SK Securities introduces fractional investment service with three partners

Representatives from various judicial authorities in China, including the country’s Supreme People’s Court, held a seminar recently to discuss crypto-related legal issues. Speculation on easing of crypto regulationsThat event has sparked a wave of speculation within the crypto sector about a potential softening of the official stance in China relative to crypto. The Chinese government banned crypto trading and mining in 2021. However, beyond these speculative takes, no verifiable information has arisen following the seminar to indicate that the Chinese authorities are pivoting and looking to overturn the current bans on crypto trading and crypto mining. A report emerged on Feb. 25 on Chinese social media platform WeChat that the seminar was held on Feb. 23. Among the attendees was the Dean of the Law School of the Renmin University of China, the Dean of the Law and Fintech Institute (China University of Political Science and Law) and officials from the Supreme People’s Court. Photo by Mikhail Pavstyuk on Unsplash‘Virtual currency disposal issues’The research topic, “virtual currency disposal issues,” included consideration not just of the disposal path of virtual currency but also how to establish and improve digital currency supervision going forward. Participants scrutinized both criminal and civil cases that had involved digital assets, with a focus on possible future enforcement strategies. Some attendees highlighted financial security concerns at a national level relative to digital assets, proposing a strengthening of Chinese regulations in order to minimize that risk. One official from Beijing’s Third Intermediate People’s Court outlined past rulings within the Chinese judicial system in crypto-related cases, while suggesting that there was a need for further research to be carried out in order to further refine the approach taken by the courts. Some proposed a need for further research that takes into consideration legal theory together with real-world application relative to the treatment of virtual assets. This view received the backing of Zhai Chao, vice president of the Supreme People’s Court, the highest court within the People’s Republic of China.Establishing legal precedentOver the last few years, Chinese courts have had the opportunity to establish several precedents relative to digital assets. In 2023 the People’s Courts recognized the legal status of cryptocurrency, classifying it as property. Around the same timeframe, the Shanghai Second Intermediate People’s Court published a report which recognized the unique attributes of Bitcoin, with the report also considering the legal treatment of cryptocurrencies. In September of last year, the People’s Court Daily, a state-run media outlet, published an article calling for standardization in terms of the legal treatment of virtual currencies within the court system. Last August a court in the Chinese province of Hubei ruled that investors must bear their own losses from virtual asset investments where such losses were caused by the closure of a crypto exchange. November 2024 saw further crypto-related court precedent in China, with the Shanghai High Court recognizing virtual currency as property, while a court in Shenzhen ruled that an employment contract that included payment of wages using stablecoin was invalid.

Komainu and Crypto Garage partner to bring about institutional crypto adoptionKomainu, the crypto custodian and portfolio company of Japanese financial services conglomerate Nomura, has partnered with Crypto Garage to work towards enabling institutional crypto adoption in Japan.The digital asset custodian made the announcement of the partnership in a press release published to its website on Wednesday. The collaboration builds upon the investment by Crypto Garage's parent company, Digital Garage, in Komainu, aimed at fortifying Komainu’s market presence in Japan. The investment also unites Digital Garage with other prominent Japanese stakeholders in Komainu, including Laser Digital, the digital asset subsidiary of Nomura, alongside the Nomura Research Institute.Photo by Agathe on UnsplashCapitalizing on growing institutional interestCrypto Garage, a company that provides custody, over-the-counter (OTC) trading and settlement services in both the Japanese and international markets, has seen a growing interest from Japanese institutions in digital assets. This has spurred Komainu and Crypto Garage to develop advanced digital asset custody solutions tailored specifically to meet institutional demands, with a strong focus on security and compliance.The partnership harnesses the diverse expertise of both entities, laying the foundation for what both firms hope will be a robust and dependable digital asset management platform throughout the lifecycle of these assets. Speaking to that notion, Crypto Garage CEO Masahito Okuma suggested that the firms share a common vision, adding:“By combining forces, we will leverage our collective expertise to deliver solutions that satisfy the unique needs of Japanese institutions.”Nicolas Bertrand, CEO of Komainu, expressed his optimism regarding the collaboration and the Japanese market, stating:“Japan is a key jurisdiction for digital assets and continues to be an important part of our plans to be the most coveted institutional-grade custodian globally.”This partnership represents a significant leap forward in advancing the institutional crypto landscape in Japan. With the support of established financial entities such as Nomura Holdings Inc. and Digital Garage Inc., this venture is poised to instill confidence among Japanese institutions by demonstrating a strong commitment from the traditional financial sector.This collaboration not only demonstrates the evolving dynamics of institutional crypto services in Japan but also underscores the broader acceptance and integration of digital asset management solutions within traditional financial frameworks. It signifies a matured understanding and approach to digital asset custody and management.Komainu, established as a joint venture between Nomura, CoinShares and Ledger, operates in full compliance with regulatory standards, offering a fusion of traditional financial services with state-of-the-art security measures for institutional custody in the digital age. Earlier this year, the firm entered into a partnership with crypto exchange platform OKX, providing the company with digital asset custody services.In August, Komainu secured a trading license from the Virtual Assets Regulatory Authority (VARA) in Dubai. Meanwhile, Crypto Garage extends its services to crypto asset businesses, both within Japan and internationally, covering custody, over-the-counter (OTC) trading and settlement services for digital assets.

