Korean Crypto Firms Organize Consortium for Real-World Asset Tokens

Kazakhstan shuts out 980 non-compliant crypto exchanges in 2023Kazakhstan has implemented stringent measures in 2023 when it comes to regulating the crypto sector, resulting in the closure of 980 crypto exchanges that failed to comply with government regulations.That’s according to a press release published by the Central Asian country’s Financial Monitoring Agency (FMA), the state entity responsible for anti-money laundering (AML) policy. These measures, taken over the course of the year, were highlighted during the 39th Plenary Week of the Eurasian Group (EAG) in the resort city of Sanya, in Hainan province in China.Photo by Kuralbek Djumagaziev on UnsplashCombating money laundering threatsThe seminar served as a platform for participating countries to exchange experiences, with an emphasis on leveraging advanced technologies, including artificial intelligence, to effectively combat emerging threats related to money laundering and terrorist financing. The Kazakhstani delegation played a leading role in discussions on virtual assets.Ruslan Ostroumov, the Head of Kazakhstan’s Financial Monitoring Agency, showcased the country’s legislative regulations and robust measures to combat the illegal turnover of digital assets. Ostroumov reported the blocking of 980 illegal cryptocurrency exchange platforms in the current year. Additionally, nine investigations into illegal exchange operations, amounting to $36.7 million, have been initiated, accompanied by ongoing preventive measures.Registration process complexityWhile the seminar’s organizers commended Kazakhstan for its proactive stance against financial crimes in the virtual assets space, the country’s crypto laws have added complexity to the registration process for exchanges.In November, the Kazakhstani authorities blocked local access to the Coinbase website due to potential violations of the country’s digital asset legislation. This decision aligned with the law on digital assets, effective since February 2023, which prohibits the issuance and trading of digital currencies and cryptocurrency exchange businesses without proper licensing.While challenges remain for crypto platforms within Kazakhstan, some have been successful in their efforts. In May, crypto derivatives trading platform Bybit was successful in gaining approval to offer its services within the country. Binance followed suit in June, securing preliminary approval. Other platforms such as CaspianEx, Biteeu, ATAIX, Upbit, Xignal and MT have been granted permission to conduct trade in Kazakhstan.In December 2020, Kazakhstan formally legalized cryptocurrency mining, and on May 6, 2021, the National Bank of Kazakhstan announced plans to issue a “digital tenge,” their version of a central bank digital currency (CBDC). Various CBDC-related projects have followed. In September, the National Payment Corporation, an entity which will be responsible for CBDC development, was launched. The same month, the National Bank of Kazakhstan entered into a collaboration with financial messaging service SWIFT to work on an interoperable CBDC connector.For the most part, these comprehensive regulations and the issuance of a CBDC signify Kazakhstan’s broader acceptance and adaptation to the cryptocurrency landscape. Authorities internationally are trying to find a balance between adequate regulation and enabling innovation to take place. Kazakhstan is no exception, and with that, there are bound to be challenges as regulatory frameworks are optimized and tweaked along the way.

