Pakistan moves towards legalizing & regulating crypto

Cango, Inc., a Shanghai-headquartered Bitcoin mining business which is publicly listed on the New York Stock Exchange (NYSE: CANG), provided a mining operations update on Aug. 5, disclosing a significant increase in its crypto production.Photo by Dmytro Demidko on Unsplash45% increase in outputThe update outlined that in June, the firm mined 450 BTC, while holding 3,879.2 BTC, with a deployed hashrate of 32 EH/s. The figures for July show a considerable uptick, with 650.5 BTC having been mined. That Bitcoin was retained, bringing the firm’s overall Bitcoin treasury holding to 4,529.7 BTC, with a deployed hashrate of 50 EH/s. Cango CEO Paul Yu outlined that the firm had added 18 EH/s in hashpower towards the end of June. This additional capacity accounted for the increased output experienced for the month of July, representing a 45% increase month-on-month. Yu stated: “This strong performance not only demonstrates our commitment to execution but also fuels our ambition to accelerate future production.” The Cango CEO added that a new and experienced management team is now in place, and with that, Cango is focusing on working towards transitioning to “a more diversified and resilient portfolio of mining sites and energy infrastructure." Cango isn’t the only company in the Bitcoin mining sector to up its production. Cipher Mining, an American miner with facilities in Texas, also published an update, indicating that it produced 214 BTC in July with a hashrate of around 20.4 EH/s, up 21.43% month-on-month. Cipher outlined that Black Pearl Phase I, the initial 150 MW tranche of its Black Pearl facility, came on stream last month, accounting for the increased output. Unlike Cango, Cipher sold 52 BTC as part of what it described as “its regular treasury management process.” In this respect, Cango bucked a trend in comparison with its industry peers. CryptoQuant reported that miners became significant sellers of Bitcoin in July, depositing 16,000 BTC to exchanges as of July 18.Ranked by BitcoinTreasuries.net in order of Bitcoin held, Cango now holds 18th place among corporations holding BTC.Originally an automotive transaction service platform operating within the Chinese market, Cango announced a new departure last November, with the signing of agreements to buy $400 million in crypto mining equipment from a number of vendors, including Bitmain. With crypto mining a banned activity in China, the company has deployed its mining operations at various locations across North America, South America, the Middle East and East Africa. By January, the company was being referred to as a “Bitcoin mining powerhouse.” At that time, the company’s Communications Director, Juliet Ye, told CoinDesk that the firm’s entry into the Bitcoin mining sector had surprised people, given that “nobody has ever heard of Cango before.” By April, Cango had sold its legacy auto-financing business for $352 million to a firm linked to Bitmain affiliate, Antalpha, allowing it to focus exclusively on mining. The company’s stock has surged 180% over the course of the last 12 months. Ye said that the Chinese firm’s pivot to Bitcoin mining has created a buzz around the company that had been absent previously.

Dtcpay Looks to Extend Crypto Payment Services to Hong KongDtcpay, a Singapore-based payment processor catering to both fiat and cryptocurrencies, has set its sights on expanding into Hong Kong by the end of this year. The company also has plans to establish an office in Dubai, another prominent crypto hub, by 2024.Photo by Jonas Leupe on UnsplashNorth Asia potentialIn an interview with Tech in Asia, Kanny Lee, the group CEO of Dtcpay, expressed optimism about the North Asia market, citing clear regulations and rules for digital assets and the recent opening up to retail participants. Lee believes that the region holds significant potential for growth over the course of the coming years.Dtcpay generates revenue through crypto conversion rates on transactions and has already acquired approximately 12 merchants. The company aims to onboard up to 100 merchants by the end of 2023. Since the beginning of this year, the firm has experienced a fourfold increase in transaction volume.Seamless regional paymentsLee acknowledged that most consumers view tokens primarily as investments. Dtcpay’s objective is to unify various payment methods across different countries, including Indonesia, Malaysia, India, Vietnam, and Singapore, providing a seamless experience for both merchants and consumers.As an example, Dtcpay enables users to purchase cars using cryptocurrencies, significantly reducing transaction fees from approximately 4% to just 0.5% compared to cash payments. Notable partnerships in Singapore include Cars and Coffee and DM Autohaus.In June, Dtcpay secured a pre-series A funding round, raising $16.5 million from Kwee Liong Tek. Tek, the chairperson of the Pontiac Land Group, which owns renowned hotels such as the Ritz-Carlton and Conrad Hotels in Singapore, has enabled Dtcpay to target the hospitality sector. At the time Lee said that there are an increasing number of businesses expressing interest in collaborating with regulated entities in the digital assets space and combined with an increase in the adoption of digital payments, that’s turbocharging DTCpay’s business.RebrandThat focus on digital payments led to the company rebranding back in April from Digital Treasures Center to Dtcpay. It appears that Hong Kong was already on the company’s radar back then as Lee stated at the time that “in Asia, particularly the key tier 1 financial capitals such as Singapore, Hong Kong and Tokyo, [they] have experienced a rapid rate of digital adoption primarily due to transparent regulatory frameworks for digital financial inclusion.”Additionally, Dtcpay obtained a major payment institution license from the Monetary Authority of Singapore in August 2022. The company plans to launch a debit card in Q4 2023. That product will allow cardholders to convert their cryptocurrencies into multiple currencies without incurring foreign exchange fees.The company was co-founded in 2019 by Sam Lin, Band Zhao, and Alice Liu, with Lee joining the company earlier this year with a view towards expanding its area of operations beyond Singapore.With its expansion plans into Hong Kong and its focus on innovation, Dtcpay is certainly aiming to establish itself as a leading player in the crypto payment services industry, catering to the evolving needs of merchants and consumers alike.

