Monthly Active Users of Binance in South Korea Surpasses 230,000

In the face of a crypto trading ban imposed in 2021, the cryptocurrency market in China continues to thrive, defying the odds, according to a recent report from Kyros Ventures. Regional survey and reportThe Vietnam-based blockchain-focused startup incubator and venture capital firm has presented its report findings, shedding light on the unique dynamics of the Chinese crypto landscape compared to neighboring countries such as South Korea, Vietnam, Taiwan and Thailand. The survey was conducted in December in collaboration with 10 media agencies across the region, involving over 5,000 participants to gauge their sentiments and investment patterns.Photo by Road Trip with Raj on UnsplashGreater crypto interestMore than 70% of respondents revealed that cryptocurrencies accounted for over half of their asset portfolios. Among survey respondents in China, 88.9% reported heavy investments in cryptocurrencies, surpassing the enthusiasm observed in Vietnam, South Korea, Taiwan and Thailand. The finding is surprising, given that cryptocurrency trading is prohibited in China, while in the other jurisdictions the same level of restrictions is not in place. China's crypto scene faces substantial regulatory hurdles, with a government ban on crypto trading implemented in 2021. Despite this, the report highlights that a majority of Chinese investors opt for centralized crypto exchanges (CEXs) for their trading activities. Arthur Hayes, the founder of crypto derivatives platform BitMEX, recently outlined that wealthy individuals in China have access to international banking, and with that, access to overseas cryptocurrency platforms through the Chinese autonomous territory of Hong Kong. An investigative report produced by the Wall Street Journal in 2023 found that leading global crypto exchange Binance continues to have a thriving business relative to its Chinese user base. The Chinese authorities appear to be aware that the crypto trading prohibition that has been applied by the government is being flouted. This is demonstrated by the fact that the government is looking to update its anti-money laundering rules for the first time in 17 years to account for the rise in cryptocurrency investment, trading and use. Higher risk appetiteNotably, 33.3% of Chinese investors indicated an allocation to stablecoins. That is indicative of a greater risk appetite in China by comparison with countries like South Korea and Vietnam where 43% and 59% of respondents had money allocated in risk-off stablecoin positions. In terms of investment by referral, Thailand and China emerged with the highest rates, reaching up to 80%. Previous research carried out by Kyros earlier in 2023 highlighted the significance of crypto investment via referrals within the Vietnamese market. Developing regional regulatory landscapeThe regulatory landscape in Asia witnessed significant developments in 2023, with Hong Kong emerging as a leading hub for crypto and Web3 innovation. The issuance of cryptocurrency exchange licenses in Hong Kong marked a pivotal moment for the industry in the region. In South Korea, new legislation aimed at protecting cryptocurrency users, enhancing transaction transparency and fostering market discipline was enacted. Meanwhile, Taiwan's Financial Supervisory Commission explored the possibility of allowing crypto exchange-traded funds, pending a thorough analysis of the product's development in global markets.  

