Bithumb lowers fees and enhances UX to bolster competitiveness

The Inland Revenue Board (IRB) of Malaysia has launched an operation, which has been dubbed as “Ops Token,” to tackle tax evasion within crypto trading circles in the southeast Asian nation. Klang Valley raids According to the Malaysian English language newspaper, The Star, the special operation is a coordinated effort involving the Royal Malaysia Police and CyberSecurity Malaysia (CSM) alongside the IRB. The Malaysian tax authority raided ten locations, with 38 personnel involved in the raids, which were carried out within the Klang Valley region. The main objective of the raids and the operation overall, is to identify crypto corporate entities and individuals that had failed to report trading activities and therefore, associated revenues, profits and taxes. The initiative aligns with the Malaysian government’s broader strategy of stamping out tax evasion across all sectors, reducing revenue leakage and optimizing the nation’s tax take.Photo by Esmonde Yong on UnsplashStern warning for traders Datuk Abu Tariq Jamaluddin, CEO of the IRB, issued a stern warning to crypto traders: declare and pay taxes or face compliance actions. Jamaluddin clarified that crypto traders are subject to the same income tax rules that are applied to businesses across various sectors throughout Malaysia. While cryptocurrency is not regarded as legal tender by Malaysia’s central bank, crypto-centric businesses must adhere to the nation's income tax regulations. The IRB commented on the operation via a statement published on June 15. It stated: "Through this operation, it was possible to find stored cryptocurrency trading data in mobile devices and computers. We have successfully identified the digital assets that are traded, which has caused significant tax revenue leakage." The agency intends to carry out further analysis on the data that it seized in a bid to ascertain the trading revenues generated, the profits derived from that trading activity and the taxes owed as a consequence. The IRB has asserted that a number of corporate entities and partnerships were specifically formed with the purpose of tax evasion. The agency estimates the total value of crypto-related transactions to date in 2024 to amount to 1.441 trillion Malaysian ringgits, approximately $310 billion. International enforcement efforts Malaysia is not alone in its efforts to ensure tax compliance relative to cryptocurrency trading and investing. The Organization for Economic Cooperation and Development (OECD) has established a set of crypto tax rules, namely the Crypto-Asset Reporting Framework (CARF). The initiative is part of an effort to achieve a Common Reporting Standard (CRS) relative to crypto on an international basis, with OECD member states transposing the CARF into domestic law. The CARF is due to go live in 2027. The International Monetary Fund (IMF) maintains that crypto presents itself as a major headache for tax authorities globally. In a research paper published last year, it outlined that countries would need to update their tax systems in order to deal with the challenge that crypto presents with the potential for a leakage in tax revenues. In the United States, an Internal Revenue Service (IRS) official stated in December 2023 that the agency has seen an increase in its caseload relative to crypto tax cases.

