BU Technology to provide digital asset issuance platform to Ret Games

Surge in Hong Kong Crypto License Applications from Mainland-Linked BrokersTwo new platforms with mainland China links are preparing to apply for retail trading licenses in Hong Kong, with several others believed to be interested in following suit.According to a report published by Nikkei Asia earlier this week, the platforms, Yax and PantherTrade, have connections to mainland online securities brokers. PantherTrade is reportedly associated with Futu, a company which in turn is backed by Chinese tech giant Tencent, one of China’s largest technology companies. Yax, an emerging player in the crypto sector, has strong links to UP Fintech Holding, a Beijing-headquartered firm more commonly known as Tiger Brokers.Photo by Kanchanara on UnsplashCapital flight concernsThese connections are significant, given the previous involvement of these brokers in helping mainland Chinese customers invest in offshore assets, primarily US stocks. The firms have previously attracted the attention of China’s financial regulators. A notice from the Chinese securities watchdog in December last year compelled them to cease their “illegal cross-border business” activities.While crypto trading is banned in mainland China, an investigative report by the Wall Street Journal in August suggested that global exchange Binance was thriving in China despite the ban. Actions taken by the Chinese authorities are demonstrative of some level of concern with regard to crypto trading and potential capital flight through crypto.VASP licensingThe move by Yax and PantherTrade signals their intention to apply for a virtual asset service platform (VASP) license in Hong Kong, which would enable them to operate cryptocurrency exchanges for retail customers.Currently, both platforms are undergoing third-party assessments, a mandatory step preceding their formal application to the Securities and Futures Commission (SFC). The timeline for their applications remains uncertain.Broader interestThe growing interest in VASP licenses is not unique to Yax and PantherTrade. At least four other exchange platforms, similarly linked to mainland China, have also sought the same license, highlighting the eagerness of various players to enter the Hong Kong market. OneDegree, the sole licensed insurer for digital assets in Asia, has observed a significant uptick in license applications, including applications from traditional financial institutions, reflecting a positive trend toward educating the mass market.The SFC’s recent decision to make license application information public is an attempt to enhance transparency, following a scandal related to Dubai-headquartered crypto exchange JPEX in which over HK$1.5 billion (approximately $190 million) in virtual assets reportedly disappeared from the exchange.Currently, only two cryptocurrency exchanges, OSL and Hashkey, have received SFC approval. Others, including online brokers, have considered applying for licenses since late last year but are awaiting greater regulatory clarity before taking the plunge.Hong Kong, under the “one country, two systems” framework, has established itself as a hub for legal retail trading of cryptocurrencies. This development may signify a shift in China’s stance on digital assets and its increasing openness to crypto initiatives, as noted recently by blockchain data provider Chainalysis.

Binance’s U.S. legal woes may have repercussions for its expansion in ThailandWhile Binance, the world’s largest cryptocurrency exchange, is gearing up for a new trading venture in Thailand, the recent guilty plea by the firm in the United States and the hefty $4.3 billion penalties for anti-money laundering and sanctions violations have raised concerns about the feasibility of its Thai market venture.That’s a consideration that has been raised by a recent report by Bloomberg. Earlier this month, it emerged that Binance had entered the beta testing phase of its Binance.th platform in Thailand. The venture is a collaboration with the local company, Gulf Energy Development Pcl, led by billionaire Sarath Ratanavadi.Photo by Peter Borter on UnsplashCasting a shadow over expansion plansFollowing Founder Changpeng Zhao’s (CZ) departure from the CEO role in the wake of the US criminal probe resolution, Singaporean Richard Teng, a regulator-turned-crypto executive, has taken the helm at Binance. In its report, Bloomberg suggests that these recent issues in the U.S. have “cast a shadow over the planned domestic digital-asset platform” in Thailand.The new Binance CEO has emphasized Binance’s commitment to compliance overhaul and increased corporate transparency. In an interview Ratanavadi expressed confidence in Binance, noting that the company was not accused of crimes such as fraud or misuse of customer funds in the U.S. settlement. He stated:“Binance grew extremely fast and so probably crossed paths with some regulations.”Despite the regulatory storm, Ratanavadi chose Binance due to its market-leading position. The stringent scrutiny by Thailand’s Securities and Exchange Commission and the approval process, including inquiries about Binance, reflect the regulator’s cautious approach. The Gulf Binance Co. platform is set to launch fully in January, with Gulf Energy holding a 51% stake and Binance the remaining share.Challenges in other Asian marketsThe company may also face additional challenges in other Asian markets as a consequence of its regulatory troubles in the United States. While it remains to be seen if this was an unrelated development, it emerged earlier this week that regulators in the Philippines were moving to block access to the Binance platform and curtail the exchange’s ability to target Filipinos through advertising.In South Korea, Binance’s activities in the country have come under renewed scrutiny within the crypto community in the wake of the regulatory penalties Binance has experienced in the U.S. Binance is active in that market through its acquisition of fiat-to-crypto exchange GOPAX. While GOPAX management are unfazed by these events, others have suggested that there may be consequences in terms of the ability of GOPAX to achieve full regulatory approval.Demand reductionAnother challenge for the Thai venture includes a reduction in demand for crypto trading services in the Southeast Asian country. Official data reveals a significant drop in monthly trading volume at licensed digital-asset operators in Thailand, falling from over 250 billion baht in November 2021 to 17 billion baht ($490 million) in September 2023. The number of active trading accounts has plummeted by 87% from the peak in 2021.Ratanavadi, whose net worth is estimated at $11 billion, believes that tighter regulatory oversight will restore investor confidence. Gulf Binance’s technology partner, Advanced Info Service Pcl, with its retail outlets, is expected to contribute to the joint venture’s marketing efforts.

