Klip Wallet’s WalletConnect Integration Includes Access to OpenSea NFTs

XREX secures MPI license from Singapore regulatorTaipei-based cryptocurrency exchange XREX has received in-principle approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution (MPI) license.Photo by Mark König on UnsplashBitCheck payment tool offeringThe approval marks a crucial step for the fledgling exchange business, enabling it to offer digital payment token products and services in Singapore. Once it’s upgraded to a full license, XREX will be able to expand its BitCheck payment tool, currently facilitating transactions involving fiat currencies, stablecoins and various cryptocurrencies.This regulatory milestone places XREX among the approved exchanges, stablecoin issuers, neobanks and payment service providers in Singapore. Since the introduction of the licensing regime in January 2020, the MAS has received over 580 applications for payment services licenses, with fewer than 20 Digital Payment Token (DPT) licenses and in-principle approvals granted to date. XREX now joins the ranks of established entities like Coinbase, DBS Vickers, Circle, Paxos, Ripple and Revolut in receiving approval from the MAS.Taking to X on Friday, the company acknowledged the license award while outlining that the license would mean that it can now start to offer an e-money issuance service, cross-border money transfers, account issuance services, digital payment token services, as well as merchant acquisition and domestic money transfer services.Serving home and overseas marketsWayne Huang, Co-Founder and Group CEO of XREX, emphasized that XREX Singapore will serve as the primary provider of products across the Asia Pacific (APAC) region. Simultaneously, XREX Taiwan will continue to play a pivotal role in product design, engineering, research and threat analysis functions for the company. Positioning itself as the Asia Pacific headquarters for the group, XREX Singapore aims to target emerging markets in the region where access to USD liquidity may present challenges.Christopher Chye, CEO of XREX Singapore, expressed the significance of the approval, noting the thorough scrutiny by Singapore’s regulatory authorities. Chye stated:“Singapore wants to attract responsible actors, and the reality is that doing so necessitates a fine-tooth comb. This is great for Singapore and great for our industry as a whole. XREX is looking forward to introducing cheaper, safer, and faster domestic and cross-border payments for Singapore and emerging market businesses.”It was no secret that the company had been working towards acquiring a license in Singapore for some time. In December 2022, its Singapore team tweeted out such a claim, adding that an MPI license from MAS “is one of the most coveted and well-regarded licenses worldwide.”Highlighting Singapore’s progressive and robust regulatory framework, Nick Chang, XREX Group and XREX Singapore Head of Compliance, said:“Singapore boasts a progressive and robust regulatory framework, offering our users the clarity and confidence they need to access digital assets and use stablecoins.”XREX has also made in-roads into the European market. In May of last year, the company opened an office in Lithuania, while becoming a crypto asset service provider within the Baltic state. Earlier this year the company strengthened its compliance process by integrating transaction monitoring and investigative tools from blockchain analysis firm Chainalysis.

Hong Kong regulators signal embrace of spot crypto ETFsHong Kong has signaled its readiness to usher in spot crypto exchange-traded funds (ETFs), as the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) jointly announced on Friday that they are prepared to accept applications for such funds.Photo by Oskar Kadaksoo on UnsplashUpdated virtual asset-related policyIn a set of circulars released, a joint circular representing both regulators and a separate circular published by the SFC, they outlined the updated policy for intermediaries engaging in virtual asset-related activities.The SFC, responsible for overseeing financial markets in Hong Kong, expressed its openness to applications for the authorization of funds with exposure to virtual assets, specifically mentioning virtual asset spot exchange-traded funds (VA spot ETFs).This move expands beyond the existing crypto futures ETFs, demonstrating Hong Kong’s commitment to adapting its regulatory landscape to the evolving crypto market. It also builds on positive commentary made by SFC CEO Julia Leung on the subject last month. Leung stated that the regulator was open to the notion of retail participation in spot crypto ETFs in Hong Kong.Leung stated:“We welcome proposals using innovative technology that boosts efficiency and customer experience. We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”Use of license platformsFriday’s SFC circular emphasized that transactions conducted by these ETFs must occur through SFC-licensed crypto platforms or authorized financial institutions. The SFC outlined that both in-kind and in-cash subscription and redemption methods are permissible for SFC-authorized spot VA ETFs, providing flexibility in fund management.Custody requirements were also addressed, with the SFC specifying that the trustee or custodian must delegate its crypto custody function exclusively to an SFC-licensed Virtual Asset Trading Platform (VATP) or entities meeting the crypto custody standards set by the HKMA.Industry responseThese latest circulars from the regulators have prompted a response from the industry. The Hong Kong Stock Exchange has reacted, welcoming the announcement. It believes that such a move would serve to strengthen Hong Kong’s position as a digital asset hub in the region. The exchange already lists a number of crypto futures ETFs, with multinational investment bank UBS having recently extended access to these products to its Hong Kong-based high-net-worth clients.While the regulatory landscape in the United States in 2023 has proven to be hostile, one very positive development appears to be ongoing work towards spot bitcoin ETF approval. Although still a matter of speculation, many industry commentators believe that approval will come through on Jan. 10. The advent of spot bitcoin and crypto ETFs in both eastern and western markets would likely make for an extremely bullish 2024 for the industry.Hong Kong’s move towards spot crypto ETFs aligns with its proactive stance in adapting to the rapidly evolving crypto landscape. The regulatory framework, as outlined in the circulars, reflects a balance between fostering innovation and ensuring investor protection. The city’s financial authorities have taken a comprehensive approach to review and update policies, once again signaling their ongoing commitment to embracing the growing role of virtual assets in the financial world.

