Leading Chinese gaming company lines up $100M crypto investment

3D Avatar Platform GoodGang Labs Joins Finschia as Joint Mainnet OperatorGoodGang Labs, a Singapore-based metaverse platform developer, is set to become a joint operator of the public blockchain mainnet Finschia, as reported by South Korean news agency Yonhap.The Finschia mainnet was launched by Line Tech Plus, a blockchain business subsidiary of Tokyo-based messaging app developer Line Corporation. It has been operated by the Finschia Foundations, a non-profit organization established in March in Abu Dhabi, United Arab Emirates.Photo by GuerrillaBuzz on UnsplashAdvancing Finschia’s governanceGoodGang Labs’ participation as a joint operator of the mainnet came as part of the Finschia Foundation’s establishment of a new consortium to advance its governance structure. Along with GoodGang Labs, many esteemed companies have joined as governance members to collaborate on operating the mainnet. These companies include Japanese telecom giant SoftBank, NFT platform operator LINE NEXT, blockchain infra-service provider A41, crypto firm AhnLab Blockchain Company, CeDeFi protocol Neopin, quantitative trading firm Presto Labs, and GameFi-oriented platform MARBLEX.GoodGang Labs specializes in developing technology that utilizes artificial intelligence (AI) to translate users’ facial expressions and behaviors into real-time 3D avatars. Leveraging this technology, the company is currently piloting Kiki Town, a 3D avatar communication platform.Finschia-based NFT projectsWith its involvement in Finschia, GoodGang Labs will allow various Finschia-based NFT projects to have access to the company’s services including the Kiki Town platform. FNSA, the base coin of the Finschia ecosystem, is currently listed on cryptocurrency exchanges Bithumb, Bittrex, Huobi, and Gate.io, according to crypto data tracking website CoinMarketCap.Ahn Doo-kyung, Co-Founder and CEO of GoodGang Labs, said that this partnership demonstrates the company’s capabilities during times of limited investment opportunities. He stated that GoodGang Labs will showcase a profit-generating platform that enables users to express their emotions through avatars and share their knowledge and experiences.The members of GoodGang Labs have acquired their tech expertise from notable entities such as SNOW, a subsidiary of South Korean tech behemoth Naver, and Meta, the parent company of Facebook. The company has received investments from Naver D2 Startup Factory, a startup accelerator; Naver Z, the operator of metaverse platform Zepeto; and Kakao Investment, the venture capital subsidiary of another Korean tech giant, Kakao.

Indonesia witnessed a striking decline in cryptocurrency tax revenue for the year 2023, according to local media. 63% decreaseA report by Indonesian business and financial publication Kontan detailed a tax take drop to $31.7 million (Indonesian rupiah 467.27 billion). That tax collection is in sharp contrast to the partial collection period in 2022 when the crypto tax regime was initially introduced. It represents a drop of around 63%. The decline is part of a broader tax reform targeting the "digital economy" implemented in 2022, with the Indonesian government expressing the expectation that the reform would enhance tax collection, fostering a "healthy and fair taxation system."Photo by Nick Agus Arya on UnsplashDeclining transaction volumesDespite bitcoin's impressive surge of approximately 160% throughout 2023, the dip in crypto tax revenue was notable. The decrease is closely tied to a drop in transaction volumes over the same period compared to 2022. A report by CoinDesk Indonesia last week put that trading volume decrease at around 60%. Crypto transactions in Indonesia face dual taxation – a 0.1% income tax and a 0.11% value-added tax (VAT). Additionally, local crypto exchanges are subject to a special tax of approximately 0.04%, contributing to the national digital asset bourse. Disadvantaging local exchangesLocal exchanges in Indonesia, including prominent ones like Indodax, have voiced discontent with the high tax rates, contending that these levies are driving users towards unregulated offshore exchanges. Earlier this month Indodax CEO Oscar Darmawan called on the Indonesian government to review crypto tax rates. Darmawan highlighted that the cumulative taxes on crypto transactions often surpass the trading fees paid by users, posing a risk of users seeking more cost-effective alternatives. Local exchanges suggest that crypto transactions should only be subject to income tax, eliminating the VAT component. This proposal comes as Indonesia's Financial Services Authority (OJK) prepares to implement cryptocurrency regulations in early 2025. The aim is to align the taxation of cryptocurrencies with their market nature, possibly redefining them more as securities than commodities. Inadequate tax regulation can lead to a decline in local market activities, potentially resulting in capital flight to more favorable jurisdictions. Indonesia's situation serves as a reminder of the crucial need for policies that understand and adapt to the dynamic nature of the cryptocurrency sector. India is being similarly challenged. Local exchanges there have also complained of punitive taxation, which resulted in Indian users migrating to offshore exchanges. That scenario led indigenous exchanges to lobby the government to take action. The authorities have duly acted, flagging a number of global exchanges for operating illegally within India. It’s not all bad news for the development of digital assets within Indonesia. The country still ranks highly in terms of crypto adoption within the Asian region. Crypto was also floated as an election issue recently by Gibran Rakabuming Raka, a vice-presidential candidate in the upcoming election. The politician expressed his commitment to accelerating the country's position as a leader in the digital revolution. 

WEMIX Listed on Crypto Exchange CoinDCX, Strengthening Presence in IndiaWEMIX, the utility coin of blockchain game platform WEMIX Play, has now been listed on India-based cryptocurrency exchange CoinDCX, according to a press release. WEMIX Play is operated by South Korean gaming company Wemade.Photo by Naveed Ahmed on UnsplashWEMIX/USDT & WEMIX/INREstablished in 2018, CoinDCX earned unicorn status two years ago, becoming the first Indian crypto exchange to accomplish this feat. With a current valuation of approximately $2.5 billion, CoinDCX offers trading support for over 80 cryptocurrencies and provides decentralized financial (DeFi) services to a customer base of 15 million global users. CoinDCX users can trade WEMIX against USDT and INR, where USDT stands for a stablecoin issued by crypto giant Tether and INR for Indian Rupee.WEMIX made its debut on the Indian market in February through its listing on Bitbns, another cryptocurrency exchange. The token’s addition to another trading platform in India indicates the growing presence of the WEMIX ecosystem in the region.India’s Web3 landscapeIndia is a prominent market for non-fungible tokens (NFTs) and blockchain technology. As of April, investments in the Indian Web3 ecosystem had reached $1.3 billion. The country also boasts the world’s third-largest talent pool for Web3 development. Currently, more than 450 Indian startups are making their mark on the global stage, demonstrating expertise in DeFi services, gaming, NFTs, and metaverses.Looking ahead, WEMIX aims to further expand its reach by pursuing listings on additional crypto exchanges. This strategy will enable gamers worldwide to trade the WEMIX token with their respective fiat currencies.