Streami Appoints New CEO, Boosting Hopes for Regulatory Crypto Approval in Korea

Chinese Prosecutors Issue Warning on NFTsIn recent days, China’s top procuratorial agency, the Supreme People’s Procuratorate of China, issued a warning alongside some guidelines on non-fungible tokens (NFTs).The Supreme People’s Procuratorate is the highest office in China charged with the mandate of upholding legal integrity, safeguarding citizens’ rights, and where necessary, conducting criminal investigations. In a statement published on Monday, the agency set out an advisory, together with additional recommendations, pertaining to NFTs.Photo by Markus Winkler on PexelsNFT status in ChinaWhile all and sundry are aware of a multi-year crack-down by the Chinese authorities on crypto in recent times, exemplified by a ban on crypto trading and the operation of crypto mining facilities within the country’s borders, the status of NFTs has been discussed to a much lesser degree.NFTs remain legal within the country. When the crypto trading ban came into play in 2021, much of the local industry connected with that trading activity disappeared. However, in its place, a newly emergent trend came to the fore in the form of NFTs. With cryptocurrencies perceived as being high risk and sanctioned by the authorities, attention turned to NFTs and there has been a surge of adoption of the digital collectibles within China as a consequence.NFT risksThe procuratorial agency highlighted a number of attributes as well as risks in relation to NFTs in the report that it published. The agency finds the issue of ownership of NFTs as a troublesome one. It cites the fact that NFTs can be replicated and distributed at will on this basis as being particularly problematic. The legitimacy of the right source of the work itself is the decisive factor for the healthy and orderly development of digital works NFT transactions,” it states.It appears that the agency, like many in traditional professional circles before them, have a difficulty recognizing the model of asset ownership that NFTs incorporate. That ownership is not defined by civil law or in accordance with centralized systems but by simply the possession of the requisite private key pertaining to a given NFT within a decentralized system.Blockchain, not cryptoThe agency acknowledged that NFTs do present a novel application of blockchain technology. This is not surprising as while there might be an ongoing clampdown on decentralized cryptocurrencies in China, officials at a national level and in numerous instances within regional administrations, are demonstrating a strategy of leveraging blockchain technology for the betterment of the Chinese economy in the future.Public prosecutor Wang Xia-fen, one of the authors of the report, stated: “It’s widely recognized that digital collectibles have the potential to protect intellectual property rights, boost content creation and enrich the digital economy.” Wang encouraged public prosecutors to “find the distinction between real innovation and criminal activities” where NFTs are concerned.The upshot of its report though, is that the procuratorial agency is uncomfortable with the similarity of many of the attributes of NFTs when compared with decentralized cryptocurrencies. It issued a warning on that basis, emphasizing a need for risk assessment to be carried out and further consideration of the legal risks that are implicated.

Kuwait Implements Full Ban on Crypto ActivitiesIn a significant move to combat money laundering and terrorist financing, Kuwait has taken a decisive step by announcing a complete ban on all crypto-related activities.Photo by Jan Dommerholt on Unsplash“No legal status”According to a circular issued by the Capital Markets Authority (CMA), Kuwait’s top financial regulator, earlier this week, cryptocurrencies are deemed to have “no legal status” and lack the support of any government or any asset. As a result, the prices of these digital assets are vulnerable to speculative swings, exposing investors to potential substantial losses. Consequently, the CMA asserts that engaging in crypto activities can lead to adverse consequences and financial risks for individuals and businesses alike.The ban extends beyond trading and mining. It also prohibits public companies from offering any cryptocurrency-related services. The CMA emphasized that it has never granted approval for crypto services in the past, and this outright ban reinforces the country’s commitment to curbing illicit financial activities facilitated by cryptocurrencies.Aligning with FATFThe decision comes in the wake of Kuwait’s determination to align with the Financial Action Task Force’s (FATF) global requirements for handling crypto assets. The country is attempting to demonstrate its compliance with international anti-money laundering guidelines by clamping down on digital assets.Kuwait’s approach towards cryptocurrencies diverges significantly from other Gulf states that have embraced the nascent industry with more openness. The likes of the United Arab Emirates (UAE), Saudi Arabia, and Bahrain have previously engaged with crypto assets in various ways.For example, Bahrain granted approval to global crypto exchange platform Binance to provide digital asset services within the country. It’s keen to embrace digital assets as it pivots away from an oil-based economy. The Kingdom recently welcomed plans by Singapore-based private equity firm Whampoa Group to establish a crypto-friendly digital bank there.Meanwhile, Saudi Arabia’s sovereign wealth fund has also invested in several US-based venture capital funds which are focused on crypto and blockchain technologies.Dubai, in particular, has been actively working on establishing a regulatory framework for digital assets, aiming to position itself as a digital hub in the region. The UAE as a whole has recognized crypto assets as securities for several years, fostering a favorable environment for crypto businesses.CriticismNews of the ban also provoked criticism, including commentary from Alex Gladstein, Chief Strategy Officer with the Human Rights Foundation. Gladstein, taking to Twitter, stated: “ Not surprising. I expect all authoritarian regimes (especially gulf tyrannies like the UAE and Saudi Arabia) to follow in Kuwait’s footsteps and eventually pass severe restrictions on citizen use of Bitcoin.” While the UAE trends in the opposite direction, Gladstein is not optimistic about the free use of decentralized cryptocurrencies in the UAE over the longer term.As the global crypto landscape continues to evolve, each country in the Gulf region is adopting unique approaches to address the opportunities and challenges posed by digital assets. While there may be opposition to the technology, decentralized digital assets will benefit from jurisdictional arbitrage in efforts to get this innovation rolled out for the benefit of ordinary people around the world.

