Zodia Markets Achieves Crypto Broker-Dealer Approval in UAE

Binance Headlines List of Japan FSA Warning Letter RecipientsJapan’s Financial Services Agency (FSA) issued a warning letter on Friday stating that several foreign cryptocurrency exchanges have been operating in the country without proper registration, thereby infringing Japan’s fund settlement laws. The regulatory authority specifically named Binance, Bybit, MEXC Global, and Bitget as the entities in question.The FSA indicated that these exchanges need to register with the agency to continue operating in Japan. Failure to comply with the registration requirements would result in enforcement actions by the FSA, which could include the suspension of their operations in the country.©Pexels/David DibertUnregistered digital asset exchangesThe FSA’s warning letter detailed that the cryptocurrency exchanges mentioned had contravened Japan’s fund settlement regulations by engaging in crypto asset exchange operations without proper registration. The regulatory body emphasized that the current list of unregistered traders may not accurately reflect the current state of unregistered businesses in the country.The FSA intends to continue monitoring the market and taking appropriate regulatory measures to protect consumers and the integrity of the financial system. The agency also encouraged all unregistered operators to register with the FSA to avoid any possible enforcement actions.Clamping down on unregistered exchangesThe FSA’s recent action against unregistered cryptocurrency exchanges is in line with the regulatory body’s ongoing efforts to clamp down on non-compliant operators in Japan. In 2020, the FSA introduced new regulations mandating that all crypto exchanges must register with the agency and obtain a license to operate in the country. These regulations were put in place to strengthen consumer protection and enhance the transparency of the cryptocurrency market. By taking these measures, the FSA aims to foster a more stable and secure environment for the burgeoning crypto industry in Japan.The FSA’s warning to Binance is indicative of the growing regulatory scrutiny that the cryptocurrency industry in Japan and other nations is currently facing. Regulators are increasingly concerned about the potential risks associated with unregulated cryptocurrency exchanges, such as fraud, money laundering, and market manipulation. As a result, many regulatory bodies are implementing stricter rules and guidelines to promote transparency, accountability, and consumer protection in the cryptocurrency market.These regulations aim to create a more secure and reliable environment for investors and industry participants. The FSA’s actions against Binance serve as a reminder to all market players that compliance with regulatory requirements is critical for the long-term success of the cryptocurrency industry.Global regulatory variationWhile Japan is taking steps to implement new regulations for the cryptocurrency and Web3 sectors, the country has not been as stringent in its approach as some other major economies, such as the United States. However, this does not mean that regulators in Japan are not actively monitoring the industry and taking appropriate action where necessary.One example of such action is the recent lawsuit filed by the US Commodity Futures Trading Commission against the popular crypto exchange firm, Binance, and its founder, Changpeng Zhao, over regulatory violations. This highlights the fact that regulatory bodies in different parts of the world are taking a more proactive approach to monitoring the cryptocurrency industry.Moreover, the FSA in Japan issued a formal warning letter to Binance in 2021 for operating without the necessary permissions. This is an indication that the regulatory landscape in Japan is evolving, and that crypto exchanges must comply with the relevant regulations to avoid potential legal repercussions. While the severity of regulatory measures may differ across different jurisdictions, the message is clear: compliance is crucial for the long-term viability of the cryptocurrency industry.

