Crypto and DeFi Update

JP Morgan executes cross-border transaction using DeFi on public blockchain

JP Morgan’s very first cross-border transaction using decentralised finance (DeFi) on a public blockchain has been completed. The trade was facilitated by the Monetary Authority of Singapore’s (MAS) Proj4ect Guardian in early November as part of a pilot into explorations into DeFi in wholesale funding markets.

The trade was completed using Ethereum layer-2 network Polygon with a modified Aave protocol.

ASIC cracks down on crypto asset promotion by BPS Financial

The Australian Securities and Investments Commission (ASIC) has taken a crypto firm, BPS Financial, to court after allegations that promotions made false or misleading statements. ASIC alleges that BPS made false, misleading or deceptive representations and engaged in unsolicited conduct relating to a non-cash payment facility using a crypto token, Qoin.

The Qoin Facility includes Qoin tokens, a Qoin wallet and a ledger using blockchain technology. Qoin tokens were promoted by BPS to the public and business owners as a way to pay for goods and services offered by Qoin Merchants.

At certain points, ASIC alleges that due to declining merchant numbers, it wasn’t always possible to exchange Qoin tokens via independent exchanges. ASIC does not consider the Qoin Facility to be compliant with financial services law, despite nearly 80,000 people or businesses believing it was due to what ASIC considered false or misleading advertising.