Ongoing attacks on activists bring Laos into the spotlight

When the ambulance arrived at full speed at a Vientiane coffee shop on 29 April, first responders found what looked like a dead body. 

It was 25-year-old democracy activist Anousa “Jack” Luangsuphom. Jack was shot twice, including once in the face, by a gunman just minutes before the medical staff arrived. Though the young activist’s friends said the shooter was known to them, an official investigation of the attack has, so far, produced no updates in nearly two months.

“I survived the attempted murder, and that day changed my life forever,” Jack wrote to Emilie Palamy Pradichit, founder and executive director of the Bangkok-based rights group Manushya Foundation. “I will never give up my activism. We, Lao people, want democracy and freedom!”

A few weeks after this attack, on 17 May, Lao political activist Bounsuan Kitiyano, 56, took his last breaths near a forest in Ubon Ratchathani, northeastern Thailand.

Bounsuan was apparently shot three times while riding a motorbike. Villagers found his lifeless body and contacted the authorities, who have yet to establish firm leads as to who killed the activist and why.

Since the 1975 end of the Vietnam War – known in Laos as the American War – communist Laos has remained among the most repressive countries in the world, with strictly limited freedom of speech, press and religion.

Democracy activist Anousa “Jack” Luangsuphom poses from his hospital bed after being shot twice in cold blood. Photo supplied.

While political and freedom repression against Lao activists is not new, these two recent cases of murder and attempted murder of political activists made the world gasp. 

Some believe the Lao government is escalating a crackdown to silence dissidents ahead of its upcoming turn as the rotational ASEAN chair. Others simply weren’t surprised to see the continuation of a decades-long campaign of persecution of political criticism.

Lao activists such as Bounsuan have fled to Thailand for decades. But as the kingdom lacks a formal protection system for refugees – and its own people are often themselves fleeing as political dissidents – Lao exiles seeking haven on Thai soil often find an insecure, marginalised status.

“The political activism and the protection of Lao political activists in both Laos and Thailand is a sensitive issue,” said Thanachate Wisaijorn, head of the government department at the Faculty of Political Science at Ubon Ratchathani University. “It’s never brought up to the table in bilateral meetings.”

Today’s activism

While the countries’ authorities keep their grip on political narratives, Lao youths are starting to move the waters.

As the Covid-19 pandemic hit in 2020, Laos saw rapidly increasing inflation and a dramatic decrease in employment rates, all of which prompted citizens to share their concerns on the internet. Groups of youths created social media pages to allow their peers to openly share criticism of the Lao government, such as Jack’s popular Facebook page Empowered by a Keyboard

These youth-led corners of the internet are a new generation of democracy supporters who are finding new ways to raise their voices. Through social media and the internet, these activists gather online under anonymous profiles to speak about economic, political and social issues.  

Jack is part of this scene. But in his case, even speaking from behind a screen appears to have not been enough to spare him. The shooting has left others to fear not only for themselves but also for their families’ safety.

Pradichit from Manushya Foundation helped Jack’s evacuation of Laos in May after hospital staff left a bullet in his chest, allegedly hesitant to provide treatment once they realised who their patient was.

The foundation is now working with other human rights organisations and a team of lawyers to file a lawsuit against Vientiane’s Mittaphab Hospital for negligence in Jack’s case. According to their allegations, the Lao hospital failed to provide Jack with food since the police visit on 3 May. Pradichit says the chest tube installed the night of the shooting was never changed, causing severe infections and blood clots in Jack’s body. 

“His medical conditions were really bad. The hospital in Laos would have let him die,” she said.  

Jack is now fully conscious but unable to speak due to the permanent damage to his tongue caused by one of the bullets. He now communicates via text messages or written notes. 

Although he wants to continue living in Laos and advocate for democracy, after his near-brush with death, rights groups helped extract him from the country to receive medical treatment. His current location is concealed for security reasons.

