The comments reflect a broader sentiment that has been expressed at the conference, that the bull market is showing no signs of slowing down and is throwing the likelihood of a recession of any size into question (see related article).

This Exchange Protects User Funds by Keeping 98% in Cold Storage (News BTC) Rated: A

A new European exchange wants to protect their customer funds from governments and hackers by regulatory compliance and a special focus on security.

Blockchain.io is a newly announced exchange that intends on enforcing strict rules to comply with both international and local laws, even for future regulations. The company wants to stay regulatory-compliant, audit their records and only approve carefully selected coins in order to make sure that they stay on the right side of the law.

For instance, a variety of simple and complex order types will be featured. Moreover, there are plans to integrate a peer-to-peer (p2p) lending system to let user borrow from a fund managed and maintained by Blockchain.io. The interest rates of such transactions will be based on supply and demand.

Australia

Real Estate Startup Konkrete Gets Backing From Signum Capital (ThirtyK) Rated: AAA

Blockchain startup Konkrete announced it is receiving financial backing from Signum Capital, an investor in blockchain technologies.

Konkrete, which provides a platform for tokenizing real estate assets, is in the midst of raising $3 million. The Melbourne, Australia-based company has $2 million in precommitments with Signum as the lead investor, according to Australia’s Financial Review.

The announcement comes amid a flurry of blockchain-related real estate projects worldwide.

India

Faircent.com drops prime lending rates by 200Bps to 9.99% p.a. for unsecured loans (Economic Times) Rated: AAA

Leading NBFC-P2P Faircent.com on Wednesday announced a reduction in the interest rate on unsecured loans to 9.99% per annum for prime borrowers listed on its platform. According to a statement, the move is a first for India’s lending market, with such an interest rate being the lowest for unsecured loan offered by any private/PSU bank or alternative lending platform in the country, so far.

Faircent says this is the direct result of RBI regulating the peer-to-peer lending sector in India and recognizing it as an NBFC-P2P, thereby unlocking the alternative credit supply into the economy.

SC verdict on Aadhaar Act may make operations expensive for fintech players (Your Story) Rated: A

The Supreme Court of India on Wednesday, while upholding the constitutional validity of Aadhaar, struck down Section 57 of the Aadhaar Act, which allowed the sharing of citizen data with private entities.

Bhavin Patel, co-founder and CEO of P2P lending platform LenDenClub, says,

“The authenticity of data through Aadhaar is really high considering physical documents (like PAN card) can be copied. The costs of verification for delivering ultra-small ticket size loans (of say Rs 5,000) will definitely be a concern. We estimate that there will be a 30-percent increase in costs on physical verification, which will add up to another Rs 100 or Rs 150.  Also, deployment may take a day or more now (in an ideal scenario) since physical verification takes 24 hours at least.”

COAI to examine implications of Supreme Court verdict on Aadhaar linkage with mobile connections (Economic Times) Rated: A

Cellular Operators’ Association of India (COAI) Wednesday said it will examine and assess implications of the Supreme Court judgement, which states that it will not be mandatory for customers to link Aadhaar for mobile connections and bank accounts.

The apex court Wednesday struck down the Section 57 of the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016 that permitted private entities like telecom companies or other corporates to avail of the biometric Aadhaar data.

Loan Rate DOWN: While HDFC, SBI, ICICI, Indusland Bank hike lending rates, this lender bucks the trend (Zee Business) Rated: A

Loan takers are having to pay interest through their noses and there has been no relief in sight for a long time. However, bucking the trend is this new-age online lender. Faircent.com has actually reduced interest rates on unsecured loans by a whopping 200 bps to 9.99% per annum for prime borrowers listed on its platform. This is lowest “lowest” interest rate for unsecured loans offered by any private/PSU bank or alternative lending platform in the country, Faircent claimed in a statement. It further said the reduction in lending rate is the “direct result of RBI regulating the peer-to-peer lending sector in India and recognizing it as an NBFC-P2P, thereby unlocking the alternative credit supply into the economy.”

Significantly, unsecured loans are issued without any collateral and are supported only by the borrower’s creditworthiness.

The Reserve Bank of India (RBI) had hiked repo rate in August 2018 from 6.25% to 6.50% to curb inflation. This affected both the existing as well as future borrowers taking loans from banks. Following RBI decision, several public sector and private banks have increased their Marginal Cost-based Lending Rates (MCLR), making the with borrowers pay higher interest rates and EMIs on their loans. Faircent.com has done the opposite.

Asia

BoT readies peer-to-peer lending service (Bankok Times) Rated: AAA

The Bank of Thailand plans to set regulations for peer-to-peer (P2P) lending service by the year-end, widening opportunities for small-business operators to access financial sources.

The central bank expects to set out regulations to cover all related parties, including P2P lending platforms, borrowers and lenders, said assistant governor Ruechukorn Siriyothin.

Authors:

George Popescu
George Popescu
Allen Taylor
Allen Taylor