Weekly Global News Wrap: Bank watchdog to consult crypto rules; Stablecoins must be regulated like payments, says BoE | Asian Banking & Finance - The Latest News, Headlines, Insight, Commentary & Analysis

Weekly Global News Wrap: Bank watchdog to consult crypto rules; Stablecoins must be regulated like payments, says BoE

And UBS' new digital wealth management platform pulls $3.7b in first year.

From Reuters

The Basel Committee on Banking Supervision will consult on how lenders should shield themselves from crypto assets, as regulators turn up the heat on a growing but risky investment sector.

"The committee agreed to publish a consultation paper to seek the views of external stakeholders on the design of prudential treatment of banks' exposures to cryptoassets," the watchdog said in a statement. The paper will be published in the week of 7 June.

Prudential rules force banks to assign "risk weightings" to each type of asset such as loans or derivatives, which are then added up to determine how much capital should be held.

From Reuters

Stablecoins, a form of cryptocurrency that are usually pegged to a traditional currency, must be regulated in the same manner as payments if they become widely used, according to the Bank of England.

The central bank also said it had made no decision yet about whether to issue its own central bank digital currency (CBDC), a prospect dubbed 'Britcoin' by UK finance minister Rishi Sunak.

"Stablecoins used as money should meet equivalent standards as those provided by commercial bank money, otherwise known as bank deposits," the BoE said. Stablecoin issuers would need to meet capital and liquidity rules, and offer deposit insurance.

From Reuters

UBS’s new hybrid digital wealth management platform has attracted $3.7b in its first year, boosting CEO Ralph Hamers’ plan of winning more business from the lower echelons of the global rich.

The investment bank is making moves to improve its digital services to reach customers outside its super rich core client base, with a new online platform called MyWay open to people with $278,000 (CHF250,000) upwards.

The project, which began in May 2020, has the potential to pull in $30within the next 12 months, a source said. A UBS spokesman confirmed that target and current assets of $3.7b.

Get Asian Banking & Finance - The Latest News, Headlines, Insight, Commentary & Analysis in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Banks have to remain consistent and continuous in testing best practices.
Shares were priced at the top end, at KRW39,000 ($34).
In January, 1.2 million transactions were carried out via the SGQR.
Its launch will require legal changes to the nation’s foreign exchange and IT rules.
But less than half of consumers are impressed with the digital financial services currently offered.
Treasury teams can mobilize liquidity and fund intraday payments in real-time.
Customers have the option to pay their tax balances in full or partially.
About 750 new accounts have been opened in four APAC markets through the new portal.
UnionDigital will be a wholly-owned subsidiary of the Philippine lender.
SmartStream’s Peter Hainz and Amazon Web Services’ Anna Green shared their insights on the advantages of on-demand and highly scalable cloud environments for banks and other financial institutions, as well as the factors hindering its adoption in the region.
This August, the Asian Banking & Finance and SAP will provide insights on the evolving landscape for ESG in financial services.
Thirteen lenders noted that demand was moderately weaker than the preceding 3-month period.
Investors will likely seek signs that private lenders will be able to step up lending once COVID subsides.
It opens up new revenue models and lowers the cost-to-serve.