“Jack doesn’t want to be relocated,” said Pradichit, who is currently supporting Jack with legal and protection processes to ensure his safety. “He doesn’t understand why he had to start his life from scratch when he had done nothing wrong.”

Unlike Jack, most other outspoken Lao activists, including Bounsuan spent decades in exile. Many of them are recognised UN political refugees in the U.S., Germany, Australia and Canada, but Bounsuan decided to stay in neighbouring Thailand so he could join the former Free Laos group, a dissident organisation active among the 1980s diaspora that advocated for a return to monarchy over communism. 

Laos Prime Minister Sonexay Siphandone, member of the ruling Lao People’s Revolutionary Party (LPRP) addressing the national assembly in the capital Vientiane. Photo from Lao TV, by AFP.

An unsafe past 

The Lao People’s Democratic Republic is one of only five remaining communist countries in the world along with China, North Korea, Vietnam and Cuba. The government is ruled by the Lao People’s Revolutionary Party (LPRP) in a closed, single-party system. 

The modern state is the legacy of the Pathet Lao communist insurgency, which had fought through independence from the French protectorate, two decades of civil war and U.S. bombings during the Vietnam War – or American War.

This communist victory was followed by a period of great poverty, along with an exodus of thousands of people escaping retribution for siding with the U.S. and royalists during the war. They were the first generation of state dissidents. That was especially true for the Hmong ethnic group, which fought alongside the U.S. against communism and has since been regularly persecuted by the state and excluded from public employment.

Thai national archives recorded 120,000 registered Hmong people crossing from Laos in the early 1980s, but according to Thanachate, there were many more. The Thai government would support them for five years as political refugees, he explained, but their protection didn’t last long.

“We must be aware that the state relationship between Thailand and Laos was not good at that time,” Thanachate said. “That was until 2009, when Thailand facilitated the Hmong repatriation in Laos.”

For years, the Lao government mostly focused on persecuting Hmong as the state enemies, though that pressure eased with their safe repatriation. Meanwhile, a new generation of Lao political activists had been born – and were beginning a small pro-democracy movement.

Laos was about to see a new wave of political activism, with Jack being one of many young human rights defenders in the country. Attacks against political activists, however, continued incessantly throughout the decades.

Shui-Meng Ng holds a picture of her missing Laos husband Sombath Somphone, an award-winning environmental campaigner following a press conference in Bangkok on 12 December, 2018. Photo by Romeo Gacad for AFP.

Human rights violations continued

This year, Bounsuan’s death could be the latest of these brutal attacks. Human rights organisations have condemned the murder and called for the Lao government to run an independent and impartial investigation. 

The most prominent case of politically motivated assault was the enforced disappearance of human rights defender Sombath Somphone, who was abducted from a police checkpoint in Vientiane in 2012.

More than a decade later, no one knows his whereabouts. 

In the meantime, environmental activist Houayheuang “Muay” Xayabouly remains in prison after pleading guilty to state defamation for criticising the government on Facebook for corruption and its poor response to the 2019 flooding in Champasak and Salavan provinces. The whereabouts of Lao pro-democracy activist Od Sayavong, who disappeared in 2019 after returning to Laos from Thailand on a visa run, also remains unknown. 

Chue Youa Vang was murdered in 2021 allegedly by the Lao authorities for his work on finding one of the four Hmong people who mysteriously disappeared in March 2020. 

As of last year, the Lao government has reported only three political prisoners, who remain in detention for treason, anti-state propaganda and unauthorised protests.  

Many more cases have gone unreported both in Laos and Thailand. Human rights groups within Laos are only allowed to operate under government oversight, which normally restricts their investigative power and has never welcomed international oversight in cases involving Lao activists. 

In the shadow of silence, Lao democracy and human rights advocates continue to walk lightly. 

Jack is now undergoing a series of life-saving surgeries. He is not yet out of danger, but as human rights groups are increasing pressure on the Lao government, his call for democracy continues to be clear.

