Bitget Achieves 20M Users With Wallet Integration Driving Trading Volume

Japan Moves to Allow Startups to Sell Digital Tokens to VC FundsIn a move that further advances Japan’s efforts in the digital assets space, the country is poised to permit startups to raise capital from venture capital firms using digital assets instead of traditional stock.The approval of this approach will provide a broader spectrum of funding options for emerging companies deeply entrenched in the world of blockchain technology.Photo by Bagus Pangestu on PexelsAcceptance beyond conventional assetsCurrently, limited partnerships in Japan are predominantly associated with conventional assets such as shares, stock options, and security tokens defined by local securities laws. However, according to a report published by local financial daily Nikkei Asia on Friday, an impending rule change is set to expand this list to encompass other tokens and crypto assets, heralding a fresh era of investment opportunities in a domain that has remained relatively under-explored within the country.The Japanese government is on track to present the requisite legal revisions to the parliament, with expectations for this transformational move to occur as early as 2024. Unlike traditional shares, blockchain-based tokens offer the unique advantage of swift creation without the need for intermediaries or brokerage services.Consequently, fundraising via digital assets is becoming the preferred choice for companies operating in the cutting-edge realm of Web3 technologies, including blockchain.In Japan, a number of companies, such as the blockchain developer HashPalette, have already raised substantial amounts through token offerings. However, the existing limitations obstructing limited partnerships from investing in tokens have hindered Japanese venture capital firms and institutional investors from partaking in the burgeoning success of Web3 enterprises.Overseas token issuanceTraditionally, startups have resorted to issuing tokens in overseas locations like Singapore and Dubai. On the venture capital front, Japanese powerhouse Skyland Ventures ventured into tokens through its Singapore-based subsidiary.Notably, Japan’s Financial Services Agency (FSA) is contemplating a tax code revision for fiscal year 2024 and beyond, with the objective of exempting crypto assets and tokens from taxes on unrealized gains based on market value. This strategic move aims to eliminate a significant deterrent for potential investors in the field.While venture capital firms are eagerly anticipating this legislative change, some, like B Dash Ventures, acknowledge that the revision of the limited partnership law alone may not trigger an immediate surge in fundraising via virtual currencies. Nevertheless, it marks a significant step toward fostering a more conducive environment for digital asset investment.Removal of limited partnership restrictionsJapan’s forward-looking approach also extends to the removal of restrictions on limited partnerships that previously mandated them to invest more than half of their capital within the domestic market. This move is expected to bolster profits, empower venture capital firms with more substantial capital reserves, and ultimately fuel investment in domestic startups.Japan’s decision to embrace the potential of digital assets for startup fundraising is a progressive move. Initial exchange offerings (IEOs) are already authorized in Japan, but this proposed funding mechanism would offer a new channel through which Web3 innovation can be financed within the East Asian island nation. Given that most Web3 startups raise funds in this way, it will mean that Japanese-based firms in the Web3 space will be able to develop and participate fully as this innovation rolls out further on a global basis.

