Ben Strack

It appears ever more likely that fund issuers will launch crypto ETFs in Hong Kong very soon. This move could catalyze acceptance of such funds elsewhere, with some speculating that other regulators in Asia could be next to follow suit.



In the US, the Securities and Exchange Commission had held out on approving spot bitcoin ETFs for years, restricting investors from engaging with cryptocurrencies through regulated financial avenues. This barrier prevented the broader financial adoption and accessibility of blockchain assets.



That all changed in January when the SEC <a href="https://blockworks.co/news/sec-approves-bitcoin-etf">approved 10 spot bitcoin ETFs for trading</a> on US exchanges. This approval not only marked a significant shift in policy but also led to approximately $12.5 billion in net inflows to these funds, demonstrating a robust market appetite.



Fast forward just weeks after the US bitcoin ETF approvals, to when the <a href="https://blockworks.co/news/london-stock-exchange-crypto-etn-proposals">United Kingdom’s Financial Conduct Authority said it would support</a> “recognized investment exchanges” listing physically backed bitcoin and ether exchange traded notes (ETNs) for professional investors.



The London Stock Exchange indicated that such listings <a href="https://blockworks.co/news/london-stock-exchange-crypto-exchange-traded-notes">could be expected by the end of May</a>.



Now in <a href="https://blockworks.co/tag/hong-kong">Hong Kong</a>, fund issuers have indicated in recent days that they are looking to launch spot bitcoin and ether funds soon.



Read more: <a href="https://blockworks.co/news/hong-kong-reportedly-looks-to-approve-crypto-etfs">Hong Kong could green light spot bitcoin and ether ETFs next week: Report</a>



HashKey Capital and Bosera International noted in a Monday <a href="https://group.hashkey.com/en/newsroom/bosera-hashkey-co-launch-spot-etfs">post</a> they had gained approval from Hong Kong’s Securities and Futures Commission to offer crypto-related asset management services.&nbsp;



A HashKey spokesperson declined to comment further.



A representative for Hong kong-based China Asset Management said the firm is planning to launch a spot bitcoin ETF and a spot ether ETF.&nbsp;&nbsp;



Still, issuers do not appear to have official approval to launch such funds. An SFC spokesperson did not immediately return a request for comment.&nbsp;



“Regarding the approval progress, we are currently not in a position to provide comment, as it is the decision of SFC,” the China Asset Management spokesperson told Blockworks in an email.&nbsp;



<a href="https://blockworks.co/news/uk-crypto-regulation-panel-das">Developments in the UK</a> and Hong Kong “reiterate the global ripple effect of the spot ETF approvals in the US,” according to Tim Bevan, CEO at crypto ETP issuer ETC Group.



Michael Silberberg, head of investor relations at Alt Tab Capital, added in a statement that the Hong Kong move was likely to attract more institutional investors. He believes that this would result in more liquidity and better price discovery.



“As other jurisdictions observe Hong Kong’s approach, it will likely encourage similar regulatory frameworks worldwide, further legitimizing bitcoin as an investable asset class and driving more growth in BTC and across the market,” Silberberg said.



<h2 class="wp-block-heading">Who’s next to approve such products?</h2>



While the US became the latest to approve spot <a href="https://blockworks.co/tag/bitcoin-etf">bitcoin ETFs</a>, other countries had beat them to it.



Canadian fund group Purpose Investments launched its spot bitcoin ETF on the Toronto Stock Exchange in February 2021 — the world’s first bitcoin ETF backed by physically settled bitcoin.



Read more: <a href="https://blockworks.co/news/bitcoin-etf-fee-level">Purpose Investments, Grayscale defend their higher fees as outflows continue</a>



QR Asset Management <a href="https://blockworks.co/brazil-bitcoin-etf-follows-similar-launches-in-canada">launched Latin America’s first spot bitcoin ETF</a> in Brazil in June 2021.



<a href="https://blockworks.co/news/us-europe-spot-bitcoin-etf">Europe’s first spot bitcoin ETF</a> went live on Euronext Amsterdam last year, though crypto ETNs — debt instruments typically collateralized by the underlying exposure — had existed there for years prior. &nbsp;&nbsp;



Karim Saber, a research associate at crypto ETP issuer 21Shares, said Asia appears poised to take the lead in approving new spot bitcoin ETFs given higher-than-average crypto adoption rates in countries like South Korea, Japan and Singapore.



Read more: <a href="https://blockworks.co/news/apac-web3-2023">The future of Web3 lies in the Asia-Pacific</a>



“The victory of the bitcoin-friendly South Korean opposition party in April&#8217;s election enhances the likelihood of the country approving BTC spot ETFs in the near future,” he told Blockworks.&nbsp;



The winning party had pledged to prioritize offering investors access to such products, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-04-05/south-korean-party-pledges-access-to-us-bitcoin-etfs-in-race-for-votes">reported</a> earlier this month.&nbsp;



While South Korea’s recent political shift could lead to regulators approving a bitcoin ETF as soon as this year, Saber noted, Japan and Singapore might not be far behind.&nbsp;



The Government Pension Investment Fund (GPIF) of Japan said last month it was <a href="https://blockworks.co/news/japan-pension-fund-considers-bitcoin">considering investing in “illiquidity assets” like bitcoin</a>.



That came about a month after the Japanese government advanced a proposal that would allow investment limited partnerships to acquire and hold crypto assets.



Read more: <a href="https://blockworks.co/news/japan-crypto-policy-step-forward">Japan’s crypto policy takes a positive step forward</a>



A March <a href="https://www.independentreserve.com/blog/wp-content/uploads/2024/03/Independent-Reserve-Cryptocurrency-Index-Singapore-2024.pdf">survey</a> of Singaporeans by Independent Reserve found that one-third of respondents would consider investing in an overseas spot bitcoin ETF.



While the Monetary Authority of Singapore has expressed <a href="https://www.zaobao.com.sg/finance/singapore/story20240117-1462706">concerns</a> about retail access to spot ETFs, crypto adoption is evolving in the country.&nbsp;



Singapore app Grab, for example, allowed users to start making payments in BTC, ETH and stablecoins last month. The move highlights “the growing integration of cryptocurrencies into mainstream commerce,” Saber said.



“Therefore, we anticipate Singapore and Japan to increasingly pursue regulatory approval following South Korea,” he added. “The approval in Hong Kong could catalyze discussions this year as Asian countries vie for prominence as the next financial center for innovation.”



Bevan said he expects Japan and South Korea could approve such products in the next six to 12 months — noting that while timelines are hard to predict, “they are all playing catch-up with the US.”



<h2 class="wp-block-heading">Progress in the UK and Australia</h2>



The <a href="https://blockworks.co/tag/fca">FCA</a>’s change of stance related to United Kingdom-listed crypto ETNs currently applies to products accessible only to professional investors.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;



But the regulator’s cautious “phased approach” is likely a step toward retail access once it assesses the products’ impact with that “more informed participant base,” Mandy Chiu, head of financial product development at 21.co, previously told Blockworks.



