Korean Blockchain Firm Proposes Fintech Collaboration in Cambodia

Local crypto firms in Hong Kong are understood to be in “active” talks with the Securities and Futures Commission (SFC), with a view towards bringing about the integration of staking within crypto exchange-traded fund (ETF) products. Haiyang Ru, chief risk officer of HashKey Group, a leading Hong Kong-headquartered digital asset financial services firm, told The Block that the Chinese autonomous territory may shortly see the introduction of staking services relative to crypto derivatives trading products and crypto ETFs. He stated: "We are actively discussing with the SFC the introduction of ETF staking and tokenized money market funds, as well as launching an 'Earn' feature alongside spot trading."Photo by tommao wang on UnsplashFocus on staking in 2025HashKey is one of a number of well-known digital asset firms that is in regular contact with the regulator. Other firms are also paying attention to developments. Alessio Quaglini, co-founder and CEO of Hex Trust, a Hong Kong-based firm that offers regulated institutional digital asset custody and staking services, believes that staking will garner greater attention in 2025. He stated: “Institutions that move into crypto custody will naturally seek yield-generating opportunities for their clients."  OSL, one of the first entities alongside HashKey to be awarded digital assets-related licensing in Hong Kong, has also identified rising customer demand for yield-generating products in the crypto space within the Chinese autonomous territory.  Global competitionThe authorities in Hong Kong are likely to be watching developments overseas also. ETH ETFs in the United States have reeled in $3 billion in capital inflows without staking. Since the launch of these products, many industry commentators have suggested that in the event that staking is approved, big institutions, particularly pension funds and wealth managers, are going to be attracted to the passive yields on these ETFs.  Traditional finance (TradFi) loves yield, and in the case of Ether ETFs that include staking, an annual percentage yield (APY) of up to 5% should be possible. Last month, an S&P Global report suggested that there was growing interest from institutional investors with regard to crypto staking opportunities.  Cryptocurrency ETF issuer 21Shares has applied to the Securities and Exchange Commission (SEC) in the U.S. to include staking within its ETH ETF product. A similar application has been made by crypto asset manager Grayscale relative to its ETH ETF offering. With that activity ongoing in the U.S. and inter-jurisdictional competition in terms of digital asset growth opportunities, it’s likely that Hong Kong will be keen to enable this market offering. Staking ‘unparalleled’ in TradFi markets Earlier this week, the SFC introduced a new roadmap geared towards strengthening the digital assets sector in Hong Kong. One of the initiatives itemized is the enabling of crypto staking.  The explanatory document published by the regulator states that it is examining the introduction of staking with safeguards in respect to digital asset custody, liquidity risks and “ensuring that the operational processes for staking are transparent.” The SFC described crypto staking as a yield generation opportunity that is unparalleled in TradFi markets.

