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Author Archives: David Drake

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David Drake, Contributing Journalist.Reach him directly at

How Singapore’s Monetary Authority Efforts Could Foster Partnership between Banks and Crypto Firms

  By David Drake   Singapore is a country that has been building a good reputation in the world for its favorable investment environment. But beyond having a strong economy, the Singaporean government has offered support to the cryptocurrency industry and has legally allowed the use and trading of crypto with a view of gaining first-mover advantage over other countries. It is for these reasons that cryptocurrency firms have moved to set up business in Singapore. For instance, Binance, the world’s largest cryptocurrency exchange by trade volume has a license to offer exchange services in the country. The company even chose to test its fiat-to-crypto service on its cryptocurrency trading platform in Singapore. Despite these strides, crypto firms in the country have lamented over a lack of regulatory clarity in the country, a factor that has been impeding their operations as some companies were unable to open bank accounts. In ... Read More »

Bitcoin Takes Nosedive After Investors React to IMF Ruling

  By David Drake   In its World Economic Outlook published last month, the International Monetary Fund (IMF) cited that vigorous growth of digital currencies and the premature celebration of the cryptocurrency movement could potentially create vulnerabilities within the international financial system (IFS). Immediately after the IMF made this announcement, prices of major cryptocurrencies, including bitcoin, plummeted, resulting to a $13 billion loss in total market capitalization within minutes. Skeptics of this viewpoint are of the opinion that these ‘vulnerabilities’ come in the form of a system of cross-border payments which are outside the control of the IMF. This challenge has left the 189-member group considerably nervous about the future considering the rapid growth and acceptance of cross-border payment systems in influential countries such as Singapore. Key Vulnerabilities As governments and individuals rapidly take to digital financial assets, world bodies fear they will not be able to manipulate or control ... Read More »

Crypto firms opening bank accounts: relation to Singapore cryptocurrency industry success

  By David Drake   Singapore is among the top countries that have a vibrant cryptocurrency industry, coming third after the US and Japan. In a bid to boost cryptocurrency industry growth, the country’s financial regulator, the Monetary Authority of Singapore (MAS) made public its plans to help cryptocurrency firms operating within its borders to open bank accounts locally. Previously, the absence of appropriate regulations has made it difficult for crypto-related businesses to run bank accounts in the country. Even so, this decision by the MAS does not in any way imply that the regulator is relaxing the regulatory environment so as to attract  new cryptocurrency firms to Singaporean market. Creating Jobs The Singaporean government has been keen to boost its economic performance for purposes of creating more jobs. The move by MAS seems to be a strategy to boost financial sector performance and spur economic growth. It is expected ... Read More »

What are Reasons Behind IMF’s Warning Against Cryptocurrencies?

  By David Drake   This past month, the International Monetary Fund (IMF) became the first global financial body to raise alarm over the fast growth of virtual assets and the impact this new asset class could have on the global financial market. The IMF warning comes just a month after the UK government issued a statement that branded the cryptocurrency industry a ‘wild west’. This is not the first time the IMF is raising concerns about cryptocurrencies. In February of this year, IMF’s Chief, Christine Lagarde, went on record saying the Fund was concerned with the fact that digital currencies can be used in illegal financial transactions with ease. This means that global regulatory actions are critical in the industry. According to the Fund, delays in enacting and implementing such regulation only makes the industry more vulnerable to financial risk. John Hoelzer, founder and CEO of ONe Network, agrees ... Read More »

Singapore’s Financial Regulator Supports Companies to Open Bank Firms Despite Strict Crypto Regulations

  By David Drake   Singapore continues to make groundbreaking moves in the cryptocurrency world. The country has been lauded as one of the most crypto-friendly environments despite the fact that the central government has not yet recognized cryptocurrencies as legal tender. In a move that is likely to make the country more attractive to cryptocurrency companies, the country’s financial regulator, the Monetary Authority of Singapore (MAS) expressed willingness to assist cryptocurrency firms to open bank accounts. The MAS managing director, Ravi Menon believes that such a move will foster greater development in the fintech industry. Across the world, countries such as India and China have placed regulatory roadblocks between cryptocurrency firms and banks. This move makes it impossible for businesses operating in the cryptocurrency space. Rise of Cryptos Concerning new cryptocurrency entrants to the market, Menon remains firm which makes it harder for them to conduct financial transactions in ... Read More »

