Blockchain Experts Gather at KBW 2023 Side Event to Discuss Future Prospects of South Korea

Recent statements by figures well placed in the crypto space and within the Vietnamese government point to increased potential for greater adoption of XRP, the payments solution token first developed by Ripple Labs.Photo by Silver Ringvee on Unsplash‘XRP will be big in Vietnam’Yasin Mobarak is a prominent figure within the XRP community. He’s also the founder and managing member of Dizer Capital, a venture capital and private equity firm that specializes in blockchain, internet of things (IoT) and clean energy projects. On Saturday, Mobarak tweeted out: "$XRP will be big in Vietnam." While Mobarak didn’t comment further, he did include a link to an X social media post published by XRP community member Kenny Nguyen, relaying the news that Vietnamese Finance Minister Ho Duc Phoc had announced that the government is currently working with the Vietnamese Central Bank with a view towards studying and possibly implementing the use of XRP for cross border payments. Central Bank's consideration of XRPVietnam's Central Bank is actively exploring the integration of XRP for cross-border payments, both domestically and internationally. This move aligns with the region's swift adoption of XRP, driven by its promise of faster, cost-effective and secure cross-border payment services. Ripple's recent collaboration with TPB Bank, a major player in Vietnam's banking sector, is set to fortify the entire XRP ecosystem. In September 2023, SBI Remit, a financial service provider and subsidiary company of Japanese financial services conglomerate SBI Group, initiated an XRP-based remittance service covering Southeast Asian countries like the Philippines, Vietnam and Indonesia. SBI has a long-standing partnership in place with Ripple aimed at launching international payment services. As part of that announcement, SBI confirmed the participation of Malaysia-based cross-border payments hub Tranglo in the project. Crypto adoption and growthDespite legal constraints, Vietnam emerged as a leader in crypto adoption in Asia in 2023 by claiming the third position in Chainalysis’ 2023 Global Crypto Adoption rankings. The region, still adapting to the global rise of cryptocurrencies, is undergoing a transformation. While centralized exchanges dominate in various countries, regional preferences vary. In the Philippines, a noteworthy 20% of the population engages with crypto sites for gaming and gambling. In contrast, Vietnam and Pakistan distinguish themselves with citizens favoring peer-to-peer exchanges. This approach allows direct trading between individuals, bypassing large corporations. A report produced by Kyros Ventures and Coin68 in conjunction with Hong Kong’s Animoca Brands last year found that 76% of Vietnamese crypto holders determine their investment choices based upon recommendations from friends and people within their peer group. The collaboration between regulatory bodies, financial institutions, government and crypto projects illustrates the growing integration of digital assets into traditional financial systems. This latest example pertaining to Vietnam and XRP certainly offers the potential of a much greater level of adoption in the region. While activity within Vietnam may be a key consideration for XRP investors and stakeholders in 2024, the potential for a Ripple initial public offering (IPO) is also something they’re likely to be watching out for. Over the course of the past six months, a Ripple IPO has been the subject of speculation. That speculative interest has likely increased following Circle, the issuer of U.S. dollar stablecoin USDC, filing for an IPO last week.  

