Korea to Ban Virtual Asset Deposit Services from Next July

Japanese Financial Giant SBI Extends Use of Ripple’s Remittance TechSBI Remit Co., Ltd., a prominent player in the international money transfer sector and a subsidiary of Japanese financial services conglomerate SBI Group, has unveiled a significant expansion of its collaboration with Ripple in Asia.Photo by Kanchanara on UnsplashPhilippines, Vietnam, and IndonesiaThe strategic alliance between the two companies will enable international remittance services utilizing Ripple’s XRP cryptocurrency as a bridge currency, connecting bank accounts in the Philippines, Vietnam, and Indonesia.The partnership, announced via a statement published to SBI’s website on Wednesday, builds upon SBI Remit’s history of utilizing Ripple Payments for its international remittance services, which dates back to 2017. The company has been a pioneer in Japan, leading the way in offering an international remittance service that leverages XRP as a bridge currency between two sovereign currencies.This latest move underscores SBI Remit’s interest in furthering its exploration and use of XRP-based remittances. In 2021, it introduced a service targeting digital wallets in the Philippines, marking a milestone in using XRP for international remittances in Japan.Simplifying international remittancesThe newly introduced scheme aims to simplify the international remittance process significantly. The process involves SBI Remit initiating a customer’s remittance request, followed by SBI VC Trade facilitating real-time XRP transfers in response to the request. This dynamic approach has been made feasible through a strategic partnership with Tranglo Pte. Ltd., a long-standing Ripple partner. It ensures that customers receive their remittances in their respective local sovereign currencies.SBI emphasized the advantages of using XRP as a bridge currency, highlighting its ability to enable fast and cost-effective money transfers. XRP also boasts excellent scalability, allowing users to seamlessly send funds to Ripple’s global partners. SBI believes that this will enhance its competitiveness in the international remittance sector.Targeting important remittance marketsThe decision to target the Philippines, Vietnam, and Indonesia was not arbitrary. These countries have a substantial share of remittances channeled into bank accounts, making them ideal candidates for XRP adoption. SBI Remit anticipates that the introduction of the XRP-based remittance service will further accelerate cryptocurrency adoption in these nations.Yoshitaka Kitao, chairman and CEO of SBI Holdings, expressed the company’s commitment to transforming international remittance services. The press release also conveyed SBI Remit’s dedication to extending its reach beyond the initial three Asian countries. At the time of publication, XRP was trading at $0.5022.The significance of the announcement was not lost on retail investors with an ongoing interest in XRP. Taking to X (formerly Twitter) one wrote:“Everyone who says Ripple does not utilize XRP, and that nobody uses XRP is WRONG.”At Paris Blockchain Week earlier this year, Monica Long, President of Ripple, stated: “The past couple of years have been a real tipping point for institutional DeFi, where even the biggest of banks are embracing this technology as the future, and they have to adapt or die.” That statement is relevant when this latest expansion of the Ripple/SBI partnership is considered.SBI Remit’s expanded partnership with Ripple marks a significant step in the evolution of international remittance services. By harnessing the power of XRP as a bridge currency, SBI Remit aims to revolutionize cross-border transactions while targeting countries with substantial remittance markets.

