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A subsidiary company of Tiger Brokers, a Singapore-based online brokerage firm with nine million users, has been awarded a virtual asset trading license in Hong Kong. The subsidiary, YAX (Hong Kong) Limited, has been added to a list of licensed virtual asset trading providers (VATPs) on the website of the local regulator, the Securities and Futures Commission (SFC). Photo by Simon Zhu on UnsplashSeven platforms licensedBack in August, YAX found itself among a list of 11 VATP applicants that had been provided with feedback with regard to issues that needed to be addressed following inspections carried out by the SFC. Evidently, those issues have been resolved given that the company has now been awarded a trading license. YAX is now just one of nine trading platforms that have obtained licenses in the Chinese autonomous territory. These include OSL and HashKey, who were the first entities to be licensed in Hong Kong. HKVAX followed with approval granted in August 2023. Last October, SFC CEO Julia Leung told local news media that the regulator was dealing with 11 applications and that four approvals were imminent. In December, four additional exchanges, namely HKbitEX, Accumulus, DFX Labs and EX.IO, were awarded licenses. Bixin.com, WhaleFin and Matrixport HK are among the eleven applicants that have yet to receive a license. Alongside YAX, Panthertrade (Hong Kong) Limited was issued a license on Jan. 27, meaning that seven platforms have now been licensed. Panthertrade is a subsidiary company of Chinese mobile internet firm Cheetah Mobile.  Crypto trading and custodyOnce launched, YAX intends to extend crypto trading services alongside crypto custody to its clients. The company’s CEO, Kelvin Liu Kai, has said that as it rolls out its service offering, YAX will look to enhance speed trading, focus on transparency and security relative to the trading process and reduce custodial risks.  Tiger Brokers CEO Wu Tianhua has suggested that the virtual asset sector has grown rapidly on a global basis and with that, he sees “immense potential” for further growth. He added:“Cryptocurrencies are a key future investment trend. The establishment of YAX not only demonstrates our confidence in the potential of the market, but also showcases our firm commitment to creating a transparent and secure trading environment.” Swift licensing processThese latest licensing applicant approvals follow confirmation earlier this month that the SFC had extended access to its swift licensing process to all new VATP applicants. The four applicants approved in December had been the first to be put through the process.  In December, Joseph Chan, Acting Secretary for Financial Services and the Treasury (FSTB), confirmed to Hong Kong’s Legislative Council that in addition to the swift licensing process, a consultative panel for licensed trading platforms will be established in early 2025. It emerged in October 2023 that both YAX and Panthertrade were planning on submitting applications for VATP licensing in Hong Kong. With licensing pending, YAX parent company Tiger Brokers partnered with HashKey Exchange in May 2024, in order to launch a virtual asset trading service.  The service was made available to retail investors through the Tiger Trade platform the following month, enabling the platform’s 800,000 users to trade Bitcoin and Ethereum.

Binance Set For Japanese Market Re-Entry With 34 Token ListingsBinance, the world’s largest cryptocurrency exchange, is gearing up to re-enter the Japanese market with a bang on August 14. According to a report published by local crypto media outlet Coinpost, Binance Japan is set to immediately list an impressive 34 tokens.The move will put Binance ahead of its domestic rivals, as the offering will be the most extensive in terms of the selection of tokens made available to Japanese customers.Photo by David Edelstein on UnsplashBNB token offeringIn addition to that, Binance intends to make its native token, BNB, available in Japan for the first time. Exchange tokens have proven to be controversial in recent times. In November 2022, FTX’s reliance on their native token FTT caused a run on the exchange which Binance started once it started to sell off the token. Similar concerns have been expressed ever since about a similar reliance within Binance relative to its BNB token.The expansion into Japan will likely prove a tonic for Binance, given the difficulties it has experienced in other markets recently. Regulatory pushback has forced Binance out of markets such as Germany, Belgium, the Netherlands, and Cyprus over the course of the past three months.The company has been actively working to comply with Japan’s regulatory environment. In a Twitter video posted in July, Changpeng Zhao (CZ), Binance’s Founder and CEO, expressed his excitement about re-entering the Japanese market. He praised Japan’s clear and progressive approach to crypto regulations, citing the well-established framework that dates back to 2017, as well as recent developments, including the opening up of crypto listing frameworks and the passing of stablecoin regulations in June.Roadmap to market re-entryBinance’s journey back into Japan started in November 2022 when it acquired 100% ownership of Sakura Exchange BitCoin (SEBC). The acquisition paved the way for Binance to be regulated by the Japan Financial Services Agency (JFSA). As part of this move, SEBC underwent a name change, rebranding itself as Binance Japan Inc. The company then announced in May its plans to re-enter the Japanese market.The re-entry comes after the JFSA had previously issued warnings in 2021 against Binance for operating in the country without proper registration. Now, with the acquisition of SEBC and its regulatory compliance, Binance has gained a foothold in the Japanese market once again.Binance Japan aims to provide a comprehensive suite of services to its Japanese customers. New users can access spot trading, Earn products, and the NFT marketplace, while existing customers can migrate to the local subsidiary starting August 14. The token offerings include a diverse range of assets, and the addition of BNB presents exciting opportunities for traders and investors in Japan.Rival exchanges such as Coinbase and Kraken have decided to halt their operations in the country as they struggled to adjust to Japanese market conditions. The move by Binance to re-enter Japan’s market will be closely watched to see if it can succeed where others have failed.

