Gate Group, the parent company of renowned crypto exchange Gate.io, has reportedly applied for a new cryptocurrency license in Hong Kong. The crypto license will enable the group to launch its presence in the city through "Gate HK", a new platform dedicated to [Hong](/news/article/wow-summit-hong-kong-flagship-event) burgeoning crypto market.

Gate.io joins a growing waiting list of prominent cryptocurrency exchanges that have applied for crypto trading licenses in Hong Kong. The list includes market leaders like Huobi Global, OKX, and Bitget. 

## Gate.io joins a growing waiting list

The [announcement](https://www.prnewswire.com/news-releases/gate-group-confirmed-applying-for-new-crypto-license-in-hong-kong-301753044.html) is hot on the heels of a statement that the local government was injecting at least $6.4 million into the city's Web3 ecosystem under the 2023-2024 budget.

The government will use the [Web3](/news/article/web3-games-raised-millions) budget to organize seminars, arrange workshops to educate the public, and encourage business cooperation. In his budget speech, the city's financial secretary, Paul Chan, confirmed the Web3-related funding and creation of a crypto task force.

According to Chan, several companies were considering opening shop across the city owing to the friendly crypto regulation. He reiterated the importance of keeping up with the times and seizing the opportunity to spearhead innovation development.

[Dr. Han Lin](https://twitter.com/han_gate/status/1627865433880825857), the founder of the Gate Group, is on record referring to Hong Kong as a digital asset hub and global strategic market because of its crypto industry-leading regulatory regime.

Hong Kong’s Securities and Futures Commission (SFC) [announced on 20 February](https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR5) that it was already collecting public opinions on plans to regulate the crypto industry effective from June this year. Chan stated that the task force he will lead would comprise market participants and financial regulators, who will offer recommendations on the sustainable and responsible development of the crypto sector.

## Access to an extensive library of cryptocurrencies

Founded in 2013 and headquartered in the Cayman Islands, Gate.io is a leading cryptocurrency exchange giving users access to a comprehensive library of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and many others. The platform also offers numerous [trading options](/news/article/simple-cryptocurrency-trading), including futures, margin, and spot trading. 

Users relish the exchange’s intuitive, user-friendly interface that presents an array of tools that helps them analyze market trends to make educated trading decisions. Gate.io boasts robust security measures, including cold storage for user funds, two-factor authentication, and 24/7 customer support.

As more players line up to enter Hong Kong’s crypto space because of the government’s intervention, it is hoped the move will open the space further, create more jobs, and improve the economy.


hong kong skyline in blue with gate.io logo

Gate.io to make Hong Kong Web3 Debut

[Pionex](https://www.pionex.com/en/) was created on 24 June, 2019 in Singapore by Daniel Seng-Cheng YEO, a finance industry expert focused primarily on automated trading.

[Automated trading](https://www.investopedia.com/articles/trading/11/automated-trading-systems.asp) can also be termed as a mechanical trading system that allows the automatic execution of trades once certain specific rules for both trade entries and exits are established. 

Due to the extreme volatility associated with cryptocurrencies and the entire decentralized finance (DeFi) sector, Pionex has created 16 free built-in trading bots to help the trading efforts of sophisticated (those with knowledge and experience) and unsophisticated (those without knowledge of fundamental and technical analysis) traders and investors.

Just because the platform was built with automated trading in mind does not mean that it does not support manual trading. Pionex supports manual trading, but this comes with limits and market orders.

Performing the same function as a regular cryptocurrency exchange, traders can buy and sell cryptocurrencies against the stablecoin United States Dollar Tether (USDT).

## Pionex has low trading fees

Many cryptocurrency exchanges are competing for the same number of crypto investors. This is why this trading platform has one of the lowest fees in the space.

Trading [fees](https://www.pionex.com/en/fees) stand at 0.05% for both makers and takers in the spot market. This means that buying, let's say, [ApeCoin (APE)](/news/article/gucci-accepts-apecoin-payment), which was trading for [$5.13](https://coinmarketcap.com/currencies/apecoin-ape/), as of writing on 14 January, 2023, with $100 will give 19 APEs while you pay less than $1 in fees. 

This explains why the exchange records more than 100 million trades daily, processes more than $5 billion in monthly trading volume, and is accessed by potential traders from 100 countries and regions. 

To compete with exchanges specializing in crypto trading bots and others such as Binance, OKX, Gemini, Kraken, Bitget, Huobi, JPEX, and others, Pionex supports approximately 379 coins and tokens. 

Popular cryptocurrencies on the platform include, but are not limited to, Bitcoin (BTC), Ethereum (ETH), [Solana](/news/article/bored-ape-solana-club) (SOL), Dogecoin (DOGE), Shiba Inu (SHIB), [Cardano](/news/article/cardano-analysis-and-explanation) (ADA), Algorand (ALGO), Cronos (CRO), and Fantom (FTM).

## Highly accessible 

It is bad news for any trader to run into problems with liquidity, speed of processing transactions (execution), or verification when customer service cannot be reached instantly.

Within minutes, traders can reach customer service personnel through email support or via live chat through texting. 

Aside from being customer-service friendly, Pionex can also be accessed on [Google Play](https://play.google.com/store/apps/details?id=com.pionex.client&referrer=utm_source%3Dofficialweb&pli=1) and Apple Stores for smartphone users whose devices run Android and iOS.

Despite the positives, the platform lacks a demo account for novices to practice trading with virtual funds. Many crypto exchanges have this feature which can be invaluable to the fortunes of traders in the long term. 

## How to set up a Pionex account

Setting up an account with Pionex is just like creating an account with many centralized exchanges. You must provide legal details of your full name, home and email addresses, and phone number. This will be essential in the next phase of the account creation process.

You must adhere to a verification process where details of information earlier input will need to be uploaded to confirm that the person sitting behind the smartphone or personal computer is a human being. Once verification is complete, you can fund your account and start trading.

## Conclusion: Is Pionex exchange safe?

Pionex is safe to use because it has some of the most credible partners in the crypto game, including Circle, the issuer of the USDC stablecoin, the largest crypto exchange Binance, Simplex, CoinLedger, and Alchemy Pay.


Why is Pionex Trending Online? 

[Bitrue](https://www.bitrue.com/home/) is a leading Singaporean CEX founded in July 2018 by Curtis Wang and a team of crypto enthusiasts and finance professionals. The crypto exchange also has offices in Taiwan, the US, and Europe.

The trading platform comes with a straightforward registration process (KYC is not mandatory) and enables you to buy, trade, and invest in more than 700 crypto assets, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Aave (AAVE), and Cardano (ADA).

In this 2023 Bitrue review, I cover all you need to know about the platform, including trading features, security, and fees.

## Bitrue trading features

Listed are the features of the [one-stop trading platform](/news/article/coinmama-crypto-exchange):

•	Spot trading: at the time of writing, the cryptocurrency exchange enables you to conduct quick, safe (we will detail this later), and cheap transactions in more than 1,000 trading pairs. The CEX is one of the most proactive in the business, having latched onto the Bonk (BONK) and Fronk (FRONK) dog coin trend almost immediately by offering spot options.

•	Futures trading: take advantage of numerous perpetual futures margined in stablecoins such as USD Coin (USDC), Tether (USDT), and other digital currencies.

•	Leveraged ETFs: leverage trading with near-zero risk of liquidation is made possible by the trading platform.

•	Buy and sell crypto: buy and sell a [vast range of digital currencies](news/article/how-does-crypto-trading-work) via payment options such as credit/debit card (powered by Simplex), international wire transfer (no wire fee for ACH USD payments) in currencies such as USD, EUR, GBP, AUD, CAD, and CHF, and cryptocurrency (powered by Trust Wallet).

•	Bitrue coin (BTR): by holding BTR, you can reap the benefits of a 30% discount on trading fees, voting rights (new token additions), and much more.

