US Treasury Sanctions Gaza-Based Crypto Operator

Saudi Arabia’s NEOM Forms $50M Animoca Brands PartnershipHong Kong’s Animoca brands, a gaming and metaverse venture capital firm, is embarking on a partnership with Saudi Arabia’s NEOM Investment Fund, focusing on pioneering Web3 initiatives.Animoca announced the initiative via a statement published to its website on Monday. NEOM is an ambitious project aiming to create a futuristic urban oasis in northwest Saudi Arabia, serving as a nexus for technology, commerce, entertainment, and tourism. It is planning to invest $50 million in Animoca.Photo by Hala AlGhanim on UnsplashDeveloping Web3 service capabilitiesThis collaboration will see Animoca harness its expertise to develop Web3 service capabilities with broad global applications in tandem with NEOM, aligning with NEOM’s vision of becoming a cutting-edge tech hub of the future.Animoca Brands has been a prominent player in the Web3 investment arena for several years. In July 2022, the company’s valuation soared to $6 billion, with backing from notable entities such as Singapore’s state investment fund, Temasek. Despite its ambitious goal to secure $2 billion for its metaverse fund in November of the same year, those expectations were significantly tempered following the FTX collapse. Consequently, in March, Animoca revised its target to a more modest $800 million.In-house market makingA report by The Block on Friday revealed that Animoca has been making efforts to pitch an in-house market making service to fledgling Web3 businesses within its portfolio. That service has been presented by the company to more than 400 startup projects in which it has been an investor over recent months.The key market makers in the crypto space include Wintermute, Keyrock, and GSR. This move by Animoca potentially puts Animoca in direct competition with these primary crypto-sector market makers. An in-house digital asset team has been tasked with offering the service. An Animoca spokesperson stated:“Its primary role, much like the treasury teams in many large corporations, is to optimize the utilization of the company’s balance sheet. The team does conduct market-making to ensure there is enough buy/sell liquidity for certain tokens, which is similar to the function that third-party market makers conduct, except that we choose to perform this in-house for scale and efficiency.”Saudi diversificationAs part of its Vision 2030 initiative, Saudi Arabia has been looking to diversify away from its predominantly oil-based economy. In an interview last month, Animoca Brands Founder Yat Siu outlined that the Middle Eastern country is embracing new technologies such as artificial intelligence (AI) and blockchain, encompassing blockchain-based gaming and Web3.In July it emerged that the Saudi Central Bank (SAMA) and the Hong Kong Monetary Authority (HKMA) were looking to extend the level of collaboration between the two territories relative to international payments and tokenization.This renewed interest from state-backed funds in Animoca suggests a potential shift in the Web3 venture capital landscape, coinciding with broader indications of a thaw in the crypto winter. The collaboration with NEOM and the injection of $50 million underscore the growing recognition of Web3’s potential, cementing Animoca Brands’ position as a key player in the ever-developing Web3 space.

South Korea’s FIU Faces Staffing Cuts Amid Crypto ChallengesThe Financial Intelligence Unit (FIU), a department operating under the South Korean Financial Services Commission (FSC), is downsizing its Virtual Asset Inspection Division, reducing its members from nine to seven, as reported by the local news outlet Etoday. The FIU has faced chronic understaffing for several years, and with the cryptocurrency market expanding and issues accumulating, there is growing concern within the industry about the possibility of a regulatory and supervisory gap.Photo by JEONGUK — on UnsplashTemporary division’s tenure extensionMeanwhile, the FIU seeks to extend the tenure of the temporary virtual asset inspection division, currently scheduled to operate from September 16, 2023, until June 30, 2024. Presently, this division comprises one rank 4 officer, four rank 5 officers, three rank 6 officers, and one rank 7 officer. However, the upcoming organizational changes will involve the removal of one rank 5 officer and one rank 6 officer. Moreover, the two temporary employees (one rank 5 and one rank 6), assigned specifically to examine and analyze financial transactions related to virtual assets, will be reduced to a single rank 5 officer.Understaffing and budget issuesAfter several years of grappling with staffing shortages, it appears that a decision has been made to actually reduce the overall number of FIU personnel. Last year, when the NPC of the National Assembly reviewed the budget of the FSC, it pointed out the shortage of FIU personnel. According to the NPC’s report on the FSC, as of 2022, the FIU’s capacity was 83 staff members. However, the current number stands at only 68, which includes 34 individuals who have been seconded from other agencies. Additionally, there are an additional 13 personnel whose positions are not represented in the organizational chart.The FIU’s spending on labor costs has consistently been lower than that of the FSC’s headquarters each year. Between 2017 and July 2022, the FIU used, on average, 83.71% of its allocated budget for labor costs. In contrast, the FSC had a higher average utilization rate at 89.2%. The NPC pointed out that this discrepancy is largely due to staffing imbalances between the two organizations, suggesting that a reevaluation of staffing levels may be necessary.The FIU has long been considered a less popular unit within the FSC. In recent years, the situation has become particularly challenging for the Virtual Asset Inspection Division, which has been swamped with various problems. This has led to a general reluctance among FSC staff to join this particular division.A person familiar with the matter told Etoday that departments within the FSC focusing on financial policy areas like insurance, banking, and capital markets have traditionally been the go-to choices for those aiming for promotions. However, the source added that there’s been a recent shift: more officers are now showing interest in joining the FIU, often with an eye toward transitioning into related industries after retirement.MOIS hesitant on permanent staffingMeanwhile, the Ministry of the Interior and Safety (MOIS) has been reluctant to make the FSC’s Financial Innovation Bureau and the FIU’s Virtual Asset Inspection Division permanent fixtures. While the FSC argues that solidifying these divisions would necessitate a larger staff and budget, the MOIS is holding back. According to another source, the staffing issue isn’t exclusive to the FIU; the FSC as a whole is understaffed. Despite the FSC’s desire to expand its workforce, the MOIS remains unwilling to approve the additional resources.Crypto professionals are worried that financial regulators are cutting back on staff even as challenges within the sector continue to mount. An official from a virtual asset exchange voiced frustration, pointing to the contrasting approach in neighboring Japan. The official noted that Japan is actively pushing to advance its Web3 sector by not only establishing a dedicated virtual asset department within its Financial Services Agency, but also by forming specialized task forces to address specific challenges. The official finds it baffling that Korea, on the other hand, is downsizing departments that tackle these important issues.

