culture of adherence to the Australian regulatory framework, including compliance with the National Consumer Credit...

On 15 October 2024, the Australian Securities and Investments Commission (ASIC) issued an infringement notice to Optix Australasia Pty Ltd, enforcing compliance with financial reporting obligations under the Australian Corporations Act 2001 (Cth). Optix, a small proprietary company ultimately controlled by the South African-listed company KAP Limited, has since paid $187,800 to comply with this notice. Optix Australasia Pty Ltd is a small proprietary company operating under the control of KAP Limited, a South African company, through its intermediary SingRisk Pte Ltd since December 2021. Optix’s financial year ends on 30 June, aligning with the Australian reporting period. In recent years, Optix has reported several historical non-compliance issues with ASIC, particularly concerning missed deadlines for lodging required financial reports. ASIC’s involvement stems from Optix’s failure to comply with Australian financial reporting requirements, particularly under its foreign-controlled...

On 11 November 2024, the Financial Conduct Authority (FCA) in the United Kingdom announced a series of enhancements to its disclosure processes in regulatory enforcement cases. These changes follow recommendations from the Upper Tribunal in the case of Seiler and others v FCA [2023] UKUT 00133, where the tribunal suggested that the UK FCA review and improve aspects of its disclosure process to ensure fairness and transparency in regulatory enforcement. The UK FCA has now completed this review, implementing several key changes that broaden the scope of its disclosure practices and increase support for teams involved in enforcement cases. The improvements are intended to bolster transparency and reduce the potential for any oversights in evidentiary disclosure. The adjustments to the UK FCA’s disclosure processes include: Broader Approach to Disclosure: Under the new guidelines, the UK FCA’s document review will no longer solely focus on identifying materials that might undermine the...

On 8 November 2024, the United States Department of Justice (DOJ) secured a significant sentence in a landmark case against Roman Sterlingov, a dual Russian-Swedish national, who operated Bitcoin Fog, the longest-running cryptocurrency “mixer” on the darknet. Sentenced to twelve years and six months in federal prison by the District Court of the District of Columbia, Sterlingov’s case marks one of the most prominent prosecutions for money laundering in the digital asset space. The court’s order also included a substantial forfeiture of over $395 million in illicit proceeds, underscoring the judiciary’s intent to dismantle the networks supporting criminal activities on the darknet. Roman Sterlingov’s Bitcoin Fog service, launched in 2011, operated as a cryptocurrency “mixer,” or “tumbler,” designed to obfuscate the source of cryptocurrency transactions. Bitcoin Fog became a go-to tool for criminals seeking anonymity, helping them “mix” illicitly obtained bitcoin with legitimate funds,...

On 07 November 2024, Nischal Shetty, Director of Zettai Pte Ltd, filed his fifth affidavit in the General Division of the High Court of the Republic of Singapore. This filing, made in line with the requirements of the ongoing insolvency and restructuring proceedings under Section 64 of Singapore's Insolvency, Restructuring, and Dissolution Act, aims to provide updates on the Company’s financial standing, interactions with the Committee of Creditors (COC), recent engagements with creditors, and future plans for restructuring. Zettai Pte Ltd, which operates the WazirX cryptocurrency platform, has been under a court-sanctioned restructuring process since September 2024, after facing significant financial challenges due to a major cyber-attack on 18 July 2024. This attack resulted in a 45% asset deficit, prompting the Company to seek a Scheme of Arrangement in Singapore to maximize creditor recovery through a reorganization of assets and liabilities. On 26 September 2024, the Singapore...

On 28 October 2024, the Hong Kong Monetary Authority and the Bank of Thailand announced a strategic collaboration to advance cross-border tokenisation. This partnership, undertaken within the frameworks of Project Ensemble and Project San, is designed to explore innovative applications for tokenised financial transactions between Hong Kong and Thailand. By integrating their digital financial infrastructures, the Hong Kong Monetary Authority and the Bank of Thailand aim to streamline cross-border trade payments, enhance the operation of carbon credit markets, and strengthen interoperability in their respective financial systems through distributed ledger technology. The partnership builds on a longstanding commitment between the Hong Kong Monetary Authority and the Bank of Thailand to foster financial innovation. Since signing a Memorandum of Understanding in 2019, these two central banks have successfully collaborated on several ground-breaking financial technology projects,...

On 28 October 2024, the Hong Kong Monetary Authority (HKMA) announced a pioneering collaboration with the Banco Central do Brasil (BCB) to drive innovation in cross-border tokenisation. This partnership aims to bridge the digital financial infrastructures of Hong Kong and Brazil, uniting their respective central bank digital currency (CBDC) platforms, Project Ensemble’s Sandbox and Brazil’s Drex pilot programme. By jointly exploring cross-border use cases for tokenisation, the HKMA and BCB are set to establish new standards in digital finance, particularly in areas such as trade finance and carbon credit settlement. The partnership builds on a Co-operation Agreement signed between HKMA and BCB in 2018, which laid the groundwork for fostering innovation in financial services across both jurisdictions. Now, as both institutions make significant strides in the development of CBDCs and tokenised assets, they see the collaboration as an opportunity to create a more integrated, secure, and...

On 06 November 2024, WazirX, an Indian cryptocurrency platform, announced a Townhall meeting for its creditors to introduce its latest restructuring tools. The session, conducted by WazirX’s restructuring team, including Zettai Pte. Ltd., will reveal a Rebalancing Calculator and Scheme Timeline Calculator, designed to empower creditors with greater insights into the platform's restructuring efforts. WazirX’s Fourth Townhall will take place from 5:30 to 6:30 PM IST (Indian Standard Time) or 8 PM to 9 PM SGT (Singapore Time) on 06 November 2024. Available on WazirX’s YouTube channel, the live session will include a presentation and a question-and-answer segment, allowing creditors to dial in for direct interactions with the Zettai restructuring team. This meeting forms part of WazirX's commitment to transparency and active creditor engagement. WazirX’s restructuring is conducted under Singapore's Scheme of Arrangement, a framework that legally binds the agreement once creditor and...

On 5 November 2024, OKX, a major global cryptocurrency exchange registered in the Republic of Seychelles, and Komainu, a regulated digital asset service provider and custodian headquartered in Jersey announced an extension of their partnership to provide institutional clients with an improved off-exchange custody solution. This partnership aims to strengthen the security and efficiency of digital asset trading for institutional investors, a group that increasingly seeks secure and compliant solutions in the growing virtual assets market. In June 2023, OKX initially partnered with Komainu by joining Komainu's collateral management platform, Komainu Connect. This collaboration allowed institutional clients to securely trade assets held in segregated custody with Komainu while utilising OKX’s trading infrastructure. This arrangement provided clients with an off-exchange settlement system that mitigates counterparty risk by storing assets with a regulated custodian, thus enabling trading...

On 31 October 2024, the United States Commodity Futures Trading Commission (Commodity Futures Trading Commission) issued a customer advisory warning users of popular messaging applications about the risks of crypto-related fraud schemes. Through this advisory, titled Use Caution Responding to Messaging Apps, the Commodity Futures Trading Commission aims to educate consumers on the tactics fraudsters employ to exploit the default settings of messaging apps, with an emphasis on safeguarding crypto assets. In its announcement, the United States Commodity Futures Trading Commission highlighted the rise of scams on applications like WhatsApp, Telegram, and SMS text messaging, where fraudsters exploit default settings to add users to group chats, often without their consent. The advisory informs users about how these default settings enable scammers to include both targeted and random numbers in fraudulent groups or chats, promoting deceptive schemes such as crypto pump-and-dump tactics....