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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....

On 5 November 2024, the Banque de France and the Monetary Authority of Singapore announced the successful conclusion of a joint experiment in post-quantum cryptography. This experiment, conducted remotely using conventional Internet infrastructure is a advancement in safeguarding communication and data security against the emerging cybersecurity threats posed by quantum computing. The project aims to secure future communication channels against potential decryption capabilities of quantum technology, marking a vital step towards a “quantum-safe” global financial system. The announcement emphasises the urgent need to adopt quantum-resistant cryptographic measures to protect sensitive information, particularly in digital communications. The experiment introduced the use of quantum-resistant cryptographic algorithms for signing and encrypting emails—a application due to the confidential nature of the information typically exchanged via email. By proving that these algorithms can operate...

On 4 November 2024, the Financial Conduct Authority welcomed the inaugural report on tokenisation in the asset management sector from Project Guardian, an international collaboration spearheaded by the Monetary Authority of Singapore. This report, developed through Project Guardian’s asset and wealth management workstream, outlines an ambitious roadmap for the implementation of distributed ledger technology within asset management, aiming to facilitate more efficient, transparent, and accessible investment solutions for firms and investors alike. The announcement from the Financial Conduct Authority highlights the significance of the report in setting the foundation for an industry-wide shift towards the use of distributed ledger technology and tokenisation. As part of this initiative, the Financial Conduct Authority is committed to collaborating with Project Guardian members in exploring regulatory considerations around tokenisation in asset management. This work will examine...

On 4 November 2024, Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) announced an extension of their bilateral financial arrangement, now set to last until 1 November 2027. The extended three-year period, a shift from the previous one-year renewal cycle, shows the deep financial cooperation between the two central banks as they work together to support monetary and financial stability amid global economic uncertainties. This decision highlights the resilience of the financial partnership between Indonesia and Singapore, positioning both nations to better withstand potential macroeconomic challenges. The bilateral arrangement consists of two core agreements. The first is a local currency bilateral swap agreement that enables the exchange of local currencies, allowing each central bank to access up to SGD9.5 billion or IDR100 trillion from the other. This arrangement provides both central banks with flexibility in managing local currency needs, bolstering financial...

On 4 November 2024, the Monetary Authority of Singapore announced a strategic initiative to accelerate the commercialisation of asset tokenisation within the financial sector, with plans to establish foundational infrastructure, deepen liquidity, and develop industry frameworks. This move is part of Singapore’s broader effort to position itself as a leader in the digital finance space, with the initiative becoming effective immediately. MAS’s announcement is backed by Project Guardian, an industry consortium involving more than 40 financial institutions, industry associations, and international policymakers. Since its inception, Project Guardian has conducted over 15 industry trials in six currencies, examining asset tokenisation’s role across multiple financial products. In light of these trials, MAS aims to create coordinated networks that connect various market participants and currencies, thereby enhancing capital raising, trading, and settlement processes for tokenised assets....

On 4 November 2024, the United States Securities and Exchange Commission vide its order granted an extension of time for Pinnacle Investments, LLC, to comply with the Commission’s requirements regarding a Proposed Plan of Distribution. This extension, requested by the SEC’s Division of Enforcement, now sets a deadline of 1 July 2025 for the plan’s submission. The extension order underscores the SEC’s commitment to ensuring full regulatory compliance in the distribution of funds to affected investors. The case against Pinnacle Investments began on 5 May 2023, when the US SEC issued an Order Instituting Administrative and Cease-and-Desist Proceedings against the firm. According to the US SEC, from January 2015 to October 2022, Pinnacle Investments, a registered investment adviser and broker-dealer, engaged in multiple regulatory violations. These violations included making false and misleading statements in US SEC filings concerning advisory client account reviews, failing to disclose...

On 4 November 2024, the Securities and Futures Commission of Hong Kong concluded its Anti-Money Laundering and Counter-Financing of Terrorism Regulatory Technology Forum 2024. This forum was held to encourage the financial services sector to adopt regulatory technology responsibly to combat money laundering and terrorism financing. With over 300 participants, including government officials, industry experts, and financial sector representatives, the forum marked a significant step toward enhancing regulatory compliance and risk management through advanced technology. The central aim of the forum was to promote the widespread and responsible adoption of regulatory technology, commonly referred to as Regtech, within Hong Kong’s financial services industry. This aligns with the Securities and Futures Commission’s goal of building a resilient financial sector with robust anti-money laundering and counter-financing of terrorism practices. In conjunction with the event, the Hong Kong...

On 31 October 2024, the Central Bank of Argentina (BCRA) held an exhibition at its Historical Museum, bridging the worlds of digital assets and traditional finance through live Bitcoin mining as part of an art display. This exhibit, titled “Art, Artificial Intelligence, and the Future of the Economy,” is a global first for central banks, blending cutting-edge cryptocurrency mining equipment with contemporary art to explore the transformation of money. By daring to showcase decentralized finance within its institution, the BCRA signals a progressive stance, inviting the public to reflect on the future of value as currency moves from physical cash to decentralized, blockchain-driven systems. The centerpiece of the exhibition is the work of Alberto Echegaray, a digital artist whose installations probe the tension between traditional and digital economies. His piece, “Moneyballs,” encapsulates this shift through spheres filled with shredded banknotes, crafted from decommissioned U.S....

On 31 October 2024, the United States Securities and Exchange Commission issued a set of significant enforcement actions against two of J.P. Morgan’s core entities, J.P. Morgan Investment Management Incorporated and J.P. Morgan Securities Limited Liability Company, addressing a number of compliance failures, undisclosed conflicts of interest, and regulatory breaches across the company’s investment advisory practices. These orders, which require immediate cease-and-desist actions, substantial penalties, financial restitution, and extensive compliance reforms, are aimed at upholding strict standards within the financial sector, particularly in areas of investor protection and regulatory transparency. The actions target violations under the United States Investment Company Act of 1940, the United States Investment Advisers Act of 1940, the United States Securities Act of 1933, the United States Securities Exchange Act of 1934, and the United States Securities and Exchange Commission’s...

On 30 October 2024, the Monetary Authority of Singapore published the National Anti Money Laundering strategy which made waves in the world of digital finance. Monetary Authority of Singapore announced updates to the Singapore’s Payment Services Act (PSA), which introduce stricter regulations for digital payment token (DPT) service providers and payment institutions. These updates aims to safeguard consumer assets, enforce transparency, and promote responsible advertising in digital finance, reinforcing Singapore’s reputation as a trusted financial center that prioritizes security and consumer confidence. The project to update the SG PSA has been a year in the making, spearheaded by a team of MAS regulators, compliance professionals, and industry experts who have worked together to design a framework that meets both the demands of a rapidly advancing market and the need for robust consumer protection. Since its inception, this project has focused on ensuring that consumers engaging...

On 28 October 2024, the Bank for International Settlements (BIS), in collaboration with central bank partners from Australia, Korea, Malaysia, and Singapore, announced a development with Project Mandala, which demonstrated the feasibility of embedding regulatory compliance directly into cross-border transaction systems. This proof-of-concept milestone shows that compliance procedures can be automated within payment flows, potentially transforming cross-border financial transactions by reducing costs, increasing speed, and maintaining adherence to varied regulatory frameworks. Project Mandala, spearheaded by the BIS Innovation Hub Singapore Centre in cooperation with the Reserve Bank of Australia (RBA), Bank of Korea (BOK), Bank Negara Malaysia (BNM), and Monetary Authority of Singapore (MAS), addresses the complex compliance challenges involved in managing regulatory requirements across jurisdictions. By implementing a “compliance-by-design” model, the project automates compliance...