XPLA joins hands with EDUM to bring Study-to-Earn services to learnersSouth Korean gaming corporation Com2uS Group’s layer 1 blockchain XPLA has established its newest partnership with EDUM, a Study-to-Earn (S2E) project operated by Dream Ladders, a blockchain subsidiary of educational and career services provider Jinhak, according to an official announcement on Monday (KST). Together, they plan to bring blockchain to education, helping students benefit from a new, innovative approach to learning and proving that blockchain can be useful in any environment.Photo by JESHOOTS.COM on UnsplashOptimizing the learning experience with Web3EDUM is set to leverage Web3 technology to provide students with access to affordable, high-quality educational services for everyone, no matter their economic background. Users will be able to earn rewards in the form of EDUM or EDUMP tokens when using different functions on the EDUM mobile application. EDUM is the project’s market-based utility token that can be cashed through external exchanges or even swapped with EDUMP, which has a fixed value and can only be used within the EDUM ecosystem. EDUMP tokens can also be used for purchasing NFTs or lectures on the EDUM platform.The project will also incorporate NFT technology as a key mechanism. Learners on EDUM can record their achievements as NFTs through certification performed by a Proof of Attendance Protocol (POAP). The platform offers benefits to instructors as well, whose content such as lectures, exams and textbooks can be protected and compensated by being minted as NFTs.Going beyond gamingBy working with EDUM, XPLA aims to venture into the realm of education, which is outside of its usual gaming focus, helping the platform revolutionize S2E services and creating more real-world use cases for blockchain technology.

In an effort to safeguard crypto investors from falling prey to misleading advertisements, the Securities and Exchange Commission (SEC) of Thailand has intensified its scrutiny of promotional campaigns within the crypto sphere. Photo by Dave Kim on UnsplashBroker agent eventsOn April 29, the Bangkok Post reported that the SEC has raised concerns regarding the potential violation of local regulations through introducing broker agent (IBA) events. These events, the SEC clarified, may breach regulations as IBAs are only permitted to promote digital token services to deter speculation on cryptocurrencies, categorized as high-risk assets. IBAs, acting as local conduits for partner digital asset exchanges, typically earn commissions by onboarding clients within a specific market. Such practices are common for exchanges or brokers that don't directly operate in certain markets. Deputy Secretary-General Anek Yooyuen conveyed the commission's unease over crypto exchanges offering preferential treatment to onboard users. Yooyuen stated: "When operators organise sales promotions by offering rewards to entice people to use the service, this could encourage use of the service without considering the investment risks. This is especially the case for cryptocurrencies.” Warning of consequencesHe cautioned that failure to adhere to these guidelines would result in “punishment according to the law.” While cryptocurrency exchanges are legal in Thailand, they must secure local approval. Notably, last month, Thailand even greenlit asset management firms to launch private funds, offering Bitcoin exchange-traded funds (ETFs) exclusively to institutional and ultra-high-net-worth investors. Nonetheless, the country recently prohibited the sale of cryptocurrency lending products and mandated that exchanges prominently display risk warning messages. International regulatory trendThis move by the Thai SEC mirrors actions taken by regulators in other major crypto markets. For instance, the United Kingdom's Financial Conduct Authority (FCA) issued 450 alerts for illegal crypto ads in 2023 alone. Similarly, Spain’s principal securities market regulator, the National Stock Market Commission, denounced fraudulent crypto asset promotions in November 2023, emphasizing companies’ obligations to adhere to local laws. Thai advertising guidelines mandate businesses and advertisers to substantiate the “facts” presented in their campaigns, failing which could lead to legal repercussions. A recent incident provides a case in point. Hackers hijacked advertisements on Etherscan, redirecting users to phishing sites aimed at draining crypto wallets. Scam Sniffer, a blockchain investigation firm, attributed the widespread phishing campaign to the inadequate oversight by advertisement aggregators. The company made the following statement on the matter: “Etherscan aggregates ads from platforms like Coinzilla and Persona, where insufficient filtering could lead to exposure to phishing attempts.” The wallet drainer scam involves enticing users to counterfeit websites and coercing them to link their crypto wallets, enabling scammers to siphon funds into their own wallets without user authentication or consent. This is not the first time that the authorities in Thailand have homed in on crypto-related advertising. In August 2023, the Southeast Asian country’s Ministry of Digital Economy and Society (MDES) outlined that it had engaged with social media firm Meta, owner of Facebook, informing it that its response to the proliferation of fraudulent platform ads relative to crypto had been inadequate.