Upbit executive: Establishing crypto regulations hinges on building trust

BIT Exchange Unveils XRP Options TradingBIT Exchange, a cryptocurrency derivatives platform, has announced the introduction of XRP options trading in a move that provides for more advanced trading dynamics within the digital assets space.The development, disclosed via a blog post published to the company’s website on Thursday, offers users the unprecedented opportunity to engage in XRP options trading without the need to possess the actual cryptocurrency.Photo by Kanchanara on UnsplashUS dollar settlementA distinguishing feature of this initiative is that profit and loss settlements will be conducted in US dollars. To ensure a seamless experience, BIT Exchange has partnered with OrBit Markets to maintain robust order book liquidity. This expansion of offerings complements the exchange’s existing suite, which already includes stalwarts like Bitcoin (BTC), Ether (ETH), Cardano (ADA), Toncoin (TON), and Milady (LADYS).Facilitating hedgingFor the uninitiated, options are derivative contracts that empower the holder with the right to buy or sell the underlying asset at a predetermined price before a specified date. Call options grant the holder the buying privilege, while put options provide the selling prerogative. Typically deployed for hedging purposes, options play a pivotal role in mitigating bullish or bearish risks, and they can also act as a supplementary revenue source when traders “write” options alongside their spot market holdings.Justin Buitendam, BIT Exchange’s Global Head of Institutional Sales, remarked on the milestone, stating: “We’re excited to be among the early platforms offering XRP options trading to institutional and retail traders, providing both long and short options trading opportunities.”XRP boostAs of now, XRP boasts a market capitalization of $26.5 billion, positioning it as the world’s fifth-largest cryptocurrency. Notably, XRP, akin to several other alternative cryptocurrencies, exhibits greater volatility compared to the more established Bitcoin and Ether.The native token of the Ripple global payments network has experienced a market resurgence in recent weeks, following a positive outcome to a lawsuit taken by the Securities and Exchange Commission (SEC) against Ripple Labs in the United States. In the wake of that decision, many cryptocurrency exchanges that had delisted the token immediately reinstated it. BIT Exchange’s strategic move to introduce XRP options aligns with those recent legal developments.Ripple, as the issuer of the XRP token, garnered a partial victory in its ongoing legal battle against the SEC. The court ruled that XRP is not classified as a security when traded on centralized exchanges. However, a different classification may apply when XRP is directly sold to institutions.The matter is far from settled, however. More recently, the SEC has sought permission to challenge the court’s verdict, underscoring the dynamic and evolving landscape of cryptocurrency regulations.BIT Exchange was spun out of Singapore-based crypto financial services platform, Matrixport. Both have been co-founded by Jihan Wu, better known for having founded leading Chinese crypto mining outfit Bitmain.

The Thai government is planning to enable tourists to spend crypto via credit card, according to information revealed by Thailand’s finance minister on May 26.Photo by rc.xyz NFT gallery on UnsplashPichai Chunhavajira, the Southeast Asian nation’s finance minister and deputy prime minister, delivered a keynote speech at an investment seminar in Bangkok in which he outlined that while some countries enable people to purchase goods directly with cryptocurrency, another option is to allow consumers to link their digital assets with other services such as credit cards.  In that way, the consumer can spend crypto through credit card services. English language news outlet The Nation reported that Chunhavajira confirmed that the government is preparing to launch a pilot project that would allow tourists to spend crypto in this manner within Thailand. Seamless conversion from crypto to fiatWith this system, merchants would still receive payment in Thai baht. From the point of view of the user, crypto could be spent but any exchange between crypto and fiat currency would happen seamlessly and automatically via the credit card service provider’s platform.Discussions between officials from the Bank of Thailand and the Ministry of Finance are ongoing with regard to the proposed scheme. It’s understood that similar existing models which have been introduced overseas are being examined. It’s likely that the pilot program is the same as the project that was announced by Chunhavajira in January when he alluded to a program enabled for foreign tourists visiting the Thai tourist resort of Phuket. At that time, it was envisaged that the scheme would adhere to existing legal frameworks and implicate identity verification through a third party service provider, with conversion from crypto to Thai baht to be enabled such that there would be no material difference experienced by merchants. Targeting touristsThis is not the first occasion in which tourists have been targeted by crypto-related initiatives. Earlier this month, it was announced that Binance Pay, a crypto payment service offered by global crypto exchange Binance, had partnered with the government of the Buddhist kingdom of Bhutan to launch the world’s first national-level crypto tourism payment system. In July 2024, the governor of Jeju Province in South Korea advocated for the use of non-fungible tokens (NFTs) and crypto as part of Jeju Island’s tourism strategy. Last December the province announced a digital transformation roadmap that sets out a cashless future. Plans include the introduction of a system for converting digital assets and facilitating payment methods from neighboring countries like China and Japan. However, not all governments have been keen to facilitate tourists in spending crypto. In May 2023, the governor of the province of Bali in Indonesia cautioned foreign visitors to the region against the use of cryptocurrencies as a means of payment for goods and services. Governor Wayan Koster warned that visitors using cryptocurrency for payments could face severe consequences, including criminal penalties and deportation.

