Bithumb Eliminates Trading Fees to Attract Investors and Gain Greater Market Share

Hong Kong Regulator Explores Tokenization to Transform Bond MarketThe Hong Kong Monetary Authority (HKMA), the local regulator within the Chinese autonomous territory, unveiled the outcomes of its Project Evergreen study on Friday. Within the report, it indicated an interest in harnessing tokenization in order to improve aspects of the bond market.Photo by Jimmy Chan on PexelsBond market impact assessmentIn this comprehensive report, the regulator delved into the intricate world of bond tokenization, offering an in-depth assessment of its potential impact on the market. The 24-page report covers a range of insights, spanning use cases and benefits to the challenges encountered during the study. The overarching sentiment emerging from the study paints tokenization as a compelling avenue for enhancing the bond market’s functionality.Eddie Yue, the Chief Executive of HKMA, emphasized that the study underscored the latent potential of integrating distributed ledger technology (DLT) into real capital market transactions, all within the framework of Hong Kong’s existing legal structure. In addition, the research revealed the prospect of DLT elevating efficiency, transparency, and liquidity within bond markets.Highlighting efficienciesThe report highlighted that the digital nature of tokenized bonds has the power to render paper certificates obsolete, ushering in an era of streamlined processes and diminished errors. Moreover, the study emphasized the capacity for various stakeholders to seamlessly interact via a shared DLT platform, fostering an environment of collaboration. Real-time data synchronization would ensure heightened transparency, a crucial factor in modern financial markets.Furthermore, the report identifies that a standout feature of tokenization lies in atomic delivery versus payment (DvP) settlements for bond transfers. This innovation serves to significantly expedite the settlement process while bolstering the case for end-to-end DLT adoption.That said, the report acknowledges the nascent state of bond tokenization. Yue emphasized that a plethora of challenges must be overcome before mass adoption becomes viable. The HKMA official underscored the necessity for regulatory frameworks to evolve alongside technology adoption.These insights arrive at a time when Hong Kong is carving its niche as a haven for crypto and decentralized finance endeavors. A multitude of enterprises are believed to be queuing up for a coveted Hong Kong crypto license, underscoring the city’s rising stature in the digital finance sphere.July saw Hong Kong’s announcement of a partnership with Saudi Arabia, focusing on tokenization and payments. Additionally, the HKMA is actively exploring the establishment of a regulatory framework for the digital Hong Kong dollar and stablecoins, heralding a commitment to the distributed ledger technology (DLT) application. An imminent seminar with industry stakeholders is planned, aimed at introducing DLT technology and fostering its adoption.Arthur Chan, HKMA Assistant Chief Executive, anticipates wider DLT integration, envisioning reduced settlement times for bond issuances and instantaneous settlement through tokenized cash and smart contracts. He acknowledges the evolving nature of DLT platforms, acknowledging the need for further research and development. However, Chan envisions a future where tokenization extends beyond bonds, potentially encompassing securities, real estate, and mortgage products.

