Indian PM Narendra Modi Calls for Global Crypto Regulatory Framework

Seychelles-headquartered global crypto exchange OKX outlined on Nov. 18 that it will offer instant, zero-fee Singaporean dollar (SGD) deposits and withdrawals into and out of the exchange platform for customers resident in Singapore.Photo by Peter Nguyen on UnsplashDBS partnershipIn a press release published by GlobeNewswire on behalf of OKX, the company outlined that it has been in a position to enable this feature for its Singapore-based customers due to a collaboration with Singapore’s largest bank, DBS Bank. OKX Singapore CEO Gracie Lin said that “working with DBS to provide payment rail infrastructure in Singapore provides customers with secure and seamless access to digital assets.” As DBS is one of 27 banks that participate in PayNow, a real-time payment system that falls under the Fast and Secure Transfers (FAST) service in Singapore, OKX customers who are also customers of a bank that participates in the PayNow scheme, can effect those SGD deposits and withdrawals in real time. Lin added that OKX is working towards the addition of more features in an effort to further enhance the customer experience. The new offering takes OKX a step further towards integrating with the local traditional finance system (TradFi).  Singpass integrationAdditionally, the exchange has also integrated Singpass verification. Singpass is a digital identity system that enables Singaporean residents to access private sector and government services online. Back in March, the company acquired in-principle approval (IPA) from the Monetary Authority of Singapore (MAS) in respect of a Major Payments Institution (MPI) license. Continuing that shift towards regulatory compliance, it followed up with the acquisition of a full MPI license from MAS in September. The company is now one of 29 crypto sector firms to have been licensed by MAS in Singapore. While a particular effort has been made in Singapore, OKX has been making similar in-roads elsewhere. Last month, it launched its service in the United Arab Emirates (UAE), having received full licensing from Dubai’s Virtual Assets Regulatory Authority (VARA). Making further progress in October, OKX partnered with UK-headquartered multinational bank Standard Chartered for institutional crypto custody. Both Singapore and the UAE are seen by the company to be strategic crypto hubs. However, its efforts in expanding its offering globally has also taken it into other markets. In February OKX launched OKX TR, a specialized crypto exchange platform catering to the specific needs of the Turkish market. In an emailed response to Reuters, DBS Bank’s Head of Digital Assets, Evy Theunis, commented on its partnership with OKX:”DBS has been actively fostering a responsible and innovative digital asset ecosystem in Singapore for several years now. Working with OKX deepens the bank's wide-ranging involvement in this space." DBS has been following its own path as a pioneering TradFi entity getting further involved in cryptocurrency, blockchain and tokenization. Last month it launched DBS Token Services for institutions, integrating tokenization and smart contracting capabilities within its existing conventional services. 

Gulf Binance Secures Thai Digital Asset LicenseBinance, one of the world’s leading cryptocurrency exchanges, has secured a digital asset operator license in Thailand, paving the way for the launch of a new crypto exchange and broker. The license, granted by the Ministry of Finance of Thailand and overseen by the Southeast Asian country’s Securities and Exchange Commission (SEC), ensures that the upcoming platform will operate in compliance with regulatory requirements.Photo by Markus Winkler on UnsplashLicense awardThe license was awarded to Gulf Binance, a joint venture between Binance and Gulf Innova Co., Ltd., a subsidiary of Gulf Energy Development PCL. It marks a significant milestone in Binance’s expansion efforts. The partnership was initiated through a memorandum of understanding signed in January 2022, as both parties recognized the potential of establishing a digital asset exchange in Thailand.Richard Teng, the head of Asia, Europe, and MENA at Binance commented on the development: “By harnessing Binance’s expertise together with Gulf’s established local presence and network, Gulf Binance aims to showcase the full potential of blockchain technology to meet the needs of Thai users. Local users can expect access to a trusted and regulated service that prioritizes user security alongside compliance with local regulations.”Combined expertiseGulf Innova, as a prominent player in the Thai business landscape, brings extensive expertise and experience in the digital asset trading sector to the joint venture. The conglomerate, headed by billionaire Sarath Ratanavadi, operates in various industries, including energy production, telecommunications, and digital businesses.By combining Binance’s unparalleled growth and expertise in the digital asset space with Gulf’s established presence and knowledge in Thailand, the partnership aims to create a powerful synergy that drives innovation, fosters growth, and provides exceptional value to users in the digital asset ecosystem.Q4 launchThe new crypto exchange is expected to commence operations in the fourth quarter of 2023, although further details about the platform will be disclosed closer to the launch.Often criticized for its opaque structure, Binance is showing renewed commitment to transparency and regulatory compliance. As regulatory frameworks are put in place in varying jurisdictions, global crypto businesses are having to change corporate structures in order to meet these changing requirements. That’s evidenced by Binance’s Thai joint venture, its launch of a separate corporate entity in the form of Binance Japan and a similar move by crypto exchange BitMEX in Hong Kong.Thailand has emerged as a significant cryptocurrency hub in Southeast Asia, with its capital city, Bangkok, ranked 10th globally in The Crypto Readiness Index published by Recap, a cryptocurrency tax software company. Despite the ban on cryptocurrencies as a payment method, Thailand continues to flourish as a hub for trading and investment activities in the crypto space.That ban on cryptocurrency payments, implemented by the SEC in April 2022, aimed to safeguard the stability of the financial system and mitigate potential risks to the economy. The SEC identified price volatility, cyber theft, and personal data leakage as concerns associated with cryptocurrencies. However, the regulatory measures did not impede trading or investment activities, allowing the crypto industry to thrive.Chainalysis, a leading blockchain analysis company, ranked Thailand 8th in its Global Crypto Adoption Index for 2022, surpassing countries like Russia, China, Nigeria, Turkey, Argentina, and the UK. This recognition highlights Thailand’s progressive stance toward digital assets and its growing adoption within the country.

