Crypto Corner - June 19, 2018
Square is Granted NY BitLicense, Japan's FSA to Issue 'Business Improvement Orders' to at Least 5 Exchanges and Bank of Korea Rules Out Central Bank Digital Currency
The New York State Department of Financial Services (DFS) has granted digital payments company Square a virtual currency license, or BitLicense, according to a report yesterday. DFS superintendent Maria T. Vullo made the announcement:
"DFS is pleased to approve Square's application and welcomes them to New York's expanding and well-regulated virtual currency market. DFS continues to work in support of a vibrant and competitive virtual currency market that connects and empowers New Yorkers in a global marketplace while ensuring strong state-regulatory oversight is in place."
This marks the seventh BitLicense granted by the DFS, following licenses to Xapo, Inc., Genesis Global Trading Inc., bitFlyer USA, Coinbase Inc., XRP II and Circle Internet Financial.
Nikkei reports that Japan's Financial Services Agency (FSA) will issue "business improvement orders" to at least five crypto exchanges in the country. Among the exchanges targeted are bitFlyer, Quoine, Bitbank, BITPoint Japan and BtcBox.
Upon inspections, the agency concluded there were flaws in the exchange operators' internal management systems, such as measures to prevent money laundering. The FSA intends to hand down the improvement orders by the end of this week.
South Korea's central bank, the Bank of Korea (BOK), has come out against the idea of a central bank digital currency (CBDC), according to a piece in the Korea Times today. The BOK cited concerns of market destabilization that might accompany the adoption of CBDC, as well as characterizing crypto as not being genuine currency.
"We reviewed the possible feasibility of digital currencies as currency; however, our thoughts are that digital currencies have been exposed to various categories of risk associated with credit, liquidity and legal management," Kwon Oh-ik, a researcher at the bank's economic research institute, said in the report. "Digital currencies don't perform as money."
Sam Mowers, Investorideas
Read other editions of the Crypto Corner
Get the Crypto Corner News by email Get Crypto Corner News