Bitstamp, regarded as the longest-running cryptocurrency exchange in the business, declared on March 6 that it has obtained in-principle approval for a license to function as a Major Payment Institution (MPI) from the Monetary Authority of Singapore (MAS).Photo by Zhu Hongzhi on UnsplashFirst major Euro exchange in SingaporeThis preliminary approval, a precursor to a full-fledged license for operation in Singapore, marks a significant milestone for Bitstamp towards offering digital payment token services within the city-state. According to the exchange's press release, it's the first crypto trading platform with a substantial presence in the European Union (EU) to secure such approval from MAS. The nod from Singapore’s financial regulator arrives amidst notable regulatory strides in the crypto domain, including the European Union’s rollout of the Markets in Crypto-Assets (MiCA) framework and the green light given by the U.S. for Bitcoin ETFs. Focusing on AsiaBitstamp's strategic focus on the Asia Pacific region, with Singapore as its central hub, underscores its focus in delivering services to both institutional and retail clientele across the region. The firm’s intent in this regard became clear in August of last year when Bitstamp sought capital funding to enable it to extend the platform’s reach into various markets across Asia. Whilst the company’s origins can  be traced back to Slovenia, it has since developed further ties with Asia. In 2018, the company was acquired by NXMH, a subsidiary of South Korea’s NXC Corporation. The same holding company owns Korean crypto exchange Korbit. Compliance strategyWhile the licensing is quite the achievement, the company already boasts a robust regulatory track record, surpassing the 50-license mark across key markets such as Luxembourg, the Netherlands, Italy, Spain, France the United States (with coverage in 40 states including New York, Washington, Texas and Florida) and the United Kingdom. In its press release the company referred to its ever-growing licensing collection, outlining that “compliance and regulation [are] at the heart of all operations.” Leonard Hoh, Bitstamp's APAC General Manager, lauded Singapore's proactive stance in establishing a regulatory framework for crypto exchanges, positioning the city-state as a pivotal player in the digital assets landscape. Singapore has already granted full licenses to several crypto service providers, including Blockchain.com, Circle, Coinbase and Ripple. In late 2023, Bitstamp initiated talks with three major European banks regarding the potential introduction of cryptocurrency services in 2024. This signals a broader trend within the EU, where the crypto regulatory initiative, MiCA, is smoothing the path for traditional financial institutions to venture into the digital assets realm. Robert Zagotta, Bitstamp’s Chief Commercial Officer, highlighted the surge in interest surrounding its “Bitstamp-as-a-Service” offering, especially within European circles. This service furnishes a white-label licensing framework, coupled with requisite technology, to aid banks and fintech entities in facilitating cryptocurrency transactions for their clientele. However, the regulatory landscape isn't as welcoming in India, where the country’s Financial Intelligence Unit (FIU) urged the Ministry of Electronics and Information Technology to block the URLs of nine major global crypto exchanges, including Bitstamp, in late 2023. 

SBI Holdings and TradeFinex Partner to Create a Trade Finance JV in JapanJapanese financial services conglomerate SBI Holdings has joined forces with UAE-based TradeFinex to establish a dynamic joint venture. The objective of the partnership is to propel the widespread adoption of the XDC Network within Japan’s trade finance sector.Details of the agreement between the firms emerged last Friday. The strategic collaboration represents a move toward harnessing blockchain technology to infuse transparency, efficiency, and accessibility into the fabric of trade finance and supply chain management.At its core, the XDC Network stands as an enterprise blockchain platform which is compatible with the Ethereum virtual machine (EVM). In recent times, the XDC Network has cultivated partnerships with several international organizations, including the World Trade Organization (WTO) and the International Chamber of Commerce (ICC). It has pioneered solutions aimed at cost reduction, transaction acceleration, and transparency augmentation within the trade finance sphere.Photo by Timelab on UnsplashBuilding upon related partnershipSBI Holdings, deeply ingrained in Japan’s financial services sector, has taken significant strides to embrace the potential of blockchain technology. Earlier this year, its subsidiary, SBI VC Trade, partnered with the XDC Network, becoming the inaugural Japanese exchange to facilitate the cryptocurrency asset XDC. Building upon this previous collaboration, SBI VC Trade has been proactive in championing the expansion of the XDC Network’s presence in Japan.The freshly minted joint venture between SBI Holdings and TradeFinex has the potential to serve as a catalyst for further XDC Network growth in Japan. A central goal is to localize XDC Network-related information, thereby rendering it more accessible to Japanese businesses and investors.Additionally, the venture is actively scouting for cryptocurrency exchanges who are prepared to use and promote the XDC network, further amplifying its adoption. Exploring collaborations with subnet and layer-2 enterprises forms an integral part of their strategy.Japan’s evolving stance on blockchainThe timing of this collaboration coincides with Japan’s evolving stance on blockchain technology and cryptocurrencies. Emerging reports indicate the Japanese government’s contemplation of allowing startups to raise capital through cryptocurrency tokens, marking a seismic shift away from conventional stock listing processes.In April the Japanese government released a whitepaper on Web3, in its efforts to explore ways to foster innovation in the emerging sector. Furthermore, Japan’s National Tax Agency has made adjustments to its cryptocurrency-related tax code, underscoring a proactive stance toward regulating the cryptocurrency industry. Related to that, the country’s Financial Services Agency (FSA) has been exploring tax exemptions relative to unrealized crypto gains.Japan has become known historically as a center of technological innovation. There have been soundings recently that it can rediscover its abilities in that respect through the development of Web3.The strategic alliance between SBI Holdings and TradeFinex charts a promising trajectory for the XDC Network within Japan’s trade finance sector. Anchored in a project that aspires to offer innovation, transparency, and operational efficiency, this joint venture offers considerable potential to spearhead the adoption of blockchain technology within one of the world’s most prominent financial markets.