Podcast with Crypto Hipster
On 30th November, our Head of Compliance, Mohd Kifa, joined Jamil Hasan on his podcast, Crypto Hipster, which explores blockchains and crypto insights from around the globe.
Their conversation focused on optimizing the crypto trading experience with perpetual futures for Bitcoin, Altcoins, and Meme coins.
If you haven’t had a chance to listen, we’ve prepared a TL;DR with key pointers of their discussion for you to read.
TL;DR
Flipster’s positioning and challenges faced
Outlook about Perpetual Futures Tradings and how can retail users get involved
How can we prevent market manipulation
Where the industry is headed in 2025
If you’ll like a more in-depth coverage, read on to find out more.
______ Question: What is your background and is it a logical background for what you’re doing now?
Kifa: I started my career as a Senior Investigation Officer with the police force, specifically with the Financial Intelligence Unit. That’s where I learned everything about compliance, financial crime, and related areas. From there, I transitioned to traditional finance, working with several banks, before taking a leap of faith into the crypto industry.
My first role in crypto was as Chief Compliance Officer at Bitstamp, where we worked to secure a license from the Monetary Authority of Singapore (MAS). After achieving that milestone, I joined Flipster, where I’m striving to accomplish something similar for them.
I’ll leave it to you to decide whether my background is logical for this industry based on this journey.
Question: What is Flipster all about including your mission and vision and your goal there?
Kifa: Flipster is a cryptocurrency trading platform. What sets this company apart, is its fast-paced growth. Compared to other exchanges in the industry, Flipster stands out as a platform that is rapidly expanding its capabilities.
It is striving to exceed expectations in terms of trading volume, operational scale, liquidity offerings, rapid trade executions, and delivering a seamless trading experience. These elements make Flipster a unique player in the cryptocurrency industry.
Since its founding in 2021, Flipster achieved $20B trading volume with millions of monthly users. This level of success within just two years is truly significant.
Looking to the future, I believe Flipster is focused on pursuing a regulatory-compliant pathway. The company is actively exploring new jurisdictions to operate under proper licensing and registration frameworks. This commitment to compliance is a priority for the founders and management team, and I’m thrilled to be part of this journey. With my experience, I’m confident I can contribute to achieving these goals and help Flipster continue to grow.
Question: What are some of the challenges that Flipster has faced? Why is it a challenge?
Kifa: For a long time, we were focused on operating under a single license or registration. However, that approach is no longer sufficient—not just for Flipster, but for any exchange aiming to expand globally. To reach markets in Europe, Asia, and the Americas, it’s essential to establish a foothold in those regions, and that starts with obtaining proper licensing and registration.
By securing these licenses, you not only meet regulatory requirements but also build trust with your users. This trust naturally leads to more people signing up with your cryptocurrency exchange. This is precisely the strategy Flipster is pursuing right now.
Our goal is to do things the right way—compliantly, transparently, and within a regulated framework. We want to establish trusted, long-lasting relationships with our clients. While we still have a few markets—about 20-30 countries—where we are yet to obtain licenses, we are confident that, sooner or later, we’ll secure them and continue to grow.
Question: How can Perpetual Futures Trading be leveraged to navigate market volatility generally then I’ll ask you more about today’s market environment.
Kifa: Perpetual futures, or futures contracts, are not a new concept—they have been a part of the traditional finance (TradFi) landscape for a long time. This concept has now been adapted to the crypto industry.
The primary difference between perpetual futures in traditional finance and crypto lies in the volatility of the market. In crypto, prices can fluctuate within milliseconds. For example, Bitcoin recently made headlines with another significant price movement. This volatility, combined with the lack of intrinsic value behind cryptocurrencies, often raises questions about the legitimacy of perpetual or futures contracts, the risks involved, and how they work.
Despite these differences, the fundamentals and principles remain the same. Profits are based on price movements and speculation on market directions, both upward and downward. For instance, even if Bitcoin's price drops, you can still potentially profit by taking the right long or short positions.
However, trading in the crypto market requires more diligence and awareness. Price movements are influenced by various factors, including global news and regulatory changes. For example, if Hong Kong announces new crypto regulations tomorrow, it could immediately impact the market. Staying informed and agile is critical to seizing opportunities or avoiding significant losses.
