OKX Follows Path Towards Dubai Licensing

Tiger Brokers (Hong Kong) is gearing up to bring its virtual asset trading platform to professional investors in Hong Kong, with plans to extend the service to retail-level investors in the short to medium term. Unified solution for equities and digital assetsTiger Brokers is an online broker, headquartered in Beijing, with an office and operations in Hong Kong. Additionally, the company has been listed (TIGR) on the Nasdaq stock exchange in the United States since 2019. With this latest plan which it outlined in an announcement shared with Cointelegraph, the company will offer professional investors a single solution for the trading and portfolio management of both securities and digital assets.  In merging traditional securities and crypto assets, the firm has partnered with Hong Kong’s HashKey Exchange, allowing access to 18 digital assets. That offering will include Bitcoin and Ethereum. Alongside these digital assets, the company will offer investors traditional financial products such as equities, options, futures and U.S. Treasury bonds. Integrating traditional and digital assets within the one platform eliminates certain complexities that come with managing multiple accounts across distinct brokers and platforms. As a consequence, investors are being extended greater convenience and flexibility in terms of global asset allocation.Photo by Ansel Lee on PexelsExtending service to retailInvestors with a preference for exposure to the recently approved spot Bitcoin exchange-traded fund (ETF) products will be enabled to purchase those ETFs through the platform.  Tiger will become the first technology-led brokerage in Hong Kong to offer an all-encompassing service supporting both traditional securities and virtual assets. The firm has incorporated competitive rates and a 24/7 trading ability into the offering in an effort to gain traction. Additionally, it has waived digital asset custody fees.  Through the Tiger Trade platform, professional investors will be given access to this array of investment options. Initially, availability of the facility will be confined to professional investors in Hong Kong. Hong Kong residents with an investment portfolio valued above 8 million Hong Kong dollars ($1 million) and corporate entities with assets in excess of 40 million Hong Kong dollars ($5 million) qualify within the definition of accredited investors. Once it gains the relevant regulatory approval, Tiger Brokers intends to extend the service to retail investors. The company also outlined that it is considering adding cryptocurrency spot withdrawals and deposits as features within the new service offering. Zeng Qingfei, Chief Financial Officer of Tiger International, expressed the company's pride in leading the charge in virtual asset trading services. He emphasized Tiger Brokers' commitment to meeting the evolving needs of investors by expanding its product portfolio to include diversified investment opportunities. Through this strategic expansion, the company is aiming to equip investors with the tools they need to navigate dynamic market conditions effectively. The company hasn’t confined its efforts to achieve further growth to Hong Kong. In recent days, it has also enabled 24-hour trading of U.S. stocks and exchange-traded funds (ETFs) in New Zealand. Through extended trading hours, Kiwi investors will have greater opportunity than ever to participate in the market. 

Digital asset insurer funds Middle East expansionOneDegree, a Hong Kong-based InsurTech startup is expanding its area of engagement to the Middle East, funded through an undisclosed investment from Dubai Insurance.Fresh funding round to finance growthThe seven-year-old startup announced on Friday that it has secured further funding, solidifying its commitment to Middle East expansion while building upon the success of OneDegree’s $55 million Series B round in June. Total funds raised are believed to be in the region of $100 million.The Series B round was required to expand its digital assets insurance portfolio. Similarly, the partnership with Dubai Insurance is aimed at facilitating OneDegree’s expansion into the digital asset insurance sector within the United Arab Emirates (UAE) and the Gulf region. The startup firm will now proceed to establish a new entity in Dubai and hire staff locally to take on new business in the region.Among its notable investors are Alibaba Entrepreneurs Fund (AEF) Greater Bay Area Fund, Sun Hung Kai & Co and Cathay Venture, the venture capital arm of Taiwanese billionaire Tsai Hong-tu’s Cathay Financial Holdings. OneDegree’s CEO, Alvin Kwock, has stated that the company is on track to achieve profitability by the second half of 2024.Photo by Roman Logov on UnsplashMinisterial interestIt’s understood that the UAE’s economy minister, Abdulla bin Touq Al Marri, had outlined his interest in OneDegree bringing its service offering to the UAE when he met with representatives from the company at the Belt and Road Summit in Hong Kong in September.Given that OneDegree is planning to service the digital assets sector in the UAE, the move aligns with Dubai’s new crypto regulatory framework implemented earlier this year, which mandates insurance coverage for licensees engaged in crypto-related businesses to safeguard users’ funds. Major players in the crypto industry, such as Binance, Crypto.com and OKX, have already established a presence in Dubai.Only digital asset insurer in AsiaIn a video interview from Dubai on Friday with Forbes, Alvin Kwock emphasized OneDegree’s unique position as the first and only licensed insurer in Asia capable of providing digital asset insurance.Kwock revealed that approximately half of the world’s top 20 crypto exchanges have approached OneDegree for its digital asset insurance, with some of them already being clients. The startup has extended its services to around 30 companies, including Cactus Custody, the custodian unit of Singapore’s Matrixport; Rakkar Digital, backed by Thailand’s Siam Commercial Bank; and Hashkey, one of Hong Kong’s licensed crypto exchanges.In July it penned a deal with blockchain infrastructure firm Blockdaemon. Meanwhile, it has been underwriting digital assets for crypto custodian METACO since November 2022.Anticipating substantial growth, Kwock expects the number of OneDegree’s digital asset insurance customers to surpass 100 by the end of 2024. He foresees this segment constituting about half of the company’s total business in the coming year, up from the current level of 30%. Kwock underscored the evolving dynamics in the crypto market, emphasizing the increasing importance of risk management and the essential role of insurance in the digital asset industry.OneDegree’s expansion into the UAE aligns with the nation’s crypto-friendly policies, actively attracting firms to leverage its supportive regulatory environment. Indirectly, it also serves the Hong Kong government’s strategy to deepen business ties with the Middle East.