Read more: <a href="https://blockworks.co/news/bitcoin-etfs-in-uk">After US bitcoin ETFs, the UK fights for retail to have the same freedom</a>



Over in Australia, additional spot bitcoin ETFs could soon be available as well.



The Global X 21Shares Bitcoin ETF (EBTC) launched on Cboe Australia in May 2022. The fund provides holders an interest in bitcoin held in cold storage by Coinbase.



Asset manager Monochrome last year <a href="https://blockworks.co/news/australian-spot-bitcoin-etf">applied for Australia’s first fully-licensed spot bitcoin ETF</a> under new regulatory guidelines. Monochrome CEO Jeff Yew previously told Blockworks that the proposed fund would be uniquely authorized under the country’s “crypto asset” licensing category, which allows the fund to hold bitcoin directly on the fund level.&nbsp;



It is unclear whether this distinction will attract investors to such a fund. The Global X fund has $93 million in assets under management after about two months on the market — a far cry from several of the much-younger US spot bitcoin ETFs.&nbsp;



“Monochrome expects to receive a positive response for the Monochrome Bitcoin ETF (IBTC) within a matter of weeks, not months,” Yew said.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Asia

After crypto ETF movement in Hong Kong, other Asia regulators could act 

Bessie Liu

Despite the market downturn, Web3 gaming has been receiving ongoing interest from investors in the blockchain technology space.&nbsp;



According to a <a href="https://dappradar.com/blog/297m-investment-surge-whats-ahead-for-web3-gaming-metaverse">report</a> by DappRadar, of the $297 million invested, the majority of these funds are being funneled into gaming infrastructure. 



In fact, <a href="https://blockworks.co/tag/gaming">blockchain gaming</a> itself made up roughly 41% of all on-chain decentralized app (dapp) activity in July, DappRadar <a href="https://dappradar.com/blog/297m-investment-surge-whats-ahead-for-web3-gaming-metaverse">notes</a>. 



Read more:<a href="https://blockworks.co/news/blockchain-gaming-300m-funding"> Blockchain gaming sees $300M summer funding boost</a>



In an interview with Blockworks, Framework Ventures co-founder Vance Spencer noted that gaming has been a particularly large narrative in <a href="https://blockworks.co/tag/asia">Asia</a>.



“The US has more NFT, culture and DeFi – Asia is the real gaming end market,” Spencer said.&nbsp;



Gaming is unique because there are no rules preventing people from making a fun crypto game, Spencer said.



This sentiment is shared by co-founder Michael Anderson, who notes that crypto games need just a few more iterations before seeing mass adoption.



“Imagine a world where you have two games. They have the exact same experience, but one of them has ownership. Which one are you going to play?” Anderson said.&nbsp;



<h2 class="wp-block-heading">How do we use crypto levers to make gaming more exciting?</h2>



Scott Sunarto, founder and CEO of Argus Labs, noted at a panel at <a href="https://blockworks.co/tag/permissionless">Permissionless II</a> that one of the biggest challenges facing the gaming industry is utilizing crypto levers to make gaming more exciting.



“A lot of game studios are building games from Web2 and slapping an NFT on top of it,” Sunarto said. “I’m really passionate about finding interesting ways to use crypto levers to make Web3 gaming much more appealing beyond just having collectibles.”



Sunarto notes that gaming providers are likely to want to own their own distribution, so publishers are likely to move to their own custom chain, where they have more control over granularities such as gas subsidies and customizations on the chain level.



“This can help build better user experience or even provide features that other game publishers are not able to provide,” Sunarto said.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

‘Much more appealing’ than just collectibles: Web3 gaming’s potential

Sebastian Sinclair

Several exchanges popular throughout Asia have updated their terms of service, tightening know-your-customer (KYC) protocols ahead of upcoming regulatory changes across the region.



Seychelles-based Bitget said Sunday it was updating its KYC measures in a bid to comply with requirements, including the city-state’s recently updated guidelines for banks.



Directives from the Monetary Authority of Singapore (MAS) — both a central bank and regulator — are advising financial institutions to put in place appropriate <a href="https://blockworks.co/news/on-chain-monitoring-risk-management">risk management procedures</a>.&nbsp;



It comes as MAS shut down Digital Payment Token (DPT) service providers from “facilitating lending and staking of DPT tokens by their retail customers,” <a href="https://blockworks.co/news/singapore-thailand-ban-crypto-staking">Blockworks previously reported</a>.



As such, Bitget, alongside KuCoin and OKX — considered to be some of the more popular platforms for Asia-based crypto traders, including Singapore — is advising users to update their KYC verification ahead of next month.



“Starting from Oct. 1, users who have not completed level 1 KYC verification will only be able to withdraw, cancel orders, redeem subscriptions and close positions, being restricted from creating new trading orders,” the exchange said.



KuCoin and OKX, both headquartered in Seychelles following China’s crackdown on digital assets in 2017, have also recently updated their KYC policies. Bitget currently ranks 16th among exchanges ranked by trading volume over a 24-hour period, Coingecko data <a href="https://www.coingecko.com/en/exchanges">shows</a>. OKX and KuCoin rank 7th and 22nd respectively.



While KuCoin had implemented KYC on its platform back in 2018, the exchange said it has strengthened its identity verification procedures — with users needing to upload documents and complete face checks. The changes are expected to take effect at the <a href="https://www.kucoin.com/support/360015102254">end of this month</a>.



OKX, which also updated its terms last week, said users would need to submit a selfie using a government-issued ID — to be stored by the exchange — in order to use all its services.



While Singapore represents the clearest jurisdiction digital asset service providers are shifting focus towards, it isn’t the only one.&nbsp;



Earlier this year, Japan <a href="https://blockworks.co/news/japan-crypto-anti-money-laundering-rules">sought to tighten anti-money laundering measures</a> designed to better track crypto transactions, answering calls from other countries.



Also, starting next year, South Korea&#8217;s <a href="https://blockworks.co/news/financial-statements-must-include-crypto-south-korea-regulator">Financial Services Commission</a> will require companies to include details about their crypto holdings, anticipated value, and related business models in their financial statements to align crypto accounting with conventional financial reporting.



All measures point towards a tightening regulatory environment across the region, with crypto service providers adhering to, or seemingly positioning for, changes long-overlooked by financial officials.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Regulatory landscape across Asia prompts exchanges to enhance KYC measures

James Cirrone

Gemini is expanding its Singapore operations, perhaps one indicator that the Asia-Pacific region has continued to demonstrate promise for crypto companies.



Gemini representatives this week said the company plans to increase its headcount in Singapore to more than 100 employees over the next 12 months. The outpost, Gemini <a href="https://www.gemini.com/blog/gemini-announces-expansion-plans-in-apac">said</a>, will form the foundation for “larger APAC operations.”



