Daehong and Animoca Brands Partner to Leverage NFTs in Expanding Web3 Projects

Remixpoint, a publicly listed Japanese company that develops and sells energy management systems, is adding 500 million yen, around $3.2 million, in Bitcoin to its corporate treasury.Photo by Traxer on UnsplashBitcoin buying motivationsThe firm outlined details of the planned purchase in a statement published on Nov. 25, following a meeting of the firm’s board of directors. Remixpoint justified its decision to purchase Bitcoin in light of widespread uptake by institutional investors of spot Bitcoin exchange-traded funds (ETFs) which were launched in the United States in January. It suggested that there had been an uptick in holdings of the leading digital asset by corporations. Remixpoint cited the increase in the Bitcoin unit price since the Bitcoin halving event earlier this year, together with a positive outlook for the asset following a presidential election victory by Donald Trump in the U.S., as motives for the company to come to the decision to purchase Bitcoin. However, this is not its first crypto purchase. The company first started to buy Bitcoin, as well as five other cryptocurrencies, in September, suggesting at the time that digital assets provided the company with a mechanism to diversify its holdings at a time when the value and buying power of the Japanese yen had been weakening.  Including its latest announcement, Remixpoint has worked up total crypto investments to the value of 3.5 billion yen. According to Japanese crypto media publication Coinpost, on Nov. 20 the company held 215.76 Bitcoin (BTC), 9,674 Solana (SOL) and 228 Ether (ETH), with the remainder of its crypto portfolio consisting of Avalanche (AVAX), Dogecoin (DOGE) and Ripple (XRP). Unrealized gainsThe company is understood to be sitting on unrealized gains of approximately 810 million yen, given that Bitcoin has appreciated in value by around 68% since the beginning of September, with all other cryptocurrencies within Remixpoint’s portfolio having experienced unit price increases during that period also.  In its latest statement, the company advised that while gains and losses related to its crypto portfolio had not been included within its latest consolidated earnings forecast, it will disclose any significant crypto gain or loss in the future if its deemed to have had a significant impact upon consolidated results. Bitcoin corporate treasury adoptionThe Japanese energy management firm has taken its place in a growing list of corporations that have put Bitcoin on their balance sheets in recent weeks. Earlier this week, it emerged that North American video streaming and cloud platform Rumble had made plans to allocate $20 million in excess cash reserves to the acquisition of Bitcoin. The following day, Jiva Technologies, a Canadian Securities Exchange (CSX)-listed online wellness community builder, approved a $1 million Bitcoin purchase for its treasury. Last week U.S. e-commerce platform LQR House approved the purchase of $1 million in Bitcoin as part of its treasury management strategy. Furthermore, the company committed to retaining up to $10 million in Bitcoin from crypto payments received via its CWSpirits.com platform. In the same week, AI-powered education company Genius Group established a Bitcoin treasury, acquiring 110 Bitcoin. In the same week, Cosmos Health, a Nasdaq-listed pharmaceutical company, announced that it was adding Bitcoin and Ethereum to its balance sheet as hedges against inflation and as a diversification mechanism.

