India’s RBI Cites Stablecoin Risks With Call for Global Regulation

South Korean digital marketing firm FSN has entered into a strategic alliance with Fingo Company, the operator of the music copyright platform Fingo, to jointly work on a tokenized securities project based on the recently raised funds, according to local news site Newsis on Monday (KST).Photo by Chris Liverani on UnsplashUnlocking synergiesThrough this partnership, FSN and Fingo aim to collaborate on a token securities project. As both companies have experience in leveraging IP, they are expected to apply their expertise to the new business. In particular, FSN operates several IP-based Web3 projects such as Sunmiya Club and Bellygom NFT through its subsidiary Finger Labs, through which the firm has been demonstrating its competitive edge. Fingo also owns a variety of content-based IPs and is cooperating with major domestic securities companies. The two firms’ business capabilities are thus expected to create great synergy in the market. Fingo’s service allows anyone to share revenue made from music, a concept referred to as music revenue sharing, which was once limited to creators or singers only. Last year, it took a step into the tokenized securities sphere by signing a business deal with Mirae Asset Securities, the country’s largest asset manager, to establish a token securities service and launch innovative financial investment products. FSN has been gearing up to take on this collaborative project, namely a recent success in raising a total of KRW 10 billion (approximately $7.5 million) in funding. The company explained that with this considerable funding paired with its knowledge of Web3 and blockchain technology and experience in collaborative partnerships, it will be equipped to settle into the tokenized securities market seamlessly. Charting new horizons"As we have secured large-scale funding under stable conditions, we expect to successfully pursue new businesses, including that in tokenized securities," FSN CEO Lee Sang-seok said. "We will steadily expand new businesses by establishing partnerships with companies with competitiveness in various areas, starting with Fingo Company, which has a competitive edge in tokenized securities and music IP," he said.

Regulatory Pressure Sees Binance Cease Card Offering in the Middle EastLeading global crypto exchange Binance has announced the discontinuation of its card services in the Middle East.Users hailing from the region will have until September 21 to maximize the utility of their Binance cards before the product will no longer be available to them. Latin America is another region which will be similarly affected by the decision. Binance Customer Support stated: “The Binance Card will regrettably no longer be accessible to users based in Latin America and the Middle East.”Photo by rupixen.com on UnsplashEnabling crypto spendingDistinct from conventional debit cards, these Binance cards have offered users the convenience of settling day-to-day expenses with crypto assets. However, this unique feature is now set to become a relic as the exchange shifts its strategy in response to evolving regulatory dynamics.It’s worth noting that this product curtailment will only impact less than 1% of users situated in these regions. Other Binance services around the world will continue unimpeded. That said, products like this one are significant as they help to bridge the gap between the crypto sphere and conventional commerce.As a substitute, Binance is actively championing its “Binance Pay” platform, touting it as “an advanced cryptocurrency payment solution that is both contactless and internationally accessible.”Checkout.com setbackFinancial pundits are speculating that this strategic move could be closely intertwined with recent realignments in Binance’s corporate partnerships. Notably, the UK-based payment processor, Checkout.com, severed its connections with Binance earlier this month amidst mounting regional regulatory interventions and concerns.Responding to this severed partnership, Binance has indicated a contemplation of legal recourse against Checkout.com’s decision. The backdrop of this collaboration has been problematic since its inception in 2020. Initial troubles surfaced when the absence of the 3-D Secure system facilitated a criminal syndicate to conduct a $10 million transaction spree on Binance.Clash with global regulatorsRecent months have seen Binance find itself entangled in a web of legal battles. The US Securities and Exchange Commission (SEC) leveled allegations against Binance, accusing the exchange of deceiving regulatory bodies and mishandling customer funds.Meanwhile, French authorities have intensified their scrutiny, suspecting Binance of potential involvement in money laundering activities. As a domino effect, Binance had to exit numerous markets due to its inability to meet the stringent compliance criteria. Over the course of just three months, the company has lost its ability to trade in Germany, Canada, Belgium, the Netherlands, and Cyprus.Asian pivotAs the company comes under pressure in Western markets, it has focused on furthering its offering in the Asian region. In May, its subsidiary, Gulf Binance, successfully acquired a trading license in Thailand. Later that month, the company announced plans for a dedicated platform for Japanese customers.Parrot Capital, a decentralized hedge fund, has issued a direct recommendation to Binance Card users in response to the news:“Check your daily limits. Withdraw via ATM all your funds or spend them ASAP or risk losing them for good.”This sustained and pervasive scrutiny underscores the formidable challenges faced by the leading crypto exchange. As the regulatory landscape evolves, exchanges like Binance are being forced to re-calibrate in order to navigate an ever-changing environment.

