Thailand Pushes Back Against Facebook-Enabled Crypto Scams

UBS extends crypto ETF access to clients in Hong KongMultinational investment bank UBS Group AG has followed suit with competitors like HSBC, enabling its wealthy clients in Hong Kong to engage in the trading of select crypto-linked exchange-traded funds (ETFs).Photo by Pierre Borthiry — Peiobty on UnsplashRegulatory approval to offer three ETFsThis move, reported by Bloomberg on Thursday, aligns with Hong Kong’s efforts to establish itself as a prominent digital asset hub. Citing an undisclosed source, Bloomberg outlined that three crypto ETFs, namely the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures and CSOP Ether Futures, have received approval from the Securities and Futures Commission (SFC) and will be available on UBS’s Hong Kong platform starting this Friday.The inclusion of these ETFs allows UBS clients to diversify their investment portfolios, offering exposure to the dynamic crypto market. Educational materials will also be accessible to clients, aiding in their understanding of associated risks. While UBS declined to comment on this development, it marks a strategic move by the Swiss bank to tap into the growing demand for crypto-related investment products.In June, Hong Kong’s largest bank, HSBC, moved to expand its offering to include crypto ETFs. It has made available the very same crypto ETFs as UBS is about to offer.Hong Kong’s crypto credentialsHong Kong introduced a comprehensive digital asset regulatory regime on June 1, aiming to safeguard investors while fostering the Chinese autonomous territory’s emergence as a digital financial center. The SFC permits retail investors to trade major tokens on licensed exchanges under these regulations.Despite these regulatory advancements, Hong Kong faced setbacks, notably with the recent issues surrounding the unlicensed JPEX exchange, which led to increased scrutiny. The establishment of a joint task force between the SFC and the police aims to monitor and prevent suspicious activities within the crypto industry.Globally, financial institutions remain cautious about compliance risks in the crypto sector. However, signs of increased engagement are emerging. DBS, Singapore’s largest bank, has expressed its intention to seek a license to offer crypto services to Hong Kong customers. ZA Bank, the largest virtual bank in Hong Kong, plans to provide token-to-fiat currency conversions over licensed platforms. Furthermore, SEBA Bank, backed by the Julius Baer Group, has obtained a license for its unit to offer crypto services in Hong Kong.Unlocking ETF potentialA report published by the Hong Kong Stock Exchange in April claimed that crypto ETFs possess the potential to unlock the next phase of digital asset expansion in Asia. Earlier this week, it emerged that regulators were open to the notion of allowing retail access to spot crypto ETFs in Hong Kong, provided that the necessary regulatory approvals and checks were in place.The inclusion of the CSOP Bitcoin Futures and CSOP Ether Futures funds on UBS’s platform highlights the gradual recovery of the crypto sector from the market rout experienced in 2022. Despite the previous market challenges and collapses, the prospect of the U.S. allowing its first spot Bitcoin ETFs has contributed to a resurgence in the largest token’s price this year. The move by UBS aligns with the broader trend of financial institutions cautiously embracing the crypto economy, indicating a shifting attitude toward these digital assets in the financial mainstream.

