ZA Bank gears up for retail crypto app offering

Korean Financial Watchdog Warns Investors Against Crypto ScamsThe South Korean Financial Supervisory Service (FSS) issued a press release today to warn investors against fraudulent cryptocurrency investment schemes.406 reported scams in two monthsBetween June 1 and July 30, the FSS received a total of 406 reports of crypto scams that lured individuals with false promises of high returns. Some of these perpetrators went to the extent of misrepresenting themselves as employees at crypto exchanges or project foundations. The FSS installed a virtual asset scam report center two months ago, which will run until this year’s end, as an interim measure before the implementation of the Virtual Asset User Protection Act in July of next year.Photo by Growtika on UnsplashSix scam typesTo strengthen its efforts, the FSS has shared six reported case types with the public and has issued investment warnings accordingly. Investors are advised to exercise caution when dealing with unlisted cryptocurrencies at low prices, as accurately determining their value can be challenging. Similarly, the FSS cautions against investing in cryptocurrencies sold at low prices with trading restrictions, as this could lead to difficulties in liquidating tokens if the price drops.The FSS also emphasizes the importance of being wary of cryptocurrencies with low trading volumes, as they can experience drastic price fluctuations due to limited activity. To prevent falling victim to impersonation scams, investors are urged to be cautious of individuals claiming to be employees of domestic virtual asset service providers or presenting official documents to solicit investments.Furthermore, the financial watchdog stresses the risks associated with suspicious requests associated with electronic wallets, particularly connecting to them via unsolicited emails, as they pose a high risk of being hacked.Lastly, the watchdog warns against falling for promises of high returns linked to cryptocurrencies endorsed by celebrities or well-known companies, as these may be illegal deposit-taking activities performed by unlicensed entities. The FSS advises investors to remain vigilant, conduct thorough research, and approach investment opportunities with skepticism to protect themselves from potential crypto scams.

StashAway Malaysia, a Malaysian Securities Commission (SC)-licensed digital investment platform, has extended its market offering to include crypto exchange-traded funds (ETFs) within the Southeast Asian nation. Malaysian daily English language newspaper the Sun reported on Jan. 22 that StashAway will enable Malaysians to invest in two top-tier cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), through its regulated platform.Photo by Traxer on UnsplashFidelity productsThe company is providing its Malaysian clientele access to crypto investment products offered by American multinational financial services company Fidelity Investments. These include the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Fidelity Ethereum Fund (FETH). StashAway Malaysia Country Manager Wong Wai Ken explained the company’s rationale in adding the two products. He stated: “Many of our clients have expressed interest in the long-term potential of major cryptocurrencies like Bitcoin but have been hesitant because of security concerns or the complexities of navigating crypto exchanges. We’re now offering them a familiar and safe way to diversify their portfolios by incorporating crypto through a platform they already know and trust.” On a previous occasion, Wong told the Sun that its role is to help investors to diversify their portfolios. Adding access to cryptocurrency fits that objective. The StashAway executive believes that while there may be growing mainstream adoption of cryptocurrency, many investors are turned off gaining exposure due to the risks involved with self-custody or the fees and counterparty risk involved with cryptocurrency exchanges. StashAway charges management fees ranging from 0.2% to 0.8%. The Fidelity crypto ETF products will be offered with a 0.25% annual management fee.  Last June, Malaysian commercial bank Affin Bank became the first entity to offer a crypto ETF in Malaysia. The bank partnered with local fund management company Cross Light Capital to launch the actively managed digital asset fund. Titled the “Performa Digital Asset Fund,” the product incorporates investment in Bitcoin and Ether exchange-traded products (ETPs), with the remaining third invested in blockchain-related equities. The approval of eleven Bitcoin ETFs in the United States led to greater consideration for the approval and addition of such products internationally. However, in the first few months following the launch of these products, regulators, exchange platforms and asset management firms still remained cautious.  In March of last year, Bursa Malaysia, Malaysia’s stock exchange, dismissed the notion of adding cryptocurrency to its multi-asset exchange. Within the region, regulators in Singapore and Thailand both dismissed the idea of enabling Bitcoin ETFs within their markets.  Since then, Thailand’s regulator has moved closer in its consideration of such a product offering. In the case of Malaysia, earlier this month, the country’s Prime Minister, Datuk Seri Anwar Ibrahim, called for stakeholders such as the central bank to focus on cryptocurrency so that the Southeast Asian nation doesn’t get left behind. StashAway is headquartered in Singapore. Besides Singapore and Malaysia, the company also serves investors in Thailand, the United Arab Emirates (UAE) and Hong Kong. The digital platform has 50,000 users in Malaysia, where it serves retail and accredited investors. The company was the first robo-advisor platform to acquire a Capital Markets Services License from the SC in Malaysia.

Sygnum Bank Achieves In-Principle MPI Licence Approval in SingaporeIn a significant milestone for its expansion efforts in Singapore and Southeast Asia, Sygnum Singapore has announced that it has received in-principle approval for its Major Payment Institution Licence (MPIL) application from the Monetary Authority of Singapore (MAS).Photo by Dids on PexelsOngoing global expansionThe Swiss-Singapore firm, headquartered in Zurich with an operational base in Singapore, disclosed this news via a press release published on Monday, marking a major stride forward for the company in its regulated crypto brokerage services.The world’s first digital asset bank also has offices in Abu Dhabi, the United Arab Emirates (UAE) capital, and Luxembourg. The digital assets innovation is progressing on a truly global basis. It’s also developing according to differing timelines on a regional basis relative to the regulatory approach being taken within individual jurisdictions. On that basis, we are seeing a move from many leading digital assets firms to expand internationally to benefit from jurisdictional regulatory arbitrage and in an effort to grow such businesses quickly, with a global reach.MPIL licensing significanceThe MPIL license will empower Sygnum Singapore to introduce a regulated crypto brokerage service that offers a fiat-digital asset gateway and facilitates trade execution for various cryptocurrencies. The platform aims to differentiate itself by providing competitive spreads, high liquidity, and swift trade settlements, in an effort to offer investors a seamless and efficient trading experience.This approval follows the extension of the Capital Markets Licence (CMSL) granted to Sygnum Singapore in 2022. With the CMSL extension, the company was able to launch an array of services encompassing corporate finance advisory, capital market products, and asset and security token custodial services.Wave of regulatory approvalThe approval of Sygnum Singapore’s MPIL application comes at a time when Singapore is witnessing a wave of regulatory acceptance for digital asset companies. Crypto.com and Circle are among the firms that have recently been granted full licenses, signifying a positive trend in the recognition and regulation of the digital asset industry in Singapore.Gerald Goh, Co-Founder and CEO of Sygnum Singapore, expressed his enthusiasm about the in-principle approval, highlighting its importance in the company’s growth plans: “This in-principle approval of our Major Payment Institution Licence by the MAS is a milestone in our strategic growth plans for Sygnum Singapore and South-East Asia.”He emphasized that Singapore’s regulatory framework provides the necessary clarity and confidence for investors to participate in the digital asset market: “Like Switzerland, Singapore has a progressive, robust regulatory framework that provides investors the clarity and confidence to invest in digital assets — and Future Finance — with complete trust.”The approval of the MPIL application is expected to bolster Sygnum Singapore’s position as a leading regulated digital asset service provider in the region. By obtaining this license, Sygnum strengthens its global position within the digital assets space while complementing Singapore’s efforts to develop as a regional crypto hub.