Latest news with #regulation
Bloomberg
3 hours ago
- Business
- Bloomberg
China Warning on Blind-Box Toys Sends Pop Mart Shares Tumbling
Pop Mart International Group Ltd. shares slumped in Hong Kong after a Chinese state media commentary called for stricter regulation of businesses offering 'blind cards' and 'mystery boxes.' Shares of the Beijing-based toymaker dropped as much as 6.2%, after tumbling 5.3% on Thursday. Shares in Bloks Group Ltd., which sells similar products, fell as much as 7.1%.
CNA
7 hours ago
- Business
- CNA
CNA Explains: Singapore's tightened crypto licensing rules – 'closing the door' or 'raising the bar'?
SINGAPORE: The Monetary Authority of Singapore (MAS) has moved to tighten its regulation of unlicensed cryptocurrency firms operating in the country. Digital token service providers based in Singapore that only serve overseas markets will need to be licensed by Jun 30 – or they'll have to suspend or cease their unregulated activities here. Why is MAS doing this? Experts told CNA the authority was closing a loophole in the industry. 'It's a step towards consistency,' said intergovernmental blockchain advisor Anndy Lian, adding that ensuring digital token service providers meet the same standards could bolster trust. Prior to the regulation, providers targeting overseas markets could sidestep licensing requirements and exploit 'lighter oversight' while operating from Singapore, he noted. 'This move levels the playing field and likely reflects pressure to align with global anti-money laundering efforts,' said Mr Lian. Mr Adrian Ang, a partner at Allen & Gledhill's financial services department, added that it was necessary to support standards set by the global money laundering and terrorist financing watchdog, the Financial Action Task Force. 'Without regulation, the anonymity, speed and cross-border nature of their activities make this sector highly vulnerable to criminal abuse,' he said. How will firms be affected? As of Jun 19, MAS has granted digital payment token licences to 33 institutions, including major players like Coinbase and OKX. While unlicensed digital payment token services can still apply for a local license, MAS has said that it has 'set the bar high' and will 'generally not issue" one. Bitget and Bybit are among the top ten exchange operators by volume that do not have a Singapore licence. A Bloomberg report said Bitget will relocate staff to jurisdictions such as Dubai and Hong Kong, and that Bybit has plans to follow suit. But experts pointed out that it is the smaller firms that will feel the heat. While larger firms have in-house legal and compliance departments and experience in dealing with licensing frameworks, smaller and mid-sized players face an 'uphill task,' said Mr Mike Chiam, a fintech lawyer at Foxtail LLC. 'Many of them relied on operating from Singapore under a 'non-retail, overseas-only' assumption. That assumption no longer holds,' he said. For these firms – which include unlicensed crypto exchanges, over-the-counter brokers and decentralised finance projects targeting overseas markets – compliance costs, legal restructuring or a complete shutdown are on the table, he added. Mr Lian, who knows of many small firms trying to shift out of Singapore since early June, agreed that added compliance costs and processes weigh heavily on these. 'I've seen startups struggle with similar red tape elsewhere, and it risks pushing innovation to less regulated regions if not handled carefully,' he said. What about employees? Mr Chiam said a common question he's had to deal with relates to whether employees whose job scope involves dealing with digital tokens must relocate. Based on his law firm's understanding from employees' enquiries, it has found that such workers are generally not affected by MAS' stricter rules, he said. Practically speaking, employees working for digital token firms do not have to relocate - or at least, that is not the legislative intention, Mr Chiam added. 'On a positive note, employees appear to be interested in knowing how to better comply with regulations and keep abreast of such updates – overall a heightened awareness of the regulatory stance,' he said. An employee from MEXC, who requested anonymity, observed that other centralised exchanges have introduced additional know your customer (KYC) checks and anti-money laundering (AML) frameworks. These policies verify customers' identities, to prevent illicit activity and to comply with global regulations. Although MEXC does not have a local licence, the employee said his colleagues in Singapore have not been significantly affected. 