Hong Kong considers rules for fiat-backed stablecoin issuers

AsiaNext Secures Market Operator License from Singapore’s MASThe Monetary Authority of Singapore (MAS) has granted regulatory approval to AsiaNext, officially designating it as a Recognized Market Operator (RMO).The firm announced the milestone achievement via a blog post published to its website on Wednesday. The license opens the doors for AsiaNext to operate as a digital asset exchange exclusively catering to institutions, including banks, family offices, asset managers, broker-dealers, prime brokers, hedge funds, and market makers.This RMO license, granted by MAS, complements the in-principle approval of the Capital Markets Services (CMS) license awarded to AsiaNext in June. AsiaNext, under the leadership of its CEO, Chong Kok Kee, has positioned itself as an institutional-grade exchange with a focus on compliance and risk management.Kok Kee expressed his elation at receiving the full RMO license from MAS, emphasizing that the AsiaNext team has constructed an institutional-grade exchange governed by stringent compliance and risk management standards, not only for their organization but also for the various asset classes traded on their platform.Photo by Davis Sánchez on PexelsPivotal and positive industry shiftRecent months in Singapore, Hong Kong, Dubai, and other centers geared towards progressive regulation have demonstrated a pivotal shift in the industry, as responsible contributions to a secure digital asset ecosystem are now better poised to advance the mainstream adoption of digital assets.Chua Kah Hau, Chief Compliance Officer at AsiaNext, reiterated the company’s dedication to upholding the highest standards of regulatory compliance and corporate governance, aiming to provide a fair, orderly, and transparent marketplace where institutional investors can confidently reap the benefits of digital assets.Amidst the growing institutional appetite for trading digital assets, AsiaNext’s role is significant. There is a noticeable scarcity of regulated and secure platforms to satisfy this demand, making AsiaNext’s presence crucial in meeting this market need.AsiaNext originated as a joint venture between SBI Digital Asset Holdings and SIX Group in 2021. Now, holding both the RMO and CMS (in-principle) licenses, the firm is well-equipped to provide integrated listing, trading, and post-trade services for digital assets.Fernando Luis Vázquez Cao, CEO of SBI Digital Asset Holdings, highlighted Singapore’s favorable regulatory environment, stating: “The regulatory environment in Singapore is favorable for fintech firms, which is why we have selected it as the headquarters for AsiaNext. The nation’s commitment to fostering innovation and worldwide recognition of Singapore’s economic potential as a global digital asset trading hub have been pivotal factors in our decision.”Colt Technology partnershipIn a strategic move, last month AsiaNext partnered with Colt Technology Services to leverage its suite of secure, high-performance digital infrastructure solutions, including Multicast Market Data in the Cloud and PrizmNet.The partnership is set to facilitate high-frequency trading of various digital securities and crypto derivatives trading on AsiaNext. Notably, AsiaNext stands as the first institutional-grade digital exchange to utilize Colt Multicast Market Data in the Cloud, providing a unique solution to connect buyers and sellers.This connectivity breakthrough aims to bridge the gap between mainstream finance and secure digital assets trading, coming at a time of rapid growth in digital asset trading in Asia and significant global investment in the region’s crypto markets.

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.

Bitget Launches Blockchain4Youth ProjectSeychelles-headquartered crypto derivatives trading platform, Bitget, announced on Thursday the launch of a new corporate social responsibility (CSR) project. The initiative seizes upon an opportunity to execute on a public good while at the same time, benefiting the future prospects of the business itself alongside the overarching crypto space.Blockchain4Youth is a new initiative from the crypto business with the objective of “empowering and inspiring younger generations to use Web3 and crypto tools to create and engage in a decentralized space. ” With this goal, the trading platform believes that a blockchain future can be created.Photo by Jill Wellington on PexelYouth key to crypto adoptionWhile this is a CSR project, it’s easy to interpret it as a win/win. The future success of crypto lies with the younger demographic. They are the ones who are digitally native. They’re the ones that can more easily identify with truly digital money and digitally decentralized systems.Bitget seems to get this according to the statement it issued: “Bitget believes that a blockchain-based future is essential to building better products and tools to help people advance crypto adoption. The platform will be relying on the young generation to promote such ideas and will help them become proactive leaders.”This is telling as it demonstrates firstly that the Seychelles-based platform understands that the younger demographic represents its future customers. But it also clarifies that Bitget understands that future products need to be purpose built to meet the specific needs of that younger demographic.46% of millennials own cryptoIt appears that Bitget’s initiative is further motivated off the back of recent research it carried out. Released last month, that research study reveals that 46% of Millennial respondents said they owned cryptocurrencies, compared to 25% of Gen X-ers, 21% of Gen Z, and just 8% of Baby Boomers.The depth of the study extended to 255,000 survey responses received from respondents distributed across 26 countries, including places as diverse as the United States, Japan, China, Nigeria, Germany, Indonesia, and elsewhere. The study achieved responses per country of at least 10,000 respondents.The research also uncovered that “related statistics compiled on attitudes towards the regulation of digital assets indicate that each successive generation is more likely to factor in the attitudes of electoral candidates towards crypto regulation when casting their vote.”One of the study’s key findings is the following: “By 2030, all Gen Z members will be adults and the spread of blockchain technology by that time could lead to an increase in the percentage of cryptocurrency adopters across all generations. As such, the chances of the growth in acceptance of cryptocurrencies in the coming years are very high.”Broader industry involvementBitget intends to extend involvement in its Blockchain4Youth project beyond the company, with participation coming from other blockchain firms. The press release sets out that “the platform will also collaborate with other leading blockchain firms to incubate innovative projects by young entrepreneurs and host U30 (Under the age of 30) hackathons to identify the most promising ones.”The crypto derivatives platform is kicking things off later this month through a series of campus lectures in Thailand, Vietnam, and Taiwan covering the topic of Web3. As well as being open to collaborating with industry peers, the company also wants educators to take an active role in the initiative.