GDAC Joins Hands with Bitgo to Fortify Crypto Wallet Security

Major Japanese securities firms are moving deeper into the cryptocurrency market, underscoring the rapidly evolving nature of Japan’s financial sector. According to DL News, citing Nikkei, Nomura Holdings, Daiwa Securities Group, and SMBC Nikko Securities are exploring plans to launch their own crypto exchanges as Japan edges closer to regulatory approval of crypto exchange-traded funds (ETFs).Photo by Jakub Żerdzicki on UnsplashETFs could spur demandNomura is expected to lead its effort through Laser Digital, its Swiss-based crypto subsidiary, and plans to pursue a domestic exchange license and launch its service by year-end. The move comes after Laser Digital trimmed its crypto positions following third-quarter losses. Despite the setback, Nomura has reiterated its long-term commitment to digital assets. SMBC Nikko Securities, meanwhile, has established a dedicated decentralized finance (DeFi) unit to assess new business opportunities in blockchain-based financial services.  The firms are positioning themselves ahead of what they expect to be a surge in demand if Tokyo lifts restrictions on crypto ETFs. Japan is reportedly working toward approving such products by 2028. In preparation, the Financial Services Agency is considering classifying digital assets as eligible for inclusion in investment trusts—a key step toward broader institutional adoption. Institutional appetite is already building. A November Nikkei survey found that six major firms—including SBI, Nomura, and Daiwa—are developing crypto investment offerings in expectation of eventual approval by the Tokyo Stock Exchange. The 2028 rollout hinges in part on tax reform. The government is weighing a shift from the current progressive tax regime, which can impose rates of up to 55% on crypto gains, to a flat 20% rate—aligning digital assets with the taxation of traditional equities. Authorities find that a two-year buffer is needed to ensure exchanges and oversight bodies can implement the new rules effectively. SBI to acquire Singapore’s CoinhakoIn parallel, SBI Holdings is expanding its regional footprint. The financial services group announced that its Singapore-based subsidiary, SBI Ventures Asset, has signed a letter of intent with Coinhako to pursue a majority acquisition of the virtual asset service provider. The two sides aim to combine their capabilities to deliver integrated services spanning traditional finance and digital assets for both retail and institutional clients. Details of the proposed capital injection and share purchases from Coinhako’s existing shareholders remain under negotiation and subject to regulatory approval. Amid the industry’s expansion, traditional finance is increasingly weighing stablecoins against Bitcoin. According to The Crypto Basic, Lee Hardman, a currency analyst at Japan’s MUFG Bank, said that stablecoins may prove more effective than Bitcoin as a medium of exchange, a unit of account, and a store of value. Their price stability has been cited as a key advantage, as reduced volatility lowers transaction risk for merchants and consumers.

Cross Trading of LUNA Tokens Uncovered on Three Korean Crypto ExchangesAccording to a report by the Maeil Business Newspaper on Wednesday, it was discovered that cross trading of LUNA tokens took place on three South Korean cryptocurrency exchanges: Bithumb, Coinone, and GoPax.Three crypto exchangesAn indictment by the Seoul Southern District Prosecutors’ Office against Terraform Labs co-founders Do Kwon and Daniel Shin, along with interviews conducted within the cryptocurrency industry, revealed that Bithumb, Coinone, and GoPax were involved in cross trading LUNA tokens with a combined value of $598 million. Specifically, Bithumb accounted for $224 million, Coinone for $299 billion, and GoPax for $74 billion.The prosecution has confirmed that cross trading continued until the end of February 2022, a period marked by significant demands for virtual asset legislation from both the market and academia. Despite widespread calls for regulations to curb unfair trading practices, these instances of cross trading went undetected.Classification of LUNAMoreover, it is reported that legal punishment for the $598 million worth of cross trading is challenging unless LUNA tokens are officially recognized as securities by the court. Under the Korean Capital Markets Act, only cross trading involving tokens identified as securities can be subject to penalties as a form of market manipulation.During a plenary session of the National Assembly’s Legislation and Judiciary Committee on Tuesday, Justice Minister Han Dong-hoon made a statement suggesting that LUNA tokens could be considered securities due to their backing by real-world assets. However, he said that this distinction might not apply to other tokens.On April 25, the Seoul Southern District Prosecutors’ Office indicted Shin and others as accomplices to Kwon, assuming that LUNA tokens were indeed securities. This case now revolves around whether the prosecution can successfully establish the classification of LUNA tokens as securities during the trial, making it the central issue in the case.Photo by Kanchanara on UnsplashCrypto investor protection legislationLast Thursday, the National Assembly’s National Policy Committee approved a bill known as the “Virtual Assets User Protection Act,” signaling an accelerated legislative process. However, there are arguments suggesting that the definition of cross trading should be further clarified in either the legislation or enforcement decree.A representative of a law firm specializing in virtual assets stated that the implementation of the User Protection Act would take another year even after its promulgation, making it challenging to retrospectively penalize cross trading practices that had already occurred.

