2PointZero launch in UAE to incorporate crypto investment

Newly Published CoinGecko Index Tracks Alleged Crypto SecuritiesKuala Lumpur-based crypto data aggregator CoinGecko has unveiled a ground-breaking index spotlighting prominent cryptocurrency tokens that the US Securities and Exchange Commission (SEC) has earmarked as potential securities.Through its “Top Alleged Securities Coins by Market Cap” page, the Malaysian aggregator categorizes a spectrum of cryptocurrency assets based on their market capitalization. At the forefront of this classification stands BNB, the native token of the Binance exchange and the BNB blockchain. It is closely followed by other prominent names such as Cardano, Solana, and Tron.Photo by Shubham Dhage on Unsplash$90 billion in valueThe alleged securities amount to a whopping $90 billion in value according to their combined market capitalization right now. Putting this in context, the overall market capitalization of the entire crypto market currently stands at $1.2 trillion, of which Bitcoin accounts for over half a trillion dollars. This estimation paints a vivid picture of the immense scale of the cryptocurrency market and the potential reverberations of regulatory interventions.CoinGecko’s index came to fruition in the first week of August, meticulously pooling the tokens that the SEC has previously classified as securities during legal proceedings. The decision to consolidate these tokens into a single index underscores the increasingly intricate interplay between the cryptocurrency market and regulatory frameworks.Lack of clarityWhen project teams and other market participants have asked for explicit clarity, SEC Chair Gary Gensler has frustratingly indicated that people need to make a simple determination based on the Howey Test — a historic securities case that has been used in the US to determine what constitutes a security. The case dates back to 1946, long before the onset of digitization let alone digital currencies.Another issue is that the SEC is simply expressing an opinion based on its interpretation of existing securities law and securities case law. Without legislation in the US, clarity can only be provided in the courts. This is a flawed approach, as market participants have to wait for actions taken by the SEC against crypto entities to be adjudicated in the US courts in order to get a better understanding of the legal standing of these assets.This comprehensive analysis provided by CoinGecko’s new index presents invaluable insights into the dynamic terrain of cryptocurrency regulation. It underscores the intricate dynamics between the digital currency market and the regulatory bodies that seek to govern it.Taking the regulation of derivatives as a case in point, their emergence led to a very messy process of arriving at regulatory clarity. The very same thing is playing out with digital assets. While it is imperfect, there is no doubt that clarity will eventually be reached.In the meantime, as the US fumbles where digital assets are concerned, regional authorities in East Asia and the Middle East are capitalizing on US regulatory shortcomings, implying that we will likely see further growth in crypto and Web3 in these locations until the US recovers.

Bakkt Signals Interest in Entering Hong Kong MarketBakkt, the US digital asset platform owned by Intercontinental Exchange, Inc., the owner of the New York Stock Exchange (NYSE), has set its sights on international expansion, with Hong Kong headlining its focus on regions that offer clearer regulatory frameworks for cryptocurrencies.Photo by Jimmy Chan on PexelsGreater regulatory clarity overseasCEO Gavin Michael highlighted Hong Kong as a target market for the company, given that the autonomous Chinese territory is making rapid progress in establishing regulatory clarity, and at a faster pace than in the United States. Alongside Hong Kong, Michael also earmarked the UK and parts of the EU as possible target markets based on similar rationale.Michael made the comments while speaking at the Piper Sandler Global Exchange & FinTech Conference in New York recently. While emphasizing the company’s commitment to the US market, Michael stated that Bakkt is actively seeking markets where it can gain traction and utilize them as a catalyst for growth. The recent acquisition of Apex Crypto, an integrated crypto-trading platform based in the US, further supports Bakkt’s international plans.Leveraging existing partnershipsMichael anticipates leveraging Apex’s existing partnerships with companies such as Webull, M1, Public.com, and Stash to facilitate expansion into international markets. Bakkt aims to accompany these companies as they venture into offering US equities trading, enabling the addition of crypto trading with minimal barriers to entry. However, regulatory concerns have led to the delisting of 25 tokens on the Bakkt platform.Michael highlighted the progress being made in crypto markets outside the US, where regulatory clarity is being achieved more rapidly. He cited the UK’s advancements in clear crypto regulation, Hong Kong’s allowance of trading certain cryptocurrencies, and the EU’s implementation of the MiCA framework for crypto regulation. While supportive of recent regulatory actions in the US, Michael believes that the country needs to provide further clarity, particularly at the federal level.The lack of regulatory clarity in the US has impacted Bakkt’s ability to collaborate with domestic companies. Despite launching with notable partnerships, including Microsoft and Starbucks, Michael revealed that many firms are awaiting clear regulatory guidelines before entering the cryptocurrency space. He noted that trading activity has been slower compared to Bakkt’s custody service, as regulatory clarity plays a significant role in shaping consumer sentiment and providing operational guidelines for trading platforms.Interest in Lightning NetworkIn addition to exploring international expansion, Bakkt is actively considering the use of the Bitcoin Layer 2 Lightning Network for custody and settlement services. Michael explained that this technology has the potential to revolutionize financial services, particularly cross-border payments.Bakkt’s strategic focus on markets with regulatory clarity and its acquisition of Apex Crypto demonstrate the company’s intent to grow beyond the US. By expanding into Hong Kong, the UK, and the EU, Bakkt aims to meet the demand of partners eager to explore these markets.However, the company recognizes the need for the US to provide clearer regulatory guidelines to foster innovation and accelerate adoption within the domestic cryptocurrency industry. With its custody services gaining traction, Bakkt is still optimistic about the potential of trading as regulatory clarity continues to improve. Moreover, Bakkt’s exploration of the Lightning Network showcases its desire to leverage emerging technologies for more efficient financial services.

