SynFutures Completes Series B Funding Round and V3 Launch

Crypto.com, the Singapore-based cryptocurrency exchange and digital asset brokerage, announced that it introduced an institutional trading platform in the United States. In a statement published on its website on Jan. 21, the company outlined that U.S. institutional and advanced traders can now access the new platform. The firm believes that the offering complements its retail-facing Crypto.com app., which currently serves the U.S. market.Photo by Joshua Hoehne on Unsplash480 trading pairsThe institutional-grade platform will enable access to over 300 cryptocurrencies and 480 trading pairs. The product is likely to appeal to a similar market segment as those clients targeted by the Crypto.com Custody Trust Company, a digital asset custodian, which was established last month. At that time, Crypto.com co-founder and CEO Kris Marszalek said that launching the digital asset custodian was the latest step on the company’s product roadmap, with a view towards building a business and a market presence within the U.S. and Canada.  Responding to this latest product offering, Marszalek stated: “We took the time to build the best possible product for institutional and advanced users around the world and we are now incredibly excited to fully introduce it in the market we continue to be bullish about – the U.S.” Marszalek added that Crypto.com has invested heavily in the exchange’s technological capabilities and banking rails. The Crypto.com CEO believes that this investment has resulted in exponential global growth for the company, with the platform becoming a leading U.S. dollar-supporting exchange. Regulatory tailwindsCrypto.com’s bullishness regarding the U.S. market currently stands in contrast with developments in June 2023 when the company decided to shut down its institutional exchange offering, citing limited demand amid a bleak market landscape for crypto in the United States.  At the time, the company was one of several to look towards opportunities outside of the U.S. Shortly afterwards, Crypto.com obtained a crypto trading license in Dubai. Competitors Gemini and Coinbase followed a similar strategy, looking at growth opportunities in the Middle East and Asia. It’s clear that a regulatory crackdown in the U.S. at that time curbed the expansion plans of many cryptocurrency platforms. Many industry experts are of the belief that there will be a pro-crypto Securities and Exchange Commission (SEC) in the U.S. as part of the newly seated Trump administration.  Regulatory clarity is necessary for institutional involvement in the digital assets sector. Last week, Mark Uyeda, Acting Chairman of the SEC, announced the formation of a crypto task force with the objective of creating a clear regulatory framework for crypto. The U.S. is home to the world’s largest capital markets. A report produced by New York-headquartered blockchain analysis firm Chainalysis late last year identified that 70% of North American crypto transactions involved transfers that had a value in excess of $1 million, pointing to the level of institutional activity within that market.  Earlier this month, Crypto.com added the ability for U.S. platform users to trade stocks and exchange-traded funds (ETFs).

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.

Busan Blockchain Special Zone Gears Up with Expert-Led Operations CommitteeGovernment officials and various executives from financial enterprises have been appointed as members of the operations committee of the Busan Blockchain Regulation Free Special Zone project, according to local news outlet Etoday on Tuesday. This project is geared towards growing the city as a blockchain hub and nurturing blockchain-related businesses in the special zone that are exempt from regulatory oversight. The operations committee will be responsible for overseeing the designated area, fostering new businesses and facilitating the development of Busan’s blockchain industry.Photo by Maicon Fonseca Zanco on PixabayDiverse lineup of expertsA total of 25 members have been appointed to the committee, including two ex-officio members — Lee Sung-kwon, Deputy Mayor of Busan for Economic Affairs, and Son Sung-eun, Policy Advisor for Financial Startups in Busan. Other members include Kim Sang-min, the leader of Busan’s initiative to establish its own digital asset exchange; Lee Keun-ju, President of the Korea Fintech Industry Association; and Jin Hyeong-gu, Vice President of KakaoPay, along with other relevant personnel and academic experts. Notably, the only representative affiliated with a cryptocurrency exchange is Seo Byung-yoon, Director of Bithumb’s Economic Research Institute.The participation of Jin Hyeong-gu, Vice President of KakaoPay, is also noteworthy given the fact that KakaoPay is under the internet juggernaut Kakao Group along with GroundX and Klaytn Foundation — two entities that served as the main driving force of blockchain projects at Kakao. However, KakaoPay clarified that its involvement in the operations committee is unrelated to any plans for blockchain and virtual asset-related businesses, instead attributing it to Jin’s experience and expertise in anti-money laundering (AML) procedures. Prior to joining KakaoPay, he had been an AML expert at prominent financial institutions like the Financial Services Commission (FSC) and Kookmin Bank.In addition, Kiwoom Securities and Hanwha Asset Management are both members of the Busan Blockchain Industry Association. Kiwoom Securities explained that it was asked to join the committee to serve as a representative of the association.Key milestones and plansThe committee’s first meeting is scheduled for Nov. 9, the first day of this year’s Blockchain Week in Busan (BWB) event, during which it will discuss matters such as the appointment of a chairman and detailed plans for setting the special zone in motion.The promotion committee of the city’s plan for a digital asset exchange, which has been active until now, is also being dissolved as the term for the members serving in the committee has ended. Subsequently, the new operations committee will become a priority.The committee’s detailed blueprint and action plan will be unveiled during BWB. Touting the theme “Target 2026 Blockchain Busan,” the event is set to host local and overseas experts in the field of blockchain and Web3 to jointly discuss the prospects and potential of Busan to become an urban blockchain hub by 2026.