Mammoth Foundation signs deal with the Philippines’ AFAB for blockchain business collaboration

Hong Kong and the UAE Collaborate on Crypto RegulationHong Kong and the United Arab Emirates’ (UAE) central banks have announced a collaboration to work on cryptocurrency regulations and financial technology development. The move is significant insofar as both territories have been making headway in developing global crypto hubs over the course of the past six months.Photo by Nick Fewings on UnsplashStrengthening cooperationFollowing a meeting on Monday, the Hong Kong Monetary Authority (HKMA) and the Central Bank of the UAE published a statement on Tuesday, in which they set out the areas of cooperation between them. They agreed to strengthen cooperation on “virtual asset regulations and developments.”The central banks also expressed their commitment to facilitating discussions on joint fintech development initiatives and the sharing of knowledge through their respective innovation hubs.Financial infrastructureDuring the meeting, the officials highlighted the importance of financial infrastructure and financial market connectivity between the two jurisdictions. The Governor of the Central Bank of the UAE, H.E. Khaled Mohamed Balama, expressed his anticipation for an ongoing and long-term relationship with the HKMA.HKMA’s Chief Executive Eddie Yue echoed this sentiment, emphasizing that both regions share many complementary strengths and mutual interests, which will contribute to the economic benefits of the collaboration.In addition to the meeting, a seminar was organized for senior executives from banks in Hong Kong and the UAE. The seminar covered various topics, including improving cross-border trade settlement and exploring how UAE corporations can leverage Hong Kong’s financial infrastructure platforms to gain access to Asian markets.This collaboration comes at a time when the Securities and Futures Commission (SFC) in Hong Kong is allowing virtual asset service providers (VASPs) to cater to retail investors starting from June 1. Christopher Hui, the Treasury Chief of Hong Kong, emphasized that virtual assets are here to stay and acknowledged the fundamental value they bring. Hui also stressed the importance of regulation to harness the positive elements of cryptocurrencies while mitigating potential risks.Since the announcement of the application process by the SFC, several cryptocurrency exchanges, including CoinEx, Huobi, BitMEX, and OKX, have filed applications to provide dedicated crypto trading services in Hong Kong.FAFT travel ruleThe collaboration between the central banks of Hong Kong and the UAE marks a significant step in the global development of cryptocurrency regulations and fintech innovation. The move is demonstrative of ever improving levels of international cooperation on digital assets worldwide.Both jurisdictions are moving forward with the implementation of the Financial Action Task Force’s (FATF) travel rule. The UAE issued new guidelines in that respect on Tuesday. Hong Kong has gotten a head start in this respect, with the implementation of the travel rule through the introduction of the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill in December 2022.By leveraging their respective strengths and knowledge-sharing efforts, these regions aim to foster a conducive environment for the growth and adoption of digital assets. With increased financial infrastructure connectivity and joint initiatives, both jurisdictions are poised to benefit economically from this collaboration in the long run.