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ADDX appoints former SGX leader to board | FinanceAsia

Singapore-based digital securities exchange, ADDX, has appointed former Singapore Exchange (SGX) senior managing director, Sutat Chew, as chair.

Chew brings to the firm over 25 years of experience across financial services, including 14 years spent at the Singaporean bourse, where he led the global sales origination team and helped the business expand across 10 international locations. In terms of other prior experience, he has held senior roles at Standard Chartered, OCBC Securities and DBS.

The leadership appointment offers ADDX strategic direction as it looks to expand overseas. Specifically, Chew will be responsible for driving growth and innovation, the company release stated.

Speaking to FinanceAsia, Chew said that his priorities in coming on board involve cultivating strategic collaborations and partnerships so that ADDX is “poised to advance” its mission to democratise investment for wealth creation.

“We hope to meet the needs of customers in North Asia and the Middle East in the second half of this year through appropriate partnerships and joint ventures (JVs),” he said.

Operating on a private, permissioned blockchain that is regulated by the Monetary Authority of Singapore (MAS), ADDX offers issuers access to a larger pool of capital than is available through traditional fundraising means.

The platform’s employment of sophisticated digital processing technology enables it to manage the issuance, custody and distribution of private market products at a lower administrative cost compared to traditional markets and thus, the firm is able to reduce the fundraising entry threshold, inviting a wider community of investors to participate in capital exchange.

Regulation and innovation

Reflecting on progress and innovation across Asia’s capital markets, Chew said that it is the development of new forms of market infrastructure to support the advancement of digital assets, that excites him the most.

“Initiatives such as Project Ubin, Project Orchid and Project Guardian aim to explore the potential of blockchain and distributed ledger technology (DLT) in areas such as payments, settlements, digital identity, and cross-border transactions – which should enhance efficiency, transparency, and security in the financial sector,” he told FA.

He commended the efforts of Singapore’s market regulators in supporting the city-state’s development as a “world-class global financial hub with a highly competitive and diverse financial ecosystem.”

“Regulators here have been at the forefront of technology and innovation in the financial sector, balancing it with appropriate consideration for education and investor protection,” he explained.

“The progressive stance taken by the MAS in recognising that tokenised securities should be regulated in the same way as traditional securities, gives companies like ADDX clarity to invest and innovate for global clients who can trust the regime.”

Market uncertainty

However, Chew acknowledged that the uncertain market economic climate threatens the capital market advancement.

“One of the challenges to market innovation is reduced investor confidence and risk aversion as part of the uncertain market environment. As investors become more cautious and conservative, that may result in more gradual adoption of new ideas, technologies, and investment opportunities.”

“What we have done is adapt to evolving investor sentiment and risk appetite, communicate transparently, as well as actively educate and engage investors to address their concerns, provide reassurance and offer a suite of products that meet their needs.”

As an example, he shared that the platform had helped four issuers raise more than S$650 million via commercial papers to meet near-term investment needs.

“I believe that regulators and responsible startups or fintech players can continue to work together to keep pace with emerging technologies and financial innovation, whilst striking a balance with appropriate regulatory safeguards,” he added. 

In addition to Chew, ADDX’s board comprises Oi-Yee Choo, who serves as CEO; and Inmoo Hwang, the firm’s COO.

Chew also serves as chair of ADDX’s listing committee, a position he has held since 2019; and he has been a board member of ICHX Tech – ADDX’s holding company – since 2018. MAS approved the operational transfer of ADDX from ICHX Tech in May 2022, and the platform began is regulated activities from September the same year.

ADDX’s shareholders include SGX, the Stock Exchange of Thailand, Temasek subsidiary, Heliconia Capital, the Development Bank of Japan, UOB and Hamilton Lane, among others. In April last year, it partnered with UOB to execute the largest foreign currency digital bond in Singapore to date; a sustainability-linked bond, issued by Singtel. 

