South Korean FIU rejects Hanbitco’s bid to become fiat-to-crypto exchange

Hong Kong’s HaskKey launches app following regulatory approvalHong Kong-based cryptocurrency firm HashKey has unveiled the HashKey Exchange app, which has received the approval of the Securities and Futures Commission (SFC).News of the app launch emerged following insights shared by HashKey’s Chief Operating Officer, Livio Weng, in an interview with The Block recently.Photo by Manson Yim on UnsplashAppealing to retail tradersThe HashKey Exchange app went live on Wednesday, having received regulatory clearance from Hong Kong’s securities regulator the previous Friday. This achievement allows the app to offer full mobile trading capabilities. Prior to this milestone, HashKey had been primarily catering to professional investors under a voluntary licensing scheme.With the new app, Hongkongers can now conveniently purchase bitcoin and ether, utilizing either Hong Kong dollars or US dollars, directly from their local bank accounts. The app launch is significant as HashKey has become one of Hong Kong’s first fully compliant retail-facing crypto trading platforms. “We’ve recorded large trading volume since we began to serve retail users,” Weng stated. The move aligns with the Hong Kong government’s efforts to bolster the virtual asset sector, which was set in motion one year ago with various policy shifts.These shifts included the introduction of a mandatory licensing scheme for cryptocurrency platforms, enabling them to offer tokens with large market capitalizations to retail traders. The new licensing regulations officially took effect in June, with a one-year grace period, though no new exchanges have been approved to date. HashKey and its rival, OSL, had their previous licenses upgraded in August.Developmental challengesHong Kong has faced several challenges on this journey. While the new regulations are largely in line with international norms, the process has been notably expensive, particularly against the backdrop of a bearish crypto market.The lingering fallout from the JPEX scandal, a cryptocurrency exchange allegedly involved in fraudulent activities, continues to impact Hong Kong’s virtual asset landscape. The SFC first raised concerns about JPEX in mid-September, and since then, it has moved to tighten regulation in response, having received thousands of complaints in relation to JPEX.Despite these challenges, HashKey Group has reported significant activity on its retail platform since its launch in August, with a total trading volume exceeding US$600 million. On October 30, the 24-hour trading volume exceeded US$100 million.Planned token launchIn a move designed to incentivize new users, HashKey Exchange has introduced its platform token, HSK, which is slated to be officially listed on the exchange next year. With a total supply of 1 billion HSK, the company has specified that these tokens will not be initially sold to retail investors, emphasizing its long-term vision for the project.Established in Hong Kong in 2018, HashKey Group operates a digital asset brokerage and a venture capital arm. HashKey Exchange earned the distinction of becoming Hong Kong’s second licensed exchange in November of the previous year, following in the footsteps of OSL. Notably, five companies have applied for the new licensing scheme, according to the SFC, while several other exchanges have expressed their intent to pursue similar approval.

American publicly-listed crypto exchange platform Coinbase is understood to be in talks with Indian regulators with a view towards enabling the re-entry of the exchange into the Indian market. News of the development emerged via a TechCrunch report published on Feb. 13. The publication cited two anonymous sources familiar with the matter. According to those sources, the American crypto exchange platform is in talks with officials from India’s Financial Intelligence Unit (FIU), a government agency that collects financial data regarding offenses under India’s Prevention of Money Laundering Act. Photo by Naveed Ahmed on UnsplashRegulatory pushbackThe FIU has been a key player in pushing back against exchanges that it believed were non-compliant in participating within the Indian market over the course of the past two years. In December 2023, the government agency moved to block overseas exchange businesses that it deemed to be operating illegally within the Indian market from engaging with Indian investors. That action was taken following calls from native Indian exchanges for a level playing field. At the time, they made the case to the Indian authorities that offshore exchanges were not operating in compliance with local regulations. Show-cause notices were issued against nine platforms at that time, although Coinbase wasn’t one of them.  The company had taken the measure of disabling new user sign-ups in India in September 2023. Prior to that, Coinbase CEO Brian Armstrong had complained about “informal pressure” being exerted by the Royal Bank of India (RBI). He said that the central bank was exerting “soft pressure” behind the scenes. On this attempt to re-enter the market, a spokesman for the company made the following statement to Cointelegraph: “Coinbase is excited by the opportunities in the Indian market and intends to comply with applicable regulatory requirements, but we have nothing to announce regarding a FIU registration at this time.” Kyle Chasse, founder of Web3-focused venture capital firm MV Global, outlined on X that it was “massive news,” adding that if the company re-enters the market, “huge liquidity could flow in from this.” Local partnersA source familiar with the matter told Decrypt that Coinbase wants “to do the same thing this time, but with local partners on board and a more clear strategy, which they didn’t have last time.”  The publication suggested that Coinbase executives will visit India in March to attend meetings with FIU officials. The timing of any official service re-launch in India will depend upon the regulatory steps that need to be followed by the company and the time taken to accomplish these requirements. In a related development, last week, Coinbase’s Chief Legal Officer (CLO), Paul Grewal, joined the board of directors of the U.S.-India Business Council, part of the U.S. Chamber of Commerce. While commenting on the appointment, Grewal spoke about a number of positive developments in India that are likely factors in the company’s renewed efforts to re-enter the Indian market. He stated: “India has one of the largest and fastest-growing web3 ecosystems in the world, with a booming developer community, pioneering startups, and bold institutional adoption. Since 2018, its share of global web3 developers has quadrupled to 12%, the highest growth among emerging markets.”

Gala Music’s First K-pop NFT Drop Sells Out in SecondsWeb3 music streaming platform Gala Music announced on Wednesday that the NFT drop for its first K-pop artist Ferry Blue’s latest single, “Breaking the Rules”, has sold out in just 3.4 seconds.Photo by C D-X on UnsplashFerry Blue’s journey to NFT successFerry Blue is an independent girl group that debuted in September 2021 with their album “Call My Name.” The members — Dozin, Xiho, Hyeyoung, Seul, Seona, and Hyunji — are unaffiliated with any entertainment agency, often working part-time jobs. Their new single, “Breaking The Rules,” which was composed using generative artificial intelligence (AI), was released on Gala Music last Tuesday where it is currently available for streaming. The NFT drop opened for public sale the following day at 5 AM KST, during which a total of 90 NFTs were minted and sold for $99 each.The drop garnered significant attention as it was Gala Music’s first collaboration with a K-pop artist. “Ferry Blue has made a mark not only on our platform but also in the global Web3 market,” Gala Music said. “We look forward to more K-pop artists expanding their presence worldwide through our platform in the future.”Gala Music’s innovative approach to enjoying musicEstablished in February last year, Gala Music has released over 350 songs from 86 artists, including rapper Snoop Dogg and DJ Steve Aoki. The decentralized music platform operates under a Learn-to-Earn (L2E) system, where listeners can stream and collect music tracks and then pair them to a node to share with others. Node operators and track owners can receive tokens for their contribution to the platform.