Singapore takes gold on-chain as tokenized assets gain ground

U.S. authorities seize crypto tied to Asian ‘pig butchering’ scamThe United States government has taken control of digital currency valued at approximately half a million dollars from an account linked to a Chinese individual implicated in a Reuters investigation into a crypto-investment fraud originating from Southeast Asia.Photo by Growtika on Unsplash‘Pig butchering’According to Reuters, U.S. officials have disclosed that the seized assets are connected to a crypto-investment scam known as “pig butchering,” where fraudsters manipulate unsuspecting individuals they encounter online, convincing them to invest in fraudulent crypto schemes.The unsuspecting scam victim (the pig) is conned by scammers into handing over money with the promise of an outsized return. Once funds have been handed over, the vast majority of victims are unable to recover their money.According to a document filed by U.S. authorities in federal court in Massachusetts, the U.S. Secret Service confiscated the crypto in June from an account registered to Wang Yicheng. At the time of the seizure, the digital currency was valued at around $500,000. The funds were traced back to a victim in Massachusetts who had initially fallen prey to the scam.In a recent Reuters article, Wang was identified as a businessman who cultivated relationships with members of Thailand’s law enforcement and political elite while serving as the vice president of a Chinese trade group based in Bangkok. The report outlined that a crypto account in Wang’s name had received over $90 million in recent years, with at least $9.1 million linked to a crypto wallet associated with pig-butchering scams, as reported by U.S. blockchain analysis firm TRM Labs.Multi-million dollar scamsOne case highlighted in the report involved a California man who was scammed out of approximately $2.7 million, funds that were channeled into the account in Wang’s name. Another example cited in the U.S. court filing detailed a resident of Cambridge, Massachusetts, who was allegedly defrauded of about $478,000 worth of crypto, which ended up in two crypto accounts, one of which belonged to Wang.The U.S. court filing, part of a civil forfeiture action, seeks court approval to take possession of assets linked to the alleged crime. While no criminal charges have been filed, Acting U.S. Attorney Joshua Levy emphasized the use of civil forfeitures to recover funds stolen through crypto fraud schemes, highlighting law enforcement’s adaptability in the face of cryptocurrency transactions’ seemingly elusive nature.Crypto scammers sanctionedIn a related development, authorities in the United Kingdom reported on Friday that individuals operating pig butchering crypto scams in Myanmar, Cambodia and Laos had been sanctioned, in a move coordinated with their counterparts in the U.S. and Canada, alongside the United Nations Human Rights Organization.Many of these cases are understood to involve human trafficking, where individuals are illegally detained and forced to work on pig butchering crypto scams.

Binance and Gulf Energy launch digital asset exchange in ThailandThe world’s largest cryptocurrency exchange, Binance, has teamed up with Gulf Energy Development, a leading energy company in Thailand, to operate a digital asset exchange in the country.Photo by Than Diep on UnsplashInvitation-only launchThe new platform, Binance.th, aims to capture the growing demand for crypto services in Southeast Asia. Binance.th, which is currently in its beta testing phase, is expected to open to the public in early 2024. A filing on Wednesday by Gulf to the Thai stock exchange demonstrates that the platform has received approval from the Thai Securities and Exchange Commission to offer exchange and brokerage services for cryptocurrencies and digital tokens. The filing states:“Gulf Binance’s digital asset platform will provide digital asset exchange and digital asset broker services for both cryptocurrencies and digital tokens, prioritizing security and compliance with SEC regulations.”The platform is initially available by invitation only, and the plan is to eventually open the exchange to the general public. It’s understood that the platform will strive to provide a “globally standardized” service that will enhance the level of service in Thailand and promote the development of the country’s blockchain ecosystem.Market opportunityBinance.th enters the Thai crypto market at a time when the local leader, Bitkub, holds a dominant share of 75.4%. Bitkub benefited from the global crypto market downturn in 2022, which affected its competitors such as FTX and Zipmex.Although it has extended market share during the downturn and as a consequence of the demise of other platforms, Bitkub has also struggled with market conditions. In July its parent company Bitkub Capital Group, reduced headcount by six percent. Bitkub recorded $28.6 billion in trading volume last year, out of the total $37.94 billion generated by the top four Thai exchanges.Binance.th hopes to challenge Bitkub’s position by leveraging Binance’s global reputation and expertise in the crypto industry.Legal woesThe launch of Binance.th comes amid Binance’s legal and regulatory troubles in the U.S. and Europe. In September, the U.S. Securities and Exchange Commission (SEC) sued Binance, its U.S. subsidiary, and its founder Changpeng Zhao (CZ) for allegedly listing unregistered securities in the form of cryptocurrencies.In June, the SEC also accused CZ and Binance of illegally marketing its international platform to U.S. customers.Binance has been trying to improve its compliance and governance standards in response to regulatory scrutiny. The company has hired former regulators and executives from the traditional finance sector to lead its operations in various regions. Binance has also applied for licenses and registrations in several jurisdictions, such as the U.K., Singapore and Japan.The origins of this deal stem from a memorandum of understanding (MOU) signed between Binance and Gulf Energy in January 2022. The joint venture business which emerged acquired a digital operator license in Thailand in May of this year.By expanding its presence in Southeast Asia, Binance hopes to tap into the potential of the emerging crypto markets and diversify its revenue streams. Binance.th also marks the first bank-backed crypto exchange in Thailand, as Gulf Energy Development is partly owned by the state-owned Krung Thai Bank.