Read also: Temasek-backed venture debt fund tokenises on ADDX

¬ Haymarket Media Limited. All rights reserved.

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Malaysia’s respond.io achieves WhatsApp Business Solution Provider status; joins 150 global providers recognised by Meta

Businesses can manage WhatsApp business profiles from one centralised platform
Will complement respond.io’s automated integration with over 5k third-party apps

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“Hong Kong to emerge as stock exchange of choice” – Dealmaking experts | FinanceAsia

Former Securities and Futures Commission (SFC) senior director, Roger Cheng, is set to join UK-headquartered law firm, Linklaters, at its Hong Kong base from August.

The move follows his nearly five years of experience at the special administrative region’s (SAR) financial regulator, where Cheng oversaw the operations of the Takeovers Team. The law firm’s announcement pointed to the instrumental role that he played during this time, developing Hong Kong’s takeovers and mergers policy, as well as driving forward other listing-related progress.

Prior to his tenure with the SFC, Cheng spent 13 years at Slaughter and May.

Offering some thoughts around trends affecting dealmaking in Hong Kong and China, Betty Yap, Linklaters partner and global co-head of the firm’s Financial Sponsor Group shared that there had been a noticeable rebound of M&A activity in the region post-pandemic, though activity has not yet returned to pre-pandemic levels.

“Inbound investment into mainland China is still somewhat marred by geo-politics and recent regulatory changes,” she told FinanceAsia, adding that her team is optimistic around sectors less affected by national security concerns, such as the consumer segment.

“Interest from Middle Eastern investors in M&A opportunities in China has increased as relations between [both] continue to strengthen.  We are also seeing a number of sales by private equity (PE) sponsors in the market, as investments made in prior years mature,” she continued.

Her colleague, Hong Kong-based partner, Xiaoxi Lin, noted that recent financial stress in the Chinese real estate market has presented interesting M&A opportunity in Hong Kong, through the sale of prime commercial and residential properties to generate cashflow and service restructuring debts.

“A cocktail of factors including the distress in the PRC real estate sector, rising interest rates, and regulatory restrictions have meant that commercial banks are reducing their exposure to the real estate sector, including loans secured by residential and commercial properties,” Yap said.

“Credit funds – who are not subject to the same regulatory restrictions – are stepping into this funding gap,” she added, highlighting that while the current elevated interest rate environment means that borrowing costs are higher, credit funds are able to provide financing on the back of higher loan-to-value (LTV) ratios and can offer swift deal execution.

IPO dynamics

In terms of the IPO landscape ahead, Lin told FA, “Market participants are cautiously expecting a stronger HK IPO market this year with more companies listed than in 2022”.

Corporate partner, Donnelly Chan, added that Hong Kong’s recent introduction of the Chapter 18C regime – which reduces the listing requirements threshold for firms operating in new economy industries – together with recent China Securities Regulatory Commission (CSRC) reforms, is likely to support the market’s advancement.

“The track record and proven success of the pre-revenue Biotech listing regime and the weighted voting rights (WVR) listing regime since their introduction in 2018, coupled with the concession route for Greater China companies to secondary list on the main board has demonstrated the Hong Kong market’s flexible approach and readiness to evolve and explore opportunities,” he told FA.

Chan added that, as a result, it is hoped Hong Kong’s bourse will become “the stock exchange of choice” compared to other regional fundraising hubs.

Opportunity elsewhere

However, Yap is bullish on opportunity across the full breadth of Asian markets.

“For the remainder of 2023, we believe there will be continued interest in M&A opportunities in Asia,” she told FA.

“As inbound investment interest in China remains mixed given geo-politics, other single jurisdiction markets in Asia that can provide scale will be of interest to financial sponsor investors looking for efficiency in the deployment of capital.”

She pointed to markets such as India and Japan as benefitting from investor appetite – with the latter offering attractive costs “because of the lower yen”.

