Enforcement

Japan Scrutinises Crypto Exchanges, Industry Body to Release New Rules

21/06/2018

FSA to issue business improvement orders on registered crypto exchanges; self-regulatory industry association to release new voluntary rules on 27 June.

Crypto / Digital Assets

Crypto ‘Poor Substitute’ for Conventional Money – BIS

21/06/2018

Lack of trust, poor efficiency and vast energy use are cited among other reasons for cryptocurrency’s limited potential to replace conventional money in the latest BIS annual report.

Securities / Derivatives

Hong Kong Targets September for OTC Derivatives Margin Rules

20/06/2018

SFC consultation proposes to phase-in IM requirements to avoid market disruption; VM to take effect on 1 September 2019.

AML / KYC

S. Korea FIU to Supervise Crypto Exchanges Like Banks

19/06/2018

Legislation introduced to bring cryptocurrency exchanges under the direct supervision of KoFIU, obligating them to adopt AML/CFT directives including systems to monitor for and report suspicious transactions.

Capital / Liquidity

HKMA Imposes Enhanced Supervisory Arrangements on Indian Bank Branches

14/06/2018

Due to capital deficiencies, the Hong Kong branches of Allahabad Bank, Punjab National Bank and Indian Overseas Bank must hold HQLA equivalent to 100% of unpledged deposits and should not solicit customer deposits, among other measures.

Market Infrastructure

HKMA Adds Two Additional Phases to Cyber Resilience Assessment

14/06/2018

Second phase to cover 60 authorised institutions with higher risk, third phase to cover about 90 remaining institutions; HKMA expressed concern about lack of qualified C-RAF assessors.

Enforcement

China, Hong Kong to Deepen Cross-Boundary Market Surveillance

14/06/2018

Regulators discussed collaboration on market surveillance, intelligence sharing, coordinated investigations, and the establishment of a notification mechanism for cases involving dual listed shares and cross-boundary market misconduct.

Securities / Derivatives

Taiwan, S. Korea Launch ETF Cross Listings

13/06/2018

Cross listed ETFs track tech stocks traded in the two countries; following 2015 MoU that sought to expand cooperation between the TWSE and KRX.

Crypto / Digital Assets

Cryptocurrency Worth $1.1bn Stolen in H1 2018 – Report

12/06/2018

Theft facilitated by $6.7mn dark web marketplace for crypto-related malware; cryptocurrency exchange most vulnerable to attack.