“We believe that APAC will be a great driver of the next wave of growth for crypto and Gemini,” Gemini wrote.&nbsp;



Gemini hired Pravijt Tiwana as its APAC CEO in April. Tiwana first joined Gemini as the company’s chief technology officer, jumping ship from Amazon Web Services (AWS).&nbsp;



The move, paired with its new engineering center in Gurgaon, India, demonstrates that <a href="https://blockworks.co/news/gemini-apac-crypto-exchange">Gemini is serious about expanding into Asia</a> and ramping up its international business.&nbsp;



Singapore crypto efforts more broadly have continued apace over the past couple of months.&nbsp;



Ripple on Thursday received provisional regulatory approval <a href="https://blockworks.co/news/ripple-payments-singapore">to offer crypto products and services in the city state</a>. Conversely, DCG-owned <a href="https://blockworks.co/news/luno-singapore-dcg-crypto-exchange">Luno wound down its services in Singapore</a> in mid-April.



<h2 class="wp-block-heading">Starknet Foundation appoints first CEO</h2>



Former Meta executive Diego Oliva will head up the Starknet Foundation as its chief executive.&nbsp;



Oliva has been tasked with fostering growth at Starknet, as well as overseeing its decentralization plans.&nbsp;



Starknet is a permissionless validity layer-2 rollup,and uses STARK proofs to power the network.



Oliva, who was born in Mexico, in the statement pointed to how Mexican migrants sent nearly $60 billion in remittances back home in 2022. He said blockchain technology can cut down on “unnecessarily high” wire transfer fees.&nbsp;



“Scalable and user-friendly blockchain solutions, like those being built on Starknet, can be transformative for such people,” Oliva said.&nbsp;



Oliva was Facebook&#8217;s regional director for Europe, the Middle East and Africa from 2009 to 2015.



Starkware, Starknet’s parent company, <a href="https://blockworks.co/news/ethereum-layer-2-developer-starkware-valued-at-8b-following-100m-raise">raised $100 million last May</a> and is now valued at $8 billion.&nbsp;



<h2 class="wp-block-heading">Other notable hires</h2>



<ul class="wp-block-list">
<li>Joseph Tsai, a co-founder of Alibaba and <a href="https://www.cnbc.com/2023/01/10/ftx-investors-included-robert-kraft-paul-tudor-jones-new-filings.html">an FTX investor</a>, is taking over as chair of the Chinese e-commerce giant. Tsai’s family office Blue Pool Capital invested in the doomed FTX.</li>



<li>V Pappas is stepping down as chief operating officer of TikTok, <a href="https://twitter.com/v_ness/status/1671930315781328896">citing</a> a desire to focus on their “entrepreneurial passions” and name-dropping “blockchain” as an area with “incredible innovation.”</li>
</ul>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Crypto hiring: Gemini eyeing Singapore as springboard for APAC plans

Blockchain messaging protocol LayerZero has secured a seven-figure fundraise backed by the likes of a16z, OKX Ventures and Sequoia Capital. 



LayerZero’s latest Series B funding round, the company said on Tuesday, resulted in a $120 million haul that included additional participation from BOND, Christie’s and Circle Ventures, among others.



The fresh fundraise follows a $135 million round that the company had secured the year prior. The company is now valued at around $3 billion on its latest capital inflows. LayerZero raised a $6.3 million Series A in 2021, <a href="https://blockworks.co/news/layerzero-adds-6-3m-in-series-a-funding-led-by-binance-labs-and-multicoin-capital">Blockworks previously reported</a>.



The cross-chain messaging protocol enables decentralized applications (dapps) deployed across multiple blockchains and allows projects to interact without the need for an intermediary — such as a <a href="https://blockworks.co/tag/bridges">cross-chain bridge</a>.



The main idea behind the raise, according to Bryan Pellegrino, the co-founder and CEO of LayerZero Labs, was to streamline the team’s insights and pipeline into the Asia-Pacific region’s (APAC) gaming sector.&nbsp;



“From inception, [LayerZero] has been very DeFi focused in general…but we’ve also been getting a lot of inbounds from gaming and NFTs,” Pellegrino said. “We’ve been keeping tabs on where the news games are coming from, and a disproportionate amount are coming from the APAC region.”



Specifically, according to Pellegrino, there have been strong developer communities bubbling in major markets across Korea, Japan and Southeast Asia.&nbsp;



“For us, we just want to make sure that we’re working super closely with the studios, we want to make sure that the OFT standards are baked in by default, and we’re going to make sure localization in all of the markets,” he said.



<h2 class="wp-block-heading">Cross-chain messaging hits gaming</h2>



LayerZero has set its sights on the gaming market, as do many of its latest investors.



Many games that run on Web3 rails today run on application-specific blockchains, but in-game items are still bought and sold on Ethereum, Pellegrino said, because “that’s where all the liquidity is.”



Games, in other words, can be based on your own blockchain. But when it comes to selling digital assets players win in the process of playing, cross-blockchain messaging comes into play.&nbsp;



“There’s a game now where you’re playing a game on this side chain, and once you kill the boss, it sends [messages] that mutates the metadata on your NFT that lives on Ethereum, and it automatically updates your Twitter profile picture,” Pellegrino said. “So, your NFTs could be evolving in real-time.”&nbsp;



Pellegrino says the funding fundraise will be used to expand the LayerZero team and grow the company’s overall market presence and standing.



Later down the road, after the protocol matures, LayerZero could consider governance token airdrops — though it’s not expected to happen any time soon.



“Not right now,” Pellegrino said. “This raise is strictly for the expansion of the company.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

LayerZero Locks Down $120M in Fresh Funding for APAC Gaming Push

Crypto neobank Wirex is partnering with global payments giant Visa to expand its influence in the Asia-Pacific market.



This latest partnership enables Wirex to issue crypto-enabled debit cards to over 40 different countries across the Asia-Pacific (APAC) region, the UK, Europe and the US.



The London-based neobank has over 5 million customers — most of them based in the UK.&nbsp;



Although it previously <a href="https://blockworks.co/news/uk-tougher-on-crypto-companies">withdrew its registration</a> from the UK’s Financial Conduct Authority (FCA), all crypto activity the company practices in the UK is facilitated through a license it obtained through its subsidiary, Wirex Digital — which is registered in Croatia. 



Over the past year, Wirex has been actively making moves in the APAC market. Most recently, it became a finalist for the Global Fintech Award at the Singapore Fintech Festival in November 2022.&nbsp;



“We&#8217;re excited that Wirex is expanding their focus on Asia Pacific, making it easy and seamless for people to spend their crypto balance at the millions of merchants that accept Visa in the region,&#8221; Matt Wood, Visa’s head of digital partnerships for the Asia-Pacific region, said in a statement.



&#8220;Visa wants to bring more payment options to consumers by connecting digital currencies with our network of banks and merchants,” he added.



This will not be the first time Wirex and Visa will be partnering together. The companies previously worked on developing crypto-enabled Visa debit cards together in the US.



