Taiwan’s Comma3 Ventures Raises $45M Crypto Fund

The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) are charting new regulatory territory with the release of a comprehensive consultation paper outlining their proposal to accept and regulate fiat-referenced stablecoins (FRS) within the Chinese autonomous territory.Photo by Ben Cheung on PexelsConsultation processThe proposal has been published to the FSTB website in the form of a consultation paper titled “Legislative Proposal to Implement the Regulatory Regime for Stablecoin Issuers in Hong Kong.” Separately, the HKMA has published a press release on the topic. This development seeks to establish a regulatory framework for stablecoin issuers and address associated risks. The consultation period is scheduled to conclude on Feb. 29 of next year. At the heart of this legislative proposal is the requirement for companies actively marketing the issuance of FRS to the public of Hong Kong to obtain a specific local license from the HKMA. The proposed criteria for obtaining this license are robust and include key elements such as maintaining reserves “at least equal to the par value” of all circulating stablecoins. This measure ensures that stablecoins remain fully backed, contributing to their stability and reliability. The legislation also places a strong emphasis on the segregation and secure safekeeping of reserve assets, enhancing the protection of users’ funds and preventing misuse. Furthermore, issuers will be mandated to provide transparent disclosure and regular reporting, fostering accountability and transparency within the stablecoin ecosystem. It is noteworthy that the proposed regulations explicitly exclude algorithmic stablecoins from obtaining an HKMA license, underlining a preference for stablecoins with solid reserve backing. No doubt the spectacular collapse of the UST algorithmic stablecoin in 2022 has informed the Hong Kong regulator’s decision to exclude consideration of algorithmic stablecoins in this instance. Need to establish Hong Kong presenceTo underscore their commitment to regulatory compliance, stablecoin issuers seeking an HKMA license will also be required to establish a registered office in Hong Kong. This office must have a chief executive, senior management team and key personnel in place, aligning with Hong Kong’s efforts to ensure that all activities related to stablecoin issuance are conducted responsibly. The proposed licensing regime for FRS aligns with Hong Kong’s broader strategy to foster the growth of the Web3 ecosystem within the region. Christopher Hui, Secretary for Financial Services and the Treasury, highlighted the significance of this move, stating: “With the implementation of the licensing regime for VA trading platforms from June this year, the legislative proposal to regulate FRS is another important measure facilitating Web3 ecosystem development in Hong Kong.” Market competitionBack in February, the HKMA signaled its intent to regulate stablecoins when it issued a discussion paper considering various regulatory approaches. Competition is on an upward trajectory relative to stablecoin issuance and use. In June, Hong Kong-based qualified custodian First Digital Trust announced that it was gearing up to launch "First Digital USD," a U.S. dollar-backed stablecoin regulated in Asia rather than the United States. Leading stablecoin issuer Circle has been active in furthering its product offering in Asia during 2023. It successfully attained licensing approval in Singapore while in Japan, it joined forces with SBI Holdings in an effort to propel further growth of its USDC stablecoin within the Japanese market.

