Crypto to Fail Fundamental Test, BoE Says

Bank of England senior adviser belives digital assets have no value and they are slower
22 January 2019   656

Bitcoin and other cryptocurrencies do not pass basic tests of financial services, but still pose a threat to the stability of the traditional economy. This was stated by Bank of England senior adviser Hugh van Steenis in an interview with Bloomberg.

According to him, digital assets have no value, they are slower in circulation and cannot be considered an ideal unit of exchange.

He pointed out that the biggest problem for the Bank of England is the regulation of cryptocurrency turnover, in particular, the regulation of the activities of new members of the banking system.

What I love when meeting with Fintechs is their obsession with customers. The challenge is will they get customers before the traditional banks can innovate.

Hugh van Steenis

Senior adviser, Bank of England

At the same time, Hugh stressed that the transition to digital technologies, as well as the implementation of fintech solutions, are on the list of priorities of the Bank of England.

According to him, traditional companies and banks somehow adapt to the threat from fintech. However, this can be said with certainty when the technological costs for these goals exceed 25% of the total budget of financial institutions.

Recall that in December 2018, the Financial Action Task Force on Money Laundering (FATF) called on the UK government to strengthen oversight of the cryptocurrency industry.

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   233

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.


Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.