Bitcoin pullback tests sentiment as analysts revisit long-term targets

Ripple Expands in Asia-Pacific with Full License to Operate in SingaporeEnterprise blockchain firm Ripple announced on Wednesday (UTC) that it has secured a full license to operate in Singapore, where it has established its Asia-Pacific headquarters since 2017.Photo by Sergio Sala on UnsplashFrom outline to full approval in 4 monthsThis development marks another step in Ripple’s strategic expansion within the Asia-Pacific region, known for its rapidly growing cryptocurrency market. Ripple’s journey to obtaining this full license began less than four months ago when the Monetary Authority of Singapore (MAS) granted it an initial in-principle approval in June. With the newly acquired full license, Ripple is now authorized to offer regulated cryptocurrency payment services in Singapore, a key financial hub in the region.Brad Garlinghouse, the CEO of Ripple, expressed his enthusiasm for the company’s continued growth in Singapore, stating:“We have hired exceptional talent and local leadership, doubling headcount over the past year and plan to continue growing our presence in a progressive jurisdiction like Singapore.”Global expansion strategyThe company also highlighted the fact that over 90% of Ripple’s business occurs outside the United States, making the Asia-Pacific region, and Singapore in particular, a vital part of its global expansion strategy.Monica Long, President of Ripple, explained in a recent interview with CNBC that the Singapore office has seen substantial growth in the past year due to the booming business opportunities in the Asia-Pacific region. This expansion aligns with Singapore’s leadership in crypto regulation in the region. The introduction of the Payment Services Act, which has been in effect since January 2020, has played a large part in that, regulating payment services and crypto services to the public.Singapore’s regulatory framework also includes requirements for crypto service providers to safeguard customer assets in statutory trusts by the end of 2023 and restrictions on facilitating lending or staking of retail customers’ assets. These measures ensure consumer protection and responsible growth in the crypto industry.Praising SingaporeGarlinghouse commended Singapore’s regulatory approach, stating, “Under MAS’ leadership, Singapore has developed into one of the leading fintech and digital asset hubs, striking the balance between innovation, consumer protection and responsible growth.” Ripple’s experience in Singapore differs entirely from the ongoing legal battle it has found itself in in the United States with the Securities and Exchange Commission (SEC).Both Ripple and Coinbase have found themselves embroiled in lawsuits with the regulator in the US. In Ripple’s case, the firm and its founders have been accused of unlawfully selling their native cryptocurrency XRP without registering it with the SEC. However, a landmark ruling in July determined that XRP, as a token, may not necessarily be classified as a security.Long spoke to the contrasting experiences the firm has encountered between the United States and Singapore. Long stated:”Being in Singapore a couple weeks ago felt like night and day compared to the US in terms of open dialogue with regulators, and thus being able to build innovative *and* compliant products.”Ripple, along with Coinbase and several other crypto firms, has criticized the lack of regulatory clarity in the US and has even considered relocating operations due to the SEC’s stringent regulatory stance. Notably, Coinbase also recently announced its successful acquisition of a major payment institution license in Singapore, following its in-principle approval obtained about a year ago.

Qatar Criticized for Regulatory Inaction Against Crypto CompaniesThe Qatari Central Bank (QCB) has come under fire from the Financial Action Task Force (FATF) for its lack of efforts in enforcing regulations that prohibit virtual asset service providers.In a report released earlier this week, the global watchdog for money laundering and terrorist financing highlighted the need for Qatar to enhance its capabilities in effectively combating evolving forms of criminal activity, including taking action against virtual asset service providers.Photo by Akbar Nemati on PexelsContinuous improvement neededAlthough acknowledging “substantive improvements” applied to its control system, the FATF report emphasized that Qatar must further improve its understanding of more complex forms of money laundering and terrorist financing.While Qatar has shown positive progress in gathering beneficial ownership information through its unified register, which consolidates data on its citizens, the FATF report emphasized the need for stronger controls to ensure the accuracy and currency of the collected information. The report also criticized Qatar’s authorities for underutilizing their sophisticated analysis capabilities in identifying instances of money laundering.Lack of control despite VASP banDespite the Qatar Financial Centre Regulatory Authority’s (QFCRA) announcement in December 2019 that virtual asset service providers (VASPs) are not allowed within or from the Qatar Financial Centre, the country’s regulatory authority has made little progress in penalizing firms that facilitate or provide crypto asset services.Interestingly, while Qatar has banned virtual asset service providers, it has expressed interest in exploring the potential use cases of a central bank digital currency (CBDC). In June 2022, it was reported that the QCB is in the early stages of developing a CBDC.Sheikh Bandar bin Mohammed bin Saoud Al Thani, the governor of Qatar’s central bank, revealed that the QCB is evaluating the advantages and disadvantages of CBDCs and determining the appropriate technology and platform.As the country explores the potential of a CBDC, it must ensure that its regulatory framework aligns with international standards and best practices. By doing so, Qatar can strike a balance between fostering innovation in the digital currency space and safeguarding its financial system from illicit activities.Global coordinationThrough the Paris-based money-laundering watchdog, and calls from the G7, the European Central Bank, and others to regulate on a global basis, the official response to controlling digital assets and VASPs is becoming more globally coordinated. Central bankers and government officials have learned that decentralized finance has the ability to be borderless.FATF has been active in getting more countries on board. Effective from Thursday, Japan now implements FATF’s “travel rule” with respect to digital assets. That action was taken following a FATF finding that Japan wasn’t following best practice relative to anti-money laundering (AML) measures. Pakistan recently banned cryptocurrencies in an effort that appears to have been motivated by wanting to stay off the FATF’s gray list of non-compliant countries.While Pakistan managed to get itself off that list, the United Arab Emirates found itself on the gray list. The UAE’s Central Bank issued guidance on AML relative to virtual asset companies, in an effort to come back into FATF compliance.It remains to be seen how Qatar will respond to the FATF’s critique and whether it will take concrete actions to address the concerns raised. The international community will be closely monitoring Qatar’s efforts to combat financial crimes in the virtual asset sector and to establish a robust regulatory framework for its future CBDC endeavors.