SEC Seeks to Question Co-Founder of Singapore’s Terraform LabsThe United States Securities and Exchange Commission (SEC) has taken a step forward in its ongoing case against Singapore’s Terraform Labs by seeking to question Daniel Shin, the Co-Founder of the company.The SEC's intention is to gather evidence related to Chai Corporation, a payments company associated with Terraform and the Terra blockchain. District Judge Jed Rakoff granted the SEC’s request earlier this week, which is part of the regulatory body’s efforts to build a case against Terraform Labs and its Co-Founder, Do Kwon. The decision was based upon a motion originally filed in July.Photo by Bermix Studio on UnsplashRequesting South Korean assistanceThe motion, which was granted on Tuesday, allows the SEC to reach out to South Korea for assistance in questioning Shin and obtaining documents related to Chai Corporation. The regulatory body aims to gain insights into Kwon’s role at Chai, the utilization of the Terra blockchain by Chai, and the disclosures made by Chai regarding its relationship with Terraform.Additionally, the SEC is interested in understanding the reasons behind Chai’s separation from Terraform, as the two companies shared offices and staff until their split in 2020.No opposition filedOn a previous occasion, Kwon unsuccessfully challenged the SEC's attempt to access company records on the basis of a lack of jurisdiction given that Terraform is a Singapore-domiciled company. In June, both Terraform and Kwon attempted unsuccessfully to have the entire action thrown out.On this occasion neither Terraform Labs nor Kwon have opposed the SEC’s motion. In fact, they have even included their own set of questions and document requests. Both the Singaporean firm and its Co-Founder have denied the SEC’s allegations, which were filed earlier this year.The SEC’s lawsuit claims that Terraform’s cryptocurrencies, specifically Terra Luna Classic (LUNC) and Terra ClassicUSD (USTC), were involved in fraudulent activities. The US regulatory body further alleges that Kwon and Terraform falsely promoted the use of the Terra blockchain by Chai for processing and settling transactions.The SEC’s lawsuit also accuses Terraform and Kwon of fabricating transactions involving TerraKRW (KRT), a Korean won-pegged stablecoin, to give the impression that Chai was actively utilizing the Terra blockchain.Collapse falloutTerra, an interconnected crypto ecosystem, faced a collapse in May 2022, resulting in the loss of approximately $40 billion in value and impacting the wider cryptocurrency market. The aftermath of this collapse led to legal actions against individuals associated with Terraform Labs. South Korean prosecutors, for instance, charged Shin with multiple fraud offenses in April, alleging that he had concealed the risks of investing in Terraform’s cryptocurrencies.Kwon’s legal situation is equally complex. He is currently serving a prison sentence in Montenegro for attempting to leave the country using a fake passport. He faces criminal charges in both the United States and South Korea, and both countries have requested his extradition.The ongoing investigation sheds light on the intricate relationships within the Terra ecosystem, having an impact across different jurisdictions. As legal proceedings unfold, the outcome will likely have implications for the regulation and oversight of cryptocurrency and blockchain projects internationally.