ZA Bank becomes the first Hong Kong digital-only bank to gain a license from the Securities and Futures Commission for Type 1 regulated activity.
According to Hong Kong news outlet HKEJ, on Sept. 30 a ZA Bank spokesperson said that ZA Bank has received approval from the China Securities Regulatory Commission to allow the company to add new conditions for virtual asset transactions to its Type 1 license.
This news follows a year-long process the bank has undertaken since Hong Kong financial regulators tightened restrictions on unlicensed exchanges and the development of a regulated crypto ecosystem.
The bank plans to implement an investment fund service and operate under crypto regulations set by the country’s financial regulators.
CEO of ZA Bank, Rockson Hsu, stated in a press release that the firm remains committed to becoming a “game changer” for the banking sector two years after its official launch. He also highlighted the bank’s plan to launch an investment fund service.
“We look forward to further enhancing users’ experience with our game-changing investment fund services!” said Hsu.
Hong Kong introduced new regulations in 2022, requiring all crypto exchanges operating in the city to submit license applications by February 2024. Since then, over 24 companies struggled to get licenses. By Aug. 2024, around 12 applications have been withdrawn, including those from Bybit, Huobi HK, and OKX.
In May, 2024, the SFC warned investors to only use licensed platforms. The country’s cryptocurrency regulations came into effect in June 2023.
On July 18, 2024, ZA Bank began offering banking services to stablecoin issuers after the Hong Kong Monetary Authority unveils a list of approved companies for its stablecoin sandbox initiative.
In a press release on July 18, ZA Bank partnered with RD InnoTech, one of the first companies listed by the HKMA for sandbox trials. At that time, ZA Bank managed to onboard around ten additional stablecoin clients.
Japan’s Financial Services Agency is set to review its crypto regulations, potentially leading to lower taxes and allowing domestic funds to invest in tokens.
Japan is preparing to review its cryptocurrency regulations, which could result in lower taxes and allow domestic funds to invest in tokens, an official at the Financial Services Agency told Bloomberg.
The FSA is now reportedly set to assess whether regulating crypto under the Payments Act provides sufficient investor protection, as tokens are used primarily for investment rather than payment. The review could result in reclassifying crypto as financial instruments under Japan’s investment law, which would offer stronger protections, per a person familiar with the matter.
While no exact timeframe was revealed, the review, expected to continue through the winter, could reduce the current tax rate on crypto gains from as high as 55% to 20%, aligning with other investment assets like stocks, at a time when Japan’s crypto market is recovering with trading volumes at centralized exchanges nearing $10 billion per month, according to CCData.
In February, Japan took further steps to support its blockchain ecosystem by allowing local investment limited partnerships to invest in cryptocurrencies, part of a broader legislative change aimed at encouraging venture capital investment in web3 projects.
As crypto.news reported, the amendment to the Act on Strengthening Industrial Competitiveness aims to provide regulatory clarity for crypto-focused startups and boost Japan’s venture capital scene, underscoring the government’s intent to strengthen its crypto sector, paving the way for more significant developments in the web3 space.
Nearly 20% of Russians have used cryptocurrency, while 66% are aware of it but lack detailed knowledge, according to a new survey.
Nearly one-fifth of Russians have used cryptocurrency, while more than 65% are aware of them but lack detailed knowledge, Russia’s state-run TASS news agency reported on Monday, Sept. 30, citing data from a survey conducted by a local financial marketplace.
The survey of 1,200 respondents aged 18 and older across Russia highlights the gradual uptake of crypto among Russian consumers, with over 20% reporting some experience with crypto. The survey found that almost 80% of respondents have never used cryptocurrency, although 15% expressed interest in adopting digital assets in the future. Of those who have tried crypto, 63% indicated they did so out of curiosity, while 19% used it for savings or investment purposes. Only 2% reported regular crypto usage.
Despite growing awareness, most respondents — nearly 90% — do not currently hold any cryptocurrency. Of the minority who do, 6% reported holding less than 10% of their savings in crypto, with only 4% having up to half of their assets in digital form.
Russia’s evolving relationship with crypto comes as the government explores the use of digital assets for foreign trade, particularly in industries with potential military applications.
As crypto.news reported in mid-September, Russia formed a focus group to address challenges faced by importers dealing with dual-use goods, which have both civilian and military applications, and are subject to strict international payment restrictions. The move came shortly after China announced in early August that it would ban the export of all unregulated civilian drones, which have become increasingly used in military warfare in recent years, starting Sept. 1.
