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

Blockchain.com Secures License to Expand Operations in SingaporeBlockchain.com, the London-headquartered crypto financial services company, has achieved a significant milestone by obtaining a payment license in Singapore.Photo by Mike Enerio on UnsplashAsian expansionThe move signifies the platform’s expansion not only within Asia but also on a global scale. In a press release issued on Monday, Blockchain.com proudly announced its acquisition of a major payment institution (MPI) license from the Monetary Authority of Singapore (MAS) on August 1.The development follows an in-principle approval granted to Blockchain.com by the Singaporean central bank back in September 2022. With the newly acquired MPI license, the platform is now authorized to provide “digital payment token” (DPT) services to both institutional clients and investors in Singapore.Removal of transaction volume limitsUnder the regulatory framework of MAS’s Payment Service Act, the license grants Blockchain.com the authority to operate as a platform facilitating the exchange of various DPTs while also conducting DPT transactions themselves. An interesting facet of the license is that it liberates the crypto exchange from certain transaction volume limitations set within Singapore, as outlined on MAS’s official website.Expressing enthusiasm about this accomplishment, the Co-Founder and CEO of Blockchain.com, Peter Smith, lauded the crypto-friendly environment in Singapore. Smith commended the Monetary Authority of Singapore for its transparent regulatory process, on the basis that it strikes a balance between overseeing the crypto industry and fostering innovation. He stated:“We are thrilled to receive this license that will allow Blockchain.com to bring our industry-leading products and services to Singapore. We commend the Monetary Authority of Singapore on its transparent regulatory process that prioritizes crypto industry oversight while allowing innovation to thrive.”Over a decade in operationHaving been established in 2011, Blockchain.com boasts a reputable standing as one of the crypto industry’s pioneers. It’s most well known for its Bitcoin blockchain explorer and its wallet service. With a user base of 87 million active wallets and 37 million verified customers, the exchange business claims that it accounts for a large chunk of all Bitcoin network transactions.Singapore, heralded for its emergence as a crypto hub, has welcomed other crypto entities holding Major Payment Institution (MPI) licenses, including prominent stablecoin issuers Circle and Paxos. The city-state has drawn a significant influx of crypto businesses in recent years, supported by its well-defined regulatory framework and the government’s commitment to nurturing the burgeoning crypto landscape within its borders.Fostering Web3 innovationMAS has demonstrated that it is aligning itself with a dedication to fostering innovation, with its recently announced plans to allocate $112 million over a span of three years for the development of cutting-edge financial technologies. This initiative will encompass fintech solutions grounded in Web3 principles.Nevertheless, Singapore remains cautious about the potential risks associated with the crypto space. In July, MAS directed all crypto businesses within its jurisdiction to transfer user assets to statutory trust accounts before the end of 2023. This precautionary measure is likely to be a reaction to crypto failures such as that of crypto-lender Hodlnaut and crypto exchange FTX, which affected Singaporeans disproportionately. It aims to minimize the risk of asset loss or misappropriation.MAS also has moved to permit crypto firms to offer staking and lending services solely to institutional clients, imposing a ban on the retail market for these services.

