MANTRA sets sights on real-world asset tokenization in Middle East and Asia

Philippines Delays Crypto Framework PublicationThe Philippines’ financial regulator has decided to postpone the release of a legal framework for the crypto industry, originally scheduled for late 2022, despite a tumultuous year.That’s according to a report published by local news outlet, Philstar Global. In the face of numerous market failures in 2022, the Philippines’ financial regulator has opted for a cautious approach and delayed the publication of a legal framework for the crypto industry, which was initially expected to be released by the end of the same year. However, work on the guidelines is still ongoing, and there is a possibility that the results could be made public in 2023.Photo by Krisia on PexelsScrutinizing crypto failuresAccording to the chairman of the Philippines Securities and Exchange Commission (SEC), Emilio Aquino, the regulatory authority has adjusted its previous deadlines for introducing the crypto framework in the country. The SEC had originally planned to roll out the guidelines in 2022, but they held back in order to thoroughly study the reasons behind the collapse of the FTX exchange and ensure the protection of investors.Aquino stated that there is still a chance that the framework will be issued by the end of 2023, saying, “We haven’t closed the door. We really just have to make sure people don’t get burned.”Earlier this year, the SEC joined forces with the University of the Philippines Law Center (UPLC) to collaborate on the development of guidelines for digital assets. In January 2023, the regulator introduced the Implementing Rules and Regulations of Republic Act No. 11765 for public comment. This act, which was signed into law in 2022, however, does not explicitly mention “crypto” or “blockchain.”The crypto industry in the Philippines has been facing increasing pressure. The country’s central bank has been urging citizens to refrain from engaging in any transactions with unregistered or foreign crypto exchanges, and the SEC has echoed these recommendations.In May 2023, the SEC identified Gemini Derivatives as an unregistered security product under national law. In the investor advisory, the Commission wrote: “The public is advised not to invest or to stop investing in the investment scheme of Gemini Trust Company, LLC.”Last month the country hosted a meeting of the Regional Consultative Group for Asia of the Financial Stability Board. That meeting, held in the Philippines' oldest city, Cebu, highlighted the risks pertaining to crypto assets.Potential for positive approachNevertheless, the Philippines remains an attractive destination for crypto enthusiasts. With its rapidly growing economy, it has emerged as one of the world’s fastest-growing markets, with over 11.6 million Filipinos owning digital assets, placing it 10th worldwide in terms of crypto adoption.In an opinion piece published by Forkast News in April, Robert De Guzman, Head of Legal Compliance at Philippines-based cryptocurrency exchange Coins.ph, outlined his view that the country is forging a positive, workable framework for crypto assets. With that, it sounds like while the delay is unwelcome, the more important factor is that the South East Asian country devises a framework that is fit for purpose relative to the innovation at hand.

Upbit Singapore Gains In-Principle Approval for Major Payment Institution LicenseCryptocurrency exchange Upbit Singapore announced in a press release via PR Newswire that it has secured an in-principle approval (IPA) for a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). The IPA enables Upbit Singapore to continue providing regulated Digital Payment Token services in compliance with the Payment Services Act 2019 as it progresses on the path toward obtaining a full license.Photo by Paul MARSAN on UnsplashUpbit’s presence in AsiaIt’s worth noting that Upbit Singapore is part of Upbit APAC, a larger entity that operates exchanges bearing the same name in Thailand and Indonesia. Both Upbit Thailand and Upbit Indonesia are also regulated by their respective local authorities: Thailand’s Securities and Exchange Commission of Thailand and Indonesia’s Commodity Futures Trading Regulatory Agency (BAPPEBTI).Upbit APAC holds a technological partnership with Dunamu, the operator behind South Korea’s largest cryptocurrency exchange, Upbit.Crypto firms flocking to SingaporeThis development places Upbit Singapore among the ranks of other cryptocurrency exchanges in the city-state. Earlier this month, GSR Markets, the Singaporean arm of global crypto trading firm GSR, also achieved IPA status in its journey towards obtaining a full license. Other notable names in the industry, such as crypto exchange Coinbase and crypto payment firm Ripple, have already attained full licenses. The transition from an IPA to a full license took approximately a year for Coinbase and about four months for Ripple.Meanwhile, the Upbit enterprise has been making various efforts to solidify its presence in the crypto industry. One of its key initiatives is focused on enhancing user protection. For instance, as the leading cryptocurrency trading platform in South Korea, Upbit recently launched a campaign aimed at assisting crypto investors in recovering mistakenly transferred assets.However, there have been concerns regarding Upbit’s relationship with Kbank, the internet-only bank that provides real-name bank accounts to the Korean exchange. In Korea, cryptocurrency exchanges that facilitate the trading of Korean won are legally obligated to secure such bank accounts as part of anti-money laundering measures. Referring to a document provided by the Financial Services Commission (FSC), Lawmaker Kim Hee-gon highlighted that Upbit customers make up 18% of the bank’s total customer deposits. This percentage is significantly higher than what other banks that offer accounts to exchanges typically experience. Lawmaker Kim has criticized the bank’s relatively extensive exposure to the cryptocurrency exchange, underscoring the importance of elevating the level of Upbit’s reserve funds held at Kbank to prepare for unforeseen losses.

Coinone to Launch New Ethereum Reward ServiceSouth Korean crypto exchange Coinone is set to launch a new product named “Ethereum (ETH) Daily” on Coinone Plus, a service that allows users to receive rewards by delegating their virtual asset holdings to the blockchain network.Photo by Shubham Dhage on UnsplashBenefits of Coinone PlusCoinone Plus is divided into three products — Staking, Daily, and ETH 2.0 Staking. Of these, the Daily product distributes daily rewards to individual users who hold a certain cryptocurrency and agree to participate in the service. Unlike the two staking products, it is characterized by the freedom to trade assets and deposit or withdraw them without any of the restrictions imposed by a given network.The upcoming ETH Daily, which will launch on October 4, rewards Coinone users who hold Ethereum and have completed identity verification. Upon agreeing to the relevant service terms and conditions, users will become eligible for snapshots starting the next day, and rewards will be distributed every day starting from the second day. Existing Daily service participants who hold Ethereum will automatically be counted as participants without any additional steps required.Unlocking differentiated investment opportunities“By utilizing Ethereum, which is one of the most popular cryptocurrencies alongside Bitcoin, we decided to launch the ETH Daily product as a means to provide more diverse investment experiences,” explained Coinone CEO Cha Myeong-hoon. “Just by simply holding Ethereum, users can accumulate daily rewards and take part in investments that allow participation in the blockchain ecosystem. We hope our users will take advantage of this opportunity.”