China's foreign exchange bureau says there is a need to regulate and classify the digital asset sector to improve the country's monitoring of illegal forex transactions.
The exploration is part of Project Cedar, an experiment conducted by the BIS to test the worthiness of wholesale CBDC in cross-border transactions.
South Korea sees a nearly 10% rise in illegal forex transactions tied with digital assets this 2022, forcing authorities to widen the crackdown on the market that led to the arrest of 16 individuals.
The Financial Supervisory Service has discovered KRW1.6 trillion ($1.2 billion) of forex transactions at five Woori Bank branches. Another KRW2.5 trillion ($1.9 billion) were carried out at 11 Shinhan Bank branches.
The banks will settle bilateral transactions using a shared settlement system to process USD, CAD, GBP, and EUR with plans to use the platform to settle other currencies in the future.
DRIVE Pay will run on the BSV blockchain, which will act as the anchoring ledger for the payments network, while the BSV crypto will be used as an intermediary currency to enable liquidity.
The State Administration of Foreign Exchange in China is trialing a trade finance platform powered by blockchain, in the latest move from a centralized agency towards embracing the technology.
The firm confirmed it had reduced costs for its forex business by as much as 25%, in what analysts describe as an example of the importance of distributed ledger technology to banks and their bottom lines.