'There are some observed changes within the compliance and legal teams, but for the most part, it is still business as usual,' he said. An employee from Bitget, who also requested anonymity, claimed that about ten members of the customer service team were laid off earlier in June. What does it mean for the industry here? Ms Angela Ang, who heads Asia Pacific's policy and strategic partnerships at blockchain intelligence company TRM Labs, said that while Singapore's approach to crypto may not resonate with everyone, it has been 'very consistent'. 'Firms that are not operating this specific kind of business model should not be unduly alarmed. Crypto businesses can still obtain licences here if they are prepared to have a substantive presence, including servicing Singapore customers,' said Ms Ang. She added that the industry has had 'significant runway' to make preparations since the Financial Services and Markets Act was passed in April 2022. In a media release on Jun 6, MAS also said its position has been 'consistently communicated' for a few years since its first response to public consultation issued in February 2022. It added that based on available information, it was aware of a 'very small number' of providers affected. Allen & Gledhill's Mr Ang agreed that most crypto firms here should have already undertaken licensing considerations prior to commencing their business, as licensing requirements have been 'in force for many years.' Ultimately, the move should not be misread as Singapore turning hostile to digital assets, Mr Chiam said. 'Instead, the law is making it clear: If your fintech wants to use Singapore's framework and reputation, you must meet Singapore's standards,' he said. 'In that sense, Singapore isn't closing the door – it's raising the bar."
Finextra
12 hours ago
- Business
- Finextra
How Evolving Regulation is Enabling Overdue Investment in Payment Hubs
Christina Fransson, Senior Business Development Manager, Enterprise & Instant Payments, FIS Global in her FinextraTV interview at NextGen Nordics discusses the history of centralised payment factories and how they have grown into the modern payment hubs, . From Fransson's perspective, evolving regulation has been a much-needed push for banks to invest in a centralised system like payment hubs and the holistic abilities they provide. She details why this is important and what to expect from the future.
Finextra
13 hours ago
- Business
- Finextra
What Lessons Can Be Learnt from a Decade as a Banking CEO?
Joining the FinextraTV Unplugged studio, Charles McManus, Co-Founder and Board Director, Clear Bank reflected on the lessons, challenges, and highlights of the bank following his departure as CEO. As well as giving context to the history of Clear Bank's evolution, McManus offered some experienced insights into what the most pressing priorities of 2025 and beyond are, from tech to regulation.
CTV News
15 hours ago
- Business
- CTV News
‘Investors lost all of their money': B.C. cannabis executive fined $5K, banned from market for 6 years
The B.C. Securities Commission is an independent provincial government agency that regulates capital markets. THE CANADIAN PRESS/AP, Frank Jordans A former cannabis company director has reached a settlement with a B.C. financial regulator over the illegal distribution of securities. Christine Mah was a director of RoccaVerde Wellness Corporation from November 2018 to March 2019, according to the settlement agreement she reached with the B.C. Securities Commission this week. During that period, the company distributed securities to investors 14 times, raising $133,500 in the process. Despite being listed in the company's marketing materials as part of the management team with the title 'controller,' Mah did not take any steps to ensure that RoccaVerde complied with the prospectus requirement in B.C.'s Securities Act. All securities issuers in the province are required to file a prospectus, which the BCSC describes as 'a formal document providing details of an investment,' unless they qualify for an exemption under the act. RoccaVerde did not have an exemption. 'All of the investors lost all of their money,' the settlement agreement reads. In the agreement, Mah admitted to her misconduct and agreed to pay a $5,000 fine. She also agreed to resign any position she held as a director or officer of a securities issuer or registrant, and to be banned for six years from holding or acting in any such role. Mah is also banned for six years from purchasing or trading in any securities or derivatives except in her own account through a registered dealer to whom she has provided a copy of the settlement. In accepting Mah's settlement proposal, the BCSC considered her early admissions, co-operation with investigators and expressions of remorse as mitigating factors in the case. Mah has never been registered under the Securities Act and has no history of securities regulatory misconduct, according to the settlement agreement.