Hong Kong unveils comprehensive tokenization regulationsChristopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, shared a roadmap for upcoming regulations within the tokenization sector during his address at the Hong Kong Fintech Week 2023.Photo by Simon Zhu on UnsplashJPEX no hindrance to Web3 growthHui’s announcement at the event on Thursday comes on the heels of the JPEX scandal, a Dubai-based crypto exchange that collapsed amid allegations of having defrauded Hong Kong-based platform users. Hui emphatically stated that the JPEX incident would not deter Hong Kong’s commitment to expanding the Web3 market. Hui stated:“We’ve been asked many times whether JPEX will affect our determination to grow the Web3 market — the answer is a clear ‘no.’”In June, Hong Kong implemented new regulations for cryptocurrency exchanges, opening up locally regulated crypto trading services to retail customers via virtual asset service providers (VASPs). However, the majority of the forthcoming regulatory efforts will extend beyond the crypto sector, focusing on areas such as token issuance, wallets and other related components.Regulatory impact on TradFi and DeFiHui indicated the intention to expand virtual asset regulations, suggesting a potential impact on decentralized finance (DeFi). The planned regulations within the tokenization domain are poised to influence not only the crypto industry but also traditional finance (TradFi).These regulations include the issuance of a circular concerning intermediaries engaging in tokenized securities. Additionally, they entail a circular regarding the tokenization of Securities and Futures Commission (SFC)-authorized investment products. Lastly, they’re inclusive of consultations with banks on digital asset custody services with the involvement of the banking regulator. Furthermore, a joint consultation on stablecoin regulations will be issued by the Treasury and the Hong Kong Monetary Authority (HKMA).Focus on positive impact of tokenizationEddie Yue, CEO of the HKMA, echoed Hui’s sentiments by discussing the positive impact of tokenization. He anticipates that tokenization will fuel the adoption of blockchain payments, particularly involving stablecoins and tokenized deposits. Yue believes that central bank digital currencies (CBDCs) will serve as the foundation and a crucial element for achieving interoperability within this ecosystem.He emphasized the need to tackle crucial questions, such as the legal definitions of tokenized securities and whether Delivery versus Payment (DvP) can be successfully implemented for tokenized securities. Additionally, Yue pointed out the intricate legal considerations and interoperability challenges that are currently being discussed within the central bank community.First tokenized green bond issuanceYue also highlighted Hong Kong’s first-of-its-kind issuance of tokenized green bonds in February and revealed that discussions with the industry are already underway for the next bond.“We, ourselves, assisted the government to issue the world’s first-ever tokenized government green bond earlier this year in order to demonstrate the compatibility of Hong Kong’s legal and regulatory environment with this very new issuance format,” he stated. However, despite the promising outlook, Yue remained grounded on the subject, acknowledging the significant challenges in the tokenization landscape.In a related development, HSBC recently disclosed that it is conducting experiments with tokenized deposits in collaboration with Ant Group as part of the HKMA sandbox.