Asian Crypto Regulations Diverge As Singapore and Hong Kong Change Course

Whether you’re interested in investing in Asian crypto markets or just looking to get a feel for how they are moving, it’s important to know what to expect. While crypto regulations in Singapore and Hong Kong have changed course in recent months, it’s still early days for these markets, and there is much work to be done in order to protect consumers from fraud and scams.

Japan

Several countries in Asia, including Japan, are stepping up their regulatory stances. While many Asian nations recognize the benefits of the crypto economy, they are still grappling with how to properly regulate it. Asia’s regulators are rushing to establish rules that will protect consumers and mitigate financial risks.

The Financial Services Agency (FSA) hosted a series of international regulators to discuss the crypto economy. It is expected that the Financial Services Agency will introduce changes to the rules of listing digital assets. These changes will help Prime Minister Fumio Kishida’s revitalization efforts.

A new regulation was expected to be approved during the 2021 winter session of parliament. It is expected to offer exemptions for companies from paper gains on assets.

Australia

Despite the rapid growth of the crypto sector, Australian regulatory regimes have not been specifically amended to deal with the use of digital currencies. Instead, Australian regulators have focused on improving their understanding of business.

The Australian Transaction Reports and Analysis Centre requires exchanges to maintain records and report on users. It also requires exchanges to comply with the government’s AML/CFT reporting obligations. However, exchanges that are unregistered are subject to financial penalties.

In December 2021, Australia will launch a new licensing framework for cryptocurrency exchanges. This will allow consumers to safely purchase crypto assets in a regulated environment. It would also allow Australia to be a leader in the global effort to regulate tech companies.

The Australian Securities and Investments Commission (ASIC) has launched a consultation process on crypto assets. ASIC has not issued specific legislation on cryptocurrencies, but has provided high-level signposts to help businesses navigate the regulatory system. ASIC has also entered into cooperation agreements with other regulators.

South Korea

Despite the crypto regulatory confusion, South Korea is still a hotbed for trading activity. The country has seen $2.5 billion worth of tokens trade in the past 24 hours alone. This includes the rebranding of Tendermint to Ignite and the launch of the world’s first options exchange, Ribbon Finance.

It’s not just South Korea’s crypto regulations that are on the move. Singapore and Hong Kong have also tightened their crypto regulations after huge losses to retail investors. This may also mean that foreign-based tokens will struggle to enter the Korean market.

Interestingly, the cryptocurrency industry has called the government’s bluff. They argue that the government should take a closer look at the technology. They also point out that the government’s stance on the technology is wrong. They call for a clear legal framework to underpin the business.

China

Across Asia, attitudes towards regulating the crypto industry vary widely. Some countries have adopted more lenient rules than others, while others are attempting to strengthen regulations.

Hong Kong, for example, has a reputation as a “gateway to China.” But a crackdown on crypto exchanges in Mainland China led many high-profile Chinese service providers to relocate to Singapore. Hong Kong officials have vowed to protect its customers. However, they have not yet implemented that pledge.

Meanwhile, Singapore has pushed forward with its strict crypto regulations. Its Payment Services Act (PSA) is aligned with the FATF’s recommendations. Its tax authority treats digital currencies like goods and applies Goods and Services Tax (GST).

The Monetary Authority of Singapore (MAS) has received over 170 applications from crypto-related service providers. Three have secured licenses in the last three months. It has also reviewed its rules on retail investment in crypto.

Goldman Sachs Funds SICAV

Investing in a mutual fund can be a risky business. It is therefore important to read the fine print and understand the risks of a particular transaction before you invest. This includes reading the prospectus and obtaining independent financial advice.

The Goldman Sachs Funds SICAV is an SICAV registered investment company domiciled in Luxembourg. It is registered under the Markets in Financial Instruments Directive 2014/65/EU and is designed for professional clients. However, it is not approved for sale in other jurisdictions. Its product range is focused on emerging markets. Its portfolio features the following assets: High-yield bonds, securitised bonds, and non-government bonds. The fund is managed by the Fundamental Equity team of Goldman Sachs Asset Management. It also has a robust ESG program that is complemented by two new additions to its Future World ESG range.