Yunfeng Financial buys 10K ETH as Hong Kong firms deepen push into digital assets

India’s RBI Cites Stablecoin Risks With Call for Global RegulationIn its latest Financial Stability Report released on Wednesday, the Reserve Bank of India (RBI) expressed concerns about the potential harm stablecoins could inflict on emerging markets and developing economies (EMDE).Photo by rupixen.com on UnsplashPerennial criticThe RBI has been a consistent critic of cryptocurrencies, but particularly so in the case of stablecoins, from an EMDE perspective. However, the lack of authenticated data and inherent data gaps in the crypto ecosystem hindered a comprehensive assessment of financial stability risks.According to the report, one of the ways stablecoins could pose a threat to an EMDE is through currency substitution. Since the underlying assets of stablecoins are generally denominated in freely convertible foreign currencies, the widespread adoption of stablecoins could lead to currency mismatches on the balance sheets of banks, firms, and households, resulting in an increased risk to the economy.Monetary policy headacheFurthermore, the presence of stablecoins in the economy could create challenges for an EMDE’s central bank in setting domestic interest rates and managing liquidity conditions. The decentralized, borderless, and pseudonymous characteristics of crypto-assets make them potentially attractive instruments for circumventing capital flow management measures.Another concern highlighted by the RBI is that stablecoins could undermine credit risk assessment and interfere with banks’ ability to mobilize money and create credit by offering an alternative to the domestic financial system. Additionally, the report emphasized the difficulty in tracking peer-to-peer transactions, on the basis that they increase the potential for illicit activities.In light of these risks, the RBI reiterated its call for global coordination and regulation. It emphasized the need for a globally coordinated approach to analyze the risks posed to EMDEs compared to advanced economies (AEs). As India holds the G20 presidency, one of its priorities is to establish a framework for the global regulation of unbacked crypto-assets, stablecoins, and decentralized finance (DeFi).Establishing a CBDCWhile the RBI has been cautious about cryptocurrencies, it has shown more enthusiasm for central bank digital currencies (CBDCs). In November, the RBI launched a wholesale digital rupee pilot project. It followed that up in February with a retail digital rupee pilot project. In March, it signed an agreement with the Central Bank of the United Arab Emirates to study a CBDC bridge aimed at facilitating trade and remittances.By calling for global regulation and highlighting the risks associated with stablecoins, the RBI aims to foster a safer and more secure environment for financial transactions while exploring the potential benefits of CBDCs in facilitating trade and remittances.As the discussions around stablecoins and CBDCs continue, we’re likely to see ever greater collaboration between regulators, policymakers, and international organizations with a view towards establishing a comprehensive regulatory framework that addresses the challenges and harnesses the potential of digital assets on a global basis.

