Crypto.com moves to further global reach with Hong Kong license application

Incheon City to Host Blockchain Conference Showcasing its VisionIncheon City will host a blockchain conference, Incheon Metanomics 2023, to showcase its vision at the Songdo Convensia Convention Center on May 9.The event will present the city’s goal of building a blockchain ecosystem and fostering digital economy growth. About 150 blockchain experts from around the world are expected to attend, according to Block Media.Insightful talksProminent industry figures, including Leon Sing Foong, the head of Asia-Pacific operations at cryptocurrency exchange Binance; Steve Park, Asia-Pacific head of public policy at online game platform Roblox; and Justin Kim, a solutions architect at semiconductor company AMD, will speak at the event. Foong will talk about the collaboration between crypto exchanges and governments, Park will provide insights into the future of the metaverse, and Kim will address upcoming trends in decentralized storage systems.Registration for the conference is free and open until May 4 through Event Us, with a live stream of the event available on YouTube.Incheon and DubaiIncheon has been working towards establishing a special digital economy zone within the city by utilizing blockchain technology. In March, Incheon Mayor Yoo Jeong-bok met with Ahmed Bin Sulayem, the executive chairman of the UAE’s Dubai Multi Commodities Centre (DMCC), to discuss cooperation in the blockchain industry and digital economy.The DMCC, a free trade zone in Dubai, hosts over 65,000 workers from more than 21,000 companies across 180 countries. Notably, the DMCC crypto center is home to a community of over 500 crypto firms, fostering the Web3 and blockchain economy.Similarly, Incheon operates a free trade zone that connects 147 cities with populations exceeding 1 million within a three-hour flight radius. The Incheon Free Economic Zone is appealing to global blockchain companies as it offers flexible business operations for foreign entrepreneurs.© Pexels/joon young, Park

Zodia Custody to Commence Yield Offering on StablecoinsIn a play that’s designed to entice institutional investors, Zodia Custody, a portfolio company of Japanese financial services conglomerate SBI, is gearing up to offer a yield on digital assets.Photo by CoinWire Japan on UnsplashIntroducing “Zodia Custody Yield”The crypto startup has introduced “Zodia Custody Yield,” a crypto staking option designed to reward holders of crypto assets stored within its platform. The initiative has been launched in partnership with Singapore-based DeFi platform OpenEden. It promises returns on stablecoins although full details on the offering remain undisclosed.Jeremy Ng, Co-Founder of OpenEden, expressed his belief in the potential of cryptocurrencies to generate substantial passive income for their holders. Ng stated:“There are billions of dollars worth of stablecoins sitting on the sidelines when they could easily be generating yields for investors.”TradFi embracing digital assetsZodia’s move aligns with a growing trend in the financial industry. Yesterday, a leading US bank, Citi, disclosed its collaboration with Maersk to facilitate services that convert funds into digital assets. The primary goal is to enable the bank’s customers to execute nearly instantaneous payments, unrestricted by traditional business hours.Simultaneously, several prominent asset management firms are awaiting a pivotal decision from the Securities and Exchange Commission (SEC) regarding their applications to launch a spot Bitcoin exchange-traded fund (ETF). This list includes major players such as BlackRock, Invesco, WisdomTree, ARK Invest, Valkyrie, and Franklin Templeton. BlackRock, the frontrunner in the efforts being expended towards ETF approval, submitted its application for a spot Bitcoin ETF on June 16.In a recent interview, Bloomberg analyst Eric Balchunas said that he expects $150 billion in capital to flow into the Bitcoin market within two years of a spot Bitcoin ETF approval in the US.The financial strategies of these entities now prominently feature blockchain and crypto-based products, once considered niche but now integral to their operations. Nonetheless, even with widespread anticipation of the approval of BlackRock’s ETF, the firm faces substantial obstacles. US regulators have subjected BlackRock to intense scrutiny due to concerns regarding its ties to China. Additionally, political figures have criticized the asset manager for prioritizing environmental, social, and governance (ESG) criteria over investor returns.Zodia was spun out of British multinational banking firm Standard Chartered. The bank has a positive outlook relative to crypto. In a bold prediction made in June, the UK-based bank forecasted that the value of Bitcoin could potentially surge to $50,000 by the end of the year, with an even more optimistic projection of $120,000 for 2024.In 2021 Standard Chartered, in collaboration with Northern Trust, a leading asset servicing firm, founded Zodia Custody. Since its inception, the venture has garnered a respectable level of success. It successfully secured $36 million in investments and solidified a partnership with SBI Digital Asset Holdings, enabling its expansion into the Japanese market.In May, the firm launched its crypto custodian service in Dubai, having signed a memorandum of understanding (MOU) with the Dubai International Financial Center (DIFC). In June, Zodia partnered with blockchain infrastructure provider Blockdaemon, in an effort to further its crypto staking offering. Earlier this month, the company announced its arrival in Singapore, with a view towards expanding its digital asset custody service there.

Lawsuit Sees Further Chinese Crypto TV CoverageChina’s state broadcaster, CCTV, rarely covers the topic of crypto but in the space of the past three weeks, it has covered the subject twice, with the latest segment covering the news of the United States Securities and Exchange Commission (SEC) filing a lawsuit against global crypto exchange, Binance.Photo by Paolo Chiabrando on UnsplashBad pressThe segment, which aired on CCTV, provided a brief overview of the lawsuit, stating that the SEC accused Binance, its Co-Founder Changpeng Zhao (CZ), and its American affiliate Binance.US of violating US securities laws. The report also noted that the prices of Bitcoin and Binance’s native BNB coin experienced a decline following the news.The lawsuit filed by the SEC received significant media attention due to Binance’s position as the world’s largest crypto exchange. The crypto industry in the US has been under increased scrutiny following the recent troubles faced by FTX, another major player in the market. Prosecutors have alleged that FTX engaged in fraudulent activities that harmed its users.Many blame US regulators who spent hundreds of hours with FTX executives working on projects, and US Capitol Hill politicians, 33% of whom received money from FTX, as being culpable for the FTX collapse. Despite this, it’s clear that the collapse is being leveraged to effect a clampdown on the digital assets sector.It is worth noting that the CCTV broadcast also made mention of a lawsuit filed by the US Commodity Futures Trading Commission (CFTC) against Binance and CZ in March. This lawsuit, similar to the SEC’s, focused on the sale of crypto derivatives. It is unclear whether CCTV covered the CFTC lawsuit when it was initially filed.CCTV’s coverage of crypto-related news is rare, making this particular broadcast significant and garnering wider attention. The outcome of legal action taken by the SEC against Binance is being watched carefully as it will likely have implications for digital asset regulation going forward.Previous coverageIn a previous broadcast last month, CCTV aired a segment that featured cryptocurrencies, including the Bitcoin logo. Ironically, given the nature of this latest reporting, Binance’s CZ regarded that previous coverage as a noteworthy event. Historically, such coverage has often preceded bull runs in the crypto market. The segment showcased what appeared to be a Bitcoin ATM in Hong Kong, displaying a prominent blue Bitcoin logo and an option to “Buy Bitcoins.”NFTs were also highlighted in the segment. Many speculated that the coverage signified a softening of the stance of the Chinese authorities in relation to crypto. However, the video of the initial crypto segment was taken down from the broadcaster’s website shortly after CZ tweeted about it.Despite it not being the most positive of news, CCTV’s coverage of the Binance lawsuit and its previous segment on cryptocurrencies indicates a growing interest in the industry from mainstream media outlets. The attention from a state broadcaster like CCTV suggests that regulators and authorities in China are closely monitoring developments in the crypto space and considering their potential impact on the broader financial landscape.