Thailand’s SEC working towards updating ICO portal regulations

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.

Samil PwC seminar informs companies about crypto accounting amid shifting Korean regulationsWith the South Korean government anticipated to finalize a plan aimed at enhancing cryptocurrency transparency within this year, companies are preparing to swiftly respond to the changing accounting landscape.A seminar held on Thursday (local time) in Seoul by Samil PwC, the Korean member firm of the London-headquartered accounting firm PricewaterhouseCoopers, exemplifies these efforts. This meeting featured presentations from Samil staff, focusing on the implications of the new upcoming crypto accounting guidelines for businesses and exploring strategies for effective response.Photo by Kelly Sikkema on UnsplashGovt to soon finalize crypto accounting guidelinesDuring the meeting, an official from Samil PwC said that the Virtual Asset User Protection Act is set to be implemented next July. The accounting expert also noted that the Financial Services Commission’s guidelines on virtual asset accounting and the requirement for disclosing virtual assets in financial statement annotations, issued this July, are expected to be finalized shortly.From accounting to internal controlsAs the first speaker of the seminar, Lee Seung-wook, Partner at Samil PwC, delivered a presentation on the management of cryptocurrency accounting and the disclosure of cryptocurrency holdings within financial statement annotations. Lee classified companies into three categories: crypto issuers, crypto holders or investors and companies operating crypto businesses. He provided detailed guidance on what each category of companies should consider in their approach to managing and disclosing virtual assets.In particular, Lee drew attention by clearly explaining the accounting approaches companies should adopt in various scenarios, such as when offering cryptocurrency as an incentive to employees or airdropping cryptocurrency to customers for marketing purposes.Following this, Partner Jo Sung-jae delved into enhancing internal controls related to virtual assets. Drawing from PwC’s own framework, he presented practical methods to mitigate risks associated with cryptocurrencies, such as the loss of private keys, vault breaches and embezzlement.The seminar also covered the topic of Information Technology General Controls (ITGCs). Partner Lee Jeong-mi made a comparison between ITGCs in traditional business environments and those specific to the cryptocurrency industry, highlighting the unique considerations that crypto businesses need to be aware of. Furthermore, Managing Director Lee Eun-young discussed the tax implications related to cryptocurrency.Anticipation of uncertainty reductionLee Jae-hyuk, who oversees the cryptocurrency division at PwC and served as the overall manager of the seminar, expressed optimism that the government-led guidelines would reduce the uncertainty surrounding cryptocurrency accounting. He also conveyed his hope that the seminar would provide attendees with the opportunity to consider the influence of digital assets on corporate accounting, internal controls and tax implications, as well as their potential impact on future industry trends.Samil PwC stands out as one of the first Korean accounting firms to establish a dedicated blockchain division within its Digital Innovation Lab, incorporating a team of developers. Leveraging its accumulated expertise in this field, Samil PwC offers a broad range of services, including internal controls consultations, accounting audits, financial advice and tax filing. Further emphasizing its commitment to the evolving field of cryptocurrency, in June of this year, Samil PwC collaborated with the Korean Accounting Association (KAA) to conduct research focused on cryptocurrency accounting.

Seychelles-headquartered global crypto exchange OKX outlined on Nov. 18 that it will offer instant, zero-fee Singaporean dollar (SGD) deposits and withdrawals into and out of the exchange platform for customers resident in Singapore.Photo by Peter Nguyen on UnsplashDBS partnershipIn a press release published by GlobeNewswire on behalf of OKX, the company outlined that it has been in a position to enable this feature for its Singapore-based customers due to a collaboration with Singapore’s largest bank, DBS Bank. OKX Singapore CEO Gracie Lin said that “working with DBS to provide payment rail infrastructure in Singapore provides customers with secure and seamless access to digital assets.” As DBS is one of 27 banks that participate in PayNow, a real-time payment system that falls under the Fast and Secure Transfers (FAST) service in Singapore, OKX customers who are also customers of a bank that participates in the PayNow scheme, can effect those SGD deposits and withdrawals in real time. Lin added that OKX is working towards the addition of more features in an effort to further enhance the customer experience. The new offering takes OKX a step further towards integrating with the local traditional finance system (TradFi).  Singpass integrationAdditionally, the exchange has also integrated Singpass verification. Singpass is a digital identity system that enables Singaporean residents to access private sector and government services online. Back in March, the company acquired in-principle approval (IPA) from the Monetary Authority of Singapore (MAS) in respect of a Major Payments Institution (MPI) license. Continuing that shift towards regulatory compliance, it followed up with the acquisition of a full MPI license from MAS in September. The company is now one of 29 crypto sector firms to have been licensed by MAS in Singapore. While a particular effort has been made in Singapore, OKX has been making similar in-roads elsewhere. Last month, it launched its service in the United Arab Emirates (UAE), having received full licensing from Dubai’s Virtual Assets Regulatory Authority (VARA). Making further progress in October, OKX partnered with UK-headquartered multinational bank Standard Chartered for institutional crypto custody. Both Singapore and the UAE are seen by the company to be strategic crypto hubs. However, its efforts in expanding its offering globally has also taken it into other markets. In February OKX launched OKX TR, a specialized crypto exchange platform catering to the specific needs of the Turkish market. In an emailed response to Reuters, DBS Bank’s Head of Digital Assets, Evy Theunis, commented on its partnership with OKX:”DBS has been actively fostering a responsible and innovative digital asset ecosystem in Singapore for several years now. Working with OKX deepens the bank's wide-ranging involvement in this space." DBS has been following its own path as a pioneering TradFi entity getting further involved in cryptocurrency, blockchain and tokenization. Last month it launched DBS Token Services for institutions, integrating tokenization and smart contracting capabilities within its existing conventional services.