Yap added that Southeast Asia will continue to draw capital: “in particular Indonesia, with its relatively young demographics and the consumption power of its growing middle class.”

In terms of sectors, she noted that energy transition will remain of utmost importance “with interest in targets from renewables to electric vehicles to batteries to de-carbonising assets,” while digital infrastructure and data centre investment will continue to support the rise of e-commerce.

In the Linklaters release, head of Corporate, Sophie Mathur shared, “We are delighted to welcome Roger to our corporate practice. We are confident that his insights into takeovers and mergers regulations and policy matters will be of immense value-add to our clients when navigating take-privates and other public market transactions.”

Unlike the typical structure of a corporation, Linklaters employs a limited liability partnership which enables the firm’s partner leadership-base to make long-term strategic decisions for the business together.

Cheng’s appointment follows other key hires in Asia in recent months, including the appointment of Yoshiyuki Asaoka as corporate partner in Japan. In June 2021, William Liu was appointed as regional managing partner for Asia Pacific.

 

¬ Haymarket Media Limited. All rights reserved.

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Police bust scam ring in  Chiang Rai

CHIANG RAI: Officers from Provincial Police Region 5 and Immigration Bureau have arrested a Chinese national and 12 accomplices for online scam charges.

Pol Lt Gen Piya Tawichai, Provincial Police Region 5 commissioner, said yesterday the arrest followed a tip-off about a gang of scammers operating in Chiang Rai city.

Armed with a search warrant issued by Chiang Rai Provincial Court on Saturday, the police joined forces with immigration police to raid a commercial building in tambon Rob Wiang, Muang district the same day, where they found the gang busy scamming victims on their computers.

Police arrested Chu Huaixiang, a Chinese national who was identified as the gang leader along with 12 members of his team, which includes both Thai and Chinese nationals. Police also seized computers found in the building.

Pol Lt Gen Piya said the gang initiated the scam by creating fake profiles on Facebook, using photos of good-looking people taken from the internet as the profile pictures. They set up Facebook groups named Tam Boon Online (“making merit online”) and “Tour Boon” (“travelling and making merit”).

Thai members of the gang would then send Facebook messages to anyone they found on social media. If they get a response, they will continue talking with the victim to gain their trust. After a while, the gang members would trick the victim into making a cash donation and ask the victim to download a mobile application named App.Shaoxiang.cfd.

The application, developed by the gang’s Chinese members, was touted to be an online merit making application. It features pictures of temples in Chiang Rai to create the illusion of legitimacy. However, all the money donated through the app was actually transferred to proxy bank accounts, said the police.

The gang were charged with fraud and inputting fake data into the computer system.

The police will expand their investigations to find out who are behind the proxy bank accounts, in a bid to find other people who are involved with the scam.

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Chinese held over B10bn cyber fraud

A Chinese couple living in a 67-million-baht house in Bangkok were arrested yesterday for alleged multinational fraud, with damages estimated at 10 billion baht, the Cyber Crime Investigation Bureau (CCIB) said.

Shaoxian Su, 31, and his girlfriend Keyi Ye, 25, were taken into custody at their house in the Palazzo Srinakarin housing estate in Prawet district on charges of public fraud and money laundering.

Police from the CCIB impounded 1.5 million baht in cash, the title deeds for the house, ownership documents for four condo apartments in the Sukhumvit area worth a total of 128 million baht, and 14 Bearbrick dolls also found on the premises.

A CCIB spokesman quoted victims as accusing the couple of using fake online profiles to approach them via social media and enticing them into “invest in digital currencies and assets”.

Victims in Bangkok and Prachuap Khiri Khan told police they lost about 35 million baht. About 20,000 similar complaints were filed overseas, including the United States and the UK, which are believed to be linked to the suspects’ network. Total damages are estimated at 10 billion baht.