In my view, successful trading in the crypto space, especially with perpetual futures, is about being an agile and savvy investor. It’s crucial to understand what you’re doing, stay updated on market dynamics, and be prepared to adapt quickly to changes. This is the mindset needed to navigate and succeed in this fast-paced market.
Question: How can retail traders get involved in perpetual if they don’t know what they are buying?
Kifa: Regulators and compliance departments frequently express a desire to get rid of them, yet it’s impossible to ignore their significance. Meme coins, in a way, serve as the lifeblood of the crypto industry. While Bitcoin, Ethereum, Solana, and other established cryptocurrencies dominate the market, meme coins have carved out an undeniable niche. Without them, the industry wouldn’t be the same—it’s a fact. However, navigating this space requires caution and awareness.
Investing in meme coins, like any other asset, comes down to fundamentals. You must know what you’re buying. Only then can you make an informed decision about whether to invest
Understand that success in trading doesn’t happen overnight—it’s not a one-day magic trick where you start trading today and become a millionaire tomorrow. The market requires time, effort, and a lot of patience.
You also need to be prepared for losses. Trading comes with risks, and it’s important to build the resilience to handle them confidently. Don’t let setbacks spiral into panic or rash decisions. Instead, focus on developing a long-term strategy. Success in this market is a marathon, not a sprint.
Lastly, always diversify. Don’t put all your eggs in one basket. If you’re investing in meme coins, balance your portfolio with more stable assets like Bitcoin or Ethereum to offset potential losses. This approach ensures you remain grounded while pursuing opportunities in this dynamic industry.
Question: There is something that happened over the weekend - a pumped-up fund. What happened and how can we prevent that from happening again?
Kifa: This is something we actively address at Flipster, thanks to our highly capable financial engineering team. We’re fortunate to have robust systems and processes in place, which allow us to monitor and respond to market movements and detect potential market manipulation effectively.
For an exchange like ours, it’s crucial to have both automated and manual processes to identify and address market manipulation as it happens. When we detect unusual market activity, we act immediately to investigate the cause, analyze the situation, and understand what’s happening in the background.
At Flipster, we’re proud of our solid framework. Over the past couple of years, we’ve addressed several incidents, continuously learning and improving to enhance our detection and response capabilities.
For retail users, my advice is simple: if something seems too good to be true, it probably is. Don’t be swayed by sudden price spikes or hype around a meme coin. Stay informed, do your own research, and make calculated decisions.
Question: What are some of the trends you are looking at right now, regionally and in Asia that would impact headed into 2025? What is the appetite like where do you see things headed?
Kifa: For a long time, there has been ongoing debate about digital assets—whether they should be considered an asset or a mode of payment. This issue persists, as illustrated by the example of using Bitcoin to buy coffee. Today, one Bitcoin might be worth $1, but tomorrow it could be worth $100. How does that value equate to the coffee purchased the previous day?
Over the past few years, significant progress has been made toward providing clarity on this issue. Many jurisdictions are starting to distinguish between virtual currencies as a mode of payment and as an asset for trading and speculative purposes.
From a regulatory perspective, there is now a greater focus on defining how tokens should be accessed, assessed, and listed. Additionally, regulations around controls to prevent market manipulation are being strongly adopted. Singapore and Hong Kong, in particular, are drafting comprehensive regulations, and these frameworks are expected to be implemented soon.
Another key area of focus is stablecoin regulation. Both Singapore and Hong Kong are taking steps to introduce regulations specifically targeting stablecoins. Singapore has already made significant progress by legislating stablecoin use, establishing it as a mode of transfer or payment rather than an asset for speculative purposes. This clarity is driving partnerships among crypto exchanges, with many seeking to offer MAS-regulated stablecoins for cross-border payments and online purchases.
Beyond stablecoins, the tokenization of assets is also gaining attention, although it remains in its early stages. In my opinion, much work still needs to be done to develop clear regulations in this space.
These are the key regulatory trends shaping the digital asset industry at the moment. With ongoing advancements, the industry is moving closer to achieving the necessary structure and oversight to ensure sustainable growth.