&#8220;It&#8217;s great to strengthen our partnership with Visa, who have played an important role in allowing us to bridge the gap between the traditional and digital economies,” Svyatoslav Garal, regional managing director of Wirex APAC, said in a statement.&nbsp;



“Visa&#8217;s proven commitment to safety, security and innovation will help us to continue developing a next-generation app and card,&#8221; Garal said.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Asia Pacific Now Has a New Crypto-enabled Debit Card

After securing a total of $70 million in ecosystem funding in just eight months since its inception, Cosmos based DeFi Layer 1 blockchain — Sei — is looking to expand into Asia in the year ahead.



When the network first launched, the projects which joined Sei were mostly ones who were bullish on the core technology, co-founder Jayendra Jog told Blockworks. But, since the Terra implosion and the collapse of FTX, Sei began seeing an influx of teams coming from different ecosystems.



Now, with over 100 projects developing on the blockchain, Jog wants to expand the presence of his network into Asian markets, citing the region’s technological advancements and high rate of crypto usage, as well as the presence of exceptional developers.



“Crypto is already very big in Asian markets overall — South Korea, for example, has a ridiculously high rate of people using crypto in general…there are also exceptional developers, a lot of them are building stuff in crypto more broadly, we want to help get the word out about Sei, so they can build the best possible products for their users on top of this infrastructure,” he said.



The company has taken several steps towards this goal, including partnering with Graviton, a Web3 accelerator based in India, and launching a <a href="https://twitter.com/SeiNetwork/status/1611453192838979600" target="_blank" rel="noreferrer noopener">world tour</a> for the crypto community to meet in person.



<h3 class="wp-block-heading">So, What is Sei?</h3>



Sei is the brainchild of ex-Goldman banker Jeff Feng and Jog, a former Robinhood software engineer who has been involved in the cryptocurrency industry since 2017.



Jog said that he was motivated to create Sei after observing poor communication and lack of transparency at Robinhood following the GameStop stock trading frenzy in 2021.



“This is what we wanted to build a decentralized Robinhood originally, but are no longer doing that,” Jog said. “Through the process of building an exchange, we realized that the infrastructure to build exchanges is lacking, which is the problem Sei is solving.”



As Sei is not an exchange, and only an L-1 chain, it does not compete directly with projects such as Osmosis, Crescent and other dexes on the Cosmos.&nbsp;



“Sei is only building the infrastructure, and no exchange on top. The other ecosystems are building both,” Jog said. “From a technical side, Sei has a native order matching engine built into the chain itself, which helps prevent front running through frequent batch auctions, which doesn&#8217;t happen on any of those other chains.”



As Sei is taking an ecosystem building approach, teams are encouraged to build on the blockchain layer. Jog said the network is unlikely to run into CLOB-related issues as its infrastructure has been custom built for exchange.&nbsp;



“We have an in built scalable native order matching engine, which makes it very cheap for market makers to provide liquidity, allows them to batch orders (so only submit 1 transaction to update orders on multiple markets), and the fastest time to finality out there (600 ms in devnet) which leads to a better trading experience,” he said.



The Sei network is built using the Cosmos software development kit (SDK) and Tendermint core. Its testnet which was launched in May last year supports inter-blockchain communication (IBC) and has already connected with a dozen chains in Cosmos.



But as with many Cosmos-based chains, Sei is a fully sovereign layer-1 network which makes use of its own validator set, Jog said. Although it does not plan to make use of <a href="https://blockworks.co/news/cosmos-is-forging-a-new-atom-starting-with-interchain-security">the first iteration of interchain security (ICS)</a>, Jog notes that it could make use of a subsequent version ICS and mesh security.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Sei Network, With $70M in Ecosystem Funding, Looks East

<div id="highlights-block_633d401c55aef" class="highlights">
 <ul>
 <li>Anchorage Digital is pushing deeper into Asia via partnerships with five major institutions</li>
 <li>The firm has avoided the worst effects of the recent market downturn</li>
 </ul>
 
</div>



Crypto lending platform Anchorage Digital said Tuesday it has decided to plow further into Asia via a partnership with five major domestic institutions.



Antalpha, Bitkub, Dream Trade, FBG Capital, GMO-Z.com Trust Company and IOSG Ventures have lined up to take advantage of Anchorage’s regulated offerings which include integrated financial services and infrastructure solutions. 



The lender is also home to the world’s first federally-chartered digital asset bank in the US and boasts Paradigm’s chief legal officer, Katie Biber, and Andreessen Horowitz general partner Chris Dixon as board members.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“We appreciate Anchorage’s attention to regulatory compliance and vetting of the digital assets they support,” Antalpha’s Chief Investment Officer Will Chiu said in a statement.</blockquote>



With a foothold already firmly established in Singapore, Anchorage is hoping to tap into the lucrative Asian market for digital assets. The platform also hosts business hubs in the US and Portugal.



Central and Southern Asia, as well as Oceania, ranked as the third-largest crypto markets this year, according to a recent study by blockchain analytics firm <a href="https://blog.chainalysis.com/reports/central-southern-asia-oceania-cryptocurrency-geography-report-2022-preview/" target="_blank" rel="noreferrer noopener">Chainalysis</a>. The region is also home to seven of the top 20 countries in the firm’s yearly index.



Anchorage’s relationship management team based within the region also provides round-the-clock client operation support while touting a 20-minute time to transact, a feat Anchorage co-founder Diogo Mónica said is unmatched in the market.



Because of its regulatory stature and established presence within the industry, firms have turned to the lender at a time when uncertainty has racked many other players.



The downfall of lending peers <a href="https://cms.blockworks.co/tag/celsius/" target="_blank" rel="noreferrer noopener">Celsius</a> and <a href="https://cms.blockworks.co/tag/voyager/" target="_blank" rel="noreferrer noopener">Voyager Digital</a> has all but shattered confidence for those larger players seeking to store digital assets via a third-party platform.



Anchorage Digital has remained steadfast. The firm told Blockworks in July it had managed to navigate the credit crunch and contagion that so affected others because it was “<a href="https://cms.blockworks.co/crypto-lenders-in-turmoil-as-markets-reel-from-unsafe-risk-management/" target="_blank" rel="noreferrer noopener">properly attuned</a>” to inherent market risks.



Whether that plays out well in the future remains to be seen, but at least, for now, institutions remain confident in Anchorage’s ability to deliver.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Anchorage

Anchorage Adds Asian Institutional Partnerships

Shalini Nagarajan

<div id="highlights-block_629f11fe2f9e6" class="highlights">
 <ul>
 <li>52% of affluent Asians held crypto in Q1 2022, but 67% of wealth managers have no plans to offer related services, an Accenture survey found</li>
 <li>Investors in Indonesia and Thailand had the largest percentage of digital asset allocation compared to peers</li>
 </ul>
 
</div>



As investors grapple with seismic economic shifts such as soaring inflation and rising cost of living, more are turning to investments aiming to insulate their wealth. According to new research <a href="https://newsroom.accenture.com/news/providing-advisory-services-is-increasingly-critical-for-wealth-management-firms-looking-to-seize-growth-opportunities-in-asia-accenture-report-finds.htm" target="_blank" rel="noreferrer noopener">by Accenture</a>, 52% of well-to-do Asian investors held digital assets — including cryptocurrencies, tokenized assets and crypto funds — in the first quarter of 2022.