Shots Fired in New OKX Ad CampaignGlobal crypto spot and derivatives exchange OKX has launched a daring ad campaign that sets US-based rival exchange Coinbase firmly in its cross hairs.The formerly Chinese and now Seychelles-based exchange has pushed out a global ad campaign along the following theme: “The system doesn’t need an upgrade; it needs a rewrite.” The ads were launched on Tuesday, pointing out the ills of the traditional, centralized financial system.Photo by Merakist on UnsplashCrypto exchange rivalryThe advert doesn’t explicitly call out its rival, Coinbase. However, it is nuanced in taking a subtle dig at the US-based exchange. Exactly two months prior, on March 9, Coinbase released its own ad campaign. Coinbase claimed in its ad that “it’s time to update the system,” with OKX’s subsequent commercial having been carefully worded to poke fun at the Coinbase commercial.With a number of high profile epic failures of crypto businesses over the past twelve months, including the fall of FTX, the remaining exchanges in the business have been tripping over themselves in an effort to convince the alternative asset-investing public that theirs is the safest platform upon which they can securely trade.In its sixty second commercial, OKX poses the question “why don’t we change everything?”, set up by its claim that the conventional finance system is broken.The last of the big spendersThere’s been a notable change of strategy in the marketing activities of crypto businesses since the height of the last crypto bull run. Gone are the marketing excesses exemplified most by the now bankrupt FTX exchange.FTX demonstrated itself to be a profligate spender on all manner and means of marketing, particularly during 2021 and 2022. It paid Wall Street investor and Shark Tank star Kevin O’Leary $15 million to be a spokesperson for the company. Similar deals were struck with a range of celebrities including former NBA star Shaquille O’Neal, NFL stars such as former New England Patriots quarterback, Tom Brady, and a host of others.At the height of its marketing opulence, the fraudulently run firm signed a $135 million sponsorship deal that provided it with the naming rights to the home stadium of the NBA’s Miami Heat. 2022's Super Bowl, one of the world’s largest single marketing opportunities, saw FTX and others pay out big on advertising spend.By contrast, this year’s Super Bowl was almost a complete washout as far as crypto business participation was concerned. Meanwhile, all of the celebrities that featured in FTX’s marketing activities have found themselves the subject of multi-million dollar class action lawsuits filed by FTX creditors.A more sobering marketing strategyDespite the reputational damage that crypto has suffered due to these high profile failures, firms like OKX and Coinbase have continued to maintain a responsible level of advertising and marketing activity.That’s best exemplified by OKX’s ongoing marketing relationships with McLaren’s Formula One racing team and Manchester City Football Club. In March, US-based crypto exchange Kraken announced a marketing partnership with the Williams Formula One racing team.Crypto.com is probably the only crypto firm that spent excessively during the last bull run yet has continued to maintain a relatively high level of marketing activity. Much of that may have been due to commitments it had made during a more buoyant market. Notwithstanding that, the firm did fall foul of the UK advertising regulator, who banned its NFT promotion in December 2022.

South Korea’s financial regulator outlined plans on Jan. 28 to transition crypto exchanges from a registration system to a licensing regime to boost capital market appeal, Financial News reported. Financial Services Commission (FSC) Chairman Lee Eok-won stated that the proposed licensing framework—part of the Digital Asset Basic Act—would grant exchanges ongoing authorization while assigning them broader responsibilities.Photo by Tara Winstead님 on PexelsRuling party plans Lunar New Year crypto bill filingThe FSC has recommended capping individual ownership stakes in exchanges at 15–20% to prevent ownership concentration, a view broadly supported by the ruling Democratic Party’s Digital Asset Task Force, according to Edaily. However, party officials noted that internal disagreements remain over whether to include these limits directly in the bill, which they aim to submit before the Lunar New Year holiday next month. Progress on the legislation faces hurdles regarding stablecoins. The Democratic Party has presented a mediation proposal, but the Bank of Korea and the FSC remain at odds. The central bank argues that stablecoin issuance rights should be restricted to consortia where banks hold a majority stake of at least 51%. The regulatory push coincides with a surge in crypto participation. Data from the Financial Supervisory Service (FSS)—cited by People Power Party lawmaker Lee Heon-seung and reported by the Asia Business Daily—shows the number of won-based traders rose about 70% over the past three years. Users on the five major exchanges (Upbit, Bithumb, Coinone, Gopax, and Korbit) reached 9.91 million last year, up from 5.82 million in 2023. Despite the growing user base, trading volumes have been volatile. Volumes surged to 2,411 trillion won ($1.8 trillion) in 2024 from 1,122 trillion won ($801.6 billion) in 2023, before easing to 2,140 trillion won ($1.6 trillion) last year amid a market slowdown. Tax rulings and crime cases test crypto oversightAs regulations tighten, courts are clarifying tax treatments. According to the news outlet Digital Asset, a court recently upheld the National Tax Service’s decision to tax digital assets received through promotional events. The court rejected a claimant’s request for an 80% tax deduction, dismissing the argument that the promotion was a competition determined by participant rankings. The ruling clarified that the giveaways did not meet the legal definition of a competition eligible for such tax benefits under the Income Tax Act. Authorities are also grappling with crypto-related crime. According to another Edaily report, the Gwangju District Prosecutors' Office has launched a probe into five investigators after 320 seized Bitcoin was stolen from a phishing site during a handover of duties in August. Prosecutors have denied internal collusion. Separately, MBC News reported that Seoul police are investigating two teenagers accused of luring a buyer to a face-to-face trade in Gangnam on Jan. 27 and fleeing with 28 million won ($21,000).