Hong Kong Moves to Enable Retail Crypto Trade

Ripple Pursues International Growth Via Dubai ExpansionThe Dubai Fintech Summit was held in the Venice of the Gulf earlier this week, bringing with it an announcement from Ripple outlining its plans to expand in the Middle Eastern location.Photo by Christoph Schulz on UnsplashResponding to the regulatory environmentRipple CEO Brad Garlinghouse was a keynote speaker at the Summit on Monday, and he took that opportunity to outline the company’s plans within the region. Immediately following his speech, Garlinghouse took to social media to confirm those plans. He tweeted out:“As I just shared on stage at #DubaiFintechSummit, @Ripple is expanding in Dubai. With 20% of our customers based in MENA and clear regulatory regimes being developed, it’s no surprise that Dubai is emerging as a key global financial hub for crypto innovation to thrive.”It’s no coincidence that at the very same event, Coinbase CEO Brian Armstrong was present alongside the company’s executive team. Armstrong also spoke at the event and the outcome of that involvement saw Coinbase too, signaling that it sees potential in setting up a regional base in the United Arab Emirates (UAE).In Coinbase’s case, it’s understood that it is considering the Emirate of Abu Dhabi as opposed to Dubai. Nonetheless, the rationale for pursuing such a move by both leading digital assets companies is the same. Both have been outspoken about the issues they have with the regulatory situation as it exists in the United States right now, relative to digital assets.Office presenceAs an initial step in that Middle East expansion, Ripple is opening an office in Dubai. The office will be located within the Dubai International Financial Centre (DFIC). In what appears like an effort to underscore the company’s official arrival in the United Arab Emirates, Ripple is holding its seventh annual customer conference in the country’s capital later this year.This week, Garlinghouse confirmed that the company’s prolonged legal battle with the Securities and Exchange Commission (SEC) in the United States is projected to cost the company a whopping $200 million. The Biden administration is using all the major financial agencies in the US to clamp down on the sector. It’s little wonder, therefore, that companies like Ripple and Coinbase are seeking refuge overseas.That regulatory and administrative landscape in the United States relative to crypto stands in total contrast to the experience of Navin Gupta, Ripple’s Managing Director of South Asia & MENA in respect of the UAE. In an interview with CoinDesk TV Gupta said that the “UAE as a market is very attractive to us, the Middle East as a market is doing very well.”Gupta drew on his experience in working in Silicon Valley previously and recalling how back then it had three ingredients that made it function that he believes is now the case for the UAE: talent, venture capital investment and a workable regulatory approach.

Vauld Implements Key Leadership Changes Amid Bankruptcy ProceedingsFailed Singaporean cryptocurrency lender Vauld has unveiled a comprehensive overhaul of its board structure.Photo by Yibei Geng on UnsplashOngoing restructuringThe platform, which faced financial turmoil leading to its declaration of bankruptcy last year, is introducing fresh leadership to spearhead its restructuring efforts. The move involves the appointment of a new CEO, a creditor representative, and a scheme manager.The current CEO and Co-Founder of Vauld, Darshan Bathija, announced the proposed changes via a post on X (formerly Twitter) on Thursday. He emphasized that the new appointees would take charge of orchestrating a much-needed bailout.The challenges faced by the company through its ongoing bankruptcy proceedings have prompted Vauld to secure court approval for this new organizational scheme. In his social media post, Bathija stated:“Vauld (Defi Payments Pte Ltd) got its scheme of arrangement passed in Singapore courts. As part of the scheme, the current board will be replaced with a new CEO, a creditor representative, and a scheme manager.” Additionally, Bathija noted that the exchange’s customers are actively updating their Know Your Customer (KYC) details.This announcement comes almost a year after Vauld came under scrutiny due to a money laundering investigation. The cloud of suspicion surrounding the firm at the time led to the freezing of assets worth $46.4 million from its domestic operations by Indian authorities.Nexo acquisition failureIn February of this year, the Singapore High Court granted Vauld an extension until March 24 to formulate a comprehensive strategy for repaying its creditors. The extension became crucial after a potential acquisition deal with Nexo fell through. However, despite this reprieve, the exchange was unable to secure a further extension, fueling discussions within the community about the challenge of meeting creditor obligations within a relatively short time frame.In a step to facilitate the resolution of outstanding amounts, the court established a committee of creditors (CoC). This move was prompted by allegations from a faction of creditors that Vauld was impeding communication and implementing unwarranted corrective measures. Notably, the exchange owes more than $2.2 million to these creditors.Vauld has contracted the services of risk and financial advisory firm Kroll as part of the restructuring efforts. In an isolated instance of good fortune, it appears that Vauld creditors are unaffected by a data breach which occurred recently at Kroll, while creditors of the Genesis, FTX, and BlockFi crypto bankruptcy processes have had their data compromised.Charting a path forwardBathija conveyed that more updates regarding the platform’s path forward would follow soon. Vauld’s financial instability can be attributed to several factors, chief among them being the ripple effect of Terra’s downfall. Further complications arose due to economic issues tied to the Celsius Network and Three Arrows Capital (3AC) defaulting on their loans. These cumulative challenges led to Vauld’s operational suspension.Despite this failure and similar issues relative to crypto lender Hodlnaut and 3AC, which were also based in the city state, Singapore continues as a jurisdiction that effectively balances regulatory control with the drive to foster innovation. Its central bank and financial regulator, the Monetary Authority of Singapore (MAS), recently unveiled a comprehensive framework for stablecoins.

