London Daily

Focus on the big picture.
Saturday, Aug 02, 2025

Digital assets outlook 2022: All eyes on regulations as capital pours in

Digital assets outlook 2022: All eyes on regulations as capital pours in

Regulation will play a big role in the direction that digital assets will take as many digital exchanges continue to operate in a grey area in many territories in Asia, investors and industry players say.

As digital assets grow in popularity among investors, new types of blockchain-based securities and exchanges have emerged, prompting regulators to take a stance. But rolling out frameworks take time, leaving firms and investors in regulatory limbo.

“A lot of regulators take a very either-or approach. Either I don’t want to do this, I don’t want to look at this, or come up with cogent rules. I think that regulators should want to regulate, and that needs to be matched by a set of firms who want to come up and meet those rules,” Henry Chong, founder of Hong Kong-based digital exchange Fusang told AsianInvestor.

Hong Kong and Singapore, arguably the region’s leading jurisdictions for digital assets, have been rolling out consultation papers and regulatory frameworks to police digital exchanges.

In May, the Hong Kong Financial Services and the Treasury Bureau (FSTB) indicated that it would require virtual asset exchanges to obtain a licence from the Securities and Futures Commission (SFC).

Currently, virtual exchanges are operating under an opt-in regime and are licensed under the same umbrella of regulations as traditional trading and securities firms.

In Singapore, which has billed itself as a centre for innovation, fintech firms are setting up shop and fintech funding in the country tripled to $3 billion in 2021. Crypto exchange Crypto.com moved its headquarters from Hong Kong to Singapore this year, and other global crypto firms such as Coinbase, Binance and Gemini have set up business units there.

That said, the Monetary Authority of Singapore (MAS) is still sieving through 400 applications from digital token players for licensing approvals. Only a handful have been granted approvals, and about 70 are currently operating on temporary exemption licences.

It also remains to be seen how long these fintech firms are willing to wait for regulatory approvals. Binance Singapore announced on Monday (December 13) that it would be pulling out of the country, dashing rumours that it would set up its global headquarters in Singapore.

In response to Binance Singapore’s departure, an MAS spokesperson said: “Applicants are able to withdraw their applications should they see fit, upon which those who are operating under exemption will be required to cease providing regulated payment services. Binance Asia Services has provided MAS with a plan for orderly cessation of its regulated payment services.”

“MAS' approach to regulation under the Payment Services Act seeks to facilitate innovation while ensuring that adequate controls are in place to address key risks such as money laundering and terrorism financing,” the spokesperson said.

INVESTOR INTEREST


After more than a decade since Bitcoin was founded, it has become clear that digital assets are here to stay. While conservative asset owners continue to shy away from cryptocurrencies, they have begun investing in the underlying technologies and other blockchain-enabled securities.

“Cryptocurrency is one type of digital asset,” Ankit Khandelwal, chief investment officer at multi-family office Maitri Asset Management said. “What interests us more is the underlying technology in these cryptocurrencies, mainly the blockchain as a technology, which can have potential tremendous uses across various industries.”

“It's the technology which makes a lot of sense and can have a lot of use cases, as well as the new evolving world of virtual spaces, and the Metaverse,” he said.

Despite the expressed interest, Maitri’s family office clients still have some reservations about digital assets space, with most “still in the learning and evaluating stage”.

“Very few clients have actually invested in this space, because it's an evolving space in itself. A lot of things are unknown here,” he said. “But one thing which we've heard from most of our investor feedback is there is a lot of promise shown by this technology. And some of the uses include Reits, funds, even just contracts, legal contracts, smart contracts, where they can have various use cases across industries, as well as supply chain logistics.”

REGULATORY PLUS AND MINUS


Regardless of which direction regulations take, the experts agreed that increased regulation is on the way – which will only give investors more confidence in digital assets and underlying technologies.

“There's a couple of digital asset classes that are going to come increasingly under the purview of regulators, including tethered stable coins, including private native cryptocurrencies,” said Benjamin Quinlan, chair of the fintech association of Hong Kong.

“All of this means the regulatory arbitrage window is fast now hiring or even disappearing; people are going to need to play much more of a regulated game. And that is, it's a plus and a minus for the industry. But overall, that tilt towards legitimacy means that in order for true institutional adoption to occur, the product set that surrounds the digital asset universe needs to be more security-like in nature,” he said.

He added that a plus of the increased regulations is that fintech companies are starting to realise that if they want to operate as a licensed financial institution, “they’re starting to understand that you can't just go on a product manufacturing spree to create security-like instruments.”

“The other side of it is a lot of brokers understand that business is leaking away from them, their client base wants to trade digital assets…. And now the brokerages are even speaking to us saying, do we need to launch our own exchange to stay relevant? It’s a very commoditised space, so it's interesting to see which exchanges will thrive,” he added.

Newsletter

Related Articles

0:00
0:00
Close
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
×