Tiger Brokers subsidiary awarded crypto license in Hong Kong

The European Council has banned all transactions within the European Union (EU) involving the Russian Ruble-backed stablecoin A7A5, according to a press release published Oct. 23. The prohibition targets the stablecoin itself, its developer, its Kyrgyzstan-based issuer, and the operator of a platform that facilitates major A7A5 trades. The package also takes aim at Russian crypto exchanges.Photo by Christian Lue on UnsplashAdditional banking restrictionsThis measure is part of a broader set of economic sanctions against sectors the EU stated assist the Russian invasion of Ukraine, including energy, finance, and defense industries. As part of this financial clampdown, the EU will also impose a ban on five additional Russian lenders starting Nov. 12. One of those lenders, Alfa-Bank, recently began offering Bitcoin buying and selling services, according to an X post by journalist Pete Rizzo. The European body said the new crypto measures address Russia’s increasing use of digital assets to circumvent existing sanctions. Russian banks were cut off from the SWIFT international payment system in early 2022, following the onset of the Russo-Ukrainian war. Reports of Russia using cryptocurrency to finance malign activities have surfaced previously. Earlier this month, Sławomir Cenckiewicz, the head of the Polish National Security Bureau (BBN), told the Financial Times that Russia has employed crypto to finance attacks on EU countries. Cenckiewicz said that a network of agents recruited by Russia’s GRU military intelligence agency and uncovered in Poland in 2023 had been substantially funded with cryptocurrency. Reflecting this concern, lawmakers in Poland’s lower house approved a bill in September to strengthen national crypto oversight, a move also expected to help curb Russian funding channels. Cenckiewicz noted that Polish intelligence agencies are closely monitoring the legislation to prevent loopholes that allow foreign actors to support agents using digital assets. Russia’s evolving crypto policyThe EU’s action comes as Russia itself is attempting to refine its own cryptocurrency rules. According to the Moscow Times, Russia's central bank wants to limit cryptocurrency use strictly to cross-border payments within an experimental legal regime (ELR). The institution continues to reject recognition of cryptocurrency as a legal means of payment and has advocated banning its use for domestic payments and retail investment, while permitting trading only for high-net-worth individuals through licensed platforms. Russia’s finance ministry has expressed a more flexible view, pointing to the scale of crypto adoption among the public. Earlier this year, the central bank estimated that domestic crypto transactions exceeded 1 trillion rubles (about $12.4 billion) per month, and that as of March, wallets linked to Russian users held roughly 827 billion rubles (about $10.2 billion). The finance ministry and the central bank have agreed to tighten supervision of the crypto market, with officials expecting to finalize the new framework before the end of the year. 

Four Pillars for Success in Korean Security Token MarketOn Wednesday, blockchain experts in various fields gathered at the 2023 Blockchain Meetup Conference held in Seoul to discuss issues with security tokens and their outlook.©Pexels/Alesia KozikWhat attracted security token businesses’ attention at the meeting was a presentation by Jung Eui-heon from Lambda256, a subsidiary of Korean crypto exchange Upbit’s operator Dunamu. He shared four pillars for success in the Korean security token market.Security tokens gaining traction in KoreaSecurity tokens have been a trending topic in the Korean blockchain industry since the Korean Financial Services Commission (FSC) allowed the issuance and trading of security tokens last February. Furthermore, a 2022 report jointly published by Boston Consulting Group and Singaporean investment platform ADDX predicted that the total size of illiquid tokenized assets worldwide would reach $16 trillion by 2030.Against this backdrop, here are the four keys to successful security token projects that Jung outlined.Technology adaptationFirst, he emphasized the importance of adopting rapidly changing technology. To tackle the issue, he suggested teaming up with advanced tech companies for long-term collaboration. When choosing tech partners, companies should ensure they are sustainable, possess technological prowess, hold credibility on high volume transactions, and maintain the security level of financial institutions, Jung advised.Forging partnershipsThe second point he mentioned was the need to forge partnerships. The FSC’s February guideline requires the issuance and distribution of security tokens to be managed separately. This means that security token projects require collaboration between issuers, distributors, account managers, asset holders, and tech companies.New securities productsJung also noted that discovering new securities products is crucial. Partnering with existing fractional investing companies may help accelerate the security token project initially, but in the long run, enterprises will eventually have to create products in various fields such as gaming, movies, and entertainment.Token liquidityLastly, Jung underlined the token liquidity, which plays a crucial role in determining its prices. Issuers will need to find various distributors and vice versa. Securing liquidity requires the establishment of a technical standard that improves interoperability and compatibility, he highlighted.

The Financial Services and the Treasury Bureau (FSTB), a policy bureau attached to the government of the special administrative region of Hong Kong, has released a new digital assets policy statement, incorporating its “LEAP” framework for the digital assets industry within the city. The document, outlining the government’s objectives and guiding principles relative to the digital assets sector, builds on its first policy statement for the industry which it published in October 2022.Photo by Harry Shum on PexelsA ‘LEAP’ towards an integrated digital assets ecosystemThe FSTB suggests that this new policy statement builds upon foundational initiatives pioneered through the initial policy statement, asserting that “Hong Kong is poised to 'LEAP' towards a trusted, sustainable, and deeply integrated [Digital Assets] ecosystem embedded within the real economy.” The government agency also suggested that this “Policy Statement 2.0” also builds on the “ASPIRe” digital asset regulatory roadmap introduced by the Securities and Futures Commission (SFC) in February, outlining the next phase of digital asset sector development in Hong Kong. Strengthening global hub statusThe government has set out to home in on strategic measures to bring about greater liquidity in digital asset markets and diversify digital asset product offerings, while strengthening the Chinese autonomous territory’s position as a global hub for the digital asset sector. “LEAP” is an acronym for the proposed initiatives that underpin the new framework, including: - Legal and regulatory streamlining- Expanding the suite of tokenized products- Advancing use cases and cross-sectoral collaboration- People and partnership development The framework focuses heavily on the tokenization of real-world assets (RWA), with particular emphasis on bond tokenization. In February 2023, Hong Kong pioneered the issuance of the world’s first-ever tokenized government green bond. Building on that, it now seeks to bring about the regularization of the issuance of tokenized government bonds. The Hong Kong government would also like to see tokenization efforts expanding into “a broader range of assets and financial instruments.” It cited sectors such as precious metals, non-ferrous metals and renewable energy as candidates for tokenization. Promoting tokenized ETFsThe authorities are also encouraging tokenized exchange-traded funds (ETFs), with plans to introduce a stamp duty waiver for these products as an incentive. Additionally, the Hong Kong government is interested in nurturing the development of secondary market trading of such tokenized ETF products, whether that’s through digital asset trading platforms or other channels. The framework considers the further development of stablecoins. The city’s new licensing regimen for stablecoin issuers commences on Aug. 1. The FSTB maintains that stablecoins have the potential “to transform payments, supply chain management, and capital market activities by offering a cost-effective and efficient alternative to traditional systems.” In order to capitalize on this potential, the Hong Kong government, together with the city’s regulators, intends to enable licensed stablecoin issuers in the city “to explore and implement different stablecoin use cases.” Cyberport, a Hong Kong business park and digital technology incubator that hosts in excess of 1,650 startups, will also extend its support through its incubation ecosystem to further the objectives set out in the Hong Kong government’s new digital assets policy statement.