Velo token gains momentum across Southeast Asia's crypto landscape

Singapore Elects Crypto Skeptic as PresidentGarnering 70.4% of all votes cast on Saturday, Singaporeans chose to elect Tharman Shanmugaratnam as their next president, a move that may have implications for Singapore’s outlook when it comes to digital assets.While many had hoped that he would be the nation’s first non-Chinese prime minister, the crypto industry has greeted his rise to this largely ceremonial role with mixed feelings. Shanmugaratnam’s previous stances on cryptocurrency and digital assets have been predominantly critical.Photo by Justin Lim on UnsplashFormer MAS ChairmanIn the past, the president-elect has referred to cryptocurrency as “slightly crazy” and “purely speculative.” His ascent to the presidency comes after a distinguished career that includes serving as the former finance minister, deputy prime minister, and chairman of the Monetary Authority of Singapore (MAS), the country’s central bank, from 2011 to 2023.Crypto platform collapsesIt was during his tenure at MAS that two prominent crypto companies, Three Arrows Capital (3AC) and Terraform Labs, faced catastrophic collapses.The demise of Terraform Labs, along with its TerraUSD (UST) stablecoin, triggered a severe “crypto winter” in May 2022, from which the industry is still struggling to recover. This downfall wiped out a staggering $500 billion in value over just two weeks, devastating the portfolios of numerous retail investors.The ripple effect of TerraUSD’s fall also engulfed 3AC, a significant cryptocurrency hedge fund headquartered in Singapore. The contagion spread across the cryptocurrency market, leading to the downfall of other major entities like crypto lending platforms Celsius Network and Voyager Digital, alongside Singapore-based Hodlnaut.Given that these catastrophic events unfolded during Shanmugaratnam’s tenure at MAS, it’s plausible that he bore the brunt of the consequences. That might explain why in speaking on the subject in 2021, he appeared to be more accommodative, suggesting that there may be a useful role that crypto could play and highlighting that Singapore had allowed crypto businesses to develop within the city-state.In June of last year, MAS reprimanded 3AC for providing misleading information and exceeding the allowed assets under management (AUM) threshold, thereby breaching its status as a registered fund management company.In January, Shanmugaratnam said that regulating the crypto sector would give credibility to speculation and on that basis, it would be best to leave it unregulated. He went on to suggest that crypto should be subject to existing regulation as laid down for traditional finance.Early stage concernsBack in 2018, when he was Singapore’s finance minister, Shanmugaratnam questioned the wisdom of broad regulation potentially legitimizing a speculative and “slightly crazy” market. During the 2018 World Economic Forum, he emphasized the importance of anti-money laundering measures and advocated for educating consumers about the risks inherent in the unregulated crypto sector.Although he acknowledged blockchain’s potential to enhance global payment systems, Shanmugaratnam favored integrating existing traditional payment mechanisms as an alternative to blockchain innovations.Singapore’s new president brings with him a history of skepticism towards cryptocurrency and digital assets. However, with a largely ceremonial role relative to day-to-day governance, he’s not in a position to take direct action that could hold the sector back although he will have the power to initiate corruption investigations upon the advice of the Singaporean cabinet.

Indian cryptocurrency investment platform Mudrex has unveiled plans to provide access to U.S. spot Bitcoin exchange-traded funds (ETFs) for investors within the world’s most populous country. Serving Indian institutional investorsThis initiative, as disclosed by CEO and co-founder Edul Patel in discussion with local media, marks a particularly significant milestone for Indian institutional investors who previously lacked direct access to spot Bitcoin ETFs, which were predominantly available to retail investors through U.S. stock investing firms. In its initial phase, Mudrex intends to list the top four BTC ETFs from prominent entities including BlackRock, Fidelity and Franklin Templeton. While eleven BTC ETF products currently exist in the United States, most commentators agree that there will be a consolidation with the majority unlikely to survive in the long run. Mudrex will ensure compliance by being registered with the Financial Intelligence Unit (FIU) of India. The company already provides clients with access to a diverse selection of over 350 cryptocurrencies and crypto baskets, coupled with the provision of actionable insights to help clients reach investment decisions effectively. Patel outlined the rationale behind the product offering, stating:“Seeing the increasing demand for Bitcoin spot ETFs and user requests on our platform in the past few months, we have decided to launch it for Indian investors.”Photo by rupixen on UnsplashPurchased under Liberalized Remittance SchemeMudrex ensures actual transactions are processed through broker partners in the U.S., while its Indian subsidiary facilitates the spot Bitcoin ETF service. This development unfolds amidst a nuanced regulatory environment in India, where regulatory bodies such as the Reserve Bank of India (RBI) and the Finance Ministry's Intelligence Unit hold varying stances on cryptocurrency. While the RBI remains cautious about crypto, the Finance Ministry's Intelligence Unit has registered numerous Indian crypto service providers and imposed rigorous taxation policies. Patel expanded on the alignment of spot Bitcoin ETFs with the Liberalized Remittance Scheme (LRS), a framework that simplifies overseas investments for Indian investors. The Reserve Bank of India (RBI) prescribes a limit of $250,000 per year for overseas investments by Indians under the LRS. In line with that, Mudrex is facilitating a minimum investment of $5,000 and a maximum of $250,000. Accessing spot Bitcoin ETFs through Mudrex under the LRS framework offers a more tax-efficient avenue compared to domestic crypto exchanges in India. Among Mudrex's clientele, comprising approximately 350 institutions, Patel reveals that around 20 have initiated the process of joining the platform for spot BTC ETF investments. With an anticipated average ticket size of $110,000, this demonstrates a growing appetite among institutional investors for exposure to Bitcoin ETFs facilitated through Mudrex's platform. This move by Mudrex is interesting when contrasted with recent comments made by RBI governor Shaktikanta Das, who suggested that the central bank wasn’t in favor of the offering of such products in India despite the decision by the U.S. authorities to permit spot Bitcoin ETFs. Hong Kong is working towards the approval of such products while hoping to get out in front of the competition by being the first to launch a similar Ethereum-based product. Meanwhile, the London Stock Exchange announced on March 11 that it intends to commence accepting applications for Bitcoin and Ether exchange-traded notes (ETN).

