Gemini receives in-principle MPI license approval in Singapore

Hong Kong licensing success sees SEBA Bank expand APAC crypto presenceSwitzerland-based SEBA Bank AG has taken a significant step in its global expansion strategy by securing a license from Hong Kong’s Securities and Futures Commission (SFC) to manage traditional securities and digital assets through its subsidiary, SEBA Hong Kong.Photo by Ruslan Bardash on UnsplashFirst move into APAC for crypto businessSEBA Hong Kong published a statement on Wednesday to announce the milestone. It marks the crypto-centric bank’s maiden entry into the Asia-Pacific (APAC) region and expands its footprint across three regulated hubs, including Switzerland and Abu Dhabi.The acquisition of the digital asset license from the SFC provides SEBA Bank with the ability to offer regulated services pertaining to digital assets, encompassing both virtual assets and securities. The move is seen as a reflection of SEBA’s confidence in the long-established capital markets and strong appetite for investment and trading in Hong Kong.SEBA Hong Kong’s CEO, Amy Yu, expressed her enthusiasm, stating:“We are tremendously excited by Hong Kong’s deep-rooted capital markets and appetite for investment and trading; to have secured this license from the SFC provides enormous potential for our business, owing to the well-established and defined regulatory framework that is present here.”Opening up OTC derivatives possibilitiesThe license grants SEBA Bank the authority to engage in a wide range of regulated activities related to traditional securities and digital assets within Hong Kong. This includes dealing with and distributing all types of securities, including virtual asset-related products like over-the-counter (OTC) derivatives.What is likely to give SEBA Bank’s licensed services the upper hand is their accessibility to a diverse clientele, including institutional investors, corporate treasuries, funds, family offices and high-net-worth individuals. The aim is to cater to a broad spectrum of clients seeking exposure to the digital asset landscape, from sophisticated institutional investors to individuals with substantial assets.This milestone comes after SEBA’s previous in-principle approval (AIP) for virtual asset trading services, granted in August. The full approval allows SEBA Bank to significantly broaden its product and service offerings in Hong Kong, contributing to the wider adoption of cryptocurrencies and digital assets in the region.Franz Bergmueller, Chief Executive Officer of SEBA Bank, highlighted the significance of this regulatory achievement, not only for the bank but for Hong Kong’s position as a global financial services hub. He stated:“This regulatory clarity not only benefits our business but also supplements Hong Kong’s status as a global financial services hub. The region’s robust legal system provides a solid foundation to conduct crypto-related services, and we look forward to beginning that from today.”The regulatory breakthrough achieved by SEBA Bank in Hong Kong aligns with the broader trend of evolving and expanding regulations in the digital asset space within the region. Hong Kong has been progressively adapting its regulatory landscape to accommodate the growth of digital assets.SEBA Bank’s move also echoes the welcoming environment for crypto firms in Hong Kong. As Standard Chartered-backed Zodia Custody recently announced plans to launch its services in the city, it underscores Hong Kong’s emergence as a prominent player in the APAC region. SEBA's presence in Hong Kong not only strengthens the region’s stature as a global financial services hub but is also suggestive of its interest in fostering the growth of the digital asset industry within the Chinese autonomous territory.

Sui Token Debuts on Korea’s Top Five Crypto ExchangesThe native token of Sui, a layer 1 blockchain platform, has debuted on South Korea’s five leading cryptocurrency exchanges — Upbit, Bithumb, Coinone, Korbit, and Gopax. This marks the first time a token has been listed simultaneously on all five exchanges, according to Korean news agency Newsis.Photo by Sigmund on UnsplashAptos’ successThe decision by these exchanges to list Sui may have been influenced by the success of the APT token, which belongs to Aptos, another scalable layer 1 blockchain platform also developed by former Meta employees. APT was listed on Binance two days after the launch of the Aptos’ mainnet on October 17 last year, and its price skyrocketed to $100 on the first day, a hundred times its listing price. Within a week, the trading volume of APT reached $1.3 billion.Sui’s mainnet launchWith the launch of its mainnet on May 3, Sui is garnering significant interest in the crypto sphere. An official from a notable Korean venture capital firm told Newsis that Sui and Aptos, both developed with the Move programming language, involve many top-tier investors and are highly anticipated by ecosystem participants.

An analysis of data recently published as part of Chainalysis’ Global Cryptocurrency Adoption Index demonstrates that Hong Kong has recorded a year-on-year crypto transaction value growth rate of 85.6%.  On that basis, the territory accounts for the sixth-largest crypto economy in the world. Furthermore, Hong Kong ranks 30th in terms of global crypto adoption. That’s an improvement of 17 places, as it was ranked 47th in 2023. Regulatory framework aiding crypto adoptionAn excerpt from the 2024 Geography of Cryptocurrency Report by Chainalysis was published on September 18. It found that the steps taken in the Chinese autonomous territory in terms of laying down a regulatory framework for digital assets has led to this uptick in transactional activity, due to the increased adoption of digital assets by institutions.  Over the course of the past eighteen months, Hong Kong has launched crypto trading licensing. Earlier this year, exchange-traded funds (ETFs) were given the green light, with the subsequent launch of Bitcoin and Ethereum ETF products.  On the topic of ETF’s, Kevin Cui, CEO of digital asset trading platform OSL said that “as market conditions improve, we are seeing indications of a growing institutional interest that could lead to increased capital inflows in the near future.” Meanwhile, the Chinese autonomous territory is working towards the establishment of regulations that cover the issuance and trading of stablecoins.lil artsy on PexelsHong Kong key to Chinese crypto resurgenceIn terms of crypto adoption, mainland China ranked 11th this year, dropping down one place by comparison with last year. The report notes the complicated history China has had with cryptocurrency in recent years, given that a crypto trading ban remains in place. However, last year’s report pointed to the strong usage of centralized crypto exchanges by mainland China residents, which suggests that the ban has either been ineffective or poorly enforced.  The Chainalysis report speculates that “Hong Kong may finally influence China to re-open its doors to crypto.” This is not the first time that Chainalysis has made such an assertion. In last year’s report, it made a similar claim, suggesting that the development of Hong Kong as a crypto industry hub would lead to a softening in the stance of mainland China towards crypto. This year’s report suggests that mainland China residents have turned to over-the-counter (OTC) platforms in order to access crypto as a means towards preserving their wealth. The report quoted Ben Charoenwang, associate professor of finance at the INSEAD Asia Campus as stating: “Nowadays, if you want to move money out of China through traditional unofficial means like using mules, fees can be as high as 25 to 30 percent. The increasing use of OTC crypto in China suggests that people are looking for faster options to move money.” The report finds that five of the top 50 grassroots adopters of crypto, South Korea, China, Japan, Hong Kong and Taiwan, are located in East Asia. South Korea leads the region in terms of the most crypto value transacted metric. Chainalysis suggests that South Korea’s strong interest in altcoins signals that it will remain a leader in the region from a cryptocurrency innovation perspective.