Nomura’s Crypto Subsidiary Secures Dubai VARA License

Korean regulator monitors non-listed token amidst peer-to-peer trading surgeThe South Korean financial regulator is closely monitoring BTCMobick, a non-listed token issued by crypto influencer Oh Tae-min, who is known for authoring books like “The Great Bitcoin” and “Bitcoin and the Geopolitics of the Dollar.” The Financial Services Commission (FSC) is cautioning local crypto exchanges regarding the potential for price manipulation should the token be listed.Photo by Daniel Bernard on UnsplashBTCMobick TokenThe BTCMobick token is reportedly being traded peer-to-peer at around KRW 300,000, which is approximately equivalent to $230, in chat rooms of messaging apps like KakaoTalk outside of cryptocurrency exchanges. The token has gained enough traction to spur the emergence of dedicated apps that facilitate these peer-to-peer trades, charging fees for their services. Based on the size of the chat rooms and apps involved, it is estimated that approximately 3,000 participants are trading the token, according to a report by local news website Etoday.As per another coverage by the same outlet, the Virtual Asset Inspection Division of the Financial Intelligence Unit (FIU), which operates under the FSC, has inquired with local crypto exchanges on two occasions — once in September and again this week — about whether they have listed or are planning to list the BTCMobick token. It’s rare for the financial authority to specifically target a particular token when making inquiries with crypto trading platforms.Potential price manipulationAn FIU official explained the rationale behind the agency’s inquiry into crypto exchanges. The official stated that the probe aimed to caution the exchanges about potential price manipulation of the BTCMobick token. The concern is that many crypto users might suffer losses if such a token, which has been experiencing a continual rise in price outside of trading platforms, were to be listed. Currently, legal penalties for cryptocurrency price manipulation fall under the Virtual Asset User Protection Act, which will not be enforced until July 2024. This indicates a regulatory gap in the immediate term.Hwang Suk-jin, a professor at Dongguk University’s Graduate School of International Affairs and Information Security, pointed out that while giving out privately generated tokens to friends or acquaintances doesn’t raise any legal issues, the situation changes once these tokens are listed for trading on exchanges and distributed more broadly in the market. In such scenarios, these tokens can become a source of legal disputes, he explained.Amidst these developments, there are circulating rumors suggesting that BTCMobick is on the verge of being listed on exchanges. An industry insider has mentioned that there are brokers actively spreading these rumors, indicating that the token might soon become publicly tradable.Oh Tae-min’s denial of rumorsMeanwhile, Oh Tae-min, the creator of BTCMobick who has been distributing his token for free, states that the token is part of an experiment intended to mimic the early stages of Bitcoin. However, critics are concerned that the personally issued token has no practical utility. Addressing the circulating rumors about the token’s potential listing on exchanges, Oh asserts that these rumors are baseless and false. He further warns that any brokers spreading such rumors are likely engaging in fraudulent activities.

Dubai approves crypto license for climate-friendly Web3 startupIn a move that shows some potential towards fostering sustainable innovation within the crypto space, Dubai’s Virtual Assets Regulatory Authority (VARA) has granted a conditional license to Web3 Innovations FZE, which trades as “AYA.”Licensed subject to fulfilling conditionsAYA is the Dubai-based subsidiary of Singapore-headquartered Web3 launchpad, incubator and advisory service, Enjinstarter. The license will enable AYA to offer management and investment services related to crypto assets. However, the license remains non-operational at the moment, as it has been awarded subject to the fulfillment of specific conditions outlined by VARA. The conditional license, awarded on Tuesday, has significance as it is indicative of a commitment from the Dubai authorities to supporting environmentally conscious initiatives in the Web3 ecosystem.The license awaits full compliance with VARA’s stipulated conditions and select localization requirements. Enjinstarter’s AYA platform will undergo further regulatory verification and approval once these prerequisites are met, as stated in the official announcement:“The license remains non-operational until the company fully satisfies all remaining conditions and select localization requirements defined by VARA.”Dubai ‘obvious choice’Back in October, Enjinstarter confirmed Dubai as the chosen location for its AYA platform. At the time, Enjinstarter MENA’s Managing Director, Vasseh Ahmed, described it as the “obvious choice.” Vasseh stated:”No other jurisdiction provides the regulatory clarity and sustainability focus we are looking for. Beyond that, there is a palpable sense of action here, specifically in terms of real-world asset regulation and climate action.”Prakash Somosundram, the co-founder and CEO of Enjinstarter and the AYA Foundation, expressed the company’s dedication to adhering to the regulatory process outlined by VARA.Photo by Qingbao Meng on UnsplashClimate-focused launchpadAYA stands out as a climate-focused launchpad, championing sustainability through initiatives such as reforestation, nature credits, mangrove conservation and sustainable agriculture. Beyond its role as a finance platform for green initiatives, AYA actively supports climate action projects, leveraging blockchain and Web3 infrastructure.As AYA works towards fulfilling VARA’s operational license requirements, the company has also unveiled a collaboration with The Storey Group based in the United Arab Emirates (UAE). This joint effort aims to plant mangroves in Dubai, reinforcing AYA’s commitment to combating climate change. Vasseh Ahmed, Managing Director of Enjinstarter MENA, emphasized the company’s mission:“We are looking to work with founders and projects that have a unique proposition within our key focus areas by helping them build their product narrative, raise capital, and launch their projects.”In a recent interview, Deepa Raja Carbon, Managing Director and Vice Chair at VARA, highlighted the regulator’s agile and collaborative approach. VARA remains committed to responding swiftly and effectively to market needs by engaging in conversations with industry leaders, innovators, peer regulators and legislators. Carbon emphasized the comprehensive and market-aligned guidelines crafted in collaboration with Dubai’s established entities, ensuring a unified framework for the evolving crypto landscape.Dubai’s move to grant a conditional crypto license to AYA appears to reflect a forward-thinking approach, aligning with global efforts to integrate sustainability into the rapidly evolving Web3 and crypto ecosystem.

