Quantum Updates 61: ASIC Issues Interim Travel Ban in Blockchain Global Probe | November 2025

Australia ASIC Obtains Interim Travel Ban Against Blockchain Global Director Amid Ongoing Investigation

On 29 October 2025, the Australian Securities and Investments Commission (ASIC) secured interim travel restraint orders from the Federal Court of Australia against Blockchain Global Limited (in liquidation) director Zijing (Ryan) Xu. The Federal Court of Australia order, made on 20 October 2025, prohibits Mr Xu from leaving or attempting to leave Australia until 20 December 2025. ASIC sought the orders ex-parte, citing concerns over potential evidence dissipation and non-cooperation in its ongoing investigation into the collapse of Blockchain Global’s crypto asset exchange, ACX Exchange. The order was later varied by consent, extending the restraint to 28 November 2025, pending further hearings.

• The Federal Court order restrains Mr Xu from leaving Australia or taking steps to do so until 20 December 2025. ASIC’s ex parte application was made without prior notice to Mr Xu, given the risk of evidence removal or evasion of investigative scrutiny. The regulator’s probe concerns the management, governance, and financial operations of Blockchain Global and its associated exchange entities before their collapse. The inter partes hearing, initially scheduled for 30 October 2025, has been extended to enable both parties to present submissions.
• Blockchain Global operated ACX Exchange, one of Australia’s earliest digital trading platforms, allowing customers to buy, sell, and store crypto assets from January 2016 until its collapse in December 2019. Following mounting insolvency concerns and allegations of corporate mismanagement, Blockchain Global entered liquidation on 11 February 2022. ASIC’s ongoing investigation is examining possible breaches of the Corporations Act 2001 and financial services laws, focusing on the firm’s conduct, compliance practices, and governance failures leading to investor losses.
• ASIC’s travel restraint application underscores the seriousness of the agency’s probe into crypto-related insolvencies and governance lapses. The Commission’s focus on ensuring accountability reflects its commitment to enforcing directors’ duties and preserving investigatory integrity in high-risk sectors such as digital assets. The Federal Court’s willingness to grant interim travel bans demonstrates judicial support for ASIC’s efforts to prevent obstruction of justice in ongoing regulatory investigations.
• The case will return to the Federal Court for continued consideration before the 28 November 2025 hearing date. Further orders will determine whether the travel restraint remains in place pending ASIC’s broader investigation into Blockchain Global’s operations, asset tracing, and potential breaches of corporate and financial laws.

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Australia ASIC Releases Summary of Consultation Feedback on Updated Digital Asset Guidance

On 29 October 2025, the Australian Securities and Investments Commission (ASIC) released a comprehensive summary of stakeholder responses to Consultation Paper 381 – Updates to INFO 225: Digital Assets – Financial Products and Services (CP 381). The consultation, which sought industry feedback on proposed revisions to Information Sheet 225 and the associated transitional framework for stablecoins, wrapped tokens, and digital asset intermediaries, received 51 non-confidential submissions from financial institutions, crypto service providers, consumer groups, and professional advisers. The feedback has informed ASIC’s decision to grant class no-action relief, extend transitional periods, and expand illustrative examples within the updated guidance to enhance clarity and implementation certainty.

