Ripple scores DFSA license approval in Dubai

Regulatory crackdown as Hong Kong authorities act against crypto entitiesIn a recent move, the Securities and Futures Commission (SFC) of Hong Kong has issued a public warning against suspected virtual asset-related frauds involving HongKongDAO and BitCuped, marking a significant crackdown on deceptive practices in the crypto space.The action taken by the SFC in conjunction with the Hong Kong Police Force was outlined in a notice published on Wednesday. The notice stated:“The SFC suspects HongKongDAO may be disseminating false and misleading information about itself and its business through online channels.”In relation to BitCuped, it stated: “The SFC notes that BitCuped claims on its website that ‘Laura Cha’ and ‘Nicolas Aguzin’ serve as its Chairman and Chief Executive Officer respectively, when in fact none of them has any affiliations with BitCuped.”Photo by Teodor Kuduschiev on UnsplashHongKongDAO’s alleged misinformationOperating under the name “Hong Kong Digital Research Institute,” HongKongDAO has faced accusations of disseminating false and misleading information. The SFC expressed concerns about the claims made by HongKongDAO, including assertions of licensing by the SFC, engagement in regulated activities since July 2020, and bids for a “Hong Kong Digital Currency Exchange Licence” related to the government’s stablecoins framework.The SFC contends that these claims are unfounded and could potentially mislead the public into believing that HongKongDAO’s services are officially sanctioned and legitimate.HongKongDAO seems to manage at least two Telegram groups, one in Chinese with over 10,000 members and the other in English with over 1,700 members. Within these groups, there appears to be a promotion of the purported “market” price and future market value of the HKD token, enticing investors to make purchases.Allegations of BitCuped false affiliationsSimultaneously, BitCuped has been accused of making fraudulent claims to enhance the credibility of its operations. The company falsely asserted affiliations with prominent figures Laura Cha and Nicolas Aguzin, claiming them as its chairman and CEO, respectively. However, the SFC has refuted these affiliations. Laura Cha is the Chairman of Hong Kong Exchanges and Clearing Limited (HKEX), while Nicolas Aguzin is the Executive Director and CEO of HKEX.Taking proactive measures, the SFC has requested the Hong Kong Police Force to block access to the websites of both HongKongDAO and BitCuped. Cease and desist letters have also been issued to the operators of these websites, demanding the cessation of the sale of HKD Tokens offered by HongKongDAO.Series of crypto scamsFollowing the JPEX fraud allegations in September, Hong Kong faced another cryptocurrency exchange scandal involving Hounax in November. With at least 145 police reports filed and a sum of over HK$148 million ($19 million) involved, affected investors expressed frustration at what they deemed a slow response from regulatory bodies.These incidents have reignited discussions about the need for more robust cryptocurrency regulations in Hong Kong. The city’s aspiration to become a global hub for crypto innovation and adoption faces challenges due to a lack of clear and consistent regulation, leaving investors vulnerable to fraud and manipulation.In light of these developments, the SFC emphasized the importance of public caution regarding investment opportunities that seem too good to be true. The regulator urged vigilance against social media and instant messaging platforms where individuals, not investment professionals, might lure unsuspecting investors.