Crypto.com Complies with UK FCA’s New Digital Asset RulesWhile some Asian crypto platforms are struggling to comply with the United Kingdom’s Financial Conduct Authority (FCA) regarding new marketing-related rules that took effect on October 8, Singapore’s Crypto.com has confirmed its successful compliance. The firm is registered as FORIS DAX UK LIMITED on the FCA website.Photo by Paul Fiedler on UnsplashContinuing support for UK customersAs a result, UK customers can continue to access Crypto.com’s products and services without disruption. The company emphasized its commitment to strengthening its platform and presence in the UK market. Crypto.com stated that it fully supports measures aimed at enhancing consumer safety and security in the cryptocurrency industry. The company also expressed its ongoing cooperation with UK and international regulators to foster consumer confidence in the crypto sector.Effective from October 8, the FCA’s updated guidelines mandate that all crypto firms marketing their services to UK consumers must register with the FCA and adhere to relevant standards concerning risk disclosures and marketing practices.Regulatory compliance challengesWhile Crypto.com has managed to remain compliant, that’s not the case for all large and well-known crypto platforms. The FCA recently expanded its scrutiny of digital currency exchanges by adding Huobi and KuCoin to its list of unapproved and unregistered firms.The FCA alerted clients to the fact that these service providers were offering various crypto services in the UK without obtaining regulatory approval. This development follows a recent warning from the FCA, which highlighted several other crypto-focused companies.Binance’s compliance difficulties2023 has seen global crypto platform Binance struggle with regulatory compliance in various markets worldwide. In some jurisdictions where it has either decided to withdraw from the market or been asked to leave, the firm has taken the approach of still maintaining exposure to that market by establishing a partnership with a locally registered firm.In the UK, Binance has partnered with Rebuildingsociety.com, a peer-to-peer lending platform. However, its local partner has fallen foul of the UK's FCA. On Tuesday, the UK regulator issued a notice clarifying that Rebuildingsociety.com was not authorized to “approve the content of any financial promotion for a Qualifying Cryptoasset for communication by an unauthorized person.”Dubai-headquartered crypto exchange Bybit is another crypto business that has struggled with the FCA's new regulatory requirements. Last month the exchange denied reports that it was preparing to leave the UK market due to the new strict marketing rules. The following week the exchange confirmed that it would be leaving the UK market, ahead of the introduction of the new crypto marketing regulations.Crypto.com had received registration approval from the FCA in August 2022. At the time, CEO Kris Marsazalek stated:“We are committed to the UK market and we look forward to developing our platform and presence in the UK further by expanding our offering to customers, while continuing to work with regulators.”In June, the firm acquired a Major Payment Institution (MPI) license in its home market of Singapore from the Monetary Authority of Singapore (MAS). Around the same timeframe, the firm received a minimum viable product (MVP) license from the Virtual Assets Regulatory Authority (VARA) in Dubai.

In the Philippines, the Department of Budget and Management (DBM) has introduced an on-chain system utilizing the Ethereum layer-2 network Polygon to notarize and track documentation and the expenditure of public funds. The government contracted Manila-headquartered blockchain technology company BayaniChain Ventures in order to implement the system. The firm took to social media on July 31 to provide details on the DBM Blockchain Project.Photo by GuerrillaBuzz on UnsplashBuilding trust into infrastructureBayaniChain Ventures CEO Paul Soliman outlined that the new system “builds trust into the infrastructure itself.” The DBM Blockchain Project connects a DBM internal platform, the Action Document Releasing System (ADRS), which creates official budget documentation, with the Lumen Blockchain-as-a-Service (BaaS) system created by BayaniChain.  Lumen functions as a core framework, enabling government systems to connect securely with blockchain infrastructure. Consequently, Lumen facilitates the tokenization of government documents, managing access to those documents and publishing data to a portal. A third system, Prismo Protocol, interacts with Lumen and ADRS, determining what documentation should be shared with the public and what documentation should remain accessible exclusively to DBM staff.The upshot of the interaction of these systems is that select budget documentation is published to the Polygon blockchain. Soliman stated that the system provides transparency, enabling members of the public to “see proof, not just promises” with regard to the activity of the government department. Integrating blockchain into public governanceThe Undersecretary at DBM, Maria Francesca Montes Del Rosario, took to Facebook on July 30 to confirm that the DBM blockchain initiative had gone live. She described it as the “first ever Transparency Government Blockchain for immutable and verifiable action documents.” She added: “We are using cutting edge technology like AI, blockchain, satellite imaging to enhance how we do public policy and governance.”Del Rosario was quoted by local media as stating that the technology combats the problem of AI deepfakes and fake documents. Another stakeholder in the development of the system was Exakt IT Services, a local company that specializes in assisting government organizations in the Philippines to bring about digital transformation. Exakt was awarded a contract by DBM to act as a technology partner, supporting the project with technical expertise and infrastructure in order to bring about the implementation of the blockchain solution. BayaniChain’s Soliman believes that the new system “sets a precedent for transparency and accountability in public finance.” However, the timing of the launch of the service proved to be unfortunate, as it coincided with an outage suffered by the Polygon network. The outage, which lasted for one hour, disrupted apps running on Polygon. On X, Polygon CEO and Founder Sandeep Nailwal asserted that the incident didn’t prevent the blockchain from operating or producing blocks and with that, user transactions on the network were still being processed.In better news for the blockchain network, Crypto Analyst Lennaert Snyder reported on July 31 that Polygon has reached a yearly high of $1.2 billion in total value locked (TVL), an 80% increase since March.