Animoca Brands & Standard Chartered form Anchorpoint in Hong Kong

Hong Kong's financial watchdog, the Securities and Futures Commission (SFC), has issued a stern warning against two crypto investment schemes, namely the "Floki” and “TokenFi” staking programs. Offering high annual returnsThese programs, luring investors with enticing promises of annual returns ranging from 30% to over 100%, have triggered concerns within the regulatory authority due to their lack of authorization and questionable nature. In an update issued on Friday, the SFC emphasized that both Floki and TokenFi's staking offerings have not been granted approval for public offerings. Furthermore, the administrators of these programs have failed to provide convincing explanations about the feasibility of achieving such unusually high returns. The SFC cautioned that engaging in staking arrangements involving virtual assets without proper authorization may constitute unauthorized collective investment schemes.Photo by Sigmund on UnsplashUnsustainable yieldThe watchdog expressed its worry about the legitimacy of these staking programs, highlighting that neither has received the necessary authorization to provide services to the public in Hong Kong. Investors participating in these programs would not be protected under the SFC's regulations, potentially exposing them to significant financial losses. With the failure of many crypto platforms in 2022, a number of industry commentators began to question the sustainability of some public offerings. One such commentator, Allen Farrington, General Partner at bitcoin-native venture capital firm Axiom, repeatedly asked, “Where does the yield come from?” That appears to be the SFC’s concern in this instance. In its statement, it reaffirmed its commitment to upholding regulatory standards and safeguarding investors from fraudulent schemes. It warned that any breach of the law, including the promotion of unlicensed collective investment schemes, will result in appropriate legal action. Elon Musk-inspired meme coinFloki, initially conceived as a meme-coin inspired by Dogecoin, a project associated with Elon Musk, has evolved into a comprehensive Web3 project spanning decentralized finance, NFTs and the metaverse. TokenFi is a crypto and asset tokenization platform under the Floki umbrella, which aims to capitalize on the booming trillion-dollar tokenization industry. TokenFi, denoted by the ticker TOKEN, seeks to simplify the crypto and asset tokenization process with aspirations of becoming a leading platform globally. Launched last October, TokenFi operates as a multichain tokenization platform on both Ethereum and Binance Smart Chain. While both Floki and TokenFi offer distinct staking programs, they share a close integration. Stakers under the Floki scheme gain access to a significant portion of TokenFi's supply, while TokenFi stakers earn TOKEN rewards through a user-friendly interface. In the broader context of crypto staking, the practice allows users to earn rewards by contributing to a blockchain's security through the proof-of-stake mechanism. By staking cryptocurrency, users participate in a staking pool, similar to depositing money into a savings account. Staking rewards typically range from 5-20%, attracting investors seeking profitable opportunities. However, caution is advised against schemes promising unrealistic returns. The SFC, in collaboration with the Hong Kong Police Force, established a dedicated working group last year to enhance vigilance and enforcement in the evolving crypto sector. 

SBI Remit and Shonan Shinkin Bank Join Forces on International RemittancesSBI Remit, a long-time partner of Ripple, has expanded its collaboration in Japan, partnering with Shonan Shinkin Bank to offer international remittance services.The partnership, operating under the guidance of SBI Group and announced by SBI Remit last week, claims to provide a more efficient and cost-effective solution for international employees living in Japan who need to transfer money abroad.Photo by Naoya Matsuda on UnsplashEfficient overseas transfersBoth Tokyo and Kanagawa Prefecture, the area of operation of Shonan Shinkin Bank alongside the city of Yokosuka where it is headquartered, have witnessed a surge in the number of migrant employees working there. That makes these metropolitan areas ideal locations for this particular collaboration.According to the press release, the partnership “was formed as mutual use of both parties’ network and strengths would allow Shonan Shinkin Bank to offer highly convenient international money transfer services that deliver convenience for foreign nationals working at local companies while enabling SBI Remit to develop new markets.”The collaboration, named SBI Ripple Asia, aims to leverage Ripple’s distributed ledger technology to streamline international payments. The technology has the potential to disrupt the remittance sector by offering real-time processing of cross-border payments. This approach significantly reduces transfer times and costs. One of the key elements of the partnership involves the use of XRP, Ripple’s native digital asset, for on-demand liquidity (ODL) between Japan and the Philippines. ODL allows for near-instantaneous transfers.Broader sector trendThis partnership is part of a broader trend in the financial industry, where blockchain technology is being harnessed to enhance services. Ripple, in particular, has been targeting remittances through an offering that enables a competitive edge through both speed and cost-effectiveness relative to transfers. Foreign workers in Japan, particularly the 280,000 Filipinos working in the country, stand to benefit from this new offering. That’s due to the ongoing need for foreign overseas workers to send money back home.The SBI Remit and Shonan Shinkin Bank collaboration highlights the immense potential of blockchain technology in reshaping financial services, especially in regions with a high concentration of foreign workers.This development represents yet another significant achievement in the longstanding partnership between SBI and Ripple. The two companies first began to cooperate by way of a mutually beneficial partnership in 2016 with the establishment of SBI Ripple Asia. The recent demonstration of using XRP for ODL remittances in Japan and the Philippines showcases the tangible benefits of this collaboration, with the potential to reduce international transfer times from days to mere minutes.With the demand for seamless international money transfers on the rise, the partnership between SBI Remit, Shonan Shinkin Bank, and Ripple is poised to make a significant impact on the remittance landscape in Japan and beyond.Foreign overseas workers and the families they support in their home countries have long since been at the edge when it comes to financial inclusion. In the press release, Shonan Shinkin Bank was stated to be committed to achieving financial inclusion by partnering with various stakeholders to provide solutions to the various issues facing small- and medium-sized enterprises, as well as providing international remittances and other solutions to the diverse local community.As the financial industry continues to embrace blockchain solutions, collaborations like this one serve as a testament to the ongoing evolution of global payments systems.

