Rotonda Signs Deal with The Sandbox for Blockchain Ecosystem Expansion

India’s Upcoming G20 Summit Bullish for CryptoThe upcoming G20 summit in Delhi, India, will mark the first-ever G20 summit hosted in South Asia. The G20 comprises 19 countries and the European Union. While the summit is focused on discussing critical issues related to the global economy, it will also include discussions on cryptocurrencies.©Pexels/Studio Art SmileCrypto policy precursor to mass adoptionRegulations and policy frameworks around crypto will be a significant topic of conversation at the summit, alongside discussions on international financial stability. India’s Finance Minister, Nirmala Sitharaman, confirmed that G20 nations are working towards creating an effective Standard Operating Procedure (SOP) for regulating crypto during the summit.India has been taking a systematic approach to regulate the evolving crypto space, as evidenced by the nation’s evolving stance on cryptocurrencies and the recently launched central bank digital currency (CBDC) pilot. With this in mind, the G20 summit in Delhi is expected to provide a platform for countries to discuss and collaborate on effective crypto regulations and policy frameworks.According to Gracy Chen, Managing Director of the Singapore-based Bitget cryptocurrency exchange, more work on policy relative to crypto in India is bullish for the development of the sector within the South Asian country. “India’s consistent growth in adapting to cryptocurrencies and forming newer policies around it has made it a hub for tech investments. With more development and a policy framework, we can expect higher mass adoption. The G20 summit will be bullish for crypto’s growth in India,” Chen told Indian weekly English-language news magazine, India Today.During the 2022 Budget discussions, the government of India proposed some significant changes to the taxation of cryptocurrencies. As a premium investment product, cryptocurrencies are known for their high volatility, and the government believed that they should be subject to a heavier tax burden. Specifically, they introduced a 30% tax on capital gains earned through the sale of digital assets, as well as a 1% tax on Tax Deducted at Source (TDS) for all crypto transactions.The tax on capital gains applies to all digital assets, and the government intends to track historical records to ensure compliance. Additionally, the 1% TDS is applied to every single transaction, regardless of its size or frequency. These changes were seen by some as a trial framework, and many in the crypto space hoped for greater leniency from the government in the future. However, it remains to be seen whether the government will revise these tax policies in the coming years.CBDC pilot projectsFurthermore, the Reserve Bank of India (RBI) has recently launched two CBDC pilots to test the feasibility of digital currencies in India. The first pilot is a wholesale CBDC, which is being conducted in collaboration with nine banks.The second pilot is a retail CBDC, launched in December, which is being tested in four major cities across India — Mumbai, New Delhi, Bengaluru, and Bhubaneswar. The goal of these pilots is to evaluate the potential of digital currencies in facilitating secure and efficient transactions, as well as to study the possible impact on the traditional banking system.By exploring both wholesale and retail CBDCs, the RBI is taking a comprehensive approach to CBDC development, which may inform future decisions regarding the adoption of digital currencies in India.Chen maintains that “discussions around cryptocurrency policy frameworks accelerate the possibilities of mass adoption in the region.” “With over 750 million internet users, India holds the potential to not just pilot but establish real-life crypto and blockchain use cases for the masses,” she added.