How France Could Become the Leading ICO Destination in Europe

  By David Drake   Like many countries in Europe, France is not new to cryptocurrencies. However, its popularity in the cryptocurrency space is getting better and better. This is because the French Parliament has adopted an initial coin offerings framework proposed by the country’s financial market regulator. According to the regulator, the country is positioning itself to become an ICO hub in Europe. This view is shared by Bruno Le Maire, the minister in charge of economy and finance in France. Le Maire has been reported saying that the country is aiming to become the very first key financial center to put in place a legal framework. Such a framework enables companies that initiate initial coin offerings to demonstrate to potential investors how serious they really are. ICO Visa To run ICOs in France, companies will be required to submit an application for a visa. The application will involve ... Read More »

What are the Long-term impacts of IMF’s Announcement on Digital Currencies?

  By David Drake   Growth of the crypto market has largely been viewed positively by many players in terms of its contribution to the global economy. However, to other economic players, cryptocurrencies are increasingly becoming a risk to both consumers and investors. Just recently, global financial institution, the International Monetary Fund (IMF) stated that there are possibilities that virtual currencies could ‘create new vulnerabilities in the international financial system.’ While noting the possible benefits of cryptocurrencies, the IMF narrowed its concerns to security and their possible utilization in illegal activities. According to the financial agency, the regulatory control issues, hackings and online security threats facing the cryptocurrency industry make it highly vulnerable and that there is likelihood that this could challenge international payment structures and interrupt exchange of goods and services. Short vs Long-Term Impacts To a large extent, the IMF considers the cryptomarket as relatively young, one that ... Read More »

How Binance’s Fiat-to-Crypto Exchange Addresses Key ICO Challenges in Singapore

  By David Drake   The world’s largest digital currency trading platform, Binance, started testing its beta version of fiat-to-cryptocurrency exchange in Singapore a few weeks ago. News about the launch of the fiat exchange were received positively as the country allows the use of virtual currencies and enjoys government support. But Binance’s decision to launch a fiat exchange in Singapore is not surprising at all. This is because the Asian country is considered an international economic hub with fairly low taxes and a technology-friendly atmosphere. Singapore has a reputation of being favorable when it comes to launching initial coin offerings (ICOs). As Binance tests its fiat-to-cryptocurrency platform in the country, expectations are high that it will open up it to all users in the coming months. Such a step will likely increase the success of ICOs in the country. Better User Experience For Binance, the testing of the fiat-to-crypto ... Read More »

Will IMF’s Recent World Economic Output Report have a Long-term Effect on the Crypto Market?

  By David Drake   One sector that is set to experience revolution since the emergence of digital currencies is the financial industry. This is because blockchain, the technology that underlies cryptocurrencies offers several advantages to the sector.  Unlike the current centralised financial systems that are costly, time-consuming and highly dependent on intermediaries, blockchain-based systems tend to be cheaper, fast and intermediary free. With increased popularity, blockchain technology has captured the attention of global financial institutions. In April this year, International Monetary Fund (IMF) head acknowledged that distributed ledger technology behind bitcoin and other digital currencies could increase efficiency of the current financial systems. But in a surprising turn of events, the IMF has recently issued warnings over digital currencies. The global financial institutions has stated that digital currencies “could create new vulnerabilities in the international financial system” in its world economic output publication. Key Concerns In the publication, the ... Read More »

How Google’s Ad Ban Reversal Could Spur Crypto Market Growth in US and Japan

  By David Drake   Earlier this year, Google, Facebook, Twitter and Snapchat banned all advertisements on initial coin offerings (ICOs) and cryptocurrencies owing to increased hacking and fraud incidents in the cryptocurrency space. The ban was aimed at protecting investors from cryptocurrency scams aimed at defrauding them. However, six months later, tech companies seem to be changing their stand over the cryptocurrency advertising ban. Facebook became the first tech giant to reverse the ban and barely a month later, Google has followed the same path. The latter announced last month that it will lift the ban on cryptocurrency advertisements in October. In its revised policy, Google stated that it will only run adverts from cryptocurrency exchanges that are regulated in the United States and Japan. Crypto companies in other countries can, in the meantime, submit applications to place adverts on Google as the tech giant puts in place plans ... Read More »

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