South Korea is set to allow initial coin offerings (ICOs) next year, easing a ban on crypto fundraising that has been in place since 2017. A draft of the Digital Asset Basic Act, prepared by the Financial Services Commission, would allow domestic sales of digital assets if issuers meet disclosure requirements, the Maeil Business Newspaper reported. The measure is intended to address concerns about tokens that are initially listed on overseas exchanges before becoming available to South Korean investors. The legislation outlines tougher accountability standards for crypto issuers. Projects that provide false information or fail to disclose material details in their whitepapers ahead of an ICO could be held liable for investor losses. Liability would also extend to other parties substantially involved in an offering, including outsourced operators and market makers.Photo by Y K on UnsplashStablecoin issuers need Korean presenceSeparate provisions set out rules for stablecoins, barring tokens issued by entities without a physical presence in South Korea from domestic trading, a restriction that would apply to widely used stablecoins such as USDT and USDC. Issuers would be required to fully back stablecoins with reserves such as cash or government bonds held at banks or financial institutions and would be prohibited from paying interest to users. The proposal reflected the FSC’s position on the second phase of digital asset legislation focused on stablecoin issuers. The issue remains subject to inter-institutional debate, with the Bank of Korea pressing for a bank-led consortium model for stablecoin issuance. The ruling Democratic Party of Korea (DPK) is expected to review a consolidated bill combining proposals from the government and the National Assembly next month, with plans to advance the legislation during the regular parliamentary session in the first quarter of 2026. The FSC’s focus on consumer protection is also reflected in its plans to introduce a Digital Finance Security Act, detailed in a recent report to the presidential office. According to Digital Asset, the proposed legislation would establish rules for traditional financial institutions as well as electronic financial businesses and virtual asset service providers. The move came after a 44.5 billion won ($30 million) hacking incident last month at Upbit, the country’s largest crypto exchange. Existing regulations under the Virtual Asset User Protection Act do not contain provisions specifically covering such cases. Separately, the FSC is working to strengthen its response to emerging forms of financial crime, including transnational offenses and crypto-enabled money laundering. It said measures under consideration included adding state-level criminal organizations to the list of entities barred from financial transactions, improving anti-money-laundering (AML) rules to better align with international standards, and expanding the scope of the travel rule. On the supervisory side, the commission intends to make the Virtual Asset Division a permanent unit after initially establishing it as a temporary body, News1 reported. The Virtual Asset Inspection Division within the Financial Intelligence Unit is also set to become a standing unit. Price declines weigh on exchangesThe stepped-up regulatory focus has coincided with a broader downturn in the crypto market. Bitcoin is trading below $89,000, about 30% below its all-time high of $126,000 set earlier in October. CoinGecko data cited by IT Chosun showed average daily trading volume across South Korean exchanges falling to $2.95 billion in November from $4.41 billion in August, with trading fees accounting for about 98% of exchange revenue. The broader market weakness has also been accompanied by declines in altcoins. South Korean crypto investors attributed the recent drop in altcoin prices to capital flowing into major cryptocurrencies such as Bitcoin and Ethereum. A weekly survey conducted by CoinNess and Cratos showed that 41.7% of the 2,000 respondents cited capital concentration in leading tokens as the primary factor, followed by the growing number of altcoins at 31.6%, their limited practical value at 14.7%, and technical factors such as chart patterns at 12.1%.