Shanghai Embraces Blockchain, AI, and Digital Yuan with New Guidelines

Komainu Secures FCA Approval in Boost For Crypto Custody in the UKKomainu, a digital asset storage firm backed by Tokyo-based global financial services group Nomura, has received approval from the UK’s Financial Conduct Authority (FCA) to operate as a crypto custodian wallet provider.Photo by Robert Tudor on UnsplashPaving the way for broader service offeringThe Jersey-headquartered Nomura portfolio company outlined details of its regulatory success in a blog post published on Friday. This regulatory milestone marks a pivotal moment for Komainu’s expansion within the UK market, allowing the firm to amplify its crypto service offering in the UK.The approval paves the way for the firm to offer collateral management services through its platform, Komainu Connect. Sebastian Widmann, Head of Strategy at Komainu, expressed the company’s intention to furnish institutional custody services, a fundamental aspect of the swiftly advancing cryptocurrency market. He also underscored Komainu Connect’s role as a premier collateral management solution within the UK.Komainu’s CEO, Nicolas Bertrand, spoke to the United Kingdom’s pivotal role in the global financial technology sector. He accentuated the UK’s position as a critical hub for fintech, bridging the realms of traditional finance and decentralized finance. The FCA’s endorsement underscores Komainu’s efforts in attempting to deliver secure and compliant cryptocurrency custody services.“This is a key regulatory milestone as the UK remains one of the most important hubs for financial technology and innovation that will spur the convergence of traditional and decentralized finance,” stated Bertrand.This recent approval is not an isolated achievement for Komainu. The firm has been building up recognition for its adherence to regulatory compliance. In August, it secured a full operating license from Dubai’s Virtual Asset Regulatory Authority, reinforcing its dedication to adhering to global regulatory standards.Additionally, being headquartered in Jersey, Komainu falls under the jurisdiction of the Jersey Financial Services Commission, ensuring that the firm also adheres to those local financial regulations.The company previously unveiled an agreement with local authorities, focusing on secure digital asset storage during investigations. This partnership is demonstrative of efforts made by the firm in fostering transparency and security within the cryptocurrency ecosystem, aligning with the broader regulatory objectives of the UK government.Further ambitionsHowever, Komainu’s presence is expected to reach beyond the shores of the UK and Dubai. Coinshares, one of Komainu’s parent companies, recently introduced its hedge fund division, Coinshares Hedge Fund Solutions, signaling its intent to venture into the US market. This strategic maneuver will provide eligible American investors with access to Coinshares’ array of private investment products, further cementing its global presence in the cryptocurrency sector.In June the firm partnered with Seychelles-based global crypto platform OKX. As part of that deal, the digital assets custodian will store and custody digital assets on behalf of OKX's institutional clients.With a positive track record thus far where regulatory compliance is concerned, Komainu is positioning itself for further growth and innovation relative to a fast-developing crypto sector.

HSBC Expands Offering to Include Crypto ETFs in Hong KongThe Hong Kong and Shanghai Banking Corporation (HSBC), the largest bank in Hong Kong, has reportedly introduced its first cryptocurrency services for local customers.According to journalist Colin Wu’s tweet on Monday, HSBC now allows its customers to buy and sell Bitcoin-based exchange-traded funds (ETFs).Photo by Cheung Yin on UnsplashOffering three crypto ETFsHSBC’s cryptocurrency services specifically focus on the cryptocurrency ETFs listed on the Stock Exchange of Hong Kong. Currently, the exchange offers three crypto ETFs, including CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF.The introduction of these services will provide Hong Kong users with more exposure to cryptocurrencies. As of March 2022, HSBC Hong Kong had approximately 1.7 million active mobile customers, with about 95% of all retail transactions processed online. Plenty of the customers that currently access TradFi financial services don’t touch crypto-native products. Bridging this gap and bringing crypto to a more traditional financial services client base is a major step towards mass market adoption of crypto.Educating the marketIn addition to the roll-out of cryptocurrency services, HSBC reportedly launched the Virtual Asset Investor Education Center. The initiative is designed to protect investors from cryptocurrency-related risks by requiring them to read and confirm educational materials and risk disclosures before investing.The Virtual Asset Investor Education Center is accessible through HSBC’s virtual asset-related products, such as the HSBC HK Easy Invest app, HSBC HK Mobile Banking app, and online banking.This is also a significant step forward. It’s entirely valid that while there are good actors in the crypto space, the sector has also had a lot of sharp practice that reflects badly on it. This alone may be reason enough for many conventional investors not to touch digital assets. Their trust in a platform like HSBC will allow them to include crypto within their portfolios.The second aspect to that reluctance is rooted in a misunderstanding of digital assets, the risks involved, and how risk can be minimized. HSBC has clearly identified this by taking the initiative and launching its Virtual Asset Investor Education Center.Crypto ETF growth potentialThis development follows reports in mid-June that the Hong Kong Monetary Authority (HKMA) had exerted pressure on major banks to accept crypto exchanges as clients. The central bank and regulator specifically questioned HSBC and Standard Chartered about their reluctance to onboard crypto exchanges as clients.HSBC’s move to offer cryptocurrency services in Hong Kong reflects the growing acceptance and recognition of cryptocurrencies in the financial industry. By providing access to crypto ETFs, HSBC aims to cater to the increasing demand for digital assets among its customers in the region.The crypto ETF products that are currently on offer in Hong Kong are very recent. As an example, Samsung’s Bitcoin futures ETF was launched in January. The product has already seen a lot of interest due to growing uncertainty relative to the traditional global financial system.A report produced by the Hong Kong stock exchange in April found that crypto ETFs have the potential to play a significant part in unlocking the next phase of digital asset expansion in Asia. Clearly, HSBC have taken notice with this move to further enable that potential.

