Korean financial authority to heighten oversight on token listing with new guidelines

Recent statements by figures well placed in the crypto space and within the Vietnamese government point to increased potential for greater adoption of XRP, the payments solution token first developed by Ripple Labs.Photo by Silver Ringvee on Unsplash‘XRP will be big in Vietnam’Yasin Mobarak is a prominent figure within the XRP community. He’s also the founder and managing member of Dizer Capital, a venture capital and private equity firm that specializes in blockchain, internet of things (IoT) and clean energy projects. On Saturday, Mobarak tweeted out: "$XRP will be big in Vietnam." While Mobarak didn’t comment further, he did include a link to an X social media post published by XRP community member Kenny Nguyen, relaying the news that Vietnamese Finance Minister Ho Duc Phoc had announced that the government is currently working with the Vietnamese Central Bank with a view towards studying and possibly implementing the use of XRP for cross border payments. Central Bank's consideration of XRPVietnam's Central Bank is actively exploring the integration of XRP for cross-border payments, both domestically and internationally. This move aligns with the region's swift adoption of XRP, driven by its promise of faster, cost-effective and secure cross-border payment services. Ripple's recent collaboration with TPB Bank, a major player in Vietnam's banking sector, is set to fortify the entire XRP ecosystem. In September 2023, SBI Remit, a financial service provider and subsidiary company of Japanese financial services conglomerate SBI Group, initiated an XRP-based remittance service covering Southeast Asian countries like the Philippines, Vietnam and Indonesia. SBI has a long-standing partnership in place with Ripple aimed at launching international payment services. As part of that announcement, SBI confirmed the participation of Malaysia-based cross-border payments hub Tranglo in the project. Crypto adoption and growthDespite legal constraints, Vietnam emerged as a leader in crypto adoption in Asia in 2023 by claiming the third position in Chainalysis’ 2023 Global Crypto Adoption rankings. The region, still adapting to the global rise of cryptocurrencies, is undergoing a transformation. While centralized exchanges dominate in various countries, regional preferences vary. In the Philippines, a noteworthy 20% of the population engages with crypto sites for gaming and gambling. In contrast, Vietnam and Pakistan distinguish themselves with citizens favoring peer-to-peer exchanges. This approach allows direct trading between individuals, bypassing large corporations. A report produced by Kyros Ventures and Coin68 in conjunction with Hong Kong’s Animoca Brands last year found that 76% of Vietnamese crypto holders determine their investment choices based upon recommendations from friends and people within their peer group. The collaboration between regulatory bodies, financial institutions, government and crypto projects illustrates the growing integration of digital assets into traditional financial systems. This latest example pertaining to Vietnam and XRP certainly offers the potential of a much greater level of adoption in the region. While activity within Vietnam may be a key consideration for XRP investors and stakeholders in 2024, the potential for a Ripple initial public offering (IPO) is also something they’re likely to be watching out for. Over the course of the past six months, a Ripple IPO has been the subject of speculation. That speculative interest has likely increased following Circle, the issuer of U.S. dollar stablecoin USDC, filing for an IPO last week.  

Hong Kong regulators signal embrace of spot crypto ETFsHong Kong has signaled its readiness to usher in spot crypto exchange-traded funds (ETFs), as the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) jointly announced on Friday that they are prepared to accept applications for such funds.Photo by Oskar Kadaksoo on UnsplashUpdated virtual asset-related policyIn a set of circulars released, a joint circular representing both regulators and a separate circular published by the SFC, they outlined the updated policy for intermediaries engaging in virtual asset-related activities.The SFC, responsible for overseeing financial markets in Hong Kong, expressed its openness to applications for the authorization of funds with exposure to virtual assets, specifically mentioning virtual asset spot exchange-traded funds (VA spot ETFs).This move expands beyond the existing crypto futures ETFs, demonstrating Hong Kong’s commitment to adapting its regulatory landscape to the evolving crypto market. It also builds on positive commentary made by SFC CEO Julia Leung on the subject last month. Leung stated that the regulator was open to the notion of retail participation in spot crypto ETFs in Hong Kong.Leung stated:“We welcome proposals using innovative technology that boosts efficiency and customer experience. We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”Use of license platformsFriday’s SFC circular emphasized that transactions conducted by these ETFs must occur through SFC-licensed crypto platforms or authorized financial institutions. The SFC outlined that both in-kind and in-cash subscription and redemption methods are permissible for SFC-authorized spot VA ETFs, providing flexibility in fund management.Custody requirements were also addressed, with the SFC specifying that the trustee or custodian must delegate its crypto custody function exclusively to an SFC-licensed Virtual Asset Trading Platform (VATP) or entities meeting the crypto custody standards set by the HKMA.Industry responseThese latest circulars from the regulators have prompted a response from the industry. The Hong Kong Stock Exchange has reacted, welcoming the announcement. It believes that such a move would serve to strengthen Hong Kong’s position as a digital asset hub in the region. The exchange already lists a number of crypto futures ETFs, with multinational investment bank UBS having recently extended access to these products to its Hong Kong-based high-net-worth clients.While the regulatory landscape in the United States in 2023 has proven to be hostile, one very positive development appears to be ongoing work towards spot bitcoin ETF approval. Although still a matter of speculation, many industry commentators believe that approval will come through on Jan. 10. The advent of spot bitcoin and crypto ETFs in both eastern and western markets would likely make for an extremely bullish 2024 for the industry.Hong Kong’s move towards spot crypto ETFs aligns with its proactive stance in adapting to the rapidly evolving crypto landscape. The regulatory framework, as outlined in the circulars, reflects a balance between fostering innovation and ensuring investor protection. The city’s financial authorities have taken a comprehensive approach to review and update policies, once again signaling their ongoing commitment to embracing the growing role of virtual assets in the financial world.