American digital asset prime brokerage FalconX has unveiled its strategic expansion into Hong Kong, doubling down on its growth within the Asia-Pacific (APAC) region.Photo by Chapman Chow on UnsplashOTC brokerage servicesThe move, announced by the company through the release of a statement on Thursday, represents the firm’s latest stride in pursuing a global expansion strategy. In February 2023 the company announced that it was establishing its APAC headquarters in Singapore. FalconX intends to provide tailored over-the-counter (OTC) brokerage and OTC virtual asset derivatives services to professional investors in Hong Kong, including proprietary trading firms, family offices and fund managers. Leading the charge in this expansion is Belle Leung, who assumes the role of commercial lead in Hong Kong. Leung brings a wealth of experience from her previous position as head of SaaS sales for digital assets at OSL in Hong Kong. Her primary focus will be on raising awareness of FalconX’s offerings within Hong Kong's rapidly expanding institutional Web3 community.Leung expressed enthusiasm for Hong Kong's proactive regulatory approach, noting the strong market certainty it has generated. She emphasized FalconX's support for and alignment with the regulatory landscape. This expansion aligns with ongoing efforts by Hong Kong regulators to shape a conducive environment for virtual assets and related products, thereby providing market certainty and fostering innovation. The recent guidelines set by Hong Kong's regulators aim to align the region’s regulatory framework with international best practices, positioning it as a leading global center for digital asset innovation and investment. Executing an expansion strategyThe company is likely to have been planning its Hong Kong expansion for some time. Earlier this month, FalconX confirmed that it would be expanding its APAC operations. In November, the company was actively recruiting to fill Hong Kong-based positions. That same month, FalconX announced a partnership with Bullish, a digital assets exchange with 110 employees in Hong Kong. As part of that integration, the prime broker gained access to further digital asset liquidity on the Bullish platform.In its home market in the United States, the company has also been furthering its market influence. With spot bitcoin exchange-traded funds (ETFs) having been approved in the U.S. in January, FalconX executed over 30% of all bitcoin creation transactions for ETF issuers on the first day of trading. Matt Long, FalconX's APAC general manager, underscored the pivotal role of Hong Kong in the virtual asset innovation landscape, noting its historical significance as a hub for such innovation. He emphasized the region's leadership in the market with a clear focus on Web3 technologies. Long expressed FalconX's commitment to global growth and confidence in Hong Kong's progressive stance on virtual asset regulation and its leading position in the Web3 ecosystem. FalconX's expansion into Hong Kong follows its recent strategic moves in the Asia Pacific region, including the appointment of Ivan Lim as Trading Manager, APAC derivatives, based in the firm’s Singapore office. These developments underscore FalconX's intention to expand its footprint in the region and cater to the evolving needs of institutional investors in the digital asset space.

Singapore-based cryptocurrency trading platform BingX has secured a sponsorship deal as the new sleeve sponsor for Premier League football club Chelsea.Photo by Chaos Soccer Gear on UnsplashJanuary 9 debutThe arrangement, spanning the next six months, is expected to debut during Chelsea’s Carabao Cup semi-final first-leg match against Middlesbrough on Jan. 9. As part of this sponsorship, BingX will prominently feature on the front of Chelsea’s training kits for the upcoming 2024/25 season. Meanwhile, the current shirt sponsor, Infinite Athlete, will transition to a training sleeve sponsorship starting next season. While details about the fate of Chelsea’s training kit deal with Trivago, an online hotel booking site, remain uncertain, the club is navigating sponsorship changes in the wake of owner Roman Abramovich’s prior ownership and UK government sanctions. Corporate rebrandEstablished in 2018, BingX operates as a cryptocurrency exchange headquartered in Singapore, catering to a user base of over 10 million in Southeast Asia and North America. In November, the company announced that it was rebranding the business. Part of that process was understood to involve an overhaul of BingX’s visual identity, with the introduction of a streamlined logo. Sponsorship within the English Premier League is a high profile marketing move that will undoubtedly bring more visibility to that brand. Crypto marketing spend reboundThe marketing spend of crypto firms relative to high profile sponsorship deals has recovered significantly in recent months. Such sponsorship deals peaked at the top of the crypto market in 2021. That period saw profligate spending by many of the large crypto platforms. A standout example was provided by the $135 million sponsorship deal signed by fraudulently run crypto exchange FTX for the Miami Heat stadium naming rights in the United States. While that opulent sponsorship spending subsided during the bear market, it appears that there has been a modest resurgence as market conditions have improved. Seychelles-based crypto platform OKX has ongoing marketing relationships with the McLaren Formula One racing team and Manchester City Football Club. In March, U.S.-based crypto exchange Kraken announced a marketing partnership with the Williams Formula One racing team. Earlier this week it emerged that crypto gambling platform Stake.com had signed a sponsorship deal with the Sauber Formula One team. 18 of the 20 English Premier League clubs are now understood to have agreed sponsorship deals at one time or another with crypto companies. This demonstrates the growing trend of cryptocurrency platforms associating with high-profile sports partnerships, enhancing their visibility and influence in the market. Chelsea is actively seeking a front-of-shirt sponsorship deal, considering potential collaborations, including discussions with Saudi national carrier Riyadh Air. It’s understood that the BingX deal has been agreed for in excess of £10 million ($12.7 million) per season.