Singapore-regulated Telcoin, a developer of financial applications for mobile users, has successfully restored user balances following an exploit that saw approximately $1.2 million worth of funds transferred from affected accounts.Photo by Martin Sanchez on UnsplashUnauthorized withdrawal of assetsThe incident, which occurred in late December, was attributed to an error in the interaction between Telcoin's digital wallet and a proxy contract on Polygon. In a blog post which was published on Wednesday, the company shared a full post-mortem analysis report which it commissioned Hong Kong-based blockchain security firm BlockSec to carry out, relative to the exploit. The fault in the proxy contract's implementation caused a technical conflict that allowed for the unauthorized withdrawal of assets. Fortunately, no admin keys were compromised, ensuring that the broader Telcoin ecosystem remained unaffected. In response to the security breach, Telcoin took action by immediately freezing the use of its application as a precautionary measure. The team initiated an investigation and committed to releasing updates promptly to address the issue and restore normalcy. The identified address associated with the exploit was 0x35d2775e5f95596509951b140d68fc5b9185ff98. TEL token freefallDespite the initial market turbulence, with the price of the Telcoin (TEL) token plummeting, the cryptocurrency has demonstrated resilience. On Dec. 25, TEL fell from a peak price of $0.00235146 to $0.00122535, representing a 48% decrease. At the time of writing, the price has slightly rebounded, trading at $0.001335. Nevertheless, it's still down 40% over the course of the past month's trading. In a social media direct message to CoinDesk recently, Telcoin's founder and CEO, Paul Neuner, expressed pride in how his team responded to the issue, stating: “Making the decision to preemptively restore affected user wallets from our company treasury was a no-brainer, and I’m proud of the team for making that happen in record time.” Regulatory standingTelcoin's regulatory standing played a crucial role in instilling confidence during this challenging time. Although headquartered in Tokyo, the company is regulated in Singapore as a Major Payment Institution (MPI) by the Monetary Authority of Singapore (MAS). The firm is also registered and regulated in other global markets, including Canada and Australia. Telcoin maintains offices in Singapore, Tokyo, Dubai and Los Angeles. The company had been active in trying to shape regulation in the United States in 2023, with company executives having made repeated visits to Washington D.C. to meet with Financial Services Committee members and staffers on Capitol Hill. In April of last year, the company extended its service offering to the European market, starting out initially in Lithuania.It appears that the restoration of Telcoin's application services led to a significant boost in user confidence. The company reported a 400% increase in deposits compared to the previous month. Users responded favorably to Telcoin's swift resolution of the security breach, with a ratio of $3.60 being deposited for every $1 withdrawn in the first day since the service restoration. Telcoin's measures, collaboration with security experts and the surge in user deposits appear to have resulted in a resilient recovery. The saga highlights the importance of prompt and transparent responses in maintaining trust in the face of crypto security issues.