The study found digital assets make up 7% of these investors’ portfolios, making it the fifth-largest asset class in Asia. That means it receives a greater share of investments than foreign currencies, commodities or collectibles in the region.



Equities, fixed income, cash and real estate have a more hefty weighting compared to digital assets in their portfolios, the <a href="https://www.accenture.com/us-en/insights/capital-markets/wm-future-asia-digital-assets-unclaimed-territory" target="_blank" rel="noreferrer noopener">research</a> showed.



A further 21% are expected to enter the asset class by the end of 2022, suggesting that as much as 73% of affluent Asian investors would hold digital assets by then.&nbsp;


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="660" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/06/2022-06-07-Accenture-survey-1024x660.png" alt="" class="wp-image-22522" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/06/2022-06-07-Accenture-survey-1024x660.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/06/2022-06-07-Accenture-survey-1024x660.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/06/2022-06-07-Accenture-survey-1024x660.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/06/2022-06-07-Accenture-survey-1024x660.png?w=399 399w, https://blockworks-co.imgix.net/wp-content/uploads/2022/06/2022-06-07-Accenture-survey-1024x660.png?w=405 405w, https://blockworks-co.imgix.net/wp-content/uploads/2022/06/2022-06-07-Accenture-survey-1024x660.png?w=340 340w, https://blockworks-co.imgix.net/wp-content/uploads/2022/06/2022-06-07-Accenture-survey-1024x660.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/06/2022-06-07-Accenture-survey-1024x660.png?w=50 50w, https://blockworks-co.imgix.net/wp-content/uploads/2022/06/2022-06-07-Accenture-survey-1024x660.png?w=1305 1305w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Asia Affluent Investor Survey, Q1 2022; Source: <a href="https://www.accenture.com/_acnmedia/Accenture/Conversion-Assets/Secure/pdf-no-index-6/Accenture-Wealth-Management-Asia-Digital-Assets-Unclaimed-Territory" target="_blank" rel="noreferrer noopener">Accenture</a></figcaption></figure></div>


Accenture said about 3,200 consumers responded to the survey, having investable assets ranging from at least $100,000 to over $5 million. They were from mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore and Thailand. Investors in Indonesia and Thailand had the largest allocation to digital assets compared to their peers as of the first quarter of 2022.



Although the key statistic suggests a large chunk of Asian investors want services related to digital assets, the study found that 67% of wealth management firms aren’t planning to dive into it just yet.



<h3 class="wp-block-heading">Wealth managers remain cautious</h3>



Hesitancy due to unclear regulation is among the factors holding back wealth managers. They prefer to either maintain a wait-and-see approach, not fully believing in the potential of the asset class, or they anticipate complexities due to varying regulatory and operating models. 



“We would need to be able to provide an informed view on key crypto coins, which requires specialized research capabilities,” said Sacha Walker, head of strategy and business operations for the Asia-Pacific region at Julius Baer. 



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“In addition, we are currently exploring a compliant offering for suitable clients. This entails educating and training both relationship managers and clients on the risks, suitability and mechanics of digital assets.”</blockquote>



A downside to wealth management firms not offering digital asset services is it forces clients to seek advisory information online, which could provide far less reliable, according to Accenture.



The firm estimates that digital assets are a $54 billion market opportunity in Asia, of which $40 billion stem from transaction fees. The rest is split between advisory and custody fees.



A similar <a href="https://cms.blockworks.co/gemini-report-crypto-reached-tipping-point-in-2021/" target="_blank" rel="noreferrer noopener">survey</a> conducted by Gemini earlier this year shows about 40% of crypto owners around the world first bought digital assets in 2021. It found crypto ownership was the highest in Brazil and Indonesia.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Accenture

Among Affluent Asian Investors, 52% Hold Crypto, Survey Finds

Sam Reynolds

<div id="highlights-block_61314683a131e" class="highlights">
 <ul>
 <li>Singapore’s monetary authorities have placed the Binance mothership on an investor alert list warning consumers that the entity is not registered in the city state </li>
 <li>This is an entirely different entity from Binance.sg, run by a Singapore registered company, that has an exemption to operate from the payments </li>
 </ul>
 
</div>



One of Binance’s many named subsidiaries has found itself in the crosshairs of Singapore’s monetary authority ⁠— potentially<a href="https://cms.blockworks.co/binance-continues-to-plant-seeds-for-singapore-move/"> threatening the exchange’s move to the city</a>.&nbsp;



During the Thursday business day in Asia, the <a href="https://www.mas.gov.sg/investor-alert-list" target="_blank" rel="noreferrer noopener">Monetary Authority of Singapore</a> has said that Binance may be in breach of local laws surrounding payments, and placed the exchange’s Binance.com entity on a watch list. 



The operator of Binance.com may be in breach of the Payment Services Act for carrying on the business of providing payment services to, and soliciting such business from Singapore residents without an appropriate license,” the authority said in a release.&nbsp;



But confusingly, the entity targeted isn’t Binance-Singapore. Binance, which insists on being everywhere but calling nowhere home, has dozens of subsidiaries around the world on markets where it operates a localized version. These versions aren’t as complete as the Binance mothership, but try and conform to local laws and regulations so they have access to local payment rails. Recently, as an example,<a href="https://cms.blockworks.co/uk-fca-binance-ban-not-prohibiting-british-traders/" target="_blank" rel="noreferrer noopener"> regulators in the UK</a> have gone after Binance’s UK branch and the Thai SEC has <a href="https://www.bangkokpost.com/business/2142619/sec-files-criminal-charge-against-binance" target="_blank" rel="noreferrer noopener">filed a criminal complaint</a> against Binance Thailand.  



Binance.sg, is run by Binance Asia Services Pte Ltd, one of the exchange’s <a href="https://www.tis.bizfile.gov.sg/ngbtisinternet/faces/oracle/webcenter/portalapp/pages/TransactionMain.jspx?selectedETransId=dirSearch" target="_blank" rel="noreferrer noopener">many registered companies </a>in Singapore. Binance Asia Services <a href="https://www.mas.gov.sg/regulation/payments/entities-that-have-notified-mas-pursuant-to-the-ps-esp-r" target="_blank" rel="noreferrer noopener">currently has an exemption</a> from Singapore’s Monetary Authority from having a licence under the country’s Payment Services Act. But Binance.sg only has a fraction of the available tokens to trade that the Binance mothership has, with only bitcoin, ether, and BNB listed. 



