p0x Labs Secures $25M Funding to Propel Manta Network Into Asia

Further Setback for Luno With Loss of Top ExecGlobal crypto exchange Luno has been challenged of late, with job cuts, the closure of its presence in Singapore and now the loss of a key executive from the company.According to a report published by CNBC on Tuesday, the embattled crypto firm is losing Vijay Ayyar, its Vice President of Corporate Development and International. The setback follows an announcement last month by the company to withdraw its presence from the Singaporean market.Photo by Marten Bjork on UnsplashUnrelated to Singapore closureAyyar made the following comment via WhatsApp message: “I’ll be leaving Luno after 7 years at the company. Given the time I’d spent at Luno, it just seemed like it was time for another challenge.” It’s understood that Ayyar has confirmed that Luno’s move to exit Singapore (where he was based) was not related to his own decision to move on. Instead the top executive has said that he will be joining another company within the crypto and over-arching Web3 space.Luno management had previously outlined that its decision to exit Singapore formed part of an overall “evaluation of [its] global strategy and presence.” As part of its retreat from that South East Asian market, it withdrew its licensing application from consideration by the local regulator, the Monetary Authority of Singapore (MAS).At the time of that announcement, the company stated: “ It’s not a decision we’ve taken lightly. It’s always been our mission to put the power of crypto in everyone’s hands. This is still true.”Organizational changesThe company is clearly going through a period of adjustment from a staffing and resourcing perspective. Last month, Luno announced that its co-founder, Marcus Swanepoel, would be stepping down as CEO. Filling his boots in that role will be Luno’s Chief Operating Officer (COO), James Lanigan.This organizational upheaval follows a further setback in January, when the company announced a 35% cut in headcount. The decision for those job cuts was taken as a knock on reaction to what had been a very challenging trading environment for Luno and crypto companies generally during a year long crypto bear market in 2022.A troubled parent companyLuno’s difficulties have been further compounded given that it is a portfolio company of crypto industry conglomerate, Digital Currency Group (DCG). DCG had acquired the company in 2020. DCG also owns digital assets-focused financial services firm Genesis which filed for bankruptcy in January. It owes $575 million to Genesis in a scenario that places DCG itself in default risk.Genesis and DCG have recently entered into a 30 day mediation process in order to reach a resolution relative to creditors who participated in the Gemini Earn programme associated with the Gemini cryptocurrency business run by Cameron and Tyler Winklevoss.As yet DCG has not sought to sell off any of its portfolio companies which includes Grayscale, CoinDesk and Foundry. However, it’s understood that Luno has hired investment bank Canaccord Genuity in an effort to garner suitors who would be interested in investing in the company. This may be part of a plan to unburden the troubled DCG parent company.

Huobi Aims for Hong Kong License Within 6–12 MonthsAccording to Justin Sun, the founder of layer one blockchain Tron and advisor to Huobi, the cryptocurrency exchange could have obtained a crypto trading license in Hong Kong by the end of the year.Photo by Pixabay on PexelsApplication submissionIn an interview with CoinDesk TV on Friday, Sun revealed that Huobi recently submitted an application to become a virtual asset service provider (VASP) in Hong Kong. While the approval process typically takes up to 18 months, Sun expressed optimism that a decision could be reached within the next six to twelve months.A legacy Chinese cryptocurrency exchange was driven out of the country a few years ago following the implementation of a crypto trading ban, and is now a Seychelles-headquartered company which currently has offices in Singapore, Japan, South Korea, and the United Kingdom.It had been previously understood that at least 10 companies with Chinese founders, including OKX, Bybit, and Huobi, had either announced or were known to be planning to announce their bid for licenses in Hong Kong. Sun’s comments today add clarity to the matter.Sun highlighted that during this grace period, which spans the next 18 months, the specific details of regulations will be developed. This includes guidelines on compliance with customer withdrawals and anti-money laundering requirements. He further explained that with the approval, Huobi Hong Kong will be able to operate, onboard customers, establish banking relationships, and serve its user base effectively.In a strategic move, Huobi relocated its headquarters from Singapore to Hong Kong, driven by the city’s aspirations to become a leading virtual asset hub as early as this summer. The exchange’s decision to establish a presence in Hong Kong positions it favorably to leverage the emerging opportunities in the region.Expectations of more applicantsWhile it’s not entirely clear who else has applied, Sun speculated that five to six other major players could follow suit. Among the potential contenders mentioned were OKX, Gate.io, Bitget, and ByBit. This suggests a potential wave of interest in Hong Kong as a regulatory-friendly jurisdiction for virtual asset trading.When asked about Huobi’s plans to enter the Canadian market and compete with established players like Coinbase and Kraken, Sun made it clear that Huobi has no immediate intentions to operate in Canada. He emphasized the importance of prioritizing friendly jurisdictions, with a specific focus on regions like the Caribbean, Hong Kong, and Japan.Hong Kong’s regulatory approach towards cryptocurrencies and virtual asset service providers has gained attention in recent months. The city’s commitment to establishing a robust framework for digital asset trading and ensuring compliance with international standards has drawn interest from industry players seeking regulatory clarity and stability.As Huobi progresses through the application process and awaits a decision on its VASP license, the outcome will have significant implications not only for the exchange itself but also for the broader crypto ecosystem in Hong Kong. The successful acquisition of a license by Huobi could set a positive precedent, attracting more exchanges to establish a presence in the region and further solidifying Hong Kong’s position as a leading virtual asset hub in Asia.The developments in Hong Kong’s regulatory landscape will be closely monitored by industry participants as they shape the future of virtual asset trading in the city.