Dubai approves crypto license for climate-friendly Web3 startupIn a move that shows some potential towards fostering sustainable innovation within the crypto space, Dubai’s Virtual Assets Regulatory Authority (VARA) has granted a conditional license to Web3 Innovations FZE, which trades as “AYA.”Licensed subject to fulfilling conditionsAYA is the Dubai-based subsidiary of Singapore-headquartered Web3 launchpad, incubator and advisory service, Enjinstarter. The license will enable AYA to offer management and investment services related to crypto assets. However, the license remains non-operational at the moment, as it has been awarded subject to the fulfillment of specific conditions outlined by VARA. The conditional license, awarded on Tuesday, has significance as it is indicative of a commitment from the Dubai authorities to supporting environmentally conscious initiatives in the Web3 ecosystem.The license awaits full compliance with VARA’s stipulated conditions and select localization requirements. Enjinstarter’s AYA platform will undergo further regulatory verification and approval once these prerequisites are met, as stated in the official announcement:“The license remains non-operational until the company fully satisfies all remaining conditions and select localization requirements defined by VARA.”Dubai ‘obvious choice’Back in October, Enjinstarter confirmed Dubai as the chosen location for its AYA platform. At the time, Enjinstarter MENA’s Managing Director, Vasseh Ahmed, described it as the “obvious choice.” Vasseh stated:”No other jurisdiction provides the regulatory clarity and sustainability focus we are looking for. Beyond that, there is a palpable sense of action here, specifically in terms of real-world asset regulation and climate action.”Prakash Somosundram, the co-founder and CEO of Enjinstarter and the AYA Foundation, expressed the company’s dedication to adhering to the regulatory process outlined by VARA.Photo by Qingbao Meng on UnsplashClimate-focused launchpadAYA stands out as a climate-focused launchpad, championing sustainability through initiatives such as reforestation, nature credits, mangrove conservation and sustainable agriculture. Beyond its role as a finance platform for green initiatives, AYA actively supports climate action projects, leveraging blockchain and Web3 infrastructure.As AYA works towards fulfilling VARA’s operational license requirements, the company has also unveiled a collaboration with The Storey Group based in the United Arab Emirates (UAE). This joint effort aims to plant mangroves in Dubai, reinforcing AYA’s commitment to combating climate change. Vasseh Ahmed, Managing Director of Enjinstarter MENA, emphasized the company’s mission:“We are looking to work with founders and projects that have a unique proposition within our key focus areas by helping them build their product narrative, raise capital, and launch their projects.”In a recent interview, Deepa Raja Carbon, Managing Director and Vice Chair at VARA, highlighted the regulator’s agile and collaborative approach. VARA remains committed to responding swiftly and effectively to market needs by engaging in conversations with industry leaders, innovators, peer regulators and legislators. Carbon emphasized the comprehensive and market-aligned guidelines crafted in collaboration with Dubai’s established entities, ensuring a unified framework for the evolving crypto landscape.Dubai’s move to grant a conditional crypto license to AYA appears to reflect a forward-thinking approach, aligning with global efforts to integrate sustainability into the rapidly evolving Web3 and crypto ecosystem.

Korea Securities Depository Spotlights the Significance of a Security Token PlatformDuring a press conference held today in Seoul, Chairman Lee Soon-ho of the Korea Securities Depository (KSD) highlighted the need for developing innovative financial infrastructure, including a security token platform, as reported by local tech news outlet etnews.Photo by JEONGUK -on UnsplashBlockchain-based securitiesIn recent times, there has been a surge in demand for blockchain-based securities, prompting the South Korean government to issue guidelines on security tokens in February of this year. Consequently, securities firms, fractional investment platforms, and technology companies have been collaborating to form consortia.The KSD has been actively studying the legislative and institutional aspects of security tokens to establish a foundation for their widespread acceptance. Furthermore, it has devised a mid-to-long-term roadmap for the security token platform. Since February, the KSD has been spearheading a security tokens council with an aim to develop a business model for a security token platform starting in July.KSD’s roleSpecifically, the KSD intends to provide feedback on subsequent legislative revisions pertaining to security tokens, review security token registrations, and establish methods for managing the total volume of security tokens under the Act on Electronic Registration of Stocks and Bonds.Additionally, the KSD aims to expedite the construction of a new system for the capital market infrastructure. This endeavor entails revamping the operational system to enable flexible responses to internal and external changes, as well as creating a smart workplace suited for the digital era.Since its establishment in 1974, the KSD has played a crucial role in supporting the development of the Korean capital market by providing diverse securities services, including the issuance and distribution of securities. Nonetheless, participants at the conference concurred that the agency needs a fresh vision and strategy to maintain its position in the future.Chairman Lee emphasized that the agency’s 50th anniversary will take place next year, prompting a thorough assessment of its current status and the formulation of a new vision and strategy to adapt to the ever-evolving financial landscape. As part of these efforts, he underscored the recent establishment of a task force dedicated to devising future plans.