<a href="https://twitter.com/cz_binance/status/1423554353974022154?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1423554353974022154%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fcryptobriefing.com%2Fbinance-pivoting-to-proactive-compliance-ceo-zhao%2F" target="_blank" rel="noreferrer noopener">Earlier in August</a>, Binance CEO Changpeng Zhao tweeted that the exchange was pivoting from “reactive compliance to proactive compliance.”

Singapore’s Monetary Authority Places Binance Mothership on Investor Alert List

<div id="highlights-block_611d845b65c3c" class="highlights">
 <ul>
 <li>Bitcoin on the corporate balance sheet has become a popular trend in the last year for publicly listed companies, but Thailand’s SEC is casting a wary regulatory eye on the practice</li>
 <li>Thailand continues to be a regional hotspot for crypto adoption, with hundreds of thousands of active users according to reports from its SEC</li>
 </ul>
 
</div>



Companies looking to put bitcoin on their balance sheet in Thailand, one of Asia’s up-and-coming crypto hubs, might be getting a call from the country’s Securities and Exchange Commission.&nbsp;



Thailand’s SEC has been a keen regulator for the country’s burgeoning digital asset market, recently <a href="https://cms.blockworks.co/thailand-bans-nfts-meme-tokens-from-regulated-exchanges/" target="_blank" rel="noreferrer noopener">banning NFTs and meme tokens</a> for their lack of ‘substance’ as Thai’s begin investing in crypto by the hundreds of thousands. As the country’s digital asset market matures, an emerging trend will be for publicly listed companies to put bitcoin on their balance sheets — a trend that <a href="https://news.bitcoin.com/nasdaq-microstrategy-bitcoin-425-million/" target="_blank" rel="noreferrer noopener">MicroStrategy kicked off in September 2020</a> with its first bitcoin purchase. Now, publicly-listed companies, mainly in the US, Canada, and Europe, <a href="https://bitcointreasuries.net/" target="_blank" rel="noreferrer noopener">own around $75 billion in crypto</a>.



“If you try and become a proxy company, the Thai SEC will definitely investigate that company,” Varit Bulakul, President of the Digital Asset Division of Bangkok-listed The Brooker Group, told Blockworks in an interview. “They don&#8217;t really like the company to become a proxy of other assets. They rather have a listed company focusing on the actual core business.”



The Brooker Group, a business consultancy and financial advisory firm, is the “precedent case” for bitcoin on the balance sheet in Thailand, explains Bulakul. It’s also a trailblazer in the accounting treatment for digital assets, which Bulakul says is fairly clear cut&nbsp; — a trading security, or digital asset inventory, which is already codified in Thai law and profit is marked when the asset is sold — unlike in the US where things can get <a href="https://news.bloomberglaw.com/financial-accounting/tesla-bitcoin-bet-exposes-limits-of-crypto-accounting-rules" target="_blank" rel="noreferrer noopener">extraordinarily complicated</a>. And, as it is a precedent case, Bulakul said that the company has gotten a number of calls from the SEC on the topic.&nbsp;



“They talked to us about this issue, but we informed them that it&#8217;s not our goal to accumulate coins and stop doing other businesses. As in the first and second quarter we still generate income from our advisory services, equity investment, and other loan deals,” he explained. “We said we are not going to become a bitcoin or digital asset proxy in the future.”



All this is in contrast to the stance of the US SEC. Hester Peirce, one of its commissioners, has declined to publicly comment on US-listed firms putting bitcoin on their balance sheet, believing it&#8217;s an issue between executives and shareholders, not a company and its regulator.



“I don’t want to be in the business of running companies,” she said during last month’s<a href="https://cms.blockworks.co/bitcoin-etf-money-laundering-concerns-at-center-of-b-word-event-regulatory-panel/2/" target="_blank" rel="noreferrer noopener"> ‘B-Word’ conference</a>, stating that the US SEC was not a “merit regulator.”&nbsp;



MicroStrategy’s stock is now seemingly divorced from the fundamentals of the company, and <a href="https://www.forbes.com/sites/chuckjones/2021/06/30/microstrategys-stock-is-tied-to-bitcoins-success-or-failure/?sh=40b167902450" target="_blank" rel="noreferrer noopener">critics have pointed out</a> that it&#8217;s now tied to bitcoin’s success or failure. But, in the eyes of Peirce, this isn’t a regulatory issue.&nbsp;&nbsp;



Back in Thailand, Bulakul doesn’t think that the trend of bitcoin on the corporate balance sheet isn’t going to take off anytime soon. Not because of regulation, but more so because Thai companies are conservative and don’t quite understand it yet.&nbsp;



The action, Bulakul says, is on the retail and infrastructure side. There’s plenty of institutional interest in blockchain and DeFi infrastructure — Siam Commercial Bank, one if Thailand’s biggest, is a prolific investor in DeFi via its SCB 10x arm — and weekly reports from the Thai SEC puts the number of crypto users in-country at around 800,000. Thai’s are intense market speculators, after all, and the confidence in the nation’s currency, the Baht, is faltering as it slips due to closed borders and a non-existent tourist industry (a pillar of the economy). Mixed together, it’s a perfect concoction for apeing into crypto.&nbsp;



With an eye towards the future, one of the things Bulakul is looking for in Thailand is the emergence of more digital asset investment opportunities. In 2019, Thailand, along with Taiwan, <a href="https://forkast.news/balancing-blockchain-innovation-and-conservatism-taiwans-conundrum/" target="_blank" rel="noreferrer noopener">ratified laws</a> for Security Token Offerings. But in the time since then<a href="https://www.coindesk.com/why-security-token-offerings-are-a-big-yawn-in-parts-of-asia" target="_blank" rel="noreferrer noopener"> nothing has really happened</a>, with some calling it a “<a href="https://forkast.news/thailands-crypto-cold-season-makes-for-a-land-of-frowns/" target="_blank" rel="noreferrer noopener">land of frowns</a>”. But Bulakul is optimistic, citing filings for up-and-coming STOs for REIT-like real estate funds.&nbsp;



While there might not be a Thai version of MicroStrategy anytime soon, it’s very possible that the market in the country could simply skip this step as digital assets and DeFi flourish in the “land of smiles.”



Want more investor-focused content on digital assets? <a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Join us</a> September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket. <a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Buy it now</a>.

Thailand SEC Not a Fan of Listed Bitcoin Macro Proxies

Morgan Chittum

<div id="highlights-block_6114326ebd373" class="highlights">
 <ul>
 <li>CoinDCX scored $90 million funding, bringing its valuation to $1.1 billion</li>
 <li>FalconX raised $210 million in a Series C round, quintupling its valuation in less than six months.</li>
 </ul>
 
</div>



Despite the cloud of regulation hanging above digital assets markets in India and <a href="https://cms.blockworks.co/hong-kongs-digital-assets-double-standard/" target="_blank" rel="noreferrer noopener">some parts of Asia</a>, investment continues to pour into crypto infrastructure around the continent.&nbsp;



Cryptocurrency exchange platform CoinDCX, scored $90 million in Series C funding, benchmarking it as India’s first crypto-related unicorn, while FalconX raised $210 million in Series C funding to expand into Asia according to recent announcements. 