Thaksin Shinawatra, who served as Thailand's 23rd prime minister from 2001 to 2006 and whose daughter Paetongtarn Shinawatra currently serves as the Southeast Asian nation’s prime minister, expressed positive views on crypto while speaking at an event in Bangkok on Monday.Photo by Evan Krause on UnsplashIssuing stablecoins According to a report by Reuters, in his speech, Shinawatra called on Thailand’s Securities and Exchange Commission (SEC) to enable the trading of stablecoins and cryptocurrencies that are otherwise backed by real-world assets (RWAs). Addressing the consideration of systemic risk posed by cryptocurrencies, Shinawatra stated:"There will be no risk, it is just another currency in the world."  Shinawatra also commented on a government plan to make the Thai tourist resort city of Phuket a potential location for a pilot program which would trial crypto payments. Bullish on crypto This is not the first occasion in which the former Thai prime minister expressed a bullish view on crypto. He has been a long-standing advocate for cryptocurrencies. His comments earlier this week mirror similar views he expressed while speaking at an event at the Intercontinental Hotel in Hua Hin in December. On that occasion, he stated: “There are already many cryptocurrencies. Some people say that in the future, we will have more currencies than countries.”  In Hua Hin, he also suggested that his friends believe that Bitcoin could reach a unit price of $850,000. With that potential rise in value, Shinawatra wants Thai citizens to be well-positioned for the crypto wave. He encouraged the Thai government to engage positively with digital assets and to take the time to study the emerging asset class. Back in August, Thailand’s SEC launched the Digital Asset Regulatory Sandbox as part of an initiative to permit interested service providers to trial crypto-related services within a controlled sandbox environment.  Building on that sentiment expressed by Shinawatra in December, in his latest speech, he called on the country’s financial institutions to be more open to cryptocurrency.  Paying attention to U.S. policy on crypto In making that call, he cited developments in the United States. Particularly, he focused on the incoming U.S. administration’s positive embrace of digital assets. This includes positive commentary made by U.S. President-elect Donald Trump and the appointment of Paul Atkins by Trump as the new head of the Securities and Exchange Commission (SEC) in the U.S. Atkins has already outlined plans to collaborate with crypto-friendly SEC Commissioners Hester Peirce and Mark Uyeda, with a view towards shaping the agency’s crypto policies.  Beyond crypto, the former prime minister had a number of other suggestions that he feels would be good for Thailand. With regard to the country’s stock market, he called for tighter regulatory oversight, tax incentives for long-term investors and improved corporate governance. He encouraged the opening of a carbon credit trading venue in order to ensure better pricing. Shinawatra believes that Thailand should legalize online gambling on the basis that it is currently losing 100 billion Thai baht ($4 billion) in annual tax revenue from the activity. The Thai government has moved to approve a draft law that would legalize casinos and gambling.

HSBC and Ant Group advance blockchain-based tokenized deposit systemThe Hong Kong and Shanghai Banking Corporation (HSBC), the largest bank in Hong Kong, and Ant Group, China’s leading financial conglomerate, have successfully conducted tests in a sandbox environment facilitated by the Hong Kong Monetary Authority (HKMA) to explore the potential of tokenized deposits.Photo by Robert Bye on UnsplashIssue, transfer and redemption of tokenized depositsAccording to Cointelegraph, the primary objective of this collaborative effort was to assess a system for issuing, transferring and redeeming tokenized deposits. The trial aimed to gauge the capacity of tokenized deposits to provide for greater efficiency, allowing for real-time treasury fund transfers for corporate accounts within the HSBC network to transpire seamlessly at any hour, 24/7.HSBC expressed its excitement regarding the results, stating that it will open avenues for future research on how blockchain technology and tokenization can drive efficiencies and innovations in corporate treasury management.The test harnessed a blockchain platform developed by Ant Group, leveraging the support of Ant Group’s banking partners. These partners played a pivotal role in enhancing the efficiency of treasury fund transfers by reducing turnaround times, increasing cost efficiency and improving overall visibility.Vincent Lau, Global Head of Emerging Payments and Global Payments Solutions at HSBC, emphasized the bank’s keen interest in integrating tokenized deposits and other financial innovations into its future strategy. This approach is designed to streamline and optimize treasury management services for its clients.Crypto and blockchain project involvementHSBC has maintained a proactive stance in exploring the potential of blockchain technology. The bank has participated in numerous initiatives related to central bank digital currencies (CBDCs), notably Project mBridge, a multi-CBDC platform developed by SWIFT. This initiative supports real-time, peer-to-peer, cross-border payments and foreign exchange transactions using CBDCs.It emerged earlier this year that HSBC was collaborating with the HKMA on its e-HKD CBDC pilot program. Part of that project implicated the use of tokenization relative to real world assets (RWAs), an area that the real-time gross settlement platform Ripple was providing expertise on.In June, HSBC took a significant step by launching local cryptocurrency services in Hong Kong, which included support for trading Bitcoin and Ether exchange-traded funds (ETFs) listed on Hong Kong’s stock exchange. The supported products encompass the CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF and Samsung Bitcoin Futures Active ETF.In the same month, the HKMA encouraged HSBC alongside Standard Chartered to provide banking service support to fledgling crypto businesses in Hong Kong, having identified an issue with the extension of banking services to the sector within the Chinese autonomous territory. Meanwhile, Ant Group has been central to the progression of blockchain technology within China.HSBC’s expansion into crypto-related services aligns with the growing interest in digital assets, occurring in the aftermath of the launch of retail crypto trading in Hong Kong on June 1.