Avalanche Blockchain Developer Expands into IndiaAva Labs, the company behind the layer one Avalanche blockchain, is setting its sights on a significant expansion in India.Seeking out state agency partnershipsThe move by the New York-based blockchain development firm reflects the growing interest in blockchain technology within the world’s most populous country. Ava Labs outlined that it is actively seeking partnerships with Indian government agencies and institutions to facilitate the development of applications on the Avalanche (AVA) blockchain, according to a blog post published by the firm on Thursday.While government and state agencies have not been terribly progressive when it comes to decentralized cryptocurrencies in India, they have been more receptive in terms of developing the underlying blockchain technology.Earlier this year, the Royal Bank of India (RBI) highlighted the importance of adopting blockchain technology. Last month, an RBI-led initiative emerged through India’s National Payments Corporation of India (NPCI) to further explore blockchain technology relative to payment systems.Indian government’s initiatives, such as launching a Centre of Excellence in Blockchain Technology, align with Ava Labs’ expansion strategy. Moreover, Indian states like Goa and Telangana have demonstrated a proactive approach to leveraging blockchain for real-world use cases, including land records and vehicle registrations.Photo by Studio Art Smile on PexelsRecruiting local talentAs part of its plans, Ava Labs has made a few pivotal hires to lead its operations and business development in India. Devika Mittal, formerly the Head of Token Listings for OK Group company Okcoin, and Kamakshi Arjun, who has held leadership positions at Polygon (MATIC) India and Tech Mahindra, have joined the team. Both individuals bring extensive experience in the blockchain industry to their new roles.Mittal expressed her excitement about the opportunity, stating:“I am so excited to help Ava Labs expand its reach and impact in the region, and am confident that Ava Labs is well-positioned to meet the demands of India’s large and growing population of tech-savvy individuals and businesses.”Equally Arjun, with her understanding of the blockchain market, is expected to play a critical role in Ava Labs’ expansion strategy.Business development fundMittal said in an interview with The Block that Ava’s operations in India would focus on several sectors, including ticketing, certification, and supply chains. She also highlighted the innovative features of Avalanche subnets. Notably, Ava Labs has a specific business development fund earmarked for India.There’s a lot of activity within India’s blockchain ecosystem, with projects like Loco, an esports and live-streaming platform, leading the way. Loco is developing a range of Web3 products and pioneering innovative fan experiences using a custom Avalanche Subnet.While Polygon Labs, the founder of Ethereum scaling network Polygon, operates on a fully remote basis, its origins can be traced back to India through its founders. One community member responded to this latest news, stating that the Avalanche development team has a lot of ground to make up by comparison with the progress recorded by Polygon in India in terms of partnerships and business development.Ava Labs is actively engaging with various prominent institutions and has already secured a partnership with a government agency, although specific details have not been disclosed.