Korea’s Traditional Customer Rewards Program Embraces NFTs

Mox, a virtual bank in Hong Kong and a subsidiary of Standard Chartered, has introduced exchange-traded fund (ETF) trading for cryptocurrencies, marking a significant expansion into the digital asset space. The bank announced on Aug. 7 that it now offers its customers the ability to trade spot Bitcoin and Ether ETFs directly on its platform, making it the first virtual bank to do so.Photo by Florian Wehde on UnsplashExpanding crypto offeringsThe digital bank is also planning to broaden its cryptocurrency services. Future expansions may include direct purchasing and trading of cryptocurrencies in partnership with a licensed exchange. This move aligns with Hong Kong’s regulatory framework, which has been adjusting to accommodate and regulate crypto activities more robustly. Competitive pricing and user engagementMox is promoting itself as an economical choice for crypto ETF trading, with fees set at 0.12% of the transaction volume, with a minimum charge of 30 Hong Kong dollars ($3.85) for Hong Kong-listed spot and derivatives ETFs and $0.01 per share with a minimum of $5 for U.S.-listed derivatives ETFs. As of now, a local report reveals that 28% of Mox's customers engage in cryptocurrency investments, with 18% actively trading. The introduction of these ETFs is seen as a move to empower these customers to access emerging asset classes securely. Future aspirationsBarbaros Uygun, the CEO of Mox, expressed that the inclusion of crypto ETFs is part of the bank's broader strategy to set a global benchmark from Hong Kong. The bank aims to stay competitive by innovating and adapting to market changes. Jayant Bhatia, the bank’s chief product officer, hinted at more extensive plans in the crypto investment realm, although specifics on the timeline for launching broader crypto trading services were not disclosed. Despite the launch, the overall uptake of crypto ETFs in Hong Kong has been lukewarm. Bosera HashKey, ChinaAMC and Harvest Global, the issuers of the three spot ETFs in Hong Kong, have seen minimal activity with combined assets under management totaling just $236.3 million. The launch by Mox could potentially invigorate the market for crypto ETFs in Hong Kong as the region strives to become a leading hub for cryptocurrency in Asia. 

SK C&C to Spearhead Establishment of Korea’s First Alternative Trading SystemSK C&C, the information communications technology arm of South Korean conglomerate SK Group, is set to launch the country’s first Alternative Trading System (ATS) — a securities trading venue that is more loosely regulated than an exchange — in the second half of next year.The firm announced on Wednesday that it will commence the multilateral trading system construction project for Nextrade, a corporation dedicated to preparing the ATS.Photo by Kanchanara on UnsplashCollaborative effort of securities institutionsNextrade was initiated by seven securities firms, including the Korea Financial Investment Association, and was jointly established by 34 participating institutions, including 19 securities companies, three securities-related institutions, and four tech companies in November of last year.SK C&C in particular has been working with Nextrade since 2019. When the corporation was still a consultative body of securities firms, the SK subsidiary was in charge of consulting on various matters regarding the establishment of the ATS and functional system requirements.Establishing a solid foundationThe aforementioned construction project aims to establish a multilateral trading system and an operation and management system to support the trading, brokerage, and agency functions of listed securities and depositary receipts on the ATS, which Nextrade will proceed with upon its official approval in the second half of next year. SK C&C will take on a major role in leading this task.“Based on our digital IT service capabilities that we have accumulated within the financial sphere, we will establish an efficient and reliable multilateral trading system that is on par with regular exchanges,” said Kim Nam-sik, head of the SK C&C Financial Digital2 Group.Besides facilitating multilateral trading, SK C&C will develop an information distribution system that processes investment information in connection with the Korea Exchange and the Korea Securities Depository, as well as a trading support system responsible for product information management, trading statistics, and administration.Trading after hoursThe ATS will allow trading past normal trading hours, which are usually from 9 AM to 3:30 PM — an especially attractive selling point for buyers and sellers. This will be made possible by compiling product information based on closing prices after the market closes, which will create an environment that allows for trading after hours.This service will not only be convenient for office workers but also help them refer to official announcements and the status of overseas markets to make more informed decisions, SK C&C said.Securities that can be traded after hours will be limited to listed stocks and depository receipts on the Korea Exchange for the time being, but SK C&C is reportedly looking into allowing trading of security tokens, non-security virtual assets, and NFTs.Ensuring uninterrupted operationsNotably, there will also be a Disaster Recovery Center, which will serve to protect the ATS’ major systems and data assets and ensure business continuity. A data backup system will be set up to reduce backup time and swiftly recover from any failures in case of potential security threats.Furthermore, the ATS plans to introduce new types of orders to enhance investor benefits in the domestic capital market, setting it apart from the Korea Exchange.

Fonte Capital, an Astana-based investment management company that allocates capital across a broad range of asset classes, including digital assets, launched a spot Bitcoin exchange-traded fund (ETF) in Kazakhstan’s capital city on Aug. 13. The firm is based within the Astana International Financial Centre (AIFC), with the launch prompting AIFC Governor Renat Bekturov to take to X to outline that the product offering is the first spot Bitcoin ETF to be listed within the Central Asian region.Photo by Kanchanara on UnsplashReflecting Bitcoin price dynamicsThe product has been listed on the Astana International Exchange (AIX) and has been assigned the ticker “BETF.” In announcing the offering, Fonte claimed that the ETF “aims to accurately reflect the price dynamics of bitcoin, striving to achieve this performance before fees and fund obligations.”Shares in the ETF are listed in U.S. dollars, with the fund having a “non-exempt” classification, meaning that it can be offered to a broad range of investors, including non-qualified retail investors. Each ETF share will be fully backed by Bitcoin, with Fonte having partnered with BitGo for digital asset custody.  Delivering institutional-grade accessTaking to social media, BitGo described the product offering as a “new era for digital assets” in Kazakhstan. The company asserted that through what it termed “U.S.-regulated cold storage,” the new fund is delivering institutional-grade access to Bitcoin within the region for the first time. Fonte pointed out that the fund “provides investors with a regulated and secure way to include Bitcoin in their investment portfolios without the complexities associated with holding and transferring the underlying asset.” This isn’t the first Bitcoin-related product that the AIX has listed. Back in 2021, it listed iX Bitcoin Exchange Traded Notes, with special purpose company iX Bitcoin SPC Limited acting as the note issuer.  The product differs from the Fonte ETF in that it is backed by shares of ProShares Bitcoin Strategy ETF, a future-based ETF first listed on the New York Stock Exchange (NYSE) in 2021. In comparison, Fonte’s product has the advantage of being directly backed by Bitcoin. The ETF’s backers have pointed out that there are further implications for the ETF’s shareholders. As the product is regulated by the AIFC, Fonte asserts that within that jurisdiction, holders of the product’s shares are protected from the potential reach of international sanctions. In this regard, the product offers further protection as it is not dependent upon overseas issuers.  Overall, the AIFC has played a key role in the development of crypto within Kazakhstan over the course of the last few years. In 2023, it awarded crypto exchanges Bybit and Binance approval to trade within the Central Asian nation.  Binance subsequently launched a local crypto exchange platform in Kazakhstan, achieving full licensing in October 2024. In June of this year, the authority granted its first license for the issuance of a fiat-backed stablecoin.  It emerged recently that Kazakhstan is working towards the establishment of a national crypto reserve, with the administrators of the country’s sovereign wealth fund expressing the desire to commence investment in crypto assets.