Five Foreigners Detained in Thai Crypto Scam CrackdownAgainst a background that continues to see the crypto sector plagued by fraud, Thai authorities have taken decisive action by detaining five foreign nationals accused of orchestrating a multi-million dollar crypto scam.Photo by Dan Freeman on UnsplashA $76 million griftThe scam was clever in that it targeted the aspirations of over 3,200 victims, promising them substantial returns through fraudulent investments in gold and cryptos like Tether (USDT). In its wake, the scheme has left countless investors devastated, with some resorting to drastic measures like securing second mortgages on their homes.According to a report on Monday by The Bangkok Post, an English-language publication in Thailand, Thailand’s Cyber Crime Investigation Bureau (CCIB) told the publication on Sunday that it had initiated an extensive investigation into BCH Global Limited, the company at the heart of the scam. The individuals responsible for perpetrating the alleged fraud are four Chinese nationals and one Laotian citizen. They now face a litany of charges including fraud, transnational crime, money laundering, and the falsification of computer documents.The scammers ingeniously enticed their victims with alluring promises of remarkable returns through their crypto investment platform, bchgloballtd.com.International cooperationThailand’s efforts to bring these culprits to justice did not take place in isolation. The Thai authorities forged partnerships with international law enforcement agencies, including the Department of Homeland Security in the United States, which aided the Thai authorities greatly in their investigations. The collective effort ultimately culminated in the arrest of the five suspects and the seizure of properties valued at 585 million baht ($16.5 million) by Thailand’s Anti-Money Laundering Office.Part of a broader problemWhile this particular crypto scam is significant, it is far from an isolated incident within Thailand. It adds to the growing concerns of Thai officials who are becoming increasingly exasperated with the prevalence of cryptocurrency scams within their borders.Thai authorities have even issued a stern warning to Meta, the parent company of Facebook, cautioning that failure to address the issue of deceptive advertisements on its platform may lead to expulsion. The government contends that over 5,300 fraudulent ads on Facebook have victimized more than 200,000 Thai citizens.The overarching Asian region in general appears to be harder hit when it comes to crypto-related scams. In August, a $120 million crypto ponzi scheme was exposed in India. Last month the South Korean Financial Supervisory Service (FSS) issued a press release warning investors to be mindful of fraudulent crypto investment schemes. The very same month, Singaporean authorities uncovered a $1.3 million crypto mining scam.The apprehension of the five suspects responsible for the $76 million crypto scam underscores the pressing need for more stringent regulations and heightened vigilance within the crypto space. Such measures are required if innocent investors are to be protected from falling victim to similar scams in the future.

UAE strengthens regulatory oversight of virtual asset service providersThe Central Bank of the United Arab Emirates (CBUAE) and other relevant authorities in the Middle Eastern country have issued new joint guidance for virtual asset service providers (VASPs) operating within the UAE.Photo by Thomas Drouault on UnsplashPushing back against unlicensed VASPsThese guidelines aim to prevent VASPs from operating without proper licenses in the jurisdiction, demonstrative of the country’s efforts in fighting financial crimes and maintaining the integrity of its financial system.The document outlines the penalties for VASPs operating in the UAE without a valid license. They will face civil and criminal sanctions, including financial penalties against the entity, its owners and senior managers. Moreover, the guidance cautions that licensed financial institutions (LFIs), designated non-financial businesses and professions (DNFBPs) and licensed VASPs that engage with unlicensed VASPs will be subject to law enforcement actions.The National Anti-Money Laundering and Combating Financing of Terrorism and Financing of Illegal Organizations Committee (NAMLCFTC) is the specific entity responsible for having issued the guidance in conjunction with the central bank.VASP ‘red flags’As part of those guidelines, a list of “red flags” for VASPs has been included. Through reliance on these indicators, it’s hoped that bad acting VASPs can be identified by consumers and other industry stakeholders. The document refers to red flags such as the lack of regulatory licensing, no physical presence in the UAE, pressure being applied by a platform to invest quickly and a lack of regulatory disclosure as items to look out for.Otherwise, the guidance encourages stakeholders to be suspicious of unsolicited contact being employed as a means of operation by a platform, the lack of a record of compliance, poor website and communications and the offer of unrealistic promises.Lastly, the document suggests that people should be observant of any illicit use of virtual currency, the use of fake wallets, engagement in terrorist financing and a lack of consumer protection as red flag items.The new guidance instructs all LFIs, DNFBPs and licensed VASPs to report transactions involving suspicious parties. The guidance also emphasizes that information related to unlicensed virtual asset activities can be reported through whistleblowing mechanisms.Exiting FATF ‘grey list’The release of these guidelines is part of an effort by the UAE to be removed from the Financial Action Task Force’s (FATF) “grey list.” The grey list indicates deficiencies in a country’s anti-money laundering (AML) and counter-terrorist financing (CTF) regimes.Improving control mechanisms relative to crypto has been a theme for several countries who are similarly looking to exit the FATF grey list. Last week, it emerged that Turkey is crafting new regulations governing crypto in an effort towards “grey list” removal. Earlier this year, Pakistan announced a renewed ban on cryptocurrency, as part of its efforts to remain off the grey list it had been listed on over an extended period.The UAE was placed on the FATF’s grey list in March 2022 due to AML and CTF deficiencies. However, the country made a commitment to work with the global watchdog to improve its regulatory frameworks in these areas.