Gemini receives in-principle MPI license approval in Singapore

Philippines Regulator Collaborates with US Counterpart to Tackle Crypto FraudThe Philippines Securities and Exchange Commission (SEC) has taken a step towards addressing the escalating issue of crypto scams, seeking assistance from its namesake and international counterpart, the US SEC.The international partnership was announced via a Philippines SEC press release, published last Friday. The collaboration highlights the severity of a growing problem in terms of crypto-related fraud, underscoring the importance of inter-agency cooperation in tackling the issue.Photo by Krisia on PexelsJoint training effortsBoth SECs will engage in joint training sessions. The collaboration also involves cooperation with the Asian Development Bank (ADB), and it has been established under the umbrella of the International Organization of Securities Commissions (IOSCO). Notably, the Philippines SEC has also signed IOSCO’s Multilateral Memorandum of Understanding (MoU) aimed at addressing crypto scams.The motivation behind these collaborative efforts is readily apparent given the scale of the cryptocurrency fraud that has occurred recently in the Philippines. Recent instances have captured the attention of the authorities, emphasizing the urgent need for regulatory action.Drawing on overseas enforcement experienceMost in the crypto sector are not enamored with US SEC Chair Gary Gensler’s stance relative to digital assets. Notwithstanding that, it may be that his assertive approach to enforcement may have a place in the Philippine context, given the extent of the issue of crypto fraud in the Southeast Asian country. For example, Gensler’s call for “more cops on the beat” to police the crypto industry, expressed in a Bloomberg Daybreak Podcast interview in July, resonates with the Philippines’ current predicament.Though Gensler’s remarks have been met with resistance from some quarters within the crypto industry, they may serve as sage advice in a climate where crypto-related crimes proliferate.Philippines SEC Chair Emilio Aquino outlined that the collaborative workshop involving the two securities commissions was aimed towards strengthening the capability of the Philippines’ SEC enforcement personnel in conducting investigations on securities-related crimes like insider trading, market manipulation, off-market fraud, and crypto scams.Aquino stated: “Scammers are becoming more advanced and sophisticated in their techniques as new technologies arise. As such, the SEC must constantly improve its investigation and enforcement capabilities to ensure that we are always one step ahead in preventing scams.”The Philippines, in particular, could benefit from a more robust regulatory presence to combat human trafficking networks and quash scams that tarnish the reputation of the crypto sector. These criminal activities have unfortunately led many to associate cryptocurrencies with fraud.The Philippines SEC Chair added that collaboration with US regulators and other enforcement agencies would likely guide the country in its pursuit of initiatives that lead towards the protection of the investing public.While expert training is essential, bolstering regulatory oversight, as suggested by Gensler, may be the key to mitigating the pervasive problem of crypto-related crime and protecting the integrity of the cryptocurrency sector.

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.

PantherTrade applies for Hong Kong trading licensePantherTrade (Hong Kong) Limited, a subsidiary of Futu Holdings, had been reported last month as being in the process of preparing a licensing application to trade in Hong Kong. According to recent reports in local media, it appears that the company has now submitted such an application to the Hong Kong authorities.Photo by Simon Zhu on UnsplashKey appointmentsThis move aligns with the broader trend, as a total of six companies have submitted applications to the Securities and Futures Commission (SFC) of Hong Kong. It’s understood that PantherTrade submitted its application on Nov. 15. The move follows a similar application made by Hong Kong-based Meex Holdings on Oct. 12.Key strategic appointments within PantherTrade underscore the company’s vision for its virtual asset trading venture. Chen Zhihu, former Investment Director at Huobi Asset Management (Hong Kong), has joined as a director. The corporate establishment of PantherTrade in March also saw the addition of Hong Yimin, while the initial director, Fang Xingzhi, has a background with Jingdong Securities Co., Ltd.Interest from mainland ChinaRegulatory attention has intensified on PantherTrade and another applicant, Yax, affiliated with Tiger Brokers employees, according to reports from Nikkei Asia. Yax is another platform with mainland China ties, which was reported in October as intending to apply for a license to trade within Hong Kong.It’s understood that the local entity of Chinese enterprise blockchain firm OK Group, OKX Hong Kong FinTech Company Limited, submitted its own trading license application on Nov. 16.Licensing uptakeHong Kong’s regulatory environment has undergone a significant shift, with the city granting the first licenses to cryptocurrency companies under a new framework in August of the current year. The regulatory changes, effective in 2023, allow retail investors to trade crypto on exchanges licensed by the SFC. Importantly, the city has removed the restriction on crypto trading, no longer confining it to professionals with a minimum of $1 million in bankable assets.This regulatory evolution is part of Hong Kong’s broader strategy to position itself as an international hub for cryptocurrencies. The city aims to attract fresh capital and talent, especially in the aftermath of the pandemic. The licensing race among virtual asset trading platforms signifies a pivotal phase in Hong Kong’s vision to lead the digital asset industry in Asia.There had been some short-lived concern that momentum was moving against Hong Kong’s efforts to further the Web3 sector when it emerged recently that crypto derivatives platform Bitget was exiting the Hong Kong market and abandoning efforts to secure a trading license. That concern dissipated when Bitget’s motivations became clearer, following BGX, a related Bitget entity, making an investment into BC Technology Group, the owner of the already Hong Kong-licensed OSL exchange.PantherTrade’s application for a virtual asset exchange license in Hong Kong adds momentum to the city’s evolving crypto landscape. The strategic hires and the broader industry trend highlight the growing significance of Hong Kong in the global digital asset arena. As the regulatory framework becomes more conducive, the city aims to foster innovation and become a key player in the international crypto space.