Alchemy Pay Gearing Up for Expansion into South Korea

Sony Network Communications and Startale Labs to Launch Joint Blockchain VentureProminent Japanese internet service provider Sony Network Communications and Singapore-based Web3 company Startale Labs are undertaking a new joint venture to develop a blockchain network for facilitating the worldwide adoption of Web3.Photo by CHUTTERSNAP on UnsplashCultivating an innovative Web3 ecosystemThis comes after Sony Network Communications’ initial $3.5 million investment in Startale Labs back in June. Both companies expressed their commitment to paving the way for revolutionary Web3 applications through the development of a solid blockchain infrastructure. To do so, they said that they would leverage Sony Group’s knowledge and expertise in various sectors, such as gaming, music, entertainment, and financial services, to apply a multifaceted approach to the joint venture.“By combining Sony Network Communications’ experience in communication, the Internet of Things (IoT), artificial intelligence (AI), and solution services with Startale Labs’ insights and technical prowess in Web3, we aspire to create a global infrastructure that underpins the Web3 era, driving innovation across existing industries,” said Jun Watanabe, President and Representative Director of Sony Network Communications.The new business will be established this month under the name Sony Network Communications Labs.“This joint venture is founded on the synergy created by our respective assets and knowledge, and it is aimed at collectively developing a leading blockchain ecosystem. We are determined to discern Web3 trends and drive them globally,” said Sota Watanabe, CEO of Startale Labs.Governmental supportSony Group, Sony Network Communications’ parent company, has consistently been making strides in the Web3 realm. Sony Bank, another affiliate of the group, joined hands with Mitsui & Co. Digital Asset Management (MDM) a few months ago to establish MDM’s security token service Alterna.These efforts have been encouraged by a backdrop of active support for Web3 and crypto businesses from the Japanese government. The Japanese National Tax Agency recently announced the revised corporate taxation rules for crypto assets, which renders companies exempt from taxes on unrealized gains from cryptocurrencies if the virtual assets were issued by the company and have been continuously held since issuance, or if they have remained subject to certain transfer restrictions since issuance.Startale Labs’ popular smart contract platform Astar Network also recently launched an Ethereum layer 2 scaling solution dubbed Astar zkEVM: Supernova with Polygon Labs in a strategic move to expand Web3 adoption in Japan and onboard more enterprise partners.

Ant Group, a Chinese financial services conglomerate and affiliate of the Alibaba Group, has plans to acquire stablecoin licenses across Asian markets and further afield. Its Singapore-headquartered global digital payments and financial technology subsidiary, Ant International, plans to file an application for a stablecoin license in Singapore and in Hong Kong once the Chinese autonomous territory implements its stablecoin regulation later this summer.  That’s according to a report published by Bloomberg on June 12, citing unnamed sources familiar with the matter. Beyond the Asia-Pacific (APAC) region, Ant International also plans to seek a stablecoin license in Luxembourg.Photo by Ban Daisy on Unsplash2 Hong Kong stablecoin license applicationsIn a statement, Ant International stated: “We plan to apply for the fiat-referenced stablecoins (FRS) issuer's license once the process is open after the [Hong Kong] Stablecoins Ordinance takes effect on August 1.”Additionally, Bian Zhuoqun, president of Ant Digital Technologies, another Ant Group subsidiary focused on applying digital technologies, confirmed that it too will be applying for stablecoin licensing in Hong Kong.  Zhuoqun told reporters that the company has already opened dialogue with the regulator in Hong Kong, while also participating in a regulatory sandbox. While the company wasn’t a named participant within Hong Kong’s stablecoin sandbox, it had previously participated in Project Ensemble, an initiative run by the Hong Kong Monetary Authority (HKMA) aimed at establishing a tokenization ecosystem in the city. Exploring stablecoin applicationsOn June 10, Ant International and German multinational investment bank Deutsche Bank announced a strategic partnership geared towards establishing integrated cross-border payment solutions to global merchants.  The two firms stated that they would explore tokenized bank deposits while also looking into stablecoin applications for global payments. It highlighted the potential use of stablecoins within Ant companies, facilitating real-time cross-border treasury management, reserve management and on-ramp and off-ramp services. Back in November, Singapore-headquartered StraitsX, a stablecoin-based payments startup, launched a cross-border payments product in association with AliPay+, Ali International’s offshore digital payments platform. A key component of the product offering is the use of the XSGD stablecoin. Hong Kong passed its stablecoin bill last month. Last week, the city’s government outlined that the effective date for the resultant Stablecoin Ordinance has been set for Aug. 1. Under the Ordinance, only licensed institutions are authorized to offer fiat-referenced stablecoins in Hong Kong, while the issuer of such a stablecoin must be licensed in order for it to be offered to a retail investor. Last month, multinational banking and financial services group HSBC launched Hong Kong’s first blockchain-based settlement service, utilizing tokenized deposits for swift transactions. The company collaborated with Ant International, which became the first client of the service. Entering the financial mainstreamA Financial Times report published on June 12 asserted that stablecoins are entering the financial mainstream, a development that “could have profound implications for the global financial system.” Earlier this week, the South China Morning Post (SCMP) reported that Hong Kong’s stablecoin law could lead to a boom in digital assets.Daniel Tse, managing director of Hong Kong brokerage firm Futu Securities, told the SCMP: “We’re seeing a significant trend in investments related to stablecoins on our platform, which highlights the growing importance of this sector.” 

