SBI–Zodia venture to shut down amid Japan crypto regulatory hurdles

Leading cryptocurrency exchange OKX has acquired an in-principle approval from Singapore’s financial regulatory authority for a Major Payment Institution (MPI) license through its local arm, OKX SG.Photo by Mark Stoop on UnsplashEnabling broader service offeringAccording to a blog post published by the company on March 12, OKX confirmed the receipt of in-principle approval for the coveted license. The MPI license, issued by the Monetary Authority of Singapore (MAS), Singapore's primary financial regulatory body, represents an important step forward for the company. Once granted the full license, OKX will be empowered to offer digital payment token services and facilitate cross-border transfers within Singapore. A plethora of OKX executives took to social media to comment on the achievement. Hong Fang, President of OKX, expressed the company's long-standing interest in Singapore, describing it as a cornerstone of its global strategy. Fang emphasized Singapore's appeal to entrepreneurial ventures, citing its tech-savvy populace as early adopters. She praised the country's regulatory framework as "clear and thoughtful," enabling businesses like OKX to cultivate sustainable growth over the long term. With this regulatory approval, OKX intends to concentrate on bolstering its spot product offerings in the Singaporean market. Fang outlined plans to forge local banking partnerships to enhance customer experiences and expand service offerings in the future. In summarizing the company’s outlook, Fang wrote that OKX is looking to “build locally. Be compliant. Invest long-term.” OKX CEO Star Xu suggested that the firm intends to be a “long-term member of the Singapore fintech community” as a consequence of the approval. Global market expansionThe company’s CMO, Haider Rafique, pointed out that this latest license approval follows hot on the heels of further expansion in venues like Dubai, Argentina and Turkey. The in-principle license approval follows OKX's recent acquisition of a conditional license from Dubai’s cryptocurrency regulatory authority. On Jan. 16, the Virtual Assets Regulatory Authority (VARA) of Dubai granted OKX a license, enabling the exchange to provide regulated services as a virtual asset service provider within the region.On Feb. 27 the firm launched OKX TR, catering to the needs of crypto users in Turkey. In the same month, the company launched its services within the Argentinian market. MPI-licensed entities like OKX enjoy the privilege of facilitating multiple payment services, surpassing volume limitations prescribed for standard payment firms. This flexibility allows OKX to transcend the prescribed limits of three million Singapore dollars ($2.2 million) for individual payment services and a monthly cap of SG$6 million ($4.4 million) for multiple services. Joining OKX in the pursuit of regulatory compliance, BitGo, a prominent crypto custody business, also received an in-principle approval from MAS. BitGo announced on Jan. 10 that it had secured initial approval, subject to fulfilling additional requirements stipulated by the regulator. Several other notable cryptocurrency entities, including Crypto.com, Coinbase and Ripple, have already obtained complete payment institution licenses in Singapore. OKX's attainment of in-principle approval underscores the ongoing drive among market participants towards regulatory compliance and expansion into key markets. The move should help the firm to position itself well for further market growth as the digital assets space continues to progress.

Wemade Partners with Etherscan to Enhance Transparency in WEMIX 3.0 EcosystemWemade, a leading company in the South Korean blockchain gaming industry, announced on Monday a partnership with Etherscan, a renowned block explorer and analytics platform. The objective of this collaboration is to enhance transparency within the WEMIX 3.0 ecosystem.Photo by Shubham Dhage on UnsplashNew block explorerAs part of this partnership, both companies will work together to develop a dedicated block explorer for the WEMIX 3.0 mainnet and Kroma, an Ethereum Layer 2 project developed by Lightscale, a subsidiary of Wemade. The new block explorer will provide advanced functionality, enabling users to access a more transparent transaction history. The explorer is expected to be launched in the first half of this year.InteroperabilityKroma is Lightscale’s Ethereum Layer 2 project whose goal is to establish a layer 2 blockchain based on zero-knowledge rollups. Thanks to Kroma’s interoperability, the WEMIX ecosystem is anticipated to extend beyond the WEMIX blockchain, linking to external blockchains.Etherscan, one of major block explorers for Ethereum, is an established platform offering extensive analytics capabilities. It has previously developed and operated various block explorers, including BscScan for Binance Blockchain, PolygonScan for Polygon Blockchain, and Arbiscan for Arbitrum Blockchain.Through this partnership, Wemade continues its commitment to decentralizing the WEMIX 3.0 mainnet and driving innovative advancements of a transparent mega-ecosystem.

Malaysia Looking to Wean Itself Off Dollar DependencyAccording to Prime Minister Anwar Ibrahim, China is willing to engage in discussions with Malaysia regarding the creation of an Asian Monetary Fund. This proposal, which has been circulating for decades, aims to decrease the dependence on the US dollar.©Pexels/Sergei StarostinAsian Monetary FundAnwar highlighted the necessity to minimize reliance on the dollar and the International Monetary Fund and proposed the establishment of this fund at the Boao forum in Hainan last week. He stressed that the fund would aid in diversifying the financial landscape of Asia and improving its resilience against economic challenges.Following a state visit to China last week, Anwar stated that “there is no reason for Malaysia to continue depending on the dollar.” The Prime Minister told the Malaysian parliament on Tuesday that China’s President Xi Jingping was receptive to the idea of an Asian Monetary Fund and welcomed further discussions on such a proposal.Anwar Ibrahim, serving as both the Finance Minister and Prime Minister of Malaysia, stated that the country’s central bank is already taking measures to allow for negotiations between Malaysia and China using their respective currencies, the ringgit and renminbi.The robustness of the US dollar poses a significant challenge for Malaysia and other Asian countries, particularly as Malaysia is a net importer of food. In September 2022, the Bloomberg dollar index reached an all-time high, leading to a decline in the value of the ringgit and other Southeast Asian currencies to levels not seen in decades.As a result, Anwar Ibrahim’s proposal for a shift towards bilateral trade negotiations with China using the ringgit and renminbi holds the potential to alleviate some of the region’s dependence on the dollar and reduce the impact of its fluctuations.International shift away from dollarThis development comes as other officials in the region, particularly Singapore, have been discussing strategies to manage the effects of a dominant US dollar that has weakened local currencies and been used as an instrument of economic power by the United States.There has been a raft of deals struck in recent weeks all pointing towards an international shift away from the US dollar as the global reserve currency. Russia has agreed with China to trade in renminbi. A major trade deal was struck recently between China and Brazil that will see the two countries trade in reals and renminbi. Major oil producer Saudi Arabia has made similar soundings and signed similar deals with Beijing.Bitcoin as a reserve currencyAll of this recent upheaval has brought further consideration of bitcoin acting as a reserve currency back into view. It’s expected that even if there is a shift away from the US dollar, the renminbi won’t be capable of acting as a single dominant global reserve currency. Taking to Twitter on Wednesday, Bloomberg Intelligence Crypto Market Analyst Jamie Coutts suggested that bitcoin’s performance in Q1, 2023 marks “a significant milestone in its ascendancy as a potential global reserve asset.”Coutts believes that it marks the first occasion that the leading cryptocurrency has acted as a safe haven asset during a liquidity crisis. Bitcoin remains at an early stage of development. Nobody expects that it could serve as the global reserve currency at this point. However, it is not unreasonable to anticipate it increasingly growing into a role as a reserve currency used for international trade and settlement. Especially so, as issues bubble over relative to banking and a desire to escape the clutches of US dollar domination.