News Nuggets | 31 July: New Zealand's FMI Standards; ICE Delists Bakkt's Contracts

HSBC’s Hong Kong Subsidiary Limits Crypto Firms to ‘Simple’ Accounts

Hang Seng Bank, a subsidiary of HSBC in Hong Kong, has reportedly restricted the bank accounts which cryptocurrency companies can open in the country. However, the bank has not disclosed the limitations the accounts will have.

According to a report by Coindesk, cryptocurrency companies based in Hong Kong are reportedly struggling to get a bank account due to the reluctance of financial institutions and the limited staffing at the Securities and Futures Commission. This is despite the country allowing companies to offer crypto services in the country.

The Hong Kong Monetary Authority (HKMA) recently urged major banks, including HSBC, Standard Chartered, and Bank of China, operating in Hong Kong to accept cryptocurrency exchanges as clients. This step is part of Hong Kong’s efforts to make the country a crypto hub.

DataArt and KX Partner to Enhance Cloud-Based AI Services

The global software engineering company, DataArt has partnered with KX, the creators of the Artificial Intelligence (AI) database, to address the challenges encountered when moving real-time analytics data, machine learning (ML), and artificial intelligence workloads into the cloud.

Some of the challenges include the high cost and the inadequate performance of data-intensive applications. The partnership will initially focus on the capital markets and the financial services sector.

CVMV Issues Warnings against Ten Firms

The National Securities Market Commission (CVMV) has issued a warning against ten companies allegedly operating without its registration. The regulator announced today (Monday), saying the companies were not authorized to provide investment services.

The mentioned firms are PRO TRADE, SWIFTECFX, OKMIU LIMITED, FUNDSTRADEFX.COM, BINA XBT, BAER GROUP, FINEX TRADER, SMART LIFE DIGITAL, BITBRIDGES, and STARTRADER.

Bitcoin Bank Breaker under BaFin Investigation

The German financial regulator, BaFin has issued a warning regarding Bitcoin Bank Breaker, a platform offering trading of financial instruments via the website bitcoin-bankbreaker.com. The regulator suspects that the operators of the site are providing financial or investment services without the requisite permissions.

As the operators have not provided complete company details on their website, this has raised some suspicion. BaFin emphasizes that anyone offering banking, financial, or securities services in Germany must obtain permission from them. Investigations are ongoing based on section 37 (4) sentence 1 of the German Banking Act.

FCA Announces 14-point Action Plan for Cash Savings

The UK's Financial Conduct Authority (FCA) has unveiled a 14-point action plan aimed at ensuring that banks and building societies pass on interest rate rises appropriately to savers. The plan also requires institutions to improve communication with customers and offer better savings rate deals.

This follows a review of the cash savings market, which revealed slower interest rate rises for easy-access accounts compared to other accounts. Institutions with the lowest savings rates must justify these rates per the Consumer Duty in force. If unable to provide a satisfactory justification, the FCA may take action. The plan also requires better communication with customers about their options.

Safe Trust Wealth Operates Unregistered and Not Based in NZ

The website of Safe Trust, www.safe-trust.net, has raised concerns as it claims to be based and regulated in New Zealand, offering investment packages.

However, the entity is neither registered on the Financial Service Providers Register (FSPR) nor licensed by the Financial Markets Authority (FMA), casting doubt on its credibility. The FMA suspects that Safe Trust may be running a scam and advises caution when interacting with the entity.

Deutsche Bank Expands Investment Banking in South Korea

Deutsche Bank has announced an expansion of its investment banking capabilities in South Korea and is re-entering the local debt capital market. This move is marked by strategic appointments, including hiring Adele Moon as the Head of Debt Capital Market (DCM) for South Korea.

Based in Seoul, Moon will work towards expanding Deutsche Bank's client footprint and augmenting its robust advisory business. The bank has also hired Shinna Oh to develop relationships with corporates and global sponsors in Seoul. This strategic recruitment underscores Deutsche Bank's commitment to strengthen its South Korean financial market position.

MAS Plans to Boost Anti-Money Laundering Defences

The Monetary Authority of Singapore (MAS) is initiating a public consultation on a revised framework to strengthen surveillance and defense against money laundering risks in Singapore's Single Family Office (SFO) sector. The new framework will introduce a harmonized class exemption for SFOs with specific anti-money laundering requirements.

To qualify for the class exemption, SFOs must meet certain criteria, including being incorporated in Singapore and maintaining a business relationship with a MAS-regulated financial institution for anti-money laundering checks. The proposed framework aims to monitor better SFOs operating in Singapore and mitigate any money laundering risks.

ICE Delists Bakkt Bitcoin Contracts

Intercontinental Exchange (ICE) has delisted all Bakkt Bitcoin futures contracts, except for the ones expiring in August and September, and Bakkt Bitcoin options contracts from last Friday. The exchange operator announced that it will no longer list Bakkt Bitcoin futures and options on its platform.

"The August and September 2023 expiry months will continue to be listed for trading through their regular Last Trading Days, which are August 24 and September 28, 2023, respectively," the announcement added.

New Zealand's FMA Announces New Market Standards

New Zealand's regulator, the Financial Market Authority (FMA), announced on Monday standards designated Financial Market Infrastructures (FMIs), which are multilateral systems enabling electronic payments and financial market transactions.

The new standards will come into effect on 1 March 2024 and were issued following two rounds of public consultation.

"Most of us don't think about the underlying infrastructures we rely on for daily economic life, but we can be severely impacted when something goes wrong," said New Zealand central bank's Deputy Governor, Christian Hawkesby. "If a designated FMI failed or encountered problems, electronic payments and financial market transactions could be severely disrupted. This, in turn, could have flow-on impacts for New Zealanders, our financial system, and the wider economy."

The CEO of Capita, Jon Lewis to Retire

Jon Lewis, who has been heading Capita as the CEO and Director since December 2017, has decided to retire and will step down from his role at the end of 2024. He will remain with the company until July 2024 to ensure a smooth transition of responsibilities. Capita has named Adolfo Hernandez as the CEO designate.

"It has been a privilege to lead the turnaround of Capita over the past five years," said Lewis. "I remain fully committed to delivering the Group's strategy and enabling a smooth transition to Adolfo as the new CEO over the coming months."

Former Aussie Investment Manager Charged for Fraud

Brett Paul Trevillian, a former investment manager in Australia, is facing four charges for making a false document to obtain a financial advantage. He was arrested on 20 July on an arrest warrant obtained by the Australian Securities and Exchange Commission (ASIC) and was released on bail on 28 July.

According to ASIC, Trevillian, who served as the Director of Metal Alpha Pty Ltd and the former investment manager of Trading Life Services Pty Ltd, created four forged portfolio performance verification reports between May 2019 and October 2019 and provided them to potential investors. All of these documents are allegedly fraudulent.

Trevillian is now looking at a maximum prison time of ten years for each charge.

Payment Platform Optty Adds Crypto Gateway

Optty has partnered with Triple-A, a licensed crypto payment gateway, to add cryptocurrency options to its existing payments platform. It will leverage Triple-A's white-label crypto payment gateway to broaden its payment options.

Triple-A is a crypto payment gateway licensed and registered in Singapore, Europe, and the United States.

"As the world's first true universal payments platform, Optty is agnostic and supportive of payments inclusion, a unique position that is designed to help retailers offer more choice than ever at checkout," said Natasha Zurnamer, the Founder and CEO of Optty.

"With one simplified integration, not only can retailers access over 90 BNPLs and local payment methods in over 120 countries — they can now switch on crypto payments, a natural progression in our aim to simplify payments for retailers all over the world."