Taiwan’s financial regulator has authorized professional investors to access foreign crypto exchange-traded funds through local brokers.
Professional investors in Taiwan can now access foreign crypto exchange-traded funds through local securities firms, as approved by the Financial Supervisory Commission to diversify investment options while managing associated risks.
According to a Sept. 30 press release, the FSC’s new policy limits access to foreign crypto ETFs to professional investors, including institutional investors, high-net-worth entities, and individual investors classified as professionals due to the “complex nature of virtual assets and their significant price volatility.”
Securities firms are now required to establish suitability assessments for virtual asset ETF products, which must be approved by their board of directors. Prior to initial purchases, firms also “must assess whether the client has the necessary expertise and experience in virtual asset and related product investments to determine the suitability of the investment,” the press release reads.
The FSC said it also plans to continuously monitor the implementation of these measures, aiming to safeguard investor interests while enhancing the “competitiveness of securities firms.”
Taiwan joins a growing number of markets recognizing the demand for crypto-linked investment products, although regulatory caution remains high amid concerns over volatility and investor protection.
Earlier this year, FSC Chairman Huang Tianzhu highlighted increasing concerns regarding fraudulent crypto activities, signaling that strict administrative penalties would be enforced on crypto exchanges and foreign currency merchants. He reiterated that cryptocurrencies have no correlation to the real economy and warned of rising investment disputes and risks associated with unregulated overseas investments.
Crypto is the darling of the 2024 elections, and I’m totally here for it. For the first time in history, two presidentialcandidates are actively courting the crypto vote. Donald Trump made his pitch at the Bitcoin 2024 Conference addressing crypto voters, which was met with an astonishing vote of support from the crypto community. Democrats, unwilling to concede the crypto vote to Trump, held a crypto reset meeting with prominent industry leaders and also launched Crypto for Harris.
However, in the not-so-distant past, many proclaimed crypto “dead.” The industry experienced a brutal crypto winter, losing over two trillion in market cap in 2022 and global scrutiny from regulators. Now, two years later, crypto has emerged as the dominant player in the 2024 elections. Game on.
The SEC’s villain origin story
Crypto’s ascension into a key player on the political stage is rooted in its antagonistic sparring with the US Securities and Exchange Commission. According to Binance attorneys, Gary Gensler approached Binance to become an advisor in 2019, but the company rejected his offer.
Since 2021, there has been a considerable uptick in SEC crypto-related cases since President Joe Biden appointed Gary Gensler SEC Chair/Biden. Coincidence? I think not. Three court cases that truly establish the SEC as the chief crypto supervillain:
Number one, in the Telegram court case, the company had to return over a billion US dollars from a token raise. Ushering the reign in of SAFTs, Simple Agreement For Future Tokens contracts, and the ICO boom in the US.
Number two is the Ripple Labs case, which ultimately found Ripple (XRP) to be a security on the institutional side but not a security on the retail side.
Third, the BitMEX case, where the arrests of the founders of such top-tier exchange for AML/KYC violations, usually a slap on the wrist, shook the industry.
The legal actions taken against these companies were like warning shots fired by the SEC, foreshadowing the heavy hand they would take towards major crypto companies.
The switch up: From a friend to a foe
Once crypto winter hit, after Terra Luna collapsed, public sentiment was that bad actors in space need to be removed and held accountable. Seizing on the opportunity, the SEC began its crypto crackdown, handing out Wells notices like Halloween candy, forcing some companies to divest from US operations or close up shop to stop the bleeding.
Even companies once seen as allies became targets. The irony is that the SEC accused Coinbase of operating an illicit exchange. Coinbase has acted as a custodian of the US government, working directly with the US Marshals Service to sell Bitcoin (BTC) confiscated from the “illicit” website, the Silk Road.
This is a rather strange “UNO reverse” move by the SEC since Coinbase is US-based, a BitLicense holder, along with being a publicly traded company.
Crypto fights back
A major noticeable change is the crypto industry has gone on the offensive, accusing federal regulators of refusing to create reasonable crypto regulations and guidelines for the industry. Gemini COO Marshall Beard voiced his frustration in an interview with Bloomberg TV: “We’ve been asking for broader regulation, we’ve been doing this for a decade now, and the US does not have a broad crypto regulation framework.”