•	Earn: once you have purchased a crypto asset on Bitrue, you can take advantage of the “Power Piggy” feature. This feature enables you to earn a passive interest rate on your deposited crypto.

•	Copy trading: this feature will be launched on the platform soon. Copy trading enables you to automatically copy the positions opened and managed by another trader.

## Bitrue trading fees

The XRP-centric CEX charges some of the lowest fees in the industry, with a 0.098% fee applicable on BTC, ETH, and USDT trading pairs, and XRP trading pairs incurring a 0.280% trading fee. XRP/BTC, XRP/USDT, and XRP/ETH trading result in a 0.2% fee (not the usual 0.280% that other XRP trading pairs incur).

Using BTR for transaction fees will make you eligible for an additional 30% discount on the fees mentioned above. Withdrawal fees are dynamically adjusted. Here is a list of some common token withdrawal fees:

•	ADA: 1 ADA

•	BTC: 0.0005 BTC

•	ETH: 0.01 ETH

•	LTC: 0.001 LTC

•	USDC: 13 USDC

•	USDT: 2.6 USDT

•	XRP: 0 XRP

## Is Bitrue safe?

Bitrue has had its [fair share of security troubles](https://www.forbes.com/digital-assets/exchanges/bitrue/). On 27 June, 2019, the crypto platform was hacked, leading to the loss of around $4.2M in XRP and ADA. The hack affected 90 clients and was, at the time, the 17th [largest crypto exchange hack](/news/article/binance-hack) in history.

To its credit, the exchange took all the right steps to contact local authorities, issue a formal statement, and refund all customers by 4 July, 2019. On the same day, the CEX launched the BTR token, only for the server to crash immediately.

A token pricing issue occurred on the mobile platform, resulting in some traders buying the token for inflated prices. Some sellers (of course) took advantage of this vulnerability and made some quick money.

The trading platform suffers from periodic deposit and withdrawal issues and other security concerns (an attempted 51% attack on 8 January, 2019, for example). In addition, there are several customer reports of stolen funds, frozen accounts, and inadequate support.

In a nutshell, Bitrue offers some fascinating features without a flashy website, good mobile applications for Android and iOS users, and decent security features. While Bitrue wouldn't be my first choice to trade cryptocurrencies on, it certainly wouldn't be my last (DYOR!).


Bitrue Crypto Exchange Reviewed

WOW Summit

After successful editions in Dubai, UAE, and Lisbon, Portugal, WOW Summit Hong Kong will become a flagship full-scale Web3 event in the APAC region in 2023 along with General Partner OKX. The conference will host over 5000 attendees on March 29-30 at a world-class venue AsiaWorld-Expo. WOW Hong Kong is supported by government institutions - Invest Hong Kong and Hong Kong Tourism Board - and will be co-hosted by the well-known blockchain ecosystem players - Uvecon.VC, [MaGESpire](https://magespire.io/), organized by [GuyWay](https://guyway.events), and powered by [Market Making Pro](https://marketmaking.pro). The founder of MaGESpire, Bowie Lau, is one of the [biggest Web3 names](https://www.tatlerasia.com/power-purpose/technology/tatler-hong-kong-biggest-web3-names-to-know) in Hong Kong by Tatler Asia. 

"Thrilled and excited to return to the Web3 arena as a co-host of the blockbuster WOW Summit 2023, Hong Kong edition, one of the biggest and the brightest Web3 conferences in the APAC region, filled with thought leaders, trailblazers, and industry experts looking to shape the future of the industry. Hong Kong, as the home ground to the world's largest Web3 Gaming and Metaverse players, has always treaded with cautious optimism when it comes to crypto and Web3 and largely avoided the fallout of the Crypto Winter. But with an increasingly supportive regulatory stance and the open embrace of Metaverse, Hong Kong is positioned well to re-claim its leadership in the Web3 space!" said Bowie Lau, the founder of MaGESpire.

The General Partner of WOW Hong Kong - [OKX](https://www.okx.com/web3) - is a world-leading technology company building the future of Web3 and known for having a reliable crypto trading platform for investors and professional traders. OKX’s crypto exchange is the second largest globally by trading volume. In line with its commitment to transparency and security, the company publishes the Proof of Reserves on a monthly basis. 

“OKX is pleased to serve as the General Partner of WOW Hong Kong, which will be a showcase and celebration of how Web3 and crypto are shaping our world,” said Lennix Lai, Managing Director of Financial Markets at OKX. “The Web3 community in Hong Kong is as vibrant as ever, if perhaps less visible in recent years. That’s going to change quickly thanks to events like WOW Hong Kong, which will propel Hong Kong’s Web3 industry to the forefront once again by bringing leaders of all stripes together.”

Top industry leaders, developers, startups, VCs, funds, corporates, and creators will gather at WOW HK to discuss the hottest topics in the space, network, and harness new business opportunities. Hong Kong is made for tech gatherings, and Web3 is booming here. WOW Summit Hong Kong is the first full-scale Web3 event since the city's reopening after Covid. Attendees can expect the talks and fireside chats on the Web2-to-Web3 transition and the future of the internet, blockchain adoption, real assets tokenization, [NFT](/news/category/nft-news) and Metaverse use cases, CBDC, regulations, and more. Renowned speakers, such as Yat Siu (Co-Founder & Executive Chairman at Animoca Brands), Lennix Lai (MD of Global Institutional at OKX), Benedicte N. Nolens (Head of BIS Innovation Hub HK Centre), Dave Chapman (Executive Director at BC Group), Angelina A. Kwan (CEO at Stratford Finance Limited), Duncan Wong (CEO at CryptoBLK), Gillian Howard (Founder & Fair Director at Digital Art Fair) among others, will break the talks on the stage. 

Talented artists from across the globe will present their work at the NFT and Digital Art Exhibition. In addition, startups building in Web3 will have a chance to participate in a startup competition, pitch in front of well-known funds, VCs, and corporate partners, and get grants for their project development. Brinc and OLN Law are among the main partners of the event. 

"The transition from Web2 to Web3, from centralized services to decentralized, is happening now despite the global recession, crypto winter, and uncertainty. Technological progress is unstoppable. Data privacy, end-user data ownership, access to financial products for the unbanked, digital property rights, new tools for customer loyalty management, DAO, and metaverse development - these are the trends of the third decade of the 21st century. Hong Kong has reopened its borders and introduced a new vision on Web3 and virtual assets, welcoming tech companies from all over the world. I'm excited to bring [WOW Summit](https://wowsummit.net/hong-kong-mar-2023/) here to boost the transition to Web3; WOW things will happen here!" said Ivan V. Ivanov, CEO of WOW Summit, Partner of UVECON.VC.

March 29-30 is perfect timing for [WOW Hong Kong](https://wowsummit.net/hong-kong-mar-2023/), as it will happen between two other popular events - Art Basel HK and Hong Kong Sevens, when the city will buzz and crave more entertainment. Besides the conference, several side events will offer more casual networking throughout the week and will be announced on the WOW Summit’s website. WOW Summit HK promises to be extraordinary and accommodate dozens of top Web3 companies, partners, publishing houses, VCs, speakers, and influencers. It is a must-visit Web3 event in 2023 for the global change-makers building a new world.



blue image of abstract mesh design with WOW word of web3 summit logo overlayed. 

WOW Summit Hong Kong 2023 to Be the Flagship Web3 Event in APAC

The cryptocurrency market has experienced massive growth and sharp declines in the past two years. Total crypto market capitalization rose by 283% from $782 billion on 1 January, 2021 to $3 trillion on 10 November, 2021. Since that day, the market cap of the entire crypto market has plunged by 72% to around $815 billion on 9 December, 2022.

