Hong Kong Enticing Crypto Firms from Mainland China

Thailand’s Securities and Exchange Commission (SEC), the Southeast Asian nation’s securities regulator, is believed to be considering moving towards approving spot Bitcoin exchange-traded fund (ETF) products.  In an interview with Bloomberg, the Thai SEC’s Secretary-General, Pornanong Budsaratragoon, said that the agency is weighing up whether to allow individual investors and institutions to access spot Bitcoin ETFs. Budsaratragoon stated: “We have to adapt and ensure that our investors have more options in crypto assets with proper protection.”Photo by Photo By: Kaboompics.com on PexelsMoving along with global crypto adoptionJanuary 10 marked the first anniversary of the approval of spot Bitcoin ETFs in the United States. Given that the U.S. is home to the world’s largest capital markets, that decision has had an impact internationally. That reality is borne out by one of Budsaratragoon’s comments. She stated: “Like it or not, we have to move along with more adoption of cryptocurrencies worldwide.” While the SEC Secretary-General’s comment suggests that she feels a compulsion to move forward in line with developments elsewhere, that wasn’t the agency’s position in January 2024 following spot Bitcoin ETF approval in the U.S.  Shortly afterwards, the regulator, alongside its regional counterpart in Singapore, outlined that it had no plans to approve the product in Thailand, stating: "The SEC has been following these developments closely but we do not have a policy to allow spot Bitcoin ETFs to be established in Thailand for the time being.” Initial access to overseas productsIn March of last year, the agency had warmed to the Bitcoin ETF product offering to a greater extent, by approving access to such products listed overseas to high-net-worth individuals and institutions. Off the back of that approval, One Asset Management (ONEAM) launched a fund of funds in June 2024, enabling Thai investors to gain exposure to Bitcoin ETFs which had been publicly listed overseas. Back in October, Nirun Fuwattananukul, CEO of Binance Thailand, stated in an opinion piece published by the Bangkok Post that he felt that the Thai crypto market was moving from retail towards a focus on the institutions. He stated:“By allowing more institutional funds to participate, the SEC is enabling a diverse range of investment strategies and helping digital assets gain broader acceptance in the mainstream.” Fuwattananukul suggested that the local regulator had made some changes on Oct. 9, paving the way for institutional-grade mutual and private funds to invest in crypto products. The approval of locally listed Bitcoin ETF products would broaden investor access to digital assets in Thailand, particularly in relation to institutional investors, which is in line with the thinking of the Binance executive. Earlier this month, Thailand’s Deputy Prime Minister, Pichai Chunhavajira, announced that a pilot program was being launched to help foreign tourists pay for goods and services using crypto within the Thai resort city of Phuket.  Meanwhile, former Thai Prime Minister Thaksin Shinawatra expressed a bullish view on crypto in a speech he made in Bangkok last week. Shinawatra called on the country’s institutions to be more open to cryptocurrency, while citing regulatory developments in the U.S. relative to the emerging asset class.

Upbit Accidentally Accepts Counterfeit APT Tokens, Initiates Retrieval EffortsUpbit, South Korea’s largest cryptocurrency exchange, is reported to have accepted deposits of counterfeit Aptos (APT) tokens, mistaking them for their legitimate counterparts. The exchange has been reaching out to the sellers of these tokens by phone, requesting their recovery. This news has been circulating in several online crypto communities since the afternoon of September 24 (Korea Standard Time).Photo by Kenny Eliason on UnsplashUpbit’s responsesOn September 24 at 15:47 KST, Upbit announced a temporary suspension of deposit and withdrawal services for APT due to maintenance on the APT wallet. Following this, at 22:32 KST on the same day, Upbit explained that system maintenance was undertaken after identifying an unusual attempt linked to APT deposits. The crypto exchange went on to announce that the deposit and withdrawal services for APT would resume at 23:00 KST on the same day.DeFi degenerates’ insightsIn relation to this incident, Definalist, a group of DeFi degenerates based in Korea, shared insights on X (formerly Twitter). The group stated: “It seems that during the process of reflecting $APT coin deposits, there was a failure to check the type arguments, and all same functions transfers were recognized as the same APT native token. … If all APT ecosystem tokens were sent to Upbit’s wallet, they would have been mistakenly treated as APT native coins.”Decimal place differenceDefinalist also remarked on the fortunate nature of the counterfeit APT token having six decimal places, in contrast to the authentic APT token’s eight. They noted that if the deceptive token had mirrored the genuine token’s decimal places, the market disruption could have amplified a hundredfold. Meanwhile, the value of the counterfeit APT tokens deposited into Upbit is estimated to be about KRW 20 million (approximately $15,000).

TransFi, renowned for its global payment solutions, is collaborating with Coinbase Wallet to streamline the process of purchasing cryptocurrencies, with a particular focus on enhancing user experience in Asia.Photo by Traxer on UnsplashFacilitating seamless onboardingBy integrating with Coinbase Wallet, TransFi aims to simplify the onboarding process for businesses and individuals, ultimately fostering greater adoption of cryptocurrencies in the region. This strategic integration is designed to eliminate barriers to entry and make cryptocurrency transactions more efficient and accessible. Enhanced payment options across AsiaIn a significant move, users in the Philippines, Vietnam and Indonesia now have access to expanded payment options through Coinbase Wallet. In the Philippines, GCash and PayMaya, popular digital payment platforms, have been integrated, while Vietnam sees the addition of Viet QR, Momo and Viettel Pay. Indonesian users can utilize OVO and Dana, leading payment apps in the country. These partnerships leverage existing, widely-used payment infrastructures to provide users with more convenient avenues for purchasing cryptocurrencies. The expansion into the Asian market reflects the growing demand for cryptocurrencies in the region and highlights Coinbase's commitment to broadening its reach by collaborating with local payment services. This trend underscores the increasing integration between crypto platforms and local payment solutions, signaling a positive trajectory for cryptocurrency adoption across Asia.