Nomura’s Laser Digital Expands Crypto Venture Capital Arm with New Partner

Hong Kong Moves to Enable Retail Crypto TradeHong Kong’s Securities and Futures Commission (SFC) has moved to enable retail participation in crypto trading within the Chinese autonomous territory.The SFC has arrived at that determination, according to a report it published on Tuesday. The report, titled “Consultation Conclusions on the Proposed Regulatory Requirements for Virtual Asset Trading Platform Operators Licensed by the SFC (Note 1),” provides an overview of the nature of feedback the Commission received as part of its consultation process relative to virtual asset trading.Photo by Ben Cheung on PexelsRetail investor protectionIn the press release which accompanied the report, the Commission outlined that “a significant majority of respondents agreed to our proposal to allow licensed trading platform operators to serve retail investors.” On that basis, the SFC is moving forward in enabling retail trading of crypto assets through licensed virtual asset trading platforms effective June 1, and it’s setting out to do so while implementing a number of measures to protect retail investors.That will include ensuring that operators provide an appropriate on-boarding process. In the case of crypto asset projects, the SFC is determined to see to it that good governance is implemented, alongside enhanced token due diligence, admission criteria, and disclosures.In the statement, the SFC’s CEO Julia Leung, said that “providing clear regulatory expectations is the key to fostering responsible development.” She added that “Hong Kong’s comprehensive virtual assets regulatory framework follows the principle of ‘same business, same risks, same rules’ and aims to provide robust investor protection and manage key risks. This will enable the industry to develop sustainably and support innovation.”Specific conditionsOne item that the SFC’s new rule-book on virtual asset trading for retail investors outlines is a ban on crypto “gifts.” Effectively any promotions or incentives that lead with free gifts, and this will likely include token airdrops, will be prohibited.In terms of capital liquidity, virtual asset exchanges will be required to maintain a minimum of 5,000,000 Hong Kong dollars ($638,000) at all times as a minimum paid-up share capital. A Platform Operator must at all times maintain liquid capital which is not less than its required liquid capital,” the document outlines.Token due diligenceThe SFC acknowledged that it can be difficult for virtual asset exchanges to carry out due diligence on new tokens. With that in mind, it has incorporated a requirement for any new token to have a twelve-month track record before it can be considered to be listed to provide an indication of such things as supply, demand, maturity, and liquidity. In that way, exchanges have some data to work with in carrying out token due diligence.Smart contracts have been a point of weakness in recent years, with considerable sums lost through hacks that have exploited smart contract code vulnerabilities. To that end, the SFC insists that as part of token due diligence, new assets will have to undergo smart contract audits performed by independent assessors.Given that the spate of recent crypto platform failures implicated loss of customer deposits, the rule-book considers the need for segregation of client funds. Exchanges will need to segregate funds and can either hold them separately from the assets of the exchange itself or have them held in escrow.

BSN Foundation launches in Singapore with five global membersThe BSN Foundation, a Singapore-based organization dedicated to building global blockchain infrastructure, on Thursday officially announced its five founding members from different regions and sectors.Photo by Julien de Salaberry on UnsplashBroad representationThe founding members of the BSN Foundation include Blockdaemon, a leading institutional digital asset wallet provider; Zeeve, a Los Angeles-based blockchain infrastructure automation platform; TOKO, a Hong Kong-headquartered digital asset creation platform; GFT Technologies, a German tech firm specializing in financial services and Red Date Technology, a tech firm behind the BSN Spartan Network located in Hong Kong.Representatives from these entities gathered at the Pan Pacific Singapore on Thursday for a launch event. The BSN Foundation will act as the governing body of the BSN Spartan Network, a public infrastructure network based on open-source virtual data centers. The launch of the foundation marks a major milestone in the BSN’s global expansion and its vision to establish a decentralized public layer of the internet.In discussion with Cointelegraph, Tim Bailey, the Vice President of Global Business at Red Date Technology, stated:“The BSN Foundation launch is a vital step in our global expansion, demonstrating the international recognition and support for the BSN Spartan Network’s concept and goals.” He added:“These organizations bring expertise in areas like blockchain-as-a-service, asset tokenization, financial services, and consulting, highlighting the wide applicability and potential of the BSN Spartan Network.”Bailey emphasized that the BSN Spartan Network is designed to change the application and governance of public chain technology. “By focusing on non-cryptocurrency public chains and a decentralized governance model, we’re not just innovating in technology but also in how global collaborations can shape the future of IT infrastructure,” Bailey stated. BSN’s strategy is focused on creating a “more stable and accessible network” for businesses around the world, distancing itself from the volatility related to traditional cryptocurrencies like Bitcoin.Chinese originsThe BSN Spartan Network, launched in September 2022, features a non-tradable token (NTT) issued on its default chain. Each of the network’s data centers is equipped with a single registered NTT wallet for managing and holding these tokens. NTTs can be acquired using fiat currency, selected stablecoins or through various incentive programs.The BSN Spartan Network, which originated in China as the “Blockchain-based Service Network” in early 2020, was developed with the backing of the Chinese government.“BSN was indeed originally initiated in China. However, the BSN Spartan Network, governed by the Singapore-based BSN Foundation, is distinct from the BSN Networks in mainland China,” Bailey stated. He highlighted that the BSN Spartan Network is constructed following global standards, is entirely open source and maintains independent operations from the BSN Networks present in mainland China.UDPN proof of conceptBSN, driven by Red Date Technology as its lead developer, had outlined plans to develop a universal digital payments network (UDPN) as early as 2021. That project continues to progress. Last month, it emerged that SC Ventures, the Singapore-based fintech investment subsidiary of British banking conglomerate Standard Chartered, had partnered with Deutsche Bank in a first proof of concept (POC) of the UDPN. That POC resulted in real-time transfers and swaps of synthetic USDC and EURS stablecoins between the two banks.