While the massive growth was attributed to a significant rise in institutional adoption of cryptocurrencies as a method of payment and an investment instrument, most of the decline has been attributed to waning interests by crypto enthusiasts, global macroeconomic instability, and the collapse of popular crypto projects.

In December 2017, when BTC reached a peak of $20,000 (resulting in a bear market through 2018 and 2019), many analysts predicted the end of Bitcoin and the entire decentralized finance market. Most market analysts affirmed their positions on the future of crypto in the next 5 years when the financial markets (centralized and decentralized) plummeted to all-time lows during the peak of the coronavirus pandemic in March and April 2020. 

Despite their forecasts, BTC and [Ethereum](/news/article/neo-network-china-ethereum) (ETH) weathered the storm and exchanged hands for more than $60,000 and $4,000, respectively, in November 2021.

Five years on from BTCs peak in 2017, some analysts believe crypto could rise to the moon and recover. Others believe the crypto market could stabilize, while the naysayers think the next five years look like a bad period for the future of crypto, which could see it crash and burn. Skeptics should know that the era where demand and supply determined the price of cryptocurrencies is over. Whether crypto will boom or go bust in 2023 and beyond depends on regulation in the United States and abroad, the rise in the demand for crypto-tied exchange-traded funds (ETFs), and the mass adoption of cryptocurrency as a method of payment and an investment asset by individuals and mainstream companies.  

## Government regulation could brighten the future of crypto in the next 5 years

Despite the potential of decentralized lending platforms, which give users above-average minimum annual percentage yields (APYs) of 5%, billions of people have stayed away from many decentralized applications (Dapps).

Aside from the two most popular cryptocurrencies in the form of BTC and ETH, other digital assets like Shiba Inu (SHIB), Dogecoin (DOGE), and SafeMoon (SAFEMOON) have brought more than 10,000% gains to investors in a short period. Despite the quick earnings in less than one year, billions of potential investors have stayed away from investing in cryptocurrencies and using Dapps to earn a consistent passive income because they are unregulated by institutions they trust.

According to a June 2022 study by [The Ascent](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/), which is part of the Motley Fool, around 46.5 million Americans who have never engaged with any cryptocurrency said they are considering becoming crypto owners in 2023. 

The same study said that more than half of Americans surveyed who have never owned cryptocurrency said they would consider purchasing the new asset class if they could store their coins and tokens in their primary bank.

More importantly, around 50% of Americans believe crypto should be regulated.

The United Kingdom’s top regulator, the [Financial Conduct Authority](/news/article/ftx-uk-warning) (FCA), revealed its [crypto asset consumer research for 2021](https://www.fca.org.uk/publications/research/research-note-cryptoasset-consumer-research-2021), and findings showed the need for regulation. 

Many residents said they have heard about stablecoins, especially the United States Dollar Tether (USDT) and the United States Dollar Coin (USDC). Stablecoins are cryptocurrencies pegged to fiat currencies such as the USD, Euro (EUR), or Great Britain Pound (GBP). 

Around 59% of people surveyed said they stored their digital assets on the cryptocurrency exchange from which they purchased. About 24% made it known that they have zoomed into self-custody and, as a result, store their coins in digital [wallets](/news/article/tony-fadell-launches-crypto-wallet). Some pointed out that they have opted for hardware wallets due to their traits of being offline and not in the reach of cybercriminals who spread malware to compromise wallets and make off with billions of dollars in stolen crypto.

Bitcoin was the most popular coin, followed by Ethereum, Litecoin (LTC), Ripple (XRP), and Bitcoin Cash (BCH).
The FCA’s concern was that ownership had risen significantly from 1.9 million in 2020 to 2.3 million in 2021. 

According to the [FCA](/news/article/uk-crypto-license), many investors mistakenly believe that the cryptocurrencies they engage with have regulatory protection, which they don't. Due to a lack of regulation, about 43% of people surveyed said they were discouraged from buying crypto due to the consumer warnings on the FCA's website. Mistaken beliefs and a lack of understanding about an industry that continues to experience billions of dollars in losses are the reasons why crypto should be regulated.

## The future of crypto in the next 5 years

Chris Oldfield, the co-founder of Fitburn, told Moni Talks:
"Predicting the future of crypto in the next 5 years is hardly possible. However, we can look at it from different perspectives, investors, companies, and banks. From an investor's perspective, crypto is the only way to own an uncontrollable asset in many countries around the world.

This applies to both buying and selling. Investors still have the opportunity to get in early enough to position themselves well and earn high returns over time, contrary to previous asset levels.

"This also applies to day traders, who find a very young and strongly fluctuating market. Companies can quickly and easily digitize their business through the smart implementation of blockchain technology and build a fiat-independent trading business through cryptocurrencies with various partners worldwide."

Without regulation, millions continue to pour billions of dollars into the crypto industry. Regulations will give investors protection, which could motivate new investors to get involved with the new asset class and keep it alive.

"In general, I am very optimistic about the future of crypto, although we should keep an eye on regulations imposed by countries. Especially macroeconomically, crypto is volatile and can quickly be shaken by new laws and regulations. All in all, it will still take some time and some ups and downs until cryptocurrencies shape our everyday lives," Oldfield added.

Aside from government regulation, other industry-wide factors could influence the future of cryptocurrency in the next 5 years. 

## The impact of alternative blockchains is essential to the future of crypto in the next 5 years

The Proof-of-Work (PoW) blockchain had environmental concerns due to its high carbon emissions. Proof of the impact of PoW chains can be attributed to the use of the most popular cryptocurrency, Bitcoin.

Due to the power needed by BTC, it has been estimated that the first cryptocurrency creates more climate damage than global beef production.

Such environmental concern is why [Tesla](https://www.cnbc.com/2021/02/08/tesla-buys-1point5-billion-in-bitcoin.html#:~:text=Tesla%20announced%20Monday%20it%20has,maximize%20returns%20on%20our%20cash.%E2%80%9D) and Wikipedia broke their relationships with BTC after announcing the cryptocurrency as a payment method earlier.

Stakeholders of the crypto industry have not overlooked the adverse effects of PoW. This is why many developers have jumped into Proof-of-Stake (PoS) blockchains.

Ethereum has embraced PoS in its transition from PoW in September 2022 and other blockchains, such as Solana, Avalanche, TRON, Algorand, and Binance Smart Chain. Its introduction has made it easy for networks to process thousands of transactions every second while maintaining security.

PoS blockchains do not rely on application-specific integrated circuits (ASICs) but instead rely on Central Processing Units (CPUs) and Graphic Processing Units (GPUs) powering desktops and laptops to validate transactions.

This has led to a substantial reduction in high energy consumption, with most PoS chains tagging themselves as zero-carbon technologies.

Many reports point to the fact that an improvement in transaction validation could be a primary factor in the future of crypto in the next 5 years. This is because decentralized finance applications and non-fungible tokens (NFT) can be used with their transactions processed without any security problems or network congestion.

"As a blockchain is a great tool for transactions traceability and transparency, and smart contracts play an important and reliable role in securing transactions in a very cost-efficient way, eliminating mediators, most likely that crypto will replace a huge part of the traditional fiat transactions.

"On the other hand, the crypto ecosystem is moving forward, developing amazing monitoring and tracing tools that enable the regulators and community to identify suspicious transactions, wallets, and projects. This will lead to purity and maturity to minimize scams, hence big adoption in various businesses," Mohammed AlKaff AlHashmi, co-founder and Chief Brand Officer (CBO) at Islamic Coin, told MoniTalks.

## Broader institutional adoption could create a great path for crypto

The market capitalization of crypto reached a peak of $3 trillion because of institutional adoption. Three of the institutions that took the market to such heights were Tesla Inc., Grayscale, and MicroStrategy. 

In February 2021, Tesla announced that it had purchased $1.5 billion in BTC. Bitcoin reached a then peak of [$58,330.57](https://coinmarketcap.com/currencies/bitcoin/historical-data/) on the back of the purchase on 21 February, 2021.