• Support for Transitional Relief on Stablecoins and Wrapped Tokens: The majority of respondents agreed that many stablecoins and wrapped tokens qualify as financial products under current Australian law, supporting transitional relief for unlicensed intermediaries managing such assets. This approach, respondents noted, ensures continuity until the Government’s proposed Digital Assets and Payments (DAP) reforms come into effect. ASIC confirmed it will introduce illustrative examples in INFO 225 covering non-yield-bearing stablecoins and wrapped tokens, alongside class relief for secondary distributors of eligible assets. Further consultation is ongoing through Consultation Statement 32 (CS 32) – Proposed relief for certain stablecoins and wrapped tokens, and extension of omnibus accounts for digital asset custody, open until 12 November 2025.
• Respondents broadly supported ASIC’s class no-action position, recommending that it include historical conduct and longer transition periods of up to 24 months. In response, ASIC issued a class no-action letter offering temporary non-enforcement of licensing breaches under the Australian Financial Services (AFS), Australian Market, and Clearing and Settlement (CS) frameworks. The lodgement window for AFS licence applications closes on 30 June 2026. The position excludes crypto lending, earn products, and most crypto derivatives, except wrapped tokens. ASIC stressed that enforcement will continue in cases of fraud, systemic misconduct, or consumer harm.
• Industry participants acknowledged the usefulness of examples clarifying when a digital asset qualifies as a financial product but sought greater depth and coverage. In response, ASIC updated INFO 225 to include five new examples i.e. bitcoin, native proof-of-stake staking, tokenised real estate, wrapped tokens, and non-interest-bearing stablecoins and revised five others, including managed staking, yield-bearing stablecoins, and new blockchain structures. ASIC also conducted informal consultations with key stakeholders to ensure these examples reflect real-world use cases and practical application.
• Respondents identified ongoing operational hurdles, including custodian capital requirements, trust account rules amid debanking, and difficulty obtaining professional indemnity insurance. Some also noted challenges in applying design and distribution obligations (DDO) to decentralised products without clear issuers. ASIC responded by adding explanatory guidance within INFO 225 to help digital asset businesses address these issues while transitioning to full licensing compliance.
• Feedback indicated strong agreement that INFO 225 should extend to digital asset custodians and depository service providers, though respondents called for deeper clarification of custodial triggers and standards. ASIC reaffirmed that existing custodial standards apply across all financial products, irrespective of technological form, adopting a principles-based approach. The regulator also proposed relief for omnibus account arrangements to facilitate pooled client custody, consistent with CS 32. Submissions remain open until 12 November 2025.
• Industry views were divided on whether ASIC should delay updates pending DAP legislation. Some urged closer alignment with international standards, while others favoured Australia-specific rules addressing decentralised finance (DeFi) and smart contracts.

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Australia ASIC Clarifies Regulatory Framework for Digital Assets and Grants Transitional Relief to Support Innovation

On 29 October 2025, the Australian Securities and Investments Commission (ASIC) issued updated guidance extending Information Sheet 225 – Digital Assets: Financial Products and Services (INFO 225) to clarify how existing financial services laws apply to digital assets. The update reinforces investor protection while supporting innovation in Australia’s expanding digital economy. ASIC also introduced a sector-wide no-action position effective until 30 June 2026 and proposed targeted relief for stablecoin, wrapped token, and digital asset custodians to ensure an orderly transition to the forthcoming Digital Assets and Payments (DAP) legislative framework.

• Scope of INFO 225: ASIC states that stablecoins, wrapped tokens, tokenised securities, and digital asset wallets are classified as financial products under current law. The updated INFO 225 extends prior versions (2017, 2018, 2019, and 2021) and now explicitly applies to real-world asset tokenisation, stablecoin issuance, and digital custody arrangements. All entities offering, dealing, or advising in such products must hold an Australian Financial Services (AFS) licence or operate under a recognised exemption.
• Transitional Support and No-Action Relief until 30 June 2026
  To support compliance readiness, ASIC announced a sector-wide no-action position providing temporary regulatory flexibility until mid-2026. The measure allows firms time to assess licensing obligations and apply for necessary authorisations. Proposed relief instruments also cover stablecoin and wrapped token distributors, and digital asset custodians whose activities fall under financial product regulation. Public consultation on these proposals remains open until 12 November 2025.
• The updated INFO 225 is in considered view of Australian Government’s DAP reforms, clarifying what constitutes a financial product or service under existing law. It complements parallel regulatory developments, including exemptions granted for the Reserve Bank of Australia’s Project Acacia, which explores wholesale tokenised asset markets. ASIC stated that: “these measures collectively ensure legal continuity and investor confidence as Australia transitions to the new legislative framework.”
• The new guidance incorporates outcomes from Consultation Paper 381 – Updates to INFO 225: Digital Assets: Financial Products and Services, released in December 2024. The consultation examined whether certain digital assets constitute financial products, corresponding licensing requirements, and transitional relief mechanisms. Stakeholder responses directly shaped ASIC’s final approach and the examples included in the revised guidance.
• ASIC stated that many widely traded digital assets are already financial products under Australian law and will remain so under forthcoming reforms. As a result, providers must hold an AFS licence. ASIC will consider the no-action period while evaluating past conduct, it will continue to pursue enforcement actions in cases of systemic harm or fraud.
• ASIC Commissioner Alan Kirkland stated: “Distributed ledger technology and tokenisation are reshaping global finance. ASIC’s guidance provides the regulatory clarity that firms have been calling for to innovate confidently in Australia.” He added: “Many widely traded digital assets are financial products under current law and will remain so under the Government’s proposed law reform, meaning many providers require a financial services licence. Licensing ensures consumers receive the full suite of protections under the law and allows ASIC to act when poor practices lead to harm.”
• The updated INFO 225 and associated relief measures take immediate effect from 29 October 2025. The no-action period extends through 30 June 2026, while firms have a mandate, within a defined window, to adapt.