The Current Status of Crypto in AsiaWith the United States having taken a very harsh line relative to cryptocurrency of late, there has been a lot of chatter surrounding the likelihood of Asia driving crypto forward. With that in mind, we’ve taken a look at the state of crypto in a number of Asian countries.©Pexels/RODNAE ProductionsJapanJapan is among the most crypto-friendly developed nations globally, having acknowledged Bitcoin as a legal payment mode and regulated crypto exchanges in 2017. Bitflyer and Bitbank are among the crypto exchanges operating in Japan, which currently has over 23 authorized crypto exchanges.The country aims to balance consumer protection and innovation by requiring crypto exchanges to register with the FSA, comply with stringent rules on security, anti-money laundering, and reporting, undergo regular FSA audits and inspections, and be part of the Japan Virtual Currency Exchange Association (JVCEA) for self-regulation.Despite being regulated, Japan’s crypto market is lively, with the Yen ranking second for Bitcoin trading volume by currency. The country has a flourishing crypto community, including blockchain firm LayerX, which requires ChatGPT expertise. Japan is also exploring the potential of central bank digital currencies (CBDCs) and plans to launch a pilot program with private sector partners in 2023 to test their feasibility for various use cases, aligning with the country’s strict approach to crypto.Japan’s crypto taxation is unfavorable, with crypto gains taxed at the same rates as regular income, potentially reaching up to 55% for higher income brackets. However, Japan is one of the few countries with comprehensive guidelines on crypto taxation, with the NTA providing a detailed document that explains different types of transactions and their corresponding tax calculations.ChinaChina’s ban on crypto mining led to many miners moving their operations overseas or selling their equipment at a loss. However, China’s crypto-mining industry bounced back, with a 21% share of the global hash rate. While China has a competitive advantage in cheap electricity, regulatory risks remain.China’s digital yuan is a legal tender fully backed by the People’s Bank of China (PBOC) and pegged to the renminbi. Unlike most cryptocurrencies, it is not decentralized or anonymous but is monitored by the PBOC. Adoption has been slow despite various partnerships and pilot tests, including with WeChat Pay.China is working with other countries on the Multiple CBDC Bridge project to explore the feasibility of cross-border fund transfers among different currencies. Launching its own CBDC may allow China to reduce its reliance on the US dollar and increase its influence over global trade and monetary policy. However, the success of that endeavor is questionable.Hong KongHong Kong is a crypto-friendly jurisdiction that faces banking access and mainland influence challenges. Despite difficulties opening local bank accounts after the closure of two crypto-friendly banks, Hong Kong remains committed to fostering its fintech hub status.The government proposed allowing retail investors to trade cryptocurrencies and ETFs and reviewing property rights for tokenized assets while considering legalizing smart contracts. Crypto purchases for all citizens are due to be legalized in June 2023. These measures should attract more investors and businesses to the city’s crypto industry.Nonetheless, Hong Kong must overcome hurdles regarding banking access and regulatory uncertainty from mainland China to maintain its attractive status for crypto businesses and investors.SingaporeSingapore has a supportive crypto ecosystem and regulations with low tax rates, favorable policies, strong financial center reputation, and proximity to other Asian markets. Notable international crypto players with offices in Singapore include Coinbase, Crypto.com and Kraken.However, Singapore imposes strict rules on crypto service providers to prevent illicit activities, requiring digital payment token (DPT) services to obtain a license under the Payment Services Act or face fines and jail time. Singapore’s crypto industry also faces competition from other jurisdictions, such as Hong Kong and the UAE, offering tax incentives and favorable legal frameworks.IndiaIndia’s crypto industry faces uncertainties due to the lack of a clear regulatory framework and frequent changes in the government’s stance. Despite having a large tech-savvy population and an active crypto community, the industry struggles with regulatory compliance and legal risks. In 2018, the Reserve Bank of India’s ban on banking channels cut off many crypto businesses and users.The Supreme Court of India later overturned the ban, but draft bills to ban or regulate crypto have since been proposed without official introduction or passage. India recently imposed a preemptive ban on crypto advertising and sponsorships and is exploring the integration of a CBDC. India’s position on crypto leans toward the anti-crypto side, just short of an outright ban.For brevity, we’ve confined discussion to these five Asian venues. However, it would be remiss of us not to mention that Vietnam has one of the highest levels of crypto adoption in the world while having a crypto trading ban in place. Not so in South Korea where crypto trading is legal, with strict regulation having been put in place. Meanwhile, Thailand’s Securities and Exchange Commission (SEC) has approved four cryptocurrencies as tradable assets, with crypto trading in the country having a legal status.It’s difficult to figure out precisely how crypto will develop geographically but it seems certain that its future will be molded to some extent in Asia.