B2Prime Group achieves initial VASP license approval in Dubai

Singapore-based cryptocurrency trading platform BingX has secured a sponsorship deal as the new sleeve sponsor for Premier League football club Chelsea.Photo by Chaos Soccer Gear on UnsplashJanuary 9 debutThe arrangement, spanning the next six months, is expected to debut during Chelsea’s Carabao Cup semi-final first-leg match against Middlesbrough on Jan. 9. As part of this sponsorship, BingX will prominently feature on the front of Chelsea’s training kits for the upcoming 2024/25 season. Meanwhile, the current shirt sponsor, Infinite Athlete, will transition to a training sleeve sponsorship starting next season. While details about the fate of Chelsea’s training kit deal with Trivago, an online hotel booking site, remain uncertain, the club is navigating sponsorship changes in the wake of owner Roman Abramovich’s prior ownership and UK government sanctions. Corporate rebrandEstablished in 2018, BingX operates as a cryptocurrency exchange headquartered in Singapore, catering to a user base of over 10 million in Southeast Asia and North America. In November, the company announced that it was rebranding the business. Part of that process was understood to involve an overhaul of BingX’s visual identity, with the introduction of a streamlined logo. Sponsorship within the English Premier League is a high profile marketing move that will undoubtedly bring more visibility to that brand. Crypto marketing spend reboundThe marketing spend of crypto firms relative to high profile sponsorship deals has recovered significantly in recent months. Such sponsorship deals peaked at the top of the crypto market in 2021. That period saw profligate spending by many of the large crypto platforms. A standout example was provided by the $135 million sponsorship deal signed by fraudulently run crypto exchange FTX for the Miami Heat stadium naming rights in the United States. While that opulent sponsorship spending subsided during the bear market, it appears that there has been a modest resurgence as market conditions have improved. Seychelles-based crypto platform OKX has ongoing marketing relationships with the McLaren Formula One racing team and Manchester City Football Club. In March, U.S.-based crypto exchange Kraken announced a marketing partnership with the Williams Formula One racing team. Earlier this week it emerged that crypto gambling platform Stake.com had signed a sponsorship deal with the Sauber Formula One team. 18 of the 20 English Premier League clubs are now understood to have agreed sponsorship deals at one time or another with crypto companies. This demonstrates the growing trend of cryptocurrency platforms associating with high-profile sports partnerships, enhancing their visibility and influence in the market. Chelsea is actively seeking a front-of-shirt sponsorship deal, considering potential collaborations, including discussions with Saudi national carrier Riyadh Air. It’s understood that the BingX deal has been agreed for in excess of £10 million ($12.7 million) per season.

Crypto.com’s Dubai-based subsidiary secures crypto licenseCRO DAX Middle East, the Dubai-based subsidiary of Singapore-headquartered cryptocurrency exchange platform Crypto.com, has achieved a significant milestone by obtaining a license from the emirate’s Virtual Assets Regulatory Authority (VARA) to provide specified virtual asset services.Photo by Timo Volz on UnsplashExpanding product offering in DubaiThe approval, announced by the firm via a press release published to its website on Tuesday, marks a pivotal moment for the Singapore-based Crypto.com, allowing it to offer regulated virtual asset services in Dubai, including exchange services, broker-dealer services, management and investment services as well as lending and borrowing services.The virtual assets service provider (VASP) license is contingent upon CRO DAX Middle East meeting specific conditions and localization requirements outlined by VARA. Once these conditions are satisfied and the operational approval notice is received from the regulator, the company will be poised to commence operations. These services will be made accessible to both retail and institutional users through Crypto.com’s app and exchange platform.Kris Marszalek, CEO of Crypto.com, expressed his enthusiasm for Dubai’s regulatory approach, stating: “Dubai continues to show it is a leading market when designing effective regulation for the crypto space while still supporting adoption and innovation.”Dubai’s virtual asset sector developmentThe regulatory framework for virtual assets in Dubai was established under the Dubai Virtual Asset Regulation Law in March 2022, leading to the creation of VARA. Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, founded VARA with the aim of developing an advanced legal framework to safeguard investors. Furthermore, the objective was to set international standards for the governance of the virtual asset industry, while fostering responsible business growth.VARA issued regulations in February to provide clarity and certainty on the expected level of operator responsibility and to mitigate market risks. This move aligns with the broader context of global cryptocurrency regulations, aiming to create a safe environment for investors in the wake of recent collapses of major platforms.Crypto.com is working to become one of the first virtual asset exchanges to implement its VASP license in accordance with VARA’s specialized regulations issued earlier this year. The company had previously received its minimum viable product provisional license in June 2022 and the MVP preparatory license in March of the current year. The operational license, which follows the preparatory and provisional stages, grants virtual asset service providers permission to conduct activities in seven specified categories.Adapting to the marketThe company has also been working on licensing in other markets. In Singapore, where it is headquartered, the company received a Major Payment Institution (MPI) trading license from the Monetary Authority of Singapore (MAS) in June. The company has also re-calibrated its offering based on market shifts. Earlier this year, it halted its institutional exchange service in the United States due to a downturn in institutional demand stateside.In March 2022, Crypto.com declared Dubai as its regional hub for the Middle East and North Africa (MENA), solidifying its commitment to expanding its presence and contributing to the growth of the cryptocurrency ecosystem in the region.

