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Short-Term Debt Instrument Issued as Digital Securities by iSTOX and CGS-CIMB Securities International

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CGS-CIMB Securities International, an integrated financial service provider based in Asia, and digital securities platform iSTOX have reportedly issued a short-term debt instrument as digital securities.

The SGD 150-million (appr. $112-million) multi-tranche commercial paper will be used to cover operational costs and near-term obligations of CGS-CIMB. The initial tranche of SGD 10 million has been over-subscribed by accredited investors active on the iSTOX platform.

Investors have been offered a 1% APY over a 3-month period. The complete SGD 150-million program is being carried out by using digital securities, with no traditional issuance taking place.

The CGS-CIMB commercial paper is notably the first in a new line of products focused on digital commercial papers, being offered by iSTOX, which also handles digital issuances for various other private market securities, such as funds, bonds and equity. Commercial papers are short-term debt that are issued by firms, with terms ranging anywhere from 1 to 270 days.

The commercial paper market is currently valued at more than $1 trillion in the United States and more than $950 billion in Europe. Asia-based firms are usually more familiar with securing capital via bank loans or bonds or via issuing equity, however, commercial papers are also becoming more common.

The CGS-CIMB digital commercial paper is currently listed for trading on iSTOX’s secondary exchange, allowing investors to cash out prior to the maturity date.

The paper matures after a 3-month timeframe from its issuance, after which investors have the option to subscribe for another 3-month period. If the new tranche gets oversubscribed, then subscribers of the current tranche are reportedly guaranteed an allocation if they decide to roll over their investments.

The 364-day commercial paper program offers several different tranches over the next quarters, up to a maximum of SGD 150 million, an amount that may be further increased if there’s a requirement for that. Taurus Point Capital served as the advisor to CGS-CIMB for this particular issuance.

iSTOX is an international private market platform. Using blockchain or distributed ledger tech (DLT) and smart contract tech, iSTOX has been automating manual processes in the issuance, custody and post-sale management of securities, like the payment of dividends and coupons, real-time ownership tracking, and trade settlements, which takes place instantly via the iSTOX exchange instead of the typical 2 or more business days required by other exchanges.

Carol Fong, Group Chief Executive Officer at CGS-CIMB, stated:

“This is the first commercial paper program we have done in digital securities form, and it allows us to tap an alternative source of funding and a wider spectrum of investors. In working with iSTOX to launch this program, we were pleasantly surprised that it was completed in half the time a traditional issuance would usually take. Through this collaboration, we are keen to explore first-hand what digital assets and exchanges might hold for us as a broker in the future.”

Oi Yee Choo, Chief Commercial Officer of iSTOX, remarked:

“In this commercial paper program, CGS-CIMB as an issuer was able to realize the maximum benefits of digital securities because they chose a 100% digital route, with no traditional issuance carried out alongside it. This significantly reduced the need to work with multiple intermediaries, which made the issuance faster and more cost efficient.”

Established in 2017, iSTOX is regulated by the Monetary Authority of Singapore (MAS).

The Fintech firm is reportedly backed by the Singapore Exchange, Temasek-subsidiary Heliconia Capital and Japan government-backed investors JIC Venture Growth Investments (JIC-VGI) and the Development Bank of Japan (DBJ).

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.crowdfundinsider.com/2021/05/174868-short-term-debt-instrument-issued-as-digital-securities-by-istox-and-cgs-cimb-securities-international/

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Amazon Can’t Stop Spying on You

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.crowdability.com/article/amazon-cant-stop-spying-on-you

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German Digital Bank N26 Scrutinized for Lax AML Complian, BaFin Appoints Special Monitor

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N26, a leading digital bank based in Germany, has garnered additional scrutiny by federal regulators for apparent shortcomings went it comes to anti-money laundering (AML) compliance. Earlier this week it was announced that N26 has been assigned a “special monitor” by the German financial services regulator BaFin.

Two years ago, BaFin filed an order against N26 demanding it prevent money laundering and terrorist financing and to take appropriate internal security measures to guard against abuse.

On Tuesday, May 11, 2021, BaFin issued an order targeting N26 regarding the prevention of money laundering and the appointment of a special representative.

To quote BaFin:

“Specifically, it is ordered that N26 Bank GmbH must remedy deficits in computer monitoring as well as in the identification and verification of customers. Furthermore, N26 Bank GmbH must ensure adequate personnel and technical-organizational equipment to comply with its anti-money laundering obligations. These measures must be implemented within a specified period of time.”

N26 is required to provide continuous reports on progress in implementing change.

BaFin has engendered a fair amount of criticism regarding its handling of the Wirecard scandal. Wirecard collapsed in a spectacular event following the revelation of billions in missing money.  Regulators, as well as certain policymakers, are most likely a bit gun shy following the widespread recriminations by both public and private individuals.

It was reported in March that N26 was seeking to be regulated as a financial holding company – a move that may be a precursor to a public offering of shares but also something that engenders more regulatory scrutiny.

Handelsblatt quoted an N26 representative on the news:

“We recognize that more needs to be done in this area.”

Otherwise, the digital bank has been a bit quiet on the BaFin action.