Question: There have been some movements in South Korea as well, what is their outlook?
Kifa: I think South Korea is an interesting market, although I’ll admit I don’t focus on it as much. However, I know that South Korea, like the rest of Asia, is making significant progress in the crypto space. They are known for their strict and clear regulations, especially concerning investor protection and consumer rights.
South Korea’s regulators seem determined to ensure that the licensed exchanges operating in their jurisdiction have the proper authority to function smoothly. These exchanges are expected to protect their clients and provide reliable services, particularly to South Korean users. This has always been a priority for South Korea and its regulators, reflecting their commitment to safeguarding their citizens' funds and preventing issues with unregulated or risky exchanges.
This approach isn’t unique to South Korea. Across Asia, countries are recognizing the importance of implementing robust regulations. For instance, many jurisdictions now require crypto exchanges to disclose vital information to their clients, such as Proof of Reserves, the location of hot and cold wallets, and the ratio between the two.
From an exchange perspective, I believe these restrictive regulations are healthy. They help prevent misconduct and ensure that operations are aligned with best practices. I’m pleased to see such regulatory developments across Asia, with the region leading the way in implementing these frameworks. It’s a positive step forward for the industry as a whole.
Question: What are you seeing coming out of China that no one is talking about that is going to have a huge impact on the market?
Kifa: For a very long time, China largely shielded itself from the cryptocurrency industry, portraying it as a negative force associated with money laundering and other illicit activities. However, it is now waking up to the reality that it cannot ignore cryptocurrencies. I think most would agree that cryptocurrencies, whether Bitcoin or others, are here to stay. The key is ensuring that the regulations surrounding them are clear so that users and citizens are not at a disadvantage.
In my opinion, China has taken a wait-and-see approach for quite some time. It has observed how countries like Singapore, Hong Kong, and other Asian nations have shaped their regulations. Similarly, it has studied how Europe and the United States have approached cryptocurrency regulation. After taking the time to analyze and understand what should and should not be allowed, China now seems to be delivering a clearer message.
Had China dabbled inconsistently, frequently changing its regulations, it would have sent a distorted message to its 1.1 billion citizens, potentially causing significant confusion and chaos. Instead, by carefully planning its approach, China is positioning itself with a clear perspective on digital assets. This direction is significant not only for its citizens but also for the global industry, given the massive population and potential market in China that could capitalize on what’s to come.
Question: What’s the outlook for 2025?
Kifa: The adoption of blockchain technology is only going to become more widespread. Traditional banks are now embracing blockchain—not just for cryptocurrency but also for setting up decentralized accounting and ledger systems. They are increasingly moving toward decentralized protocols to enhance their operations.
Blockchain isn’t limited to banks or cryptocurrencies; it is becoming a fundamental component across industries. It’s something that cannot simply be erased from the ecosystem, and because of this, it will become increasingly prevalent.
What we are seeing now is the infancy stage, where many are experimenting with blockchain technology. Some initiatives fail, while others achieve significant success. In my view, within the next two years, blockchain will become mainstream across industries—not just in finance or cryptocurrency but in virtually every sector.
For those unfamiliar with blockchain or how to engage with it, this is quickly changing. Everyone will need to learn how to use and benefit from this ecosystem. When I first started working with blockchain technology as part of an exchange, I wondered how people could collaborate and reach consensus across the globe. But it’s a reality now, and the system’s immutability and reliability have proven its potential. This isn’t limited to finance; it’s a model other industries will adopt.
As for meme coins, I believe they may not have long-term viability. Without proper regulatory frameworks and clarity around how tokens are accessed and listed, meme coins might fade out over time. Projects that don’t want to be labeled as meme coins will need to elevate their standards, focusing on structure, utility, and value for their users. Otherwise, people will view these tokens merely as speculative tools for quick profits rather than long-term investments. This is a pivotal moment for the industry, and proper regulation will be crucial for its evolution.
Question: How can people find more information about Flipster?
Kifa: We are available on all app stores and online at Flipster.io. Simply download the app and sign up from anywhere in the world—it’s that easy to access our platform. For more information about what we do, follow us on LinkedIn, Instagram, and X.
You can listen to the podcast on Spotify, Apple Music or Listen Notes.