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- UK's FCA Secures Convictions In £1.5M Crypto Fraud
- UBS Pilots Blockchain-Based Multi-Currency Payment Solution
- European Commission Publishes Delegated MiCA Regulations
- Mastercard Joins Buna, The Arab Regional Payment System
- France And Singapore Central Banks Complete Post-Quantum Security Test
- Wise Granted Direct Access To Philippines' Instant Payments System
- UK Parliamentary Committee Launches Inquiry Into Cash Acceptance
- BIS Bows Out Of Wholesale Cross-Border CBDC Project
- Cyprus Considers Banning Cash Transactions Over €10,000
- US CFPB Orders VyStar Credit Union To Pay $1.5m Over Botched System
UK's FCA Secures Convictions In £1.5M Crypto Fraud
The UK’s Financial Conduct Authority (FCA) has secured convictions against two individuals involved in a £1.5m cryptocurrency investment fraud.
Raymondip Bedi and Patrick Mavanga orchestrated the scam between February 2017 and June 2019, defrauding more than 65 investors by cold-calling and luring them to a professional-looking website promising high returns on fake crypto investments.
"Bedi and Mavanga lured investors with promises of high returns on crypto investments, but their schemes were nothing but a callous scam. If you’re contacted out of the blue about an investment opportunity that sounds too good to be true, then it probably is," said Steve Smart, joint executive director of enforcement at the FCA. "If you’re in any doubt, don’t invest."
Bedi pleaded guilty to charges including conspiracy to defraud, money laundering and breaches of the Financial Services and Markets Act 2000. Mavanga also admitted to conspiracy to defraud and using false identification documents, and was convicted of perverting the course of justice for deleting phone recordings following Bedi's arrest in March 2019.
A third defendant will face retrial in September 2025, while a fourth, Rowena Bedi, was acquitted of money laundering charges.
UBS Pilots Blockchain-Based Multi-Currency Payment Solution
Swiss bank UBS has announced that it has developed and successfully piloted "UBS Digital Cash", a blockchain-based payment solution.
UBS Digital Cash aims to increase efficiency and transparency in cross-border payments, and enable programmable money movements for corporate and institutional clients.
In the pilot, transactions with multinational clients and banks were successfully carried out, including domestic transactions within Switzerland and cross-border payments in US dollars, Swiss francs, euros and Chinese yuan.
“The UBS Digital Cash pilot showcased the key advantages of blockchain-based payment solutions,” said Janko Hahn, head of treasury operations at Autoneum, a participant in the pilot.
“They make cross-border transactions faster, on time and provide a seamless traceability, which is a huge benefit when operating in a global market.”
European Commission Publishes Delegated MiCA Regulations
The European Commission has published three new Delegated Regulations under the Markets in Crypto-Assets (MiCA) framework, targeting crypto-asset service providers (CASPs) and financial entities across the EU.
Each regulation, effective from December 30, 2024, introduces new compliance standards for transparency and operational oversight in the digital assets space.
The first regulation outlines detailed information requirements for CASP authorisation applications under Article 62 of MiCA, stating that applicants must submit comprehensive governance, anti-money laundering (AML), business continuity and internal control details.
The second regulation focuses on notification requirements for financial entities providing crypto services, requiring detailed disclosures on AML policies, business continuity and governance measures as mandated by Article 60 of MiCA.
The third regulation establishes a standard methodology for calculating transaction volumes involving asset-referenced tokens (ARTs) and e-money tokens (EMTs). Under Article 22 of MiCA, this framework defines parameters for reporting transaction volumes, ensuring uniformity in data collection and transparency in digital transactions.
Mastercard Joins Buna, The Arab Regional Payment System
Card giant Mastercard has announced that it has joined Buna, a multi-currency cross-border payment system founded by the Arab Monetary Fund (AMF) in 2018.
The collaboration will see Mastercard Move’s money transfer unit use Buna to facilitate cross-border payments into and out of the Middle East and North Africa (MENA) region.
Mastercard’s entry to Buna as a direct participant is the payment system’s first public-private partnership of its kind.
“The collaboration will provide a simple, efficient and practical solution to current challenges that include high costs, long wait times and lack of transparency when moving funds into and out of the MENA region,” Mastercard said in a statement.
“Buna’s Real-Time Gross Settlement service, with its extended operating hours, and Instant Payments System’s 24/7 availability offer a unique advantage for direct participants.”
Buna’s compliance programme also integrates anti-money laundering (AML), counter-terrorism financing (CTF) and sanctions screening protocols both before and after settlement.
France And Singapore Central Banks Complete Post-Quantum Security Test
The Banque de France and the Monetary Authority of Singapore (MAS) have successfully completed a cross-continental experiment in post-quantum cryptography (PQC), designed to protect communications from future cyber threats posed by quantum computing.