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Monetary Authority of Singapore Consults on Enhanced Investor Recourse for Market Misconduct: Proposed Civil Compensation Framework

On 24 October 2025, the Monetary Authority of Singapore (MAS) issued Consultation Paper on Measures to Enhance Investor Recourse Avenues in Market Misconduct Cases proposing a civil compensation framework to enhance investor recourse for losses arising from market misconduct, following the recommendations of the Equities Market Review Group, to strengthen investor protection, promote confidence in Singapore’s equities markets, and address barriers that prevent retail investors from pursuing legitimate claims. The proposed framework introduces structural mechanisms to simplify litigation, improve access to funding, and facilitate collective representation, all while embedding safeguards against frivolous or opportunistic lawsuits.

• The framework expands Singapore’s investor protection regime and complements MAS’s enforcement powers under the Singapore Securities and Futures Act 2001 (SFA). While the SFA allows MAS to impose civil penalties or pursue criminal actions for misconduct, it offers limited private recourse for individual investors. The proposed model bridges this gap by enabling investors to seek compensation directlythrough collective representation and co-funded litigation mechanisms. MAS emphasises that a transparent, accessible, and efficient investor redress system is crucial to maintaining a fair and resilient capital market.
• Proposal 1: Facilitating Self-Organisation through Designated Representation: Under current laws, collective investor actions are constrained by coordination difficulties. MAS proposes introducing a Designated Representative Mechanism, allowing an independent, court-approved entity to organise and represent investors in civil proceedings. To ensure integrity, designated representatives must have no financial interest or conflict of interest and meet eligibility and governance standards set by MAS. This mechanism is designed to reduce transaction costs, promote fair representation, and streamline proceedings while maintaining judicial oversight.

• Proposal 2: Providing Access to Funding via a Grant Scheme: Recognising that litigation costs remain a significant deterrent for retail investors, MAS proposes a grant schemeto co-fund credible investor actions. The scheme would cover a portion of litigation expenses, including expert testimony and financial analysis, through co-payment arrangements and strict governance controls. This ensures that only meritorious claims receive support, balancing investor empowerment with prudential oversight. The funding model is designed to encourage legitimate claims while disincentivising speculative litigation that could undermine market stability.

• Proposal 3: Reducing Legal Barriers and Expanding Piggyback Claims: MAS seeks to amend the existing “piggyback claim” provisions under the SFA, which currently allow investors to seek compensation only after a criminal conviction or civil penalty order. The proposed refinements would:

• • Extend claim eligibility to include default judgments, consent orders, and settlements involving admissions of liability.
  • Simplify procedural requirements to reduce legal complexity and delays.
  • Ease the burden of proof of reliance in cases involving misleading statements or omissions.
  • Remove statutory compensation caps, giving courts full discretion to determine damages based on case-specific evidence.
    These adjustments aim to make investor claims more practical and proportionate while aligning private recourse with public enforcement outcomes.
• Policy Background
  • February 2025: The Equities Market Review Group announced its initial measures to strengthen Singapore’s equities market.
  • July 2025: MAS signalled its intention to enhance investor recourse and broaden retail protection.
  • October 2025: The current public consultation on the civil compensation framework was launched, with feedback due by 31 December 2025.
• This consultation embeds civil accountability into its market integrity framework, by introducing mechanisms for collective action, shared funding, and procedural simplification.