Research Finds Over 90% of Korean Cryptos Prone to Pump-and-Dump SchemesThe Korea Institute of Finance (KIF) has released a report revealing that 91.3% of South Korean-issued cryptocurrencies, known as “kimchi coins,” are prone to pump-and-dump (P&D) schemes. These schemes involve intentionally spreading false information on social media platforms to manipulate token prices. This is done with the intention of selling the tokens at artificially inflated prices.Photo by Maxim Hopman on UnsplashP&D prevalenceThese manipulative practices were frequently observed during the rapid growth of the cryptocurrency market from 2020 to 2022. Previous research papers indicate that P&D schemes commonly occur on multiple crypto exchanges and typically unfold within a time frame of 10 minutes. It has been observed that cryptocurrencies with lower liquidity and smaller market capitalization are particularly vulnerable to becoming prime targets for these schemes.Korean market and global marketThe Korean cryptocurrency market stands out with its significant number of cryptocurrencies listed on a single exchange, including kimchi coins. This distinction becomes evident when comparing it to the global market. In the Korean market, the top 10 global cryptocurrencies, ranked by their market capitalization, account for 59% of the total market share. Meanwhile, in the global market, they represent 84.9%. This contrast indicates that the Korean market has a larger proportion of alternative coins, also known as altcoins, which are more susceptible to pump-and-dump schemes and other manipulative activities.According to a survey conducted by the Financial Services Commission in the second half of 2022, there were a total of 625 listed coins (excluding duplicate listings), with 389 (62.24%) of them being listed on a single exchange. Among these single-exchange listed cryptos, 223 were kimchi coins, which is equivalent to 57%.OHLCV data analysisIn this KIF paper, research analyst Baik Yeon-ju delved into abnormal price patterns within the Korean cryptocurrency market. She analyzed the hourly Open-High-Low-Close-Volume (OHLCV) data of kimchi coins in October 2021. The study revealed that out of a total of 16,560 hourly price and volume observations, approximately 4.7% exhibited characteristics consistent with P&D schemes. Baik noted that 91.3% (21 of the 23) observed kimchi coins witnessed such movements.Legislative effortsMeanwhile, it is encouraging that the South Korean National Assembly passed the Virtual Asset User Protection Bill during its plenary session on June 30. This legislation, set to go effective in July next year, aims to provide protection for customers’ assets in the virtual asset space. The act not only establishes regulations to combat unfair trading practices but also enforces penalties for non-compliance.Call for further measuresHowever, Baik suggested that policies should be further strengthened to enhance investor protection within the crypto market. In order to achieve this, she proposed the implementation of a monitoring system for virtual asset service operators (VASPs) and the allocation of inspection and investigation personnel, as well as technical resources. It is also necessary to address potential conflicts that may arise with the Act on Real Name Financial Transactions and Confidentiality, particularly if the data required from VASPs falls under the classification of financial transaction information and personal information.Furthermore, considering the lack of transparency surrounding many altcoins regarding their projects and exchange listings, Baik suggests that the upcoming second virtual asset bill should tackle this issue by regulating the issuance and disclosure of these cryptocurrencies. Additionally, she highlighted the importance of conducting research based on empirical data to detect abnormal transactions. This approach enables the recognition of existing issues and the acquisition of concrete evidence, which serves as a credible basis for policymakers to enact relevant legislation.