Facebook co-founder Eduardo Saverin’s venture capital firm, B Capital Group, led the equity round that brought CoinDCX’s valuation to $1.1 billion.&nbsp;



Prior to achieving unicorn status, CoinDCX, has faced a slew of <a href="https://cms.blockworks.co/indias-muddy-stance-on-bitcoin-causes-confusion/" target="_blank" rel="noreferrer noopener">regulatory scrutiny</a> from the country’s government and other financial authorities over the past year.



<h3 class="wp-block-heading">A Timeline of India’s Contradictory Regulations</h3>



<ul class="wp-block-list"><li>Back in March, Blockworks<a href="https://cms.blockworks.co/indias-muddy-stance-on-bitcoin-causes-confusion/" target="_blank" rel="noreferrer noopener"> reported</a> India’s government would “propose a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets.” However, India’s Minister of Finance later backtracked on his remarks, saying that the government would leave “a window” open for bitcoin.</li></ul>



<ul class="wp-block-list"><li>In July, the Dehli High Court of India issued a plea to the country’s Securities and Exchange Board which called for “standardized disclaimers” on cryptocurrency-related advertising, according to a<a href="https://www.newindianexpress.com/nation/2021/jul/14/delhi-hc-issues-notice-on-plea-against-crypto-currency-advertisement-seeks-standardized-disclaimers-2330000.html" target="_blank" rel="noreferrer noopener"> report</a> from The New Indian Express.&nbsp;</li></ul>



<ul class="wp-block-list"><li>&#8220;Having a disclaimer on screen after the end of the advertisement with voice over in English and Hindi&#8230; may instil wisdom of researching and reading up on the risk profiles surrounding crypto-assets prior to investing [their] hard-earned money in digital assets not understood by [them],&#8221; part of the plea stated.</li></ul>



On Tuesday, India’s government said they would further crackdown on crypto use, according to<a href="https://economictimes.indiatimes.com/news/economy/policy/will-take-all-measures-to-eliminate-use-of-crypto-assets-govt/articleshow/85210954.cms" target="_blank" rel="noreferrer noopener"> The Economic Times.</a>



Minister of State for Finance Pankaj Chaudhary said he would try to eliminate the use of “crypto-assets” as funding “illegitimate activities or as part of the payment system”.



“The government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payment system,” Chaudhary said.



<h3 class="wp-block-heading">Tiger Global leads FalconX’s funding round while eyeing Asian markets</h3>



FalconX raised $210 million in Series C funding, the cryptocurrency trading platform <a href="https://www.businesswire.com/news/home/20210810005701/en/FalconX-Raises-210M-Following-30x-YoY-Revenue-Growth-Now-Valued-at-3.75-Billion" target="_blank" rel="noreferrer noopener">announced</a> Tuesday. The latest raise quintupled FalconX’s valuation to $3.75 billion in the round led (in part) by Tiger Global, Chief Executive Officer Raghu Yarlagadda said in an <a href="https://www.bloomberg.com/news/articles/2021-08-10/crypto-platform-falconx-quintuples-valuation-to-3-75-billion" target="_blank" rel="noreferrer noopener">interview</a> with Bloomberg.



The California-based platform is targeting Asian markets with leaders of the funding found including Tiger Global Management.



According to <a href="https://www.bloomberg.com/news/articles/2021-07-28/tiger-global-s-20-year-run-in-china-hits-snag-on-new-crackdown" target="_blank" rel="noreferrer noopener">Bloomberg</a>, Tiger Global holds over $8 billion in US ADRs on Chinese companies, as of March.&nbsp;



“As institutional investors continue entering the cryptocurrency market, FalconX has significantly scaled its business and product lines to meet their needs. We’re excited to double down on the leading one-stop shop for institutional trading, credit, and clearing,” said Tiger Global partner Scott Shleifer.



The series was also led by Altimeter Capital, B Capital Group, Sapphire Ventures. Other notable participants include Mirae Asset and Amex Ventures.



Want more investor-focused content on digital assets?&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Join us</a>&nbsp;September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Buy it now</a>.

FalconX, CoinDCX Hit Unicorn Status Amid  Uncertain Regulatory Environment

<div id="highlights-block_60edf527d78d1" class="highlights">
 <ul>
 <li>Thailand’s SCB sees a future where DeFi protocols have disintermediated banks</li>
 <li>Its venture fund SCB 10x is investing in protocols that operate services that provide parallel platforms to traditional banks</li>
 </ul>
 
</div>



Asia’s large incumbent banks have historically had a mixed record on digital assets and DeFi. <a href="https://cms.blockworks.co/hong-kongs-digital-assets-double-standard/">Hong Kong’s HSBC</a> seems terrified of it and <a href="https://cms.blockworks.co/can-dbs-sto-revive-a-stagnant-offering-class/">DBS is making small regulated steps</a>, but Thailand’s Siam Commercial Bank (SCB)&#8217;s venture fund, SCB 10x, has taken a full embrace of the future of finance, doubling down on investments in the sector.&nbsp;



All this is to prepare for an era where banks and other financial institutions are possibly “completely disintermediated,” said SCB 10x&#8217;s Chief Venture and Innovation Officer Mukaya Tai.&nbsp;



“The best way to do that is to invest in DeFi very actively to learn and prepare the bank, find DeFi partners, integrate DeFi into traditional finance, become a player in this area, and potentially be the disruptor in this area,” Tai told Blockworks in an interview. “My view is that in the future, there will be an integration of traditional finance with DeFi.”



SCB 10x, SCB&#8217;s venture arm, invests in projects that parallel traditional finance, such as lending protocol Alpha and fixed income protocol Anchor. The fixed income market, Tai said, has a global value of $128 trillion creating an incredibly lucrative sector for innovation. Additionally, SCB 10x is working with Band Protocol, which develops oracles to validate real-world data such as prices for use in smart contracts, as a node validator, meaning it&#8217;s an active participant in the network.



“I am particularly proud of this because this deal marks the first time in Asia that a leading traditional bank such as ours has engaged in real involvement in the public DeFi network. Being a node validator means having certain technical skills and capabilities which we possess in-house,” Tai said. “This kind of active, hands-on engagement with the DeFi protocols and their network I believe is unique to SCB/SCB 10x among others in traditional finance, and this is something we look forward to doing with our future DeFi investments as well.”