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Monetary Authority of Singapore Announces Finalists for the 2025 Global FinTech Hackcelerator and FinTech Excellence Awards

On 21 October 2025, the Monetary Authority of Singapore (MAS) announced the 42 finalists for the 2025 Global FinTech Hackcelerator and the Singapore FinTech Festival (SFF) FinTech Excellence Awards. The winners will be revealed at the SFF FinTech Excellence Awards Dinner on 13 November 2025, marking ten years of Singapore’s leadership in global fintech innovation. The Hackcelerator is organised by MAS in partnership with the Global Finance Technology Network (GFTN), centres on the theme “Artificial Intelligence (AI) for Financial Services”, showcasing transformative AI applications designed to reshape wealth management, SME financing, risk analytics, and regulatory compliance.

• The 2025 Global FinTech Hackcelerator features 18 pioneering AI-based solutions, each developed to tackle critical industry challenges. Every finalist has been paired with an industry mentor to refine their solutions ahead of Demo Day on 12 November 2025, where the top three teams will receive S$80,000 each and potential pilot collaborations with BNP Paribas, Mastercard, and Prudential AI Lab. The AI theme aligns with MAS’s strategic initiatives such as Project Veritas and Project Guardian, which aim to integrate fairness, ethics, and accountability into the adoption of AI in finance.
• Among this year’s finalists, ActuaViz (Taiwan) uses AI to convert complex regulatory data into machine-readable formats; Akro (Singapore) builds secure AI research platforms for financial institutions; Boost.Money (India) leverages AI-driven analytics to simplify SME credit decisioning; and U-Reg (Singapore) automates compliance workflows, accelerating Source of Wealth verification by up to 80%. These projects exemplify how regulatory trust and rapid technological innovation can co-exist within a transparent governance framework.
• SFF FinTech Excellence Awards 2025, Recognising a Decade of Impact
  The SFF FinTech Excellence Awards, jointly organised by MAS, the Singapore FinTech Association (SFA), and PwC Singapore, celebrate Singapore’s fintech evolution over the past decade. The 2025 awards received over 150 entries, with five corporate categories such as Emerging FinTech, Financial Inclusivity, Regulatory Leader, Sustainable Innovator, and Thematic (AI), and one individual honour, FinTech Mentor of the Year.
• Solutions like LexisNexis IDVerse for AI-powered identity verification, Cynopsis Solutions for global KYC compliance, and WeavInsight for climate-risk analytics demonstrate how technology supports ESG objectives, risk mitigation, and digital governance in the fintech ecosystem.

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Monetary Authority of Singapore Launches BLOOM Initiative to Extend Settlement Capabilities

On 16 October 2025, the Monetary Authority of Singapore (MAS) launched BLOOM — Borderless, Liquid, Open, Online, Multi-currency, initiative to enhance digital settlement capabilities across Singapore’s financial system. BLOOM builds upon Project Orchid (2021), which explored a digital Singapore dollar, and now extends its scope to enable multi-currency settlement through tokenised bank liabilities and well-regulated stablecoins.

• BLOOM establishes a regulated interoperability framework for digital settlements that focus on tokenised bank liabilities and regulated stablecoins . Compliance automation is embedded through programmable controls and the Programmable Compliance Toolkit, developed under Singapore’s Global Layer One (GL1) initiative. BLOOM integrates governance, risk management, and regulatory reporting into transaction protocols, using “programmable compliance” to ensure AML/CFT and cross-border regulatory checks are performed at the technical layer.
• BLOOM brings together a consortium of leading global and domestic participants including Circle, DBS, OCBC, UOB, Partior, Stripe, Coinbase, Ant International, and StraitsX. These institutions will collaborate on interoperability, compliance automation, and AI-enabled agentic payments.
• MAS has invited further participation from financial institutions and clearing networks to co-develop standards, marking a policy shift from regulatory observation to regulatory co-creation. BLOOM supports multi-currency settlement across G10 and Asian currencies, integrating digital settlement into both domestic and cross-border payment infrastructures.
• BLOOM complements MAS’s broader digital finance strategy anchored in three key initiatives:
  1. Project Orchid: development of digital Singapore dollar infrastructure.
  2. Project Guardian: tokenisation of financial and real-world assets.
  3. Global Layer One (GL1): creation of shared digital infrastructure and programmable compliance standards and a cohesive ecosystem linking currency innovation, tokenised assets, and compliance automation.
• BLOOM pioneers the concept of agentic payments i.e. transactions autonomously initiated and executed by AI agents under predefined rules. This approach exemplifies MAS’s forward-looking policy direction in machine-led finance, integrating AI with regulatory oversight. By embedding such capabilities, BLOOM supports corporate treasury management, trade finance, and cross-border liquidity operations.
• Background of Developments
  • 2021: Launch of Project Orchid to prototype a digital Singapore dollar.
  • 2022–2024: Over ten trials completed; industry reports released on programmable rewards and conditional payments.
  • 2025: Launch of BLOOM to extend tokenised and stablecoin settlement across currencies
• Objectives:
  • Enable secure settlement using tokenised bank liabilities and regulated stablecoins.
  • Develop standardised compliance frameworks using programmable controls.
  • Integrate AI-driven agentic payment systems.
  • Enhance multi-currency and cross-border settlement efficiency.
• BLOOM establishes MAS’s principles-based regulation of prudential oversight with controlled experimentation, embedding programmable compliance and permitting tokenised assets within a supervised environment, for a long-term architecture for regulated decentralisation.

