Alchemic Investment and Nanuhm Angels Collaborate to Boost Web3 and Blockchain Investments

Fasset becomes sixth crypto firm to secure VARA licenseFasset FZE, a digital asset brokerage based in Dubai in the United Arab Emirates (UAE), has successfully obtained a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA).This achievement, evidenced by a listing on VARA’s website on Wednesday, marks the culmination of VARA’s approval process, granting Fasset the authorization to provide broker-dealer services through its Web3-based financial services platform to a broad spectrum of clients, including both retail and institutional investors.Fasset, with a focus on practical applications of digital assets underpinned by blockchain technology, offers a range of services encompassing stable cryptocurrencies, tokenized commodities, precious metals and fiat currencies.Photo by Hongbin on UnsplashInvestcorp fundingSimultaneous with securing the VARA license, Fasset announced an upcoming investment from global investment manager Investcorp ahead of its Series B funding round, although the exact funding amount remains undisclosed. In 2022 the firm raised $22 million in Series A funding. With plans for a beta launch scheduled for this month and a full roll-out in January 2024, the startup is attempting to make an impact on the market.Mohammad Raafi Hossain, the CEO of Fasset, underscored the strategic importance of the VARA license in advancing the company’s mission to facilitate access to digital assets in emerging markets. In a post published on Thursday via the company’s LinkedIn account, Hossain outlined that this approval plays a crucial role in Fasset’s global licensing strategy, enabling seamless asset transfers across high-traffic remittance corridors, particularly from the Gulf Cooperation Council countries to Asia.Targeting emerging marketsHossain remarked:“Fasset’s focus on enabling people across emerging markets to access to digital assets is bolstered with this permission from VARA in UAE. As one of the most progressive regulatory frameworks in the world, the VARA approval is a crucial link in our global licensing portfolio, connecting places like Indonesia, Malaysia, Bangladesh, Pakistan, and Turkiye through blockchain.”The countries Hossain mentioned are precisely the markets that the firm is attempting to target. In August the firm launched an app which allows users to buy, sell and swap various cryptocurrencies with those markets in mind. Earlier in the year, Fasset had partnered with Mastercard in an effort to expand its service and product offering in IndonesiaWorking towards compliant frameworksFasset has been proactive in engaging with regulatory bodies, dating back to its establishment in 2019. The fledgling firm is now reaping the benefits of following that approach of regulatory compliance. The founding team’s prior collaboration with the UAE Prime Minister’s Office in crypto regulation laid the groundwork for compliant frameworks, something that is seen by officials as essential to the UAE’s technological progress.Dubai’s emergence as a key player in the cryptocurrency industry is evident, with an increasing number of crypto companies setting their sights on the Middle East, particularly Dubai, as a potential hub. In the month of November alone, five distinct entities, including CFI, GCEX, HEX, Crypto.com and Ripple, secured authorization from Dubai for crypto operations, showcasing the growing prominence of the region.

