K-GAMES and KOCCA release report on overseas gaming regulations

Crypto licensing developments in Singapore over the course of 2024, allied with feedback from industry insiders, suggest that the city-state has furthered its development as a crypto industry hub in the Asia-Pacific (APAC) region.Photo by Mike Enerio on UnsplashDoubling up on licensing issuanceAccording to a report published by Lianhe Zaobao, a Chinese language newspaper in Singapore, the Monetary Authority of Singapore (MAS), had issued twice the number of Major Payment Institution (MPI) licenses in 2024 by comparison with the previous year. Four licenses were issued in 2023 to Crypto.com, Coinbase, Ripple and Blockchain.com. That compares with 13 licenses issued in 2024 to companies such as GSR, BitGo, Anchorage, Upbit and OKX. This uptick in licensing signals a regulatory regime that is innovation-friendly, resulting in Singapore becoming a key destination for startup companies in the crypto and Web3 space. Risk-adjusted regulatory approachAccording to William Croisettier, chief growth officer at ZKCandy, Singapore is primed to continue its development as a leading crypto hub for Web3 businesses within the APAC region. ZKCandy is a gaming-focused hyperchain within the zkSync ecosystem that has developed due to a collaboration between the Ethereum layer-2 zkSync network and Southeast Asia’s largest gaming developer, iCandy. Croisettier spoke to Cointelegraph on the matter recently, stating: “The country adopts a risk-adjusted approach to crypto regulation, focusing on the biggest digital currencies to protect investors. Singapore also makes it easy for new crypto firms to interact with local banking partners, a provision considered a luxury in other parts of the world.” Mouloukou Sanoh, co-founder and CEO of Dubai-based Mansa Finance, a DeFi platform that provides liquidity to cross-border payment companies, has also spoken positively about Singapore’s status within the crypto sector. Sanoh stated: “With its clear regulations and support for innovation, Singapore attracts top companies and talent, fostering a thriving ecosystem. This proactive approach signals a strong commitment to digital finance, contrasting with Hong Kong's more cautious stance.” Positive study findingsThese views correlate with a recent study carried out by ApeX Protocol, a multi-chain liquidity platform. The study applied a ranking to ten jurisdictions based on factors such as jobs created in the blockchain field, the number of crypto exchanges located within a jurisdiction and the number of blockchain-related patents filed. On that basis, it found that Singapore topped the rankings, ahead of Hong Kong in second place. Singapore was found to have 81 crypto exchanges located within the city-state, over 1,600 blockchain-related patents filed and 2,433 crypto-sector jobs created. A recent survey conducted by CoinDesk found that from a crypto adoption perspective, Thailand, followed by the United Arab Emirates (UAE) and India, lead the APAC region. Of the 10 countries surveyed, Singapore weighed in in seventh place with a 23% adoption rate, just one percentage point behind Hong Kong with 24%. As Hong Kong and Singapore compete to attract crypto-related business, both still have room for improvement when it comes to the crypto adoption metric in comparison with other Asian countries. 