Over Half of Leading Korean Conglomerates Are Venturing Into Web3 and BlockchainMore than half of South Korea’s conglomerates are ushering in the emerging era of Web3 in an attempt to seize new business opportunities presented by a decentralized internet that permits open access and sharing of resources as well as ownership of personal data.Photo by Abbe Sublett on UnsplashSurging interest among Korea’s biggest enterprisesAccording to a survey conducted by local news outlet E Today, 46 of Korea’s top 82 corporations as designated by the Fair Trade Commission (FTC) are pursuing ventures in Web3 and blockchain this year, including those related to non-fungible tokens (NFTs), security tokens, and logistics chains. The survey examined whether the corporations had issued coins, tokens, or NFTs; whether they had corporate divisions or subsidiaries dedicated to blockchain-related projects; and whether they had made investments in blockchain or digital asset-related companies as well as coin and token issuance projects. It was conducted remotely using publicly disclosed information and press releases.Of the 82 total companies, 48 are under the mutual investment restriction system, which prohibits independent corporations from investing their capital in the form of an exchange. Commercial law prohibits mutual stock holdings between parent companies and their subsidiaries in order to prevent a processive increase in company assets through mutual investments. Of those 48, the survey revealed that 32 are engaged in blockchain and Web3-related projects.Nearly 60.42% of the mutual investment restriction group and 48.78% of the total survey group were found to have become involved in the field by signing business deals with blockchain and digital asset-related companies or utilizing blockchain technology themselves.On the other hand, only seven corporations, or 8.54%, had directly issued digital assets or invested in related companies. On the other hand, 26 firms, or 31.71%, invested in NFT-related businesses.Navigating the path to Web3 adoptionHowever, although Web3 is gaining traction as the next generation of future innovation, it has not yet become the dominant trend as Web3 platforms have yet to attract a significant user base. This hindrance can be attributed to the ongoing crypto winter and strict financial regulations.Woo Jong-soo, Director of the Pohang University of Science and Technology’s (POSTECH) Blockchain Research Center and a professor at POSTECH’s Graduate School of Information and Communication, also pointed out that in order for blockchain to exert its influence as an innovative technology, it should be open to the public like Bitcoin. There will be limitations in implementing centralized private blockchains into corporate businesses, he said.But despite these challenges, major leading companies are still pushing their own Web3 and blockchain projects. “The current situation is not an ideal time for diving into Web3 and blockchain businesses, but everyone is quietly preparing while waiting for regulatory uncertainties to be resolved,” said an anonymous developer working at a major corporation.Notably, Park Hye-jin, a professor at the Seoul School of Integrated Sciences and Technologies, revealed that she had received separate Web3 business consultation requests from several teams under the same division of a particular corporation and that these teams were essentially unaware of each others’ ventures into the field. The corporation, which ostensibly announced that it had closed its business, also continues to request consultations, she claimed, highlighting the corporate world’s acknowledgment of Web3’s potential.“Individuals can now monetize and have control over their data, which big tech companies like Facebook and Instagram used to own,” Park explained. “The essence of Web3 is that it is ushering in an era where users have the ability to take initiative.”