“We’ve been asking for broader regulation, we’ve been doing this for a decade now and the US does not have a broad crypto regulation framework”
Key players in the crypto space beefed up government relations efforts by partnering with lobbying firms and donating campaign dollars to crypto-friendly candidates. Some have even hit back by counter-suing the SEC.
According to Open Secrets, a campaign finance tracking site, crypto political campaign contributions have dramatically increased from the 2020 election cycle to 2022. Nearly 50% of the corporate donations are coming from crypto companies. To top it off, Fairshake is the largest Super PAC, crypto industry-funded, in this campaign cycle, raising over $200 million. Solidifying crypto’s dominance and influence in the 2024 elections.
Crypto voters are taking front and center in the 2024 US Presidential elections. Perianne Boring, CEO and founder of the Chamber of Digital Commerce, accurately predicted this scenario in a 2022 CNBC interview:
“I think that the watershed moment for crypto and politics is likely to be in 2024 and I think the next presidential election. The candidate that is able to figure out how to leverage blockchain to tap into the crypto community is going to be our next president.”
Political analysts anticipate the US Presidential election to be a very tight race, where small factions in the electorate may hold the key to victory. The crypto industry has taken note, going to painstaking lengths to position crypto as a wedge issue, collecting extensive data and research about swing voters.
Data from a recent Harris poll suggests that one in five battleground state voters consider crypto a key issue. The industry as a whole has crypto voters who are very engaged, very active, and very aware of their power in the upcoming election.
Stand With Crypto, a pro-crypto advocacy group, has already amassed close to 1.5 million online registrations. Their America Loves Crypto Tour is hitting five battleground states in September to increase crypto voter turnout.
Playing all sides to win
Crypto lobbying groups have pledged no allegiance to any side and actively donate to both Republicans and Democrats. However, that has not stopped crypto leaders like Arthur Hayes and Charles Hoskinson from weighing in on the elections. With some going as far as endorsing candidates.
The Winklevoss twins have thrown their support behind Donald Trump, while Ripple’s co-founder, Chris Larsen, is backing Kamala Harris. Crypto industry visibility has surpassed anything seen in previous campaign cycles. It’s positioned its community as a key voting demographic so that candidates must earn their votes.
Regardless of which candidate wins, crypto has proven to be the real winner of the 2024 elections by coming back from a brutal crypto winter and an equally difficult assault from federal regulators: Going from being written off completely by mainstream media to artfully mastering DC politics, rising from the ashes like a Phoenix.
United Arab Emirates’s Virtual Assets Regulatory Authority new rule will require crypto firms to add a disclaimer, warning potential customers about the risks that come with investing in digital assets.
According to a Bloomberg report, companies that want to market their digital assets in the UAE must include a disclaimer to their produce that states “virtual assets may lose their value in full or in part, and are subject to extreme volatility,” starting Oct. 1.
In the updated marketing guidelines for virtual assets, companies that provide incentives for virtual assets or related products in the UAE must acquire a compliance confirmation from VARA.
For example, they must be able to prove that the bonus will not be used to “divert or mislead” investors from properly assessing the risks related to the investment product.
VARA Chief Executive Officer Matthew White hopes that “providing clear and actionable guidance” can guarantee virtual asset service providers will be able to build trust and transparency while operating in the UAE.
In recent years, Dubai has become one of the most favorable cities for crypto marketers, thanks to its crypto-friendly tax regulations and large venture capital investment prospects.
A report published by Bitget research revealed that in 2024, an average of 500,000 crypto traders are reside in the Middle East. The number is expected to skyrocket towards 700,000 by the end of the year.
Last month, a landmark Dubai court ruling recognized cryptocurrency as a valid form of payment under employment contracts.
In October 2023, United Arab Emirates launched RAK Digital Assets Oasis, the region’s first economic free zone that accommodates cryptocurrency, web3, blockchain, and artificial intelligence. The zone offers a business-friendly regulatory environment with tax benefits.
As of March 2024, more than 100 entities had received licenses to operate in the RAK DAO, including Indian crypto exchange CoinDCX.
The World Maritime Day 2024 will take place on September 26, 2024, with the International Maritime Organization World Maritime Day Parallel Event to be held in Spain from October 20-22, 2024. And art shows held in the US as part of Climate Week NYC. This year’s World Maritime Day marks 50 years since adopting the 1974 SOLAS Convention, the key IMO treaty regulating maritime safety, with a theme “Navigating the future: safety first!”