Circle and Grab Partner to Pilot Web3 App IntegrationUSDC stablecoin issuer Circle is embarking on a strategic partnership with Grab, Southeast Asia’s multifaceted super app for transportation, deliveries, and payments relative to Web3.Announced via a press release published to Circle’s website on Thursday, the collaboration marks yet another step forward in realizing the promise of Web3 technology in Singapore.Photo by Jason Miraples on UnsplashCircle’s foray into Web3Circle’s latest offering, a Web3 services platform, is set to be seamlessly integrated into the Grab app. The objective of that integration is to enhance Grab user experiences through blockchain-enabled solutions. In that way, the partnership will broaden the horizons of Grab’s already extensive service portfolio, which includes ride-hailing, food delivery, package delivery, ticket bookings, and insurance. Grab hopes that the move will propel the Singaporean super app further into the world of blockchain technology.Grab Web3 WalletNews that Grab was on the road towards rolling out a Web3-related product offering leaked out last week when Chinese crypto reporter Colin Wu tweeted out details related to a Web3 wallet. This official announcement qualifies those initial reports, as one of the key aspects of this collaboration is the introduction of the ‘Grab Web3 Wallet.’The feature, accessible to Singaporean users, enables the easy setup of a blockchain-enabled wallet. Users will have the opportunity to earn rewards in the form of digital collectibles and utilize non-fungible token (NFT) vouchers, thereby immersing themselves in the dynamic world of digital assets.To kickstart this venture, Circle’s Web3 Services will initially support the SG Pitstop Pack NFT vouchers. These vouchers can be redeemed at popular Singapore-based stores in advance of the upcoming F1 Singapore Grand Prix. Jeremy Allaire, Co-Founder and CEO of Circle, expressed his enthusiasm for the company’s efforts in collaborating with what he termed “global-scale consumer internet brands to bring everyday utility to users.” Allaire maintains that the partnership with Grab aligns perfectly with that mission.While bringing Web3 technology into everyday use in Singapore, the partnership also lends support to the Monetary Authority of Singapore’s (MAS) Project Orchid initiative. This initiative seeks to demonstrate the real-world application of Purpose Bound Money. Circle’s Chief Strategy Officer and Head of Global Policy, Dante Disparte, expressed the company’s enthusiasm for accelerating blockchain-powered innovation alongside Grab while aligning with Singapore’s vision to be a leading global hub for responsible digital asset innovation.Circle has been steadily establishing its presence in Singapore, with notable achievements including acquiring a Major Payment Institution (MPI) license from the MAS in June and opening its official office in May.In February, Circle joined forces with Tribe, the first government-supported blockchain ecosystem builder, to launch a unique training and support program aimed at nurturing and upskilling the region’s Web3 developer talent pool.Founded in 2012 in Malaysia as a ride-hailing app, Grab initially entered the scene as a competitor to Uber in the region. Over the years, it has evolved into a true “super app,” offering a myriad of services, including GrabPay (payment services), package delivery, ticket bookings, and insurance. Its user-friendly interface and comprehensive services have made it the go-to app for more than 25 million users in Southeast Asia every month.