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Representatives from various judicial authorities in China, including the country’s Supreme People’s Court, held a seminar recently to discuss crypto-related legal issues. Speculation on easing of crypto regulationsThat event has sparked a wave of speculation within the crypto sector about a potential softening of the official stance in China relative to crypto. The Chinese government banned crypto trading and mining in 2021. However, beyond these speculative takes, no verifiable information has arisen following the seminar to indicate that the Chinese authorities are pivoting and looking to overturn the current bans on crypto trading and crypto mining. A report emerged on Feb. 25 on Chinese social media platform WeChat that the seminar was held on Feb. 23. Among the attendees was the Dean of the Law School of the Renmin University of China, the Dean of the Law and Fintech Institute (China University of Political Science and Law) and officials from the Supreme People’s Court. Photo by Mikhail Pavstyuk on Unsplash‘Virtual currency disposal issues’The research topic, “virtual currency disposal issues,” included consideration not just of the disposal path of virtual currency but also how to establish and improve digital currency supervision going forward. Participants scrutinized both criminal and civil cases that had involved digital assets, with a focus on possible future enforcement strategies. Some attendees highlighted financial security concerns at a national level relative to digital assets, proposing a strengthening of Chinese regulations in order to minimize that risk. One official from Beijing’s Third Intermediate People’s Court outlined past rulings within the Chinese judicial system in crypto-related cases, while suggesting that there was a need for further research to be carried out in order to further refine the approach taken by the courts. Some proposed a need for further research that takes into consideration legal theory together with real-world application relative to the treatment of virtual assets. This view received the backing of Zhai Chao, vice president of the Supreme People’s Court, the highest court within the People’s Republic of China.Establishing legal precedentOver the last few years, Chinese courts have had the opportunity to establish several precedents relative to digital assets. In 2023 the People’s Courts recognized the legal status of cryptocurrency, classifying it as property. Around the same timeframe, the Shanghai Second Intermediate People’s Court published a report which recognized the unique attributes of Bitcoin, with the report also considering the legal treatment of cryptocurrencies. In September of last year, the People’s Court Daily, a state-run media outlet, published an article calling for standardization in terms of the legal treatment of virtual currencies within the court system. Last August a court in the Chinese province of Hubei ruled that investors must bear their own losses from virtual asset investments where such losses were caused by the closure of a crypto exchange. November 2024 saw further crypto-related court precedent in China, with the Shanghai High Court recognizing virtual currency as property, while a court in Shenzhen ruled that an employment contract that included payment of wages using stablecoin was invalid.

Global crypto exchange OKX has acquired full licensing in the United Arab Emirates and with that, it has launched its trading platform in the Gulf state. Serving retail and institutional clientsThat’s according to a press release published by PR Newswire on the company’s behalf on Oct. 10. The platform has now been opened to both retail and institutional investors in the UAE. Those customers who have completed the required onboarding steps, either via the OKX app or the OKX website, can now access the firm’s range of services. Those services include spot trading, on-chain yield-bearing products, token conversion and express buy and sell services. For retail-level customers to qualify for derivatives trading, they are obliged to undergo a knowledge test in addition to undertaking a suitability assessment.  When it comes to institutional clients, the platform has advised that they will have access to derivatives trading so long as they have met specific criteria set out by the company. It’s understood that this will include specific "Know Your Customer" requirements set out by OKX. Photo by Phil Shaw on UnsplashMinimum liquidity requirementsAdditionally, an institutional investor must meet two out of three minimum liquidity requirements. These are understood to include a net annual turnover of $40 million, the institution’s own funds being in excess of $2 million or a balance sheet demonstrating a minimum of $20 million. Investors will be able to deposit or withdraw UAE dirhams (AED) to/from the OKX platform, with AED trading pairs having been established for a range of cryptocurrencies including Bitcoin, Tether and Ether. Launch eventAside from the company’s press release, OKX made its announcement at an event at the Museum of the Future at an event which it titled “A New Alternative for Dubai.” The event featured OKX CEO Star Xu, the firm’s CMO Haider Rafique, SkyBridge Capital’s Anthony Scaramucci, Polygon Co-Founder Sandeep Nailwal and Stacks Co-Founder Muneeb Ali.  