Korea considers legal recognition of virtual assets as trust assets for investor protection

India’s CoinSwitch Trims Workforce Amid Market DownturnIn the wake of an extended cryptocurrency market downturn, India’s CoinSwitch, a crypto investing app, has become the latest platform to downsize its staff, as reported by local news agency Moneycontrol on Monday.Photo by Kelli McClintock on UnsplashCustomer support cutsThe exchange has reportedly let 44 employees go from its customer support division this month, attributing the move to redundant roles caused by the bear market’s decline in customer queries.In a statement, CoinSwitch explained: “We continuously evaluate our business to stay competitive, prioritizing innovation, value, and service for our customers. To that end, we right-sized our customer support team to align with the present volume of customer queries on our platform.”The company noted that this decision led to the voluntary resignation of 44 members from its support team, following detailed discussions with their managers. The 44 employees represent a significant portion — approximately 8% — of CoinSwitch’s total workforce. The company’s LinkedIn profile currently indicates that it has 519 employees.Following local industry trendCoinSwitch’s staff reduction news emerged barely a week after another prominent local exchange, CoinDCX, downsized its workforce by 12%, based on an overall headcount of around 730 employees (according to LinkedIn data).The fact that both businesses have taken the decision to cut staffing is indicative of an overall market downtrend currently. That said, CoinSwitch had onboarded 60 people since April, which would imply that the firm is expanding in other areas despite these customer service-related layoffs.This may reflect the company’s plan to change strategic direction. Going forward, CoinSwitch intends to diversify its product offering and transition towards becoming a wealth tech platform.CoinDCX layoffsCoinDCX’s Co-Founders, Sumit Gupta and Neeraj Khandelwal, stated last week that they were making what was a very difficult decision to reduce the size of the team by 12% and that they regretted that talented team members would be moving on from the organization. The founders attributed the decision to market challenges and also pointed out the impact of the 1% Tax Deducted at Source (TDS) applied to local crypto exchanges. They clarified:“These factors had a significant impact on our volumes and thus revenues. To adapt, we undertook several proactive measures, including direct cost optimization and investment in automation to drive efficiency and productivity.”According to the announcement, the affected CoinDCX employees will receive a support package including severance pay equivalent to their full notice period, an additional month of salary, extension of health insurance, and other forms of assistance.CoinSwitch was founded by Ashish Singhal, Govind Soni, and Vimal Sagar Tiwari in 2017. The company received the backing of leading venture capital firms such as Andreessen Horowitz (a16z), Sequoia Capital, Tiger Global, Paradigm, Coinbase Ventures, and Ribbit Capital. In 2021 it was recognized as India’s second crypto firm to reach unicorn status, following a $260 million Series C funding round that saw the company reach a valuation of $1.9 billion.In 2022 India introduced a 30% tax on cryptocurrency gains, resulting in the exodus of numerous cryptocurrency service providers and a steep decline in crypto trading activity. The country has also implemented a 1% TDS for crypto exchanges, mandating that exchanges pay 1% on all crypto asset transfers.

