SafePal Delves Into Korean Market Through Klaytn Partnership

Paxos gets green light from Singapore regulator for USD stablecoinPaxos, a regulated crypto infrastructure company, has announced that it has received in-principle approval from the Monetary Authority of Singapore (MAS) for its new subsidiary, Paxos Digital Singapore Pte. Ltd.The company outlined in a press release that it published on Thursday that the new entity will be able to offer digital payment token services and issue a USD-backed stablecoin in compliance with Singapore’s upcoming stablecoin laws. Stablecoins are digital tokens that are pegged to the value of fiat currencies or other assets and are designed to minimize price volatility.Photo by Carlos Alberto Gómez Iñiguez on UnsplashRegulatory framework for stablecoinsThe MAS moved to finalize its regulation of stablecoins within the city-state in August. That regulation insists on stablecoin issuers holding reserve backing for a stablecoin in low risk, highly liquid assets. The regulator also puts an onus on the issuer to provide appropriate disclosures including audit results and to process redemption requests within five business days.According to Paxos, there is a strong global demand for the U.S. dollar, but it remains challenging for consumers outside the U.S. to access dollars securely, reliably and under regulatory protections. The in-principle approval from the MAS will enable Paxos to bring its regulated platform to more users around the world.The recently finalized stablecoin regulatory framework will apply to non-bank issued tokens that are linked to the Singapore dollar or G10 currencies, such as the euro, British pound and U.S. dollar. Additionally, it applies to stablecoins whose circulation exceeds five million Singapore dollars ($3.7 million). The framework aims to ensure that stablecoins are subject to appropriate governance, risk management, disclosure and consumer protection standards.Partnering with enterprise clientsPaxos said that once it receives full approval from the MAS, it will be able to partner with enterprise clients to issue the USD stablecoin in Singapore. Paxos already has experience in issuing stablecoins, such as the Paxos Standard (PAX) and the PayPal USD Coin (PYUSD), which are both backed by the U.S. dollar and cash equivalents. Paxos also issues monthly attestations and reserve reports to verify its compliance and transparency.Responding to this latest development, Paxos Head of Strategy, Walter Hessert, stated:“Global demand for the US dollar has never been stronger, yet it remains difficult for consumers outside the US to get dollars safely, reliably and under regulatory protections. This in-principle approval from the MAS will allow Paxos to bring its regulated platform to more users around the world. Because Paxos upholds the highest standards of compliance and oversight, global enterprises partner with us to power stablecoin solutions that drive their businesses and respond to their customers’ needs.”Paxos previously issued the Binance USD (BUSD) stablecoin, but was ordered by the New York Department of Financial Services (NYDFS) to stop issuing the token after the agency declared the stablecoin an unregistered security.The partnership between Paxos and the MAS is a significant step in bridging the gap between traditional finance and the emerging crypto industry. As more institutional clients seek exposure to digital assets, it becomes essential to provide them with secure and reliable solutions that meet their specific requirements.

South Korean digital marketing company FSN’s subsidiary Fingerlabs has been selected as a tenant of the city of Busan’s Blockchain Offshore Firm Development Center. The company confirmed that it moved in recently on Jan. 2.Photo by Héctor J. Rivas on UnsplashFostering growth and collaborationThe Blockchain Offshore Firm Development Center is part of a project conducted by the Korea Internet & Security Agency (KISA) and the Ministry of Science and ICT and operated by Busan to create a special corporate cluster of blockchain firms, thus revitalizing the blockchain industry and nurturing a sustainable industrial ecosystem. "We are excited to be a new tenant at the Blockchain Offshore Firm Development Center,” said Kim Dong-hoon, CEO of Fingerlabs. “We will share our business know-how with other tenants and commit to joint growth. We will also actively participate in various programs provided by the center to contribute to Busan's leap into becoming a digital economy city." Various companies operating blockchain-related businesses outside of Busan were selected to be a part of the development center after a comprehensive overall evaluation of factors like technological facets, marketability and contributions to innovation. Corporate residents have access to various infrastructure and benefits, including facilities and programs at the Busan Blockchain Venture Convention, also dubbed “b-space”. Fingerlabs plans to participate in various programs led by the public sector such as councils, seminars and conferences to help Busan – notably the first regulation-free special zone for blockchain businesses in South Korea – foster its digital economy based on its expertise in the field of Web3.  Innovating Web3 solutionsFingerlabs has grown to become one of the country’s major blockchain companies through its varied services and products, which are provided to corporate clients like SK Planet, Lotte Home Shopping and SK Networks. In particular, it recently launched Bling, a participatory Web3 membership platform that allows businesses to create and manage NFTs that are linked to membership-only benefits. The company also operates a Web3 content distribution hub called Xclusive and Favorlet, an NFT wallet and customer management service. 

Binance announced on its blog on Sept 9 that its Indonesian subsidiary company, Tokocrypto, had secured a Physical Crypto Asset Trader (PFAK) license from the Southeast Asian country’s regulator, Bappebti. Compliant global growthThe company put itself forward as a candidate for licensing in 2019, and with the licensing award, it became the third crypto entity to be licensed. In its post on Binance Square, Binance claimed that the “PFAK license strengthens Tokocrypto’s position as a regulated and trusted platform in Indonesia's Web3 ecosystem.”  It called the five-year process “rigorous,” indicating that the license acquisition was critical not just for Tokocrypto but also relative to the overall development on Indonesia’s crypto and Web3 industry. The licensing now enables the company to trade as a fully authorized physical crypto asset trader in Indonesia. The licensing award comes just days after it was reported that Binance is inching ever closer to obtaining a full trading license in Kazakhstan, indicating that the company is expanding its global presence in a compliant manner. This development is likely to be significant for Binance and its subsidiary in terms of global growth efforts, given that a 2023 Chainalysis report found that ranked in terms of the pace of crypto adoption, Indonesia was placed seventh, making it an important market for the company.Photo by Fahrul Razi on UnsplashBinance CEO Richard Teng commented on the development, stating:“Binance is committed to fully supporting Tokocrypto in its mission to drive the growth of the Web3 ecosystem in the region.” Tokocrypto CEO Yadhono Rawis classed the company becoming “the third exchange to receive [a] PFAK license in Indonesia” as an important achievement in a “market which has 35 prospective crypto exchanges registered with Bappebti.”  Growing user-baseIn its Binance Square post, Binance also highlighted that Tokocrypto’s user base has now grown to 4.5 million users. Additionally, Tokocrypto is responsible for 43% of crypto trading within the Indonesian market in 2023, according to CoinGecko data. It’s understood that Binance has held a majority stake in Tokocrypto since a very early stage in the firm’s development.  Crypto tax revenue surgeRecently published data revealed that tax revenue generated through Indonesia’s crypto sector has surged. It appears that tax revenues have increased despite calls for the authorities to implement crypto tax policy reform. Earlier this year CoinDesk Indonesia speculated that high crypto taxation rates were responsible for a slump in crypto-related tax revenues. In March reports emerged that crypto transactions had increased by over 200%, with Tokocrypto’s Rawis attributing the uptick to a recovery in the Bitcoin unit price across all markets. In early 2025, it’s expected that crypto industry oversight will be transferred from Bappebti to the Financial Services Authority (OJK). With that, it’s thought that some changes may be made to how crypto-related taxes are applied.