Watch | Singapore Payment License Waiver Buffers for 4 Months, Exchange Faces Final Test

Summary

Singapore announced a list of payment service license exemptions. Digital currency payment services have only a four-month "buffer period", and digital currency transactions will eventually face difficulties in obtaining licenses. The Monetary Authority of Singapore announced a list of PSA licence exemptions, and digital currency payment services have only a four-month "buffer period". Recently, the Monetary Authority of Singapore (MAS) officially announced the list of exempted companies for payment service operating licenses. For digital currency-related payment services, including exemptions from Binance, OKCoin, BitStamp, BHEX, Binance, Coinbase, CoinCola, TenX, Upbit, ZB, HashKey (HashKey Hub and HashKey Tech), and FEU under Huobi Group All companies can legally operate in an exempted state before the official license is issued. The exemption period for digital currency payment services ends on July 28 this year. For entities providing digital currency payer services (including digital currency exchanges, etc.), if the enterprise has not obtained a specific payment service license before the exemption period ends (July 28, 2020), these enterprises will be banned from Singapore Launch payment services.

Digital currency exchanges, wallet dealers and other service organizations face certain difficulties in obtaining licenses, and face life and death tests 4 months later. According to the Monetary Authority of Singapore, all digital currency exchanges, wallets and OTC platforms and other related service providers that are payment tokens (including BTC, ETH, etc.) must meet relevant anti-money laundering regulations and apply for corresponding licenses for compliance Operation; at the same time, in order to protect consumers and merchants, the holder must protect customer funds from bankruptcy through four prescribed methods. For the current digital currency exchanges, no matter whether it is anti-money laundering regulations or Singapore's "exemption from bankruptcy guarantees", there are no small thresholds for conditions. After this exemption period, obtaining licenses faces certain difficulties. Therefore, whether digital currency exchanges can meet the above conditions during the 4-month exemption buffer period becomes their final test in Singapore.

The International Organization of Securities Commissions report believes that global stablecoins may fall into the category of securities regulation. According to the latest report of the International Organization of Securities Commissions (IOSCO), global stablecoins will be very likely to be subject to securities laws. The International Securities Regulatory Commission said that if a cryptocurrency project develops into a financial market infrastructure (FMI), it "may follow" the principles of FMIs (PFMIs) set by the Bank for International Settlements. The report also pointed out another potential obstacle in the development and implementation of stablecoins. "For some systemically important stablecoins, compliance with the high standards of PFMI may be a challenge, especially those that are partially or highly decentralized Systemically important stablecoins. "

Last week's market review: Chainext CSI 100 rose 1.5%, and the AI ​​performance in the segment was the best. From the perspective of subdivisions, payment transactions, IoT & traceability, entertainment and social, commercial finance, and AI are better than Chainext CSI 100 average levels, which are 5.08%, 4.48%, 3.9%, 6.77%, and 17.87%, respectively. The performance of the basic chain, storage & computing, and pure coins were all lower than the Chainext CSI 100 average levels, which were 0.5%, 0.17%, -4.43%, and -0.18%, respectively.

Risk Warning: Uncertainty in regulatory policies, and the development of blockchain infrastructure is not up to expectations.

I. Singapore payment license exemption buffer for 4 months, exchange faces final test

Event: The Monetary Authority of Singapore announced a list of payment service license exemptions. Digital currency payment services have only a four-month "buffer period", and digital currency exchanges face certain difficulties in obtaining licenses. The Monetary Authority of Singapore announced the list of PSA licence exemptions, and the digital currency payment service has only a four-month "buffer period". The Monetary Authority of Singapore officially implemented the Payment Service Act (PSA) from January 28, 2020. Recently, the Monetary Authority of Singapore (MAS) officially announced the list of exempted companies for payment service operating licenses. The entity has obtained licenses and operating rights for specific payment services or digital currency-related payment services during the exemption period. Singapore entities including Alibaba, Alipay, Amazon and other large institutions are on the list. For digital currency-related payment services, including exemptions from Binance, OKCoin, BitStamp, BHEX, Binance, Coinbase, CoinCola, TenX, Upbit, ZB, HashKey (HashKey Hub and HashKey Tech), and FEU under Huobi Group All companies can legally operate in an exempted state before the official license is issued. In addition, the exemption status will expire after the 6-month or 12-month period specified by the MAS, and the exemption period for digital currency payment services ends on July 28 this year; if an entity submits an application for a license under the Payment Services Act, it is The exemption period ends when the application is approved or rejected by MAS. The purpose of this exemption is to provide enterprises with sufficient time to apply for a specific payment service license from the Singapore Financial Supervisory Authority. For entities providing digital currency payer services (including digital currency exchanges, etc.), if the enterprise has not obtained a specific payment service license before the exemption period ends (July 28, 2020), these enterprises will be banned from Singapore Launch payment services.

Digital currency exchanges, wallet dealers and other service organizations face certain difficulties in obtaining licenses, and face life and death tests 4 months later. According to the Monetary Authority of Singapore, all digital currency exchanges, wallets and OTC platforms and other related service providers that are payment tokens (including BTC, ETH, etc.) must meet relevant anti-money laundering regulations and apply for corresponding licenses for compliance Operations. For electronic payment services with an average daily turnover of more than S $ 5 million, it is necessary to apply for a "large payment institution" license; and for "large payment institution" licensees applicable to large service providers, to protect consumers and merchants, the Someone must protect client funds from bankruptcy in four prescribed ways. For the current digital currency exchanges, no matter whether it is anti-money laundering regulations or Singapore's "exemption from bankruptcy guarantees", there are no small thresholds for conditions. After this exemption period, obtaining licenses faces certain difficulties. Therefore, whether digital currency exchanges can meet the above conditions during the 4-month exemption buffer period becomes their final test in Singapore.