Kazinform, the state-owned official news agency of Kazakhstan, has reported that the central Asian republic is working towards the establishment of a national crypto reserve. The news agency revealed that in answering an inquiry from a member of the Kazakhstan parliament, Timur Suleimenov, Governor of the National Bank of Kazakhstan, said that the central bank is currently studying information related to the formation and management of a national crypto reserve. Photo by engin akyurt on UnsplashFollowing best international practicePlans are being devised for a crypto reserve on the basis that best international practice as applied to sovereign wealth fund management is adopted. In this respect, guidelines related to transparency of accounting and secure crypto custody will be followed. The reserve will be established through an affiliate entity of Kazakhstan's central bank, specializing in alternative investments. In responding to the parliamentary inquiry, Suleimenov also revealed the likely source of funding for the fund. He stated: “International practice shows that the sources for such a reserve may include confiscated crypto-assets, as well as  cryptocurrencies mined by a crypto miner partially owned by the government.” Suleimenov outlined that while crypto assets have proven to be volatile and riskier than other asset classes, having the reserve controlled and managed by a central bank affiliate would result in the required levels of risk management and overall oversight being applied. According to Kursiv, a news organization focused on the Central Asian region, the authorities in Kazakhstan plan to amend relevant legislation so as to enable the effective management of the crypto reserve. Suleimenov stated that the central bank is open to discussing potential legislative amendments with members of Kazakhstan's parliament. The National Bank of Kazakhstan's governor also warned that misinformation by pseudo-business coaches related to cryptocurrencies needs to be curbed. He feels that in order to protect investors, and particularly young people, legal measures will be necessary in an effort to bring about greater transparency within the country’s crypto market. The authorities in Kazakhstan currently have a crypto regulatory framework in place that requires crypto trading platforms that extend their services to local users to have acquired a trading license from the Astana International Financial Centre (AIFC).  In May, it emerged that the Central Asian republic is planning to establish a pilot project for cryptocurrencies called “CryptoCity.” At the time, Kazakhstan’s president, Kassym-Jomart Tokayev, delivered a speech at the Astana International Forum outlining that the CryptoCity project would facilitate the use of crypto for the payment of goods and services within a specific geographical zone. Crypto hub potentialEarlier that month, the country’s First Vice-Minister of Digital Development, Innovation and Aerospace Industry, Kanysh Tuleushin, said that Kazakhstan had the potential to emerge as a leading cryptocurrency hub within the Central Asian region. Following the implementation of a ban on crypto mining in China in 2021, Kazakhstan experienced an influx of miners, attracted by cheap electricity. However, the arrival of miners was unplanned for, putting extreme pressure on the local electricity grid, resulting ultimately in brownouts and protests. The country once accounted for 27% of global Bitcoin mining. However, regulations introduced in 2023 led to the activity being scaled back considerably.