Paxos launches USDG stablecoin in Singapore

Hong Kong-based ZA Bank has published a “2023 in review” blog post that suggests that the virtual bank is preparing to bring virtual asset trading to retail customers through its ZA Bank App.Photo by David McBee on PexelsEmbracing retailIn the blog article which was published to its website last week, Hong Kong’s largest virtual bank expressed its dedication to bolstering Hong Kong’s aspiration to emerge as a global hub for Web3. As the city embraces a new licensing regime for virtual asset trading platforms, ZA Bank unveiled its plans to introduce fiat currency-based virtual asset trading services for retail investors through the ZA Bank App. The bank first aired the notion of such an offering back in May. Its renewed coverage of the topic would seem to suggest that such a product offering is much closer to launch. Additionally, the bank anticipates the launch of its U.S. stock trading service after obtaining necessary approvals, promising a stream of innovative and exciting services in the future. Regulatory trendNews of the bank’s proposed retail offering aligns with moves being made by local regulators over the course of recent months to enable retail access to crypto-based products within the Chinese autonomous territory. In June, a regulatory framework was put in place by the Securities and Futures Commission (SFC) to enable licensed virtual asset platforms to market to retail investors. In recent days it has emerged that regulators are prepared to accept applications for spot crypto exchange-traded fund (ETF) products which would be made available to retail investors. Banking the crypto sectorZA Bank also announced that it has been providing banking support to more than 80 Web3 companies since the beginning of this year, aligning with its commitment to “Banking for Web3,” introduced in April. Notable among the roster of supported companies is OKX Hong Kong, with ZA Bank serving as the trusted banking partner for locally licensed virtual asset trading platforms (VATPs) such as HashKey and OSL. The bank, which was established by ZhongAn Online and Beststar in 2018, has served an important banking role in respect of the digital assets sector in Hong Kong in 2023. While the authorities in Hong Kong appear to have pulled out all of the stops over the course of the past year to nurture crypto business, banking was identified as an area of difficulty. In June, the Hong Kong Monetary Authority (HKMA) explicitly questioned the reluctance of some major banks to extend services to crypto companies, applying pressure on them to do so. Given that background, ZA Bank, being a first mover in embracing the industry, has played an important role in Hong Kong. ZA Bank’s impact is evident in its notable market presence, with one in 10 Hong Kong adults choosing the institution for their banking needs. The ZA Bank App earned the distinction of being the highest-rated banking app on Hong Kong’s Google Play in 2023. The bank has surpassed HKD 10 billion in customer deposits and secured the top spot in Asia in the Sia Partners 2023 International Mobile Banking Benchmark, maintaining the sixth position globally. 

Upbit Launches Campaign for Recovery of Mistakenly Transferred AssetsUpbit, the cryptocurrency exchange operated by Dunamu, announced on Tuesday (local time) that it is launching a campaign where users can get back the digital assets that they have transferred mistakenly as part of heightened efforts to protect investors and minimize their losses due to such errors.Photo by Luis Villasmil on UnsplashRole of secondary identifiersAmong the virtual assets that Upbit allows users to deposit, some require users to accurately input their unique identifiers — like a Destination Tag (D.tag) or Memo — in order to properly process a deposit. A D.tag or Memo is an additional address used to identify a transaction recipient beyond a wallet address, which is often required when trading altcoins like Ripple (XRP) and Monero (XMR). In the case of XRP, both the exchange address and the D.tag must be entered accurately for deposits to be processed properly.Enhancing investor convenienceHowever, misdirected transfers caused by incorrect or missing secondary deposit addresses occur quite frequently. Many users also remain unaware when their virtual assets have been mistakenly transferred.In response to this issue, Dunamu has organized its latest campaign to make it easier for Upbit users to recover the virtual assets that they mistakenly sent. A user can access the campaign page on the official Upbit website and search for the transaction ID (TXID) of the deposit where the secondary address was either not entered or entered incorrectly. If a matching deposit is found, they can click “Apply for Recovery” to submit a one-on-one inquiry.Previously, users were required to manually enter information such as the name and quantity of the cryptocurrency, as well as the TXID in the one-on-one inquiry. Now, this information is automatically filled in through the TXID search, boosting user convenience.In an effort to encourage campaign participation, Dunamu also said that it will waive all fees for the recovery of mistakenly transferred assets until the end of the year.As of July, the exchange has successfully processed over 99.5% of the total 45,474 recovery requests that it has received over the past five years by leveraging its industry-leading technical expertise.“Upbit will continue its efforts to protect user assets and provide convenient services,” Dunamu said.Global recognitionMeanwhile, Upbit has secured 9th place in the Kaiko Exchange Ranking for the third quarter of 2023, ranking first among Korean exchanges. Kaiko is a crypto market data company with offices in Paris, London, New York, and Singapore.The ranking evaluates exchanges based on the following criteria: governance (30%), security (20%), liquidity (15%), business (15%), technology (10%), and data quality (10%). Upbit earned a score of 76 points.Coming in first overall on the list was Coinbase with 90 points, directly followed by Bitstamp and Kraken with 86 and 82 points, respectively. Among Korean exchanges, Korbit ranked 15th worldwide with 72 points, followed by Bithumb in 17th with 72 points, then Coinone in 27th with 59 points.

