Animoca founder: $200T crypto market within 10 years

Gemini Targets UAE Crypto LicenseGemini, the US-headquartered cryptocurrency exchange owned by the Winklevoss twins, has announced its intention to obtain a cryptocurrency service license in the United Arab Emirates (UAE). The move comes as the exchange seeks to navigate the perceived “hostility and lack of clarity” surrounding cryptocurrency regulations in the United States.In a blog post published on Wednesday, Gemini highlighted the growing interest in cryptocurrencies among UAE citizens and referred to positive interactions with UAE regulators as driving factors behind its pursuit of the license. The co-CEOs of Gemini, Cameron and Tyler Winklevoss, explained in an interview with The National that their decision was influenced by the challenges they faced with crypto regulation in the US. Gemini CEO Tyler Winklevoss expressed optimism about the regulatory environment in the UAE, stating:“We’ve been super encouraged with our conversations here with the regulators. There’s an effort to make the UAE a home and a hub for crypto and, most importantly, to enact thoughtful regulation that connects, that protects both consumers, but also a company’s ability to innovate.”Photo by Nextvoyage on PexelsAbu Dhabi or Dubai — or bothAs of now, the Winklevoss twins have not yet determined the specific location for Gemini’s operations in the UAE. They hinted that the exchange’s headquarters could be established in both Abu Dhabi and Dubai, reflecting the potential for growth and development in both cities.Gemini’s decision to pursue a crypto license in the UAE underscores the country’s growing importance in the cryptocurrency industry. With its efforts to create a favorable regulatory environment and attract crypto-related businesses, the UAE aims to position itself as a crypto hub while safeguarding the interests of both consumers and innovators.Discouraging US outlookAccording to Gemini’s Global State of Crypto Report, which provides insights into cryptocurrency adoption and usage, more than 35% of respondents surveyed in the UAE reported purchasing crypto. In contrast, only 20% of respondents in the United States said they had bought cryptocurrencies.The report also revealed that nearly 32% of non-crypto owners in the UAE expressed their intention to enter the market within the next year. Furthermore, 33% of UAE crypto holders indicated that they plan to use their digital assets for in-person purchases at physical retailers, a significantly higher percentage compared to the global average of 19%.Although still a US-headquartered business, Gemini has been turned off the US market more recently. The Winklevii twins have taken a similar stance to Coinbase’s Brian Armstrong and Ripple’s Brad Garlinghouse. Coinbase has expanded in Singapore, acquired digital asset licensing in Bermuda, and has the intention of establishing a presence in Abu Dhabi.Garlinghouse has matched Armstrong’s outspokenness in criticizing the regulatory approach to digital assets in the United States. Likewise, he has acted to place Ripple on an international footing, establishing a presence in Dubai. In April, Gemini announced the opening of an engineering center in India, together with plans to expand its base in Singapore.As Gemini proceeds with its application for the UAE crypto license, industry observers will be closely monitoring the development, anticipating the potential impact of this expansion on the exchange’s operations and the broader cryptocurrency landscape in the region.

JD.com, one of China’s largest business-to-consumer (B2C) online retailers, is understood to have registered “JCOIN” and “JOYCOIN” ahead of Hong Kong’s Stablecoins Ordinance going live on Aug. 1. According to a report published by the Hong Kong Economic Times, in its trademark registration application, JD.com described the services associated with the two brand names as implicating the provision of electronic fund transfers and cryptocurrency-related financial transactions achieved via blockchain technology.Photo by tommao wang on UnsplashHKD-pegged stablecoinThe trademark registrations were filed by JD.com's subsidiary company, JD Coinlink Technology. The company was announced as a participant in the Hong Kong Monetary Authority’s (HKMA) stablecoin issuer sandbox last year. Around that timeframe, it also unveiled plans to launch a stablecoin pegged to the Hong Kong dollar (HKD).  That move was followed by British multinational bank Standard Chartered in February, with it announcing the launch of a HKD-pegged stablecoin in Hong Kong alongside local partners. Standard Chartered and its partners have also been participants in Hong Kong’s stablecoin issuer sandbox. Liu Peng, CEO of JD Coinlink Technology, provided an update in May, outlining that its stablecoin was entering phase two of sandbox testing. He stated that he hopes the project “contributes to payment efficiency not only within JD’s ecosystem but also for businesses and individuals worldwide.” On its website, JD Coinlink Technology describes its “JINGDONG Stablecoin” as a stablecoin backed 1:1 by the Hong Kong dollar, with the goal of meeting regulatory compliance and becoming “one of the leading digital currencies for businesses and individuals seeking for efficient, cost-effective, and secure payment solutions.” In a press briefing in Beijing in June, Peng outlined that the company was making preparations to apply for stablecoin issuer licensing in several markets. The JD Coinlink Technology CEO asserted that stablecoins “can reduce payment costs by 90% and complete transactions within 10 seconds.”  Ant Group, a subsidiary of another Chinese e-commerce giant, Alibaba, has also been following a similar track, preparing to apply for stablecoin licensing in both Hong Kong and Singapore. Push for yuan-pegged stablecoinsBoth Ant Group and JD.com have been lobbying the authorities in China for permission to issue a yuan-pegged stablecoin. Mainland China continues to impose a prohibition on crypto trading and mining, although more recently there have been signs that it may be considering accommodating stablecoins. Behind closed doors, it is understood that JD.com has urged officials at the People’s Bank of China to permit the issuance of offshore yuan-pegged stablecoins as a means to promote use of the yuan internationally and to enable more efficient cross-border trade. Hong Kong is perceived by many commentators as a testing ground for the digital assets sector in China. However, regulators in the Chinese autonomous territory have expressed caution around approving fiat-backed stablecoins tied to foreign currencies, noting that such issuances would require prior “discussions with the relevant authorities.” With Hong Kong’s Stablecoins Ordinance going live on Aug. 1, the HKMA published further guidelines for licensed stablecoin issuers on July 29. The regulator disclosed that it intends to publish a public registry of licensed stablecoin issuers for the benefit of the general public.