Coins.ph partners with Paxos to further PYUSD adoptionCoins.ph, the Philippines’ leading cryptocurrency exchange, has forged a strategic alliance with Paxos Trust Company, a New York-based institution specializing in blockchain, aiming to propel the adoption of PayPal USD (PYUSD) for seamless cross-border remittances.Photo by C Bueza on UnsplashTargeting fourth largest remittance marketThe Southeast Asian firm outlined details of the partnership via a blog post published to its website on Tuesday. The integration of PYUSD into Coins.ph marks a significant milestone, providing Filipinos with a secure and convenient avenue for transferring funds across borders to their loved ones. Wei Zhou, CEO of Coins.ph, emphasized the foresight in prioritizing the growth of USD stablecoins, particularly PYUSD, acknowledging the Philippines as the fourth largest remittance-receiving country globally, with over 40% of these remittances originating from the United States. Zhou stated:“With PayPal behind it and its availability on platforms such as Venmo and Xoom, PYUSD is set to become one of the most widely used stablecoins in the world.”PYUSD is a U.S. dollar stablecoin promoted by American multinational payment system PayPal and issued by Paxos.Nick Robnett, Senior Director of Customer Success at Paxos, echoed Zhou’s sentiment, stating that PYUSD stands as the safest dollar-backed stablecoin accessible to global institutions and consumers. This regulated digital asset enables Coins.ph users to send U.S. dollars swiftly and affordably, challenging conventional remittance networks and providing enhanced access and economic freedom.Asian expansionThis latest collaboration in the Philippines comes hot on the heels of similar in-roads made elsewhere in Southeast Asia. In Singapore, Paxos has partnered with Crypto.com, an entity that is headquartered in the city-state. The local regulator, the Monetary Authority of Singapore (MAS), had outlined a new regulatory framework for stablecoins in August, making conditions right for Paxos to further develop its PYUSD offering from that location.It got a further boost last week when MAS awarded its local subsidiary, Paxos Digital Singapore Pte. Ltd., in-principle approval to trade within Singapore. The relatively new stablecoin has already been listed on international crypto exchanges such as Bitstamp, Coinbase and Kraken.Philippine potentialThe Philippines is shaping up to have a lot of potential for Paxos and its PYUSD stablecoin. The country has been working on the publication of a regulatory framework for crypto. Coins.ph Head of Legal Compliance, Robert De Guzman, stated in April that the Southeast Asian country was shaping a progressive crypto regulatory framework. Earlier this year, Donald Lim, the Founder of the Blockchain Council of the Philippines (BCP), said that the country was poised for crypto adoption.For users keen on employing PYUSD for remittances, the process is streamlined. Senders transmit PYUSD to the designated Coins.ph wallet address of recipients, from where easy conversion to the Philippine peso (PHP) on the app and subsequent cash-out becomes possible. This can be facilitated through InstaPay or PESONet fund transfers to banks and other e-wallets or through various supported over-the-counter remittance centers endorsed by Coins.ph.