Miracle Play and HAVAH team up to expand Web3 ecosystem

The Royal Government of Bhutan has moved $66 million in Bitcoin (BTC) to global crypto exchange Binance. That’s according to blockchain data analytics firm Arkham Intelligence, outlining that the assets were moved to Binance over two separate transactions. The firm took to the X social media platform on Oct. 29 to highlight the digital asset transfer. In its X post, the firm wrote:”Crypto wallets belonging to the Royal Government of Bhutan moved $66.55M BTC to Binance this morning. The last time they deposited to exchanges was 4 months ago, at the start of July.”Photo by Moose Photos on PexelsSell-off concernsSome crypto community commentators have expressed concern of a sell-off given that the nation nestled in the Himalayas still has a holding of 12,456 Bitcoin, worth in the region of $900 million. The transfer was made on a day in which Bitcoin reached a unit price in excess of $73,000.  Arkham outlined that geographical data suggests that Bhutan’s Bitcoin mines remain active. On Oct. 29, they had accumulated $600,000 worth of Bitcoin mining rewards on-chain.  In this latest market activity, the Bhutanese began selling when the Bitcoin unit price had exceeded $70,000. As Bitcoin reaches towards new all-time-high pricing, Bitcoin whales often take profits. Mining Bitcoin since $5KIt emerged in 2023 that Bhutan had been quietly mining Bitcoin over the course of a number of years, since the leading digital asset had a unit price of around $5,000. The commercial activity has been enabled via Druk Holding and Investments (DHI), the commercial arm of the Royal Government of Bhutan. The Asian nation has ample hydroelectricity resources, being the only carbon-negative country in the world. Consequently, all its Bitcoin mining is carried out using hydro. While mining activity had been ongoing for a number of years and had largely gone unnoticed by the industry, an entanglement between DHI and failed crypto lenders BlockFi and Celsius brought more attention onto the Bhutanese holding company’s activities relative to crypto.  LawsuitsDHI was sued by BlockFi with the action subsequently voluntarily dismissed. In the case of Celsius it withdrew around $65 million from the platform prior to Celsius declaring bankruptcy. As a consequence, Celsius is currently suing DHI to claw back the funds that were removed from the platform. In 2023 Singaporean Bitcoin mining firm Bitdeer entered into a partnership with DHI with a view towards jointly developing green digital asset mining operation within the Kingdom of Bhutan. At the time, DHI CEO Ujjwal Deep Dahal said that the partnership formed part of an overall strategy to ensure that Bhutan took its place at the forefront of global innovation. Arkham Intelligence outlined on X that in H2 2023, Bhutan’s Bitcoin mining operations were producing in the region of 26 Bitcoin per day, or 780 Bitcoin per month. However, over the past three months, that mining rate has decreased to 8.6 BTC per day or 260 BTC per month. Arkham suggests that the Bitcoin halving, together with the increase in the Bitcoin hashrate, explains the reduced output, although it speculated that some unknown issue with Bitcoin mining rigs may also be a contributing factor. 

