Korean Financial Watchdog to Penalize Bankers Involved in Illegal Foreign Remittances

OSL Parent Company Denies Sale PlansBC Technology Group, a Hong Kong-based investment holding company, has firmly denied recent reports suggesting it is exploring the sale of its licensed digital asset business, OSL, for up to HK$1 billion (US$137.3 million).Photo by Nextvoyage on PexelsCompany stock plummetsThis comes in response to a report that emerged via Bloomberg on Monday. The news of the possible sale had a significant impact on the company’s stock, which plummeted by over 22% to HK$3.35 the following day.BC Technology Group, which has been listed on the Hong Kong stock exchange since 2012, is the parent company of OSL. The reports hinted at the possibility of selling off parts of the business, citing undisclosed sources.In response to these rumors, BC Technology Group issued a formal statement to clarify the situation, deeming the article “factually inaccurate and highly misleading.” It vehemently refuted any intention to sell OSL, a key player in the cryptocurrency exchange sector.First licensed exchangeOSL was the first cryptocurrency exchange to be licensed by the Securities and Futures Commission (SFC) in Hong Kong in 2020, initially operated under a voluntary scheme and was limited to serving professional investors. However, the recent licensing requirement broadened its scope, allowing it to cater to retail investors as well, including popular cryptocurrencies like Bitcoin and Ethereum.Both OSL and HashKey had their licenses upgraded this year, enabling them to serve retail investors as per the new policy. However, the reception to this new regulatory framework has been somewhat lukewarm, with only five local exchanges applying for the new virtual asset trading platform (VATP) license. The SFC had to publish a list of applicants following a financial scandal involving the JPEX crypto exchange, which led to over 2,500 complaints and losses totaling approximately HK$1.5 billion.The backdrop of this unfolding situation is Hong Kong’s efforts to establish itself as a significant virtual asset hub. The city announced its ambition to transform into a hub for digital assets a year ago, drawing considerable attention from cryptocurrency exchanges. These efforts included implementing new regulations in June that mandated licensing for cryptocurrency exchanges.Several companies with connections to Hong Kong and mainland China have expressed their intent to obtain a license, potentially taking advantage of Hong Kong’s favorable stance toward virtual assets when compared to mainland China’s strict regulations.High compliance costsNonetheless, high compliance costs in Hong Kong continue to pose a barrier, potentially preventing the city from becoming the primary base of operations for crypto businesses. Industry insiders estimate that the cost of compliance from start to finish can be as high as HK$60 million for a company. Firms have reported that obtaining a trading license in Hong Kong can involve an outlay of between HK$20 million and HK$200 million.As per BC Technology Group’s mid-year report, the company reported a net loss of HK$94.7 million in the first half of 2023. This marked a notable improvement compared to the HK$312.1 million in losses during the same period the previous year. OSL remains a significant source of income for the company.