As of September 2022, MicroStrategy’s total BTC holdings were 130,000, up 42% from March 2021’s total holdings of 91,064 BTC. Co-founder of MicroStrategy Michel Saylor has been a huge proponent of BTC since his firm began investing in BTC as far back as August 2020, when 21,454 BTC were purchased for $250 million. 

[Grayscale Investments](https://grayscale.com/) is the largest digital asset management company in the world. The firm launched Grayscale Bitcoin Trust in September 2013 and followed this up with Grayscale Ethereum Trust in December 2017. Due to the success of BTC and ETH Trusts, Grayscale followed up with Trusts for [Filecoin](https://grayscale.com/products/grayscale-filecoin-trust/) in March 2021, [Solana](https://grayscale.com/products/grayscale-solana-trust/) in November 2021, [Decentraland](https://grayscale.com/products/grayscale-decentraland-trust/) in February 2021, [Chainlink](https://grayscale.com/products/grayscale-chainlink-trust/) in February 2021, [Livepeer](https://grayscale.com/products/grayscale-livepeer-trust/) in March 2021, and [Basic Attention Token](https://grayscale.com/products/grayscale-basic-attention-token-trust/) in February 2021. 

Despite the plunge in market prices, Grayscale remains unshaken and continues to maintain the Trusts.

A repeat of the investments made by these companies in the future could keep the crypto industry alive for many years. 
Aside from making direct investments in crypto, the adoption of crypto trading by mainstream companies can also bode well for the future of crypto. 

On 1 November 2022, [MoneyGram](https://ir.moneygram.com/news-releases/news-release-details/moneygram-introduces-new-crypto-service-enabling-customers-buy), a cross-border payment company, announced the launch of what it called a new crypto service that enables its customers to buy, hold, and sell cryptocurrency via its MoneyGram App. This saw MoneyGram join other financial services firms like PayPal Inc. and Skrill (from PaySafe Group, which also includes Neteller) in allowing their customers to buy, store, and sell cryptocurrencies on its platform. 

MoneyGram is one of the biggest names in cross-border payments. If more companies join in offering crypto services to millions of their customers, this could positively impact the fortunes of crypto in the future.

## Acceptance of ETF vital to the future of crypto

In centralized finance, an exchange-traded fund (ETF) comprises a basket of securities bought and sold via a stock exchange or a brokerage firm. Since BTC is the first and most popular cryptocurrency, ETFs backed by the cryptocurrency have been trending over the past few years.

 Bitcoin ETFs are pools of BTC-related assets offered on trading exchanges by brokerages to be traded as ETFs. The purpose of BTC ETFs and other crypto-backed EFTs that will be joining the industry is to give retail investors and other investors who are not comfortable with investing in cryptocurrencies access to digital assets without actually owning them. 

Some of the best Bitcoin ETFs as of December 2022 are ProShares Bitcoin Strategy ETF (BITO), Valkyrie Bitcoin Strategy ETF (BTF), VanEck Bitcoin Strategy ETF (XBTF), AdvisorShares Managed Bitcoin Strategy ETF (CRYP), Global X Blockchain & Bitcoin Strategy ETF (BITS), and ProShares Short Bitcoin ETF (BITI). 

## Crypto investor and community support essential

Despite the need for regulation, the use of PoS blockchains, mainstream adoption by major corporations, and crypto-backed ETFs, the future of crypto in the next 5 years still depends on crypto investors and the crypto community.

Without the community, the crypto industry wouldn’t have survived into its 13th year. While many naysayers have predicted doom for the crypto sector, some industry experts remain optimistic about the future of crypto. One of them is Slava Demchuk, co-founder of AMLBot, founder of the AMLSafe app, and CEO of PureFi. 

He told MoniTalks: "The cryptocurrency ecosystem is developing rapidly, with growing investor interest and increasing transparency of crypto issuers and intermediaries. 

The convenience, speed, and security of cryptocurrency payments will continue to improve gradually. Due to the formation of a legal framework, comprehensive regulation, and oversight, cryptocurrencies will have a clear legal status, and market participants will have the right to legally conduct business and protect their interests. Most likely, all these developments will contribute to the spread of payments in cryptocurrencies, and their share in people's savings and investment portfolios will increase. 

Exchanges will de facto turn into brokers and send information about their trading activities to the tax authorities at the place of the user's tax residency. 

Cryptocurrency will get its own tax status and method of accounting and valuation. Higher transparency of the cryptosphere will lead to the situation when it will be almost impossible to use dirty crypto anywhere."

Despite the positives, crypto still faces an uncertain future and needs to tackle its cybercriminals' problems as well as find an answer to its emerging competitor in central bank digital currencies (CBDCs). 

## The future of crypto in the next 5 years looks uncertain

While many believe crypto is the future of money, the emergence of national digital currencies could end this narrative. 

China banned banks from interacting with cryptocurrencies in 2013 and followed this up with the banning of initial coin offerings (a way of raising funds to support crypto projects just like what is done in the stock market called initial public offering) in 2017. The country’s attention turned to crypto mining in 2019, and in May 2021, China banned crypto and mining. 

As a major power of the 21st century, China took the lead by launching the digital Yuan (e-CNY) in 2021, and millions of Chinese are using the national digital currency. 

According to the People’s Bank of China (PBOC), the e-CNY app had around 261 million users as of the end of 2021 and has been involved in more than 360 million transactions worth over $14 billion. The digital Yuan is available to residents in 23 cities across the country. 

China’s lead in CBDC has been embraced by other countries such as The Bahamas and Sweden. The [Dominican Republic](https://newsdirect.com/news/dominica-selects-tron-as-its-national-blockchain-to-issue-the-countrys-official-coin-607432614) announced in October 2022 that it had selected TRON as its national blockchain as it plans to issue its first official coin, Dominica Coin (DMC).

In November 2022, the Federal Reserve of the state of New York launched a digital dollar pilot program with nine financial institutions, which included Mastercard, Wells Fargo, and Citibank, to test the utility of a digital dollar using distributed ledger technology (DLT). Millions of Americans and billions worldwide are also concerned about crypto scams.

If cybercriminals continue to have their way due to a lack of regulation, crypto could crash and burn in the future.



bue image of man walking in futureistic city with bitcoins falling from sky

The Future of Crypto in the Next 5 Years 

The Crypto sector is highly volatile and mysterious. The latest secret is the ownership of the [Huobi exchange](https://www.huobi.com/en-us/). 

According to tracker CoinGecko, China-based Huobi Global continues to produce a notable daily trading volume of more than $300 million despite losing its position as the world's leading exchange.

On 7 October, the Huobi exchange platform [announced](https://www.prnewswire.com/news-releases/huobi-globals-major-shareholder-completes-share-sale-301644102.html) that About Capital Management (HK) Co. Ltd, a [Hong Kong](/news/article/crypto-hong-kong-etfs) based-asset management company, had become the exchange's controlling shareholder following a successful buyout deal.

While the transaction of an unrevealed amount crowns About Capital as the new controlling shareholder, the [exchange](/news/article/best-exchanges-for-crypto-uk) stated that the transition would have no impact on core operations or business management teams.
About Capital also revealed plans to create a global strategic advisory board "led by leading industry figures", in addition to other initiatives such as establishing a margin and risk provision fund and measures to improve the exchange's competitiveness.

## Justin Sun - The probable owner

According to reports, Justin Sun spent about $1 billion to acquire roughly 60% shareholding through the [Hong Kong](/news/article/is-crypto-legal-in-hong-kong)-based asset manager About Capital.

Sequoia China and ZhenFund transferred 28% of their ownership in Huobi Global to About Capital. According to insiders, Justin Sun hid his name from the agreements to avoid Chinese scrutiny.

