CMCC Global Launches $100 Million Fund for Asian Blockchain Startups

After being targeted in a $1.4 billion hack, the global crypto exchange platform Bybit was awarded in-principle approval to establish itself as a Virtual Asset Platform Operator (VAPO) within the United Arab Emirates (UAE). While Bybit announced the milestone via a press release published on Feb. 27, the approval had been awarded on Feb. 18, three days before the platform was hacked.Photo by Saj Shafique on UnsplashRegulatory challengesIn addition to the recent exploit, the crypto exchange platform had been having difficulties on the regulatory front in recent months, and from that perspective, this licensing award is a welcome development. Last December, the Malaysian Securities Commission reprimanded the platform and its CEO, Ben Zhou, for carrying out digital asset trading activities in Malaysia without having obtained the necessary licensing. Consequently, the firm left the Malaysian market, promising to return once it had obtained the required licenses. For similar reasons, Bybit left the Indian market in January, citing a need to “operate in full compliance” with local regulations. The company said that it was working with the regulator to finalize its registration as a Virtual Asset Service Provider (VASP) in India. The platform also experienced difficulties in complying with the recently introduced Markets in Crypto Assets (MiCA) regulation in Europe. However, it has been working with regulators in Austria in an effort to acquire MiCA licensing. Consequently, the French regulator, Autorité des Marchés Financiers, removed the firm from its blacklist. Earlier this month, Japan’s Financial Services Agency (FSA) ordered Apple and Google to remove the apps of a number of unregistered crypto platforms, including Bybit, from the Japanese versions of their app stores.  Commenting on this recent achievement in the UAE, Ben Zhou stated: “This approval marks a crucial step in our journey to providing secure and transparent crypto trading solutions. Bybit remains dedicated to working hand-in-hand with regulators to foster a compliant and innovative digital asset ecosystem to both retail and institutional investors in the UAE.” Hack falloutIt’s unclear to what extent the recent hack, which is understood to be one of the largest thefts of any kind, may be diverting resources and focus away from the efforts the company was making to address regulatory issues globally. However, it’s reasonable to assume that recent events make for a challenging time for the company. On Feb. 26, the Federal Bureau of Investigation (FBI) in the United States said that North Korea was responsible for the hack. The agency warned exchanges to freeze transactions linked to the stolen funds. The FBI outlined that “TraderTraitor” actors have been converting the funds to Bitcoin and other digital assets in an effort to launder the funds and eventually extract the funds in fiat currency. North Korea’s Lazarus hacking group has gained notoriety for its successes in hacking crypto platforms and the sophisticated nature of the attacks mounted in the process. The group is suspected of having hacked the Indian crypto platform WazirX last year, which resulted in the theft of $235 million in digital assets.

Binance and Gulf Energy launch digital asset exchange in ThailandThe world’s largest cryptocurrency exchange, Binance, has teamed up with Gulf Energy Development, a leading energy company in Thailand, to operate a digital asset exchange in the country.Photo by Than Diep on UnsplashInvitation-only launchThe new platform, Binance.th, aims to capture the growing demand for crypto services in Southeast Asia. Binance.th, which is currently in its beta testing phase, is expected to open to the public in early 2024. A filing on Wednesday by Gulf to the Thai stock exchange demonstrates that the platform has received approval from the Thai Securities and Exchange Commission to offer exchange and brokerage services for cryptocurrencies and digital tokens. The filing states:“Gulf Binance’s digital asset platform will provide digital asset exchange and digital asset broker services for both cryptocurrencies and digital tokens, prioritizing security and compliance with SEC regulations.”The platform is initially available by invitation only, and the plan is to eventually open the exchange to the general public. It’s understood that the platform will strive to provide a “globally standardized” service that will enhance the level of service in Thailand and promote the development of the country’s blockchain ecosystem.Market opportunityBinance.th enters the Thai crypto market at a time when the local leader, Bitkub, holds a dominant share of 75.4%. Bitkub benefited from the global crypto market downturn in 2022, which affected its competitors such as FTX and Zipmex.Although it has extended market share during the downturn and as a consequence of the demise of other platforms, Bitkub has also struggled with market conditions. In July its parent company Bitkub Capital Group, reduced headcount by six percent. Bitkub recorded $28.6 billion in trading volume last year, out of the total $37.94 billion generated by the top four Thai exchanges.Binance.th hopes to challenge Bitkub’s position by leveraging Binance’s global reputation and expertise in the crypto industry.Legal woesThe launch of Binance.th comes amid Binance’s legal and regulatory troubles in the U.S. and Europe. In September, the U.S. Securities and Exchange Commission (SEC) sued Binance, its U.S. subsidiary, and its founder Changpeng Zhao (CZ) for allegedly listing unregistered securities in the form of cryptocurrencies.In June, the SEC also accused CZ and Binance of illegally marketing its international platform to U.S. customers.Binance has been trying to improve its compliance and governance standards in response to regulatory scrutiny. The company has hired former regulators and executives from the traditional finance sector to lead its operations in various regions. Binance has also applied for licenses and registrations in several jurisdictions, such as the U.K., Singapore and Japan.The origins of this deal stem from a memorandum of understanding (MOU) signed between Binance and Gulf Energy in January 2022. The joint venture business which emerged acquired a digital operator license in Thailand in May of this year.By expanding its presence in Southeast Asia, Binance hopes to tap into the potential of the emerging crypto markets and diversify its revenue streams. Binance.th also marks the first bank-backed crypto exchange in Thailand, as Gulf Energy Development is partly owned by the state-owned Krung Thai Bank.