Amberdata Expands into Asia-Pacific with New Hong Kong OfficeAmberdata, a provider of digital asset data and analytics for institutional customers, is making significant strides in expanding its presence with the announcement of a new office in Hong Kong, marking its entry into the Asia-Pacific (APAC) region.Photo by Pixabay on PexelsMarket data offeringThe company published a press release on Tuesday, providing details on the milestone. The strategically positioned Hong Kong office will provide local sales and support to APAC customers, granting them access to Amberdata’s suite of products. These offerings include extensive on-chain, DeFi, spot, and derivatives market data, along with valuable market intelligence.Tongtong Gong, the COO and Co-Founder of Amberdata of the US-based firm, will spearhead the company’s operations in the region. Gong, expressing her excitement about returning to her home country, shared her aspirations to contribute to the growth of Amberdata’s presence in Asia.She highlighted the burgeoning development of Web3 in Hong Kong, which benefits from a clear regulatory environment and strong government support, making it an exceptional location for the new office.Industry trends eastwardsThe expansion into APAC by Amberdata aligns with the global trend of accelerating institutional adoption of cryptocurrencies and digital assets. By addressing the increasing demand for institutional-grade data infrastructure and analytics, Amberdata is positioned to serve as a crucial partner to financial institutions.The company’s foray into APAC is yet another demonstration of a trend among US-based digital assets companies to establish themselves in the east, where the regulatory environment is developing in a much more progressive, forward thinking way by comparison with the United States.Shawn Douglass, the CEO of Amberdata, said that the move was with a view towards expanding its presence in Asia, “to deliver the highest quality digital asset data and analytics to institutional investors in the region.”Hong Kong’s crypto credentialsHe emphasized the growing prominence of Hong Kong as one of Asia’s leading crypto hubs and highlighted the city’s suitability as the location for their new office. The establishment of a local office enables the company to effect a more direct sales and support pipeline to both new and existing customers within APAC.Amberdata holds a paramount position as the leading provider of digital asset data. Their comprehensive insights into blockchain networks, crypto markets, and decentralized finance seek to empower financial institutions with invaluable data for research, trading, risk assessment, analytics, reporting, and compliance.Also on Tuesday, the company added new product features. Taking to Twitter, Amberdata outlined the addition of derivatives data relative to a well-known trading and futures options platform, the Chicago Mercantile Exchange (CME). Service users are also now being given complete visibility on externally owned accounts and wallets within lending and borrowing protocols.As financial institutions increasingly enter the digital asset class and participate in digital asset markets, Amberdata’s robust infrastructure is being positioned as a vital component, enabling them to make informed decisions and navigate the dynamic landscape effectively.

Zipmex proposes creditor repayments of 3 cents on the dollarBeleaguered Singaporean crypto exchange Zipmex has unveiled a restructuring proposal aimed at repaying creditors. According to a report published by Bloomberg on Wednesday, the initial offer stands at 3.35 cents for every dollar of the creditors’ claims.Photo by Alexander Grey on UnsplashRestructuring challengesThis restructuring proposal unfolds against the backdrop of a challenging period for Zipmex, triggered by the aftermath of last year’s crypto price downturn. The crypto exchange, which operates in Thailand, Indonesia, Australia and Singapore, is currently undergoing a court-supervised restructuring process based in Singapore.In its efforts to restructure the business, Zipmex is grappling with a debt of $97.1 million. That total debt level is contingent upon the eventual recovery of assets. Bloomberg cited sources familiar with the matter, suggesting that depending on the success of these recovery efforts, the repayment figure could potentially surge to 29.35 cents per dollar.Creditor dissatisfactionHowever, not all major creditors are on board with Zipmex’s proposed plan. Expressing reservations, they are pushing for an independent review to scrutinize recent changes in the company’s assets and liabilities, as outlined in an Oct. 4 court document. This external examination is deemed crucial to ensuring transparency and fairness throughout the restructuring process.In response to these developments, Marcus Lim, the Group Chief Executive Officer of Zipmex, refrained from providing detailed comments due to the confidentiality of the ongoing arrangement. While acknowledging inaccuracies in information sourced from external outlets, he chose not to elaborate on them further.Investor deal failureA previous attempt to sell Zipmex to V Ventures, a subsidiary of Thoresen Thai Agencies, fell through. To add to the struggling company’s woes, it emerged earlier this week that Thailand’s securities regulator, the Securities and Exchange Commission (SEC) recently instructed Zipmex to halt operations in the country due to insufficient net capital.The company had been fined 11 million baht ($315,000) by the SEC earlier this year. The SEC cited the co-mingling of corporate and customer funds as one regulatory breach. Furthermore, the Thai regulator claimed that between May and July 2022, Zipmex “did not have in place a system to effectively prevent conflicts of interest in such matters and the business operation does not have an adequate risk control system.”In response to this recent regulatory directive, Zipmex Limited issued a statement to its customers, expressing its commitment to ensuring proper and compliant business operations in line with the criteria set by the Thai SEC. Consequently, the temporary suspension of digital asset trading and deposit of all types was deemed necessary.The intricacies of Zipmex’s financial restructuring will be closely watched by market observers, especially considering the volatility in the crypto market and the regulatory challenges faced by the company in multiple jurisdictions. The success of the proposed repayment plan, contingent upon asset recovery, remains uncertain, leaving creditors and industry stakeholders on edge.As Zipmex grapples with these multifaceted challenges, its future trajectory hinges on navigating both the demands of the bankruptcy process alongside regulatory requirements.