SEC seeks summary judgment against Terraform Labs

Nano Labs, a Web3-focused semiconductor design company listed on the Nasdaq (NA) and headquartered in Hangzhou, China, has arranged $500 million in financing to fund a BNB treasury. In a press release published on the company’s behalf by GlobeNewswire on June 24, Nano Labs outlined that it has entered into a convertible notes purchase agreement with a number of investors. Convertible promissory notes to the value of $500 million will be issued. Holders of the notes, which mature in 360 days, have the option to convert them to Class A ordinary shares at an initial conversion price of $20 per share. Unconverted notes will not accrue interest, but will be repaid in line with the initial principal amount at maturity. 5%-10% of BNB’s total supplyNano Labs asserted that the agreement “marks an important step in the company’s strategic growth.” It stated that as part of the initiative it plans to conduct an in-depth assessment of the BNB token, the native token of the BNB Chain ecosystem. The token enables transactions on the BNB Chain and access to various services and decentralized applications (DApps) that run on the blockchain network. In the initial phase of the initiative, Nano Labs plans to acquire $1 billion worth of BNB through convertible notes and private placements. In the long term, the firm plans to build up a holding equal to 5% to 10% of BNB’s total circulating supply. On X, @Whdysseus, the pseudonymous founder of Asian Web3 and crypto financial media project BroadChain Finance, commented on Nano Labs' BNB reserve initiative, considering it to be a BNB version of the Bitcoin treasury strategy pioneered by American firm Strategy (formerly MicroStrategy).Photo by Vadim Artyukhin on UnsplashShare price surgeChangpeng Zhao (CZ), the co-founder and former CEO of Binance, who has been heavily involved in the development and overall vision of BNB Chain, outlined on X that Nano Labs’ share price “went through the roof” following the announcement. He added that none of his affiliated entities participated in the funding that Nano Labs has put in place. At the time of writing, Nano Labs stock (NA) was trading at $14.85, up 36.36% over the course of 24 hours. Nano Labs isn’t the only corporate entity to declare an interest in holding BNB. According to a report published by Bloomberg on June 23, former executives at Coral Capital, a Japanese venture capital firm, are understood to be in the process of raising $100 million through a newly formed entity called Build & Build Corporation, in order to launch a crypto treasury that will invest in BNB. In another positive development, on-chain analytics firm Nansen highlighted last month that the BNB Chain had seen active addresses double to two million.  Earlier in May, Geoff Kendrick, head of digital asset research at Standard Chartered, outlined in a research report that the BNB token could reach a unit price of $2,775 by 2028. Kendrick maintained that the deflationary nature of the token, together with its ties to the Binance exchange platform, are factors that support its long-term value.

Ripple Collaborates with Hong Kong Regulator in RWA TokenizationIn a demonstration of an extended use case, Ripple, the real-time gross settlement system, currency exchange, and remittance network, has announced that it has been selected by the Hong Kong Monetary Authority (HKMA) to showcase a real world asset (RWA) tokenization solution.Photo by Redd F on UnsplashReal world asset (RWA) tokenizationIn a press release published on Thursday, the San Francisco-based firm outlined that the objective of its participation in the HKMAs inaugural e-HKD Pilot Program is to showcase a particular approach to real estate tokenization. In principle the e-HKD project is a central bank digital currency (CBDC) scheme.Ripple is one of sixteen firms that will participate in the program. Among the other participants are HSBC, one of the largest banking and financial services institutions in the world, British multinational bank Standard Chartered, and Bank of China (Hong Kong).For its part, Ripple will partner with Fubon Bank, a subsidiary of one of the largest financial holding companies in Taiwan. The e-HKD Pilot Program will feature a series of pilots conducted through several industry players with a view towards carrying out in-depth research into application, implementation, and design issues relative to the e-HKD.Real estate tokenization is a leading example of RWA tokenization, which overall is anticipated to become a multi-trillion dollar industry by the end of this decade. Its plan is to build the solution on a private and secure ledger, guided in principle by the same technology that the company has utilized for XRP, the native token of the Ripple ecosystem.Illiquid assetsThe company points out that people’s homes are usually one of their primary assets. Notwithstanding that, unlocking value in real estate can be problematic, having considerable friction. The idea is that this illiquid wealth can be unlocked through tokenization. It’s a concept that is seeing a lot of interest from competing projects. Start-ups like Securitize and Provenance Blockchain would be among a long list of start-up firms that see the potential in the tokenization of RWAs.In Asia, Japanese trading and investment firm Mitsui has gotten involved in the tokenization of real estate through its Alterna investment platform. Tokeny and CoFund offer other examples of innovators that are pioneering real estate tokenization.In its press release, Ripple outlined that it aims to use its technology in this particular instance to enable Hong Kong citizens to experience the faster and more efficient release of equity relative to real estate.James Wallis, Ripple’s VP of Central Bank Engagements & CBDCs, expanded on this idea further:“The Asia Pacific region has many forward-looking regulators such as the HKMA, who are looking to leverage the capabilities of blockchain and crypto technology. It’s a huge honor for Ripple to be one of the select few organizations participating in the HKMA’s e-HKD Pilot Programme. We now have the opportunity to demonstrate how real estate asset tokenization could be brought to the citizens of Hong Kong, and are confident that our fully integrated solution will be an industry-first use case demonstrating the power of leveraging a CBDC for real estate equity asset release.”