Japan plans to require cryptocurrency exchanges to maintain reserves to cover potential losses from hacking incidents, according to a Nov. 24 Nikkei report cited by local outlet New Economy. The measure is designed to ensure that service providers can compensate users in the event of a breach. Authorities are expected to set the reserve level after reviewing past hacking cases and examining how much traditional securities firms set aside. While crypto exchanges are currently required to store customer assets in cold wallets, they are not obligated to maintain any dedicated pool of funds for compensating losses, and the proposed framework is intended to close that gap.Photo by Jen Titus on UnsplashReserve rules mirroring brokerage standardsThe Financial System Council, which operates under the Financial Services Agency (FSA), will finalize a report on the proposal and draft a bill for submission to next year’s regular Diet session. The legislation would amend the Financial Instruments and Exchange Act (FIEA). The FSA is turning to the FIEA because the reserve framework is modeled on existing rules for securities companies, which must maintain designated reserves to compensate clients for losses stemming from errors or other improper activities. These measures follow earlier reports that similar requirements are being considered for third-party custody providers that hold crypto assets on behalf of exchanges. These external custodians have not been directly overseen, but the FSA now plans to require them to report their activities in advance. The push to reinforce customer protections comes as Japan’s crypto market continues to expand. In a sign of that growth, mobile payment platform PayPay last week enabled transfers between PayPay Money balances and Binance Japan. The new feature allows deposits from 1,000 yen, with limits of 1 million yen per 24 hours and 2 million yen per 30 days. Until now, funding or withdrawing from Binance Japan’s spot trading services was limited to yen bank transfers or transactions through external exchanges and wallets. Accumulation grows amid market pullbackJapanese companies have also continued to accumulate Bitcoin. According to Decrypt, Metaplanet, a former hotel operator that now positions itself as a Bitcoin treasury firm, said on Nov. 25 that it plans to use its Bitcoin holdings as collateral for a $130 million loan to purchase additional Bitcoin. The Tokyo Stock Exchange-listed firm currently holds 30,823 BTC and aims to expand its position to 210,000 BTC by 2027. Another publicly traded company, nail-salon operator Convano, has taken a similar approach, recently adding 97.67 BTC to bring its total to 762.67 BTC, according to BitcoinTreasuries.NET. This accumulation has continued despite Bitcoin’s recent decline. The cryptocurrency has fallen nearly 20% over the past month and is now trading just below $92,000. Citing analysis from 10x Research CEO Markus Thielen and Nansen research analyst Nicolai Søndergaard, Yonhap Infomax pointed to several factors behind the pullback. Thielen highlighted $3.5 billion in outflows from spot Bitcoin ETFs this month and roughly $800 million in stablecoins leaving the market. Søndergaard noted that long-term holders have been selling, adding that such activity has historically appeared early in Bitcoin’s four-year market cycle. Bitcoin’s most recent halving occurred on April 20, 2024, roughly 19 months ago. Market watches upcoming policy movesFrom a broader macro perspective, Reuters reported that the Bank of Japan (BOJ) could raise interest rates as early as next month amid pressure from a weakening yen. The timing remains uncertain, with the decision seen as hinging in part on the U.S. Federal Reserve, which sets policy one week before the BOJ. According to CME Group’s FedWatch Tool, markets currently assign an 84.9% chance of a 25-basis-point Fed rate cut in December. A Fed hold or a more hawkish tone could lift the dollar, further weaken the yen, and increase pressure on the BOJ to act sooner. A Fed cut, by contrast, could ease that pressure but raise questions about the U.S. outlook and the trajectory of future BOJ hikes. Monetary decisions in the coming weeks are expected to influence crypto markets, as lower interest rates generally support demand for risk assets such as Bitcoin. With both the Fed and the BOJ poised to set policy in December, market participants are watching for how shifts in liquidity and currency moves could shape the next phase of digital asset prices. 

Coincheck, a subsidiary of Monex Group, a Tokyo-based global financial services firm, has gained U.S. Securities and Exchange Commission (SEC) approval to become the first Japanese crypto exchange to list on the Nasdaq, an American stock exchange.Photo by Denys Nevozhai on UnsplashSPAC mergerThe approval by the U.S. regulator was filed on Nov. 13. The listing has been enabled due to the company’s decision to enter into a merger with a special purpose acquisition company (SPAC), namely Thunder Bridge Capital Partners (TBCP).  A SPAC raises money through an initial public offering (IPO) to either acquire or merge with an existing company. Opting for a SPAC means that Coincheck can forego a lot of the time and expense that would be necessary if it attempted to effect an IPO on its own. Parent company Monex Group published a statement outlining that Coincheck CEO Yuko Seimei had “been diligently preparing for listing its common stock on the Nasdaq Global Market (“Nasdaq”) through a previously announced business combination with Thunder Bridge Capital Partners.” Possible Nasdaq listing on Dec. 10 In a press release issued by TBCP, the company claimed that the proposed merger is anticipated to close on or about Dec. 10, 2024. That eventuality is subject to stockholder approval, Nasdaq approval and specific closing conditions. Consequently, Coincheck’s Nasdaq listing could potentially happen as early as Dec. 10. TBCP is holding a shareholder vote on the merger on Dec. 5. If all conditions are satisfied to pave the way for listing, the company’s stock will be listed using CNCK as the Nasdaq stock ticker. Once the merger and Nasdaq listing have been accomplished, Coincheck will still remain a subsidiary of Monex Group. The merged business will gain access to $237 million, held in trust by TBCP, with Monex retaining an 82% stake in the company. Furthermore, Thunder Bridge CEO Gary Simanson will lead the new company. The $1.25 billion merger had been in the works since 2022, having faced multiple delays on the path towards merger completion and Nasdaq listing. Coincheck finally filed with the SEC to merge back in May. Parent company Monex has other interests in the digital asset sector beyond its involvement with Coincheck. Last December the company acquired a majority stake in 3iQ Digital Holdings, a Canadian crypto asset management company.Monex has just launched a new brand, Monex Web3, comprising of Monex’s Web3 business portfolio. It also offers a Web3 consulting business, using its local know-how to guide Web3 startups in entering the Japanese market. Coincheck has also engaged in partnerships to assist other firms in gaining access to the Japanese market. Earlier this year the leading Japanese crypto exchange partnered with USD Coin (USDC) stablecoin issuer Circle, in an effort to expand USDC access within the local market. In January 2018 the exchange suffered what was at the time the world’s largest ever digital asset theft, losing $534 million in virtual assets in a hack of the platform.