Bitget Launches $100M Crypto Ecosystem Fund

Wemade Signs MOU with Hub71 to Expand WEMIX Ecosystem in the UAEWemade, a leading blockchain gaming company based in South Korea, has recently entered into a memorandum of understanding (MOU) with Hub71, a global tech hub situated in the United Arab Emirates (UAE).Photo by Mohamad on PexelsGlobal tech hubHub71, established in 2017, serves as a global tech hub that brings together startups, corporates, and investors in the Abu Dhabi Global Market (ADGM), which is also home to Wemade’s branch in the Middle East and North Africa (MENA) region called WEMIX MENA.Hub71 benefits from the support of several influential partners, including Mubadala, the Abu Dhabi Investment Office (ADIO), and ADGM. Mubadala, a sovereign investor, manages a diverse portfolio of assets in the UAE and overseas. ADIO acts as the pivotal government hub promoting investment in Abu Dhabi. Meanwhile, ADGM functions as an international financial center with a regulatory framework based on UK common law.Web3 initiativeIn February, Hub71 launched a dedicated initiative called Hub71+ Digital Assets, aimed at fostering Web3 startups and blockchain technologies in the UAE. The initiative has attracted over $2 billion in capital commitments. Notable partners include Binance, Algorand, Polygon, Mastercard, and Amazon Web Services.As part of this collaborative endeavor, Wemade will participate as a partner by leveraging its native WEMIX token. While WEMIX and startups within its ecosystem will have expedited access to Hub71’s programs, GameFi and DeFi companies in Hub71 will have the opportunity to join the WEMIX ecosystem.Korea and UAE’s investment cooperationEarlier this year, the UAE and South Korea signed an MOU, outlining a $30 billion investment plan in the East Asian nation. This agreement has facilitated the entry of Korean firms into the UAE while also attracting investment opportunities.Wemade aims to expand its WEMIX ecosystem by establishing partnerships with various blockchain projects, both domestically and internationally. The company views the MOU with Hub71 as a significant stepping stone for its expansion in the MENA region.

Korea’s Virtual Asset User Protection Act to Take Effect in July Next YearThe Virtual Asset User Protection Bill was passed during the South Korean National Assembly’s plenary session last Friday, according to a report by news agency Newsis. The legislation aims to safeguard customer assets, establish regulations against unfair trading practices, and enforce penalties. The act is scheduled to take effect one year after its passage.Photo by KS KYUNG on UnsplashDefinition of virtual assetsUnder the act, a virtual asset is defined as a digital representation of economic value that can be digitally traded or transferred. It’s important to note that central bank digital currencies (CBDCs) are not considered virtual assets. Virtual assets with characteristics of securities will initially fall under the jurisdiction of the Capital Market Act.Roles of Korea’s central bankThe act grants the Bank of Korea (BOK) the authority to request data and information from virtual asset service providers (VASPs). This provision is deemed necessary for the Korean central bank to formulate monetary and financial policies, despite virtual assets not being equivalent to traditional currencies.Responsibilities of VASPsMoreover, VASPs are obligated to segregate users’ virtual assets from their own holdings. VASPs are also required to reserve the same type and quantity of virtual assets entrusted by users and maintain a certain proportion of these assets in a cold wallet, which is an offline storage solution.Unfair trading practices will be regulated in a similar manner as outlined in the Capital Market Act. The act specifically prohibits the use of undisclosed information, price manipulation, fraudulent transactions, and trading of self-issued virtual assets. VASPs are barred from suspending deposits and withdrawals without legitimate reasons. They are also mandated to monitor suspicious transactions and take appropriate measures to safeguard users. Any suspected unfair trading practices must be promptly reported to financial authorities. Violators of these rules may face criminal penalties, liability for damages, and potential class action lawsuits.Powers of financial authoritiesThe act also clarifies the powers of financial authorities in supervising, inspecting, and taking action against virtual asset operators. Unfair trade practices can result in imprisonment for more than one year (up to 10 years for violations related to self-issued virtual assets) or fines ranging from three to five times the illicit gains. Assets acquired through unfair trade practices will be confiscated, or an equivalent value will be charged if confiscation is not feasible.Impact on crypto investigationsThe absence of legislation directly addressing unfair trading practices in the virtual asset market has posed challenges for prosecutors. They had to rely on existing statutes related to fraud, the capital market, and financial investments. Once the new act takes effect, prosecutors will no longer need to determine whether a virtual asset qualifies as a security or not.Regarding this development, a prosecutor told local legal news outlet Law Times that the implementation of the new act will escalate prosecutorial investigations into cryptocurrency incidents.Meanwhile, the individuals behind the crash of Terraform Labs’ stablecoin TerraUSD and its sister coin Luna will not be subject to this act due to the legal principle of nulla poena sine lege, which prevents the retrospective enforcement of criminal laws. Do Kwon, co-founder of Terraform Labs, was recently sentenced to four months in prison by a Montenegrin court for passport forgery after being arrested in March. The other co-founder, Daniel Shin, has been indicted by prosecutors in Korea.