Conducted over conventional internet technologies, this project marks a significant step in securing international electronic communications.
The regulators tested quantum-resistant algorithms to sign and encrypt emails, using a hybrid approach that merges current and quantum-safe security. The experiment, conducted via Microsoft Outlook with a PQC plugin, demonstrated enhanced email security for confidential data and compatibility with internet standards.
A report from the experiment underscores the need for broader standardisation to adopt PQC into applications such as key public infrastructure and secure emails.
The results also hint at future applications in payment networks, where PQC could safeguard financial data from emerging cyber risks.
The two regulators intend to extend their collaboration to PQC applications in cross-border financial transactions, emphasising their commitment to fortifying global financial systems against evolving cyber threats through international cooperation.
Wise Granted Direct Access To Philippines' Instant Payments System
Wise has announced that it has been granted permission to connect directly with InstaPay, the real-time payments system of the Philippines, as the company continues to build out its cross-border payment infrastructure in APAC.
The move will enable Wise to process payments to Philippines consumers and businesses in local currency in under 20 seconds.
Wise has also been given permission to settle with the country’s real-time gross payment system, PhilPaSS Plus1, after being granted a settlement account by the country's central bank.
The direct connection to InstaPay is Wise’s sixth connection to domestic payment systems around the world, and comes only one month after Wise became the first non-bank to connect directly to Japan’s domestic payments network.
Wise now has more than 65 licences worldwide, allowing almost two-thirds of its transactions to be completed in under 20 seconds, with an average fee of 0.62 percent.
UK Parliamentary Committee Launches Inquiry Into Cash Acceptance
The UK’s Treasury Select Committee has announced an inquiry into whether new rules are needed to require businesses to accept physical cash, with public hearings potentially starting in December.
The cross-party committee is gathering evidence to assess cash’s role in the economy, especially for the 3.1m people who rely on it almost exclusively.
The inquiry will explore questions such as whether some sectors should be mandated to accept cash payments and the potential costs for businesses, especially smaller ones.
The committee invites public input through its online evidence portal, encouraging responses that highlight the impact of declining cash acceptance on various communities and the broader economy.
BIS Bows Out Of Wholesale Cross-Border CBDC Project
The Bank for International Settlements (BIS) has confirmed that it will exit Project mBridge, an ongoing study of wholesale central bank digital currency (CBDC) for cross-border payments, leaving the project's central bank partners to go it alone.
Agustín Carstens, general manager of the BIS, confirmed that Project mBridge will continue to be led by the central banks of China, Hong Kong, Thailand and the UAE, who launched the project with the BIS in 2021.
“We have been involved for four years, and the project has matured to a point where our partners can continue independently,” said Carstens. He added that the decision was not due to political factors but marks a "graduation" for the project and its members.
In June, the BIS announced that Project mBridge had reached the minimum viable product (MVP) stage, and called for further international participation.
Project mBridge is developing a multi-CBDC platform for participating central banks and commercial banks, built on distributed ledger technology (DLT) to enable instant cross-border payments and settlement.
Cyprus Considers Banning Cash Transactions Over €10,000
Lawmakers in Cyprus are considering a new amendment that would ban the use of cash for transactions of €10,000 or more, according to local media reports.
If successful, the move would amend the Prevention and Combating of Money Laundering Activities Law of 2007.
The proposal is backed by key authorities and financial institutions, including the police, the customs department, the Central Bank of Cyprus, the Association of Cyprus Banks and the Cyprus Securities and Exchange Commission.
Tax commissioner Sotiris Markides has also suggested a gradual reduction of the cash transaction limit to €5,000 and ultimately to €1,000, alongside fines and prison sentences for rule-breakers.
US CFPB Orders VyStar Credit Union To Pay $1.5m Over Botched System
The US Consumer Financial Protection Bureau (CFPB) has ordered VyStar Credit Union to pay a $1.5m enforcement penalty after a failed system upgrade left customers without access to their accounts.
“VyStar and its senior management bungled the credit union’s rollout of a new banking system and left customers stranded without online access to their accounts,” said CFPB director Rohit Chopra. “VyStar’s careless errors inflicted financial harm on their credit union members.”
Following the erroneous online banking rollout in May 2022, VyStar members faced months of limited or no access to their accounts, incurring fees as they struggled to manage their finances.
VyStar's rushed system switch brought banking functions to a standstill, with critical features offline for extended periods.
The CFPB’s investigation, conducted in partnership with the National Credit Union Administration, found that VyStar violated consumer protection laws by failing to establish proper testing protocols, leaving customers financially stranded.
The CFPB’s enforcement requires VyStar to refund affected members’ fees, implement new protocols for future upgrades, and contribute the $1.5m fine to the victims relief fund.
