Thailand greenlights U.S. spot Bitcoin ETF access

Nexo DWTC, the Dubai arm of the well-known crypto lender, has obtained initial licensing approval from Dubai’s Virtual Assets Regulatory Authority (VARA), marking a significant milestone in the company’s growth and development.Photo by Carlos Alberto Gómez Iñiguez on UnsplashLending, borrowing and broker-dealer activitiesThe approval grants Nexo the authorization to engage in virtual asset lending and borrowing, management and investment relative to digital assets, together with broker-dealer activities within the region. Commenting on the development, Nexo Managing Partner, CFO and Co-Founder Kalin Metodiev, stated:”Nexo is enthusiastic about the pursuit of new market strategies aligned with the transformative guidance of Dubai's Virtual Asset Regulatory Authority." The United Arab Emirates (UAE) has played a pivotal role in promoting the region as a nucleus for global innovation and governance. Dubai's early adoption of blockchain strategies in 2016 and the establishment of VARA in 2022 underscore its commitment to emerging as a global epicenter for digital asset innovation. This initiative mirrors the city's longstanding influence in the traditional finance sector. Seven million worldwide usersFor Nexo, which caters to over 7 million users worldwide, the Dubai market represents a substantial opportunity for regional expansion and the delivery of premium services. Nexo is cementing its position as a leading digital assets institution. However, it hasn’t always been easy for the company. Amidst the broader cryptocurrency downturn post the 2021 market peak, Nexo faced significant challenges. In 2022 prominent crypto lenders faced bankruptcy, drawing heightened scrutiny towards Nexo given its involvement in similar business activities. This prompted speculations about the platform's sustainability. Additionally, Nexo grappled with regulatory pressures, notably agreeing to a $45 million settlement with the U.S. Securities and Exchange Commission (SEC) for failure to register the offer and sale of its Earn Interest Product (EIP). It also faced money laundering charges in its home base of Bulgaria. These charges were later dropped. Subsequently, the company pursued $3 billion in damages from the Bulgarian state, refuting allegations that brought disrepute to the company following an investigation that found no evidence against it. Reflective of a more positive outlook more recently, Nexo Co-Founder Antoni Trenchev took to CNBC on March 1, offering his prediction that Bitcoin is on target for a $100,000 unit price in the not-too-distant future. VARA, established in March 2022 following the enactment of Law No.4 of 2022, assumes the responsibility of regulating, supervising and overseeing virtual assets and virtual asset activities across all zones in the Emirate of Dubai, excluding the Dubai International Financial Centre. VARA's pivotal role in crafting an advanced legal framework is geared towards safeguarding investors, setting international standards for virtual asset industry governance and bolstering the vision of a borderless economy. Nexo's attainment of initial approval from VARA signifies a major breakthrough in its expansion efforts, underscoring its commitment to compliance and innovation in the digital asset space. This achievement positions the company as one of the few crypto lenders making inroads into the influential Dubai market. 

A regulatory divide regarding the digital asset sector is emerging across Asia. While China is moving to strengthen its prohibition on cryptocurrency operations to ensure financial stability, Central Asian states such as Kazakhstan and Turkmenistan are increasingly formalizing frameworks to integrate and regulate the industry.Photo by Road Ahead on UnsplashChina cites renewed crypto speculationAccording to Reuters, the People’s Bank of China (PBOC) has reaffirmed its prohibition on business activities involving digital assets, citing a renewed wave of speculation as a complication in managing financial risks. At a Nov. 28 meeting on crypto regulation, the central bank reiterated that commercial activity involving cryptocurrencies remains illegal. PBOC officials stated that enforcement against unlawful financial operations tied to cryptocurrencies would be intensified to safeguard economic stability. The central bank identified stablecoins as a primary concern, noting that they fail to meet customer identification standards and broader anti-money laundering (AML) requirements. Officials warned that these assets could create vulnerabilities to fraud, money laundering, and unregulated cross-border capital flows. Kazakhstan mulls $300M crypto moveIn contrast to Beijing’s elevated oversight, Kazakhstan is exploring the integration of digital assets into its financial reserves. According to BeInCrypto, National Bank Chairman Timur Suleimenov indicated on Nov. 28 that the monetary authority is considering an allocation of up to $300 million into crypto assets. However, he clarified that deploying the full amount is unlikely. Suleimenov explained that any potential investment would be drawn from the central bank’s gold and foreign-exchange reserves rather than the National Fund. He added that the National Bank of Kazakhstan intends to wait for market conditions to stabilize, citing recent volatility as a factor making the timing of such an investment uncertain. The latest development comes after Bloomberg Law reported last month that the country is preparing to launch a crypto reserve fund valued between $500 million and $1 billion as early as next year. This proposed fund is expected to target exchange-traded products and industry-related companies rather than direct crypto purchases, with capital potentially sourced from repatriated assets and mining proceeds. Simultaneously, the government is advancing physical infrastructure for the sector. In May, President Kassym-Jomart Tokayev unveiled plans for a "CryptoCity" pilot zone in the Alatau development north of Almaty. Under this government-approved sandbox program, authorities are testing blockchain-based tools for taxation, investment, and decentralized identity systems, with the aim of positioning Kazakhstan as a regional hub for innovation. Turkmenistan to launch licensing rulesFurther deepening the regional trend toward adoption, Turkmenistan has moved to establish a formal legal infrastructure for the sector.  Another Reuters report said the country recently passed legislation to legalize and regulate digital assets, which President Serdar Berdymukhamedov has signed into law. Scheduled to take effect on Jan. 1, the legislation creates a licensing regime for crypto exchanges and mining operations. A government spokesperson said the law spells out the legal and economic status of virtual assets, covering their creation, storage, circulation, and other functions, and aims to boost digitalization and draw foreign investment. Despite their differing approaches, the three countries reflect a shared recognition of digital assets’ growing relevance in global finance. China continues to view cryptocurrencies as a source of systemic risk, while Kazakhstan and Turkmenistan are testing whether regulation, licensing, and selective investment can deliver economic gains without compromising stability. Together, these diverging paths underscore a broader debate over whether engagement or exclusion offers a more resilient long-term model. 

Korea’s Code Launches System to Detect Blacklisted Crypto WalletsCode, the only Travel Rule solution provider in South Korea, announced on Monday the launch of Protector, a detection system designed to identify blacklisted wallets in the cryptocurrency space. Established by a collaboration between three major Korean cryptocurrency exchanges (Bithumb, Coinone, and Korbit), Code aims to enhance security and compliance in the industry.Photo by Mariia Shalabaieva on UnsplashTravel RuleThe Travel Rule is a regulation that requires financial institutions to share information with each other about transactions to ensure their legitimacy and to prevent money laundering, terrorist financing, and other illicit activities.Wallet risk assessmentsThe Protector system of Code allows its members to assess risks associated with external wallets and take appropriate measures during the withdrawal and deposit of virtual assets. Risks will be categorized into three levels, represented by the colors white, gray, and black. A white designation signifies a normal status, gray serves as a warning, and black indicates a danger.Not only does Protector enable members to manage risks linked to crypto wallets more effectively, it also allows them to monitor the management status of Code’s Travel Rule.Streamlining regulatory complianceCode CEO Lee Sung-mi stated that the recently launched Protector system is designed to streamline regulatory compliance for Code members. By utilizing Protector, members can concentrate on their projects without being burdened by compliance concerns. Lee also emphasized that Code is committed to expanding its range of services for members in the future.The detection system was developed and is operated in partnership with Uppsala Security, a Singapore-based cybersecurity company specializing in blockchain-powered solutions.