Hong Kong Bank to Act as Settlement Bank for Crypto FirmsZA Bank, Hong Kong’s largest virtual bank, is looking to become the go-to bank for crypto startups. The online bank has been given permission to serve as the settlement bank for regulated Web3 companies in the city. This development was announced at Hong Kong’s Web3 Festival, an event supported by the local government and attended by crypto startups and institutions from across Asia.©Pexels/Frank BarningHashKey and OSL collaborationZA Bank is expected to facilitate crypto-fiat conversions with two licensed exchanges in Hong Kong, HashKey and OSL, where customers can swap crypto into fiat currencies. ZA Bank will also offer basic banking services to local Web3 startups, a category that is currently underserved by traditional financial institutions.ZA Bank is focusing on assisting local Web3 startups and small-medium enterprises (SMEs).The bank linked up to the city’s company registry data, allowing for minimal information input and cross-checking. According to Devon Sin, alternate chief executive of ZA Bank, the bank currently conducts AML scrutiny against the usual checklists to satisfy the regulatory requirements. No AML issues have emerged during the recent months of work.Competing for global crypto businessHong Kong is trying to establish itself as a crypto-friendly alternative to other hubs, such as the US and Singapore, and a sandbox for Web3 businesses from China, where crypto trading is illegal. The city is revamping its digital assets regulatory framework, with plans to legalize retail trading of major cryptocurrencies like Bitcoin and Ether. Ronald Lu, CEO of ZA Bank, said that ZA Bank’s online account opening for Web3 startups is a major step forward in integrating traditional banking services with the Web3 world.According to Lu, ZA Bank will act as a settlement bank for clients to allow withdrawals in Hong Kong, China, and US currencies after they deposit crypto tokens with exchanges. The business model is already operational through HashKey and OSL, the only two licensed crypto exchanges in Hong Kong. The bank will provide the same service for other exchanges as they become licensed.HK China’s crypto “trial run”Hong Kong is opening up to the beleaguered sector in a move that aims to revive its status as a financial center following years of COVID restrictions and political upheaval. However, access to banking has been a major hurdle for the city’s ambitions. The city’s banking and securities regulators are hosting a round-table for crypto players and bankers to share experiences and perspectives on banking services later this month.Many have speculated about a softening stance on cryptocurrency by the Chinese authorities. However, it’s more likely that they continue with strict regulation and control relative to crypto in mainland China while happy to monitor a more open approach to it within Hong Kong. Crypto analyst Myles Deutscher likens the approach to a “trial run” that is being monitored by China.Launched in March 2020, ZA Bank is one of Hong Kong’s eight licensed virtual banks and had the most net assets as of last year, despite remaining unprofitable. The virtual lender doesn’t expect it will need to boost its headcount to handle the crypto client push. Although the revenue model is still unclear, Lu said that more clients, more deposits, and more business opportunities are always great for the bank. The lender doesn’t offer services for clients from mainland China, given the restrictions in place there.