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SC seeks to transform agri sector via fintech, alternative financing

Access to finance is critical to agriculture’s future, said SC chairman
Capital market could help Malaysia achieve its food security agenda

The Securities Commission Malaysia (SC) encourages the broader adoption of financial technology (fintech) in agriculture to help achieve the country’s food security agenda.
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Chinese couple arrested for alleged B10bn fraud

Police outside the couple's luxury Bangkok house during their arrest for international public fraud on Wednesday. (Photo: police)
Police outside the couple’s luxury Bangkok house during their arrest for international public fraud on Wednesday. (Photo: police)

A Chinese couple living in a 67-million-baht house in Bangkok were arrested on Wednesday for alleged multinational fraud, with damage estimated at 10 billion baht, the Cyber Crime Investigation Bureau said.

Shaoxian Su, 31, and his girlfriend Keyi Ye, 25, were taken into custody at their house in The Palazzo Srinakarin housing estate, in Prawet district, on Wednesday morning on charges of public fraud and money laundering.

Police from the Cyber Crime Investigation Bureau (CCIB) impounded 1.5 million baht in cash, the title deed for their 67-million-baht house,  ownership documents for four condominium apartments in Sukhumvit area worth 128 million baht and 14 Bearbrick dolls also found on the premises.

A CCIB spokesman quoted victims as accusing the couple of using fake online profiles to approach them via social media and enticing them into “investing in digital currencies and assets”. Local victims were in Bangkok and Prachuap Khiri Khan. They told police they lost about 35 million baht to the suspects.

There were about 20,000 similar complaints filed in other countries, including the United States and Britain,  believed linked to the suspects’ network. Total damage was estimated at 10 billion baht.

The couple did not have jobs. They often travelled abroad and had purchased Thailand Elite Cards, which made it easier for them, the CCIB said.

CCIB police also raided nearby luxury houses and impounded more assets they believed were linked to the suspects and their alleged crimes.

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Jennifer Lawrence’s secret filming in Afghanistan

Jennifer LawrenceGetty Images

“You only oppress women,” the young woman says to the Taliban fighter.

“I told you not to talk,” he shouts back, “I will kill you right here!”

“Okay, kill me!” she replies, raising her voice to match his. “You closed schools and universities! It’s better to kill me!”

A camera phone has secretly, and shakily, captured this direct confrontation inside a car between the woman and the militant.

She had just been arrested following a protest and was about to be taken to a holding cell in Kabul.

It is a scene from the documentary Bread and Roses, which explores the day-to-day lives of three women in the weeks following the takeover.

The producer is the Oscar-winning actress, Jennifer Lawrence, who is telling the BBC why this moment in the film is so significant to her.

“My heart was beating so fast watching these women defy the Taliban,” Lawrence says. “You don’t see this side of the story, women fighting back, in the news everyday and it’s an important part of our film, and the stories of these women.”

She says it is devastating to think about the sudden loss of control Afghan women have endured.

“They currently have no autonomy within their country. It is so important for them to be given the opportunity to document their own story, in their own way.”

The film has been made by Excellent Cadaver, the production company Lawrence set up in 2018 with her friend Justine Ciarrocchi.

“This documentary was born out of emotion and necessity,” says Lawrence, who describes feeling helpless and frustrated about what she was seeing on the news.

Ciarrocchi says that Lawrence “had a seismic reaction to the fall of Kabul in 2021 because the circumstances were so dire for women”.

“And she said, ‘We’ve got to give somebody a platform to tell this story in a meaningful way.'”

That somebody was Sahra Mani, a documentary maker who co-founded the independent Kabul production company, Afghan Doc House.

The all women team of documentary Bread and Roses

Excellent Cadavar

Both Lawrence and Ciarrocchi had watched her critically-acclaimed documentary A Thousand Girls Like Me, which profiles a 23-year-old Afghan woman who goes on national television to expose sexual abuse by her father, after being ignored by her family and the police.

Ciarrocchi tracked down Mani, who said that she had already begun a project, following three women in the country as they tried to establish some kind of autonomy in the months following the Taliban takeover, as girls and women were barred from universities and schools.