Korean Supreme Court acquits Dunamu Chairman Song Chi-hyungThe Supreme Court of South Korea, in a significant ruling on Thursday (local time), acquitted Song Chi-hyung, chairman and principal stakeholder of Dunamu, of fraud and forgery charges, according to a report by local news agency Yonhap. This ruling is particularly noteworthy because Dunamu is the operator of the nation’s largest cryptocurrency exchange, Upbit.This decision, led by Justice Oh Kyung-mi, marks the culmination of a legal battle that began with Song’s indictment in Dec. 2018, and it extends to the acquittal of the company’s Chief Financial Officer (CFO) and the head of the Data Value Team, who were jointly indicted.Photo by Tingey Injury Law Firm on UnsplashBackground of the caseSong Chi-hyung and his colleagues were alleged to have fabricated an account on Upbit between September and November 2017. They had been accused of feigning the deposit of assets valued at KRW 122.1 billion and then employing these fictitious funds to enable transactions among actual members.The prosecution also leveled fraud charges against them, claiming that the fabricated account was utilized to sell 11,550 bitcoins to 26,000 members, thereby generating KRW 149.1 billion.The Seoul Southern District Court, acting as the court of first instance, found them not guilty. The court reasoned that the evidence presented by the prosecution was insufficient to establish that the defendants actually deposited the assets in the account.Issues with the prosecution’s evidence gatheringThe Seoul High Court, serving as the appellate court, identified problems with the evidence provided by the prosecution, determining that part of it lacked credibility due to improper collection methods. Notably, the court observed that the prosecution had directed Dunamu employees to access their Amazon cloud server to download the account’s transaction history. However, since this remote server was not included in the search and seizure warrant, the court highlighted the illegitimacy of the evidence.The appellate court also pointed out another issue with the evidence: documents stored on the CFO’s USB drive. The prosecution did not follow the legitimate search process, which requires them to extract only data related to the allegations. Moreover, the prosecutors did not present a warrant when confiscating the laptop of the Data Value Team’s lead, further undermining the credibility of their evidence.The court further stated that even if the remaining evidence provided by the prosecution was considered viable, it was still insufficient to substantiate the prosecution’s accusations.The prosecution, disagreeing with the decision of the appeals court, had escalated the case to the Supreme Court. However, the highest court in the nation sided with the ruling of the appeals court, effectively upholding the decision made at the appellate level.

Venture Smart Financial Holdings Ltd. (VSFG), a Hong Kong-based financial services company, is gearing up to initiate an exchange-traded fund (ETF) directly investing in bitcoin in the first quarter of this year.Photo by Kanchanara on UnsplashThat’s according to a report by Bloomberg on Friday. The move aligns with Hong Kong's strategic efforts to establish itself as a digital asset hub, and with that, the company plans to submit an application to the Securities and Futures Commission (SFC) for ETF approval. Brian Chan, the group head of investment and product at VSFG, expressed optimism about the potential of this market, setting a goal of achieving $500 million in assets under management by the end of the year. Long-term objectiveWhile the firm has taken the decision to focus on spot crypto ETFs amid a backdrop of spot bitcoin ETF approval in the United States earlier this month, it’s an objective the firm has been working on for some time. In June of last year, crypto media reported that VSFG were planning the launch of such a product. Notwithstanding that intention, the recent launch of several high-profile bitcoin funds in the United States, including offerings from BlackRock and Fidelity Investments, will likely assist the company in getting product approval in Hong Kong. Immediately following U.S. approval, a Hong Kong lawmaker suggested that the Chinese autonomous territory should respond proactively. Johnny Ng outlined that Hong Kong had to respond to secure its global position in developing the digital assets space in Hong Kong. Positive soundingsTowards the end of December, there appeared to be positive soundings on the possibility of spot bitcoin ETF approval in Hong Kong emerging from the local regulator. SFC CEO Julia Leung stated that the regulator was open to the notion of retail participation in spot crypto ETF products. Her comment was followed shortly afterwards by a joint announcement from the SFC alongside the Hong Kong Monetary Authority (HKMA) that they were prepared to accept applications for such funds. The approval process for such products typically takes weeks to months, following the precedent of traditional ETFs. Hong Kong presently permits futures-based crypto ETFs, with three already listed: CSOP Bitcoin Futures, CSOP Ether Futures and Samsung Bitcoin Futures. However, these funds have a combined asset value of around $50 million. Samsung Asset Management has not ruled out exploring the launch of a spot ETF, while CSOP Asset Management remains silent on the matter. VSFG is one of Hong Kong's first SFC-approved virtual asset managers, offering both traditional and digital wealth management services. Aegis Custody, a digital asset custodian, is in discussions with four asset managers about listing spot crypto products in Hong Kong. The regulatory requirements in the city may lead issuers to impose higher fees compared to the low management levies seen in many new U.S. spot bitcoin ETFs. Although bitcoin experienced substantial growth in anticipation of these U.S. products, it has seen a 10% decline since their trading commenced on Jan. 11. Nevertheless, many industry commentators expect a stronger bitcoin unit price in the medium to long term as a direct consequence of these products.