HashKey OTC scores in-principle approval in Singapore

The long-awaited approval of spot bitcoin exchange-traded funds (ETFs) in the U.S. on Tuesday is anticipated to have a more substantial impact on the development of cryptocurrencies in Asia. That’s the view of Yat Siu, the co-founder of Animoca Brands, a Hong Kong-based crypto venture capital and game software firm. The U.S. Securities and Exchange Commission's (SEC) approval is expected to attract new capital to the crypto industry, providing a safer avenue for the crypto-curious.Photo by André François McKenzie on UnsplashPotential for surge of interest in AsiaIn an interview with The Block, Siu emphasized the positive effect on Asia, attributing it to the region's regulatory clarity and the willingness of governments and regulators to build a crypto ecosystem. Strengthening regulatory oversight was a finding of a recent report relative to a number of Asian hubs. Industry leaders believe that the approval of spot bitcoin ETFs in the U.S. could lead to a surge of interest in Asia, where crypto adoption is already higher than in other continents. The perception of cryptocurrencies as investment assets, rather than just for transactions, might shift in the Asian market, with the ETF offering a regulated and lower-risk avenue for investment exposure. Additionally, Yat Siu noted that Asian investors, particularly the younger generation, have a more open view towards capitalism compared to their U.S. counterparts. In a recent interview with CNBC, Australian venture capitalist and founder of MHC Digital Group, Mark Carnegie, also expressed the opinion that the digital asset markets in Asia would flourish once the hype of the U.S. ETF approval has subsided. ETF focus on Singapore and Hong KongPost the U.S. approval, attention turns to Asia, with Hong Kong and Singapore emerging as potential candidates for introducing spot crypto ETFs. Hong Kong, in particular, has undergone regulatory renewal, positioning itself as a crypto hub, with it reportedly already attracting interest from fund managers, including those backed by Chinese capital, looking into launching spot crypto ETFs. Yat Siu alongside Glenn Woo, Head of Sales of APAC at Web3 infrastructure company Blockdaemon, were both positive in their assessment of Hong Kong as a worthy location for the offering of spot bitcoin ETFs in comments made last month. In November, the CEO of Hong Kong’s Securities and Futures Commission (SFC) indicated an openness to considering proposals for spot crypto ETF products aimed at retail investors. Singapore, known for its mature regulatory environment, is also considered a strong contender. Meanwhile, Japan may witness significant regulatory movement following the U.S. ETF approval. However, challenges and variables remain for Asia. The scale of capital inflows in Asia, compared to the U.S., and the caution of regulators in the face of crypto industry volatility and trust issues are cited as potential hurdles. Some experts suggest that Hong Kong and Singapore may initially be cautious in encouraging retail participation in virtual asset investments due to previous losses experienced by residents. Still, in the medium to longer term, increased interest and appetite for virtual assets are expected.  

DBS Bank, a key player in Singapore's banking sector, has unveiled a substantial reorganization of its operational framework, which includes its digital asset exchange business, DDEx. Global Financial Markets (GFM)Effective March 1 DBS will consolidate its equity capital markets, brokerage arm DBS Vickers and the DBS Digital Exchange (DDEx) into its Treasury Markets division. In doing so, it will form a unified entity known as Global Financial Markets (GFM). This amalgamation underscores DBS's intention to merge conventional financial services with the burgeoning digital assets landscape, contributing towards a new era of financial integration and innovation. DDEx, a members-only exchange facilitating exposure to digital assets for accredited investors, financial institutions and family offices, will now operate under the umbrella of GFM. This strategic integration aims to leverage the synergies between traditional and digital financial spheres, positioning DBS at the forefront of transformative financial solutions.Photo by Meriç Dağlı on UnsplashDDEx founder retiresThe announcement of this restructuring coincides with the retirement of Eng-Kwok Seat Moey, a revered figure within DBS, whose 36-year tenure has left an indelible mark on the bank's trajectory. Eng-Kwok's contributions to DBS's equity capital markets and the development of Singapore's REITs industry are widely recognized, as is her pivotal role in spearheading the DBS Digital Asset Ecosystem (DAE) and the founding of DDEx. Under her stewardship, DBS has consistently ranked atop regional league tables, driving innovation and excellence in Singapore's financial landscape. Eng-Kwok's legacy extends to her instrumental role in establishing the DBS Digital Asset Ecosystem (DAE), a pioneering initiative offering a spectrum of digital asset services, including origination, distribution, custody and trading. Andrew Ng, the current head of Treasury Markets, assumes leadership of the newly formed GFM group. His expertise will be instrumental in navigating the complexities of global finance, blending traditional market mechanisms with the innovative potential of digital assets. Clifford Lee, renowned for his proficiency in fixed income, will expand his purview to encompass investment banking, overseeing both debt and equity capital markets alongside his responsibilities at DBS Vickers. Capitalizing on complementary strengthsThe consolidation of DBS's financial arms not only aims to streamline operations but also seeks to capitalize on the complementary strengths of traditional and digital financial domains. Piyush Gupta, CEO of DBS, expressed confidence in the merger's ability to unlock greater synergies, enabling the bank to deliver a comprehensive suite of financial solutions to its clientele. DDEx has been at the forefront of digital asset trading in Asia, witnessing significant growth in bitcoin and ether transactions in recent years. Notably, DDEx has explored avenues such as security token offerings (STOs) and it has ventured into the metaverse realm with investments in projects like The Sandbox. Additionally, DBS's Chinese subsidiary launched a digital yuan merchant solution, facilitating payments in the new currency for mainland enterprises. As DBS embarks on this latest transformation, the integration of digital assets into its core financial operations underscores its interest in innovation within a rapidly evolving financial landscape.