Huobi Global rebranded to "Huobi" because Justin Sun's previous acquisition agreement prohibited shareholders from using Chinese trademarks or conducting business in mainland [China](/news/article/china-crypto-ban).

People familiar with the matter revealed a strict agreement between all parties in this equity transfer agreement regarding trademarks, particularly the use of the Chinese brand "Huobi".

In October, it was reported that the controlling shareholder of the exchange completed the share sale, making About Capital's M&A fund the new controller. Justin Sun joined the Global Advisory Committee of Huobi Global and repeatedly stated that he was not the buyer of Huobi.


Huobi Exchange - Who Owns It?

As the World Cup soccer tournament grows in popularity worldwide, Chinese internet platforms are rushing to join the carnival. They want to compete for the massive sports fans community in the country by providing a "[Metaverse](/news/article/harry-and-meghan-news-metaverse)-like" viewing experience enabled by 5G and virtual reality (VR).

[China](/news/article/china-crypto-ban)-based technology firms are reportedly developing technology to allow Chinese soccer fans to enjoy the [FIFA World Cup in the Metaverse VR](https://cointelegraph.com/news/nifty-news-chinese-firms-to-offer-world-cup-metaverse-viewings-x2y2-backtracks-on-royalties-and-more).

The efforts are part of the Chinese government's five-year plan released in early November to boost the capabilities and advancement of the local virtual reality (VR) industry.

The World Cup is being used as a testbed for the emerging tech by China's nascent VR industry. On 1 November, the country's Ministry of Industry and Information Technology and four other agencies unveiled an ambitious plan to accelerate the development of the VR industry, intending to exceed 350 billion yuan ($48.1 billion) in total industrial scale by 2026.

The plan establishes an overall goal of breakthroughs in core technologies such as three-dimensionality and improving the ecosystem so that VR can be used to promote economic development.

The stated plans do not mention whether the Metaverse will use blockchain technology, such as the one proposed by Wuhan city, which was later revised to remove any mention of non-fungible tokens ([NFTs](/news/category/nft-news)).

## Companies to broadcast World Cup VR

Chinese streaming platform Migu, a subsidiary of China Mobile, and Douyin, the Chinese TikTok, are two major firms to broadcast the event. The two streaming platforms have sub-licensed rights to broadcast live and on-demand coverage of the Qatar World Cup via VR. They will share digital coverage of the events with China Media Group, a state-owned broadcaster.

According to reports, Migu and Douyin paid a "sky-high" amount for the broadcasting rights. Only six mainland Chinese channels, including Migu China Mobile and Douyin, were permitted to broadcast World Cup matches in [Metaverse](/news/article/how-to-buy-metaverse-land) VR.

Pico, a VR headset maker owned by tech company ByteDance, announced on Monday that users could watch live World Cup broadcasts through its VR goggles. Soccer fans can invite friends to their virtual rooms to watch matches and interact with virtual anchors.



World Cup VR Viewing Offered

Crypto [Hong Kong regulations](/news/article/is-crypto-legal-in-hong-kong) are likely to see new laws for virtual asset investment. The Securities and Futures Commission (SFC) intends to introduce a consultation paper with the suggested regulations for cryptocurrencies. The regulatory body is also planning to launch cryptocurrency exchange-traded funds ([ETFs](/news/article/crypto-etfs)).

This step will likely give easy access to institutional and retail investors in the country. At the initial stage, only [BTC](/coins/btc) and [ETH](/coins/eth) will be available for futures trading on the Chicago Mercantile Exchange.

On 31 October 2022, the government released a [policy statement](https://www.info.gov.hk/gia/general/202210/31/P2022103000454.htm) about crypto Hong Kong regulations. It shared the government’s vision about the future of virtual assets in the country. Also, it discussed the regulatory approach and the anti-money laundering laws. Along with that, it also discussed cryptocurrency ETF. 

The Financial Services and the Treasury Bureau believe that using cryptocurrencies as a medium of investment by individuals and institutions is growing. That’s why they are introducing ETFs to facilitate investors. 

The bureau expects that launching such products will engage digital asset investors with financial institutions. This will allow them to avail of the products through a secure channel. Also, it will play a significant part in promoting digital assets in the market.

## Crypto Hong Kong policies for ETF service providers

[SFC](https://www.sfc.hk/en/) has also mentioned details about service providers who can operate in the market. According to SFC, only the firms with a “good track record of regulatory compliance” and dealing with [ETFs](/news/article/crypto-etf-uk) for a minimum of three years will be given the approval.

Moreover, these finance management firms would be required to maintain active management strategies. The strategy should be flexible for portfolio management and disruptive market events. All in all, Hong Kong has so far been eminent in drafting policies that aim to promote cryptocurrency adoption. 





Crypto Hong Kong regulators may allow ETFs

The approvals come after the Singapore Monetary Authority released two consultation papers proposing to lower regulatory barriers for [digital asset](/news/article/freeway-crypto-halts) service providers.

## How Circle and Paxos crypto firms received approval 

[Circle](https://www.circle.com/en/pressroom/circle-earns-in-principle-regulatory-approval-in-singapore) obtained in-principal permission for a Major Payments Institution License, which will let it issue cryptocurrency and deal with domestic and cross-border payments. At the same time, Paxos gained authorisation to provide digital payment token services. 

Circle and [Paxos](https://paxos.com/2022/11/02/paxos-secures-major-payments-institution-license-from-monetary-authority-of-singapore/) announced their approvals on November 2, only a week after the Monetary Authority of Singapore [(MAS) released two consultation papers](https://www.mas.gov.sg/news/media-releases/2022/mas-proposes-measures-to-reduce-risks-to-consumers-from-cryptocurrency-trading-and-enhance-standards-of-stablecoin-related-activities#:~:text=Singapore,%2026%20October%202022%E2%80%A6,in%20the%20digital%20asset%20ecosystem.) outlining suggestions for regulating digital payment token service providers and stablecoin issuers under Singapore's Payment Services Act (PSA). 

The Singapore Parliament enacted the PSA in 2019, which seeks to regulate payment systems and empowers the MAS to monitor the behaviour of payment service providers.

## What will Circle and Paxos crypto firms be able to do with approval

Circle, the creator of USD Coin ([UDSC](https://www.coingecko.com/en/coins/usd-coin)), and Paxos, the creator of Pax Dollar (USDP), both US dollar-pegged stablecoins, will now have the approval to sell their stablecoins and digital payment token products in Singapore. 

Circle's Global Head of Public and Chief Strategy Officer, Dante Disparte, believes that the licence would increase the potential for cryptocurrencies and open payment systems to stimulate economic growth in Singapore under the more creative legal environment.

## Paxos crypto firms Asia CEO's view

We're happy to have MAS as our regulator. With their oversight, we'll be able to safely drive consumer adoption of digital assets internationally in conjunction with the world's largest corporations, said the Paxos Asia CEO, Rich Teo. 

While we remain to see how many other enterprises will follow in the footsteps of Circle and Paxos, the [regulatory](/news/article/pgi-global-closed) relaxation comes after MAS rejected over 100 out of 170 applicants in late 2021 under the stricter system.

Singapore is working hard to claim back its reputation as one of the most crypto-friendly countries. However, it remains cautious for individual investors, with Singapore's largest bank, [DBS, recently opting to limit its crypto trading services to approved investors who fulfil strict requirements.](https://www.bloomberg.com/news/articles/2022-09-23/singapore-s-dbs-expands-crypto-trading-for-wealthier-clients#:~:text=DBS%20Group%20Holdings%20Ltd.,%20Singapore's,said%20in%20a%20statement%20Friday.)


Circle and Paxos crypto approval in Singapore

Is crypto legal in Hong Kong? It looks like it will be soon.

Hong Kong is taking steps to reclaim its position as a worldwide cryptocurrency hub. It intends to achieve this by launching several legal initiatives related to the crypto industry.

