Axie Infinity Teams Up with CyberKongz in Blockchain Gaming Revival

China Furthers Efforts to Shape the MetaverseFindings by US political media outlet POLITICO suggest that Chinese authorities and state-owned companies are seeking to mold the metaverse in line with existing systems in China such as the country’s social credit scoring system.The concept of the metaverse entails a network of interconnected immersive virtual worlds powered by virtual reality, augmented reality, and simulations. Development in this area is centered around applications such as online gaming and virtual events.Photo by Hanson Lu on UnsplashDigital Identity SystemIn a report published on Sunday, POLITICO referenced recently drafted proposals put forward by China Mobile, a state-owned telecoms operator. The proposals outline a “Digital Identity System” for users within online virtual worlds and metaverses.These proposals recommend the use of “natural characteristics” and “social characteristics” within digital IDs, encompassing personal data such as occupation, “identifiable signs,” and other attributes. Moreover, they suggest storing this information “permanently” and sharing it with law enforcement to ensure order and safety within the virtual realm.Setting agreed benchmarks for emerging techThe proposals present a hypothetical scenario involving a disruptive user named Tom, who causes turmoil in the metaverse. The digital identity system, according to these proposals, would facilitate prompt identification and punishment by law enforcement.These discussions are occurring within the framework of the International Telecommunication Union (ITU), a United Nations (UN) agency responsible for establishing global technology standards. This strategy echoes China’s endeavor to set worldwide benchmarks for emerging technologies.The ITU, as a UN agency, holds significant sway in defining global telecommunications and technology infrastructure standards. Given that the US and China have quite different outlooks when it comes to technology governance, particularly the future development of the internet and related technologies, the ITU has become a means through which common ground can be found and differences resolved.Upcoming vote on proposalsChina Mobile’s proposals, presented during the ITU’s metaverse focus group meeting, are poised to be voted on during the next meeting in October in Geneva. The company is the largest mobile operator by subscriber base. Demonstrative of ongoing tensions that exist between the US and China, the company was delisted from the New York Stock Exchange in 2021 following a US executive order.Chinese organizations are reportedly submitting more proposals than their Western counterparts, demonstrating that China is very much taking a lead in metaverse development. It’s evident that there is a clear strategy for China to establish itself in furthering this technology.In May, Alibaba Cloud, a subsidiary of Chinese e-commerce giant Alibaba Group, entered into a partnership with layer one blockchain Avalanche to better enable businesses to deploy metaverses. Around the same time, an administrative body within China’s Henan Province established a $22 million dollar investment fund, focused on financing metaverse-related ventures.Later that month, the city of Zhengzhou announced a set of policy proposals designed to support the growth and development of metaverse companies in the region.Within the Chinese autonomous territory of Hong Kong too, there has been plenty of metaverse-related activity. Metaverse start-up Artifact Labs completed a funding round with a view towards expanding its operations. The city is home to Animoca Brands, a prominent player in metaverse-related development.