Crypto.com Scores MPI License in SingaporeIn a significant move for the Web3 industry, the Monetary Authority of Singapore (MAS) has granted online crypto trading platform, Crypto.com, a Major Payment Institution (MPI) license. This regulatory development showcases Singapore’s commitment to welcoming innovation and embracing the potential of the Web3 sector.Photo by Timo Volz on PexelsLicensing milestoneCrypto.com made the exciting announcement on Thursday, revealing that it has received the MPI license from the MAS, the country’s central bank and financial regulator. With this license in hand, Crypto.com can now provide its Digital Payment Token (DPT) services to residents of Singapore.This achievement follows the in-principle approvals granted to Crypto.com by the MAS in June of the previous year, further highlighting the company’s adherence to regulatory standards and its dedication to operating within the guidelines set by financial authorities.Community reactionThe news of the license has garnered positive reactions within the crypto community. Many members see the Singaporean government’s decision as a significant endorsement of the Web3 industry. ‘Aravind,’ a Twitter user, expressed this sentiment, stating, “Singapore government giving out a license is itself a massive plus for the Web3 Industry,” adding that it's probable the process to obtain the license has been hard fought, and likely two years in the making.Interestingly, another community member drew comparisons between Crypto.com’s successes and the challenges faced by global crypto exchange, Binance. While Binance has encountered difficulties in various jurisdictions, Crypto.com has been praised for its steady progress and forward-looking approach.Yet another Twitter user chimed in along similar lines, stating: “Whilst Binance seems to be losing ground, Crypto.com seems to be slowly doing things right and building for the future.”Binance has recently faced setbacks, such as its diminishing presence in the Australian and Canadian markets and trading restrictions imposed in certain European countries. Reports have even surfaced suggesting that Binance plans to lay off 20% of its staff in June.However, it’s important to note that Binance has not given up, as evidenced by its recent expansion into Thailand, where it established a regulatory-compliant platform. The exchange has also taken steps to ensure compliance in Japan through the creation of another regulatory-compliant platform.Additional licensesCrypto.com has set up its headquarters in Singapore, and it is in good company there with leading crypto firms Kraken and Coinbase also maintaining offices in the city state. The company has taken a truly global strategy, having marketed heavily in recent years. It maintains offices in nine other locations, including Miami, Dublin, London, Seoul, Malta, Sofia, Hong Kong and Shenzhen, as well as Kadıköy in Turkey.The crypto trading platform has received a Minimal Viable Product (MVP) preparatory license from the Virtual Assets Regulatory Authority (VARA) in Dubai, alongside firms like Komainu, Hex Trust, and GC Exchange. The company has also successfully pursued digital asset licensing in France, Australia, and the United Kingdom.Crypto.com’s acquisition of the MPI license in Singapore marks a significant milestone for the company and the broader Web3 industry. With Singapore embracing innovation and offering a favorable regulatory environment, Crypto.com is well-positioned to continue its growth and contribute to the advancement of the digital payment token ecosystem.

UAE Issues New Guidance on Crypto AML MeasuresUnder new guidance issued by the Central Bank of the United Arab Emirates (UAE), crypto businesses will be subject to strengthened anti-money laundering (AML) and countering the financing of terrorism (CFT) measures.Photo by Joshua Miranda on PexelsTightening AML regulationThe guidance, first compiled in February but released on Wednesday, which takes into account the recommendations of the Financial Action Task Force (FATF), has been introduced to enhance the supervisory and regulatory frameworks and combat financial crimes. The rules are set to come into effect within a month.The Central Bank’s guidance specifically targets Licensed Financial Institutions (LFIs) in the UAE, encompassing banks, finance companies, exchange houses, payment service providers, registered hawala providers, insurance companies, agents, and brokers. These entities will now be required to comply with the new regulations to prevent money laundering and terrorism financing activities.Firm foundationsIn a written statement, His Excellency Khaled Mohamed Balama, Governor of the UAEs Central Bank, expressed the importance of the new guidance in strengthening efforts to combat financial crimes. He emphasized the commitment to protecting the financial and monetary system’s soundness and stability, aligning with the FATF standards.The issuance of the guidance comes as the UAE aims to attract crypto businesses to the region by offering a welcoming but effective regulatory framework. In March, Dubai unveiled a dedicated agency responsible for virtual asset regulation, signaling its commitment to fostering a favorable environment for crypto-related activities. Its Virtual Assets Regulatory Authority (VARA) has also taken action against what it deems to be unregulated activity in the crypto space recently.That action together with the approaches taken by Abu Dhabi and at a national level the UAE itself with respect to digital asset licensing is indicative of a territory that is setting out the right foundation upon which to develop the innovative sector. The approach taken by regulators in the UAE has garnered praise from major crypto firms, including Coinbase, who have applauded the region’s proactive stance on regulation.The strengthened regulatory framework is expected to contribute significantly to the UAE’s ongoing efforts to prevent money laundering and the financing of terrorism. By implementing these measures, the UAE aims to safeguard the integrity and stability of its financial and monetary systems while fostering a secure environment for crypto businesses to thrive.Global regulatory effortsThe UAE’s AML guidance comes amid ongoing efforts globally to come to terms with virtual assets. Tomorrow Japan will implement its adherence to the FATF travel rule regulation relative to digital assets. Crypto businesses like bitFlyer are already adjusting to that eventuality, while also implementing a similar standard in international markets.As the UAE continues to position itself as a leading hub for the crypto industry, the introduction of these new AML rules demonstrates its proactive approach to regulation. The collaboration between the Central Bank and other global regulatory bodies, such as the FATF, showcases the UAE’s commitment to international cooperation and the sharing of knowledge and best practices in the ever-evolving crypto landscape.