The Chinese city is willing to differentiate its crypto regulation approach from the crypto ban in mainland China.

Years of political upheaval and Covid restrictions prompted a talent departure from Hong Kong, undermining the city's claim to be Asia's financial hub. Officials are now attempting to repair some of the damage by luring businesses back, though how successful they will be remains to be seen.

## Crypto legalisation in Hong Kong

Hong Kong intends to legalise retail cryptocurrency trading to become a crypto hub.

The government unveiled a master plan to become a leading Asian crypto hub with legalised retail trading and digital-asset exchange-traded funds to reestablish the city's credentials as a financial centre.

According to a government statement issued on Monday, a consultation will begin on how the retail sector "may be given a suitable degree of access" to tokens. The city has invited global crypto exchanges to explore opportunities.

The Securities and Futures Commission detailed criteria for authorising crypto ETFs for the first time, which would initially only allow investment in Bitcoin and Ether traded on CME Group Inc. exchanges. The permitted futures portfolios could grow over time, according to the regulator.

According to SFC Deputy Chief Executive Julia Leung, asset managers and banks can apply to roll out such ETFs right away. She added that retail customers would be able to purchase the products.

In a policy paper, Hong Kong stated that it would be cautious about the risks to retail investors, improve education, and ensure the proper [regulatory](/news/article/uk-crypto-exchange) framework is in place.

The government also stated on Monday that it is willing to review property rights for tokenised assets and the legality of smart contracts.

The Hong Kong Special Administrative Region's government announced a bill suggesting creating a [regulatory framework](/news/article/g7-crypto-2022) for companies that offer virtual asset services. City authorities want to make Hong Kong an "international virtual assets centre" by embracing new technologies like non-fungible tokens and the Metaverse.

## Hong Kong crypto adoption 

Reports claim that Hong Kong has so far been successful in promoting the adoption of cryptocurrencies. In [a study](https://forexsuggest.com/worldwide-crypto-readiness-report/) by Forex Suggest released in July 2022, the city was ranked the best-prepared country for widespread crypto adoption, taking into account several factors, including crypto ATM installations, pro-[crypto regulations](/news/article/uk-crypto-regulation-eu), and start-up culture.


Is Crypto Legal in Hong Kong?

Chinese economists and analysts have long considered limiting their dependence on dollars. Now, they have [proposed](https://www.scmp.com/economy/china-economy/article/3195855/wary-us-dollar-hegemony-chinese-state-researchers-float-idea) an idea for the introduction of a China token, the Asian Yuan. The analysts are hopeful that it could be used throughout Asia in place of dollars for trading. 

Chinese Academy of Social Sciences ([CASS](http://www.cass.cn/)) researchers published an article in the [World Affairs Journal](http://www.worldaffairsjournal.com/). The team included Zhou Xuezhi, Liu Dongmin, and Song Shuang, all hailing from the Institute of World Economics and Politics, a research unit of CASS.  

The article was published towards the end of September. It shared the researchers’ views on Central Bank Digital Currencies (CBDCs) and insisted on a common token to reduce Asia’s dependence on USD. 

## How would the ‘China token’ work?

The analysts further proposed that this China token will work like most existing [CBDCs](/news/article/india-cbdc-launch). That’s why it would leverage distributed ledger technology (DLT). It would also be backed by a basket of currencies. In total, there may be 13 different currencies backing it to give it stability. 

Most of the currencies involved are from Southeast Asian countries. Moreover, the medium of exchange of 10 members of the Association of Southeast Asian Nations (ASEAN) will be backing the digital currency. Consequently, Chinese Yuan, South Korean Won, and Japanese Yen will be part of the bundle.

## Asian Yuan for monetary cooperation in the region

China seeks a central role in shaping the economy of Southeast Asia and bringing cooperation among the nations. Therefore, the proposal for introducing the Asian Yuan from government-backed researchers is yet another move toward this goal.
The researchers also acknowledged this in the article by saying, "More than 20 years of deepened economic integration in East Asia has laid a good foundation for regional currency cooperation".

They also hinted that now the situation is ideal for introducing a pan-Asian token. 

Besides, it would help the country strengthen its stature as a global leader in developing [digital assets](/news/article/crypto-regulations). This could be the next significant milestone as the [digital Yuan](https://twitter.com/Cointelegraph/status/1580532553517522944) has recently marked its widespread adoption with the pilot project. 

Asian Yuan May Join China Token

Neo is an open-source and decentralised smart contract network launched as Antshare in 2014 by Erick Zhang and Da Hongfei. It rebranded to Neo network in 2017, after the launch of its mainnet in 2016.

As a smart contract network, it enables developers to build decentralised applications (dApps) for various uses. It also features other services, including oracles, domain name service, decentralised file storage, and an identity system.

## NeoContract

[NeoContract](https://medium.com/neo-smart-economy/a-deep-dive-into-neovm-neocontract-e470c2c3afb0) is the blockchain’s [smart contract](/news/article/smart-contracts-blockchain) system. It is independent and helps with transaction validation, token sales, and the development of dApps. It consists of;

•	NeoVM: A decentralised virtual machine where smart contracts are executed.

•	NeoContract APIs: Sets of interfaces that enrich smart contracts with practical and powerful functionality.

•	Software Development Kit (SDK): a combination of applications and plugins that ease the development process of smart contracts.

Neo network’s smart contracts stand out because developers do not need to learn a new programming language to create them. Developers can use a variety of common programming languages, including C#, Java, and Python to create the contracts.

## Consensus mechanism

The Neo network is secured by the delegated Byzantine Fault Tolerant (dBFT). This consensus mechanism works more or less like the delegated proof of stake (DPoS).

How it works is that dBFT employs a real-time voting system that determines the nodes to create the next block on the blockchain. Holders of the blockchain’s token stake or lock up a portion of their coins to vote for the consensus nodes that will create blocks and get the block reward.

## Tokens

The blockchain has two native tokens, NEO and GAS. NEO has two uses, with more on the way. Holders can use them to vote for various changes. The tokens can also be used to claim GAS. Staking NEO allows holders to get a portion of the block reward paid in GAS. GAS is used to access the network’s services.

Both tokens have a max supply cap of 100 million coins. According to Coinmarketcap, there are currently [70,538,831](https://coinmarketcap.com/currencies/neo/) NEO coins and [10,128,375 GAS coins](https://coinmarketcap.com/currencies/gas/) in public circulation.

Each NEO coin, as of writing, is worth $8.85 and ranked 65th largest cryptocurrency by market cap. Each GAS coin is worth $2.29 and is ranked the 553rd largest cryptocurrency by market cap. Both coins are available for purchase in many exchanges, including major ones like [Binance](/news/article/binance-staking), KuCoin, and OKX.

Neo offers a lot to its users. Its services, which range from smart contract functionality, oracles, and domain name service, to decentralised file storage, enable it to be a great blockchain-based service provider in the crypto space. With the N3 upgrade on the way, the network is poised to get even better.


Neo Network: China’s Ethereum

[Pillow](https://www.pillow.fund/) Fund intends to be a one-stop shop that enables even beginner users to save, spend, and invest in cryptocurrencies.

The Singapore-based startup revealed that it had secured $18 million in Series A funding, which was co-led by Accel and Quona Capital with contributions from Elevation Capital and Jump Capital.
 
More than 75,000 users in more than 60 countries are using the app. It currently supports ten digital assets, including Bitcoin, Ethereum, [Solana](/news/article/block-asset-nft-platform), Polygon, Axie Infinity, and the stablecoins USDC and USDT pegged to the US dollar. It intends to support more than fifty digital assets shortly.

Arindam Roy, Rajath KM, and Kartik Mishra founded the company in 2021, focusing on developing markets in places like Africa and Southeast Asia.