Taiwanese cryptocurrency exchange under investigation for money launderingBitgin, a cryptocurrency exchange in Taiwan, is currently under police investigation for alleged money laundering, with its Chief Operating Officer, Yuting Zhang, arrested in connection to the infamous “88 Guild Hall” money laundering incident. The exchange is cooperating fully with the investigation and has assured users that its operations remain unaffected.Photo by Adam Jang on Unsplash‘88 Guild Hall’ scandalThe “88 Guild Hall” scandal, which unfolded from late 2021 to March 2022, implicated Zhang in a massive money laundering network. The controversy exposed a multi-billion dollar operation orchestrated by local businessmen Zhemin Guo and Chengwen Tu, utilizing a network of foreign exchange offices and crypto exchanges.Yuling Tsai, General Counsel of the Taiwan VASP Association, addressed the situation, stating: “This time, a member of the preparatory group was involved in the investigation case. The preparatory group immediately held a meeting and issued a public response. The members involved in the case also took the initiative to suspend participation in the work of the preparatory group.”Business as usualIn an official statement, Bitgin confirmed Zhang’s association with the scandal and clarified that the ongoing investigation has not disrupted its operations. The exchange emphasized its commitment to cooperating with authorities, providing all necessary assistance to facilitate a smooth investigation process.The statement reads: “At present, Bitgin is fully cooperating with the investigating unit and actively providing all necessary assistance to ensure the smooth conduct of the investigation and hopes that the facts can be clarified as soon as possible.”Bitgin also confirmed that in light of the charges, the COO has ceased all communications with counterparties.Focus on regulationTaiwan’s Financial Supervisory Commission (FSC) outlined earlier this year its intention to restrict the activity of non-compliant offshore crypto exchanges. While cryptocurrency exchanges are not officially regulated yet, local operators have taken cues from the FSC to move towards self-regulation. A preparatory group was formed in September with Bitgin participating as a founding member.While Taiwan still doesn’t have a regulatory framework in place, it has applied anti-money laundering (AML) regulation to crypto businesses. In August, leading crypto exchange Binance initiated steps to register for AML compliance in Taiwan.Earlier this year, Taiwanese officials suggested that they would foster self-regulation while proposing the classification of crypto regulations within their own unique business category. Efforts were furthered last month when legislators introduced a cryptocurrency bill for its inaugural reading.JPEX falloutBeyond Bitgin, Taiwan is grappling with the fallout from wayward crypto exchange JPEX, which is accused of orchestrating Hong Kong’s largest financial scam. The authorities raided the local office of JPEX and identified suspects involved in the alleged fraud. To compound matters, local police also uncovered a $320 million crypto money laundering operation earlier this month.The incidents highlight the ongoing challenges faced by regulators in the region as they strive to protect investors from fraudulent activities.As the investigation unfolds, the Taiwanese cryptocurrency industry, along with its self-regulatory initiatives, remains under scrutiny, emphasizing the broader need for regulatory frameworks to safeguard the interests of investors and maintain the integrity of the market.

Animoca Brands Holding $3.4B in Cash and ReservesDigital entertainment, blockchain and gamification firm Animoca Brands provided an update on its financial position on Thursday, disclosing $3.4 billion in cash and assets as held on its balance sheet and in tokenized reserves as of April 30.Photo by regularguy.eth on UnsplashA financial breakdownThe Hong Kong-based Web3 firm published the interim financial report to its website. Breaking that down further, the company is holding $194 million in cash and stablecoin reserves. Additionally, $566 million is being held in liquid digital assets. This includes reserves of $SAND, the native token of the Ethereum-based Sandbox virtual metaverse.Beyond this, Animoca holds $2.7 billion in a varied portfolio of digital asset reserves, linked to its majority owned Web3 subsidiaries and portfolio companies. The firm outlined that it intends to release additional financial updates in the near future. That will include an audited financial statement for 2020. Furthermore, a summary statement of business activity for 2022 will be released, together with similar business highlights pertaining to Q1, 2023.Adjusting to changing market conditionsIt’s likely that Animoca took the decision to release this data at this point to bolster confidence in the company, off the back of a number of announcements that may have led some in the industry to question the overall financial health of the company.According to a report published in March by Reuters, Animoca Brands cut its target for its metaverse fund by 20% to $800 million. The scaling back was understood by many crypto sector commentators to be a reaction by the company due to changing market conditions within the crypto space. It was the second such adjustment the company made. In November 2022, the firm was working on the new fund, initially proposing a target of $2 billion. Once January came around, Animoca took the decision to scale that target back by half to $1 billion.Subsequent to reports of the fund scale-back being published, Animoca Brands CEO Yat Siu reacted, telling one crypto media outlet that “the claim that the Animoca Capital fund target was ‘cut’ from $2 billion to $1 billion is not correct, because $1 billion has always been within the range declared.”Playing down the news further, the company added: “There’s no doubt that the FTX and banking crises have had a serious impact on available venture capital, but fundraising for the Animoca Capital fund is in progress. When the raise is concluded, we will inform the market with the appropriate details, including the final size of this fund.”Siu stated that as the source of that report was an unnamed source, it was difficult to figure out the agenda of that person in broadcasting that claim.Animoca is perceived in the industry as a key player, particularly so when it comes to NFTs, blockchain-based gaming and the metaverse. The firm is classed as a Crypto Top 40 company by Forbes, while being a winner of Deloitte’s Technology Fast 50 award. Deloitte’s Technology Fast 50 program ranks fast growing companies based upon their percentage revenue growth over the course of three years.