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28 crypto service providers register with India’s FIUIn India, 28 entities providing services related to virtual digital assets (VDAs) have successfully registered with the Financial Intelligence Unit (FIU), the body responsible for combating money laundering in the world’s most populous country.Notable names in this list include Neblio Technologies, more commonly known as CoinDCX, Zanmai Labs, the company responsible for the WazirX crypto platform, Bitcipher Labs’ CoinSwitch, Nextgendev Solutions and Awlencan Innovations India’s Zebpay.Photo by Big G Media on UnsplashA need to register as ‘reporting entities’This information comes in response to a question posed in the Lok Sabha (India’s lower house of Parliament), where the government emphasized the significance of these entities complying with the Prevention of Money Laundering Act (PMLA). In March, the government had formally designated companies dealing in VDAs, crypto exchanges and related intermediaries as “reporting entities” under the PMLA.According to the notification, crypto exchanges and their intermediaries are obligated to conduct Know Your Customer (KYC) procedures for their clients and platform users. This includes maintaining KYC details, identity documents, account files and business correspondence records with clients.Offshore exchanges required to registerMinister of State for Finance Pankaj Chaudhary mentioned that the registration process for VDA service providers catering to the Indian market is underway. Non-compliance with these regulations may result in appropriate action under the PMLA. It has been clarified that offshore crypto exchanges operating in India are required to adhere to these guidelines. Despite that, none of the 28 entities who have registered so far appear to be offshore companies.Commenting on the development via the X social media platform, Sumit Gupta, Co-Founder of CoinDCX, wrote:”Emphasizing compliance to PMLA is vital for the safety and financial integrity of Indians, as dealing with non-registered platforms exposes citizens to nefarious actors, putting their finances at risk.” . . . “It’s encouraging to witness the Government initiating actions against non-compliant offshore entities.”While steps to provide guidelines for the industry are largely positive, the Reserve Bank of India (RBI) has been vocal in its criticism of cryptocurrencies and calls for potential bans have cast a shadow over the industry in India. The recent collapse of prominent platforms like FTX have not been helpful, only serving to exacerbate concerns relative to India’s crypto ecosystem.The negative sentiment, coupled with an ongoing funding winter, has resulted in the closure of operations for some crypto platforms, including Pillow and WeTrade, this year. Firms like CoinSwitch and Gupta’s CoinDCX have had to reduce headcount in 2023 amid challenging market conditions.Despite these challenges, there are also positive signs. A recent report by blockchain analytics firm Chainalysis found that India has been the frontrunner more recently in terms of crypto adoption in Asia.This latest development provides guidelines where anti-money laundering processes are concerned for crypto firms in India. However, the government needs to follow through with a complete regulatory framework for the industry. The Indian courts recently declined to act on such a petition on the basis that it falls within the remit of the country’s legislature and is outside the purview of the courts.

Banking Difficulties Remain in Hong Kong for Crypto Start-UpsWhile Hong Kong has demonstrated a very clear crypto-friendly stance over the course of the past six months, crypto start-ups are still struggling with banking in the Chinese autonomous territory.Photo by Manson Yim on UnsplashLicensing backlogAll the signs are that Hong Kong is striving to develop itself as a regional hub for crypto and blockchain related business. Encouraged by that stance, against a background of the United States becoming openly hostile to crypto over that very same time frame, applications are streaming in from international firms to be licensed to operate their businesses in the city.In discussion with crypto start-up applicants, CoinDesk has established that the issue extends to firms that have already obtained a license to operate. To compound matters, the Hong Kong regulator, the Securities and Futures Commission (SFC), has a shortage of manpower, with just eight officials currently working on the applications of eighty crypto firms.Speaking to that backlog, Amy Yu, APAC CEO for Swiss crypto financial services company, SEBA Bank, stated: “This probably would have been a different story six or nine months ago.”A known problemIt appears that both the SFC and its regulatory peer, the Hong Kong Monetary Authority (HKMA) were aware of the issue and tried to get out ahead of it. Late last month, both regulators convened a meeting with bank officials and virtual asset service providers (VASPs).The objective was to try to forge a path forward such that banks could amend