According to the company's founders, since the start of the year, its user base has increased by 300%, and assets under management have increased by 5x. It recently expanded into Nigeria, Ghana, Vietnam, and other markets.

## Pillow Fund purpose

Pillow Fund's purpose is to make [cryptocurrency](/articles/learn-moni/cryptocurrency-trading-strategies) usage more understandable. The Pillow team had to address a few significant issues to accomplish this. The first is awareness because most people still believe cryptocurrency is only about buying and selling Bitcoin without understanding other use cases. The second is complexity, as fully utilising cryptocurrency requires knowledge of bridging, gas fees, and blockchain technology.

Pillow addresses these issues by streamlining cryptocurrency investments, transactions, and savings through single-click daily interest savings and instant swaps. It intends to do the same for other cryptocurrency services, such as payments.

## How to use Pillow Fund

Using the email id, users can sign up for their Pillow account. The second step is to provide KYC data (such as live selfie photos and national identity cards). Before deciding which digital assets to deposit or invest in, users are given a brief lesson on the possible risks associated with doing so. Another lesson about the potential risks associated with that asset before making their initial investment is also given to the user.

After that, the user can add cryptocurrency on this platform by sending a transfer to the displayed crypto wallet address from their own wallets or another cryptocurrency platform. Users can also purchase cryptocurrency using their local fiat currency in some nations where Pillow has partnered with local, compliant on-ramp service providers.

The company also accepts fiat currency deposits and withdrawals through local partnerships in Nigeria, the Philippines, and Vietnam, with plans to expand further across Southeast Asia, Africa, and Latin America with its new funding.


pillow fund wants to make crypto easy for new users

Pillow Fund makes crypto easy for users

Fintech (financial technology) has created numerous opportunities for disruptive economic entrepreneurship. More companies in Singapore are looking to provide services for buying and selling digital payment tokens (such as cryptocurrency) or a platform for exchanging such digital payment tokens.

As a result, the Monetary Authority of Singapore (MAS) enacted the Payment Services Act (PSA) to accommodate and regulate such payment service transactions, requiring any business that intends to provide digital payment token services first to obtain the necessary licences.

Recently, the Singapore-based arm of the US cryptocurrency exchange [Coinbase received Singapore's MAS "in-principle approval"](https://www.coinbase.com/blog/singapore-ipa-announcement)to provide crypto services in the country.

![Coinbase.PNG](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Coinbase_3caa112189.PNG)

Hassan Ahmed, CEO of Coinbase Singapore and the exchange's regional director for Southeast Asia, told in a statement that Singapore is a critical institutional market for the exchange in Asia because businesses there continue to show interest in crypto and digital advancements. 

According to Ahmed, the city-state also serves as Coinbase's Asia-Pacific tech hub, with an on-the-ground team of engineers in charge of the company's international expansion efforts and platform localisation.

With the new approval to offer Digital Payment Token services, Ahmed said [Coinbase](/news/article/blackrock-crypto) would seek to collaborate with regional platforms and expand its fiat capabilities. Coinbase was already offering services, including its institutional platform, under an exemption granted by MAS.

The exchange claims it has ongoing collaborations with regional Web3 organisations like the Singapore Fintech Association(SFA) and the Association of Crypto-Currency Enterprises and Start-ups (ACCESS).

## Other firms to qualify for in-principle approval

Under a new regime, approximately 180 crypto companies applied for a crypto payments licence with the Monetary Authority of Singapore in 2020. Following extensive due diligence, the country has granted 17 in-principle approvals and licences.

Among those who have received licences are Coinbase, [Crypto.com](/news/article/crypto.com-news-uk-approval), and DBS Vickers, the brokerage run by the country's largest bank DBS (DBSM.SI).
 



Coinbase gets Singapore in-principle approval for DPT license

The Yuan Coin, also known as e-CNY, e-RMB or e-yuan, is China's digital currency. It aims to replace some of the physical cash in circulation.

The coin, issued by the People's Bank of China (PBOC), is a digitised version of the Chinese physical Yuan (Renminbi). It works the same as banknotes and coins but in a digitised form. 

## The yuan coin history

China has been working on the e-yuan since 2014. In October 2020, the virtual coin underwent its first and biggest real-world test. The local government of [Shenzen](https://www.cnbc.com/2020/10/12/china-digital-currency-trial-over-1-million-handed-out-in-lottery.html) handed out 10 million e-RMB (about $1.5 million) to its citizens in a lottery.

In December 2020, the [Suzhou](https://www.cnbc.com/2020/12/07/china-hands-out-digital-yuan-in-trial-as-jdcom-accepts-the-currency.html) local government again handed 20 million e-RMB ($3 million) to its residents in a lottery. 

A few features not activated in the Shenzen trial were tested in the Suzhou trial run. One notable feature is the e-CNY offline feature, allowing users to touch smart devices to make transfers.

The Suzhou public test also saw JD.com (one of the biggest Chinese e-commerce firms) become the first online platform to accept this virtual currency.

In Feb 2021, the Chinese capital city [Beijing](https://www.cnbc.com/2021/02/08/china-to-hand-out-1point5-million-in-lunar-new-year-digital-currency-test.html) handed out 10 million e-RMB (about $1.5 million) to its residents, making it the third largest public test for the digital currency. The same month [Chengdu](https://www.cnbc.com/2021/02/24/chinese-city-chengdu-launches-6-million-digital-currency-test.html), another city in China, announced the issuance of close to $6 million worth of e-RMB to its citizens.

## The yuan coin so far in 2022

As of 2022, a lot has happened to the benefit of e-RMB. The [digital Yuan app](https://www.china-briefing.com/news/china-launches-digital-yuan-app-what-you-need-to-know/), previously only available to a few people, can now be downloaded from the Chinese app stores. It is compatible with both iOS and Android devices.

The app, however, can only be used by residents in 23 cities where China continues to test this virtual currency. Residents in the cities, which include Shanghai, Beijing, and Shenzen, can use the app to pay for goods and services with e-CNY. 

By mid-January, the app had over 261 million users and had made 87.5 billion e-CNY ($13.78 billion) worth of transactions. The app quickly became one of the most downloaded apps available in China.

Shortly after the app launched, WeChat, a messaging and payment platform with over 1.2 billion users, announced it would begin to allow users to select e-CNY as a payment option. Alibaba also announced the integration of this virtual currency into their payment options.

The e-CNY is no longer just a payment option for consumer goods. One can also use it for wealth management products and bank loans. There are plans to extend the use of this virtual currency to medical treatment, education, and other finance offerings.

Holders of e-CNY have also benefited from cards with small LCD screens that tell them how much funds are in their Yuan accounts. Users can access these updated local Chinese government cards without the internet.

The popularity and wide acceptance of the e-CNY have seen China set its eyes on the international market. The country is working towards the internalisation of its virtual currency.

## Bottom line

While the e-yuan is still in its early stages, it has quickly proven there is demand and room for it. The digital coin is not a cryptocurrency per see but a [central bank digital currency (CBDC)](/news/article/cbdc-uk), considering it is issued and controlled by the People's Bank of China (PBOC). CBDCs are built on the same rails as cryptocurrency's underlying technology, blockchain. Some see CBDCs as a threat to privacy and defeat the purpose of decentralisation, while others believe its adoption does benefit the crypto market. What do you think?
 



What is the yuan coin?

The Singapore High Court has extended Zipmex's moratorium by three months after the exchange was hamstrung by its exposure to crypto firms Babel Finance and Celsius Network.

Zipmex (ZMT) was the latest victim of a crypto contagion spurred by the collapse of the TerraUSD stablecoin when it revealed in July that it has US$48 million (S$66 million) of exposure to Babel and US$5 million with Celsius.

On July 22, the business applied for a moratorium to prevent creditors from suing Zipmex Asia and other major operating subsidiaries. Zipmex Pte Ltd (the Singapore entity), Zipmex Company Limited (the Thai business), Zipmex Australia, and PT Zipmex Exchange Indonesia are all listed as applicants.

