Avalanche Blockchain Developer Expands into India

NATIX Network, an open geospatial intelligence network built upon proprietary AI technology, has partnered with Southeast Asian superapp Grab to collaborate on autonomous driving technology and mapping. NATIX is a decentralized physical infrastructure network (DePIN) project that exists within the Solana ecosystem. Singapore-headquartered Grab offers a broad range of services via its app, including ride-hailing, package delivery and food delivery. Additionally, the firm offers mobile payments and insurance products.Photo by Afif Ramdhasuma on UnsplashReshaping the mapping industryIn a blog post published to its website on May 6, NATIX outlined that the strategic partnership has been formed with a view towards reshaping the mapping industry. It explained that the objective in this regard would be to combine Grab’s camera hardware and its AI-based map-making software stack with NATIX’s decentralized blockchain-powered mapping data.  Due to the nature of the services that it has offered in Southeast Asia since it was founded in 2012, Grab has, through necessity, become involved in mapping to enhance its service delivery. As a consequence, it has developed a suite of cameras including its KartaCam, a small action camera which can be mounted on bike helmets or car windshields, and a 360-degree standalone camera, KartaCam 2, with built-in sensors, AI image optimization and GPS capabilities. ‘Internet of Cameras’For its part, NATIX claims to have built the world’s largest on-street camera network. As part of the collaboration, NATIX will use Grab’s hardware and software technology to expand its “Internet of Cameras.” Posting on LinkedIn, GrabMaps set out its thoughts on the partnership, stating:”By combining GrabMaps' AI-powered mapping technology with NATIX's decentralised data network, we're enabling real-time, high-fidelity map updates across the globe. As part of this collaboration, NATIX will launch VX360, a device built on Grab's hardware platform that allows Tesla drivers to collect and share 360° vehicle imagery.” Appearing on the Unleashing DePIN podcast recently, NATIX Co-Founder and CEO Alireza Ghods outlined that NATIX will launch VX360, a proprietary device built by leveraging Grab’s existing hardware. He explained that this collaboration saves NATIX in terms of overall project cost and months of R&D, all of which enables it to get to market faster.VX360 enables Tesla drivers to capture and share 360-degree imagery.  Future potentialGhods spoke to the additional future potential that the collaboration holds: “The interesting part is that they have other types of devices as well, they have a dashcam, a 360 camera, and our plan is to definitely integrate all of this into our map making and data collection pipeline.” This is not the first partnership that GrabMaps has established related to mapping. Previously it formed collaborations with Microsoft’s Bing Maps, navigation and mapping app Mappls and location data specialist Loqate.  Ghods believes that NATIX can go one better than centralized mapping projects like TomTom and Google Street View. He told Cointelegraph that “a blockchain-based incentivization system provides better results in terms of frequency, participation, and coverage.” The NATIX co-founder asserted that such data can be gathered at a fraction of the cost via users’ devices.

Hong Kong’s Largest Bank in Lackluster Crypto EmbraceFor all of its pro-crypto initiatives Hong Kong has been struggling with banking crypto companies. A recent report from the Hong Kong Economic Journal cited Lin Yansheng, Director of Commercial Banking at Hang Seng Bank, Hong Kong’s largest local bank, in outlining that the bank will accommodate crypto but that support is conditional.Photo by Florian Wehde on UnsplashCrypto in a high rates environmentYansheng shared his insights on interest rates, stating that he believes that interest rates will rise but reassures that any increase will be temporary in nature.The Commercial Banking Director acknowledged that Hong Kong’s current high-interest rates, in contrast to those of mainland China and neighboring regions, have caused a slowdown in the overall demand for bank loans. He predicts that loan growth will face pressure this year. However, he also offers a glimmer of hope, stating that a reduction in interest rates may not be far off. He suggests that next year’s expected interest rate cuts could lead to an improvement in loan growth.Data published recently by the Hong Kong Monetary Authority (HKMA) shows that annualized loan growth has been negative since May. It currently stands at -1.1%. Yansheng explained that as borrowing rates decrease in mainland China, Hong Kong’s banking industry is experiencing a downturn in loan growth. The high Hong Kong dollar interbank offered rate (HIBOR) currently limits the volume of corporate borrowing.The rising concerns over interest rates have prompted Hang Seng Bank to acknowledge the importance of cryptocurrencies.Unconvincing crypto embraceThe bank recently outlined the regulatory framework for virtual asset businesses seeking to operate within its purview. To open standard banking accounts, these businesses must obtain an Approval-in-Principle (AIP) license from the Securities Regulatory Commission (SRC), as per the bank’s announcement.The first issue is that obtaining an AIP license has proven to be incredibly difficult. Currently, only OSL and HashKey, two virtual asset trading platforms, have managed to obtain the required clearance. Hang Seng Bank acknowledges that it hasn’t received many inquiries about crypto-banking, attributing it to that challenging process of obtaining AIP certification. Meeting the demanding requirements for such permission poses a significant hurdle for most businesses.Getting beyond this obstacle, Yansheng clarified that even then crypto companies will only be able to obtain a “simple” bank account. He didn’t clarify what services would be excluded but Hang Seng’s embrace of crypto-related business sounds very much like it’s lacking in conviction.Both the China Securities Regulatory Commission and the Hong Kong Monetary Authority have conducted roundtable meetings to address the difficulties faced by virtual asset businesses. Yansheng reiterated Hang Seng’s commitment to complying with the regulators’ instructions and accommodating these companies. However, it’s clear that difficulties remain.Last month, it was reported that Hang Seng Investment Management Co., a wholly-owned subsidiary of Hang Seng Bank and the largest exchange-traded fund (ETF) manager in Hong Kong, was looking to add digital assets to its product line.