In January, N26 reported over  7 million individual accounts across 25 markets including over 500,000 customers in the US.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.crowdfundinsider.com/2021/05/175374-german-digital-bank-n26-scrutinized-for-lax-aml-complian-bafin-appoints-special-monitor/

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UK FCA Shares Plans for New Consumer Duty, Will Aim to Offer Greater Consumer Protection for Retail Financial Markets

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The UK’s Financial Conduct Authority (FCA) has shared plans for a new Consumer Duty, which will aim to provide a greater level of consumer protection for retail financial markets for companies to follow.

UK companies are currently required to adhere to FCA guidelines and various requirements to  treat clients fairly and many local businesses have reportedly been delivering the appropriate outcomes for consumers, such as quality products and services at reasonable prices, complemented by high standards of customer service and effective communications.

The FCA now reports that it has seen incidents where consumers may be harmed, such as companies offering information that could be misleading or challenging for clients to understand, thus limiting their ability to properly or accurately evaluate the product/service. This could offer insights into why 1 in 4 or 25% of respondents to the FCA’s 2020 Financial Lives Survey stated that they’re not too confident in the financial services sector and just 35% of survey respondents said that they think companies are honest and transparent in how they do business.

As part of the FCA’s work to address activities or behavior that may result in poor outcomes for consumers, the financial regulator is proposing to expand the current guidelines in order to ensure companies offer a greater level of consumer protection which should enable clients to get good or positive outcomes.

The new Duty will aim to support a shift in culture and behavior for companies, which means that clients always receive products that are appropriate for their needs, that represent fair value and are communicated in a clear and understandable format. This should help, instead of hinder, consumers’ ability to make informed decisions and be confident that they’re getting quality customer service.

Sheldon Mills, Executive Director of Consumers and Competition at the FCA, stated:

“The package of measures we are proposing will enhance our existing rules and is designed to tackle the harms we see in financial services markets, and their causes, as well as put consumers in a stronger position to make good decisions. We want firms to be putting themselves in the shoes of consumers and asking ‘would I be happy to be treated in the way I treat my customers?’. We want consumers to be able to advance their financial wellbeing and build positive futures for themselves and their families.”

The Consumer Duty, which companies will be required to adhere to or be prepared to deal with regulatory measures, reportedly includes enforcement investigations should they fail to do so. It will have the follow elements:

The Consumer Principle, which will aim to reflect the standards of behavior the FCA will be expecting from companies. The wording that’s being consulted on is: “a firm must act in the best interests of retail clients’ or ‘a firm must act to deliver good outcomes for retail clients.’”

Cross-cutting rules that may require several key or desired behaviors from companies, which include taking reasonable and necessary steps to avoid or prevent foreseeable harm to clients, taking reasonable steps to enable clients to pursue their financial goals objectives and to always act in good faith.

It will be accompanied by appropriate rules and guidance that require more detailed expectations for company conduct in relation to the following outcomes: communications, products and services, customer service and price and value.

At present, the FCA consultation is open for comment until July 31, 2021. The FCA says that it is expecting to consult again on the suggested rule changes by the end of the year. The regulator will make any new rule changes by July 2022.

Additionally, the FCA is consulting on the possible benefits of attaching a private right of action to the new Duty, and what any “unintended” consequences of this could be.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.crowdfundinsider.com/2021/05/175361-uk-fca-shares-plans-for-new-consumer-duty-will-aim-to-offer-greater-consumer-protection-for-retail-financial-markets/

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Overfunding: BitcoinPoint Quickly Surpasses £100,000 Funding Target Through Crowdcube Campaign

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BitcoinPoint, a UK-based Bitcoin buying platform, has quickly secured its initial £100,000 funding target through its equity crowdfunding on Crowdcube and is now nearing £200,000. The investment round has already attracted close to 400 Crowdcube investors.

Founded in 2017, BitcoinPoint stated that its in-house software provides the ability to buy bitcoin in stores or online through its mobile app.

We are using the largest ATM network in the UK with over 16,000 machines to allow customers to sell bitcoin and withdraw cash. Our ‘Online Wallet’ is allowing anyone to link his email address to the blockchain and hold some bitcoins hassle-free.”

The company’s mission is notably to create the “Western Union” of crypto and also connect to the global payment system which are bank accounts and cards. BitcoinPoint’s achievements so far include:

  • More than 21,500 transactions and over 2,500 accounts
  • Agreement signed to connect to 320k locations globally
  • Allowed the selling of bitcoin & withdrawal of cash through one of the largest UK ATM network with 16k ATMs
  • Launched an instant bank transfer feature (Open Banking technology)
  • The platform was supporting a network of 25 agents reaching over £200k in monthly transactions prior to lockdown. Down to 7 agents & £58k on transactions in Feb ’21 (YE Mar 21: Rev: £47.8k, EBITDA -£24k)
  • Released a Bitcoin Online Wallet with zero network fees when clients buy

Funds from the Crowdcube round will be used to continue the growth and development of the BitcoinPoint platform/products. The company is now offering 4.99% in equity (£3.14 share price) with a £3.5 million pre-money valuation through the funding round, which is set to close mid-June.

Have a crowdfunding offering you’d like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.crowdfundinsider.com/2021/05/175372-overfunding-bitcoinpoint-quickly-surpasses-100000-funding-target-through-crowdcube-campaign/

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