## Committee Given Extra 3 Months

[ZMT had asked for an additional five months](https://www.straitstimes.com/business/banking/singapore-court-grants-crypto-exchange-zipmex-3-month-creditor-protection) to pay off its debts, but on Monday, August 15, Justice Aedit Abdullah voiced worries about the company's lack of communication with its creditors and customers in Thailand. He gave the committee an extra three months, until December 2, to resolve the issues they brought up, with the possibility of further extension.

In the moratorium application hearing on August 1, Justice Abdullah praised Defi Payments for its efforts to involve its creditors.

ZMT has three different investment offers on the table right now. The business has agreed to terms with two investors and received a non-binding letter of offer from a third. Lawyer for ZMT, Jonathan Tang from Morgan Lewis Stamford, claimed that each investor plans to inject capital into the company by purchasing shares in ZMT Asia or by injecting crypto assets into the company in exchange for shares.

The withdrawal process on ZMT was paused in July, although customers have been able to withdraw some Ether and Bitcoin since August 11 and August 16, respectively.

There is a total debt of around $1.1 million represented by the objections. After stating on July 25 that it was collaborating with law enforcement to investigate potential public losses as a result of Zipmex's difficulties, Thailand's Securities and Exchange Commission has been closely monitoring the effects of the company's troubles on Thai consumers.

Several [other cryptocurrency firms have also sought bankruptcy protection](/news/article/crypto-lending-platform-voyager) in recent months. A moratorium has been placed on Defi Payments' application for a Singapore digital payment token license as the company attempts to restructure the US$402 million in debt it owes to around 147,000 creditors worldwide.
 



Zipmex Gets 3-Month Creditor Protection

A leading social networking platform, WeChat is reinforcing China’s strict policies for crypto and NFT trading. The platform will be increasing the surveillance on accounts connected with crypto tokens or digital assets. Following the policy change, web WeChat has also banned a few accounts that were involved in trading NFTs.
A crypto reporter, Colin Wu ([@WuBlockchain](https://twitter.com/WuBlockchain/status/1538839036583784448?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1538839036583784448%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fchina-s-wechat-bans-crypto-and-nft-related-accounts)), from Hong Kong, first highlighted the WeChat update. On 20 June 2022, Wu identified the change in its code of conduct section. 

## Web WeChat updated its policy for crypto and NFT trading 

WeChat has updated its terms and conditions for digital assets trading. The platform introduced the policy regarding the prohibition of crypto and NFT trading accounts in the Code of Conduct section.
As per the recent update, any involvement with digital tokens or assets will be against web WeChat’s policies. Now, it will be an offence against the law to trade NFTs and crypto tokens on the platform. 

## Key points from web WeChat update

Here are some of the key points from the WeChat update for the activities related to crypto and NFTs:

1.	Business through cryptocurrencies is prohibited.
2.	Sharing information regarding any transaction involving cryptocurrency is not allowed.
3.	Digital currency derivatives, aka non-fungible tokens trading, are also prohibited.
4.	Digital assets’ secondary transactions will be illegal. 
 
## Crypto activities might lead to ultimate ban from web WeChat

With the current development regarding a [Dogecoin](/coins/doge) investor suing the CEO of spaceX and Tesla, Elon Musk, for $258 billion, and Tech Giants like Bill Gates and Warren Buffet questioning the worth of Bitcoin, web WeChat is enroute to distance itself from the tech.

Now, accounts might face a permanent ban if they are observed to be involved in transactions related to digital currencies and assets. However, in the beginning, the platform will allow users a rectification period and will limit the features of the platform. 

If the user fails to comply with the rules, the account will be permanently banned by WeChat. In addition, the severity of the violation will determine the action web WeChat officials take against the account. As WeChat has over 1.1 billion users in China, this move reiterates China's strict policy against crypto. 

 





Web WeChat to ban users for crypto and NFT trading

Do you know your crypto mining rig from your hash rate? Don't worry, this article will explain some crucial cryptocurrency mining terms you should know. 

It's perhaps an oversimplified definition, but using power-intensive computer systems to create [Bitcoin](/coins/btc) and verify transactions on the blockchain is a concept known as cryptocurrency mining.

As these mining operations become outlawed in certain countries, others are embracing the activity. Either way, cryptocurrency mining is a concept that every digital investor should at least understand to an extent. This article helps you achieve that.

A closer look reveals that cryptocurrency mining is a competition or race of sorts between miners. These miners build "rigs" from computer hardware that perform mathematical calculations for the cryptocurrency network to confirm transactions and increase security. The miners who are successful at solving these math problems first are rewarded with a new amount of cryptocurrency and they can also collect transaction fees for the transactions they confirm.   

The most common terms associated with cryptocurrency mining activities are listed below:

## Crypto Mining Rig

A crypto mining rig is a collection of physical hardware components assembled to perform the computational processes of the mining operations. Core component(s) include:

Central Processing Unit (CPU) – Once a crucial component for solving the complex calculations required in crypto-mining, the evolution of mining has made the CPU essentially a thing of the past.

Graphical Processing Unit (GPU) – In charge of the digital rendering in a mining system and much more useful in mining than the old CPU because of their speed and efficiency.

Field Programmable Gate Array (FPGA) - Unlike other architectures, FPGAs have the versatility of being programmable, giving miners the flexibility to alter their programming to improve their functionality.

Application-Specific Integrated Circuit (ASIC) – A hardware component designed exclusively for cryptocurrency mining, whereas CPUs and GPUs have other purposes in many industries. ASIC is expensive and very complex, but more efficient at mining.

### Hash Rate

Cryptocurrency miners are tasked with producing a 64-digit hexadecimal number called a hash. Hash rate is the term given to the calculating power of a device measured in hashes per second. Each hash rate is a created block that is tested against the network.

The hash rate is of utmost importance to crypto-miners because of the competition with "fellow" miners. Each miner wants their rig to be the first to generate a valid hash. To do so, their rigs need to solve those incredibly complex mathematical puzzles as rapidly as they can.

### Proof-of-Work

Cryptocurrencies evolved out of a desire to exchange currency without a financial “overseer” being involved - Better known as decentralisation. Proof-of-Work (PoW) makes this possible because it is one method of absolutely confirming cryptocurrency transactions. How? Proof-of-work adds a new block of transactions to a cryptocurrency's existing blockchain. Crypto miners compete to add these new blocks to the blockchain successfully, and the winner reaps the rewards of newly minted cryptocurrency and transaction fees.

## Is Cryptocurrency Mining Legal?

Much about the cryptocurrency market, in general, remains unregulated; cryptocurrency mining is no exception. Therefore, its legality is mostly opaque to much of society, including the crypto-miners.

For the most part, crypto miners are considered money transmitters. That means that crypto-miners operate under the jurisdiction of the rules governing those kinds of transactions in whatever country the miner decides to build their rig(s). For example, cryptocurrency mining is considered a business in Israel. It is therefore subject to corporate income tax in that country. Despite cryptocurrency mining being around for over a decade, there is still a great deal of regulatory work to be done in most countries.

For now, geography seems to be the determining factor in the legality of mining. Russia and China have [banned cryptocurrency mining](https://cryptonews.com/guides/countries-in-which-bitcoin-is-banned-or-legal.htm), but the U.S. and Canada appear to be embracing mining efforts in their territories.

## Conclusion

Not all cryptocurrency investors are encouraged to get into mining - it is not an easy way to make money, and it is a huge liability to the environment because of the inordinate amount of energy crypto rigs consume. Politically speaking, mining is expected to become a strategy of many countries which see a future in cryptocurrencies. Countries willingly putting up barriers to the widespread adoption of cryptocurrencies in their territory will be sabotaging their own innovation engine.



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