Gulf Binance Secures Thai Digital Asset License

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. 

China introduces identity verification through RealDID on blockchainThe Chinese government, in collaboration with the Blockchain-based Service Network (BSN), has unveiled plans for the introduction of RealDID, a new digital identity service.Integrating blockchain into public systemsThis platform is set to bring blockchain-based digital identity verification processes into broader use, verifying the digital identities of China’s 1.4 billion people. Such an eventuality would represent a pivotal moment in China’s ongoing efforts to integrate advanced technologies into governance and public administration.The platform is being geared to deliver a spectrum of services, encompassing personal real-name confirmation, encrypted personal data protection and certification. Notably, it will enable private logins, establish business identities and offer personal identification certificate services, coupled with information vouchers on personal identity.Photo by Tamara Gak on UnsplashAnonymous online identityA standout feature of RealDID is its provision for Chinese citizens to register and access online portals anonymously through a Decentralized Identity (DID) address. This feature ensures the privacy of transactions and personal data, addressing global concerns over data security. The introduction of RealDID underscores China’s commitment to harmonizing technological advancement while at the same time, preserving the privacy of the individual.Although the specific roll-out date for RealDID across China’s vast population remains undisclosed, the potential impact of this initiative is monumental. The platform is poised to significantly enhance the security and efficiency of identity verification processes, a critical element in the realm of digital transactions and interactions.RealDID is a strategic component of China’s broader technological vision, aimed at solidifying its position as a global leader in emerging technologies. The nation has been actively investing in and regulating emerging innovations such as artificial intelligence, central bank digital currencies (CBDCs) and cryptocurrencies. In tandem with these endeavors, China is actively working to reduce its reliance on foreign semiconductor chips by boosting domestic production.BSN FoundationBSN, operated by China’s National Information Center, has forged partnerships with major tech players like China Mobile and China UnionPay, illustrating the collaborative nature of this national initiative. The network was co-founded by Hong Kong’s Red Date Technology. With the network originating in China, last month, the BSN Foundation was established in Singapore, featuring five global members.These included Blockdaemon; Zeeve, a Los Angeles-based blockchain infrastructure automation platform; TOKO, a Hong Kong-headquartered digital asset creation platform; Germany’s GFT Technologies; and Red Date Technology. The five will act as a governing body for the BSN Spartan Network.The unveiling of RealDID by the Chinese government signifies a significant stride in integrating blockchain technology into everyday governance and public services. Leveraging blockchain’s inherent decentralization and security features, RealDID aims to provide a more secure and efficient method of identity verification while upholding user privacy.This move aligns with the global trend of governments exploring blockchain technology for diverse public services, highlighting China’s interest in spearheading technological innovation. As the global landscape evolves, China’s strides in the realm of blockchain-based identity verification serve as a testament to its ongoing interest in the future of digital governance.

South Korea’s central bank, the Bank of Korea (BOK), plans to begin testing peer-to-peer (P2P) transactions with its central bank digital currency (CBDC) in October, according to the Seoul Economic Daily. This will mark the second phase of its ongoing CBDC pilot, Project Hangang, which currently allows 100,000 citizens to use digital tokens for payments at both online and offline stores. In the fourth quarter, the pilot will also introduce voucher programs enabling local governments to distribute welfare benefits.Photo by Mathew Schwartz on UnsplashSandbox deadline pressureThe BOK originally planned to gather feedback from participants in the first phase and refine the system before proceeding. However, the central bank decided to speed up the timeline, as the broader project is operating under a regulatory sandbox program that provides two years of regulatory flexibility. A BOK official noted, “Since the current test ends in June, we can’t wait too long to move forward. Also, the fourth quarter timeline is still tentative.” While the BOK focuses on its CBDC, Korean commercial banks are accelerating efforts to develop stablecoin infrastructure and launch related pilot projects, Edaily reported. These initiatives reflect growing expectations that stablecoins will become a key tool for cross-border payments. Banks see this as an opportunity to attract new customers and earn fees from crypto exchanges by facilitating stablecoin transfers through their own networks. One example is Project Pax, a joint initiative involving Shinhan Bank, Nonghyup Bank and Kbank, which is testing stablecoin transfers between South Korea and Japan. Led by Japan’s digital asset platform Progmat, along with Korea’s Fair Square Lab and Korea Digital Asset Custody, the project enables Korean banks to send won-based stablecoins to Japanese financial institutions and receive yen-pegged stablecoins in return. Rising stablecoin useAn executive at a local bank expressed concern that South Korea is falling behind in stablecoin adoption. He predicted faster uptake, noting that consumers can save time and money by avoiding traditional foreign exchange processes. He also cautioned that, without action, the private sector could take the lead in building cross-border payment networks, bypassing the traditional SWIFT system. Another banker urged financial authorities to establish clear regulations for stablecoins, stressing the need for oversight as stablecoins are increasingly used to move foreign currencies out of Korea. Contrasting perspectivesHowever, BOK Governor Rhee Chang-yong remains skeptical of stablecoins, arguing that CBDCs offer far greater transparency. He pointed to the volatility of unregulated stablecoins and warned that their widespread use—especially if issued by private financial institutions—could undermine the central bank’s role as the sole issuer of legal tender. That said, financial authorities appear to be exploring a regulatory framework where CBDCs and stablecoins can coexist. Sharing his personal view, one official noted that while the future of stablecoins is uncertain, it’s important to remain open to various possibilities. He added that agencies are also reviewing recent changes in U.S. federal law, along with regulations in Japan and the EU.