Hong Kong’s Securities and Futures Commission (SFC) is gearing up to issue additional crypto exchange licenses before year’s end.  11 applicants under considerationThat’s according to SFC CEO Julia Leung. Leung commented on the matter while speaking with Hong Kong-based online news portal, HK01, on Oct. 7. She stated that 11 companies are considered as applicants for licensing and new progress is expected before the end of the year. Overall, 16 firms have applied for licenses and of these, the regulator is indicating that 11 will likely be awarded licenses at this stage. The 11 firms underwent reviews carried out by the SFC in August to determine and ensure their compliance with the current regulatory framework. The virtual asset service providers (VASPs) inspected included HKbitEX, PantherTrade, Accumulus, DFX Labs, Bixin.com, EX.IO, YAX, WhaleFin and Matrixport HK. Overseas applicants inspected included Crypto.com and Bullish. The regulator’s intention is to work towards an SFC objective of drafting these VASPs into the regulated environment established by the SFC. Leung explained that the SFC intends to award licenses in batches. Those applicants who have already had SFC on-site reviews carried out have been asked by the regulator to rectify issues identified based on the regulators findings. "Applicants who do not meet the requirements will lose their qualifications for licensing, while applicants who meet the requirements will be granted a license conditionally,” Leung told HK01.Photo by Bowen Chin on UnsplashSFC roadmapLeung also told the media outlet that relative to over-the-counter (OTC) crypto services, a new licensing system has been put in place to regulate OTC custody provision. The SFC CEO outlined that the organization’s roadmap for the period 2024 to 2026 incorporates plans to promote the tokenization of real-world assets (RWAs), further advance regulations relative to virtual asset platforms and gain further understanding of Web3 technologies and regional blockchains. Last week the regulator awarded a license to HKVAX, allowing it to join OSL and HashKey as the only fully licensed VASPs in Hong Kong thus far. While Hong Kong has made great strides over the course of the past two years to work towards becoming a regional hub for crypto businesses, it has faced criticism recently for having an overly restrictive regulatory framework.  Regulators felt the need to tighten up regulations in the aftermath of the collapse of the JPEX crypto exchange which implicated fraud and resulted in around 2,600 Hong Kong residents experiencing financial losses in the region of $200 million. The regulatory requirements have resulted in some platforms turning away from attempts to acquire licensing. In May, Gate.io’s local platform Gate.HK ceased operations in Hong Kong, while withdrawing its licensing application.In July HKX followed suit, advising its users to withdraw their funds from the platform, while notifying them that it had withdrawn its application for Type 1 and Type 7 licensing, as well as VASP licensing.

Following December's release of proposed fiat-referenced stablecoin regulations, the Hong Kong Monetary Authority (HKMA) has progressed further with the introduction of a stablecoin sandbox.Photo by Nextvoyage on PexelsFormulating a regulatory regimeThe regulatory sandbox, announced through a press release published to the regulator’s website on March 12, encompasses stablecoin currencies beyond the Hong Kong dollar, although the HKMA refrained from specifying particular currencies. Eddie Yue, CEO of the HKMA, emphasized the sandbox's role as a platform for constructive dialogue between the regulatory authority and the industry. Yue stated:"The sandbox arrangement serves as an effective channel for the HKMA and the industry to exchange views on the proposed regulatory regime.”Yue further noted that such engagement is pivotal for formulating regulatory requirements conducive to the sustainable and responsible growth of the stablecoin issuance business. The stablecoin sandbox finds its digital footprint within the International Financial Centre on the HKMA's website. The documentation accompanying the sandbox outlines several key requirements for potential participants. These include demonstrating genuine interest and a feasible plan for issuing fiat-referenced stablecoins in Hong Kong, as well as a concrete strategy for engagement within the sandbox. Additionally, applicants must exhibit a reasonable prospect of compliance with the proposed regulatory framework. Minimum capital requirementsOne notable regulation proposed stipulates that issuers must be Hong Kong-based entities with a minimum capital requirement of HK$25 million ($3.2 million) or 2% of the stablecoin issuance, whichever is higher. The HKMA remains vigilant regarding public announcements by sandbox participants, ensuring that such declarations do not misconstrue endorsement or accreditation from the regulatory authority. In late January, reports suggested discussions between Harvest Global Investment, RD Technologies, Venture Smart Financial Holdings and the HKMA regarding their potential entry into the sandbox. Harvest Global Investment, boasting over $200 billion in assets under management, signifies a significant player in this evolving digital assets space.RD Technologies took to the X social media platform to publicize its approval of the HKMA’s stablecoin sandbox. It also availed of the opportunity to outline that it’s in the process of launching a Hong Kong dollar (HKD)-based stablecoin, which will be known by the short-code HKDR.Hong Kong-based fintech firm AnchorX also chimed in, stating that the sandbox is “a pivotal step forward for the industry, enabling informed dialogue and collaboration between regulators and fintech innovators.” Like RD Technologies, AnchorX is also looking to get involved in the stablecoin business, having developed the AxHKD Hong Kong dollar-based stablecoin, which it is currently beta testing, in collaboration with Conflux Network. Juan Leon, crypto analyst with Bitwise Asset Management, suggested that the move is a great initiative, while calling on the U.S. Federal Reserve Chair Jerome Powell to follow Hong Kong’s example. On the tokenization front, Hong Kong made headlines in 2023 with the issuance of the world's largest native digital bond — a green bond exceeding $750 million. Late last year, it also proposed regulations relative to tokenization of real-world assets.Guidance provided to banks on tokenization, coupled with plans for forthcoming legislation, further solidifies Hong Kong's position as a trailblazer in the realm of digital finance.