Mani filmed using covert cameras, and even asked the women to film themselves at safehouses with their friends and families.

Another sequence captures a secret meeting in a windowless basement, off a side street in Kabul. More than a dozen women sit in rows of desks and chairs, arranged like a makeshift classroom. Steam rises from the drinks in their plastic cups.

They do not know each other, but all are from different groups who protested after the Taliban retook Afghanistan in August 2021.

One of the women, a dentist called Zahra, has led the viewer to this secret meeting. When she speaks to the group, she reminisces about wearing high heels and perfume and going to the park with her friends. The women around her smile.

Then a writer named Vahideh starts speaking.

“Women must write their own history,” Vahideh says passionately to the group, to murmurs of agreement. “Women are not properly celebrated around the world.”

Mani was well aware of the challenges of filming in such private and dangerous situations.

“I understand how to deal with difficulties because I am one of them.

“They are not victims,” she says, “they are heroes.”

But getting the balance right between keeping the women safe and telling their story was not easy. She tells the BBC that there were several late-night conversations between her, Ciarrocchi and Lawrence during the production process.

“They were there whenever I faced any issues or problems,” Mani says. “When women unite, everything is possible.”

A woman in a veil holds her hand to her forehead, looking upset.

Sami Murtaza

With Mani and the other women featured now all out of the country, the producers felt comfortable submitting Bread and Roses for wider distribution, starting at Cannes.

Ciarrocchi and Lawrence say their next challenge is to get the film in front of a large audience – not always easy when the story is a snapshot of an ongoing and devastating conflict.

“There’s not an end to this story,” says Lawrence, “and you feel pretty much helpless when thinking about how to do anything about it. It’s a hard thing to market.”

As women executive producers, Ciarrocchi and Lawrence are still in the minority in Hollywood. A 2022 study from the Center for the Study of Women in Television and Film showed that women comprised only 24% of directors, writers and producers in the top-grossing films, a decrease from 2021.

“I think there’s a long, long way to go, but I do feel inspired and positive by the end product when you have more diversity in filmmaking,” says Lawrence. “It’s what people want. The audiences want it.”

Ciarrocchi adds: “That’s why we take the responsibility of Jen’s platform so seriously as a woman who’s giving opportunities to other women… to employ women, to tell women’s stories, to always employ a diverse body of people.”

“That’s also because I am a woman,” replies Lawrence.

“I’m lucky enough to not have the biased idea that women aren’t as good at things!”

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Exchanging views on crypto: Exclusive interview with Coinhako’s co-founder and CEO, Yusho Liu | cryptocurrency, crypto, coinhako, founder, exclusive interview, yusho liu, singapore, digital assets | FinanceAsia

From the fallout of FTX in November 2022, to the collapse of Silicon Valley Bank (SVB) and other US lenders associated with start-up clients, the last few months have been challenging for the crypto industry.

Singapore-based cryptocurrency exchange, Coinhako, however, remains optimistic in terms of its industry outlook as sector participants focus on “rebuilding trust and faith” across the digital asset universe.

Coinhako was conceptualised in 2014 and started off as a bitcoin wallet service for Singaporeans. Today, it is a multi-currency trading platform for cryptocurrencies and is licensed, regulated and headquartered in the city-state.

Receiving its Major Payment Institution licence from the Monetary Authority of Singapore (MAS) in May 2022, the firm is one of nine financial institutions in the market permitted to provide Digital Payment Token (DPT) services.

Confident about Singapore’s future as a Web3 hub, its team wants to play a part in growing the market’s ecosystem. To do so, the company founders recently launched Berru.co, a separate entity that seeks to support Web3 start-ups as they navigate setting up in the city.

In this interview, Coinhako’s co-founder and CEO, Yusho Liu speaks to FinanceAsia about the challenges faced by the crypto industry; the future of Singapore as a digital asset hub; and where exactly the company has its sights set on next.