Singapore and the Philippines Lead Crypto Interest in Southeast AsiaSingapore and the Philippines have emerged as the frontrunners in Southeast Asia’s crypto landscape in 2023, capturing the majority of regional interest.Research carried out by Malaysian cryptocurrency data aggregator CoinGecko reveals that on a per capita basis, Singapore holds a 43.5% share of crypto interest, followed closely by the Philippines with 40.3%.Photo by Kenneth Koh on UnsplashRegional crypto hubSingapore has established itself as a crypto hub not only within Southeast Asia but also in the wider Asia region. It was previously ranked as the third most crypto-curious country globally and has consistently been one of the top Web3 gaming countries for three consecutive years.Other countries in Southeast Asia, including Malaysia, Thailand, Vietnam, and Indonesia, also contribute to the region’s crypto interest, although at more modest levels. Combined, these countries represent 14.7% of the per capita crypto interest in the region so far this year.GameFi driving interestIn the Philippines, crypto interest is primarily driven by GameFi, and the country has maintained its position as the leading Web3 gaming country from 2021 to 2023. The Philippines witnessed the Axie Infinity mania, with local gaming guilds and inspiring rags-to-riches success stories. Additionally, it was among the top countries embracing meme coins earlier this year, alongside Malaysia.Vietnam shares a strong interest in GameFi, placing it among the top Web3 gaming countries for three consecutive years. Thailand and Indonesia have witnessed substantial trading volumes on their crypto exchanges, with $37.94 billion and $23.97 billion respectively in 2022.Notably, Malaysia has a significant presence in the crypto industry, despite its relatively smaller impact. The country is home to two prominent crypto data tools, CoinGecko and Etherscan, which were founded by Malaysian teams and are headquartered in the country.In contrast, smaller Southeast Asian economies such as Cambodia, Myanmar, Brunei, Laos, and Timor-Leste have a combined share of only 1.5% of regional crypto interest per capita. While these markets remain largely untapped, their low adoption rates are unlikely to improve in the near term. Except for Brunei, which is a wealthy nation, the smaller Southeast Asian economies are categorized as lower-middle income countries.Regarding the specific cryptocurrencies drawing attention in Southeast Asia in 2023, Layer 1, GameFi, meme coins, and DeFi-related crypto have emerged as the most popular categories. The top-ranking cryptocurrencies within these narratives account for 22.2% each of the region’s interest so far this year.The Philippines, as the top Web3 gaming country, showcases three GameFi cryptocurrencies — Smooth Love Potion (SLP), Ronin (RON), and Wemix (WEMIX) — among its most popular choices. Malaysian investors also show interest in DeFi projects like Maple (MPL) and BoringDAO (BORING), in addition to Bitcoin.Singapore’s popular crypto choices include The Graph (GRT), Bitcoin (BTC), and Pepe (PEPE). Vietnam demonstrates ongoing interest in Aptos (APT) and privacy tool Bob (BOB), while Thailand focuses on Gala (GALA) and Canto (CANTO). Finally, Indonesia monitors Not Financial Advice (NFAI) and AirSwap (AST).Overall, Singapore and the Philippines lead the way in crypto interest within Southeast Asia, while other countries in the region also contribute to the evolving crypto landscape.