Hong Kong considers rules for fiat-backed stablecoin issuers

The focus of Thailand’s crypto market is moving towards institutional business rather than retail. That’s the view of Nirun Fuwattananukul, CEO of Binance Thailand. Changing regulatory landscapeFuwattananukul laid out his thoughts on the matter in an opinion piece published by the Bangkok Post on Oct. 25. The Binance executive believes that the regulatory conditions are changing in the country such that institutional involvement in digital assets will become more likely. Fuwattananukul pointed to a proposal that was put forward by the Thai Securities and Exchange Commission (SEC) earlier this month. The proposal, published on Oct. 9, seeks to permit mutual and private equity funds in Thailand to invest in various crypto products, including the spot Bitcoin exchange-traded funds (ETFs) that were launched in the United States earlier this year. Back in June, the Thai SEC green-lighted the launch of homegrown spot Bitcoin ETFs. In August, the regulator launched the Digital Asset Regulatory Sandbox, inviting interested parties to test crypto-related services within a controlled environment. Fuwattananukul described the SEC’s new rules opening institutional access to digital asset products as a “vital step in the maturation of Thailand’s cryptocurrency landscape.” The Binance Thailand CEO added that “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.”Photo by Vadim Artyukhin on UnsplashPotential regional crypto hubIt’s based on this rationale that the Binance executive perceives a shift in focus within the crypto market in Thailand, with the likelihood of more money flowing into the space from institutional sources than from retail.  The entry of institutional money could lead to a “more mature ecosystem,” while further legitimizing Bitcoin and the crypto space more broadly. Extending that line of thought, Fuwattananukul suggests that this change of focus to institutional involvement could lead to positioning Thailand as a regional digital asset hub.RWA tokenizationThe Binance Thailand executive also identified the tokenization of real-world assets (RWAs) as an area that’s trending right now. He cites it as an example of the convergence of TradFi and digital assets markets. Fuwattananukul stated: “Tokenisation brings 24/7 trading, increased liquidity, and cross-border accessibility, which could reshape traditional financial markets and make investment opportunities more inclusive.” Back in January, Thailand’s SEC introduced new rules that lifted restrictions on retail investors accessing two classes of tokenized RWAs. The change affected real estate-backed tokens or tokens linked to real estate revenues. Prior to the rule change, retail investors couldn’t invest more than $8,415 in such tokenized assets. In collaboration with Gulf Innova, a subsidiary of Gulf Energy Development, Binance launched Binance Thailand as a joint venture in January. The SEC had awarded the business a trading license in 2023.

The joint virtual asset crime investigation unit of the Seoul Southern District Prosecutors' Office announced the arrest of three executives from South Korean cryptocurrency yield platform Haru Invest, according to a report by local news agency Yonhap. They are accused of embezzling cryptocurrencies valued at over 1 trillion Korean won ($750 million).Photo by niu niu on UnsplashFraud lawsuitThis development comes after approximately 100 investors filed a fraud lawsuit in June against the executives of Haru and Delio, another Korean crypto lending firm.  The three leading executives of Haru, one aged 44 and the other two aged 40, are facing fraud charges for failing to return cryptocurrencies deposited by around 16,000 customers.Misleading promotionsInvestigations uncovered that Haru Invest was offering misleading promotions for its products. Despite assurances that it utilized a risk-free, diversified investment strategy to manage user assets, Haru Invest predominantly allocated the majority of these assets towards concentrated investments from March 2020 to June 2023. Haru Invest had garnered attention from crypto investors, promising an annual return of up to 12%.  Subsequently, on June 13, Haru halted the withdrawal of digital assets without prior notice. The platform is currently in the midst of bankruptcy proceedings.  Delio, having allocated some of its assets with Haru, also came under public scrutiny that same month when it ceased withdrawals just a day following Haru's questionable action.

Gemini Announces Singapore Expansion PlansGemini, the US-based cryptocurrency exchange and custodian, has announced its plans to expand its team in Singapore over the course of the next 12 months.Photo by Pixabay on Pexels100 new hiresGemini made the announcement by way of a blog post published to its website on Monday. In that post, the company outlined that it intends to add over one hundred new hires over the course of the next year. Gemini aims to focus on the Asia-Pacific (APAC) market, which it believes will play a crucial role in its next phase of growth.Indian engineering hubIn addition to its Singapore expansion, Gemini is actively working on setting up an engineering center in Gurgaon, India. Back in April, the firm’s newly appointed Chief Technology Officer and APAC region CEO, Pravit Tiwana, announced the intention of establishing the India-based engineering center. An intention to expand the Singapore base was also suggested at that time, with the company now following up with firm expansion plans.This engineering hub in Gurgaon is expected to become the second largest for Gemini, after its operations in the United States. By expanding its engineering capabilities, Gemini aims to bolster and support its global operations effectively.APAC to drive crypto growthGemini sees the APAC region as the driving force behind what it termed “the next wave of growth for crypto.” The exchange plans to use its Singapore office as a hub from which to run broader operations in APAC.This strategic move follows Gemini’s addition of support for the Singapore dollar (SGD) three years ago, enabling local residents to access cryptocurrencies directly using their native currency. The expansion plan provides Gemini with the potential to capitalize on the growing opportunities within the APAC market, further establishing a foothold in a significant regional market.Gemini’s decision to focus on international expansion aligns with the growing trend among cryptocurrency companies. Regulatory pressures in the US crypto market have escalated, exemplified by recent lawsuits filed by the US Securities and Exchange Commission (SEC) against major exchanges like Binance and Coinbase.These circumstances have prompted many companies to seek opportunities beyond the United States. In particular, exchanges are looking for markets with clearer regulatory landscapes and significant growth potential. Hong Kong, Singapore, and several European countries have emerged as attractive options.Coinbase, one of the largest cryptocurrency exchanges globally, has also followed a similar path to Gemini by expanding its services in Singapore. Singapore’s reputation as a crypto-friendly financial hub makes it an attractive location for such expansion efforts.Gemini’s decision to expand its team in Singapore and its focus on the APAC market reflects a strategic approach to capitalize on the increasing global demand for cryptocurrencies. By establishing a strong presence in key international markets, the company has found a workaround for the current impasse in the United States with regard to the lack of sane, workable regulation.The company has identified a region that is taking a more accommodating approach, while recognizing the APAC region’s potential as a significant driver of growth and is proactively positioning itself to tap into the region’s expanding crypto market.