Starbucks Korea implements NFT initiative to boost sustainability effortsStarbucks Korea is set to take on several eco-friendly initiatives in the new year to promote the use of personal reusable cups, including an NFT wallet and a new tumbler coupon policy, according to local news outlet Newsis on Thursday (KST).Photo by Battlecreek Coffee Roasters on UnsplashNFTs and eco-friendly effortsIn a newfound development, the brand also said that it would start issuing NFTs through a new NFT wallet on its mobile app next month as part of its eco-friendly consumption campaign. Until now, NFTs have been widely utilized in fields like art, music and entertainment due to their ability to prove individual ownership of digital assets. Starbucks’ adoption of the technology is a significant step in its implementation into daily life, which will lead to an increase in the number of real-world use cases and an acceleration in the transition to the era of Web3.To celebrate the launch of the NFT wallet, Starbucks plans to hold a promotional event where customers who use a reusable cup for one beverage ordered via the Siren Order function will receive one Eco Stamp. Up to three stamps can be collected per day. These can be exchanged for various types of NFTs, which are categorized as Basic, Creative and Artist, and each customer can only own one.Starbucks’ NFTs will be minted in collaboration with Seoul-based art platform and gallery Print Bakery (PBG) and PBG exclusive artist DADAZ, featuring images of unique cups, tumblers and more.The franchise plans to hold an offline exhibition to showcase images of the NFTs as well as its achievements in corporate sustainability at the Starbucks Jongno R store located in Jongno-gu, central Seoul, early next month.Sustainable sipsThe coffee franchise is also known for offering a complimentary beverage voucher to customers who purchase a reusable cup or tumbler. Next month, this voucher will be renamed the Eco Tumbler Beverage Coupon, which customers can exchange for a tall-sized beverage of their choice. This policy is aimed at encouraging the use of personal cups and providing tailored benefits to customers who embrace sustainable options.This new introduction was partially driven by the steady increase in the number of personal cups used at Starbucks stores around the country over the past three years. The annual number of cases has risen from 17.39 million in 2020 to 21.9 million in 2021, then 25.3 million last year.This figure has spiked significantly this year in particular, with the cumulative yearly number reaching 26.7 million last month, surpassing last year’s total. If this trend continues until the end of the year, the estimated figure is expected to be around 29.6 million, representing a 17% increase compared to 2022.This upward trend is attributed to the immediate KRW 400 discount offered to customers who participate, as well as an alternative benefit where customers can earn one “Star”, or reward point, for each purchase that they make. Until last month, the total value of benefits that were distributed via these two systems — with one Star valued at KRW 500 — exceeded KRW 12 billion. The ratio of immediate discount and Star rewards in this value stands at 30% and 70%, respectively.Green commitmentStarbucks also plans to continue its No Single-Use Cup Day campaign, a collaboration with the Korea Zero Waste Movement Network that has been ongoing for the past five years. The brand dedicates the tenth of every month as a day without single-use disposable cups, giving out merchandise like mugs, tumblers, coffee ground planting kits and stickers. Since last year, various events have been organized to celebrate the day, such as coupons gifted to customers who use reusable cups the most. Approximately one million people have participated in these promotions since the campaign’s inception in 2018.Starbucks expressed its hopes that these initiatives would act as a catalyst for positive changes in local communities by encouraging the reduction of waste.