Busan City Houses Two Foreign Financial Firms on the Road to Becoming Blockchain, Fintech Hub

Crypto fund manager secures capital markets license in SingaporeDigital asset fund manager HashKey Capital Singapore celebrated a significant milestone on Tuesday as it secured a regulatory license from the local regulator and central bank, the Monetary Authority of Singapore (MAS).Photo by Mike Enerio on Unsplash‘Pivotal development’HashKey announced its regulatory success by way of a press release published to its website. This achievement, described by the company as a “pivotal development,” positions the firm to offer regulated fund management services primarily in connection with capital markets products from its Singapore base.Deng Chao, Chief Executive of HashKey Capital Singapore and Head of HashKey Singapore, expressed the company’s commitment to the local blockchain community, stating:“As a licensed fund management company, we are committed to contributing to the local blockchain community and playing our part in shaping its future.”Enabling product launchHaving initiated the licensing process in late 2021, HashKey Capital Singapore now plans to leverage its new status to launch a regulated fund and provide capital market products to local customers. The company envisions connecting blockchain experts and global capital to the local market, contributing to the advancement of the blockchain community in the region.Chao emphasized the company’s excitement about propelling blockchain-related capital markets products and investments further into the mainstream. This move is expected to open new possibilities for institutional and accredited investors in Singapore.Hong Kong presenceHashKey Capital falls under the overarching umbrella of Hong Kong-headquartered parent company HashKey Group. Company colleagues in Hong Kong have been busy in 2023, with a number of milestones having been achieved during the year.HashKey and OSL became the first digital asset exchange platforms to be licensed by the Hong Kong Securities and Futures Commission (SFC) as part of a new regulatory approach that allowed such platforms to offer their services to retail investors from June 1 onwards.A few months on from that and the company has been working towards increasing platform liquidity and trading volumes through a token rewards program and partnerships with market makers.At the end of October, the firm launched an exchange app, having received approval for the product from the local regulator. The firm has also bolstered customer deposit protection by way of a deal struck with fintech firm OneDegree to provide insurance cover for digital assets held on the platform.In April, a separate entity, HashKey Wealth, was formed, offering a wealth management service to both institutional and individual investors looking for exposure to digital assets.HashKey Singapore, inclusive of HashKey Capital Singapore, boasts a team of approximately 40 professionals covering various areas such as venture capital investment, fund management and over-the-counter trading of digital assets. The development follows HashKey Capital’s successful conclusion of a $500 million funding round, reinforcing its position as one of the largest crypto asset managers.Founded in 2015, HashKey Capital has played a pioneering role as an institutional investor in Ethereum, managing over $1 billion in client assets and making investments in more than 500 projects across infrastructure, tools and applications.During a funding round which the HashKey Group pursued earlier this year, it emerged that the company was being valued at $1 billion.

Korean Crypto Exchange Giants Lead Market Expansion With Increased ListingsSouth Korea’s top three cryptocurrency exchanges Upbit, Bithumb and Coinone have all increased the number of cryptocurrencies they listed for trading this year compared to last year, making them responsible for leading the market’s activity and expansion.Photo by Maxim Hopman on UnsplashDynamic shifts in listing and delisting trendsA recent analysis by local news outlet News1 on the number of cryptocurrencies listed and delisted this year on the country’s major fiat-to-crypto exchanges Upbit, Bithumb, Coinone, Korbit and Gopax — listed in order of market share size — revealed that Upbit and Coinone have increased their number of listings and delistings compared to last year.The remaining three exchanges, on the other hand, showed differing results. Bithumb increased its number of listings by 47 compared to the number listed last year, while delistings decreased by three, and Gopax listed eight fewer tokens and delisted one more token. Meanwhile, Korbit’s listings decreased by 37 tokens, while delistings decreased by only one.Among the five exchanges, Bithumb listed the highest number of new cryptocurrencies this year, with 80 new currencies in total added as of Monday (local time). This represents a more than double increase compared to the 33 currencies added last year. It is also 18 more than Coinone’s 62 new currencies and 50 more than Upbit’s 30.Differing approaches based on situational factorsGopax and Korbit have taken a more conservative approach compared to Upbit, Bithumb, and Coinone, which have been more aggressive in their listing strategies. In particular, as of Oct. 4, Bithumb has also been offering free transaction fees in an effort to regain its market share. This aggressive approach can be interpreted as an effort to weather the recent crypto winter, although it hasn’t been very successful.Conversely, the exchange that delisted the most cryptocurrencies this year was Coinone, with 38 taken down as of Monday, marking a significant increase compared to last year when it delisted 26. This can be accredited to the platform’s efforts to improve its reputation and operating system following an incident earlier this year where two former employees were booked for taking bribes in exchange for listing certain cryptocurrencies. Coinone CEO Cha Myung-hun subsequently issued an apology and pledged to take proper measures to prevent such an event from recurring. Since then, the exchange has been actively looking into carrying out delistings tied to issues like the amount of currency in circulation or market price manipulation.Bithumb and Upbit came in second and third for most delistings this year, with 22 and 18, respectively.However, Korbit showed the least fluctuation in the number of listings and delistings this year — nine and three, respectively — among the five exchanges. This is a sharp contrast owing to its conservative listing policy. Speculation suggests that the platform might adopt a more aggressive stance if market conditions improve in the second half of the year.On the other hand, Gopax listed 10 tokens and delisted eight tokens. The exchange has notoriously been dealing with operational difficulties due to regulatory roadblocks despite optimistic outlooks after its acquisition by Binance, one of the world’s most prominent exchanges. Along with the recent appointment of Cho Young-joong as the new CEO of CityLabs, the company that acquired an 8.55% stake in Gopax, the exchange has been working on resolving regulatory issues and improving the state of operations.

