SBI and Chiliz join forces in fan token offering in Japan

Binance Japan now fully operationalGlobal cryptocurrency exchange Binance has officially commenced full operations in Japan through its locally incorporated Japanese entity, Binance Japan.Photo by Sora Sagano on UnsplashSetting off on a compliant footingFollowing a period of collaboration with regulatory authorities, Binance Japan is positioning itself firmly under the purview of clear regulatory frameworks set by the Japanese authorities.The Japanese government has instituted stringent regulations for cryptocurrency exchanges, aiming to bolster consumer protection, thwart money laundering and create a more secure trading environment. Binance Japan’s decision to align itself with these regulations comes in a year in which the leading crypto platform has encountered regulatory pushback in a whole host of jurisdictions around the world.Under the established regulatory framework, cryptocurrency exchanges in Japan are mandated to secure a license from the Financial Services Agency (FSA), the nation’s financial regulatory body. This licensing process ensures that exchanges adhere to rigorous security measures, maintain robust internal controls and implement protocols for the protection of customers.Phased market entryIt emerged back in May that the company planned to establish a separate Japanese entity. In August Binance Japan started to offer a limited service, enabling access to 34 token listings. In November the firm added 13 further digital assets, with the suggestion that it would eventually offer 100 tradable digital assets.Taking to the X social media platform on Sunday, Sota Watanabe, the founder of Polkadot-centric multichain dApp hub Astar Network and the CEO of Singapore-based Startale Labs, confirmed that Binance Japan is now in full operation. Watanabe wrote:”Binance Japan started its full operation yesterday under clear regulations set by the government, and they have listed Astar from day 1 as one of the first cryptos. I hope more and more Japanese people enter our ecosystem.”Focus on stablecoinsIn a virtual business discussion at the end of August, Head of Binance Japan, Takeshi Chino, set out the company’s vision going forward. Part of the business plans includes potential collaborations on the development of stablecoins. Further news on that pursuit became known the following month when Mitsubishi UFJ Trust and Banking Corporation (MUTB), the trust arm of Japan’s largest bank, announced a collaboration with Binance Japan that will investigate the issuance of public blockchain stablecoins denominated in the local currency, the Japanese yen, as well as other fiat currencies.The full launch of Binance Japan signifies the increasing recognition of cryptocurrencies as a legitimate financial asset class. With a major global exchange like Binance willingly adhering to local regulations, it sets a positive precedent for other exchanges and entities in the region to follow suit.Furthermore, given Japan’s historical significance in the global cryptocurrency market, Binance’s operations in the country could contribute significantly to the broader acceptance and integration of cryptocurrencies into the financial ecosystem. This move aligns with the global trend of heightened institutional interest in digital assets.Binance Japan’s initiation of full operations within a clear regulatory framework marks a further stride forward for both the exchange and the Asian crypto market.

Singapore-headquartered cryptocurrency exchange platform Crypto.com is making a move to further its global reach through an application for a virtual asset trading platform (VATP) license with the Hong Kong Securities and Futures Commission (SFC). Application via Fortis DAX HK LimitedA number of months ago, the SFC established a list of both licensed platforms and license applicants. Crypto.com is the latest entity to appear on that list through a locally incorporated entity, Fortis DAX HK Limited. The application was made on Feb. 9, 2024. In this pursuit of regulatory approval in Hong Kong, Crypto.com now joins 16 other exchanges, including notable players like Bybit, Bullish, OKX and VAEX.Photo by Jie Yeu Teoh on UnsplashRegulatory ultimatumThe urgency to obtain a VATP license has become more immediate, given the regulatory ultimatum issued by the SFC recently. A stern warning from the Hong Kong regulator has been issued, mandating that exchanges must apply for the said license by Feb. 29, 2024, with a looming shutdown deadline of May 31, 2024, for those that fail to comply.  Currently, only two platforms, OSL and HashKey Exchange, hold the coveted licenses, underscoring the rigorous process and the importance of compliance in operating within the Hong Kong market.  Despite recent approvals of spot bitcoin exchange-traded funds (ETFs) in the United States and the acceptance of applications for similar products in Hong Kong, regulators are once again asserting their authority in the crypto space, demanding stringent compliance measures to safeguard investors and combat financial crimes.  Julia Leung, the chief executive officer of the SFC, emphasized the importance of regulatory oversight in today's landscape, highlighting the need to protect investors and hold wrongdoers accountable.  In light of these developments, the SFC has issued a cautionary advisory to investors, urging them to verify the regulatory status of the platforms they engage with. While exchanges can continue operating during the application process, investors are encouraged to take proactive measures, such as closing accounts with unlicensed platforms or transferring their assets to SFC-licensed exchanges before the looming deadline.  Licensing and partnerships Despite the regulatory pressures, Crypto.com appears to be navigating the challenges adeptly, leveraging its strategic partnerships and growth initiatives to reinforce its position in the market. In a recent interview, Eric Anziani, the COO of Crypto.com, highlighted the success of the company's collaborations with sports giants like F1 and the UFC, as well as a stadium naming rights deal in Los Angeles that has led to the Crypto.com Arena. These partnerships not only enhance brand visibility but also serve as avenues for attracting new users to the platform. With an approaching user base of 100 million, Crypto.com continues to expand its offerings, recently introducing Crypto.com Prime, an exclusive program tailored for high-net-worth individuals requiring a $1 million deposit. Anziani emphasized the importance of compliance, user convenience and competitive fees, while also acknowledging the diverse trading preferences among users. This license application is the most recent example of Crypto.com’s efforts to expand compliantly. Over the course of the past 12 months, the company has secured trading licenses in Spain, the UK, Dubai and Singapore.

Senior Gyeonggi Officials Required to Declare Virtual Asset Holdings by Sept 1The Gyeonggi province of South Korea is requiring officials of rank 4 or higher to report their cryptocurrency holdings from today until September 1. This move is in line with the amended Public Service Ethics Act, set to take effect on December 14, which will require senior government officials to declare their virtual asset holdings.Photo by Mathew Schwartz on UnsplashRevised code of conductThe nation’s most populated provincial government announced today the finalization and implementation of revisions to the employee code of conduct. These changes intend to prevent government employees from exploiting their official positions for personal financial gains. Before finalizing these changes, the province had sought public feedback on the amendment until July 25.In May, Gyeonggi Governor Kim Dong-yeon convened a meeting to call for devising a plan that encourages public officials under financial disclosure requirements to declare their virtual assets. He emphasized the importance of proactive measures in this regard.On August 14, the provincial government presented guidelines on virtual asset reporting, detailing the reporting process, content requirements, and penalties for false submissions.A move towards transparencyLee Seon-beom, the Head of Gyeonggi’s Investigation Office, explained that this initiative is designed to alleviate the public’s concerns over virtual assets. It also aims to promote transparency among officials, ensuring they avoid unlawful accumulation of wealth.