SBINFT, a Web3 subsidiary of the Japanese financial giant SBI Holdings, is launching a proof-of-concept experiment in collaboration with Obayashi Corporation, a major Japanese construction firm. The initiative, scheduled to run from Feb. 1 to Feb. 28, 2026, aims to test whether non-fungible tokens (NFTs) can drive user engagement and support community development. According to a press release distributed via PR Times, the project will use SBINFT Mits, the company’s NFT marketing platform, within the framework of Minmachi SHOP, a platform operated by Obayashi. Minmachi SHOP allows users to vote on, book, and purchase various goods and experiences—ranging from prepared meals to workshops—hosted in temporarily reserved spaces within offices and nearby buildings.Photo by Andrey Metelev on UnsplashPolygon-based NFTs underpin membership systemThe upcoming experiment introduces a blockchain-based membership system to this ecosystem. Users will create accounts on SBINFT Mits and receive a membership card NFT issued on the Polygon blockchain. This digital asset will serve as a dynamic record of their engagement within the Nakanoshima–Yodoyabashi area. During the trial, users can increase their membership rank through activities like utilizing services offered through Minmachi SHOP and inviting new users to the platform. These interactions are recorded as metadata on the blockchain. The companies aim to evaluate whether this on-chain data—stripped of personally identifiable information—can serve as an objective metric for community development. While specific incentives are still being finalized, higher membership ranks may unlock benefits such as discounts, access to exclusive services, or invitations to restricted events. EXPO2025 legacy program seeds partnershipThe partnership emerged from the MUIC Innovation Co-Creation Program, an initiative organized by MUIC Kansai, a foundation established by Mitsubishi UFJ Financial Group and MUFG Bank. Designed as a hub for the EXPO2025 legacy, the program connects diverse stakeholders to foster social implementation platforms. Obayashi joined the program to explore how Minmachi SHOP could support community initiatives based on local demand. Simultaneously, SBINFT sought partners to test NFTs as incentives for sustained user engagement. Through program discussions, the companies identified NFT-based gamification as a potential mechanism to connect local governments, developers, and residents. The collaboration comes amidst a broader push by SBI Holdings into the digital asset space, even as executives voice concerns over Japan’s regulatory environment. In December, Tomoya Asakura, CEO of SBI Global Asset Management, criticized the slow pace of Japan’s cryptocurrency tax reform. According to DL News, Asakura warned on X that Japan risks falling behind jurisdictions like the U.S., Asia, and the Middle East due to a tax regime that levies up to 55% on crypto profits and prohibits loss carryovers. Although the Financial Services Agency (FSA) has signaled its intent to reclassify crypto as an investment vehicle—potentially lowering the tax rate to a flat 20% in line with traditional assets like stocks—legal amendments are not expected to take effect until 2028, reflecting the time required to revise relevant laws and government ordinances. As Japan’s regulatory framework around crypto continues to evolve, SBI continues to expand its Web3 footprint. Asakura’s comments came after reports that SBI Holdings plans to launch a yen-backed stablecoin in the second quarter of this year through a partnership with Startale. Together with Sony Group, Startale established a joint venture called Sony BSL to launch Soneium, a public Ethereum layer-2 network. However, the conglomerate is also recalibrating its portfolio. In September, Bloomberg reported that SBI Zodia Custody, a joint venture with Standard Chartered’s Zodia Custody, would discontinue operations. The decision to close the venture, which was split 51% to 49% between SBI and Zodia respectively, was described by a Zodia executive as a strategic alignment rather than a withdrawal. An SBI spokesperson confirmed that the dissolution was an effort to generate greater collective impact across the company's digital ecosystem, rather than a retreat from crypto custody services.