Scaramucci spoke positively about the business conditions that have been created in the UAE, stating that the change “in 20 years is nothing short of a miracle.” With that, he recognized that’s why OKX has established itself within the UAE. OKX General Manager for the Middle East and North Africa (MENA), Rifad Mahasneh, told Cointelegraph that the company is “extremely bullish on the UAE as a crypto hub and only see the sector growing in the next few years.” Mahasneh told CoinDesk that the firm has two targets in the UAE, with its intention to onboard retail clients via the OKX app and lure TradFi institutions. "The return on investment is going to come from our ability to convert traditional institutions,” he stated. OKX has been working towards this moment for some time. It opened an office in Dubai in mid-2023, quickly expanding its presence by hiring local staff. Its local subsidiary, OKX Middle East Fintech FZE, received a non-operational license from Dubai’s Virtual Assets Regulatory Authority (VARA) in January of this year.

Hong Kong Insurer Expands Into Digital AssetsOneDegree, a leading virtual insurer in Hong Kong, has successfully raised US$55 million in its latest funding round to support the expansion of its digital assets insurance portfolio, according to an announcement made by the company on Thursday.The round saw participation from existing investors such as Gobi Partners, Sun Hung Kai, and Bitrock, as well as new investors. This marks OneDegree’s fifth fundraising effort since its establishment in 2016 and brings its total funds raised to over US$97 million. $28 million of this Series B round had been raised in 2021.Digital asset insurance will be offered under the name “OneInfinity” by the firm in partnership with global insurance behemoth Munich Re. The product is being targeted at digital asset trading platforms, custodians, asset managers, and technology providers. While the company doesn’t insure DeFi projects right now, it aspires to do so in the future.Photo by Kindel Media on PexelsLeading Hong Kong online insurerAs one of the four purely online insurers licensed by the Hong Kong Insurance Authority, OneDegree is at the forefront of the authority’s push to integrate technology into the insurance sector to enhance services and reduce costs. The company is not permitted to hire agents, and all sales must be conducted online or through mobile apps.Alvin Kwock Yin-lun, Co-Founder of OneDegree and former JPMorgan banker, expressed his gratitude for the strong support received during this challenging fundraising environment. Kwock attributed the successful round to the company’s robust revenue growth in various insurance segments, including pet, home, fire, medical, and digital assets coverage. He expects OneDegree to achieve profitability next year.Digital asset insurance importanceHighlighting the importance of digital asset insurance, Kwock pointed out that in 2022, approximately US$3.8 billion worth of digital assets were compromised globally, out of a total global cryptocurrency market capitalization of US$1 trillion. He estimated that the market for digital asset insurance premiums would surpass US$1 billion annually in the coming years.To capitalize on this growing demand, OneDegree has been focusing on providing insurance coverage to virtual asset trading platforms and operators. The company introduced its cryptocurrency insurance by offering a HK$100 million cover to Hong Kong Digital Asset Exchange in November 2021.Kwock emphasized that the recent regulatory regime introduced by the Securities and Futures Commission (SFC) on June 1 will further drive the demand for digital asset insurance. He believes OneDegree is well-positioned to offer comprehensive coverage for the risks faced by digital asset operators, as the company possesses the necessary expertise and experience.Looking ahead, OneDegree plans to expand its presence across Asia and offer innovative products such as InsurTech and cybersecurity software-as-a-service solutions.OneDegree’s expanding presence in Asian markets relative to digital assets is to be welcomed. The digital assets space has had its fair share of collapses that may have been prevented with the involvement of a digital asset insurance specialist, and failing that, the application of such a product would naturally prevent losses suffered by market participants.