Dubai regulator tightens crypto marketing rules

Maple Finance Secures $5 Million to Fund Asia ExpansionMaple Finance, a crypto capital network focused on institutional business, has recently concluded a funding round that raised $5 million, with a view towards using the funds to finance an expansion into the Asian market.Maple Finance operates as a platform that empowers lending pool delegates and credit professionals to establish their own credit facilities on the blockchain. These facilities cater to different borrowers who can draw from these pools.Notably, Icebreaker Finance initiated a $300 million lending pool on Maple to assist Bitcoin miners in 2022. Maple Finance functions as the infrastructure atop which these lending pools are built, with pool delegates and lenders independently evaluating and verifying their risk.Photo by Monstera on PexelsMaple Direct lendingThe capital infusion was led by Blocktower Capital and Tioga Capital, with participation from supporters including GSR Ventures, Cherry Crypto, Veris Ventures, and Spartan Capital. This funding will not only facilitate Maple Finance’s expansion endeavors but will also fuel the growth of its newly introduced pure-play lending division, Maple Direct.Maple Finance has spotted an opportunity that has opened up due to the collapse of lending giants like Genesis Lending, BlockFi, Voyager, and Celsius in the institutional lending space. In addition to its role as a platform for facilitating third-party pool creation, Maple Direct was launched in June. It offers overcollateralized loans secured by Bitcoin, Ethereum, and staked Ethereum as collateral.Sydney Powell, the firm’s Co-Founder and CEO explained that Maple Direct is designed to offer an over-collateralized lending product transparently on-chain, providing a differentiated approach in the market. Unlike other platforms, borrowed collateral isn’t rehypothecated for yield generation; instead, it is securely held with a qualified custodian. This strategy positions Maple Finance to cater to market demand while minimizing risk.Strategic expansionPowell told TechCrunch: “I think now is the time to do that because all the other competition exited, and so that’s created this opportunity for us to step in and offer a product.” He expanded further on how the company is thinking strategically, relative to the expansion of the services it is now offering: “Other players try to focus on just trying to build the technology, kind of like Uber and Airbnb. What we’ve tried to do is to act as an underwriter so we need to show credit expertise. I think it gives us a little bit more control over the outcome and it’s a little bit closer to Apple in that it’s more vertically integrated.”Pushing into AsiaThe newly raised funds are earmarked for global expansion, with a particular focus on the Asia-Pacific (APAC) region. This is a strategic move, considering that several jurisdictions in APAC, such as Singapore and Hong Kong, have adopted pro-crypto regulations.“In Asia, you have regulatory clarity, or rather, regulatory support, both coming out of Hong Kong and Singapore in terms of new legislation that’s come through, and you already have a very heavy trading focus over there,” Powell stated.Maple’s product development is ongoing. Earlier this month, the company launched a Treasury Bill Pool that provides accredited investors with access to US Treasury Bills with what it claims is a “risk-free rate” of return, given that the pool generates a yield of 4.67%.

