Fintech Daily Digest

A global study of 216 exchanges found 69% of them do not have complete and transparent KYC procedures. It also found that only 26% had a "high" level of AML procedures.

EOS, Tron surpass Ethereum in popularity with many developers. Some startups are now issuing tokens on competing networks

Blockchain consortium R3's trade finance platform Marco Polo has completed its first real transactions. Marco Polo, which is built on R3 enterprise blockchain platform Corda, successfully facilitated a trade between Germany and China, involving two German firms.

The Reserve Bank of India is drawing on new technology to support its supervision as it looks to keep up with the proliferation of fintech firms in the country, governor Shaktikanta Das said in recent remarks.

Two cryptocurrency exchange portals, DragonEx and CoinBene, have disclosed hacks this week and have both gone into maintenance mode to investigate and improve their infrastructure. DragonEx is believed to have lost over $1 million worth of cryptocurrency, while CoinBebe's losses are estimated at over $45 million, according to industry observers

WhatsApp Pay is still not compliant with data regulations in India. As per the Reserve Bank of India's norms, payment firms must store all their data locally.

Since ICOs and STOs are clearly here to stay it is worthwhile to take a look at what regulators in Asia are doing in response to this.

Payments giant Western Union (WU) is partnering with Stellar (XLM) collaborator Thunes to enable WU clients to transfer funds directly to mobile wallets globally.

The rise in on-chain transactions per day has been due in large part to VeriBlock (VBK), which secures other blockchains through the "Proof of Proof" (PoP) consensus mechanism.

Coinbase has announced that it is giving away 1 billion Stellar Lumens (XLM) (about $106m) to users that are willing to study the Stellar protocol.

Hong Kong has issued its first batch of digital banking licences, giving a mix of traditional financial institutions and Chinese companies a chance to compete for a $15bn pot of retail banking business in the city.

Bitwise research has found evidence that around 95% of all Bitcoin trading volume has been faked by exchanges. Data from 71 of 81 exchanges exhibited patterns that reflected artificial trading volume.

As Japan moves to shorten its settlement window for cash equities, dealers are hoping that distributed ledger technology can reduce the probability of failed trades between domestic and foreign investors.

"Singapore-based exchange DragonEx says it has been hacked for an undisclosed amount in a number of cryptocurrencies."

What happened with Canadian crypto exchange QuadrigaCX would not have happened if it had been licensed under the Bermuda Monetary Authority, because it has rules regarding the custody of master keys and making sure they're not held by a particular individual.

"To provide continued transparency about USD Coin (USDC), we wanted to highlight some data about redemptions and provide some clarity about why making redemptions seamless is an essential element of USDC's success."

"We aim to achieve a number of objectives: to introduce, identify and organize all relevant and meaningful metrics of cryptoasset market share calculation; to develop associations between metrics, and to explain their meaning, application, and limitations so that it becomes obvious in which context metrics can be useful or not, and what the potential caveats are; and to present rich, curated, and vetted data to illustrate metrics and their use in measuring cryptoasset shares in their respective markets. The result is comprehensive guidance into the size of the crypto-economy."

"U.S. Securities and Exchange Commission ("SEC") staff has recognized that blockchains, or distributed ledger technology, could be used to issue and transfer ownership of "Digital Assets" that are securities ("Digital Asset Securities"), depending on the facts and circumstances. The goal of this Q&A is to propose answers to the Division of Trading and Markets' frequently asked questions of interpretation with respect to how broker-dealers may comply with the possession or control requirements of the Customer Protection Rule when carrying fully-paid Digital Asset Securities for the account of customers."

The NY Fed included crypto-related questions in its May 2018 Survey of Consumer Expectations. The survey reveals that a very high fraction of respondents are aware of cryptos and that they hold a wide variety of views on the topic. For example, younger respondents seem to have a more positive view of cryptos than their older counterparts.