Korean Crypto Exchanges Struggle Despite Market RecoveryThe results of a recent study by the South Korean Financial Intelligence Unit (FIU) released on Monday revealed that ten domestic cryptocurrency exchanges have reported zero revenue from transaction fees, with half of them struggling to achieve a daily average trading volume of KRW 1 million ($740).Photo by Maxim Hopman on UnsplashTrends of growth and declineThe study looked into data from 35 registered virtual asset service providers (VASPs) for the first half of this year. The findings showed that compared to the second half of last year, the crypto market capitalization and Korean won deposits increased, but exchanges faced growing challenges, illustrated by a widening gap between leading fiat-to-crypto exchanges and smaller crypto-only exchanges.In the first half of this year, the operating profit of won-based exchanges reached KRW 259.8 billion (approximately $193 million), a 46% increase compared to the second half of last year, which recorded KRW 177.9 billion. In contrast, crypto exchanges recorded an operating loss of KRW 32.5 billion. Notably, out of 21 crypto-only exchanges, 10 of them reported no revenue at all from transaction fees, and 18 were in a state of complete capital impairment. Meanwhile, the operating profit of won-based exchanges was concentrated among the country’s top two exchanges, Upbit and Bithumb.But from a broader perspective, as of the end of June, this year’s total capitalization of the crypto market reached KRW 28.4 trillion — a 46% increase compared to the end of the second half of last year. Korean won deposits also increased by KRW 400 billion, or 11%, compared to the previous half. The overall operating profit was KRW 227.3 billion, up 82% from KRW 124.9 billion at the end of the second half of last year.“The first half of this year saw a rise in prices of virtual assets and investor sentiment, leading to an increase in Korean won deposits, overall market capitalization, and operating profits for exchanges, compared to the second half of 2022,” the FIU remarked.The number of new listings and delistings on virtual asset exchanges also surged with 169 new listings and 115 new delistings. These represented a more than double increase and a 47% increase, respectively, compared to the second half of last year. 66% of the delisted crypto assets were coins that had been exclusively listed on a given exchange.Despite the market’s recovery, trading volume and the number of users have slightly decreased. The daily average trading volume in the domestic crypto market for the first half of this year was KRW 2.9 trillion, down 1.3% compared to the second half of 2022. In addition, the number of registered accounts with VASPs also dropped by 19% to 9.5 million compared to the end of last year. This can be attributed to a growing number of dormant accounts and the removal of duplicate accounts.The quantity of verified users has also declined. The number of individuals and corporations that had completed the mandatory Know Your Customer (KYC) procedures needed to engage in trading decreased by 210,000 to 6.06 million (including duplicates) compared to the end of 2022. The majority of users, or those who own less than KRW 1 million in virtual assets, dropped by 7%.On the other hand, the amount of virtual assets leaving the country increased. In the first half of this year, a total of KRW 22.1 trillion was transferred to whitelisted overseas operators or individual wallet addresses, marking a KRW 500 billion increase compared to the second half of last year. This trend could be accredited to futures trading and arbitrage trading influenced by the so-called “kimchi premium” — a term used to describe the difference between trading prices of cryptocurrencies in Korea and in other foreign exchanges.Age demographicsOther findings showed that the age group that traded the most virtual assets is in their 30s, accounting for 30% of all users. Within this group, men make up 70%, with 1.27 million men recorded as engaging in crypto trading. Following closely with 1.2 million, men in their 40s were the second-largest demographic.

Japan’s Largest Airline Opens NFT MarketplaceAll Nippon Airways (ANA), Japan’s largest airline, has ventured into the world of Web3 by launching its own non-fungible token (NFT) marketplace through its subsidiary, ANA Neo.Photo by Marcus Ng on UnsplashANA GranWhale NFT marketplaceThe newly introduced platform, called the “ANA GranWhale NFT Marketplace,” will showcase an exclusive digital art collection crafted by renowned aerial photographer Luke Ozawa.The NFT marketplace commenced on Tuesday with the conversion of Ozawa’s first digital photograph into an NFT. One of these unique pieces will be auctioned alongside the positive film, which served as the source for the photo’s development. The starting price for this item is set at 100,000 yen, offering collectors the opportunity to acquire an NFT paired with a tangible artifact.Following this initial collection, ANA plans to release its second batch of NFTs on June 7. This collection will feature the NFT rendition of the first Boeing 787 operated by ANA, presented in the form of a 3D model airplane. The offerings include a total of 1,574 items, comprising two types of 787 models, with each item priced at 7,870 yen.ANA, a company with revenues of $12.2 billion in its previous fiscal year, aims to expand its NFT product line in the future. The airline envisions leveraging NFTs to enhance the customer experience and add value to its services.Airline industry NFT PotentialThe development of ANA Neo’s GranWhale initiative began in August of last year. The project focuses on creating a virtual travel platform that utilizes various technologies, including virtual reality (VR), to recreate destinations and cultures from around the world. These recreations take the form of metaverse parks, allowing users to explore and immerse themselves in virtual travel experiences.ANA Neo President Mitsuo Tomita emphasized the significance of this venture, stating that the ANA GranWhale logo symbolizes the fusion of the virtual and the real, signifying the airline’s journey into the future, where Web3 and metaverse travel will become increasingly prevalent. “Through this initiative, we aim to unlock the potential of NFTs in the aviation industry, bringing together the digital and physical realms to create unique and memorable experiences that unite the world in wonder,” Tomita stated.Club Toki NFTsANA is not the first Japanese airline to involve itself with the NFT space. Earlier this month, regional Japanese airline Toki Air announced the launch of Club Toki, a fan community centered around NFTs. The initiative claims that community members join by purchasing NFTs, and as NFT holders, they receive further club benefits. The NFTs can be purchased by credit card or payment in ETH, with the buyer needing a MetaMask wallet in order to receive the NFT.In March, Argentinian low-cost airline Flybondi integrated Web3 into its ticketing process by issuing tickets as NFTs in a partnership with NFT ticketing firm, TravelX. With this initiative, Flybondi became the first airline to offer flight tickets as NFTs.With its entry into the NFT marketplace, ANA joins the growing number of companies embracing Web3 technologies to offer unique digital assets and experiences. As the airline continues to develop its GranWhale platform, it seeks to cater to the evolving demands of the market and establish a presence at the intersection of aviation and the metaverse.