Historic ruling sees Dubai court validate crypto as salary payment

SK C&C to provide ChainZ Security Token service for Hana SecuritiesSK C&C, a comprehensive digital solutions provider and the affiliate of South Korean conglomerate SK Group, announced Tuesday (local time) that it will provide the blockchain-based ChainZ Security Token service to Hana Securities for the securities firm’s construction of a security token system.Security tokens enable the conversion of assets such as real estate, art and carbon credits into digital tokens. These digital representations open up opportunities for retail investors to make fractional investments in assets that were previously beyond their reach due to high minimum investment requirements.Hana Securities’ involvement in security tokens emerged when its parent company, Hana Financial Group, joined a consortium called the Next Finance Initiative (NFI) in June to expand the security token ecosystem. In this collaborative effort, Hana Securities is set to develop infrastructure that will enable the establishment of extensive security token services. This infrastructure will support functions such as the issuance, distribution and procurement of security tokens.Photo by Shubham Dhage on UnsplashSecurity tokens on EthereumThe ChainZ platform allows the creation, issuance and trading of tokenized assets on the Ethereum network by simply calling an application programming interface (API). The company explained that being compatible with several Ethereum standards, including ERC-20, ChainZ enables users to create diverse token-related services with just a few clicks.SK C&C will leverage the ChainZ platform, which supports distributed ledger services, to manage token offerings and allocations. Additionally, the company will offer security token-related services, which will include processing investor orders and facilitating the buying and selling of tokens.Choi Cheol, Head of SK C&C’s Web3 and Convergence Group, said that the security token system of Hana Securities will lay a foundation for securities firms to adopt security token services and engage in business collaborations with each other. According to Choi, SK C&C is committed to providing secure trading services for security tokens, catering not only to securities companies but also to a broader range of enterprises and general investors. The tech company is also planning to take an active role in NFI and other consortiums with securities firms as a part of its strategy to enhance these efforts further.

In an effort to safeguard crypto investors from falling prey to misleading advertisements, the Securities and Exchange Commission (SEC) of Thailand has intensified its scrutiny of promotional campaigns within the crypto sphere.  Broker agent eventsOn April 29, the Bangkok Post reported that the SEC has raised concerns regarding the potential violation of local regulations through introducing broker agent (IBA) events. These events, the SEC clarified, may breach regulations as IBAs are only permitted to promote digital token services to deter speculation on cryptocurrencies, categorized as high-risk assets. IBAs, acting as local conduits for partner digital asset exchanges, typically earn commissions by onboarding clients within a specific market. Such practices are common for exchanges or brokers that don't directly operate in certain markets. Deputy Secretary-General Anek Yooyuen conveyed the commission's unease over crypto exchanges offering preferential treatment to onboard users. Yooyuen stated: "When operators organise sales promotions by offering rewards to entice people to use the service, this could encourage use of the service without considering the investment risks. This is especially the case for cryptocurrencies.”Photo by Than Diep on UnsplashWarning of consequencesHe cautioned that failure to adhere to these guidelines would result in “punishment according to the law.” While cryptocurrency exchanges are legal in Thailand, they must secure local approval. Notably, last month, Thailand even greenlit asset management firms to launch private funds, offering Bitcoin exchange-traded funds (ETFs) exclusively to institutional and ultra-high-net-worth investors. Nonetheless, the country recently prohibited the sale of cryptocurrency lending products and mandated that exchanges prominently display risk warning messages. International regulatory trendThis move by the Thai SEC mirrors actions taken by regulators in other major crypto markets. For instance, the United Kingdom's Financial Conduct Authority (FCA) issued 450 alerts for illegal crypto ads in 2023 alone. Similarly, Spain’s principal securities market regulator, the National Stock Market Commission, denounced fraudulent crypto asset promotions in November 2023, emphasizing companies’ obligations to adhere to local laws. Thai advertising guidelines mandate businesses and advertisers to substantiate the “facts” presented in their campaigns, failing which could lead to legal repercussions. A recent incident provides a case in point. Hackers hijacked advertisements on Etherscan, redirecting users to phishing sites aimed at draining crypto wallets. Scam Sniffer, a blockchain investigation firm, attributed the widespread phishing campaign to the inadequate oversight by advertisement aggregators. The company made the following statement on the matter: “Etherscan aggregates ads from platforms like Coinzilla and Persona, where insufficient filtering could lead to exposure to phishing attempts.” The wallet drainer scam involves enticing users to counterfeit websites and coercing them to link their crypto wallets, enabling scammers to siphon funds into their own wallets without user authentication or consent. This is not the first time that the authorities in Thailand have homed in on crypto-related advertising. In August 2023, the southeast Asian country’s Ministry of Digital Economy and Society (MDES) outlined that it had engaged with social media firm Meta, owner of Facebook, informing it that its response to the proliferation of fraudulent platform ads relative to crypto had been inadequate. 

Bitget Launches Crypto Loans ProductBitget, the Seychelles-based platform known for its crypto derivatives and copy trading services, is venturing into the cryptocurrency loan market with the introduction of its Crypto Loans product.The move, which the company announced via a press release published on Tuesday, is aimed at attracting users who are seeking alternative funding solutions backed by digital assets, as an option beyond traditional credit institutions.Photo by Traxer on UnsplashDual coin approachThe Crypto Loans product employs a dual-coin approach, allowing users to stake one digital asset as collateral and borrow an equivalent amount in another asset. Bitget believes that crypto loans have been gaining popularity in recent years, with the overall digital lending sector surpassing $8.5 billion in 2022 and experiencing a compound annual growth rate of 20.5%, as reported by Global Market Insights.Despite the overall growth in the digital lending area, the crypto loan sector faced significant setbacks in 2022, particularly with the troubles surrounding centralized crypto lending services. Major firms like Celsius, BlockFi, and Voyager Digital suffered collapses and bankruptcy, raising concerns about the trustworthiness of such services in the future.Bitget, however, is confident in its Crypto Loans product, emphasizing that it has streamlined the loan process to ease user onboarding. The amount users can borrow is determined by the market value of the collateral staked, and the loan is automatically disbursed with a specific interest rate. Borrowers have the flexibility to utilize the funds as needed and adjust the collateral based on their requirements.Swift loans processIt also has the option to repay the loan before or at the predetermined deadline. To further encourage user adoption, Bitget promises support for withdrawals and a swift review process for loan applications. The feature is expected to provide added convenience and ease of use for users.Bitget’s Managing Director, Gracy Chen, highlighted the advantages of the Crypto Loans product, noting that users can now stake less-demanded coins and obtain loans in more liquid assets for investment purposes. The platform’s flexible borrowing and repayment mechanism is designed to accommodate the needs of all users, ensuring convenience and accessibility.Notably, Bitget has been expanding its presence in the crypto market. In March, the platform acquired a controlling stake in BitKeep, a crypto wallet that has been rebranded as Bitget Wallet. Additionally, Bitget unveiled a $100 million venture fund in April, following a $10 million investment from Dragonfly Capital. In May, it announced the launch of its Blockchain4Youth program, recognizing the importance of the younger demographic in achieving crypto mass adoption.As Bitget ventures into the crypto loan market, it’s aiming to go one further than previous crypto lending providers who have largely failed, to provide a secure and user-friendly platform for borrowing and lending digital assets. The success of the product will depend on user trust and confidence, especially given the setbacks experienced by those other players in the sector in the past. Nonetheless, with its growing user base and strategic investments, Bitget is certainly showing some potential relative to making a mark in the cryptocurrency loan market.