Excerpts from the interview have been edited for clarity and brevity.

FA: What’s your take on the cryptocurrency market and what developments are you focussed on?

2023 is the year of reset. With the developments of the last few months and bad actors bringing the industry back several steps, we need to rebuild trust and faith in the sector.

Beyond this, we are seeing more regulatory clarity from the likes of the Hong Kong and EU authorities, which paves the way for Asia and Europe to lead when it comes to innovation in the space.

Given that Washington’s current regulatory environment is less hospitable – coupled with the issues faced by the wider US tech industry, it will be challenging for innovation to emerge from the market.

FA: Was Coinhako exposed to any of the US banks that recently collapsed?

We had zero exposure to Silvergate and SVB. We did have some exposure to Signature Bank, but no money parked there. The collapse of these banks has affected many companies but thankfully, our strongest banking relationships are based in Asia.

FA: Is Coinhako looking to raise funds to expand further? How do you view the fundraising environment?

Overall, global and regional venture capital (VC) firms have poured record amounts of money into Southeast Asian technology companies because they consider them to be at the next frontier of growth and these countries have shown very high rates of adoption and interest in digital assets. They have focussed less on companies based in more mature, traditional markets, such as the US, Europe, China, South Korea or Japan.

However, it is currently a challenging climate and investments into crypto start-ups or in the broader technology space have slowed down. While we are continuing conversations with investors, we do not think this is the right timing or environment in which to be actively fundraising.

FA: Do you have any expansion plans?

We do have plans to expand, but this year our focus is on embedding deeper into Singapore, because we think the city-state is going to be a relevant crypto hub, regardless of what the rest of the world is doing.

We see a lot of Web3 founders building a nexus in the market. There is an influx of start-ups looking to establish their presence in Singapore and we’ve set up a separate, professional advisory entity, Berru.co, to support them. Since inception this year, we’ve connected with 10 or more clients and hope to grow this multi-fold further down the road.

Drawing on Coinhako’s experience since entering the market in 2014, we want to help founders navigate the crypto landscape. We’ve done the legwork and we know what works and what doesn’t – whether that be related to finance, accounting, tax or legal considerations. This is in line with Singapore’s status as a hub, and as such, we want to make sure that companies can develop easily. A bad user experience would likely make these founders consider going elsewhere.

FA: Where else in Asia do you see opportunity?

We are watching developments in Hong Kong, with the government having recently come up with a crypto framework to foster growth in the industry. But Hong Kong is just one of the markets we’re looking at for expansion, alongside other countries in Southeast Asian and the broader Asia region.

Coinhako has a domicile-registered licence in Singapore and the beauty of being based here, is that we can use it as a centre from which to reach the rest of the region.

FA: What’s your view on Singapore’s future as a crypto hub, given that many peers have relocated to Dubai?

I’ve always said that time will tell the story.

Dubai was a hot spot when its authorities announced updated licensing frameworks. But I think that, to date, we haven’t really seen or heard much about crypto exchanges moving to the market, except for Bybit, that is trying to establish global headquarters there.

The reality is that Dubai is a regional hub for the Middle East and North Africa (MENA), but if you’re trying to establish a global or Asian base, Singapore might be more suitable.

FA: Is Dubai perceived to be friendlier from a regulatory perspective, compared to Singapore?

I think it’s important to differentiate between what people say, versus what people do.

From our perspective, we don’t see many licensed entities going to Dubai, but we’re seeing unlicensed entities go there to try to obtain a licence.

FA: How optimistic are you about the growth of the Web3 and crypto industries in Asia?

We remain optimistic about the growth of the Web3 sector, in general. Yes, the industry is volatile, but most nascent industries are.

Of course, where money is involved, so too will there be bad actors. And indeed, we are seeing more overlap between the tech and finance industries.

However, as long as builders continue to come in to develop purposeful technology and applications – and good people enter the space, we remain positive.
 

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