Crypto.com Halts Institutional Exchange Service in the USCrypto.com, the Singapore-headquartered cryptocurrency trading platform, has announced the suspension of its institutional exchange service in the United States starting from June 21.Photo by Carl Revell on UnsplashResponding to market conditionsThe decision to halt the service is primarily attributed to limited demand from institutional clients, exacerbated by the challenging market conditions prevailing at present. According to a statement released by Crypto.com, advanced notice was provided to the platform’s institutional users regarding the suspension of the service.However, it is important to note that Crypto.com’s retail mobile application and platform will continue to operate normally in the US. “We recently made a business decision to suspend the institutional offering of the Crypto.com exchange in the US as of 11:59 pm EDT June 21, 2023, due to limited demand from institutions in the US in the current market landscape. Impacted institutional users were given advance notice to support a smooth transition,” the statement clarified.Despite the cessation of institutional services, American retail users can still access CFTC-regulated cryptocurrency derivatives trading offered by Crypto.com. Additionally, the UpDown Options feature remains available, enabling users to open long or short trading positions on the future movements of various cryptocurrencies.Crypto.com has expressed openness to the possibility of relaunching its institutional exchange in the United States in the future, indicating that the suspension is not necessarily permanent.CoinRoute integrationIn more positive news, on Thursday the firm announced that it had entered into a collaboration with smart order routing and trade execution service provider CoinRoute to integrate its service with the platform. Crypto.com Managing Director, Giuseppe Giuliani, said that “the integration aligns perfectly with our mission to accelerate the world’s transition to cryptocurrency by providing institutional-grade solutions that enhance the liquidity environment for cryptocurrencies.”CoinRoute’s algorithmic crypto trading technology is already live on the Crypto.com platform.While Crypto.com adjusts its offerings in the US market, it recently received a major payment institution (MPI) license for digital payment token (DPT) services from the Monetary Authority of Singapore (MAS). This regulatory approval allows Crypto.com to continue providing its services in Singapore.Further evidence that the exchange business continues to find ways to propel itself forward includes its recent move to update its service offering to include the use of artificial intelligence-based technology. Additionally, last month it set out plans to list the euro as a trading option, leveraging the liquidity of the European currency while allowing it to be traded against leading digital assets such as bitcoin, Ethereum, and USDT.The month of June 2023 has been a turbulent one for cryptocurrency exchanges operating in the United States. The Securities and Exchange Commission (SEC) has initiated legal proceedings against both Binance.US and Coinbase, accusing them of various securities laws violations. The actions of the SEC have drawn criticism from the broader cryptocurrency community, as the regulatory crackdown in the US appears to be intensifying nearly eight months after the collapse of Bahamas-based cryptocurrency exchange, FTX.As the cryptocurrency industry continues to navigate evolving regulatory landscapes, market participants are closely observing developments in the US and other jurisdictions, which could have far-reaching implications for the future of digital assets.