According to a report by Nikkei Asia, Kasikornbank (KBank), Thailand’s second-largest bank, has entered into a partnership with Bangkok-based firm Orbix Technology and Singapore’s StraitsX to roll out a cross-border payments solution based on the use of stablecoins. StraitsX provides payments infrastructure for digital assets in Southeast Asia. It also issues XSGD, XUSD and XIDR, stablecoins that are pegged to the Singapore dollar, the U.S. dollar and the Indonesian Rupiah. Orbix Technology contributes towards the collaboration by providing blockchain infrastructure, in this case, its Quarix blockchain, which was developed to support transactions in both foreign currencies and baht, convert real-world assets into digital tokens and enable real-world identity confirmation of the blockchain user.Photo by Mathew Schwartz on UnsplashProject Carina The groundwork for this latest collaboration was accomplished through a partnership between KBank and American investment bank JPMorgan’s JPM Coin (now known as Kinexys Digital Payments) in April. Known as Project Carina, the collaboration explored wholesale cross-border payments using Q-money, KBank’s digital Thai baht, which runs on Orbix Technology’s Quarix blockchain and forms part of Thailand’s regulatory sandbox. The objective of Project Carina was to effect the transfer of Thai baht, using Q-money, to a U.S. dollar-denominated bank account, via Kinexys Digital Payments. Using that process, a cross-border multi-currency transfer could be effected efficiently in real time. Spending Thai baht in Singapore In part, building upon that earlier project, this latest collaboration, which commenced at the end of November, brings StraitsX into the fold alongside KBank and Orbix. The service targets Thai tourists visiting Singapore, enabling them to spend their Thai baht-based Q-money at retail outlets in Singapore. Thai visitors account for 2.4% of arrivals to the city-state each year. Many retail stores in Singapore now enable the use of payment systems like PayNow, a real-time payment service offered by a group of Singaporean banks; GrabPay, a payments wallet that features as part of the Grab super-app; and Alipay+, another cross-border mobile payments system. StraitsX has collaborated with these payment systems, opening up access to this latest offering led by KBank. In November, StraitsX added access to the GrabPay and Alipay+ systems. Users of the Q-money app can scan the codes generated via these payment systems, enabling the user to pay in Thai baht for the item they are purchasing priced in Singaporean dollars. Effectively, the system enables and exchange and conversion of digital baht for the StraitsX XSGD Singaporean dollar stablecoin. The three companies showcased their blockchain-based cross-border payment innovation at the Singapore FinTech Festival last month. At the time, Orbix Technology Managing Director Yarnvith Raksri stated:”Quarix has played a significant role in driving the Q-money by KBank app and integrating it with the StraitsX system to allow seamless cross-border payments via blockchain, making them as convenient as domestic transactions.” KBank competitor Siam Commercial Bank (SCB), Thailand’s oldest bank, announced in October that it was partnering with fintech firm Lightnet to launch a stablecoin-based remittance service.