Fintech Daily Digest

Alternative data could be a rich source of alpha, but most asset managers are handling it more like high grade explosives due to the risk of privacy violations.

The US Drug Enforcement Administration demanded a suspected drug dealer's passwords from LastPass (an encrypted vault for storing passwords). LastPass told them to take a hike although it did hand over IP addresses used by the suspect and information about the account's creation and usage.

The National Bank of Cambodia's Project Bakong is a Hyperledger Iroha-based payment system renewal project. A pilot with dozens of banks will soon be launched. The ultimate target is to provide instant payments via a mobile app.

The Learning Coin project is a distributed ledger technology teaching tool for IMF and World Bank staff. LCs are quasi-crypto-assets issued on a private blockchain accessible only to IMF and WB staff. LCs are earned by completing learning assignments.

Central banks around the world are now giving serious consideration to the pros and cons of making central bank digital currencies available to the general public, says a new study from the C.D. Howe Institute.

The Swiss Federal Council has initiated a public consultation on the adaptation of specific federal law provisions to developments in DLT and blockchain, after publishing a very comprehensive report on DLT and blockchain in last December. http://www.mll-legal.com/news-events/news/details/crypto-nation-switzerland-moves-forward-fast-swiss-government-proposes-dlt-uncertificated-rights-wi/

Chainalysis says It's unrealistic and bad to expect crypto exchanges to send KYC information to recipient platforms with every transaction, in response to a draft FATF recommendation.

A "privacy "poisoning" the cyber attack involves loading private data, such as names, addresses and credit card numbers, or illegal material, such as child pornography, into a blockchain, therefore putting the network in conflict with local laws, making the affected chain and its data useless.

Cryptocurrency exchange Coinbase has launched a Visa debit card allowing customers in the U.K. and EU to spend their cryptocurrencies directly from their Coinbase accounts.

The Philippines is catching up to Japan with a growing number of approved cryptocurrency exchanges. The central bank has green-lighted 10 crypto exchanges so far.

"The Mauritius Financial Services Commission (FSC) has clarified the rules applying to projects launching security token offerings (STOs). In guidance published Monday, the FSC said that security tokens are classed as securities as defined in the country's Securities Act 2005, but in digital form."

In an increasingly information-driven world, legal frameworks governing the sharing and use of data in payment services - and awareness of their unintended consequences - are of critical importance. This article explores the dynamics between modernized privacy laws in the European Union (namely, GDPR) and open banking initiatives (namely, PSD2).

Digital Asset is collaborating with ISDA to develop a new tool that can support the use of smart contracts for derivatives trading. The collaboration focuses on creating interoperable technical solutions that advance standardization to allow for greater automation of derivatives trade management.

Two-thirds of banks are thought to be deploying machine learning in their AML efforts, or are close to doing so. US regulators have given tacit approval to the use of technological innovation to combat AML, giving banks more freedom to experiment

"The Bank for International Settlements (BIS) recently released a survey on central bank digital currency (CBDC). This review is in two sections, the first discusses the BIS survey and the second analyses the issues facing central banks as their work on CBDC progresses."

This paper investigates the extent to which terms of, and workflow around, the provisions of ISDA Master Agreements can be automated via smart contracts.

Japanese bank holding and financial services company Mitsubishi UFJ Financial Group is set to put its digital currency MUFG Coin into practical use later this year.

Estonia-based Bibox exchange is to launch bitcoin cash (BCH) and litecoin (LTC) perpetual trading contracts on April 12, with leverage of up to 50x. Priced in tether (USDT) the cryptocurrency derivatives are targeted at both institutional and retail investors.

Trading of institutional Bitcoin investment products have seen growth for the fourth month running, and are rising against US-based crypto exchanges as a percentage of total trading volume.

A Chinese government report has outlined a plan to kill bitcoin mining within its borders. The report, issued by the National Development and Reform Commission (NDRC), lists cryptocurrency mining as an industry that should be eliminated with immediate effect.