Dunamu, the operator of South Korea’s largest crypto exchange, Upbit, secured approval to renew its registration as a virtual asset service provider (VASP), ending 16 months of regulatory limbo that had clouded the domestic market.Photo by Daniel Bernard on UnsplashAccording to Newsis, the Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) granted the approval on Dec. 23. Industry participants view the decision as a stabilizing signal for the sector amid the country’s evolving crypto regulations. Under South Korean law, VASPs must renew their licenses every three years. Dunamu submitted its application by the statutory deadline of Aug. 21, 2024, but the review faced prolonged delays due to FIU staffing shortages and overlapping sanctions proceedings. Regulators had flagged Dunamu for alleged violations regarding customer due diligence and transaction restrictions, resulting in a 35.2 billion won ($24.4 million) fine. Prior to the fine, the FIU issued a disciplinary warning to Dunamu’s chief executive and ordered a three-month partial suspension of operations. Dunamu is currently contesting the suspension and warnings in court, with a fourth hearing scheduled for February 2026. Despite the ongoing litigation, the company stated it has addressed all regulatory issues and implemented measures to prevent recurrence. Market clarity fuels expansion, IPO ambitionsWith uncertainty surrounding the market leader resolved, observers expect other exchanges to feel emboldened to pursue expansion, including new business launches and potential initial public offerings (IPOs). Bithumb, the country’s second-largest exchange, is weighing a public listing as early as next year. Securing license renewal would bolster market confidence and expand the company’s strategic flexibility. Other major platforms, including Coinone, Korbit, and Gopax, filed renewal applications late last year. Each faces sanctions proceedings for alleged legal violations, leaving the market closely watching for FIU rulings. Exchanges recruit ex-regulatorsWith regulatory scrutiny remaining a constant challenge, South Korean exchanges are increasingly recruiting former senior financial regulators to navigate the legal landscape. Citing data from the FSC and the Financial Supervisory Service (FSS), Segye Ilbo reported that the flow of senior officials into the crypto sector has accelerated. Between January and November, eight former FSS officials at Grade 4 or above moved to crypto firms—well above the historical norm of one or two annually. Over the past two years, 16 former FSS officials have moved into the crypto industry, with nine joining Dunamu and seven moving to Bithumb. Industry insiders link the trend to the enforcement of the Virtual Asset User Protection Act in July 2024, which brought the sector under a formal regulatory framework. Exchanges are seeking the expertise of retired regulators to manage legal risk and strengthen government relations, particularly ahead of planned phase-two legislation focused on stablecoins. TradFi enters as systemic risks watchedAs digital assets move within official regulatory boundaries, traditional financial institutions are accelerating their entry into the sector. On Dec. 26, Korea Investment & Securities signed a memorandum of understanding (MOU) with Bithumb to collaborate on asset management services, Yonhap News reported. The partnership aims to combine the brokerage's equities expertise with the exchange's digital asset capabilities to offer tailored products. However, the deepening ties between crypto and traditional finance have drawn the central bank's attention. In a Financial Stability Report released Dec. 23, the Bank of Korea (BOK) noted that the correlation between Bitcoin and the S&P 500 has increased since 2020. The BOK attributed this to the introduction of crypto-related financial products, such as ETFs, and increased participation by institutional investors and publicly listed companies holding crypto. Spillover risks in South Korea remain contained given the limited level of corporate participation, despite the government’s move earlier this year to gradually permit corporate crypto holdings. However, the central bank warned that greater institutional participation enabled by regulatory easing could intensify risk transmission. The report underscored the need for safeguards to insulate Korean equities from crypto-market shocks.