Ripple Expands in Asia-Pacific with Full License to Operate in SingaporeEnterprise blockchain firm Ripple announced on Wednesday (UTC) that it has secured a full license to operate in Singapore, where it has established its Asia-Pacific headquarters since 2017.Photo by Sergio Sala on UnsplashFrom outline to full approval in 4 monthsThis development marks another step in Ripple’s strategic expansion within the Asia-Pacific region, known for its rapidly growing cryptocurrency market. Ripple’s journey to obtaining this full license began less than four months ago when the Monetary Authority of Singapore (MAS) granted it an initial in-principle approval in June. With the newly acquired full license, Ripple is now authorized to offer regulated cryptocurrency payment services in Singapore, a key financial hub in the region.Brad Garlinghouse, the CEO of Ripple, expressed his enthusiasm for the company’s continued growth in Singapore, stating:“We have hired exceptional talent and local leadership, doubling headcount over the past year and plan to continue growing our presence in a progressive jurisdiction like Singapore.”Global expansion strategyThe company also highlighted the fact that over 90% of Ripple’s business occurs outside the United States, making the Asia-Pacific region, and Singapore in particular, a vital part of its global expansion strategy.Monica Long, President of Ripple, explained in a recent interview with CNBC that the Singapore office has seen substantial growth in the past year due to the booming business opportunities in the Asia-Pacific region. This expansion aligns with Singapore’s leadership in crypto regulation in the region. The introduction of the Payment Services Act, which has been in effect since January 2020, has played a large part in that, regulating payment services and crypto services to the public.Singapore’s regulatory framework also includes requirements for crypto service providers to safeguard customer assets in statutory trusts by the end of 2023 and restrictions on facilitating lending or staking of retail customers’ assets. These measures ensure consumer protection and responsible growth in the crypto industry.Praising SingaporeGarlinghouse commended Singapore’s regulatory approach, stating, “Under MAS’ leadership, Singapore has developed into one of the leading fintech and digital asset hubs, striking the balance between innovation, consumer protection and responsible growth.” Ripple’s experience in Singapore differs entirely from the ongoing legal battle it has found itself in in the United States with the Securities and Exchange Commission (SEC).Both Ripple and Coinbase have found themselves embroiled in lawsuits with the regulator in the US. In Ripple’s case, the firm and its founders have been accused of unlawfully selling their native cryptocurrency XRP without registering it with the SEC. However, a landmark ruling in July determined that XRP, as a token, may not necessarily be classified as a security.Long spoke to the contrasting experiences the firm has encountered between the United States and Singapore. Long stated:”Being in Singapore a couple weeks ago felt like night and day compared to the US in terms of open dialogue with regulators, and thus being able to build innovative *and* compliant products.”Ripple, along with Coinbase and several other crypto firms, has criticized the lack of regulatory clarity in the US and has even considered relocating operations due to the SEC’s stringent regulatory stance. Notably, Coinbase also recently announced its successful acquisition of a major payment institution license in Singapore, following its in-principle approval obtained about a year ago.