Temasek Cuts Pay Following FTX Autopsy

Mercari, one of Japan's leading e-commerce platforms, has declared its intention to accept bitcoin payments starting from June of this year. The decision, which was reported by Japanese financial media outlet Nikkei on Friday, outlines that the processing of bitcoin payments will be managed through Mercari's Tokyo-based crypto subsidiary, Melcoin.Photo by Dmytro Demidko on UnsplashSeamless BTC conversionIt's noteworthy that Melcoin will convert all BTC payments into yen, ensuring vendors receive fiat currency despite the buyer's choice of bitcoin for payment. While the company won't display prices in bitcoin, listing items for sale in fiat yen, customers will have the option to select BTC as a payment method during the purchase process on the platform. In recent months, Mercari has introduced various crypto-related products, including the Mercari bitcoin crypto trading service. This service allows users to buy and sell bitcoin using the proceeds from their sales on the platform. The integration of a loyalty points system further enhances the crypto trading experience, enabling Mercari users to exchange their points for bitcoin. Remarkably, Mercari announced that its bitcoin trading service surpassed the 1 million user milestone in October, just seven months after its launch. At the time of the launch of the trading service, the company outlined that it would “make bitcoin more accessible to people who have never tried crypto trading before.” Notably, around 80% of the crypto users on Mercari had no prior experience with crypto-asset trading in June of the previous year. Expanding its crypto-related offering to include bitcoin payments unleashes much more potential relative to crypto adoption. 22 million monthly usersEstablished in 2013, Mercari has evolved into Japan's largest community marketplace platform, boasting 22 million monthly users as of July 2023. It’s a flea market application, making it a consumer-to-consumer platform that could play a significant role in bringing about bitcoin adoption in Japan among ordinary people. The company has also expanded its footprint internationally, with a particular focus on Europe. Market observers have labeled Mercari's crypto service, along with a competitor operated by Rakuten, as a potential "gateway" for bitcoin and crypto investors and traders. Rakuten, another major Japanese e-commerce platform deeply involved in the crypto space for an extended period, operates the Rakuten Wallet crypto trading service. Like Mercari, Rakuten has integrated its loyalty points program with its crypto arm, allowing users to trade their points for crypto-assets. Rakuten had also emerged last year among a shortlist of Asian companies expressing an interest in purchasing failed crypto exchange FTX. A recent survey highlighted the growing influence of these e-commerce giants in the crypto space. Japanese individuals who entered the coin trading scene towards the end of 2022 overwhelmingly favored either Mercari's bitcoin trading app (24.7%) or Rakuten's Rakuten Wallet platform (24.2%). This revelation dealt a blow to traditional crypto exchanges, with bitFlyer, the long-standing market leader, securing the third position with a share of 11.3%. This move contributes towards a more progressive crypto environment in Japan, where lawmakers recently indicated a willingness to consider making tax rules more accommodative of the crypto sector.

