UPI gets an upgrade, Crypto Crackdowns And Blockchain Bonanza with Solana, Stripe and more

Get ready to ignite your fintech spark! This week's news wrap is packed with game-changing developments that will revolutionize the way we think about money, security, and innovation. From the battle against crypto scams to the dawn of new regulatory eras, to Russia’s crypto developments, we're witnessing a seismic shift in the financial landscape. Join the Fintech Chronicler as we explore the most groundbreaking stories that will shape the future of finance!

India

1.?????? Processing 50 crore transactions per day was not brag worth enough, because Reserve Bank of India (RBI) wants UPI to do more. And that is what led them to launching Delegated Payments on UPI , through which a Primary account can allow Secondary users, to make payments through their UPI IDs, upto a certain limit. I certainly do understand Parents wanting to let their children use their accounts for the pocket money expenses, while keeping an eye on where their wards spend money on. But truly, this feature, if it doesn’t have adequate balances in place and really strong security protocols, it can become every digital scamsters wet dreams come true. I mean, how do I legitimately prove, that I do intend to allow Person A to access my funds, and how would the network know whether or not Person A is indeed who they claim to be? Name matching is one tactic, but honestly in India, where family feuds abound (no reference to a certain rich big brother bailing out his pauper brother from jail here), will that even be foolproof?

2.?????? Continuing on the topic of scams, many of us have been scammed by a lot of these fake loan apps. And while the government has been working hard to ban app, especially those with a Chinese tie to it, the sad reality is, many people still fall victim to such unscrupulous apps. The RBI has a solution! A Public Repository Of all Digital Lending Apps . How will this help us? Well, if a digital lending app claims to be associated with a well known regulated entity, like a Bank or an NBFC, customers can use the repository to do a quick look up and verify the claim. Further, if any apps are trying to connive their way out by quoting exorbitant rates of interests to customers, and then resort to unethical practices to recover the payments, well, customers will be armed with knowledge to protect themselves. But the question remains. In a country with such low financial literacy, can such an education based effort help lower the number of digital crimes being committed?

3.?????? Looks the WazirX starring Financial crime thriller of $239 Million , still has a few more climatic scenes to it. This Indian crypto exchange, born in 2017, thought its multisig wallet was Fort Knox. Spoiler alert: it wasn't. July 18th, boom! Hackers Waltz making it look like a rerun of Money Heist Episode 1.

WazirX 's compromised wallet had six signatories: one from Liminal and five from WazirX. The breach was attributed to discrepancies between the data on Liminal’s digital custody platform and actual transactions on WazirX. While Liminal insisted its platform remained secure, WazirX pointed fingers back, suggesting compromised machines on their end were the culprit.

In response to the hack, WazirX announced on August 8 that it would restore the balances of all affected accounts and nullify trades made after the withdrawal suspension on July 18. This move aims to ensure an "equitable outcome" for users. All trades between July 18 and July 21 will be canceled, and users' portfolios will revert to their pre-hack state. Additionally, any fees and referrals from these trades will be reversed.

USA, Canada and LatAm

1.?????? Looks like Customers Bank just got a not-so-friendly visit from the Fed's financial fashion police !

This crypto-friendly bank, once the darling of digital asset firms, has been caught with its compliance pants down. The Fed's basically saying, "Your anti-money laundering outfit is so last season, darling!"

Customers Bank 's client list reads like a Who's Who of crypto royalty - Galaxy Digital l, Coinbase , Circle - but apparently, they've been playing fast and loose with the rulebook. It's like they were hosting a wild crypto party and forgot to check IDs at the door!

Their CBIT platform, meant to be a 24/7 dollar disco for crypto clients, is now under the Fed's spotlight. Talk about a party pooper!

Now, Customers Bank has to write a bunch of "I promise to be good" notes to the Fed and ask for permission before making any new crypto friends. It's like they're grounded and have to ask Mom and Dad before going out to play.

2.?????? Solana Foundation is a blockchain that is not only known for its speed and efficiency of processing transaction using its unique? Proof-of-History Protocol, but also for developers launching Memecoins. With the blockchain allowing for smart contracts to be easily configured and deployed on their networks, the Sol to ETH price has seen a huge surge in the recent days. And seeing an opportunity, Brazil’s Securities and Exchange Commission (CVM) has greenlit a spot SOL exchange-traded fund (ETF). Makign it one? of the first such products to be aunched globally. Does this mean we may also get to see a SOL ETF in the US soon? Long shot I’d say. Why? Because even given the inconsistent nature of the Howey test, Solana just doesn’t seem to make the cut.

