Research Summary
The report covers the top 10 cryptocurrency news in Asia from December 4 to December 6. It includes updates on regulatory measures in Hong Kong and Singapore, the issuance of a second tokenized green bond by the Hong Kong Monetary Authority, and the launch of a Bitcoin fund by Victory Securities and EMC Labs. The report also discusses the crackdown on unlicensed cryptocurrency exchanges in Kazakhstan, a pyramid scheme in Henan, China, and Binance’s withdrawal of its license application in Abu Dhabi. Other topics include the raising of $42 million by the Indian Venture Capital Fund IAN Alpha Fund, delays in Wanxiang Trust’s products, and the IPO of Phoenix Group on the Abu Dhabi Securities Exchange.
Key Takeaways
Regulatory Measures in Hong Kong and Singapore
- Appropriate Regulation for Blockchain Businesses: Hong Kong’s Financial Secretary, Paul Chan Mo-po, stated that blockchain businesses would be subjected to appropriate regulations to protect investors and financial security. This move aims to prevent financial risks from spreading to mainland China.
- Singapore-China Visa-Free Arrangement: Singapore’s Deputy Prime Minister, Lawrence Wong Shyun Tsai, announced a 30-day reciprocal visa-free arrangement with China to enhance mutual exchanges. The specifics of this policy are yet to be determined.
Green Finance and Bitcoin Fund in Hong Kong
- Second Tokenized Green Bond: The Hong Kong Monetary Authority (HKMA) is preparing to issue its second tokenized green bond, which will use blockchain technology for the redemption process. The HKMA is also exploring the integration of blockchain and the Internet of Things (IoT) into tokenized green bonds.
- Victory EMC BTC Cycle Fund: Victory Securities and EMC Labs have launched the Victory EMC BTC Cycle Fund, a compliant Bitcoin fund approved by the Hong Kong Securities and Futures Commission. The fund is targeted at qualified professional investors and uses data mining and industry research to manage Bitcoin actively.
Crackdown on Unlicensed Exchanges and Pyramid Scheme
- Kazakhstan’s Action Against Unlicensed Exchanges: The Financial Monitoring Agency of Kazakhstan has imposed a lockdown on 980 unlicensed cryptocurrency exchanges in 2023. The agency has also initiated nine investigations into illegal trading operations and money laundering activities.
- Pyramid Scheme in Henan: The Xichuan County Procuratorate in Henan Province disclosed a large-scale pyramid scheme case involving virtual currency. The main offender, Wang, was sentenced to five years and nine months in prison and fined 500,000 yuan.
Binance’s License Application and Phoenix Group’s IPO
- Binance Withdraws License Application: Binance’s investment firm, BV Investment Management, has withdrawn its license application from the Abu Dhabi financial regulator. The decision to withdraw the application is reportedly unrelated to the settlement with the U.S. Department of Justice.
- Phoenix Group’s IPO: Crypto mining firm Phoenix Group completed a $371 million IPO on the Abu Dhabi Securities Exchange (ADX), marking the first listing related to a crypto company in the Middle East. The company’s shares saw a 50% increase on the first day of trading.
Actionable Insights
- Monitor Regulatory Developments: Stakeholders should keep an eye on regulatory developments in Hong Kong and Singapore, as these could impact the operation of blockchain businesses and the movement of personnel between the two countries.
- Explore Green Finance Opportunities: The issuance of a second tokenized green bond by the HKMA indicates growing interest in green finance. Investors and businesses should explore opportunities in this area, particularly those involving the use of blockchain technology.
- Assess Risks in Cryptocurrency Investments: The crackdown on unlicensed exchanges in Kazakhstan and the pyramid scheme in Henan highlight the risks associated with cryptocurrency investments. Investors should conduct thorough due diligence before investing in such assets.
- Consider Implications of Binance’s Decision: Binance’s withdrawal of its license application in Abu Dhabi could have implications for its operations and the broader cryptocurrency market. Stakeholders should consider these implications when making investment decisions.
- Track Performance of Crypto-Related IPOs: The successful IPO of Phoenix Group on the ADX suggests a growing acceptance of crypto-related businesses in traditional financial markets. Investors should track the performance of such IPOs to inform their investment strategies.
