Cryptocurrency

Chen Zhi was arrested in Cambodia in January and extradited to China, Beijing confirmed on 8 January. The US has indicted Chen on alleged multibillion-dollar fraud and the US Department of Justice seized $15bn in bitcoin linked to him. Singapore seized S$500m and Taiwan seized more than T$5.5bn in assets allegedly related to Prince Group. The Jin Bei casino in Sihanoukville is shuttered with its signage covered and its doorway blocked.

The definition of financial assets now includes CBDCs, specified electronic money products and interest from crypto-related assets. Crypto-asset service providers and designated financial institutions are required to report transactions and holdings in those assets to tax authorities. The definition of depository institutions has been expanded to cover accounts representing electronic money or holding CBDC, and CBDC accounts held for customers are treated similarly to deposit accounts in specified cases. Banks and depositories must record detailed information on holdings, joint accounts, controlling persons, equity interests and account types; the requirements apply to existing and new accounts with exclusions for certain depository accounts with year‑end balances below $10,000.

Capital requirements do not change based on how a security is issued or transferred, including via blockchain. An “eligible tokenized security” is defined as a tokenized asset with the same legal rights as the non-tokenized version, including the same claim on cash flows or ownership. For eligible instruments, banks apply the same risk weights and capital rules used for the traditional form. Tokenized bonds or stocks that meet the definition of financial collateral can be recognized as collateral under existing rules using the same haircuts and conditions. Risk management expectations include controls for cyber-risk, smart-contract bugs, settlement risk, and compliance with other laws beyond capital rules.