PantherTrade applies for Hong Kong trading licensePantherTrade (Hong Kong) Limited, a subsidiary of Futu Holdings, had been reported last month as being in the process of preparing a licensing application to trade in Hong Kong. According to recent reports in local media, it appears that the company has now submitted such an application to the Hong Kong authorities.Photo by Simon Zhu on UnsplashKey appointmentsThis move aligns with the broader trend, as a total of six companies have submitted applications to the Securities and Futures Commission (SFC) of Hong Kong. It’s understood that PantherTrade submitted its application on Nov. 15. The move follows a similar application made by Hong Kong-based Meex Holdings on Oct. 12.Key strategic appointments within PantherTrade underscore the company’s vision for its virtual asset trading venture. Chen Zhihu, former Investment Director at Huobi Asset Management (Hong Kong), has joined as a director. The corporate establishment of PantherTrade in March also saw the addition of Hong Yimin, while the initial director, Fang Xingzhi, has a background with Jingdong Securities Co., Ltd.Interest from mainland ChinaRegulatory attention has intensified on PantherTrade and another applicant, Yax, affiliated with Tiger Brokers employees, according to reports from Nikkei Asia. Yax is another platform with mainland China ties, which was reported in October as intending to apply for a license to trade within Hong Kong.It’s understood that the local entity of Chinese enterprise blockchain firm OK Group, OKX Hong Kong FinTech Company Limited, submitted its own trading license application on Nov. 16.Licensing uptakeHong Kong’s regulatory environment has undergone a significant shift, with the city granting the first licenses to cryptocurrency companies under a new framework in August of the current year. The regulatory changes, effective in 2023, allow retail investors to trade crypto on exchanges licensed by the SFC. Importantly, the city has removed the restriction on crypto trading, no longer confining it to professionals with a minimum of $1 million in bankable assets.This regulatory evolution is part of Hong Kong’s broader strategy to position itself as an international hub for cryptocurrencies. The city aims to attract fresh capital and talent, especially in the aftermath of the pandemic. The licensing race among virtual asset trading platforms signifies a pivotal phase in Hong Kong’s vision to lead the digital asset industry in Asia.There had been some short-lived concern that momentum was moving against Hong Kong’s efforts to further the Web3 sector when it emerged recently that crypto derivatives platform Bitget was exiting the Hong Kong market and abandoning efforts to secure a trading license. That concern dissipated when Bitget’s motivations became clearer, following BGX, a related Bitget entity, making an investment into BC Technology Group, the owner of the already Hong Kong-licensed OSL exchange.PantherTrade’s application for a virtual asset exchange license in Hong Kong adds momentum to the city’s evolving crypto landscape. The strategic hires and the broader industry trend highlight the growing significance of Hong Kong in the global digital asset arena. As the regulatory framework becomes more conducive, the city aims to foster innovation and become a key player in the international crypto space.

Nasdaq-listed Bitcoin Depot, an American cryptocurrency ATM specialist, is expanding into Hong Kong, citing the city’s burgeoning status as a crypto hub and rapid digital asset adoption across Asia. The Atlanta-based company, which provides kiosks for converting cash into cryptocurrency, went public in July 2023. Its move into Asia follows a recent acquisition of assets from National Bitcoin ATM that boosted its domestic market share to a reported 30% as well as the strengthening of its compliance program. "Hong Kong is quickly becoming a global center for crypto, with the right mix of regulation, demand, and momentum," company president Scott Buchanan said in a Nov. 12 statement.Photo by Keller Chewning on UnsplashHong Kong's digital asset pushBitcoin Depot’s expansion aligns with a concerted push by the special administrative region to position itself as a global hub for digital assets. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), recently highlighted this ambition, which was underscored by a Nov. 11 announcement of an additional HK$10 billion ($1.3 billion) issuance of digital green bonds. The tokenized bond issuance, the third under the government's program, was denominated in Hong Kong dollars, Chinese yuan, U.S. dollars, and euros, and involved major banks like HSBC, BNP Paribas, and J.P. Morgan. The move also reflects a broader regional trend. In September, Tokyo-based Coinhub launched Japan's first officially registered crypto ATM network, installing 25 machines with plans to expand to 3,000 nationwide. Industry faces regulatory headwindsDespite the growth, the industry faces scrutiny from law enforcement over the use of crypto ATMs in criminal activity. In 2024, the FBI logged nearly 11,000 fraud complaints tied to the kiosks, with reported losses topping $246 million. According to Cointelegraph, increased regulatory attention has prompted several U.S. cities to ban crypto ATMs outright, while some states are introducing new restrictions. Concerns are growing over scams targeting vulnerable groups, especially seniors. Regulatory pressure is also mounting elsewhere. Australia's financial crimes watchdog, AUSTRAC, issued a $56,340 infringement notice last month to local operator Cryptolink, which the company paid. Cryptolink must now appoint third-party reviewers to ensure its anti-money laundering and counter-terrorism financing (AML/CTF) controls are adequate. The action followed findings from AUSTRAC’s Crypto Taskforce that 85% of transactions by the 90 most frequent crypto ATM users were linked to scam proceeds or money mule operations. AUSTRAC CEO Brendan Thomas urged the public "to be cautious of making transactions to any wallet they don’t control and thinking twice in circumstances where someone asks you to deposit money into a crypto ATM.”