Of all the crypto startups bootstrapping their way forward in 2023, few have forged as many industry partnerships as Singapore-based fiat-crypto payment solutions provider Alchemy Pay. This week brought two more collaborative developments for the fledgling company.Photo by Erika Fletcher on Unsplash Trust Wallet partnershipAlchemy Pay has entered into a strategic alliance with Trust Wallet, a self-custody and multi-coin wallet project headquartered in San Francisco, boasting over 70 million users. The collaboration empowers users to seamlessly engage in crypto transactions with various fiat payments directly within Trust Wallet.According to a press release published by the company on Wednesday, the integration not only enhances the user experience but also provides more on and off-ramp solutions. With that, it potentially lowers the entry barrier for retail users and aids acceleration of the adoption of Web3.Trust Wallet users can now convert between crypto and fiat using a multitude of international and local payment methods which are enabled by Alchemy Pay from within the wallet. The platform supports over 30 fiat currencies and accommodates transactions involving numerous cryptocurrencies across more than 100 blockchains.Robert McCracken, the Ecosystem Lead at Alchemy Pay, expressed pride in the partnership, emphasizing the commitment to ensuring a smooth, compliant and secure user onboarding process for fiat on-ramp and crypto off-ramp. The collaboration aims to make comprehensive on and off-ramp support available to the global user community.Nate Zou, Trust Wallet’s Product Lead, was similarly enthused, stating:“We’re excited to offer more fiat solutions for our users by working with Alchemy Pay, making crypto more accessible than ever. This opens up new buying options for our global user base and introduces lower fees and more convenient payment methods while maintaining full ownership of their assets.” Enabling UK and Euro paymentsNot resting on that single collaboration, in a separate development Alchemy Pay has introduced new payment options, including the euro instant solution, Single Euro Payments Area (SEPA) Instant and the U.K. fast money transfer option, Faster Payments. According to details of these additions published to the Alchemy website on Thursday, the aim is to simplify the process of purchasing cryptocurrencies like Bitcoin, with transfers being processed in seconds to within a few minutes.SEPA Instant allows European Alchemy Pay customers to buy cryptocurrency up to 5,000 euros ($5,460), while Faster Payments, available in 30 European countries and the U.K. after Know Your Customer checks, has a transfer limit of up to 5,000 British pounds ($6,320). These options complement existing local payment channels, such as the Polish Blik payment system, Bancontact, Skrill and others.The announcement emphasized that this expansion of payment channels throughout Europe signifies Alchemy Pay’s growing influence and market reach.Notably, the platform recently acquired licenses in the United States, including Iowa and Arkansas. It has stated that other such state license applications are in the works, with the company expecting further licensing awards to be announced in the coming weeks. The firm also expanded its operations in Indonesia and Lithuania in February 2023.As Alchemy Pay actively broadens its payment services worldwide, the partnership with Trust Wallet and the enabling of Euro area and UK payments contributes to its mission of making crypto transactions more accessible and user-friendly on a global scale.

Fair Weather Day for Rain With Abu Dhabi License ApprovalRain, the cryptocurrency exchange that serves the Middle East and North Africa (MENA), Turkey, and Pakistan, has scored a significant regulatory win in the United Arab Emirates (UAE). On Tuesday, the Abu Dhabi unit of Rain secured a license to operate as a virtual assets brokerage and custody service within the country.Photo by Agnieszka Kowalczyk on UnsplashCoinbase backingHeadquartered in Bahrain and backed by Coinbase, Rain’s Abu Dhabi Global Market financial free zone entity will now have the authority to offer virtual asset services to institutional and select retail clients in the UAE. This includes the ability to facilitate the buying, selling, and custody of cryptocurrencies.According to Co-Founder Yehia Badawy, the newly acquired license brings additional advantages to Rain. Notably, the exchange will be able to open a bank account in the UAE, simplifying fund management for its clients who can now utilize the local payment network.For Rain, this regulatory approval holds particular significance, as it addresses the hesitancy among local asset managers to engage with crypto firms lacking a domestic license. With this stamp of approval, these managers are expected to feel more at ease collaborating with Rain, thus expanding the potential demand from institutional investors.$500 million valuationRain has been gaining traction since its establishment in 2017 by Badawy and three other co-founders. Kleiner Perkins and Coinbase Ventures, two prominent investors from Silicon Valley, have backed the exchange. Both participated via a Series B funding round in January 2022 that saw Rain raise $110 million. Interestingly, Rain’s leading investor, Coinbase, also expressed an interest in developing a base in Abu Dhabi in recent months.There has been a lot of speculation in recent times with regard to where Binance, the world’s largest cryptocurrency exchange, is headquartered. Although still not certain, many believe that Abu Dhabi provided that base for the company. Meanwhile, US-headquartered cryptocurrency exchange Gemini, is working towards establishing a base in the UAE.Overcoming challenging market conditionsLast year’s Series B fundraise resulted in the company achieving a valuation of $500 million. The funds from that round were earmarked for the expansion of Rain’s operations throughout the region. Later that same year, the company laid off dozens of employees as bear market conditions within the digital assets space began to bite. As market conditions worsened later that year, the firm announced a fresh round of job cuts in September.The UAE has been positioning itself as a crypto-friendly destination, aiming to attract major players in the cryptocurrency industry. By enabling cryptocurrency payments in sectors like real estate and education, the UAE has spurred adoption rates and transaction volumes. Additionally, the country has been actively working on developing virtual asset regulations to accommodate new business opportunities in a highly competitive Gulf region.Rain’s recent licensing achievement signifies a significant milestone for the exchange and contributes to the UAE’s ongoing efforts to establish itself as a leading hub for the cryptocurrency sector.