their approach, enabling greater facilitation and acceptance of crypto businesses such that the banks would be more inclined to approve bank account applications from those fledgling businesses.Arthur Yuen, Deputy CEO of the HKMA addressed the matter in a blog post published to the regulator’s website on April 27. Yuen was clear in calling on the banks to enable banking for VASPs:“With the implementation of the regulatory regime for VA [virtual assets] activities in Hong Kong and the strengthening of supervisory regimes in different jurisdictions according to the international standards, and as the banking industry develops a better understanding of the VA industry over time, we expect that regulated virtual asset service providers (VASPs) will be able to successfully apply for a bank account through a reasonable process.”Banker resistanceElaborating on the matter further, it’s clear that Yuen and his colleagues understand the importance of banking in enabling this nascent business sector such that the broader strategy of a pro-crypto business environment is affected in Hong Kong. “To attract businesses from new markets, it is crucial to have high quality financial services, while enhancing corporate access to bank accounts would be one of the key priorities,”he stated.An attendee at that regulator-organized round-table last month said that “It was more like a wish list from the regulator,” and that “whether the banks fully embrace it is another matter.” The issue remains as a major impediment to the ability of crypto start-up companies to operate, Some are being forced to try and work around the stumbling block, relying instead on overseas banking partners.

Ripple Labs, the American technology company that developed and supports XRP and the XRP Ledger (XRPL), has partnered with Japan’s Web3 Salon initiative, while in a separate development, the company is also funding crypto-related academic research within the Asia-Pacific (APAC) region.Photo by Moose Photos on PexelsDriving Web3 adoption in JapanIn a statement published to its website on June 9, the company outlined that it has partnered with Japan’s Web3 Salon project, a Web3 initiative with the objective of educating businesses and developers, nurturing blockchain startups and driving Web3 adoption through the provision of startup incubator programs and running hackathons and workshops.One of Japan’s most active Web3 projects, Web3 Salon has the backing of the Japan External Trade Organization (JETRO). The project has also collaborated with a range of Japanese Web3 startups, Asia Web3 Alliance Japan (AWAJ), institutional investors and venture capital firms, as well as a number of key industry stakeholders. Grant fundingAs part of its involvement in this collaboration, Ripple will provide grant funding of up to $200,000 to Japanese startups who have developed their projects on XRPL. Ripple’s grant funding forms part of its broader initiative to finance XRPL-related startups in Japan and Korea. Earlier this month, it confirmed that it had established the XRPL Japan and Korea Fund for this purpose.  At a broader level still, Ripple said that this latest funding commitment also falls under its one billion XRP commitment. Back in 2022 the company committed one billion XRP to advance XRPL ecosystem projects. Christina Chan, Senior Director of Developer Growth at Ripple, commented on the development, stating:“Ripple is proud to collaborate with Web3 Salon to unlock new opportunities in Japan’s thriving startup ecosystem. Together, we hope to fuel innovation and support the next generation of leaders.” Supporting APAC university researchIn a separate blog post published to its website on June 10, Ripple outlined that it was committing $5 million in funding within the APAC region as part of its University Blockchain Research Initiative (UBRI). The funding will cover blockchain-related academic research projects in Japan, South Korea, Singapore, Taiwan and Australia. $1.1 million has been allocated to South Korea’s Korea University in funding that will be released over a six-year period. The funding builds on another relationship that had already been established with Yonsei University via the UBRI in 2024. Equally, Japan’s Kyoto University had engaged with the UBRI last year. That support is now being renewed while funding is also being allocated to the University of Tokyo. The two institutions will be able to avail to funding in excess of $1.5 million.Other APAC region educational institutions to benefit include the National Kaohsiung University of Science and Technology (NKUST) in Taiwan, the National University of Singapore (NUS) and Nanyang Technological University (NTU) in Singapore and the Australian National University (ANU) in Australia.’An epicenter of digital finance’Ripple called APAC “an epicenter of digital finance.” Expanding further on that assertion, it stated that the region has shown “an appetite for experimentation and boasting thriving communities for builders.” Consequently, it views the APAC region as a leader in payment technologies and digital asset adoption.