In a move aimed at boosting the Web3 sector, the adoption of investment tokens and the enhancement of startup financing, the Thai government recently approved a tax break for individuals holding such tokens.Photo by Nataliya Vaitkevich on PexelsIncentivizing crypto-based fundraisingThe decision, reported by local media as having been made on March 12, signifies a significant step towards incentivizing the use of investment tokens for fundraising purposes. Under the new regulations, capital gains derived from holding investment tokens will be exempt from personal income tax calculations. This exemption applies even if a 15% withholding tax had previously been deducted. The endorsement of this tax break by Thailand's cabinet underscores the government's interest in fostering economic growth and enhancing investment opportunities in the region. Kulaya Tantitemit, Director-General of Thailand's Revenue Department, emphasized the strategic importance of these tax measures, which have been made retrospectively effective from Jan. 1. The initiative is expected to stimulate fundraising activities through investment tokens, injecting vitality into the economy and paving the way for increased investment and job creation. However, it's worth noting that the tax break will only apply to individuals who refrain from seeking full or partial refunds of the deducted tax or claiming a deducted tax credit. Additionally, the government has extended tax incentives to investment token issuers, waiving corporate income tax as announced on March 7.Last month, the Thai Finance Ministry announced the exemption of digital asset trading activity from value-added tax (VAT). The VAT exemption is similarly designed to encourage the use of digital assets as an alternative fundraising mechanism. Potential $3.7B boostDeputy Government Spokesman Rachada Dhnadirek highlighted the significance of this move in diversifying fundraising avenues for firms, complementing traditional methods. The government anticipates that investment tokens will contribute approximately $3.7 billion to the economy over the next two years. While the recent tax break signals a positive step towards fostering a crypto-friendly environment in Thailand, the country's approach to crypto taxation has faced scrutiny from industry stakeholders in the past. Efforts by the Thai Revenue Department to tighten oversight and impose taxes on cryptocurrency trading were met with resistance from industry players concerned about the potential stifling effect on the sector's growth. In January 2022, the government's proposal to impose a 15% capital gains tax on crypto traders drew significant public backlash, leading to its suspension on Feb. 1 of the same year. Despite these challenges, Thailand has demonstrated a willingness to adapt its regulatory framework to accommodate the burgeoning crypto industry. Measures such as exempting traders on authorized exchanges from a 7% value-added tax (VAT) on crypto transactions, announced on March 8, 2022, underscore the government's efforts to create a conducive environment for crypto-related activities. The political backdrop in Thailand more recently is likely to be aiding the country in taking a more progressive stance where crypto is concerned. Last year, the country elected Srettha Thavisin as Prime Minister. In a prior role as CEO of real estate developer Sansiri, Thavisin oversaw the company’s involvement in digital asset-related activities. In January, Thailand’s Securities and Exchange Commission (SEC) removed the investment ceiling imposed on retail investors relative to participation in initial coin offerings (ICOs).