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European System of Central Banks Renews Statements of Commitment to the FX Global Code – Compliance and Governance Overview

On 9 October 2025, the Latvijas Banka vide Public Safety in Money Matters: Critical Financial Services and the Digital Euro European System of Central Banks (ESCB) reaffirmed its adherence to the FX Global Code, the international standard of conduct for foreign exchange (FX) markets. The Code, originally launched in 2017 and updated in December 2024, articulates the principles of fairness, transparency, and integrity that underpin ethical FX trading. By renewing their Statements of Commitment, the European Central Bank (ECB) and all national central banks within the ESCB have ensured internal policies and operational frameworks fully comply with the revised Code. The reaffirmation strengthens market integrity, promotes ethical behaviour across the FX ecosystem, and reinforces confidence in the effectiveness of monetary policy transmission through well-governed financial markets.

• The FX Global Code, maintained by the Global Foreign Exchange Committee (GFXC), is a voluntary set of principles promoting sound governance and best practices in global FX markets. The ESCB’s renewal demonstrates its continued leadership in upholding ethical market conduct and signals to both public and private market participants that adherence to the Code remains a continuous responsibility. The renewal ensures that internal operations within EU central banks align with globally accepted principles of conduct, thereby enhancing transparency, market discipline, and investor trust across Europe’s currency markets.
• Although non-binding, the FX Global Code operates as a self-regulatory framework complementing statutory laws and supervisory regimes. It is structured around six key dimensions: ethics, governance, execution, information sharing, risk management, and confirmation and settlement. The ESCB’s recommitment underscores that compliance with the Code reflects institutional integrity and disciplined risk governance in FX activities.
• Financial institutions active in FX markets, including banks, dealers, asset managers, and corporates, are expected to align their internal policies with the Code’s principles. The ESCB’s leadership effectively transforms voluntary adherence into a benchmark of responsible participation. Firms that mirror the ESCB’s compliance standards strengthen their credibility and resilience against misconduct risks.
• The December 2024 revision of the FX Global Code introduced enhanced provisions on governance, transparency, and data integrity. Institutions should:
  • Conduct a compliance gap analysis to compare existing FX practices against the revised Code.
  • Update internal manuals, trader charters, and risk policies to reflect the latest ethical and operational standards.
  • Renew and publicly disclose a Statement of Commitment on their official websites as evidence of alignment.
  • Integrate Code adherence monitoring into internal audit and compliance testing cycles.
  • Require and document counterparties’ compliance commitments as part of relationship and due diligence processes.
    These actions collectively ensure consistency between ethical standards, internal governance, and supervisory expectations.
• Regulatory Background
  • 2017: Initial publication of the FX Global Code, establishing universal principles of FX market conduct.
  • July 2021: First update reflecting technological and executional developments in FX trading.
  • December 2024: Second update refining governance and transparency requirements.
  • 9 October 2025: ESCB renews its Statements of Commitment, confirming full compliance with the updated Code.
• Compliance and Institutional Takeways
  • Short term: Integrate the December 2024 updates into FX governance frameworks.
  • Medium term: Embed adherence monitoring within compliance oversight structures.
  • Long term: Sustain disciplined conduct across the FX ecosystem, ensuring markets remain transparent, ethical, and resilient, thereby supporting effective monetary policy implementation.
• The ESCB’s states that ethical conduct and operational transparency are indispensable to the stability of global FX markets.

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