The theme is closely linked to the UN 2030 Agenda for Sustainable Development and several of the UN’s Sustainable Development Goals, particularly SDG 7 on ensuring access to affordable, reliable, sustainable, and clean energy research and technology; SDG 8 on promoting sustainable economic growth; SDG 9 on building resilient infrastructure and sustainable industrialization that fosters innovation; SDG 13 combating climate change and its impacts; and SDG 14 on conserving and sustainably using the oceans, seas and marine resources. As IMO Secretary-General Kitack Lim noted:
“This theme would allow us to focus on the full range of safety regulatory implications arising from new and adapted technologies and the introduction of alternative fuels, including measures to reduce GHG emissions from ships as IMO strives to ensure the safety and efficiency of shipping are maintained, and potentially improved so that the flow of seaborne international trade continues to be smooth and efficient.”
Usyncro is a Spanish-headquartered, sustainable online platform that simplifies international trade and transportation documentation by guaranteeing transparency, security, and carbon traceability through blockchain technology and artificial intelligence. The “Digital Logistics Corridor” won the “The Supply Chain Innovation” award from the United Nations Development Program this year. The platform uses AI and blockchain as a service by incorporating advanced functionalities focused on carbon footprint traceability, as detailed in Usyncro Investor Deck.
It cuts down on shipment related cost by bringing efficiency. It guarantees the integrity and traceability of documents, reducing the risks of fraud and errors. Facilitates compliance with international customs and tax regulations, a significant challenge for businesses engaged in global trade by reducing compliance risk of penalties. Therefore, the platform offers a step towards sustainability in global logistics. Cristina Martin, CEO and co-founder of Usyncro, explained that her platform is “a B2B & B2G multimodal, carbon neutral, interoperable, and dynamic SaaS platform that streamlines global logistics by using artificial intelligence and blockchain as a service. We are currently focused on Europe and Latin America, but we want to expand into the USA.”
Usyncro officially began operating in Latin America after signing an alliance with ALACAT, the Federation of National Associations of 16 countries of Freight Forwarders and International Logistics Operators of Latin America and the Caribbean. This alliance intends to promote digital corridors between Europe and Latin America and was strengthened with the interoperability agreement between Usyncro and CargoX, two leaders in blockchain-based solutions for the electronic management of commercial documents within the supply chain. As Cristina Martin added:
“We have valued this impact in the volume of documentation generated when shipping goods and for every ten tons of paper we are saving 4,000 tons of CO2 emissions into the atmosphere.”
This sustainable partnership between Usyncro and CargoX, leverages blockchain technology for logistics and document management and significantly eases the complexities of international trade. It streamlines processes, reduces barriers to entry into new markets, facilitates regulatory compliance, and enhances global trade management. The collaboration not only represents a step forward in digitalizing international trade but also opens up a wealth of opportunities for businesses and entrepreneurs to innovate and grow in the global marketplace. As such, it stands as a beacon for the future of international commerce, where blockchain technology drives efficiency, transparency, and accessibility.
CWNYC World Maritime Day Art Shows
As part of my Climate Week NYC art shows, I prepared two events for World Maritime Day, which are United Nations General Assembly events.
I collaborated with the world’s first Climate Change Museum, CUHK Jockey Club Museum of Climate Change, Climarte, Lord Howe Island Museum, Teiduma, SEACHA, and its partner Thai-based Changing Climate Changing Lives Film Festival to prepare these events that will be held at Putnam History Museum and Havre de Grace Maritime Museum.
Selva Ozelli’s CWNYC Art Shows
Date: September 26
12-1 PM, PHM, 63 Chestnut Street, Cold Spring, NY
10 AM – 5 PM, HDGMM, 100 Lafayette Street, Havre de Grace, MD
All five SEC commissioners, including crypto-skeptic chair Gary Gensler, testified at a full congressional hearing where the agency was criticized for its “scorched earth” regulatory approach.
Gary Gensler, chair of the U.S. Securities and Exchange Commission, along with commissioners Hester Peirce, Mark Uyeda, Caroline Crenshaw, and Jamie Lizárraga, appeared before members of the U.S. House Financial Services Committee to discuss crypto oversight for the first time since 2019.
Lawmakers criticized SEC Chair Gary Gensler and the watchdog over its aggressive enforcement action strategy toward digital assets. For years, industry proponents and some politicians have argued that Gensler and the SEC have burdened the nascent industry with policy uncertainty.