India’s Jio Financial Services to Delve Into BlockchainJio Financial Services (JFS), a subsidiary of Indian multinational conglomerate Reliance Industries (RIL), is gearing up to venture further into the realm of blockchain and central bank digital currencies (CBDCs), according to announcements made by Indian billionaire businessman and Reliance Chairman and Managing Director, Mukesh Ambani, during RIL’s 46th annual general meeting on Monday.Photo by Shubham Dhage on UnsplashBlockchain ambitionsThe Indian billionaire revealed his Web3-related plans, signaling a strategic move for JFS towards blockchain and centralized digital currencies. While addressing the AGM, Ambani emphasized his current caution regarding highly volatile crypto assets. However, he indicated that he aims to have Jio Financial delve deeper into blockchain technology and permissioned digital currencies, particularly the eRupee CBDC, which is undergoing advanced trials within India.JFS will serve as the entry point for Reliance Industries into the Web3 sector. Formerly known as Reliance Strategic Investments, JFS has been rebranded and will now facilitate management services for digital assets.Consolidating payment infrastructureAmbani’s vision for JFS encompasses the consolidation of payment infrastructure, a strategic effort to drive digital adoption throughout India. JFS hit the headlines in July when it was revealed that it was forging a major partnership with BlackRock, the world’s largest asset manager, valued at over $100 billion as of August 18.Ambani’s statement during the RIL annual general meeting highlighted JFS’s objectives: “JFS will consolidate its payment infrastructure further driving digital adoption for India. JFS products will explore pathbreaking features such as blockchain-based platforms and CBDC.”CBDC development has been ongoing through initiatives taken by central banks around the world over the past couple of years. The Reserve Bank of India (RBI) has been no slouch in this respect. It is actively engaged in developing its own CBDC, aiming to modernize online payment systems while reducing reliance on physical cash, thereby optimizing operational efficiency.In July, the RBI turned its attention to the cross-border functionality aspect of CBDCs, experimenting with various use cases relative to international payments. At a governmental level, India is also playing a key role in working towards global regulatory standards for cryptocurrencies. The RBI has contributed to the discussion, citing risks associated with stablecoins in a Financial Stability Report released in June and calling for global regulation.RIL CBDC initiativesNotably, Reliance General Insurance recently announced its acceptance of the eRupee CBDC for premium payments, and earlier this year, Reliance Retail initiated the use of India’s digital rupee CBDC across its Mumbai-based stores. The CBDC is anticipated to outperform India’s successful Unified Payments Interface (UPI) mobile payments system, according to V Subramaniam, Managing Director at Reliance Retail.Ambani’s RIL empire encompasses a diverse range of businesses, including Jio’s network services, retail stores, and fuel stations. Mukesh Ambani’s move to embrace blockchain and CBDCs will likely have broader implications beyond his own companies, given that it signals his intention to drive India’s digital transformation forward.