Singapore Bank Opens Branch in the MetaverseSingapore’s OCBC Bank has made its debut in the Metaverse with the opening of OCBCx65Chulia in Decentraland, a virtual platform that uses blockchain technology. The bank occupies nine plots of virtual land and visitors can access its website to open a bank account, apply for a credit card, and learn about its historical milestones and latest banking products and services.©Pexels/Andrea PiacquadioThe virtual branch got its name from its headquarters located at 65 Chulia St, OCBC Centre, Singapore. It is designed after OCBC Bank’s red logo, “a nod to the bank’s rich heritage,” the bank said in a statement.Reaching a larger and younger audienceOCBCx65Chulia represents a new way to connect with the younger generation, the bank added. “With the Bank’s arrival in the Metaverse, customers gain an additional access point that also represents a new way to engage with the younger crowd,” it said.The bank aims to tap into this emerging technology to reach a larger audience, said Peter Koh, Head of Group Technology Architecture at OCBC Bank.“Many have doubted the purpose of the Metaverse. Though a nascent and evolving space that we are still working to understand, the Metaverse remains one of the newer ways to make a connection. We are ready to tap on these, as they emerge, to reach a larger audience. At the same time, through experimentation and collaborating with an industry player, our younger colleagues can learn and develop themselves,” he said.GamificationIn the third quarter of 2023, OCBCx65Chulia will involve gamification, the bank said. This enhancement will come from the winning ideas of a group of Nanyang Polytechnic (NYP) Diploma in Interaction Design students who won the associated hackathon held in February 2023. The bank also collaborated with Web3 firm Memotics, an expert in emotive and social spaces through digital architectural design.Broader banking interestOCBC Bank, which opened its doors in 1932, is the second-largest in Southeast Asia by assets, according to Forbes. It is not the first bank in Singapore to venture into the Metaverse. Last year, DBS partnered with decentralized gaming virtual world The Sandbox to create an interactive Metaverse experience called DBS BetterWorld, which also forms part of its sustainability agenda.In February of last year JPMorgan became the first bank to enter the metaverse. At the time, it launched its virtual Onyx Lounge within Decentraland’s Metajuku Mall. The lounge featured a portrait of JPMorgan CEO Jamie Dimon, a spiral staircase and a dynamic roaming tiger.It also took the opportunity to release its “Opportunities in the Metaverse” report, in which it estimated a trillion dollar metaverse opportunity over the next few years. The metaverse has seen a plethora of well known corporations enter the space in recent times, including Gap, Adidas, PwC, Verizon and Nike.OCBC Bank’s move to the Metaverse represents a new era of banking where technology is used to reach a larger audience, especially the younger generation. With the Metaverse still being a nascent and evolving space, it is a new way to connect, engage, and experiment with the digital world.The gamification element in OCBCx65Chulia also shows how banks are exploring ways to make banking more interactive and fun. It will be interesting to see how other banks and financial institutions will follow suit and use the Metaverse to engage with customers and provide innovative services in the future.