PDAX gears up for trading surge amidst Binance market exitThe Philippine Digital Asset Exchange (PDAX), an order book exchange, is planning to take full advantage of Binance’s regulatory issues in the Philippines, with the expectation of an uptick in trading volume as a direct consequence.Photo by iSawRed on UnsplashMarket opportunityAccording to a Filipino English-language broadsheet publication, The Daily Tribune, PDAX CEO Nichel Gaba sees the exit of Binance, flagged by the Securities and Exchange Commission (SEC) as an unauthorized exchange in the Philippines, as a pivotal moment for local virtual asset service providers (VASPs) to expand their market presence. Gaba envisions that the anticipated migration of traders from Binance could propel the country’s cryptocurrency trading volume to an estimated $6 billion by 2024.Data from the Bangko Sentral ng Pilipinas (BSP) demonstrates that there are currently 17 VASPs in the Philippines, with 10 operational and seven inactive. As one of the operational ones, PDAX is preparing for the expected growth in the local sector.The SEC in the Philippines has been actively working towards imposing a ban on Binance, citing various issues both locally and internationally. Gaba predicts that this development will prompt a substantial number of Filipino cryptocurrency traders to seek alternative, legitimate trading platforms. Gaba stated:“Now that Binance is being banned, there are a lot of users wondering where they can go and the best option for them is to go to a licensed exchange like PDAX. Our strategy as a company is to focus on being the best alternative.”Binance ban countdownAccording to local news outlet BitPinas, the head of the Philippines SEC, Kelvin Lee, clarified that Binance and any other unregistered exchange issued with an advisory have three months before they are banned from the country.Addressing the confusion surrounding the ban during a panel discussion on Wednesday, Lee stated that the ban would be in effect three months from the issuance date of Nov. 29. In that way, time has been allowed for feedback and potential extensions.While the original recommendation was for a shorter transition period, Lee extended it, considering the upcoming Christmas holiday, stating, “Not to make it hard for Filipino investors during that time.”Two additional exchanges bannedIn addition to Binance, Lee mentioned that OctaFX and MiTrade, along with other exchanges that have received advisories for unregistered operations, will also face bans after three months. The local SEC disclosed having a sizable list of unregistered exchanges that will gradually emerge.Responding to criticisms of the ban, given that some users find Binance to be “cheaper” than other registered exchanges, Lee emphasized the importance of compliance costs and consumer protection. He urged local investors to “invest in registered entities” among the 17 VASPs registered in the country that offer fiat-to-crypto services.The BSP-regulated VASPs are expected to process crypto assets worth approximately $3 billion by the end of the year. However, this estimate does not take into account unregulated transactions occurring outside of VASP channels.