Grab joins hands with StraitsX to enable stablecoin retail payments across Asia

Hong Kong Launches Web3 InstituteThe Institute of Web3 Hong Kong has recently been established with the aim of promoting and developing Web3 technologies, including blockchain and other decentralized technologies. That’s according to a report that was published by the Hong Kong China News Agency (HKCNA) last week.©Pexels/Zetong LiPromoting Web3 developmentThe Institute of Web3 Hong Kong aims to promote the development of Web3 technologies by providing education, research, and development support to individuals and organizations interested in these technologies. It will also serve as a platform for collaboration between different stakeholders in the Web3 ecosystem, including developers, entrepreneurs, investors, and regulators.The institute is being led by Joseph Yam, the former Chief Executive of the Hong Kong Monetary Authority (HKMA), and is expected to play a key role in the growth and development of Web3 in Hong Kong and beyond.Yam is well-known for his expertise in financial regulation and has been a strong advocate for the adoption of blockchain technology in the financial industry. In his new role as the head of the Institute of Web3 Hong Kong, he is expected to use his experience and knowledge to promote the adoption of Web3 technologies in Hong Kong and the wider Asia-Pacific region.Developing financial centerThe establishment of the Institute of Web3 Hong Kong is seen as a significant development in the growth of the Web3 ecosystem in Hong Kong. Hong Kong is already known for its strong financial industry, and the adoption of Web3 technologies could further enhance the city’s position as a leading financial hub in the region. The institute’s focus on education and research will also help to develop a skilled workforce that can support the growth of the Web3 industry in the future.The institute is expected to work closely with the Hong Kong government and other stakeholders to create a regulatory framework that supports the growth and development of Web3 technologies. This is important, as regulatory uncertainty is often cited as a barrier to the adoption of blockchain and other decentralized technologies.Precursor to investmentThe establishment of the Institute of Web3 is also expected to attract more investment in the Web3 industry in the region. The institute’s focus on education and research will help to create a favorable environment for startups and other organizations that are developing Web3-based applications.While China has not been a crypto-friendly region in recent years, there are increasing signs that Chinese officials are content to see Hong Kong develop as a hub for Web3-based technologies while keeping the sector under much stricter control within mainland China. Chen Dong, Deputy Director at the Liaison Office of the Central People’s Government in Hong Kong has publicly praised Hong Kong’s push to become a regional center for Web3 innovation. Meanwhile, Li Feng, the Chairman and CEO of China Mobile, has been installed as the non profit’s honorary chairperson.The establishment of the Institute of Web3 Hong Kong is a significant development in the growth and development of Web3 technologies in the Asia-Pacific region. The institute’s focus on education, research, and collaboration will help to promote the adoption of Web3 technologies and create new business models in various industries. With the leadership of Joseph Yam, the institute is expected to play a key role in the growth of the Web3 ecosystem in Hong Kong and beyond.