SBINFT and JPNFT Collaborate to Establish A Secure NFT Market in JapanSBINFT, a Japanese company specializing in NFT consulting and marketplace services, has joined forces with JPNFT, a Japanese platform dedicated to establishing a secure NFT market by combating unauthorized NFTs, according to a press release. Together, these entities are working towards the development of a marketplace that ensures users have access to secure and authorized NFTs, with the overarching aim of promoting the distribution of legitimate digital assets.Photo by Choong Deng Xiang on UnsplashRise of NFTsThe advent of blockchain technology has revolutionized the way digital assets are valued and their ownership is determined. This transformative technology has enabled the creation of non-fungible tokens (NFTs), which now serve as digital representations of various creations and are actively traded on dedicated marketplaces.Unauthorized NFTsSince 2021, numerous new players have entered the global NFT landscape. As of March 2023, OpenSea, the world’s largest NFT marketplace, boasts a monthly trading volume of $430 million. While this growth signals promising market development, it also brings forth challenges stemming from the proliferation of pirated and unauthorized NFTs. Considering Japan’s esteemed international reputation in the realms of art and content, the country possesses the potential to emerge as a significant player in the NFT market. However, to realize this potential, appropriate measures must be swiftly implemented to guarantee security and authenticity within the industry.License check & certification markIn order to tackle this challenge, SBINFT and JPNFT have joined forces to establish a safe and sound NFT market that ensures the availability of genuine NFTs for users. As part of this collaboration, content NFTs registered on the NFT disclosure information platform called “jpnft” will undergo a verification process for authenticity when traded on the “SBINFT Market.” This verification process will involve an official license check as well as the inclusion of a JPNFT certification mark.The launch of jpnft content on the SBINFT Market is planned for the summer of 2023. The jpnft platform plays a crucial role in distinguishing between licensed NFTs and unauthorized ones by publishing official information related to NFTs based on Japanese intellectual properties. Licensed NFTs will be either issued directly by rights holders or authorized by them. It’s worth noting that the jpnft platform was developed as a project supported by the subsidy for “Japan content localization and distribution (J-LOD)” in the 2021 Supplementary Budget of the Japanese Ministry of Economy, Trade and Industry.Previously known as nanakusa, the SBINFT Market is built on two public chains (Ethereum and Polygon) and is committed to becoming a global open marketplace and. With a focus on providing a secure trading environment, the SBINFT Market meticulously reviews NFTs to safeguard users from potential risks such as fraud and hacking.Both SBINFT and JPNFT share a common philosophy that emphasizes the security of NFTs and the healthy development of the industry. With this shared vision, the SBINFT Market aims to enhance its content offerings and position itself as an authorized NFT marketplace that handles NFTs on jpnft.Government initiativeLast month, the Working Group for Digital Society Promotion under Japan’s ruling Liberal Democratic Party (LDP) presented a proposal to Prime Minister Kishida Fumio regarding the Web3 industry. This proposal recommended the implementation of measures to safeguard Japanese content and data from unauthorized monetization by foreign entities. This initiative highlights the government’s endeavor to protect and promote the integrity of Japan’s digital assets.