Gensler, who often asserts that most cryptocurrencies are securities, and regular dissenter Commissioner Peirce, were specifically questioned about the SEC’s unclear language regarding blockchain-based virtual currencies like Ethereum (ETH).
Peirce stated that the agency has failed to provide regulatory clarity for crypto despite possessing the tools to dispel confusion. She argued that using ambiguous language, such as suggesting that crypto tokens are inherently securities, has worsened the agency’s ability to oversee markets.
Representative French Hill supported Peirce’s views, adding that the SEC has been “frontrunning Congress on crypto regulation” and has attempted to seize crypto oversight through broad enforcement actions. Hill and Peirce emphasized that statutory assistance from Congress could establish a comprehensive regulatory framework, especially since the “rogue SEC” has avoided rulemaking.
Rep. Tom Emmer particularly blasted chair Gensler for fabricating terms like “crypto asset security.” The agency recently backtracked on this supposed shorthand and pledged to avoid using the phrase in future litigations.
Ranking member Maxine Waters also urged Chair Patrick McHenry to continue negotiations on stablecoin policies before the end of 2024, as McHenry is set to retire in early 2025. The two have been discussing regulations for fiat-pegged tokens for months, and experts from Bitwise and the S&P surmised such a bill could transform the global digital economy.
Gensler and SEC under Congressional squeeze
The hearing, titled “Oversight of the Securities and Exchange Commission,” came shortly after the Financial Services Committee’s “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets” meeting. Last week, Gensler and the commission similarly faced criticism from legislators and private advisors.
Dan Gallagher, a former SEC commissioner and Robinhood’s CLO, recalled near-radio silence from the SEC staff when the digital asset exchange attempted to register.
Gallagher’s testimony, offering insight into the full congressional hearing with all five SEC commissioners, echoed the sentiment that only Congress can resolve the commission’s failure to provide regulatory clarity for crypto.
Ahead of the Sept. 24 FSC meeting, Republican lawmakers led by Committee chair Patrick McHenry also demanded that the SEC, Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency revoke Staff Accounting Bulletin 121.
Staff bulletins like SAB 121 are not official SEC interpretations, according to the agency’s website, which GOP Representatives cited. Yet, the securities watchdog’s staff have apparently held closed-door meetings with select companies and dished out SAB 121 exemptions.
The news drew the ire of crypto industry participants, who accused the SEC of unfairly picking winners and losers in the competitive digital asset custody market.
It remains unclear whether Bank of New York Mellon, the largest custodial bank in the U.S., received its SAB 121 exemption during one of these supposed clandestine consultations.
Additionally, before the GOP letter, Republican politicians had questioned Gensler and the SEC regarding potential political bias in employee recruitment and staff promotions. Gensler was scheduled to testify again before the Senate Banking Committee on Wednesday, Sept. 25. However, the meeting was postponed, with a new date not available at press time.
Coinbase pressured the U.S. Securities and Exchange Commission over precise and transparent crypto regulation on Monday, Sept. 23.
The leading cryptocurrency exchange in the U.S. and the financial regulator clashed in a federal appeals court in Philadelphia, according to a Reuters report.
Coinbase urged the SEC to create a better regulatory scene for crypto assets in the U.S.
Last December, Coinbase filed a petition claiming the crypto regulatory framework is “unworkable” but the SEC has already denied it.
On Sept. 23, the exchange added that crypto companies cannot operate in the U.S. due to the SEC’s unreasonable regulations, per the Reuters report.
Coinbase’s lawyer, Eugene Scalia, told the appeals court that the SEC is refusing to provide information “on how to register with the agency and comply with U.S. laws.”
On the other hand, SEC lawyer Ezekiel Hill argued that the regulator should not have to create a new set of rules for Coinbase if the company “wants to arrange its business in a way that does not comply with the existing regulatory framework.”
The judges said that the SEC is taking a cautious approach toward rulemaking but pressured the agency on “why cryptocurrency was not one of them.”
The SEC sued Coinbase last year for failing to register as a broker while operating in the country. Moreover, the regulator claimed that the exchange’s staking program and over 10 digital assets available on the platform were securities.
Three weeks later, on June 27, Coinbase sued the SEC and the Federal Deposit Insurance Corporation for refusing to provide the requested information under the Freedom of Information Act.
Coinbase and the SEC are clashing over the securities allegations in a separate lawsuit.