Binance’s U.S. legal woes may have repercussions for its expansion in ThailandWhile Binance, the world’s largest cryptocurrency exchange, is gearing up for a new trading venture in Thailand, the recent guilty plea by the firm in the United States and the hefty $4.3 billion penalties for anti-money laundering and sanctions violations have raised concerns about the feasibility of its Thai market venture.That’s a consideration that has been raised by a recent report by Bloomberg. Earlier this month, it emerged that Binance had entered the beta testing phase of its Binance.th platform in Thailand. The venture is a collaboration with the local company, Gulf Energy Development Pcl, led by billionaire Sarath Ratanavadi.Photo by Peter Borter on UnsplashCasting a shadow over expansion plansFollowing Founder Changpeng Zhao’s (CZ) departure from the CEO role in the wake of the US criminal probe resolution, Singaporean Richard Teng, a regulator-turned-crypto executive, has taken the helm at Binance. In its report, Bloomberg suggests that these recent issues in the U.S. have “cast a shadow over the planned domestic digital-asset platform” in Thailand.The new Binance CEO has emphasized Binance’s commitment to compliance overhaul and increased corporate transparency. In an interview Ratanavadi expressed confidence in Binance, noting that the company was not accused of crimes such as fraud or misuse of customer funds in the U.S. settlement. He stated:“Binance grew extremely fast and so probably crossed paths with some regulations.”Despite the regulatory storm, Ratanavadi chose Binance due to its market-leading position. The stringent scrutiny by Thailand’s Securities and Exchange Commission and the approval process, including inquiries about Binance, reflect the regulator’s cautious approach. The Gulf Binance Co. platform is set to launch fully in January, with Gulf Energy holding a 51% stake and Binance the remaining share.Challenges in other Asian marketsThe company may also face additional challenges in other Asian markets as a consequence of its regulatory troubles in the United States. While it remains to be seen if this was an unrelated development, it emerged earlier this week that regulators in the Philippines were moving to block access to the Binance platform and curtail the exchange’s ability to target Filipinos through advertising.In South Korea, Binance’s activities in the country have come under renewed scrutiny within the crypto community in the wake of the regulatory penalties Binance has experienced in the U.S. Binance is active in that market through its acquisition of fiat-to-crypto exchange GOPAX. While GOPAX management are unfazed by these events, others have suggested that there may be consequences in terms of the ability of GOPAX to achieve full regulatory approval.Demand reductionAnother challenge for the Thai venture includes a reduction in demand for crypto trading services in the Southeast Asian country. Official data reveals a significant drop in monthly trading volume at licensed digital-asset operators in Thailand, falling from over 250 billion baht in November 2021 to 17 billion baht ($490 million) in September 2023. The number of active trading accounts has plummeted by 87% from the peak in 2021.Ratanavadi, whose net worth is estimated at $11 billion, believes that tighter regulatory oversight will restore investor confidence. Gulf Binance’s technology partner, Advanced Info Service Pcl, with its retail outlets, is expected to contribute to the joint venture’s marketing efforts.