AliExpress Partners With ‘The Moment3!’ NFT ProjectAliExpress, the renowned global e-commerce platform and subsidiary of China’s Alibaba Group, is making its entry into the world of non-fungible tokens (NFTs) through a newly announced partnership with The Moment3!, a Web3 project. The collaboration aims to release a collection of 5,555 NFTs later this month.Photo by Andrey Metelev on UnsplashWhat is ‘The Moment3!’?Oddly, we know very little about the project. Its Telegram channel has just been established, it doesn’t have a website, while its Discord and Twitter channels are also recently established with modest followings. Anonymity is a feature in Web3 and perhaps that’s the approach this project is taking. Whatever the background, it has to be said that there must be some talent behind the project for it to secure the backing of an entity like AliExpress by way of this partnership.This recent announcement was initially made on AliExpress’ official Twitter account but that tweet has since been removed. The project itself tweeted out news of the partnership on Thursday. The Moment3!’s mission, as stated in its Twitter bio, revolves around utilizing NFTs to immortalize special moments on the blockchain.According to the project’s Discord channel, The Moment3! aims to connect with real-world businesses and provide NFT owners with benefits and exclusive rights beyond the collectible value.NFT debutThis marks AliExpress’ initial venture into the NFT market, although its parent company, Alibaba, has previously explored the Web3 space. In September 2022, Alibaba’s luxury shopping platform, Tmall Luxury Pavilion, introduced an immersive shopping metaverse experience and introduced the Meta Pass, granting users free access to virtual experiences.Alibaba-Centric Web3 projectsThere have been several other Web3-related investments and developments related to Alibaba Group companies in recent months.Last month, Alibaba Cloud, one of the world’s largest cloud computing companies, joined forces with the Avalanche layer one blockchain project to introduce “Cloudverse,” a launchpad facilitating the creation of personalized spaces within the metaverse for businesses.In April Alibaba Cloud was the co-organizer of the Web3 Festival, an event held in Hong Kong to showcase the autonomous Chinese territory for the development of the Web3 sector. The four-day event attracted 10,000 attendees.In early May, Artifact Labs, a Hong Kong-based start-up company that specializes in metaverse and Web3 product offerings, raised $3.25 million in a funding round led by Blue Pool Capital. The investment firm is the personal investment vehicle of Alibaba founders Jack Ma and Joe Tsai.NFT warningAliExpress, owned by Alibaba Group, is a global e-commerce platform that does not cater to customers in mainland China, despite being headquartered in China. The Chinese government prohibited all cryptocurrency transactions in September 2021. NFTs remained legal although authorities recently issued a warning on their use, together with some guidelines.With its new collaboration, AliExpress is expanding its reach into the Web3 space and exploring the potential of NFTs. As the release date approaches, anticipation grows to witness the specific features and benefits offered by the 5,555 NFTs that will soon be available to the public.