Wintermute Asia executes inaugural options block trade via CME

Zipmex, the Asian digital asset exchange, faces another setback as the Securities and Exchange Commission Board of Thailand (SEC Board) moves to recommend the revocation of its digital asset business license. This decision, announced last week, marks the latest in a series of challenges for the exchange, which has struggled to navigate the complexities of the crypto market's downturn.Photo by Oleksandr P on PexelsCapital requirements failureThe SEC's recommendation stems from Zipmex's failure to meet the increased net capital requirement and address deficiencies in its personnel and management structure. These shortcomings were deemed unacceptable by the regulatory body, prompting a 15-day ultimatum issued on Feb. 1. Earlier this month, the Commission ordered a halt to Zipmex operations, enforcing a temporary suspension until such time as the company had improved its financial position and applied needed changes to its management structure.Despite this window for compliance, Zipmex fell short of meeting the specified conditions, leading to the current proposal for license revocation and the imposition of stringent regulatory measures on Thailand's digital asset exchanges. Business suspension extensionDuring a meeting on Feb. 21, the SEC further resolved to extend Zipmex's business suspension, initiated on Feb. 1, and allowed clients to request asset returns on the exchange until March 11. Any unclaimed assets after this date will be required to be placed in a "trusted and secured system," with Zipmex obligated to report this to the SEC. Notably, even after the potential revocation of its license, Zipmex will retain its status as a limited company, subject to associated rights, responsibilities and liabilities, including the possibility of legal action. Zipmex's woes trace back to 2022 when it faced significant challenges due to exposure to failed crypto lender Babel Finance. In July of that year, the exchange suspended withdrawals for weeks due to concerns over its ties to crypto lenders Babel and Celsius, both facing financial distress. Although access to Trade Wallets was restored after three days, Z Wallets remained inaccessible into the following year. Failed Coinbase and V Ventures dealsIn the midst of its troubles, Zipmex attracted interest from Coinbase, albeit without success. While Coinbase made a strategic investment in Zipmex, the acquisition attempt did not materialize as initially intended. Furthermore, Zipmex's financial struggles led it to file for debt relief in Singapore in July 2022, further complicating its position in the market. The exchange's regulatory challenges continued as it faced scrutiny from the SEC regarding compliance with the Digital Assets Act. Despite attempts to secure acquisition deals, such as the proposed acquisition by Thai investor V Ventures, Zipmex has been unable to alleviate regulatory concerns or stabilize its operations effectively. Since obtaining its license from the SEC in January 2020, Zipmex has operated in Thailand, Indonesia, Singapore and Australia. However, its inability to address regulatory requirements and financial challenges has cast doubt on its future viability in these markets.  In November of last year, the company itself announced a temporary cessation of trading in Thailand while it worked towards becoming compliant within that jurisdiction. Earlier this month, Thailand’s SEC took legal action against Akarlap Yimwilai, the former CEO of Zipmex Thailand.