OSL Prepares for Fund Launch Following License ApprovalIn a press release published on Tuesday, Hong Kong-based digital asset platform OSL announced that its asset management business, OSL Asset Management (OSLAM), has been granted a license to trade by the autonomous territory’s securities regulator.Photo by Eliobed Suarez on UnsplashType 1,4 & 9 approvalHong Kong’s Securities and Futures Commission (SFC) has issued the firm with a license which permits it to carry out trading activities encompassing Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 activities. The latter category enables OSLAM to carry on a business involved in asset management.Upcoming fund launchWith licensing secured, OSLAM is now building up to its first fund launch which it envisages will happen within the next few months. According to the statement the company released, “OSLASM’s inaugural product offering will concentrate on unlocking new opportunities in the rapidly growing sectors of blockchain solutions, artificial intelligence (AI), and Web 3.0 technologies.”The firm claims that it has access to unique deal flow, together with the experience to operate in the asset management arena relative to the digital asset sector. OSL thinks that it is well placed in this regard as it is one of only two companies in Hong Kong who are currently licensed to facilitate security token offerings, trading and dealing.”OSL is an offshoot of the BC Technology Group, a company that provides staffing services to clients in the telecommunications sector. Ken Lo, the Deputy Chairman of BC Technology Group said that this milestone would empower the company “to explore new frontiers in blockchain and AI, creating value for our clients and shaping the future of the industry.” He added that the firm “can unlock unprecedented opportunities for growth, collaboration, and value creation” relative to these sectors.Licensing going live in JuneHong Kong has been pulling out all the stops to enable crypto business in recent months. It recently called on the banks to make an additional effort in catering to the needs of crypto businesses. It has been working on a regulatory framework culminating in this licensing regime. Licensing goes live on June 1.Speaking at the Bloomberg Wealth Asia Summit on Tuesday, Eddie Yue, the CEO of Hong Kong’s other regulatory body, the Hong Kong Monetary Authority (HKMA), said that the autonomous territory had very high guardrails over the past number of years that impeded the development of digital asset-related business. Yue believes that Hong Kong now has the right level of regulation and investor protection in place to enable the development of the sector.According to Yue, Hong Kong sees a greater opportunity in the overarching digital assets space as it develops. “Virtual assets or crypto is actually a very broad term. It’s not really about crypto, you’re talking about stablecoins or tokenized assets in the future.,” he stated.Many commentators have suggested that all illiquid real world assets will ultimately be tokenized in the future. As it stands today, a mere $0.3 trillion of illiquid real world assets have been tokenized. Some researchers anticipate that this level of real world asset tokenization will climb to $16 trillion by 2030.