Qatar’s QFC launches digital assets framework

Thai SEC Implements Measures to Protect Crypto InvestorsIn response to the crypto lending crisis that unfolded in 2022, prompting companies like BlockFi and Celsius to declare bankruptcy, Thailand’s Securities and Exchange Commission (SEC) has introduced new regulations aimed at safeguarding investors in the digital assets space.Photo by Jakob Owens on UnsplashDisclosing risk warningsThe guidelines, issued on Monday, require digital asset service providers to provide comprehensive warnings that emphasize the risks associated with cryptocurrency trading. All platforms must prominently display a message stating: “Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly, because you may lose the entire investment amount.” Prior to utilizing the service, users must consent to and acknowledge the risks.Crypto lending prohibitionIn addition to the risk disclaimer, the new guidelines explicitly forbid service providers from using customer funds for lending or investment purposes. This ban on crypto lending services prevents platforms from offering any returns on deposited crypto to customers. By implementing these measures, the Thai SEC aims to enhance investor protection and shield investors from the risks posed by lending services. The regulations are scheduled to take effect at the end of the month.Today’s guidelines are the product of months of deliberation. Discussions surrounding investor protection regulations commenced on September 1, 2022, when the SEC acknowledged the necessity for security warnings by cryptocurrency businesses to disclose the risks associated with trading digital assets. The prohibition on digital asset operators offering deposit-taking and lending services was deliberated during meetings held on December 1, 2022, and May 11, 2023.Response to crypto platform failuresThe introduction of these investor protection rules follows a significant crisis in the crypto lending sector that unfolded during the bear market of 2022. Several crypto lending firms, which had collected billions of dollars in customer deposits by promising substantial returns, collapsed during this period. Prominent lending companies such as Celsius and BlockFi filed for bankruptcy, resulting in investors’ funds being trapped in lengthy bankruptcy proceedings.The Thai SEC’s proactive approach in implementing these regulations reflects the growing concern for investor welfare within the cryptocurrency industry. By requiring clearer risk disclosures and prohibiting the use of customer assets for lending and investment, the SEC aims to instill greater confidence and transparency in the digital asset service sector.Crypto academyThailand’s SEC has run other initiatives in efforts to better protect investors. In January the Commission launched the SEC Crypto Academy, an e-learning course. The objective of that initiative was to provide investors with a basic understanding of the digital assets space prior to investing. At the time of the launch of the course, the SEC said that “the more you know your investments, the less risk you will have.”These latest regulations not only serve as a protective measure for Thai investors but also set an example for other jurisdictions to evaluate and enhance their own regulatory frameworks. As the crypto industry continues to evolve, prioritizing investor protection becomes crucial in fostering a more sustainable and responsible ecosystem.

UK Watchdog Adds Crypto Exchanges to Warning ListThe UK’s Financial Conduct Authority (FCA) has expanded its warning list to include nearly 150 digital asset companies, including crypto exchanges HTX and KuCoin.Photo by Maxim Hopman on UnsplashPromotion without approvalThese firms have been added to the list due to their promotion of services in the UK without obtaining the necessary regulatory approvals. The move comes as the FCA strengthens its oversight of the cryptocurrency sector.The FCA recently broadened its rules on financial promotions, effective from October 8, to encompass crypto-asset service providers, regardless of their geographical location. This means that all crypto platforms are now obligated to display clear risk warnings to UK-based consumers and adhere to more rigorous technical standards. Additionally, they must implement a mandatory 24-hour cooling-off period for new customers.Exchanges respondIn response to the inclusion of their platforms on the FCA’s warning list, both HTX and KuCoin issued statements. A spokesperson for HTX, known until recently as Huobi, clarified that the firm does not operate or market its services in the UK. KuCoin, on the other hand, acknowledged that it doesn’t operate in the UK but expressed its commitment to adapt its products and services to ensure compliance with the relevant laws and regulations in each country.Another exchange, OKX, alongside global exchange Binance, have both indicated that they are working towards complying with the FCA’s regulatory requirements in respect of marketing.The FCA issued a generic warning message for both HTX and KuCoin, stating:“This firm may be promoting financial services or products without our permission. You should avoid dealing with this firm.”Non-compliance with the FCA’s regulations can result in severe penalties, including takedown requests for websites and apps, substantial fines, and potential legal action, which could lead to imprisonment.It’s worth noting that HTX Advisor, Justin Sun, has encountered regulatory challenges in the past. In March, the US Securities and Exchange Commission (SEC) accused Sun of fraud and market manipulation related to TRX, the native cryptocurrency of his Tron blockchain. Despite holding licenses to operate in various jurisdictions, HTX’s website does not specifically mention the UK as a prohibited venue.KuCoin has its platform restricted in several countries, including the US, Singapore, Hong Kong, mainland China, Thailand, Malaysia, and Canada’s Ontario province. Notably, the UK is not listed among these restricted locations.The FCA’s decision to rapidly identify and publicize crypto firms violating the expanded rules underscores increasingly stringent regulatory requirements. The regulator is continuously updating its list of violators as new infractions are uncovered. In August, the UK regulator published data that demonstrated that only 13% of crypto businesses who have applied to trade in the UK have been offered permits to do so.Lucy Castledine, the FCA’s Director of Consumer Investments, emphasized the dynamic nature of the list, which is constantly evolving to keep pace with emerging issues within the crypto sector.As the FCA takes a more proactive stance in overseeing crypto businesses, the warning list serves as a tool for consumer protection, signaling the importance of adherence to regulatory standards in the cryptocurrency ecosystem.

Hanyang University, one of South Korea’s most prestigious educational institutions, has embarked on launching a new major dedicated to Bitcoin and cryptocurrencies, named "Bitcoin Philosophy" at its graduate school. Yoon Seong-ho, the vice dean of the College of Humanities, will spearhead organizing the new major and overseeing its courses, according to local media ETNews.  The Bitcoin Philosophy major merges two different academic fields – philosophy and emerging blockchain studies. This unprecedented combination has drawn the attention of many local crypto investors and industry insiders. Typically, crypto or blockchain experts in Korea have educational backgrounds in computer science, software engineering, information security studies or cryptology. Photo by Karolina Grabowska on PexelsHumanistic approach to cryptocurrency The school stated that the planned major will be taking a humanistic approach to Bitcoin and cryptocurrencies, focusing less on their technological aspects. The specifics of the courses, however, are yet to be disclosed.  Hanyang University is no stranger when it comes to blockchain and cryptocurrencies. The institution has already established the Department of Blockchain Computing and Cryptoeconomics back in 2018, which started enrolling students the following year. Currently, around 20 experts from across various fields including engineering, business management, law and medicine, serve as faculty members.  Furthermore, the school is considering a proposal to establish a "Bitcoin Philosophy Research Center" on campus and dedicated courses for the Advanced Management Program (AMP). If approved, admissions for the new crypto major could open as early as next year.