Singaporean crypto wallet provider SafePal has announced a strategic investment in Swiss bank Fiat24, together with the launch of a number of financial services. The partnership is a significant milestone in bridging the gap between the crypto world and real-world financial utilities.Photo by Henrique Ferreira on UnsplashVisa card and in-app bankingThe company outlined in a blog post on March 7 that the centerpiece of this collaboration is the introduction of a crypto-focused Visa card and in-app banking services, both designed to streamline the integration of digital assets into everyday transactions. The default deposit currency for these services is the dollar-pegged stablecoin USD Coin (USDC), providing users with a stable foundation for their financial activities. Through the SafePal mobile wallet app, users can convert their cryptocurrency holdings into USDC via Ethereum layer two scaling network Arbitrum, making for an efficient and reliable process. Once converted, the USDC can be stored in multiple fiat currencies, including USD, EUR and CHF, enabling seamless utilization in various transactions and expenses. Enabling Swiss bank account accessOne of the standout aspects of this initiative is the opportunity for users to establish individually owned, fully compliant bank accounts directly within the SafePal mobile wallet app. By completing the necessary know-your-customer (KYC) and onboarding procedures through Fiat24. Opening such bank accounts will be free, with no account creation or annual management fees being applied. However, transfer and deposit fees will be applied starting from a base rate of 0.6%. The project believes that the integration of NFT technology on Arbitrum will ensure the security and transparency of all related transactions. Veronica Wong, CEO and co-founder of SafePal, emphasized the importance of addressing the accessibility challenges faced by crypto users in a communication with CoinDesk. She highlighted the significance of providing a crypto-friendly banking experience that eliminates the hurdles imposed by traditional financial institutions. Additional payment platform partnershipsIn addition to the crypto Visa cards, SafePal has forged partnerships with leading payment platforms such as Paypal, Google Pay, Apple Pay and Samsung Pay, expanding the usability and convenience of its services. While the Visa card will initially be available in select European regions, plans are underway for its gradual expansion across the continent. Similarly, the in-app banking gateway will cater to users outside the United States and in non-U.S. sanctioned countries, fostering greater accessibility on a global scale. Working towards market growth through a partnership strategy is a route that SafePal has taken in the past. In May 2023 the company attempted to make further inroads into the Korean market by partnering with South Korean enterprise blockchain project Klaytn. In that instance, the wallet provider added support for digital assets that run on the Klaytn network via its mobile app, hardware wallet and browser extension-based wallet. In light of these developments, SafePal's SFP tokens have experienced a modest increase in value. At the time of writing, the token unit price stood at $0.8026, representing a 4.62% increase over the course of the past 24 hours.