Kazakhstan pilots tenge-backed stablecoin with Solana and Mastercard

Regulatory breach sees Philippines initiate blockade on BinanceIt’s been a very challenging year for global crypto platform Binance — one that doesn’t appear to be improving with the latest move to block access to the platform in the Philippines.Photo by Alexes Gerard on UnsplashUnlicensed to tradeIn a noteworthy development, the Philippines Securities and Exchange Commission (SEC) declared on Tuesday its intention to block access to the Binance platform due to regulatory irregularities.The SEC asserted in a statement that Binance lacks the necessary license to operate in the Philippines, cautioning the public against engaging in investment products on the platform. The regulator stated:”BINANCE is NOT REGISTERED as a corporation in the Philippines and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY.”The regulatory body is actively working to have Binance blocked in the country, citing concerns about unregistered investment products. The impending ban is set to take effect within three months, allowing investors a window to exit their positions held through Binance.Pushback on advertisingIn addition to its attempts to block access to the platform, the SEC has also approached tech giants Google and Meta (Facebook’s parent company), requesting the blocking of Binance advertisements on their platforms within the country. This is a response to social media campaigns designed to attract Filipino investors to the embattled cryptocurrency exchange. While users can still download the Binance app from Google and Apple app stores in the Philippines, the extent of investor activity in the country remains uncertain.Follows U.S. regulatory actionThese actions in the Philippines come hot on the heels of Binance’s CEO Changpeng Zhao (CZ) stepping down and pleading guilty in a U.S. money-laundering case. The Philippines’ ban adds to Binance’s challenges as it aims to expand in Southeast Asia amid legal troubles in the U.S. and restrictions on operations in China.Over the course of a three-month period earlier this year, the world’s largest crypto exchange platform lost its ability to trade in Germany, Canada, Belgium, the Netherlands and Cyprus. Additionally, French authorities have been investigating the platform for alleged illegal provision of digital asset services and aggravated money laundering.Facing regulatory pushback in the U.S. and Europe, Binance appeared to be concentrating on making further in-roads in Asian markets over the course of this past year. It had recently pursued a joint venture with Gulf Energy in Thailand to launch a new digital assets exchange.Media reports previously suggested that Binance was considering acquiring a Philippine company to obtain operating licenses in the country. The SEC’s move to ban the platform follows a warning issued last year against using Binance, and it represents a broader effort to regulate the cryptocurrency sector and protect the public interest.The recent guilty plea by CZ for violating U.S. money laundering laws has added to the legal woes of the cryptocurrency giant. CZ agreed to personally pay $50 million in penalties as part of a $4.3 billion settlement to resolve investigations into Binance’s practices. He may also still face prison time in the U.S. In the Philippines, the SEC warns that Section 28 of the Securities Regulation Code (SRC) allows the application of a fine of up to five million pesos ($90,000) and a maximum prison term of 21 years.

Crypto.com Plans to Launch Its Services in South Korea This YearIn an interview with local news outlet Global Economic, Patrick Yoon, General Manager Korea of Crypto.com, shared the global cryptocurrency exchange’s plans to launch its services in South Korea this year. Yoon, who previously held positions at Standard Chartered Bank and Visa, joined Crypto.com in September 2021.Expansion into KoreaAccording to Yoon, Crypto.com is actively preparing to meet the requirements for obtaining a real-name account from a Korean commercial bank. In Korea, virtual asset trading platforms are legally obliged to secure such a bank account in order to support the trading of the nation’s fiat currency, the Korean won. The exchange secured virtual asset service provider registration in South Korea last year through the acquisition of Korea-based virtual asset exchange OK-BIT.Photo by Anna Evlanova on UnsplashCollaboration with Korean ent industryDuring the interview, Yoon emphasized the growing global popularity of Korean entertainment content, including drama and music. He mentioned that Crypto.com is engaging in discussions with various Korean intellectual property holders and entertainment studios to explore innovative ways to introduce Korean culture and art to international crypto audiences. Notable collaborators include entertainment company Fantagio, K-pop girl group Mamamoo, content studio Astory, and production house Studio Dragon.Crypto.com’s global presenceFounded in 2016, Crypto.com has garnered an impressive user base of 80 million worldwide. The crypto exchange has been actively obtaining regulatory approvals in many countries, including France, the United Kingdom, Dubai, Australia, Italy, Greece, and the Cayman Islands.Recent developmentsCrypto.com also recently obtained a virtual asset service provider registration from the Bank of Spain, the central bank of Spain. Prior to this accomplishment, the company received a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), the central bank of Singapore. While Crypto.com continues to make progress in various jurisdictions, it made the strategic decision to discontinue its institutional offering in the United States due to limited demand in that particular market.

Binance’s U.S. legal woes may have repercussions for its expansion in ThailandWhile Binance, the world’s largest cryptocurrency exchange, is gearing up for a new trading venture in Thailand, the recent guilty plea by the firm in the United States and the hefty $4.3 billion penalties for anti-money laundering and sanctions violations have raised concerns about the feasibility of its Thai market venture.That’s a consideration that has been raised by a recent report by Bloomberg. Earlier this month, it emerged that Binance had entered the beta testing phase of its Binance.th platform in Thailand. The venture is a collaboration with the local company, Gulf Energy Development Pcl, led by billionaire Sarath Ratanavadi.Photo by Peter Borter on UnsplashCasting a shadow over expansion plansFollowing Founder Changpeng Zhao’s (CZ) departure from the CEO role in the wake of the US criminal probe resolution, Singaporean Richard Teng, a regulator-turned-crypto executive, has taken the helm at Binance. In its report, Bloomberg suggests that these recent issues in the U.S. have “cast a shadow over the planned domestic digital-asset platform” in Thailand.The new Binance CEO has emphasized Binance’s commitment to compliance overhaul and increased corporate transparency. In an interview Ratanavadi expressed confidence in Binance, noting that the company was not accused of crimes such as fraud or misuse of customer funds in the U.S. settlement. He stated:“Binance grew extremely fast and so probably crossed paths with some regulations.”Despite the regulatory storm, Ratanavadi chose Binance due to its market-leading position. The stringent scrutiny by Thailand’s Securities and Exchange Commission and the approval process, including inquiries about Binance, reflect the regulator’s cautious approach. The Gulf Binance Co. platform is set to launch fully in January, with Gulf Energy holding a 51% stake and Binance the remaining share.Challenges in other Asian marketsThe company may also face additional challenges in other Asian markets as a consequence of its regulatory troubles in the United States. While it remains to be seen if this was an unrelated development, it emerged earlier this week that regulators in the Philippines were moving to block access to the Binance platform and curtail the exchange’s ability to target Filipinos through advertising.In South Korea, Binance’s activities in the country have come under renewed scrutiny within the crypto community in the wake of the regulatory penalties Binance has experienced in the U.S. Binance is active in that market through its acquisition of fiat-to-crypto exchange GOPAX. While GOPAX management are unfazed by these events, others have suggested that there may be consequences in terms of the ability of GOPAX to achieve full regulatory approval.Demand reductionAnother challenge for the Thai venture includes a reduction in demand for crypto trading services in the Southeast Asian country. Official data reveals a significant drop in monthly trading volume at licensed digital-asset operators in Thailand, falling from over 250 billion baht in November 2021 to 17 billion baht ($490 million) in September 2023. The number of active trading accounts has plummeted by 87% from the peak in 2021.Ratanavadi, whose net worth is estimated at $11 billion, believes that tighter regulatory oversight will restore investor confidence. Gulf Binance’s technology partner, Advanced Info Service Pcl, with its retail outlets, is expected to contribute to the joint venture’s marketing efforts.