<h3 class="wp-block-heading">There’s an appetite for DeFi, outside of Hong Kong and Singapore</h3>



Tai points to a healthy appetite for DeFi in Thailand, as demonstrated by the volume of visits to MetaMask, a popular browser-based software wallet used with Ethereum and other blockchains.&nbsp;



The number of visits to MetaMask from Thailand hit the 4.7 million mark in April 2021, according to publicly available data, with Thailand accounting for 3% of all traffic. That might not seem like much, but that puts Thailand in the top four countries behind the US, China, and Turkey.&nbsp;



Tai notes that Thai users were #1 in trading traffic on Pancake Swap, a <a href="https://cms.blockworks.co/are-nimble-dexs-a-threat-to-coinbase/" target="_blank" rel="noreferrer noopener">DEX</a> based on the Binance Service Chain, and synthetic stock trading platform Mirror.&nbsp;



While Tai would not comment on SCB 10x’s conversations with regulators, the Thai Securities and Exchange Commission has seemingly been open to forms of crypto trading, provided it stays within certain boundaries. <a href="https://cms.blockworks.co/thailand-bans-nfts-meme-tokens-from-regulated-exchanges/">In early June</a>, the regulator banned Thai-registered exchanges from listing meme tokens like DOGE that have “no clear objectives or substance, and whose prices are dictated by social media trends” as well as NFTs (which <a href="https://protos.com/nft-market-bubble-popped-crypto-collectibles-are-over/" target="_blank" rel="noreferrer noopener">market data suggests</a> fall in the same category).&nbsp;



Bangkok-based law firm Pugnatorius called the legal framework surrounding NFTs “unresolved” and pointed out that in the eyes of the law, NFT’s aren’t digital certificates of ownership but rather a “certificate of sponsorship&#8221;. This view of NFTs, which would see them popped up without much underlying substance, could be the reason why the Thai SEC has given them a red light.&nbsp;



Earlier, Pugnatorius had said Thailand was suffering from a ‘<a href="https://forkast.news/thailands-crypto-cold-season-makes-for-a-land-of-frowns/">crypto cold season</a>’ as the nation’s much-publicized regulated Security Token Offering platforms (a regulated way to raise capital via blockchain-enabled equity sales) hadn’t drawn much interest from investors.



“Potential and creativity are channeled into DeFi ventures,” Pugnatorius said at the time.&nbsp;



And what’s likely driving this appetite? Well, unlike blockchain technology ventures — which look to incorporate blockchain into different facets of the economy — that tried to raise money via STOs to not much avail, DeFi has captured the imagination and interest of the market with their quick double-digit returns.&nbsp;



Though Thailand isn’t a financial hub like Singapore and Hong Kong it does have one thing in common confirms Tai: a lack of taxes on DeFi.&nbsp;

Thailand’s Siam Commercial Bank Investing in DeFi to Prepare for an Era of Disintermediation

Jacquelyn Melinek

<div id="highlights-block_60edb018c99ff" class="highlights">
 <ul>
 <li>As of July 11, USDC hit a peak of $26.4 billion in global circulation with $832 billion transferred on-chain, according to Circle data</li>
 <li>Through Stellar’s network, users could move their value in seconds, rather than minutes, to maintain better liquidity of their assets, the company said</li>
 </ul>
 
</div>



Asian cryptocurrency exchange platform Liquid Group, Inc. and Stellar Development Foundation (SDF) announced its joint venture to provide USD coin (USDC) issued on Stellar via Liquid’s exchange for faster and cheaper transactions, the companies said Tuesday.&nbsp;



SDF’s open-source network, Stellar, has a community of over 5.3 million accounts and has processed more than 1.5 billion operations since 2015. In October 2020, Stellar was announced as an official blockchain for USDC, said CEO and executive director of the SDF Denelle Dixon in an interview with Blockworks.



Liquid is a global fintech company licensed in Japan and Singapore and is home to a cryptocurrency exchange platform that facilitates about $300 million in daily trade transaction volume across all assets.



“Liquid is the first major exchange to support Stellar USDC and can act as a hub for end-users to get in [and] out of crypto assets,” Dixon said. “Offering Stellar USDC will allow Liquid to access new geographies via additional Stellar-based stablecoin assets.”



USDC is a type of digital asset referred to as a stablecoin, which is redeemable to 1 USDC for $1 U.S. dollar, giving it a stable price. As of July 11, USDC hit a peak of <a href="https://www.circle.com/en/usdc">$26.4 billion</a> in global circulation with $832 billion transferred on-chain total, according to Circle data.  



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="983" height="469" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/07/Screen-Shot-2021-07-13-at-9.11.06-AM.jpg" alt="" class="wp-image-5490" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/07/Screen-Shot-2021-07-13-at-9.11.06-AM.jpg?w=983 983w, https://blockworks-co.imgix.net/wp-content/uploads/2021/07/Screen-Shot-2021-07-13-at-9.11.06-AM.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/07/Screen-Shot-2021-07-13-at-9.11.06-AM.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/07/Screen-Shot-2021-07-13-at-9.11.06-AM.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/07/Screen-Shot-2021-07-13-at-9.11.06-AM.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/07/Screen-Shot-2021-07-13-at-9.11.06-AM.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/07/Screen-Shot-2021-07-13-at-9.11.06-AM.jpg?w=80 80w" sizes="auto, (max-width: 983px) 100vw, 983px" /><figcaption>Source: Circle USDC data </figcaption></figure>



Separately, stablecoins are the most traded asset in<a href="https://cms.blockworks.co/circle-hiring-in-asia-as-usdc-demand-grows/" target="_blank" rel="noreferrer noopener"> cryptocurrency transactions in Asia</a> and are often used to move value between exchanges, Dixon said. 



In general, stablecoin usage is especially high in East Asia due to Chinese government’s ban in 2017 of direct exchanges of Chinese yuan for cryptocurrency. 33% of trading activity in 2020 was attributed to stablecoin transactions, according to a <a href="https://blog.chainalysis.com/reports/east-asia-cryptocurrency-market-2020">report</a> by Chainalysis. 



During Q1 2021, <a href="https://blog.chainalysis.com/reports/cryptocurrency-ecosystem-bitcoin-ethereum-stablecoins">$869 billion in stablecoin transactions</a> occurred in the market globally, making it the category with the highest transaction volume and demand during that time frame, data from Chainalysis showed. In comparison, both ether and bitcoin had lower transaction volumes at $840 billion and $623 billion, respectively.&nbsp;



For crypto exchanges like Liquid, this means transactions are confirmed faster and at a lower cost than before, Dixon said. Through Stellar’s network, users could move their value in seconds, rather than minutes, to maintain better liquidity of their assets, the company said.&nbsp;



Today, the cost of a transaction using Stellar USDC is less than a penny and Liquid’s customers can now choose which network they want for USDC withdrawals. If users pick Stellar, they can save an average of $12-$15 on each transaction when compared to other networks affected by pricing surges, Dixon said.&nbsp;



“Liquid focuses on increasing cryptocurrency adoption by introducing a technologically superior alternative to traditional payment rails,” said Liquid’s Chief Operating Officer Seth Melamed. “By allowing Liquid customers to send USDC over the Stellar blockchain, transaction time and network fees are reduced significantly compared to the original Ethereum USDC token.”