Japan’s FSA Proposes Tax Exemption for Unrealized Crypto GainsThe Financial Services Agency (FSA) of Japan has taken the step of putting forward amendments that provide a notable tax exemption for unrealized gains on cryptocurrency holdings.Photo by Erik Eastman on UnsplashFSA proposalThe move is significant in that it spares domestic companies from the standard 30% corporate tax rate typically imposed on digital assets up until now. According to reports in local media, that proposal was detailed in a comprehensive 16-page document outlining various regulatory modifications.The most pivotal change within this document is the exemption of domestic companies from the annual “unrealized gains” tax on cryptocurrencies. Unlike some countries that only tax crypto assets when they are converted into fiat currency, Japan currently enforces an annual tax on these digital assets.2023 tax reform agendaThe proposed amendment has garnered support from the Ministry of Economy, Trade and Industry, indicating its potential passage. These discussions are part of Japan’s broader tax reform agenda for 2023, suggestive of the Asian nation’s interest in fostering a favorable environment for the blockchain and cryptocurrency industries.It is important to note that this tax exemption applies exclusively to companies that issue their own tokens and does not extend to entities solely involved in investing in other digital currencies. Additionally, individual crypto investors will still be subject to a maximum income tax rate of 55% on earnings exceeding JPY 200,000 ($1,355) related to cryptocurrency, categorized as “miscellaneous income.”The exemption is structured in a way that excludes these digital coins when assessing a company’s asset market value, provided specific conditions are met. Presently, Japanese law mandates that companies holding crypto assets must pay taxes on unrealized gains at the end of each tax period.To qualify for the tax exemption, a company must meet specific criteria outlined by the tax authority. Firstly, the company must be the issuer of the cryptocurrency in question. Additionally, it must retain continuous ownership of the crypto asset after issuance, while the asset itself remains subject to transfer restrictions.Blockchain ambitionsThis development aligns with Japan’s broader ambition to nurture and expand its blockchain and cryptocurrency sectors. Prime Minister Fumio Kishida recently articulated a vision for a “new form of capitalism,” emphasizing the importance of fostering innovation and growth in emerging industries, inclusive of the Web3 sector. As Japan moves forward with these changes, it signals its interest in creating a conducive environment for blockchain and crypto ventures to thrive.Over time Japan has been iteratively building a framework in respect of digital assets. In 2017 the country recognized Bitcoin as a legitimate property in accordance with the Payment Services Act (PSA). That same year, the Tax Agency classified crypto earnings as miscellaneous income. In 2020, crypto assets were included in Japan’s fund settlement law. Around the same time frame, the FSA brought in the requirement for crypto exchanges to register and obtain a license.These amendments also form part of a series of changes that the Japan Blockchain Association (JBA), an industry advocacy group, has been canvassing for. The proposed changes reflect a pragmatic approach to taxation, doing away with a paper profits taxation treatment in favor of a more progressive approach.