The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) are charting new regulatory territory with the release of a comprehensive consultation paper outlining their proposal to accept and regulate fiat-referenced stablecoins (FRS) within the Chinese autonomous territory.Photo by Ben Cheung on PexelsConsultation processThe proposal has been published to the FSTB website in the form of a consultation paper titled “Legislative Proposal to Implement the Regulatory Regime for Stablecoin Issuers in Hong Kong.” Separately, the HKMA has published a press release on the topic. This development seeks to establish a regulatory framework for stablecoin issuers and address associated risks. The consultation period is scheduled to conclude on Feb. 29 of next year. At the heart of this legislative proposal is the requirement for companies actively marketing the issuance of FRS to the public of Hong Kong to obtain a specific local license from the HKMA. The proposed criteria for obtaining this license are robust and include key elements such as maintaining reserves “at least equal to the par value” of all circulating stablecoins. This measure ensures that stablecoins remain fully backed, contributing to their stability and reliability. The legislation also places a strong emphasis on the segregation and secure safekeeping of reserve assets, enhancing the protection of users’ funds and preventing misuse. Furthermore, issuers will be mandated to provide transparent disclosure and regular reporting, fostering accountability and transparency within the stablecoin ecosystem. It is noteworthy that the proposed regulations explicitly exclude algorithmic stablecoins from obtaining an HKMA license, underlining a preference for stablecoins with solid reserve backing. No doubt the spectacular collapse of the UST algorithmic stablecoin in 2022 has informed the Hong Kong regulator’s decision to exclude consideration of algorithmic stablecoins in this instance. Need to establish Hong Kong presenceTo underscore their commitment to regulatory compliance, stablecoin issuers seeking an HKMA license will also be required to establish a registered office in Hong Kong. This office must have a chief executive, senior management team and key personnel in place, aligning with Hong Kong’s efforts to ensure that all activities related to stablecoin issuance are conducted responsibly. The proposed licensing regime for FRS aligns with Hong Kong’s broader strategy to foster the growth of the Web3 ecosystem within the region. Christopher Hui, Secretary for Financial Services and the Treasury, highlighted the significance of this move, stating: “With the implementation of the licensing regime for VA trading platforms from June this year, the legislative proposal to regulate FRS is another important measure facilitating Web3 ecosystem development in Hong Kong.” Market competitionBack in February, the HKMA signaled its intent to regulate stablecoins when it issued a discussion paper considering various regulatory approaches. Competition is on an upward trajectory relative to stablecoin issuance and use. In June, Hong Kong-based qualified custodian First Digital Trust announced that it was gearing up to launch "First Digital USD," a U.S. dollar-backed stablecoin regulated in Asia rather than the United States. Leading stablecoin issuer Circle has been active in furthering its product offering in Asia during 2023. It successfully attained licensing approval in Singapore while in Japan, it joined forces with SBI Holdings in an effort to propel further growth of its USDC stablecoin within the Japanese market.

KuCoin Report Points to Marked Increase in Crypto Investors in TurkeyAs part of its “Into The Cryptoverse: Understanding Crypto Users” series, Seychelles-based crypto exchange KuCoin published a report on Thursday that identifies a significant increase in the number of crypto investors in Turkey over the course of the past eighteen months.Photo by Dima Rogachevskiy on UnsplashCrypto adoption surgeThe report, the fifteenth such report produced by KuCoin as part of this series, reveals that there has been a substantial surge in crypto adoption among Turkish adults, with an impressive 52% of the adult population participating in crypto investments.Since November 2021 there has been a 12% increase in the number of crypto investors aged 18 to 60. These statistics underscore the growing interest and acceptance of cryptocurrencies in Turkey. It’s not likely to be a coincidence that this surge in adoption has come about against the backdrop of the local currency, the Turkish lira, losing more than 50% of its value against the US dollar.Here are some of the key insights that the report identified:Growing Crypto Adoption Among Turkish Adults: The survey indicates a significant upswing in the number of Turkish adults investing in cryptocurrencies. The percentage of adults embracing crypto has surged from 40% to 52% over the last year and a half, despite the overall crypto market finding itself in the doldrums within that time frame.Increased Female Participation: While male investors continue to dominate at a rate of 57%, the survey points to a notable trend of increasing participation among women, particularly in the younger age brackets. Approximately 47% of female crypto investors are between the ages of 18 and 30.Youth-Driven Growth: Younger generations are leading the crypto adoption charge, with investors aged 31 to 44 constituting the largest group at 48%. Furthermore, a significant proportion of investors under 30 joined the market within the past year, indicating the influence of youth within the crypto space.Many have expressed the view that crypto adoption will come about through the younger demographic. It’s a factor that has not gone unnoticed by crypto platforms, including fellow Seychelles-based exchange Bitget.Motivations for Crypto Investments: The report delves into the motivations behind crypto investments among Turkish adults. A substantial 58% express the desire to create long-term wealth, transcending generational boundaries. This suggests a widespread belief in crypto’s potential as a tool for financial freedom.Popular Cryptocurrencies: Bitcoin remains a favored choice, capturing 71% of overall investor interest. Ethereum follows closely with 45% interest, while stablecoins garnered the attention of 33% of surveyed participants.Crypto Trading Dominates: A significant 70% of Turkish participants use crypto for trading, indicating the prevalent use of cryptocurrencies as investment instruments. Meanwhile, 22% have ventured into buying NFTs.Influence of Personal Connections: Personal relationships play a pivotal role in driving crypto adoption in Turkey. About 57% of participants learned about crypto through family and friends, highlighting the significance of these connections in introducing newcomers to the crypto world.This finding resonates with a similar finding relative to a recently published report covering crypto adoption in Vietnam.The report has been based upon online surveys carried out by KuCoin between May 5 and May 12 of this year.