Hong Kong regulator set to grant additional crypto exchange licenses

In a recent survey conducted by personal finance management solutions provider Seedly, together with global crypto exchange Coinbase, it was discovered that over 56% of Singaporeans currently own cryptocurrency, with nearly half expressing bullish sentiments regarding its future prospects over the 12 months of this year.Photo by Zhu Hongzhi on UnsplashFuture of financeTitled "The Pulse of Crypto Singapore Report," the study surveyed 2,006 Singaporean adults across various age groups and household incomes from October to November 2023. Survey participants were deemed to be “finance forward Singapore-based adults who have a strong interest in personal finance and investments.” It determined that 56% of respondents believe cryptocurrency represents the future of finance. Participants cited short-term profitability, long-term capital appreciation and portfolio diversification as key factors driving their optimism. The report’s authors speculate that this optimism is also due to the city-state’s approach to digital assets and the regulatory framework that has been put in place by the Monetary Authority of Singapore (MAS). Yeap Ming Feng, head of marketing at Seedly, also attributed the optimism towards crypto to Singapore's vibrant Web3 ecosystem, which fosters collaboration among builders, investors and users. When selecting a crypto exchange for trading, crypto owners prioritize security, low fees, regulation and ease of use. Coinbase, one of the report’s facilitators, doubled down on its operations in Singapore in 2023, acquiring a Major Payment Institution (MPI) license from the Singaporean regulator, enabling it to expand its product offering. It extended its offering further last month when it launched USD transfers via SWIFT. Notably, the survey identified staking as the most prevalent use case for cryptocurrency in the city-state.  Non-crypto user concernsHowever, the study unveiled that non-crypto users harbor concerns about market volatility (57%), high risk (53%) and the absence of regulation (45%) in the crypto space. Singapore was disproportionately affected by the demise of a number of crypto platforms in 2022. An outsize number of citizens were caught up in the FTX collapse having utilized that crypto exchange instead of Binance, which had been prohibited from trading within the territory. Singapore was also home to failed crypto lenders such as Vauld and Hodlnaut, failed crypto hedge fund Three Arrows Capital (3AC) and UST stablecoin developer Terraform Labs. These high-profile crypto failures so close to home are unlikely to have put crypto skeptics at ease in Singapore where the consideration of risk relative to digital assets is concerned. That said, MAS is actively working towards implementing additional rules to safeguard Singaporean investors. Despite these reservations, the survey underscores a growing interest in and adoption of cryptocurrencies among the financially aware population in Singapore. This trend aligns with Singapore's commitment to remaining a leader in Asia for crypto readiness and supports the city-state's vision of becoming a global digital asset hub. The study also highlighted the progress that the crypto market in general made recently. Over the course of 2023, crypto market capitalization has gained momentum, from $829 billion at the outset of the year, culminating at $1.72 trillion towards the end of the year, according to a report by CoinGekco.

Taiwan’s FSC to Release Cryptocurrency Guidelines for Banks in SeptemberHuang Tien-Mu, Chairman of the Taiwanese Financial Supervisory Commission (FSC), said at the Legislative Yuan that regulatory guidelines for banks concerning cryptocurrencies will be available in September, as reported by local blockchain media Blocktempo.© Pexels/ Timo VolzHuang’s remarks were in response to questions from Legislator Lee Guei-min about crypto-related issues.Legislator’s three concernsLee raised three concerns: the accessibility of DBS Digital Exchange, currently operating in Singapore, for Taiwanese users; whether traditional banks should be permitted to provide crypto trading platforms; and investor protection against exchange collapses like the one experienced by FTX.FSC Chairman’s answersHuang stated that the FSC has not received any requests related to DBS Digital Exchange. He mentioned the commission’s concerns about the intrinsic value of cryptocurrencies and their ongoing work on regulatory guidelines, set for release in September. Huang also highlighted the importance of financial authorities overseeing crypto trading platforms, citing FTX Japan as an example, where users are protected under Japanese regulations.To safeguard investors from potential collapses, Huang suggested separating assets between hot and cold wallets. Furthermore, he noted that the FSC is not considering allowing the 27 crypto trading platforms registered with the commission to be listed on Taiwanese stock exchanges.

Uzbekistan’s New Private Bank Joins National Crypto Card InitiativeIn a step towards enhancing its cryptocurrency ecosystem, the Republic of Uzbekistan has given the green light to include another private bank in its ongoing national crypto card project. The development was announced through an official press release earlier this week by the National Agency of Perspective Projects (NAPP), the country’s regulatory authority for digital assets.Photo by engin akyurt on UnsplashBuilding upon a crypto frameworkUnder the provisions outlined by the Uzbekistan Ministry of Justice on December 30 of last year, the Special Regulatory Sandbox Regime was established. This unique framework empowers specific entities within Uzbekistan’s crypto sphere to provide specialized services. JSV Ravnaq Bank has now been registered as a member of this regime, enabling its active participation in the pilot phase of the nation’s crypto card project.Virtual bank cardThis initiative is poised to introduce a virtual bank card named “CRYPTO CARD — UzNEX.” The card’s standout feature is its ability to facilitate automatic fund addition to users’ primary accounts. This is achieved by swiftly converting crypto assets from a digital wallet on a partner crypto exchange platform.A vital aspect of the crypto card’s development lies in its compatibility testing with various financial systems, including the widely used Mastercard payment platform. According to NAPP’s statement, the participant bank within the special regulatory regime will be rigorously testing the integration of the automated banking system, crypto-exchange information system, bank processing center, and the MasterCard international payment system.December launchNotably, the addition of Ravnaq Bank marks the second entrant into the project, with Kapital Bank being the first participant approved in May. While Kapital Bank’s testing phase commenced at the end of June 2023, Ravnaq Bank is set to initiate its test launch by the end of October 2023. Both banks are expected to launch the full project by late December, in accordance with NAPP’s timeline.Beyond these private banks, the Special Regulatory Sandbox Regime also includes UZINFOCOM, a company authorized to develop NFT certificates based on distributed data registry technology.