In a recent report, Circle Internet Financial, the issuer of the USDC stablecoin, emphasized the growing adaptability of the Asian population towards digital currencies. This trend indicates a substantial potential for increased stablecoin usage in the Asia Pacific region. On Monday, the firm published "The State of the USDC Economy 2024 Report," providing a trove of relevant and timely data. Since its launch in 2018, the USDC stablecoin has facilitated over $12 trillion in blockchain transactions. The focus of the report is on the surge in remittances flowing into Asia, highlighting its growing presence. Remittances of $130 billion into AsiaAccording to a World Bank press release, remittances to Asia reached $130 billion in 2022, with the average cost of transferring $200 standing at 5.7% in the last quarter of the year. Meanwhile, the region accounted for 29% of all global digital asset value received, surpassing North America's 19% and Western Europe's 22%. Against this backdrop, the report sheds light on Circle's strategic partnership with Coins.ph, a crypto exchange in the Philippines, which aims to tap into the country's personal remittance demand, estimated at around $36 billion annually.  In another blog post, the company also dispels the notion that stablecoins are primarily used for speculative trading, citing a 90% decline in such activities over the past five years. This shift in usage patterns highlights the growing acceptance and adoption of stablecoins for practical applications like remittances and trade finance.Photo by Marjan Blan on UnsplashIncreasingly important role in trade financeImportantly, Circle asserts that USDC can play a role in closing the region's $510 billion trade finance gap. This gap represents the lack of liquidity available to companies for cross-border remittances and credit, particularly affecting emerging markets with capital outflow restrictions. The report underlines how businesses in these markets often struggle to secure funding for international trade, and USDC is emerging as a solution. One notable case study is Taipei-based XREX, which utilizes USDC to build financial pipelines between countries, leveraging the deep dollar liquidity in Taiwan to address the dollar scarcity in other Southeast Asian economies. This exemplifies how stablecoins like USDC are contributing to bridging financial gaps and facilitating international trade in regions with limited access to traditional banking services. Stablecoin-specific regulationThe regulatory landscape in the Asia-Pacific region is also evolving to accommodate stablecoins. Countries like Singapore, Hong Kong and Japan have implemented or proposed frameworks for stablecoin regulation, aligning with the growing importance of digital assets in the financial ecosystem. Circle has become increasingly active within the APAC region. In November, the firm joined forces with Japanese financial services conglomerate SBI Holdings to increase the circulation of USDC within Japan. Having been awarded a Major Payments Institution (MPI) license in Singapore in June, Circle followed that up later in the year by launching a zero-fee USDC minting facility within the city-state. Considering these developments, the Asia-Pacific region, with its large unbanked population and significant digital wallet usage, is predicted to witness quick adoption of stablecoins for cross-border payments.