American crypto exchange and custodian Gemini announced via its blog on Oct. 29 that it has been awarded in-principle approval for a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). In an X post on Oct. 23, Dan Clarke, who worked for Gemini in Singapore in an International Marketing & Operations role in 2021, outlined that back then the company ran the first crypto-related full page ad in the Straits Times with the slogan “We’re in Singapore. For Good.” Fast forward three years and it appears that Gemini is making good on that commitment through this latest regulatory-compliant milestone.Photo by Swapnil Bapat on UnsplashSingapore to play a crucial roleThe MPI license will enable Gemini to offer digital payment tokens and cross-border money transfer services in Singapore. Gemini’s Asia-Pacific (APAC) business is headed up by Saad Ahmed. Ahmed commented that Singapore has been at “the heart” of its operational expansion within the APAC region. Expanding on that further, he stated:“While the United States remains our largest market and global headquarters, Asia and Singapore in particular play a crucial role in our global strategy.”  Ahmed outlined that Singapore represents the company’s second-largest market, with plans to double its current Singaporean workforce and move to a larger office space. The Gemini executive believes that this in-principle licensing approval takes the company one step closer to offering services that cater to the needs of residents of the city-state.  Serving users across the APAC regionIn its blog announcement, the firm said that “since establishing our regional headquarters in Singapore, we’ve focused on expanding our footprint, ensuring that we bring a localized, secure, and compliant trading experience to users across the region.” With the regulatory environment in its home market being currently hostile to crypto, Gemini has pursued a strategy followed by many of its peers in looking for growth opportunities overseas instead. In April of last year, the company announced that it was in the process of opening an engineering center in India.  In June 2023 the company publicized its intention to pursue a crypto trading license within the United Arab Emirates (UAE). At the time the company’s co-CEOs, Tyler and Cameron Winklevoss, referred to the “hostility and lack of clarity” when it came to the regulatory environment within the United States. Regulatory clarity to drive growthAhmed believes that regulatory clarity in Singapore will be a driver of growth, leading to greater adoption across the region. With regard to the U.S., he has the expectation that the crypto industry will grow regardless of whether former U.S. President Donald Trump or Vice President Kamala Harris wins the upcoming presidential election.  Notwithstanding that, Gemini’s Winklevoss twins have donated over $2 million to Trump’s campaign, while also contributing funds to a super political action committee (PAC) supporting John Deaton, a Republican challenger to the Senate seat of fierce crypto critic Senator Elizabeth Warren.  Regulatory conditions in Canada have proven to be too much to handle for the company. At the end of September, Gemini announced that it would close all customer accounts in Canada by December 31 as a direct consequence of new regulations which have been introduced by the Canadian Securities Administrators (CSA).

China’s GAPP proposes ban on gaming crypto token conversionChina’s gaming industry hit a significant speed bump on Friday as the General Administration of Press and Publication (GAPP) unveiled a draft proposing substantial changes to the regulation of in-game tokens, signaling a strategic shift in the country’s stance on digital currencies in gaming.Photo by blurrystock on UnsplashImplementing more stringent controlsThe proposed regulations by GAPP bring about a ban on the conversion of game tokens into physical goods or legal tender. These guidelines, spanning 64 articles, impose stringent requirements on gaming companies. These include mandatory licensing in China, a two-year data retention policy, adherence to national and socialist values in content and the eradication of anonymous user registrations.One significant aspect of the guidelines is Article 23, which specifically addresses the use of game tokens. It proposes restrictions on exchanging them for physical goods, services or legal tender.The regulatory landscape becomes more complex due to the ambiguity surrounding cryptocurrencies, which are not recognized as legal tender in China. Although a warning was issued about the risks inherent in non-fungible tokens (NFTs), they remain legal in China. NFTs feature prominently within blockchain-based gaming.Game providers are also confronted with new limitations on inducements, such as bonuses for registration or daily logins, and are mandated to implement measures against irrational consumer spending.Gaming sector falloutIn the wake of these developments, several Chinese tech giants experienced a significant market downturn in Hong Kong. Tencent, a global gaming powerhouse and one of China’s most valuable companies, saw a 12.4% drop on Friday, marking its worst day since October 2008. This decline erased a massive 367 billion Hong Kong dollars ($47 billion) from Tencent’s market value.NetEase, another gaming giant, witnessed a 25% dive in Hong Kong afternoon trade, recording its most substantial daily loss since its listing in June 2020. Additionally, Bilibili and Kuaishou, prominent players in video-sharing and short-video platforms, experienced declines of 9.7% and 7.2%, respectively, given their involvement in online gaming.Market uncertaintyWith this latest development, the future of gaming crypto tokens remains uncertain in China, with investor confidence having been hit hard. Putting the matter in context on Friday, Stansberry Research Analyst Brian Tycangco took to the X social media platform, stating:”Govt regulation will effectively render prevailing business models irrelevant due to uncertainty regarding monetization. Games are inherently reward-based and if you clamp down on the use of rewards/incentives, you turn an entire industry on its head.”The guidelines, open for public consultation until Jan. 22, 2024, have not yet been legally enacted. This time frame allows for feedback and potential adjustments before enforcement.Notably, the Web3 gaming sector has witnessed substantial activity, with approximately a million unique active wallets engaged daily over the past three months, according to DappRadar. Industry experts, including Yat Siu of Animoca Brands, anticipate a potential surge in user engagement, emphasizing the potential impact of these regulations on the gaming industry’s trajectory.