Dubai's regulator, the Virtual Asset Regulatory Authority (VARA), has been ahead of the curve by comparison with its peers internationally in getting a crypto regulatory framework in place, and now it's moving to tweak those regulations further. In a press release published via ZAWYA on Sept. 26, VARA announced an update to its crypto regulations which specifically deals with marketing. Its addition of “Marketing Regulations for Virtual Assets and Related Activities 2024” applies to virtual asset service providers (VASPs) operating within the Emirate of Dubai. In tandem with the updated regulations, VARA has published a marketing guidance document to assist VASPs in abiding by the regulations, providing detailed instructions and outlining best practices in terms of the application of appropriate marketing activities. Photo by ZQ Lee on UnsplashMandatory disclaimerOne of the new requirements demanded by the regulator is that marketing content related to digital assets should incorporate a disclaimer outlining to investors that there are financial risks associated with digital assets. To that end, from October 1 onwards, VASPs are required to add the following disclaimer, prominently displayed, within product marketing material: “Virtual assets may lose their value in full or in part and are subject to extreme volatility.” In its guidance documentation, VARA has stipulated that any content which contains contradictory messaging or information provided to users in “small print” is not deemed to be acceptable. The rules apply to both licensed entities and any unlicensed entities that attempt to offer a service within the Emirate of Dubai.  Consumer protectionThe motivation behind the regulatory update is the protection of consumers through the prevention of the dissemination of misleading information. The regulator wants consumers to be well-informed about crypto products, such that they’re aware of both the risks and opportunities associated with digital assets. VARA has set out a schedule of fines, broken down by category, with fines of up to 10 million United Arab Emirates (UAE) dirhams (AED), around $2.7 million, applying for those who do not comply. Commenting on the updated regulations, VARA CEO Matthew White stated: “Our updated marketing regulations and the newly issued guidance document reflect our commitment to maintaining Dubai’s position as a global leader in digital finance. We believe that by providing clear and actionable guidance, we can help VASPs deliver their services responsibly, while fostering greater trust and transparency in the market." The Dubai regulator isn’t the only one to home in on the marketing approach taken by crypto service providers. Since October 2023, the UK Financial Conduct Authority (FCA) has implemented new rules which specifically deal with the marketing of crypto products and services. Many crypto platforms found the new requirements too arduous to follow. Some withdrew from the market while others did so on a temporary basis while working towards becoming compliant. Within the European Union, the Markets in Crypto Assets (MiCA) regulation came into force in June 2023. Those regulations demand that crypto service providers provide information and conduct marketing activities in a clear, fair and non-misleading manner.

Crypto Titans Clash on Elon Musk’s XA subtle panel discussion photo posted by Andrei Grachev of Singapore’s DWF Labs turned into a war of words among crypto trading titans on Elon Musk’s X (formerly Twitter).Photo by Marek Piwnicki on UnsplashDWF vs GSRGrachev, who is a Managing Partner at the market maker and Web3 investment firm, thanked his fellow panelists in the post. However, the tone quickly soured as Cristian Gil, Co-Founder of rival market-making giant GSR, took offense to Grachev’s presence on the panel and voiced his disapproval on the platform.Gil didn’t mince his words, stating: “[Andrei Grachev] had absolutely no business to be on that panel. It’s insulting to [GSR] , [OKX] and [Wintermute] to be in the same room as [DWF Labs].”DWF vs WintermuteHis remarks received a “Like” from Evgeny Gaevoy, the CEO of market maker Wintermute. In response, Grachev defended his presence, asserting that DWF was superior in technology, trading, and business development compared to its rivals, going so far as to suggest to Gil: “Yeah, if I were you — I would be also crying all the time.”The exchange continued with Grachev claiming that DWF was capturing market share from Wintermute, and Gaevoy responded with a nonchalant “lol,” challenging Grachev to invest more if he believed DWF posed a threat.DWF Labs’ rapid growthWhile the exchange consisted of mere words, it shed light on DWF Labs’ sudden rise to prominence earlier over recent months. The company has featured prominently in an array of investments in Web3 startups and blockchain networks over the course of 2023. Prominent among them have been investments in EOS, the Algorand ecosystem, and the TRON ecosystem.Recently appearing on the BlockBeats podcast, Grachev defended the company, outlining that it was not involved in market manipulation in response to recent assertions to the contrary.“We do not engage in any manipulative behavior,” Grachev stated. “Of course, we have the futures market, which is a tool for hedging positions and trading clubs. We are completely different from directional traders,” he added.Gaevoy added some humor to the mix by sharing a meme, raising questions about the maturity level of these prominent figures in the crypto industry. The spat provoked a broad array of commentary from the crypto community.Crypto immaturityThe very public clash raises concerns about how traditional Wall Street firms, currently making bold moves into the crypto space, might perceive such behavior. Notably, firms like BlackRock have been involved in Bitcoin ETF applications, signaling a growing interest in cryptocurrency among mainstream financial institutions. In response to Gaevoy and Grachev, one commentator wrote: “The institutions are never coming back.”While it would appear that there’s no love lost between DWF, GSR, and Wintermute, it also seems evident that both market makers can agree on Singapore as being an appropriate location from where to operate a crypto business. While Wintermute is London-based, it revealed recently that it was expanding its operations in Singapore. Like Wintermute, GSR is primarily based in London although it too maintains a presence in Singapore to service Asia-centric business.