Singaporean Regulator Proposes Framework for Digital Money Use

HashKey Gears Up to Offer Trading Service to Retail TradersHashKey is gearing up to launch its services to retail traders in Hong Kong with the intention of offering them Bitcoin and Ether trading products initially.The Hong Kong-based digital asset management platform received full licensing approval from the local regulator, the Securities Futures Commission (SFC), earlier this month. It’s anticipated that the platform will launch to retail on August 28.That’s according to a report from a local media source earlier this week. Financial publication Investing.com stated: “General investors in the period can only trade Bitcoin (BTC) and Ethereum (ETH), because these two currencies currently account for most of the trading volume in the market.“It’s worth noting, however, that investors will be subject to a cap, permitted to allocate only up to 30% of their net worth into the realm of cryptocurrencies while utilizing the platform.Photo by Traxer on UnsplashServing retail clientsIt’s a significant milestone for both HashKey and the regulator, given that Hong Kong has been making huge efforts to further the development of digital asset innovation within the Chinese autonomous territory over the course of the past twelve months. Hashkey, alongside brokerage and exchange business OSL (also successful in obtaining a license), has been collaborating with regulators from an early stage in the lead-up to both receiving full licensing.HashKey got to this point by focusing on two pivotal licenses offered by the SFC. The first of these licenses, known as Type 1, paved the way for HashKey to initiate a virtual asset trading platform, aligning seamlessly with the regulatory framework laid out under Hong Kong’s securities laws. The second license, Type 7, empowers the crypto platform to furnish automated trading services to both institutional and retail clientele.Nurturing digital asset innovationHong Kong has maintained a resolute focus on cultivating a crypto-friendly environment within its borders in 2023. Echoing this sentiment, Financial Secretary Paul Chan asserted the government’s and regulatory bodies’ determination to incubate a robust crypto and fintech ecosystem throughout the year.By March, over 80 crypto enterprises signaled their intent to establish a presence in Hong Kong, with several major players in the crypto industry among them. In April, the Hong Kong Monetary Authority (HKMA) issued a call to banks, urging them to extend their services to cryptocurrency companies.Banking remains a difficulty in Hong Kong for crypto businesses despite the HKMA’s efforts. However, in the case of both HashKey and OSL, both are being banked by Hong Kong’s largest virtual bank, ZA Bank.In May, the HKMA unveiled a comprehensive licensing framework tailored for crypto platforms, imposing a deadline of June 1 for compliance. As August rolled in, a select few crypto platforms clinched the green light to offer crypto trading services to an eclectic client base encompassing both retail and institutional participants.This regulatory framework, designed to safeguard the interests of investors, is playing a large part in Hong Kong’s recent success in developing the sector. In this particular instance, it will mean that retail traders will be granted access to Bitcoin and Ethereum exclusively. This curtailed selection provides a good starting point for retail trading, and it’s likely that we will see HashKey’s trading offering being extended to cover additional digital assets as soon as local regulators permit it.

Earlier this month, CoinNess reported on a flurry of Asian companies who had announced plans to add crypto to their balance sheets. That trend continued this week with two Chinese companies announcing similar plans. In a press release published on June 24, Aurora Mobile, a marketing technology firm based in Shenzhen, announced its intention to begin to invest in digital assets. The Nasdaq-listed company (JG) outlined that its Board of Directors had approved the investment of up to 20% of the firm’s cash and cash equivalents in various digital assets in a strategic initiative involving Aurora Mobile’s treasury management.Photo by Traxer on UnsplashGaining exposure to emerging asset classIt described the initiative as an example of the company’s “commitment to innovative treasury practices,” focusing on long-term value creation for Aurora Mobile’s shareholders. The firm’s CEO, Weidong Luo, said that the initiative will enable the company to diversify its portfolio, “gaining exposure to an emerging asset class with low correlation to traditional markets.” Luo also asserted that the move would demonstrate that the firm is “aligning with the technological advancements reshaping global finance.” Aurora Mobile indicated that it would look to purchase Bitcoin, Ethereum, Solana, Sui and other tokens. China’s crypto trading banA trading ban on crypto was introduced in mainland China in 2021. With that, it’s unclear how Aurora Mobile will establish its crypto treasury. It may opt to do so through Singapore-based subsidiary EngageLab or through an affiliated corporate entity in Hong Kong. No such ban applies in Hong Kong, where VMS Group, another company which has decided to invest in digital assets, is headquartered. VMS Group is a family office which provides investment solutions and advisory services, while specializing in alternative investments.  According to a report published by Bloomberg on June 23, the company, which has $4 billion worth of assets under management (AUM), intends to allocate up to $10 million to investment strategies run by a decentralized finance (DeFi)-focused hedge fund, Re7 Capital. VMS Group managing partner Elton Cheung told Bloomberg that the investment decision was taken as part of an effort to diversify into more liquid investments. Cheung added: “We thought this was the right time [to invest in digital assets] because of growing demand and because we see clearer legislative and government support from various jurisdictions, as well as large institutional support and endorsement.” Potential partnershipsVMS Group executive Zhi Li, who has been tasked with leading digital asset investments for the company, said that the firm is examining potential partnerships with blockchain payments and infrastructure projects. Li stated that “there is very strong institutional and family interest in getting regulated digital asset exposure,” adding that VMS has “seen the younger generation of families wanting to do something different.” Alongside these investments into cryptocurrencies, demand for crypto-related stocks in Hong Kong is also surging. Shares in publicly-listed licensed digital asset platforms in the Chinese autonomous territory surged by as much as 200% on June 25 as the market reacted positively to the city’s developing digital assets policy.

Korean Crypto Wallet Joins Forces with Kick Scooter Sharing PlatformRotonda, a subsidiary of Korean cryptocurrency exchange Bithumb and the operator of the virtual asset wallet platform Burrito Wallet, announced today a collaboration with the Seoul-based kick scooter sharing service Xingxing, as reported by local media outlet Etoday.Photo by Ranurte on UnsplashToken reward promotionUnder this partnership, the two companies will launch a promotion that will run until July 31. The first 4,800 new users who click on the promotion banner on the Xingxing app, install the wallet app, and set up a crypto wallet will receive 10 WEBI tokens through airdrop. Furthermore, ten of these users will also be given an NFT that represents Xingxing’s monthly subscription “mini,” which is worth 18,900 KRW ($15). WEBI serves as the ecosystem token for the blockchain-based Web3 sharing economy service called Webility.Additionally, 200 monthly subscribers of Xingxing who install the Burrito Wallet app will have the opportunity to win 100 WEBI tokens and 100 Xingxing in-app points. The winners will be announced on the official websites of both companies.Bridging Web2 and Web3Having already forged partnerships with various blockchain projects, including Pala, Casper Labs, 1inch Network, and KLAYswap, Burrito Wallet will seize this opportunity to position itself as a digital wallet that bridges the gap between Web2 and Web3.A representative from Burrito Wallet expressed optimism that the partnership with Xingxing will provide more people with the opportunity to experience its distinguished Web3 services. The representative also emphasized the company’s commitment to strengthening partnerships with companies from various fields, with the goal of building a highly practical virtual asset ecosystem.