Singapore Pledges $112M to Boost Fintech Solutions Including Web3Acknowledging the growing significance of collaboration with industry stakeholders in propelling advancements in emergent technologies such as Web3, Singapore’s central bank, the Monetary Authority of Singapore (MAS), has unveiled plans to allocate up to 150 million Singapore dollars (approximately $112 million) towards supporting a spectrum of financial technology solutions, with a special focus on Web3.Photo by Jason Leung on UnsplashDistributed over three yearsThis financial commitment, outlined in a press release published to the MAS website on Monday, will be distributed over a three-year period as part of the revamped Financial Sector Technology and Innovation Scheme (FSTI 3.0), designed to invigorate and fortify innovation by backing projects that leverage cutting-edge technologies.The renewed innovation scheme encompasses multiple avenues, including the Enhanced Centre of Excellence track, the Environmental, Social and Governance (ESG) fintech track, and the Innovation Acceleration track — the last incorporating the realm of Web3.Emphasizing industry partnershipsMAS underlined the importance of forging partnerships with industry participants to bolster inventive fintech solutions originating from emerging technologies such as Web3.“MAS will conduct open calls for the use of innovative technologies in industry use cases. Grant funding will be provided to support actual trial and commercialization,” the central bank stated.In addition to these efforts, the initiative will maintain its commitment to encouraging adoption across domains like artificial intelligence, data analytics, and regulatory technology (RegTech). Furthermore, there will be an emphasis on fostering adoption within companies that are still digitally maturing and seeking to integrate RegTech solutions.Applicants across the various program tracks will be required to allocate resources toward nurturing talent. This strategy aims to augment Singapore’s fintech talent pool, ultimately contributing to the nation’s expertise in the sector.Ravi Menon, the Managing Director of MAS, underscored the substantial investment that the Financial Sector Development Fund (FSDF) has funneled into the FSTI program since its inception in 2015.Menon highlighted that this initiative’s overarching objective is to spur innovation and facilitate the seamless integration of novel technologies within the financial landscape. Over the years, the program has exemplified its commitment to driving transformation and pioneering the adoption of new technology across the financial sector.Nurturing Web3 innovationPotential Web3 and crypto hubs have come and gone, but Singapore has been vying to take its place as a center for Web3 innovation over a sustained period after it suffered some setbacks in 2022 related to a string of crypto business failures.While Binance had not been permitted to serve customers in the city-state, that meant that a disproportionate number of Singaporeans got caught up in the failure of the FTX crypto exchange. Alongside that regulatory failure, state investment giant Temasek had to write off a substantial investment in the company, while suffering reputational damage for not having detected the FTX fraud.The city-state has also been home to the failure of crypto lender Hodlnaut and crypto hedge fund Three Arrows Capital (3AC). Despite these setbacks, Singaporean authorities are continuing to work towards setting the proper stage to further develop Web3 innovation. In June, MAS proposed a comprehensive framework for the design of open networks relative to tokenized digital assets. This latest initiative will further Singapore’s ambition to grow its Web3 sector.

Korean Lawmakers Make Progress on Virtual Asset User Protection BillOn Tuesday, the subcommittee for legal deliberations under the South Korean National Assembly’s National Policy Committee reached a consensus during the first review of the Virtual Asset User Protection Bill, according to Yonhap Infomax.©Pexels/Andrea PiacquadioFirst review phaseThe bill is undergoing a two-phase review process before being legislated. During the first phase, the primary focus was on safeguarding customer assets and preventing unfair transactions. The second phase is expected to concentrate on market order regulations, including the issuance and disclosure of virtual assets.Application of Capital Markets ActSeveral stipulations were included in the approved draft of the Virtual Asset User Protection Bill during the initial review phase. These stipulations include prioritizing the application of the Capital Markets Act to virtual assets that are classified as securities, while excluding central bank digital currencies (CBDCs) from the definition of virtual assets to avoid any potential confusion. The bill also seeks to impose compensatory damages and penalties for any unfair trading practices, and establish a virtual asset committee responsible for investigating any unfair transactions in the digital asset market.The virtual asset committee will also engage in preliminary deliberations regarding the management, supervision, and monitoring of the digital asset market. The committee will carry out tasks assigned to it by the Financial Services Commission (FSC). Furthermore, the Bank of Korea has been granted the right to request data from virtual asset operators since virtual assets, although not currencies, are necessary to consider when establishing monetary credit and financial stability policies.No class action systemHowever, the introduction of a class action lawsuit system was not adopted, and details about inspecting virtual asset operators will be stipulated in a presidential decree rather than a law.Second review phaseFor the second review phase, the FSC will report several matters to the National Assembly. These will involve tasks such as establishing a regulatory framework for stablecoins, security tokens, and utility tokens. In addition, the agency will be responsible for creating a regulatory system for virtual asset valuation, advisory, and disclosure services, as well as an integrated computerized system that provides reliable and reasonable information on digital assets. The FSC will also explore ways to enhance the business conduct discipline of cryptocurrency operators by commissioning research from external organizations.Additionally, the FSC and the Financial Supervisory Service will work on supporting virtual asset exchanges to establish uniform standards for the circulation supply of virtual assets. The regulatory bodies will also enforce the requirement for transparent disclosure and strict internal control on virtual asset operators. Moreover, regulations will be developed to enhance virtual asset usability and remove any obstacles that may impede the development of innovative real-life services.