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HashKey is set to become Hong Kong’s first licensed cryptocurrency exchange offering services to retail users following the licence update from the Hong Kong Securities and Futures Commission. Securing its Type 1 (dealing in securities) and a Type 7 (providing automated trading services) licence last November, HashKey is one of two licensed crypto exchanges in the region, alongside OSL. Meanwhile, the Hong Kong Monetary Authority has recently urged local banks to accommodate the business needs of licensed crypto exchanges. Source: https://www.reuters.com

Brazil’s central bank has unveiled its digital currency, DREX, set to launch in 2024 to enhance the country’s financial services. DREX will employ distributed ledger technology (DLT) for wholesale interbank transaction settlements and offer retail access through tokenised bank deposits. Although the initial rollout was expected by the end of 2024, possible delays could arise due to staff strikes. Fabio Araujo, the coordinator of this project, said the goal is to make financial services more accessible in the country. Source: https://www.reuters.com

GameStop, the well-known gaming retail company, has announced its decision to stop offering iOS and Chrome Extension wallets from 1 November due to regulatory uncertainties in the industry. In an announcement on its website, GameStop advises users to secure their secret passphrases by 1 October. These crypto wallets, introduced in May 2022, helped users manage their cryptocurrencies and nonfungible tokens (NFTs). Following GameStop Stock’s Short Squeeze in January 2021, the company rolled out its NFT marketplace and disclosed plans to explore digital assets and Web3 applications as growth drivers. Source: https://cointelegraph.com

Cryptocurrency exchange Binance has announced a re-entry into the Japanese market through the launch of Binance Japan, previously known as Sakura Exchange Bitcoin. The exchange’s acquisition of Sakura Exchange Bitcoin in November 2022 is seen as an attempt to tap into the local digital asset market. The newly branded local arm, now operating in accordance with the country’s regulatory framework, supports spot trading for 34 tokens and plans to migrate global users from 14 August. This comes after the Financial Services Agency (FSA) of Japan’s warning to Binance in 2021 for operating without a licence. Source: https://cointelegraph.com

Nomura’s cryptocurrency arm, Laser Digital, has reportedly acquired an operating licence from Dubai’s Virtual Asset Regulatory Authority (VARA). The Switzerland-based company, which maintains offices in Dubai and London, will soon offer crypto-related broker-dealer, management, and investment services. Laser Digital’s forthcoming trading and asset management services aim to provide institutional investors with access to over-the-counter crypto trading and other investment products. This follows Societe Generale’s recent achievement as the first company in France to obtain a crypto services licence. Source: https://www.reuters.com

The Bank of Korea (BoK) has selected Jeju, Busan, and Incheon as potential sites for its central bank digital currency (CBDC) pilot program, notably excluding the capital, Seoul. The country’s central bank will ultimately select one region to experiment with public-level payments and distribution, alongside securing franchises capable of processing CBDC payments. Despite Busan’s significant user base, reports indicate the officials’ preference for Jeju. Meanwhile, several Korean banks are exploring stablecoins as an alternative to CBDCs. Source: https://cointelegraph.com

Worldcoin, the new project led by OpenAI CEO Sam Altman, has come under scrutiny from the Bavarian State Office for Data Protection Supervision in Germany due to concerns about its large-scale processing of sensitive biometric data. The project, which launched recently, requires users to provide iris scans for a digital ID and potentially free cryptocurrency. The primary concern raised by Michael Will, the president of the regulator, is whether users have given explicit consent for their biometric data to be processed based on “sufficient and clear” information. Although Worldcoin asserts that it complies with EU laws, privacy advocates and supervisory authorities across Europe are voicing worries and interest in its wide-scale data collection and storage practices. Source: https://www.reuters.com

The Dubai subsidiary of leading cryptocurrency exchange Binance, Binance FZE, has reportedly secured an operational minimum viable product (MVP) licence from the Virtual Asset Regulatory Authority (VARA) in Dubai. This development, officially announced on 31 July, permits Binance to offer cryptocurrency exchange and virtual asset broker-dealer services. However, these services are currently accessible only to institutional and qualified retail investors in Dubai who fulfil specific eligibility criteria. Qualified retail clients must be aged 21 or above and possess at least 500,000 United Arab Emirates dirhams ($136,000) in net liquid assets, and present valid identification and UAE residency documents. Source: https://cointelegraph.com

Hong Kong and Saudi Arabia are planning to increase their financial collaboration, particularly in the areas of tokenization and payment infrastructures. In a recent meeting between the Saudi Central Bank (SAMA) and the Hong Kong Monetary Authority (HKMA), both entities discussed key initiatives such as advancing financial infrastructure, enhancing market connectivity, and promoting sustainable development. They also signed a Memorandum of Understanding (MoU) to promote joint discussions on financial innovation. However, the official joint announcement did not clarify if the partnership would involve joint crypto-related efforts. While Hong Kong recently allowed retail investors to trade crypto, Saudi Arabia has remained quiet on its stance towards crypto since 2019. Source: https://cointelegraph.com

Cryptocurrency platform Crypto.com has been granted permission by the Dutch central bank, De Nederlandsche Bank (DNB), to offer its services in the Netherlands. This approval follows an extensive review of the firm’s business and its adherence to the country’s anti-money laundering and counter-terrorism financing requirements. Crypto.com is allowed to provide cryptocurrency wallets to users and process fiat currency on cryptocurrency exchanges. Crypto.com now joins 36 other crypto-related firms registered with DNB, including Coinbase Europe, eToro, and Bitstamp. Meanwhile, Binance has decided to stop its services in the Netherlands after it failed to meet registration requirements. Source: https://cointelegraph.com

The world’s leading cryptocurrency exchange, Binance, has reportedly withdrawn its application for a crypto licence in Germany, revealing its reconsideration of immediate expansion strategies in the face of increasing regulatory scrutiny. Despite facing a lawsuit from the US Securities and Exchange Commission (SEC) and ongoing investigation in France, Binance stated it still plans to apply for a suitable licence in Germany in the future. The exchange recently had to leave the Netherlands due to non-compliance with the country’s registration requirements. Source: https://www.reuters.com

A recent survey of the global investment industry conducted by the CFA Institute reveals a distinct divide in the attitudes of respondents towards Central Bank Digital Currencies (CBDCs). Out of over 4,150 respondents, only 42% backed the idea of launching CBDCs. Notably, only 37% of respondents from developed markets supported CBDCs, compared to 61% from emerging markets. The responses also vary in each country, with a mere 31% in the US, but as high as 70% in China, supporting the introduction of CBDCs. The respondent’s primary concerns include the potential failure of CBDCs to address a compelling need and the risks of cyberhacking and data privacy. Source: https://www.reuters.com