Cryptocurrency exchange Backpack has recently forged a strategic partnership with Banxa, a global crypto on-ramp provider, to introduce a comprehensive digital asset on- and off-ramp solution. Onboarding into cryptoThis collaboration, announced by Banxa on Monday, marks a significant milestone for Backpack users globally. If crypto and Web3 are to live up to their promise, then on-ramping and onboarding people from conventional financial services is key to broadening out adoption. Given the service provided by Banxa, the partnership has great importance. Notably, Backpack Exchange, which recently secured a virtual asset service provider (VASP) from the Virtual Asset Regulatory Authority (VARA) in Dubai, emerged from the minds behind Solana's renowned Mad Lads NFT collection, adding a layer of credibility to this venture. Since then, the platform has been steadily expanding its operational footprint. Throughout the latter half of 2023, the exchange acquired several operational licenses across various jurisdictions worldwide, further solidifying its regulatory compliance and global presence. The platform’s user base spans across more than 130 countries. Banxa hit the headlines in the crypto sector earlier this month when it emerged that the firm’s UK affiliate had become the first entity in 2024 to take its place on the Financial Conduct Authority’s (FCA) crypto register.Photo by Shubham Dhage on UnsplashIndustry responseAnndy Lian, a Singaporean intergovernmental blockchain expert and the author of the book "NFT: From Zero to Hero," views this partnership as a game-changer for Backpack users. Lian told Cointelegraph that this link-up will add to the ease with which users can now engage in buying and selling cryptocurrencies using fiat currencies through various payment methods like credit cards, bank transfers and e-wallets. He emphasizes that such convenience will undoubtedly drive up the adoption and liquidity of Backpack and its associated tokens, thereby enhancing the overall user experience. Trading volume high pointThe announcement of this partnership comes on the heels of Backpack's achievement of surpassing $1 billion in 24-hour trading volume on Sunday, merely four days into the launch of its trading preseason. The exchange had already exceeded $300 million in daily trading volume within the first 24 hours of trading on Feb. 15. In light of this exponential growth in trading volume, Armani Ferrante, the founder and CEO of Backpack, took to the X social media platform to issue a word of caution to traders. Ferrante warned against potential overexcitement that might lead to unfavorable trading outcomes. Ferrante stressed the long-term vision of the platform and urged users to trade responsibly, emphasizing that Backpack has extensive development plans in store, with the preseason serving as just the beginning. Ferrante previously worked for bankrupt exchange platform FTX, which was seen as being at the center of the Solana ecosystem prior to its collapse. The Solana-based Backpack appears to be going some way in filling that void within the Solana community. With that, Solana-based trading pairs feature strongly in Backpack’s overall trading volume statistics. At the time of writing, SOL was trading at $109, down 1.7% over the course of the past 24 hours.  

Kazakhstan shuts out 980 non-compliant crypto exchanges in 2023Kazakhstan has implemented stringent measures in 2023 when it comes to regulating the crypto sector, resulting in the closure of 980 crypto exchanges that failed to comply with government regulations.That’s according to a press release published by the Central Asian country’s Financial Monitoring Agency (FMA), the state entity responsible for anti-money laundering (AML) policy. These measures, taken over the course of the year, were highlighted during the 39th Plenary Week of the Eurasian Group (EAG) in the resort city of Sanya, in Hainan province in China.Photo by Kuralbek Djumagaziev on UnsplashCombating money laundering threatsThe seminar served as a platform for participating countries to exchange experiences, with an emphasis on leveraging advanced technologies, including artificial intelligence, to effectively combat emerging threats related to money laundering and terrorist financing. The Kazakhstani delegation played a leading role in discussions on virtual assets.Ruslan Ostroumov, the Head of Kazakhstan’s Financial Monitoring Agency, showcased the country’s legislative regulations and robust measures to combat the illegal turnover of digital assets. Ostroumov reported the blocking of 980 illegal cryptocurrency exchange platforms in the current year. Additionally, nine investigations into illegal exchange operations, amounting to $36.7 million, have been initiated, accompanied by ongoing preventive measures.Registration process complexityWhile the seminar’s organizers commended Kazakhstan for its proactive stance against financial crimes in the virtual assets space, the country’s crypto laws have added complexity to the registration process for exchanges.In November, the Kazakhstani authorities blocked local access to the Coinbase website due to potential violations of the country’s digital asset legislation. This decision aligned with the law on digital assets, effective since February 2023, which prohibits the issuance and trading of digital currencies and cryptocurrency exchange businesses without proper licensing.While challenges remain for crypto platforms within Kazakhstan, some have been successful in their efforts. In May, crypto derivatives trading platform Bybit was successful in gaining approval to offer its services within the country. Binance followed suit in June, securing preliminary approval. Other platforms such as CaspianEx, Biteeu, ATAIX, Upbit, Xignal and MT have been granted permission to conduct trade in Kazakhstan.In December 2020, Kazakhstan formally legalized cryptocurrency mining, and on May 6, 2021, the National Bank of Kazakhstan announced plans to issue a “digital tenge,” their version of a central bank digital currency (CBDC). Various CBDC-related projects have followed. In September, the National Payment Corporation, an entity which will be responsible for CBDC development, was launched. The same month, the National Bank of Kazakhstan entered into a collaboration with financial messaging service SWIFT to work on an interoperable CBDC connector.For the most part, these comprehensive regulations and the issuance of a CBDC signify Kazakhstan’s broader acceptance and adaptation to the cryptocurrency landscape. Authorities internationally are trying to find a balance between adequate regulation and enabling innovation to take place. Kazakhstan is no exception, and with that, there are bound to be challenges as regulatory frameworks are optimized and tweaked along the way.