Zodia Custody Launches Crypto Custodian Service in DubaiZodia Custody, a subsidiary of British multinational banking services firm Standard Chartered, has entered the Middle Eastern market, bringing its crypto custody service to Dubai.In a tweet on Thursday, the start-up announced that its parent company Standard Chartered has signed a memorandum of understanding (MoU) with the Dubai International Financial Centre (DIFC) to launch digital asset custody services in Dubai, powered by Zodia Custody.The move will only go ahead once it has been approved by Dubai’s regulator, the Virtual Assets Regulatory Authority (VARA). At the MoU signing ceremony, Standard Chartered CEO Bill Winters stated: “We see digital assets as an important part of the future of financial services and we are committed to investing in the infrastructure and talent necessary to be a leader in this space.”“The UAE [United Arab Emirates] has a well-balanced approach to digital asset adoption and financial regulation, making it an ideal first market for us to launch our digital asset custody proposition,” Winters added.With 54 years in the financial services arena, the UAE is already home to Standard Chartered’s operations in the Middle East and North Africa (MENA) region.SBI joint ventureIts London-based subsidiary has been busy. In addition to this expansion into the MENA region, in February the fledgling company entered the Japanese market. It achieved that by partnering with Japanese financial services conglomerate, SBI Holdings. The Japanese joint venture company is 51% owned by SBI, while Zodia holds the remaining 49% minority stake. At the time, Julian Sawyer, CEO of Zodia Custody, said that “partnering with SBI DAH ensures the joint venture will offer gold-standard crypto asset custody services in Japan.”Capital injectionLast month, SBI Holdings stepped up its association with Zodia Custody by becoming the lead investor in Zodia’s latest funding round. Up until that point, Zodia had been supported largely by Standard Chartered. Northern Trust took a 10% stake with Standard Chartered accounting for the remaining 90% equity stake. Following that most recent funding round, SBI now moves up the rankings to become Zodia’s second largest investor.Zodia was founded in 2020 in tandem with a separately launched trading platform, Zodia Markets. Its objective was to offer a safe, trustworthy platform through which institutional clients could invest in crypto assets. As a UK-based entity, the firm is regulated by the UKs Financial Conduct Authority (FCA).Heightened digital asset developmentAuthorities in Dubai and within the UAE in general have been working hard in recent months with an eye towards making the country, and particularly its Dubai and Abu Dhabi Emirates, a hub for digital asset-related business. Regulators in Dubai, Abu Dhabi, and at a national UAE government level, have been progressing in terms of getting a workable digital assets regulatory framework and licensing regime in place.With the Dubai Fintech Summit having taken place earlier this week, there were further developments still relative to digital asset business in the UAE. On Monday, Coinbase CEO Brian Armstrong was in attendance alongside his executive team. Just like Armstrong, Ripple CEO Brad Garlinghouse was also a keynote speaker at the event. Both complemented the UAE on its regulatory approach to crypto off the back of both of them having been sharply critical of the regulatory approach in the United States. Armstrong indicated that his company is interested in establishing a base in Abu Dhabi while Garlinghouse confirmed that Ripple is opening an office in Dubai.Photo by Aleksandar Pasaric on Pexels