Showing posts with label OTC. Show all posts
Showing posts with label OTC. Show all posts

November 06, 2017

Securities Commission Malaysia mmbarks on Blockchain Pilot Project

By Vincent Fong - November 06, 2017 (

Tan Sri Ranjit Singh, Chairman of Securities Commission of Malaysia announced today at the SCxSC Digital Finance Conference 2017 today that the regulator has embarked on a pilot project for distributed ledgers in the unlisted and OTC Market space.

The technology will be deployed to provide more clarity to the OTC and unlisted market space which is largely considered to be opaque due to the lack of information available.

“By using distributed ledger as a technology underpinning the market infrastructure, all transactions and market activities would be recorded and made available to all market participants while maintaining transaction confidentiality” Tan Sri Ranjit Singh added during his opening remark.

The findings from this pilot project will be published as an industry blueprint. This blueprint will elaborate upon the technology architecture, key software functions and development standards which will form the building blocks for interested parties to use blockchain network for unlisted and OTC markets.

This pilot project is done through the aFINity Innovation lab which is an initiative facilitated by the Securities Commission Malaysia (SC) to catalyse greater interest towards the development of emerging technology-driven innovations in financial services.

Tan Sri Ranjit Singh also mentioned during the press conference that Securities Commission will be working very closely with Bank Negara Malaysia in developing a framework for blockchain and cryptocurrency which includes regulations and guidelines to facilitate secondary market trading of established cryptocurrency and digital assets. The framework is slated to be released in the next few months.

When reached for comment on ICOs the regulator maintained that they continue to stand by their earlier public warning statement on ICO in September and encourage investors to fully understand the underlying risk of investing in ICOs. He later added that they are still closely monitoring the space and that the Securities Commission is now a part of the International Organization of Securities Commisions ICO Consultation network, where regulators are discussing the latest development in this space.

October 30, 2017

Is China planning to resume Bitcoin and cryptocurrency trading soon?

By Joseph Young - October 30, 2017 (

CNLedger, a trusted news source within the Chinese cryptocurrency industry, has revealed that OKEX will soon launch peer-to-peer (P2P) over-the-counter (OTC) bitcoin-to-fiat trading platform.

“More OkEx (and likely, Huobi-Pro) will soon launch P2P bitcoin tradings with various fiat currency support,” CNLedger reported. “We believe they’ll support CNY and some others like USD, JPY. They are registered outside China, and are operating independent of OKCoin. They’re not as convenient as exchanges and are less safe (many scammers). But it’s still much better than nothing.”

Aren’t OKEX and Huobi-Pro Now Based in Hong Kong?

OKEX is headquartered in Causeway Bay, Hong Kong, and so are companies including BTCC and Huobi-Pro, which previously operated bitcoin and cryptocurrency trading platforms in China. But, as CNLedger noted, these companies plan to launch P2P OTC markets in Hong Kong, which would allow investors to trade the Chinese yuan (CNY) for bitcoin and other cryptocurrencies.

Without approval from the Chinese government, it would be difficult to process CNY trades and serve Chinese clients, investors, and traders. Hence, if OKEX and Huobi-Pro launch cryptocurrency OTC markets in the upcoming weeks with CNY-to-bitcoin, it would likely be with permission from the Chinese government and the People’s Bank of China (PBoC).

As of current, the majority of trades within the China are processed through unregulated OTC markets such as LocalBitcoins. For Chinese authorities, it would be more beneficial to have regulated Hong Kong companies like OKEX to process trades rather than platforms with no network administrators and intermediaries.

Earlier this month, several state-owned news publications including Xinhua revealed that the Chinese government is concerned with bitcoin and cryptocurrencies being used by underground economies. Xinhua specifically noted that the Chinese government will soon impose “record-keeping, licensing, and Anti-Money Laundering (AML) process,” which is, in essence, are regulatory frameworks for the cryptocurrency market.

“Xinhua News, official press agency of CN: Virtual currencies have become the top choices of underground economies. ‘We shall adopt zero-tolerance policies towards crimes hidden underneath’ and take measures such as record-keeping, licensing, AML processes, real-name, limiting large transactions,” reported CNLedger.

As Japan and South Korea have done in the past few months, it is likely that the Chinese government will introduce and enforce a more strict licensing program for cryptocurrency exchanges, and eventually, resume cryptocurrency trading.

Will Re-election of Chinese President Xi Jinping Fuel Cryptocurrency Trading Resumption

The re-election of Chinese President Xi Jinping, which is expected to fuel the resumption of cryptocurrency trading, is set to occur later this year. Analysts such as Jon Creasy, a bitcoin researcher, emphasized that the reelection of President Xi could very likely lead to the resumption of bitcoin and cryptocurrency exchanges.

Creasy wrote:

“My prediction is this: as soon as President Xi Jinping is reelected — and he will be — conservative, free(er)-trade legislation will be put in place, and Bitcoin exchanges will be reinstated. In fact, I wouldn’t be surprised to see the Chinese government encouraging certain exchanges and cryptocurrencies, once this legislation hits. Historically speaking, President Xi Jinping has been one of the largest advocates of free markets China has seen in quite some time, and I expect this trend to continue.”

Featured image from Shutterstock.