Hong Kong’s Metalpha Secures $5M Investment from Bitmain

The recent 19b-4 approval of spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) is putting pressure on South Korean financial regulators to revisit their policies on digital assets. The SEC's decision to allow ETFs for Ethereum, the world's second-largest cryptocurrency, on May 24, 2024, follows its earlier endorsement of Bitcoin ETFs in January 2024. This move is seen as a significant step in merging traditional finance with the digital asset sector.Photo by DrawKit Illustrations on UnsplashKorean regulatory cautionIn contrast to the progressive stance in the U.S., the Korean Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) have maintained a cautious approach regarding the integration of crypto assets into traditional securities markets. According to current regulations under the Capital Markets Act, ETFs in Korea are limited to traditional underlying assets such as financial instruments, securities, international currencies and commodities. These foundations are crucial for the creation of financial derivatives, leaving little room for digital assets under current laws. Calls for regulatory reforms and market implicationsThe decision by the SEC is expected to influence the Korean regulators to update their views on digital assets, according to local media and industry experts. Jung Eui-jung, the head of the Korean Stockholders’ Alliance, has advocated for Korea to emulate the U.S. by approving Bitcoin and Ethereum ETFs. He expressed concerns that continued regulatory hesitance could lead to investor funds migrating to more progressive markets like the U.S., potentially positioning the U.S. to broaden its crypto market further. Xangle, a digital currency data provider in Seoul, has also criticized the current regulations as outdated, emphasizing the need for revisions to accommodate the increasing relevance of digital assets in global finance. 

ICP Planning Hong Kong HubThe development team behind the Internet Computer Protocol (ICP) is planning on creating a Hong Kong-based hub.In Twitter comments published on Wednesday, Dominic Williams, the Founder of the Dfinity Foundation, the development team responsible for ICP, stated that as a consequence of his recent visit to Hong Kong and participation in the Web3 Festival, the project “plans for an Internet Computer Hub, probably in Cyberport.”©Pexels/PixabayICP is a set of protocols that facilitate independent data centers globally to band together, offering a decentralized alternative to the existing centralized cloud providers. On that distributed basis, it allows users to create websites, apps and various web-based services.Founded by Williams and the Dfinity Foundation, the project had the backing of venture capital firms Andreessen Horowitz (a16z) and Polychain Capital from an early stage. Cyberport is a 25 hectare multimedia park in Hong Kong’s southern district, consisting of a hotel, four primary office buildings and a retail entertainment complex. It’s home to over 1,900 start-ups and technology companies, making it a creative digital community and technology cluster within Hong Kong.Giving Silicon Valley a run for its moneyWilliams had made a keynote address at the Web3 Festival last week. Dfinity expressed the view that enthusiasm for blockchain, Web3 and the ICP project was “off the charts” at the Hong Kong event. It seems that Williams was similarly enthused such that he wants to establish a physical presence for the project in Hong Kong.Prior to the Web3 Festival event, Williams had also stated that “dynamism in Asia is incredible” . . . “Asia will give Silicon Valley a serious run for its money.” In making a comparison with Silicon Valley, Williams referred to comments he had heard being made by a Taiwanese venture capitalist, suggesting in relation to leading Californian tech companies such as Facebook, “that nobody does any work, it’s like a retirement company.”ICP Asia AllianceAnother item that Williams noted as a take away from his Hong Kong visit was a recognition by the Dfinity Foundation founder that the formation of an ICP Asia Alliance is a possibility. He stated that “things [are] already happening” to effect this eventuality.Confirming that work in progress, it appears that Williams met last week with members of TinTin, a Web3 development DAO, as part of his ICP Asia Alliance initiative. It’s understood that as part of the initiative, the ICP Asia Alliance will cooperate with local venture capital firms in Hong Kong, with a view towards promoting and cultivating talent in Asia relative to Web3 and the ICP project.Building a new internetAs a Swiss non-profit, the Dfinity Foundation launched the ICP blockchain in May 2021. The project has garnered considerable attention from both developers and investors. It also distinguishes itself from many other blockchain projects insofar as it has attracted the involvement of leading tech companies such as Oracle and Samsung.At the time of publication, $ICP was trading at $6.24, 15% its 2023 high point of $7.34.

Coincheck, a subsidiary of Monex Group, a Tokyo-based global financial services firm, has gained U.S. Securities and Exchange Commission (SEC) approval to become the first Japanese crypto exchange to list on the Nasdaq, an American stock exchange.Photo by Denys Nevozhai on UnsplashSPAC mergerThe approval by the U.S. regulator was filed on Nov. 13. The listing has been enabled due to the company’s decision to enter into a merger with a special purpose acquisition company (SPAC), namely Thunder Bridge Capital Partners (TBCP).  A SPAC raises money through an initial public offering (IPO) to either acquire or merge with an existing company. Opting for a SPAC means that Coincheck can forego a lot of the time and expense that would be necessary if it attempted to effect an IPO on its own. Parent company Monex Group published a statement outlining that Coincheck CEO Yuko Seimei had “been diligently preparing for listing its common stock on the Nasdaq Global Market (“Nasdaq”) through a previously announced business combination with Thunder Bridge Capital Partners.” Possible Nasdaq listing on Dec. 10 In a press release issued by TBCP, the company claimed that the proposed merger is anticipated to close on or about Dec. 10, 2024. That eventuality is subject to stockholder approval, Nasdaq approval and specific closing conditions. Consequently, Coincheck’s Nasdaq listing could potentially happen as early as Dec. 10. TBCP is holding a shareholder vote on the merger on Dec. 5. If all conditions are satisfied to pave the way for listing, the company’s stock will be listed using CNCK as the Nasdaq stock ticker. Once the merger and Nasdaq listing have been accomplished, Coincheck will still remain a subsidiary of Monex Group. The merged business will gain access to $237 million, held in trust by TBCP, with Monex retaining an 82% stake in the company. Furthermore, Thunder Bridge CEO Gary Simanson will lead the new company. The $1.25 billion merger had been in the works since 2022, having faced multiple delays on the path towards merger completion and Nasdaq listing. Coincheck finally filed with the SEC to merge back in May. Parent company Monex has other interests in the digital asset sector beyond its involvement with Coincheck. Last December the company acquired a majority stake in 3iQ Digital Holdings, a Canadian crypto asset management company.Monex has just launched a new brand, Monex Web3, comprising of Monex’s Web3 business portfolio. It also offers a Web3 consulting business, using its local know-how to guide Web3 startups in entering the Japanese market. Coincheck has also engaged in partnerships to assist other firms in gaining access to the Japanese market. Earlier this year the leading Japanese crypto exchange partnered with USD Coin (USDC) stablecoin issuer Circle, in an effort to expand USDC access within the local market. In January 2018 the exchange suffered what was at the time the world’s largest ever digital asset theft, losing $534 million in virtual assets in a hack of the platform.