Fasset becomes sixth crypto firm to secure VARA licenseFasset FZE, a digital asset brokerage based in Dubai in the United Arab Emirates (UAE), has successfully obtained a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA).This achievement, evidenced by a listing on VARA’s website on Wednesday, marks the culmination of VARA’s approval process, granting Fasset the authorization to provide broker-dealer services through its Web3-based financial services platform to a broad spectrum of clients, including both retail and institutional investors.Fasset, with a focus on practical applications of digital assets underpinned by blockchain technology, offers a range of services encompassing stable cryptocurrencies, tokenized commodities, precious metals and fiat currencies.Photo by Hongbin on UnsplashInvestcorp fundingSimultaneous with securing the VARA license, Fasset announced an upcoming investment from global investment manager Investcorp ahead of its Series B funding round, although the exact funding amount remains undisclosed. In 2022 the firm raised $22 million in Series A funding. With plans for a beta launch scheduled for this month and a full roll-out in January 2024, the startup is attempting to make an impact on the market.Mohammad Raafi Hossain, the CEO of Fasset, underscored the strategic importance of the VARA license in advancing the company’s mission to facilitate access to digital assets in emerging markets. In a post published on Thursday via the company’s LinkedIn account, Hossain outlined that this approval plays a crucial role in Fasset’s global licensing strategy, enabling seamless asset transfers across high-traffic remittance corridors, particularly from the Gulf Cooperation Council countries to Asia.Targeting emerging marketsHossain remarked:“Fasset’s focus on enabling people across emerging markets to access to digital assets is bolstered with this permission from VARA in UAE. As one of the most progressive regulatory frameworks in the world, the VARA approval is a crucial link in our global licensing portfolio, connecting places like Indonesia, Malaysia, Bangladesh, Pakistan, and Turkiye through blockchain.”The countries Hossain mentioned are precisely the markets that the firm is attempting to target. In August the firm launched an app which allows users to buy, sell and swap various cryptocurrencies with those markets in mind. Earlier in the year, Fasset had partnered with Mastercard in an effort to expand its service and product offering in IndonesiaWorking towards compliant frameworksFasset has been proactive in engaging with regulatory bodies, dating back to its establishment in 2019. The fledgling firm is now reaping the benefits of following that approach of regulatory compliance. The founding team’s prior collaboration with the UAE Prime Minister’s Office in crypto regulation laid the groundwork for compliant frameworks, something that is seen by officials as essential to the UAE’s technological progress.Dubai’s emergence as a key player in the cryptocurrency industry is evident, with an increasing number of crypto companies setting their sights on the Middle East, particularly Dubai, as a potential hub. In the month of November alone, five distinct entities, including CFI, GCEX, HEX, Crypto.com and Ripple, secured authorization from Dubai for crypto operations, showcasing the growing prominence of the region.