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Why Facebook’s Libra cryptocurrency has banks and regulators scrambling to respond

(FILES) In this file photo taken on May 1, 2018 Facebook CEO Mark Zuckerberg speaks during the annual F8 summit at the San Jose McEnery Convention Center in San Jose, California. – Facebook is leaping into the world of cryptocurrency with its own digital money, designed to let people save, send or spend money as easily as firing off text messages.”Libra” — described as “a new global currency” — was unveiled June 18, 2019 in a new initiative in payments for the world’s biggest social network with the potential to…

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Facebook’s Libra cryptocurrency may spell bad news for Hong Kong and mainland payment services – if regulators don’t step in first

The internet is buzzing after Facebook’s announcement of its new blockchain and cryptocurrency project, Libra – the company’s attempt to break into the global payments space and establish itself as a major player. The new currency will be managed by the Libra Association, a Switzerland-based non-profit organisation which will include many other members. Facebook also announced a digital wallet application, Calibra, where users buy, sell and trade the token.Use of the terms “blockchain” and … Source link

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China’s regulators put city-level banks and rural lenders on notice after the first state takeover of a private bank since 1998

The management of Baoshang Bank, based in Inner Mongolia’s Baotou city, was taken over by the People’s Bank of China and the China Banking and Insurance Regulatory Commission (CBIRC) with immediate effect for a year to contain its credit risk, according to a May 24th statement by the two regulators. Photo: SCMP Handout Source link

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China’s bank regulators take over Baoshang Bank, moving a step closer to breaking up financier Xiao Jianhua’s business empire

China’s central bank and banking regulator have taken over control of a commercial lender linked to disgraced financier Xiao Jianhua, as the authorities take a step forward in breaking up his sprawling business empire.The management of Baoshang Bank, based in Inner Mongolia’s Baotou city, was taken over by the People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) with immediate effect for a year to contain its credit risk, according to a Friday… Source link

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Access to audit papers – state secrets – of mainland companies to help Hong Kong regulator’s investigations

Hong Kong’s accounting regulator will get access to audit papers of mainland companies, considered as “state secrets” in a landmark agreement, which will assist in nine ongoing investigations.Under the memorandum of understanding between the Financial Reporting Council (FRC), the regulator for auditors of listed companies in Hong Kong and a unit of China’s Ministry of Finance, the FRC can request the ministry to get access to the auditor’s papers in the mainland to help with its investigations… Source link

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Police arrest Kangde Xin’s major shareholder in a show of force to support regulator’s crackdown on corporate malfeasance

Chinese police arrested the owner of a company on the Shenzhen Stock Exchange on Sunday, a show of force after the securities regulator pledged to crack down on malfeasance to force the country’s listed companies to improve their corporate governance.Zhong Yu, the 69-year-old former chairman and controlling shareholder of Kangde Xin Composite Material Group, was arrested on Sunday, the public Security Bureau of Zhangjiagang city in eastern China’s Jiangsu province announced via its Sina Weibo… Source link

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ByteDance faces global learning curve as TikTok runs afoul of local regulators

ByteDance, the world’s most valuable start-up, is facing a steep learning curve on its international expansion, as its popular short-video app TikTok gets embroiled in regulatory issues in different overseas markets.TikTok, known as Douyin in mainland China, has become one of the most heavily downloaded apps worldwide since it was launched in 2016, but that rapid growth has been marred by recent problems with regulators in Indonesia, the United States and India.“Those problems suggest a lack of… Source link

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Hong Kong brokers brace for hard times in 2019, urge regulators to speed up access to Greater Bay Area

Hong Kong’s smaller brokerages have lobbied local regulators to introduce measures that would allow them to broaden their ­market to the 70 million residents in the “Greater Bay Area”. Christopher Cheung Wah-fung, a lawmaker representing the financial services sector, said such measures were needed to help smaller companies survive. “The year 2018 was bad, but even tougher times are expected in 2019. The US-China trade war and Brexit have added to market uncertainties. Investors may avoid the stock market in 2019, and it could be tough for small brokers in…

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Hong Kong regulators say IPOs by cryptocurrency businesses are premature, putting Bitmain’s US$3 billion fundraising plan in peril

Hong Kong’s stock market regulator and operator have signalled their reluctance to give their green light to an initial public offering (IPO) by the world’s largest assembler of cryptocurrency mining equipment, while a regulatory framework is still being drafted to ring-fence the disruptive technology. It is premature for any cryptocurrency trading platform – or business associated with the industry – to raise funds through an IPO in Hong Kong before the proper regulatory framework is in place, according to two sources familiar with the matter, speaking to the South China…

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Does the new suspension rule give regulators enough teeth to eject errant firms from Hong Kong exchange?

Dozens of companies could be delisted as soon as next year if a controversial proposal of the Hong Kong stock exchange is implemented, as it looks to improve corporate governance and market quality, but it faces serious opposition from market participants. Hon Kong Exchange’s and Clearing (HKEX) is collecting views from the marketon its proposal that could lead to a company being suspended from trading if the auditor gives an adverse opinion or if there are disclaimers on the financial statement starting from January 1. The consultation period, which started…

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