Further Trials Required Before Determination of eHKD Launch DateThe Hong Kong Monetary Authority (HKMA) is taking a cautious approach to the launch of its retail central bank digital currency (CBDC), the e-HKD, stating that it will only go live once key stakeholders have gained sufficient experience to compete effectively in the payment sector.Photo by Jimmy Chan on PexelsAwaiting greater clarityIn an interview with the South China Morning Post (SCMP) earlier this week, Eddie Yue, CEO of the HKMA, revealed that initial experiments with e-HKD have shown promise, but the central bank is still waiting for greater clarity on technological, legal, and societal aspects. The CBDC trial began in May, involving 16 commercial banks, payment providers, and gross settlement platform Ripple, with a focus on exploring various use cases.Yue emphasized that they are still in the early stages of the trial process. The central question remains finding a use case that outperforms current retail payment methods in terms of safety, speed, or convenience.Programmable paymentsAmong the use cases explored in the pilot, programmable payments have stood out. This functionality allows consumer funds to be restricted for specific purposes. Bank of China (Hong Kong) has been at the forefront of this study, allowing select users to make payments using the test CBDC.The potential applications of the CBDC extend to tokenized deposits and tokenized assets, the aspect of the project which Ripple has involved itself with. The HKMA has shown interest in tokenization, especially after the successful completion of Project Evergreen, a blockchain-based bond issuance project.While the domestic use of the CBDC faces challenges, the HKMA is actively considering its role in cross-border payments. The HKMA has been involved in the Bank for International Settlements (BIS) mBridge pilot, which is expected to release a minimum viable product (MVP) by 2024. It’s working alongside the Bank of Thailand and the central bank of the United Arab Emirates (UAE) on that project. Hong Kong and the UAE have been working towards strengthening financial cooperation in respect of crypto regulation.Following the achievements of the initial pilot, the HKMA is open to bringing in new participants. Rumors suggest that up to 20 central banks are closely monitoring the project’s developments.Collaboration with mainland ChinaRecent weeks have seen Hong Kong and China working on improving cross-border transactions. In July, it was announced that Chinese tourists visiting Hong Kong would be able to use their digital yuan wallets to pay for goods and services at select locations.Conversely, Hong Kong tourists visiting mainland China could use the digital yuan for retail transactions. A new upgrade will enable tourists to top up their digital yuan wallets using Hong Kong’s Faster Payment System (FPS) or major payment providers like Mastercard and Visa.While the exact launch date for e-HKD remains uncertain, the focus on practical use cases and technological advancements is expected to yield a robust and innovative CBDC for Hong Kong’s future. On the international front, the mBridge project is set to play a pivotal role in the broader adoption of CBDCs across borders, potentially revolutionizing global payment systems.