Indian Supreme Court Scolds Government over Crypto Regulation Delay

DV8, a Thai company that recently pivoted to become Southeast Asia’s first Bitcoin treasury firm, has carried out an initial capital raise to fund its new strategy. Up until recently, DV8’s business activites were confined to media, innovation and technology. It emerged earlier this month that the company was being acquired by a group of Bitcoin-focused investors.  The consortium includes privately-held Bangkok-headquartered investment firm Kliff Capital, hedge fund manager UTXO Management and Taipei-headquartered crypto-backed venture capital firm Sora Ventures. It also includes Simon Gerovich, the CEO of Metaplanet, Asia’s largest Bitcoin treasury company.Photo by Thought Catalog on UnsplashThai market potentialAt the time, Sora Ventures founder Jason Fang told Decrypt that there is great potential in the Thai market, giving DV8 the potential “to be the next Metaplanet on SET [Stock Exchange of Thailand]." The company recently appointed Chatchaval Jiaravanon as its new chairman. Jiaravanon currently serves as the founder and chairman of Water Asia and Charoen Energy, while independently owning Fortune magazine.  Alongside Jiaravanon, new appointments have also been made to the company’s board as it looks to revamp its leadership team to deal with the challenge of pivoting and pursuing a Bitcoin treasury strategy. Share issuanceA filing with SET on July 16 has revealed that the company has proceeded to raise 241 million baht, equivalent to $7.44 million. In raising this capital, the company issued 301,491,057 new shares. The shares were issued under DV8-W2 warrants with a strike price of 0.80 baht per share. Over the course of the past 12 months, a plethora of corporations around the world have adopted Bitcoin either as a strategic asset to hold on their balance sheets or they’ve taken matters further and followed companies like Strategy (formerly MicroStrategy) and Japan’s Metaplanet, with the Bitcoin treasury becoming the central focus of the business. Bitcoin treasury debateThe practice has proven to be controversial with some believing that Michael Saylor’s Strategy has found a workable approach using leveraged debt financing within TradFi to accumulate Bitcoin. Others like short seller Jim Chanos has called the Strategy approach “financial gibberish.” Chanos recently debated Bitcoin investor Pierre Rochard on the subject on The Investor's Podcast. The podcast provoked a discussion on X, with Grok, the AI bot integrated within X, coming down in favor of Rochard’s pro-Strategy argument, prompting Chanos to tell Grok that it was drunk and to stop posting.Aside from those companies that have pivoted entirely to Bitcoin treasury firms, many others who have started to accumulate some Bitcoin have been struggling companies.  Vincent Liu, chief investment officer at Taipei-headquartered Kronos Research said recently that “when struggling firms make sudden moves, it often feels like a short-term stunt or hype play." On the other hand, he added: “When a company builds a BTC treasury with strategy, conviction, and clear communication, it signals strength.” Taking to social media on July 14, Belgian economist and Bitcoin investor Tuur Demeester set out his thoughts on the opportunity that Bitcoin treasury companies are exploiting: “Who else in this world can borrow at below 0.5% interest rates, when real inflation is above 10%? Bitcoin Treasury companies seem to have found, or are creating, a growing hole in a giant dam.”

KOMSCO and KEPCO Cooperate on Blockchain TechnologyKorea Minting and Security Printing Corporation (KOMSCO) and Korea Electric Power Corporation (KEPCO) have recently agreed to cooperate on blockchain technology, as well as other information and communication technology, according to a press release by KOMSCO.©Pexels/Savvas StavrinosConnect and develop modelLast Thursday, KOMSCO held a seminar on tech cooperation with KEPCO in Daejeon, home to many Korean government agencies. At the seminar, both sides decided to embrace a connect and develop model, which is more advantageous than closed research and development models in terms of agility and cost-effectiveness.Digital transformationThe two agencies possess a wealth of advanced technologies: KOMSCO excels in NFT authentication and blockchain-based payments systems, while KEPCO holds a competitive edge in blockchain platforms. Both parties will explore various ways to collaborate in these areas to promote Korea’s digital transformation.More stable electricity gridFurthermore, KOMSCO is continuously expanding infrastructure for information technology, and deploying its security solutions to KEPCO is expected to bolster the stability of the country’s electricity grid.

India Offers Suggestions in the Development of G20 Crypto GuidelinesIndia submitted its Presidency Note on Tuesday, contributing to the global framework for cryptocurrency regulation under the auspices of the G20, a forum comprising the world’s 20 largest economies.The document aligns itself with the guidance provided by prominent entities including the Financial Stability Board (FSB), the Financial Action Task Force (FATF), and the International Monetary Fund (IMF).Photo by Swapnil Deshpandey on UnsplashKey Summit topicMany months in advance of September’s G20 Summit in New Delhi, it was clear that crypto regulation would be a key subject for discussion. The FSB’s guidelines, released in July, offer a comprehensive framework for regulating various crypto assets, particularly stablecoins, based on existing standards and principles. These guidelines encompass crucial aspects such as governance, risk management, disclosure, supervision, and cross-border collaboration.In May, the FSB’s Regional Consultative Group for Asia met in Cebu, in the Philippines. During that meeting, the FSB highlighted the risks implicated by digital assets.Published in June, the FATF guidelines put forth a universally applicable set of rules to combat money laundering and counter the risks of terrorist financing linked to cryptocurrencies. One of the main provisions is the “travel rule,” compelling crypto service providers to share customer information when conducting fund transfers.While the IMF guidelines are expected to be unveiled in August, they will encompass a synthesis paper that offers a comprehensive roadmap for crypto regulation. This roadmap is designed to reflect input from multiple stakeholders and jurisdictions.India’s supplementary additionsAmidst endorsing these global crypto guidelines, India also proposes supplementary additions, particularly highlighting the challenges faced by developing economies in the crypto realm. The document underlines that these nations may grapple with capacity and resource constraints when implementing effective crypto regulation and supervision.Furthermore, they might require more extensive access to reliable data regarding crypto activities and associated risks. Developing economies are also at a heightened risk of falling victim to illicit crypto use, including money laundering, tax evasion, and cyber-crime.In light of these concerns, India advocates for the inclusion of developing economy-specific considerations in the FSB’s guidelines. The country also urges for technical assistance and capacity-building support to be extended to these nations. Additionally, it proposes a global outreach initiative to raise awareness of the risks, commencing with nations experiencing higher levels of crypto adoption.Broadening the scopeAnother noteworthy suggestion from India is an extension of the regulatory approach beyond the G20’s scope, encompassing the broader digital economy. While recognizing that crypto is merely one facet of the sweeping digital transformation reshaping multiple sectors, India’s document underscores the need for enhanced cooperation and coordination among various stakeholders and authorities at both national and international levels.In this vein, India proposes that the G20 contemplate formulating a comprehensive framework for the digital economy. This framework should encompass a wide array of concerns, including data governance, digital taxation, digital identity, digital inclusion, and fostering digital innovation, according to the document.India’s exploration of diverse aspects related to cryptocurrency — ranging from legal status to taxation implications, central bank digital currency (CBDC) potential, and innovation possibilities — further underlines its desire to see greater international cohesion in relation to the regulation of digital assets.