Malaysia Ushering in Fifth Digital Asset ExchangeKuala Lumpur-headquartered crypto platform Hata has become the latest entrant in the local digital asset exchange (DAX) business, securing licensing and regulation from the Securities Commission Malaysia (SC).The brainchild of David Low, former Asia Pacific General Manager at Luno, Hata Digital Sdn Bhd, is now the recipient of conditional approval from the SC, enabling it to facilitate cryptocurrency trading once it fulfills the regulator’s stipulated requirements over the next six to nine months. The firm now joins Luno Malaysia, MX Global, Sinegy DAX, and Tokenize Technology to become the fifth regulated DAX to trade within the Southeast Asian country.Photo by Esmonde Yong on UnsplashFirst digital brokerOne interesting aspect of Hata’s approval is that it also marks the first DAX to receive digital broker status from the SC. This unique status allows Hata to display trade orders from other exchanges on its website or mobile application, giving users access to a broader spectrum of trading opportunities.Hata can match its users’ trades with those available on other exchanges or provide them with cryptocurrency prices from these exchanges. However, it is essential that the exchanges Hata collaborates with are licensed by authorities in “competent jurisdictions,” such as the Monetary Authority of Singapore (MAS), and gain approval from the SC.Low shared his vision, stating:“With the goal of challenging the existing norms, we plan to make digital assets investing easier for institutional investors, businesses, and high-net-worth individuals in Malaysia. And we look forward to launching the platform soon.”Luno competitorLow’s departure from Luno adds an intriguing dynamic to Malaysia’s digital asset industry, given his pivotal role in expanding Luno’s presence in Malaysia and Southeast Asia. At the time of his departure, Luno was widely acknowledged to have commanded over 90% of the local cryptocurrency trading market share, with some estimating it as high as 98%.Low is now stepping into the realm of competition with his former colleagues and company, where he had previously invested significant effort and resources to foster growth.Hata boasts two other Co-Founders, Darien Ng, Chief Revenue Officer, and Chong Kwai Kun, Chief Technology Officer, both with extensive expertise in blockchain technology and software development in Malaysia since 2018.Low stated that the “SC’s decision to grant us conditional approval to operate a DAX represents a vote of confidence in us and the digital asset industry. This is a significant milestone for my team and I at Hata, after months of extensive efforts.”One-stop crypto platformHe continued: “Hata wants to enable safe and effortless cryptocurrency access and we look forward to being a one-stop and reliable platform for our customers, with our suite of products and services.”Low emphasized their goal of challenging existing norms, making digital asset investing more accessible to institutional investors, businesses, and high-net-worth individuals in Malaysia.The exchange’s founder also commended the SC’s efforts in expanding the regulated market operator framework to allow DAXs to operate as digital brokers. In addition, Hata has obtained a money broker license from the Labuan Financial Services Authority, reinforcing its efforts to operate as a compliant and secure platform.

The Hong Kong Monetary Authority (HKMA), the Chinese autonomous territory’s central bank, has launched a scheme which subsidizes projects endeavoring to issue tokenized bonds. Grants of up to $321KThe objective behind the initiative, which was announced in a statement published to the HKMA website on Nov. 28, is to nurture moves towards tokenization within Hong Kong’s capital markets. The initiative, titled the Digital Bond Grant Scheme (DBGS), can be accessed by financial services firms for up to two digital bond issuances. The grant may cover up to 50% of what the HKMA describes as “Eligible Expenses” incurred in the process of issuing and establishing the digital bond. A maximum grant level of HK$2.5 million ($321,000) has been established. Digital bond issuers are entitled to the full grant where both basic requirements and additional requirements have been met. A half grant of up to HK$1.25 million ($160,600) has been established for those issuers who have met the basic requirements. The scheme has been opened to applicants from Nov. 28 onwards, with it having been set out to run for an initial period of three years. To fulfill the basic requirements, a bond must be issued in Hong Kong and either be issued on a decentralized ledger technology (DLT) platform, or the project itself must be based in Hong Kong while being involved in the running of a DLT platform.Photo by Fidel Fernando on UnsplashAdditional requirementsThe HKMA has listed four items under additional requirements. These include a need for a digital bond to be issued on a DLT platform run by an entity that is not an associate of the issuer. The bond issuance, whether effected in one instance or in tranches, must account for a value of greater than HK$1 billion ($128.5 million).  The bond must be issued to greater than five investors who are not connected with or associates of the issuer. Finally, the bond must be issued on either the Hong Kong Stock Exchange or a virtual asset trading platform (VATP) licensed and regulated by the Securities and Futures Commission (SFC). Project EvergreenIn 2021, the HKMA launched Project Evergreen, an initiative geared towards exploring how DLT could enhance processes and efficiency within capital markets. On Nov. 28 the HKMA published an update on the project, outlining that since its foundation, tokenization had gained considerable momentum, with $10 billion in tokenized bonds having been issued globally within the last decade. The Hong Kong government carried out two tokenized bond issuances as part of the project. Due to the second issuance being seven times larger than the first one, the HKMA believes that this accounted for institutional investors being attracted to the bond issuance.  In the update, the HKMA outlined that going forward, the plan is to promote wider adoption of what is viable, within the confines of what is possible. The central bank asserted that the DBGS was established on this basis. The update stated: "To fully reap the potential of DLT, we need to keep pushing the boundaries and explore further innovation." In a related development, a report published by the Financial Times on Nov. 28 suggests that the Hong Kong government is considering offering crypto tax breaks to hedge funds and private equity funds.