Hong Kong Launches Web3 InstituteThe Institute of Web3 Hong Kong has recently been established with the aim of promoting and developing Web3 technologies, including blockchain and other decentralized technologies. That’s according to a report that was published by the Hong Kong China News Agency (HKCNA) last week.©Pexels/Zetong LiPromoting Web3 developmentThe Institute of Web3 Hong Kong aims to promote the development of Web3 technologies by providing education, research, and development support to individuals and organizations interested in these technologies. It will also serve as a platform for collaboration between different stakeholders in the Web3 ecosystem, including developers, entrepreneurs, investors, and regulators.The institute is being led by Joseph Yam, the former Chief Executive of the Hong Kong Monetary Authority (HKMA), and is expected to play a key role in the growth and development of Web3 in Hong Kong and beyond.Yam is well-known for his expertise in financial regulation and has been a strong advocate for the adoption of blockchain technology in the financial industry. In his new role as the head of the Institute of Web3 Hong Kong, he is expected to use his experience and knowledge to promote the adoption of Web3 technologies in Hong Kong and the wider Asia-Pacific region.Developing financial centerThe establishment of the Institute of Web3 Hong Kong is seen as a significant development in the growth of the Web3 ecosystem in Hong Kong. Hong Kong is already known for its strong financial industry, and the adoption of Web3 technologies could further enhance the city’s position as a leading financial hub in the region. The institute’s focus on education and research will also help to develop a skilled workforce that can support the growth of the Web3 industry in the future.The institute is expected to work closely with the Hong Kong government and other stakeholders to create a regulatory framework that supports the growth and development of Web3 technologies. This is important, as regulatory uncertainty is often cited as a barrier to the adoption of blockchain and other decentralized technologies.Precursor to investmentThe establishment of the Institute of Web3 is also expected to attract more investment in the Web3 industry in the region. The institute’s focus on education and research will help to create a favorable environment for startups and other organizations that are developing Web3-based applications.While China has not been a crypto-friendly region in recent years, there are increasing signs that Chinese officials are content to see Hong Kong develop as a hub for Web3-based technologies while keeping the sector under much stricter control within mainland China. Chen Dong, Deputy Director at the Liaison Office of the Central People’s Government in Hong Kong has publicly praised Hong Kong’s push to become a regional center for Web3 innovation. Meanwhile, Li Feng, the Chairman and CEO of China Mobile, has been installed as the non profit’s honorary chairperson.The establishment of the Institute of Web3 Hong Kong is a significant development in the growth and development of Web3 technologies in the Asia-Pacific region. The institute’s focus on education, research, and collaboration will help to promote the adoption of Web3 technologies and create new business models in various industries. With the leadership of Joseph Yam, the institute is expected to play a key role in the growth of the Web3 ecosystem in Hong Kong and beyond.

HTX experiences $258 million outflow post-hackHTX, the digital-asset trading platform associated with Chinese-born crypto mogul Justin Sun, has witnessed a substantial net outflow of $258 million since resuming operations after a significant security breach.According to Bloomberg, data from DefiLlama indicates that the outflow occurred between the exchange’s restart on Nov. 25 and Dec. 10, signaling unease among some clients following last month’s cyberattack. In November, HTX reported a loss of $30 million in crypto tokens due to the breach, prompting a temporary suspension of withdrawals and deposits.Towards the end of last month, the platform re-enabled withdrawal services for major cryptocurrencies, gradually bringing the exchange back to full service, supporting withdrawal of all digital assets.Photo by Amritanshu Sikdar on UnsplashMultiple hacksJustin Sun is also associated with the Poloniex exchange and the HECO Bridge, a network established by HTX for blockchain transfers. Both Poloniex and HECO fell victim to hacks in November, resulting in the theft of approximately $200 million in crypto. It’s worth noting that hackers had previously stolen $8 million from the HTX platform in September.HTX, which was formerly known as Huobi up until a business rebrand in September, boasts an average trading volume of $1.5 billion in the past 24 hours, securing its position as the fifteenth largest exchange when measured in terms of trading volume.Increased vigilanceIn the wake of several high-profile crypto platform failures in 2022, digital-asset investors are increasingly vigilant about monitoring flows and reserves at virtual currency exchanges. In particular, that trend gained momentum after the FTX platform’s collapse last year due to fraud.November turned out to be the most damaging month this year so far in terms of platform digital asset theft. Exit scams and exploits encountered during the month totaled a staggering $363 million in losses.In October, the UK’s Financial Conduct Authority (FCA) included HTX, alongside KuCoin, on a warning list, due to their promotion of services in the UK, without having obtained the required regulatory approvals.A third of reserves in BitcoinDefiLlama data reveals that Bitcoin constitutes the largest portion of HTX’s reserves, accounting for approximately 33%. Tron’s TRX token, launched by Sun in 2017, represents around 32% of the reserves. HTX’s native exchange coin, HT, makes up 14%, followed by a Sun-backed token named stUSDT at 12%.In August, Travis Kling, Founder of Ikigai Asset Management, had this warning relative to Sun and HTX:”Justin Sun is a criminal. There’s a hole in Huobi, a hole in TUSD and a hole in Tron DeFi. Act accordingly.”TRX, at the center of U.S. fraud allegations against Sun, prompted a March lawsuit by the Securities and Exchange Commission (SEC), accusing him and his firms of market manipulation to inflate the token’s trading activity. Sun dismissed the suit on the X social media platform back in March, stating that it “lacks merit.” On Sunday, Sun claimed that the Tron blockchain network which he founded had reached a new milestone of 200 million users.Despite security firm BlockSec reporting the recovery of the $8 million stolen in September, hackers still appear to control the $30 million taken last month. The ongoing situation raises concerns about the security measures and resilience of HTX in the face of persistent cyber threats.