South Korea: Crypto Exchange Execs Indicted on Manipulation ChargesA number of executives at Coinone, one of South Korea’s leading cryptocurrency exchanges, have been indicted on charges related to market manipulation.That’s according to a report published by South Korean news outlet, The JoongAng, on Monday. The complaint details no less than forty-six coins that are alleged to have been the subject of manipulation in some form. That represents one in four of the total number of coins that the exchange has enabled for trading on the platform.Photo by Burak The Weekender on PexelsFour executives indictedThe indictment lists four Coinone executives, Mr. Jeon, Mr. Kim, Mr. Ko, and Mr. Hwang. The four have been charged with employing illegal mechanisms to manipulate coin listings, resulting in the four executives profiting to the tune of 2.98 billion Korean Won, which amounts to $2.26 million dollars according to current fx exchange rates.The complaint specifies that these offenses were committed between December 2019 and November 2022. South Korean prosecutors further allege that prior to various projects obtaining a token listing on Coinone, company executives made them sign third-party market-making contracts. That in and of itself is not unusual.One of the key aspects of a new coin listing (and an ongoing listing for that matter), is the need to have sufficient liquidity in place to ensure that the coin can be traded without being susceptible to market manipulation. Low liquidity conditions open the door to bad actors moving the market relative to a particular token.Cross tradingThe indictment is far more specific in calling out illegal cross trading activity. It’s likely that these key Coinone employees would have been expecting such an indictment to land at their doors. Last week, it emerged that LUNA tokens associated with Terraform Labs’ failed Terra USD (TUSD) algorithmic stablecoin project, had been illegally cross traded on three South Korean crypto exchanges: Bithumb, GoPax and Coinone.Cross trading is the practice of trading an asset on an exchange without recording the transaction transparently on the exchange. Strictly speaking, the activity can be legitimate although most exchanges prohibit the practice as it can be used to affect market manipulation.A cross trade could be permitted in a scenario where the price is deemed to be competitive at the time that the trade takes place. While this can more easily be determined in conventional markets as the practice is covered by specific regulation, that’s not the case in most jurisdictions right now where digital asset trading is concerned. By extension, there’s a complete lack of transparency and a lack of reporting.As other market participants don’t have visibility of this type of trading activity, they are unaware as to whether a better price is available on the market or not. In an unregulated state, the practice undermines trust.In the case of Coinone, the executives enabled the practice in order to provide an illusion with regard to trading activity. That meant that trading volumes claimed were inaccurate, misleading ordinary traders and exchange users. Along with trading volume in these coins being artificially boosted, so too were token prices.In the indictment, prosecutors explicitly alleged that cross trading was being employed in an illegal manner:“This price manipulation causes misunderstandings about the trading volume and market price among general members of the exchange, and induces [service users] to participate in the coin transaction and buy the coin.”

SEBA Bank Receives Conditional Approval for Crypto Services in Hong KongSwiss-based crypto-centric SEBA Bank has secured conditional approval from Hong Kong’s Securities and Futures Commission (SFC) to offer crypto services within the autonomous Chinese territory.While there are stipulations yet to be met before the license is fully granted, the development marks a significant progression when it comes to SEBA’s global business ambitions.Photo by Ruslan Bardash on UnsplashExpanding in AsiaThe “approval-in-principle” comes as part of SEBA’s strategic efforts to expand its foothold in the Asian crypto market. Once the conditions are fulfilled and the license is formalized, SEBA will be well positioned to provide Hong Kong with a range of comprehensive crypto services.This includes securities dealing encompassing crypto-related structured products, as well as consultation and management of both digital assets and traditional securities. SEBA sees potential in the offering of derivative products as it has identified demand for derivatives and structured products within the Asian crypto market.This step forward for SEBA follows earlier reports that the bank was actively growing its workforce in pursuit of digital asset licenses for both Hong Kong and Singapore. The company has grown its headcount from seven to 20 across these locations, as it looks to establish a strong presence in the Asian market.The move aligns with Hong Kong’s evolving stance on cryptocurrency and digital finance. Introduced in June, the virtual asset service provider (VASP) license was intended to regulate virtual asset services within Hong Kong’s legal framework. Currently, only two crypto exchanges have secured these licenses.Cryptocurrency exchange HashKey, alongside digital assets platform OSL, became one of the first licensed crypto exchanges in Hong Kong recently. Since then, it has expanded its offerings to retail users, allowing them to purchase Bitcoin and Ethereum using US dollars. Leading up to that licensing approval, it had also launched a wealth management service for high-net-worth individuals and institutional investors. The majority of publicly accessible VASPs remain unregulated, according to a recent statement by the SFC.Regulatory balanceThe Hong Kong Monetary Authority (HKMA) has also shown interest in fostering relationships between established financial institutions and crypto exchanges, further signaling the region’s growing engagement with the crypto space. It’s also pointing towards getting the balance right between enabling digital asset innovation and having sufficient regulation in place to protect investors. In May, its CEO, Eddie Yue, stated that Hong Kong wouldn’t be a place for light touch regulation.The licensing process in Hong Kong hasn’t been without its difficulties. The interest in obtaining crypto trading licenses caught the SFC flat footed as it found itself understaffed to work through the licensing applications that arrived at its door. The backlog prompted commentary from SEBA’s CEO for the Asia Pacific (APAC) region, Amy Yu, back in May, with Yu highlighting that the backlog had increased significantly over the course of nine months.While SEBA has broken into the market in the APAC region via its efforts in Hong Kong, it’s understood that the bank has plans to develop its business in Singapore further over the course of the coming months.