The International Organization of Securities Commissions report believes that global stablecoins may fall into the category of securities regulation. According to the latest report of the International Organization of Securities Commissions (IOSCO), global stablecoins will be very likely to be subject to securities laws. IOSCO assumes a stable coin managed by the Corporate Governance Committee, supported by a basket of global reserve currencies, and able to settle on its own private chain. This case model is very similar to Libra. This stablecoin can only be issued to "authorized participants" who buy and sell stablecoin, and can transfer transactions between users' digital wallets. IOSCO found from its hypothetical analysis that this stablecoin may fall within the purview of securities regulators. The International Securities Regulatory Commission said that if a cryptocurrency project develops into a financial market infrastructure (FMI), it "may follow" the principles of FMIs (PFMIs) set by the Bank for International Settlements. The report also pointed out another potential obstacle in the development and implementation of stablecoins. "For some systemically important stablecoins, compliance with the high standards of PFMI may be a challenge, especially those that are partially or highly decentralized Systemically important stablecoins. "

Second, the relevant government news: 14 cities and states in Gansu complete the blockchain service network

China: On March 26, the Dingxi Blockchain Service Network (BSN) passed the BSN Development Alliance network access review and was allowed to enter the Blockchain Service Network. The Blockchain Service Network (BSN) in 14 cities and prefectures in Gansu was completed . The China Blockchain Service Network (BSN) is a global blockchain service infrastructure platform across public networks, regions, and institutions independently developed and deployed by China Mobile, China UnionPay, and other units. Zhang China has a global service network with independent intellectual property rights and China's right to control network access. United States: The Commodity Futures Trading Commission (CFTC), the highest financial derivative regulator in the United States, announced on the 24th local time that all members of the CFTC voted unanimously to adopt guidelines on digital asset retail commodity trading. The guidelines clarify the CFTC's view of digital assets that serve as intermediaries for “delivery”, that is, virtual currencies, indicating that after the 28-day deadline for spot delivery has expired, buyers can use the digital assets they have purchased.

Third, the industry chain related developments: BTC mining revenue rose 30.1% MoM

(The following source website data is updated to March 28.) Last week, BTC added 1.78 million transactions, a decrease of 1.3% from the previous month; ETH added 5.29 million transactions, a decrease of 4.0% from the previous month.

Last week, the average daily income of BTC miners was 10.91 million US dollars, up 30.1% month-on-month; the average daily income of ETH miners was 1.48 million US dollars, up 7.4% month-on-month.

Last week, the average daily computing power of BTC reached 99.1EH / s, an increase of 5.3% from the previous month; the average daily computing power of ETH across the network reached 175.5TH / s, an increase of 0.5% from the previous month. Last week's BTC network-wide mining difficulty was 13.91T, a decrease of 6.6% from the previous month; the next difficulty adjustment date is April 8th, and the expected difficulty value is 12.06 T (-13.34%); last week, the average ETH network-wide mining difficulty was 2.2T, up 0.5% from the previous month.

Fourth, the market review last week: Chainext CSI 100 rose 1.5%, the best performance of AI in the segment

 

We introduced the professional index product of the token market——Chainext CSI series index, where the CSI 100 index [1] represents the overall market trend; the CSI 5 index [2] represents the market's large-cap currency trend; the CSI 21-100 index [3] On behalf of the market in the small cap. The market continued to adjust in the past week. As of last Sunday (March 29), the Chainext CSI 100 index was 531.32, an increase of 1.5% from last week, and the total 24-hour trading volume on Sunday was US $ 59.759 billion; of which, the global average price of BTC was US $ 592.04, a decrease from the previous month 0.12%; the average global price of ETH was 125.58, an increase of 0.34% from the previous quarter.
From the perspective of subdivisions, payment transactions, IoT & traceability, entertainment and social, commercial finance, and AI are better than Chainext CSI 100 average levels, which are 5.08%, 4.48%, 3.9%, 6.77%, and 17.87%, respectively. The performance of the basic chain, storage & computing, and pure coins were all lower than the Chainext CSI 100 average levels, which were 0.5%, 0.17%, -4.43%, and -0.18%, respectively.
risk warning
Regulatory policy uncertainty. At present, the blockchain is in the early stage of development. There is a certain degree of uncertainty in the global countries' supervision of blockchain technology, project financing and tokens, so there is uncertainty in the development of industry company projects. The development of blockchain infrastructure failed to meet expectations. Blockchain is the core technology for solving supply chain finance and digital identity. At present, the blockchain infrastructure cannot support high-performance network deployment. The degree of decentralization and security will have a certain restriction on high performance. The blockchain infrastructure exists The risk of developing less than expected.

This article is an excerpt from the report "Guosheng Blockchain | Singapore Payment License Exemption Buffer for 4 Months, The Exchange Is Facing the Final Test" released by Guosheng Securities Research Institute on March 30, 2020. For details, please refer to the relevant report.