Hong Kong Takes Steps to Enhance Crypto Platform Oversight

Korea’s Busan City to Develop Blockchain-Based Carbon Neutrality PlatformBusan Metropolitan City, known for being home to South Korea’s largest port, announced today that its consortium won the bid for the 2023 new local energy facilitation project offered by the Korea Energy Agency, an organization under the Ministry of Trade, Industry, and Energy (MOTIE). The consortium consists of five entities, including Busan City, tech solution provider Nuri Flex, and gas distributor Busan City Gas. As the winning bidder, Busan City and its collaborators will proceed with the development of a blockchain-based platform that promotes carbon neutrality.Photo by BERK OZDEMIR on PexelsCarbon neutralityThe primary aim of this project is to create a system that leverages surplus renewable energy to achieve carbon neutrality in the city’s port and industrial infrastructure. The initiative includes providing eco-friendly renewable energy to port and industrial facilities, establishing a blockchain-based carbon credit system to support businesses in joining the global corporate renewable energy initiative RE100, and facilitating the trading of surplus electricity. These measures are intended to save energy, enhance power system stability, and create greater value.Boosting green energy proportionThe project is set to take place from June 2023 to December 2024, with an estimated cost of 3 billion KRW ($2.3 million). The national and local governments will each finance 25% of the project, while the private sector will cover the remaining 50%. Upon completion of the project, Busan aims to increase the proportion of renewable energy within the city. Leveraging surplus energy and engaging in carbon credit trading, Busan expects to gain a competitive edge in the carbon-neutral sector.

Sony Network Invests $3.5M in Startale Labs to Drive Global Web3 AdoptionSony Network Communications, a prominent Japanese internet service provider, has made an investment of $3.5 million in Startale Labs, an innovative Web3 company based in Singapore. The primary objective of this collaboration is to establish an infrastructure that will promote the global adoption of Web3 technologies.Photo by Bastian Riccardi on UnsplashTelecom meets Web3Sony Network Communications, founded in 1995, offers high-speed fiber-optic broadband services and operates in various sectors of the telecommunications industry. The company is actively involved in advanced technology ventures such as the Internet of Things (IoT) and artificial intelligence (AI). Meanwhile, Startale Labs specializes in the Web3 domain, providing advisory services related to Web3, supporting the creation of layer 1 blockchains and applications, and collaborating with other entities to develop core Web3 functionalities.As part of this partnership, Jun Watanabe, the President and Representative Director of Sony Network Communications, will join Startale Labs as a director. He expressed his gratitude for the collaboration, emphasizing the deepening ties between Sony and Startale Labs. He highlighted the fruitful joint efforts already underway to advance Web3 technologies. Both companies share the objective of fostering an infrastructure that facilitates global Web3 adoption. Jun Watanabe said this initiative will lead to the emergence of revolutionary Web3 applications.Sota Watanabe, the CEO of Startale Labs, acknowledged Sony Group’s remarkable achievements across diverse industries such as gaming, entertainment, and financial services. He believes that Sony holds great potential in the Web3 sector, and Startale Labs is well-positioned to contribute its expertise and knowledge to this domain. With this partnership, Sota Watanabe envisions a collaborative effort that will not only foster the global Web3 infrastructure but also drive the creation of valuable and impactful Web3 applications.Sony’s Web3 expansionSony Group has been actively exploring opportunities in the Web3 field. Earlier this month, Sony Bank, another affiliate of Sony Group, partnered with Mitsui & Co. Digital Asset Management (MDM) to introduce MDM’s security token service, Alterna, to the Tokyo-based online bank’s customers. Through this collaboration, Sony Bank customers can invest in real-world assets, such as large-scale real estate properties, using security tokens provided by Alterna. This platform opens up investment avenues that were previously inaccessible to retail investors due to high capital requirements. Notably, the minimum investment requirement through Alterna is 100,000 yen.Government supportThere’s also been a positive move from the Japanese government for the Web3 and cryptocurrency industry. The Japanese National Tax Agency recently announced the revised corporate taxation rules pertaining to crypto assets. Under the new amendment, companies are exempt from taxes on unrealized gains from cryptocurrencies if the virtual assets were issued by the company and have been continuously held since issuance, or if they have remained subject to certain transfer restrictions since issuance.Startale Labs CEO Sota Watanabe welcomed this development on his Twitter account, stating that Web3 projects like Astar Network can now conduct business in Japan without moving their operations overseas. Meanwhile, he highlighted the importance of addressing the issue of corporate taxes on tokens issued by third parties in the future. He hoped for continuous engagement in constructive discussions with politicians and government agencies.

ICP Planning Hong Kong HubThe development team behind the Internet Computer Protocol (ICP) is planning on creating a Hong Kong-based hub.In Twitter comments published on Wednesday, Dominic Williams, the Founder of the Dfinity Foundation, the development team responsible for ICP, stated that as a consequence of his recent visit to Hong Kong and participation in the Web3 Festival, the project “plans for an Internet Computer Hub, probably in Cyberport.”©Pexels/PixabayICP is a set of protocols that facilitate independent data centers globally to band together, offering a decentralized alternative to the existing centralized cloud providers. On that distributed basis, it allows users to create websites, apps and various web-based services.Founded by Williams and the Dfinity Foundation, the project had the backing of venture capital firms Andreessen Horowitz (a16z) and Polychain Capital from an early stage. Cyberport is a 25 hectare multimedia park in Hong Kong’s southern district, consisting of a hotel, four primary office buildings and a retail entertainment complex. It’s home to over 1,900 start-ups and technology companies, making it a creative digital community and technology cluster within Hong Kong.Giving Silicon Valley a run for its moneyWilliams had made a keynote address at the Web3 Festival last week. Dfinity expressed the view that enthusiasm for blockchain, Web3 and the ICP project was “off the charts” at the Hong Kong event. It seems that Williams was similarly enthused such that he wants to establish a physical presence for the project in Hong Kong.Prior to the Web3 Festival event, Williams had also stated that “dynamism in Asia is incredible” . . . “Asia will give Silicon Valley a serious run for its money.” In making a comparison with Silicon Valley, Williams referred to comments he had heard being made by a Taiwanese venture capitalist, suggesting in relation to leading Californian tech companies such as Facebook, “that nobody does any work, it’s like a retirement company.”ICP Asia AllianceAnother item that Williams noted as a take away from his Hong Kong visit was a recognition by the Dfinity Foundation founder that the formation of an ICP Asia Alliance is a possibility. He stated that “things [are] already happening” to effect this eventuality.Confirming that work in progress, it appears that Williams met last week with members of TinTin, a Web3 development DAO, as part of his ICP Asia Alliance initiative. It’s understood that as part of the initiative, the ICP Asia Alliance will cooperate with local venture capital firms in Hong Kong, with a view towards promoting and cultivating talent in Asia relative to Web3 and the ICP project.Building a new internetAs a Swiss non-profit, the Dfinity Foundation launched the ICP blockchain in May 2021. The project has garnered considerable attention from both developers and investors. It also distinguishes itself from many other blockchain projects insofar as it has attracted the involvement of leading tech companies such as Oracle and Samsung.At the time of publication, $ICP was trading at $6.24, 15% its 2023 high point of $7.34.