Europe, Middle East and Africa

1.??? Stripe 's swiss Knife of payment products just keeps getting better by the day. And recently they launched a plug and play widget for developers to embed into their product offering, that can accept payments in bitcoin (BTC), Ethereum (ETH), Solana (SOL), Stellar (XLM), and USD Coin (USDC). And we have Bitstamp playing wingman in this Fiat-to-Crypto Tango with Stripe. In fact Bitstamp even dressed up for MiCA, the EU's new crypto fashion police. They've given EURT or the euro-denominated stablecoin the boot to comply with MiCA, and are now more picky about their EMTs (electronic money tokens) than a sommelier at a wine tasting.

2.?????? The Central Bank of Saudi Arabia is teaming up with Ripple to revolutionize cross-border payments . This power couple is set to make international money transfers faster, cheaper, and more efficient. But that's not all - the UAE's central bank is also exploring blockchain options for interbank payments, and they're being picky about it. Only a select few made the cut, like R3 Corda and Hyperledger Fabric. Meanwhile, Ripple's already making waves in Saudi Arabia, where they're helping banks settle payments in real-time. And let's set the record straight - despite the rumors, Ripple isn't partnering with Amazon (at least, not yet!). So, what does it all mean? For one, it shows that financial institutions are finally waking up to the potential of blockchain. And two, it highlights the importance of fact-checking in the Wild West of crypto news

Asia & Australia

1.?????? Russia, amidst all the ban from SWIFT and other countries boycotting their currency, has passed 2 very crucial bills. The first one allows for Bitcoin Mining, and the Second allows their central banks to experiment with cryptocurrencies for cross border payments. Come November 1, national companies and registered individual entrepreneurs get the green light for crypto mining, courtesy of the Ministry of Digital Development. This regulatory nod from Russia might just prompt other jurisdictions to follow suit, creating a more structured environment for crypto innovation.

Unregistered entities can still join the mining frenzy, as long as they keep their energy consumption in check – a region-specific tightrope walk. This regulatory nod from Russia might just prompt other jurisdictions to follow suit, creating a global crypto landscape where innovation meets legislation. Meanwhile, the Bank of Russia is cooking up a crypto triple threat: testing cryptocurrency for international trade settlements, exchange trading, and a National Payment System-based platform.

2.?????? Can the legal system keep up with fintech's lightning-fast pace? Malaysia and Singapore are leading the charge in cryptocurrency supervision, with unique approaches that set them apart.

Malaysia's ranked top 30 for crypto adoption, with a peer-to-peer exchange trade volume that's no joke. But, its legal framework still needs work - transparency and consistency are key to avoiding regulatory headaches. Singapore, on the other hand, is a crypto haven. Its robust regulatory framework, combined with a skilled workforce, favourable policies, and a thriving startup scene, make it the perfect storm for digital innovation. And, with a projected annual growth rate of 8.79%, its crypto market is set to soar!

3.?????? The Australian Federal Police is on the hunt, and they're not alone. In a global operation dubbed "Spincaster," the AFP has teamed up with Chainalysis to tackle the sneaky "approval phishing" scam that's drained over $4 billion from crypto wallets worldwide . So far, they've identified over 2,000 compromised Aussie wallets and are working with top exchanges to prevent further losses. It's a borderless crime, but by sharing intel and expertise, they're closing in on the culprits. As Chainalysis' Phil Larratt says, "It's a relentless fight, but together, we can disrupt the global scam epidemic."

AI in Crypto

1.?????? Aelf and ChainGPT are joining forces to revolutionize the blockchain space with a shot of AI adrenaline! This dynamic duo aims to turbocharge aelf 's platform with cutting-edge AI tools like chatbots, NFT generators, and smart contract whizzes. The goal? To create a smarter, more intuitive blockchain that's as user-friendly as it is innovative. Brian Liang, Aelf's COO, is stoked to empower devs with these advanced tools, while Ilan Rakhmanov, ChainGPT's CEO, is all about driving Web3 innovation with scalable AI solutions. The partnership will roll out in phases, starting with AI chatbots that'll make user support a breeze. Next up, Aelf will integrate ChainGPT's decentralized AI magic, including NFT and smart contract generators, AI trading assistants, and a launchpad that's off the chain! This power couple is set to raise the bar for AI in blockchain, making it more efficient, scalable, and awesome.

That's a wrap for this week's fintech news! From India's push for digital payments to Russia's crypto-friendly regulations, it's clear that innovation is happening at breakneck speed. As we see more collaboration between governments, institutions, and tech players, one thing is certain - the future of finance is looking brighter (and more secure) than ever. Stay tuned for more updates, and thanks for joining us on this wild ride!