Singapore-based cryptocurrency trading platform BingX has secured a sponsorship deal as the new sleeve sponsor for Premier League football club Chelsea.Photo by Chaos Soccer Gear on UnsplashJanuary 9 debutThe arrangement, spanning the next six months, is expected to debut during Chelsea’s Carabao Cup semi-final first-leg match against Middlesbrough on Jan. 9. As part of this sponsorship, BingX will prominently feature on the front of Chelsea’s training kits for the upcoming 2024/25 season. Meanwhile, the current shirt sponsor, Infinite Athlete, will transition to a training sleeve sponsorship starting next season. While details about the fate of Chelsea’s training kit deal with Trivago, an online hotel booking site, remain uncertain, the club is navigating sponsorship changes in the wake of owner Roman Abramovich’s prior ownership and UK government sanctions. Corporate rebrandEstablished in 2018, BingX operates as a cryptocurrency exchange headquartered in Singapore, catering to a user base of over 10 million in Southeast Asia and North America. In November, the company announced that it was rebranding the business. Part of that process was understood to involve an overhaul of BingX’s visual identity, with the introduction of a streamlined logo. Sponsorship within the English Premier League is a high profile marketing move that will undoubtedly bring more visibility to that brand. Crypto marketing spend reboundThe marketing spend of crypto firms relative to high profile sponsorship deals has recovered significantly in recent months. Such sponsorship deals peaked at the top of the crypto market in 2021. That period saw profligate spending by many of the large crypto platforms. A standout example was provided by the $135 million sponsorship deal signed by fraudulently run crypto exchange FTX for the Miami Heat stadium naming rights in the United States. While that opulent sponsorship spending subsided during the bear market, it appears that there has been a modest resurgence as market conditions have improved. Seychelles-based crypto platform OKX has ongoing marketing relationships with the McLaren Formula One racing team and Manchester City Football Club. In March, U.S.-based crypto exchange Kraken announced a marketing partnership with the Williams Formula One racing team. Earlier this week it emerged that crypto gambling platform Stake.com had signed a sponsorship deal with the Sauber Formula One team. 18 of the 20 English Premier League clubs are now understood to have agreed sponsorship deals at one time or another with crypto companies. This demonstrates the growing trend of cryptocurrency platforms associating with high-profile sports partnerships, enhancing their visibility and influence in the market. Chelsea is actively seeking a front-of-shirt sponsorship deal, considering potential collaborations, including discussions with Saudi national carrier Riyadh Air. It’s understood that the BingX deal has been agreed for in excess of £10 million ($12.7 million) per season.

It emerged on Wednesday that the Indian version of the Apple App Store has blocked access to eight crypto exchanges that were recently subject to a show cause notice from an Indian government agency, the Financial Intelligence Unit (FIU). The development occurred only two weeks after these global firms were flagged for allegedly operating "illegally" in the country. The FIU had cited non-compliance with India's anti-money laundering rules. In its statement on Dec. 28, the FIU urged India's IT Ministry to block the websites of all nine services in the country. The affected exchanges include Huobi, Gate.io, Bittrex, Binance, Kraken, Kucoin, MEXC Global and Bitfinex. Binance acknowledged the issue in a social media post, stating that it will continue to work with local regulators. Interestingly, Bitstamp, another exchange mentioned by the FIU, remained operational on the App Store in India. While these apps have been removed from the Apple App Store, they are still available on the Google Play Store in India and their websites remain accessible within the country. Users who had previously installed these apps on their devices can still access them. Photo by Naveed Ahmed on UnsplashTax avoidanceThe backdrop for this action involves a trend where many Indian traders had shifted to global cryptocurrency platforms rather than native digital asset exchanges. India initiated cryptocurrency taxation last year, imposing a 30% tax on gains and a 1% deduction on each crypto transaction.  While Indian-based exchanges like CoinSwitch, CoinDCX and WazirX maintain compliant know-your-customer verifications, global platforms have not followed suit. Notably, WazirX has experienced a drastic 97% drop in trading volume over two years as many traders migrated to global apps. It’s thought that as many as five million crypto users have shifted their trading activity to offshore exchanges. The tax has proven to be controversial and according to Dr. Vikash Gautam, the author of a report on the tax measure published last November, “it just isn’t enforceable . . . It is possible to be done with international cooperation, but we do understand it is a long process. Some of the other countries have some arrangements with international exchanges to track that." Leveling the playing fieldIt’s amid that competitive backdrop that native Indian exchanges lobbied the Indian government through the Bharat Web3 Association (BWA) to take action against unregulated offshore exchanges recently. CoinSwitch's co-founder and CEO, Ashish Singhal, urged offshore exchanges to comply with local regulations, suggesting registration with the FIU and adherence to India's Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) measures. Singhal, whose CoinSwitch platform is a founding member of the BWA industry advocacy group, highlighted that this would not only benefit offshore exchanges but also enhance consumer protection in India through increased regulatory oversight. Earlier warnings from Indian cryptocurrency exchanges foresaw users shifting to decentralized exchanges or non-compliant services due to the New Delhi government's taxation policy on crypto. In response, CoinDCX announced incentives for customers transferring their crypto assets from global exchanges to its India-based platform. Taking to social media on Wednesday, CoinDCX founder Sumit Gumpta stated:”This is a defining moment for [virtual digital assets] in India, and we're dedicated to facilitating a seamless and secure transition for investors navigating these changes.”