As Excitement for First US Spot Bitcoin ETF Intensifies, South Korea Still Faces Mountain to ClimbThe price of bitcoin has surged significantly as it recorded an 18% increase in the past week, spurred by mounting anticipation surrounding the US’ first spot bitcoin exchange-traded fund (ETF) propelled by asset management juggernauts BlackRock and Fidelity Investments — a threshold that had not been crossed in over a year. According to CoinMarketCap, bitcoin is trading in the upper $33,000 range as of 5 p.m. KST on Wednesday.Photo by André François McKenzie on UnsplashOngoing buildupThe approval of a spot bitcoin ETF — long rejected or delayed due to a plethora of reasons like the volatility of cryptocurrencies and their susceptibility to market manipulation — would in the long run open up the possibility for institutions to earmark bitcoin as a major asset that can be integrated into the sphere of traditional finance. This would make bitcoin easier to handle and increase its exposure to traditional investors. “The mere possibility of this development marks a significant shift in the market landscape,” said an unnamed executive at a Korean asset management company in a news article by South Korean news outlet Maeil Business Newspaper.BlackRock’s spot bitcoin ETF, the iShares Bitcoin Trust, was also listed on the US Depository Trust & Clearing Corporation (DTCC)’s website with the ticker symbol IBTC on Monday before it mysteriously disappeared the following day. It has since been relisted on the website. The listing is “all part of the process of bringing ETF to market”, as explained by Bloomberg’s senior ETF analyst Eric Balchunas via his X (formerly Twitter) account on Tuesday.Is a spot bitcoin ETF on the table for Korea?However, Korean experts believe that there are still numerous hurdles to overcome in order for a spot bitcoin ETF to settle in Korea. In particular, some question whether cryptocurrency platforms that offer custodial services can even be classified as exchanges. There is also the issue of bitcoin’s varying prices across different exchanges. Its current price on Upbit, the country’s largest crypto exchange, is in the KRW 45.9 million range as of 5 p.m. on Wednesday. Local financial authorities have reportedly expressed skepticism about bitcoin ETFs for these reasons, suggesting a murky future for this development becoming a reality in Korea.

Animoca Brands Secures Funding to Expand Web3 Identity ProjectHong Kong-based Web3 firm Animoca Brands has successfully raised $20 million in a recent funding round, signaling a significant boost for its Web3 identity project, Mocaverse.Photo by Markus Winkler on UnsplashCMCC Global leads funding roundThe funding, announced via a blog post published to the firm’s website on Monday, was spearheaded by CMCC Global, a Hong Kong-headquartered venture capital firm that focuses solely on blockchain-related investments. Additionally, the round saw participation from prominent investors including Kingsway Capital, Liberty City Ventures, and GameFi Ventures.Prominent individuals within the industry also contributed, including Aleksander Larsen, Co-Founder of Sky Mavis, the developer of well-known blockchain play-to-earn game Axie Infinity, and Gabby Dizon, Founder of Yield Guild Games.Mocaverse, Animoca Brands’ ambitious project, is dedicated to the development of Web3-native tools catering to the gaming and entertainment sectors. This funding round points to the growing recognition of Web3’s potential to transform digital identities, particularly so within the areas of gaming, culture, and entertainment.Aiming to redefine Web3 user engagementMocaverse aims to redefine how users engage with these sectors by providing innovative solutions and unique experiences. One noteworthy aspect of this funding initiative is Animoca Brands’ commitment to granting investors “a free-attaching utility token warrant on a 1:1 dollar basis.” This strategic move not only bolsters investor confidence but also aligns their interests with the long-term success of Mocaverse.The injection of capital will be instrumental in advancing the Mocaverse project, with the imminent launch of Moca ID being a key milestone. Moca ID, a non-transferrable NFT collection, empowers users to create and nurture their on-chain identities, offering exclusive access to the Mocaverse ecosystem and the opportunity to earn loyalty points through active participation.Yat Siu, Co-Founder and Executive Chairman of Animoca Brands, who also participated in this funding round on a personal basis, expressed his vision for Mocaverse, stating:“The ongoing evolution of the Internet involves a shift from hierarchical power structures to autonomous ones, and the DAO-based approach of Mocaverse ensures that its community will be focused on driving innovation and collaboration across the broader Animoca Brands ecosystem.”Siu emphasized that Mocaverse’s scope extends beyond individual empowerment. It is poised to serve as a digital identity, reputation, and loyalty system for various decentralized organizations.Web3 thought leadershipThe Animoca Brands Co-Founder is catching the public eye with his commentary and thought leadership relative to the fledgling Web3 sector. In an interview last week, Siu voiced his belief that Saudi Arabia is proactively nurturing blockchain gaming, revealing that Animoca itself has partnered with the Gulf state on a Web3-related project.Giving a keynote speech at the Ethereum Community Conference (EthCC) in Paris in July, he voiced his opinion that Hong Kong’s recent crypto development has been sanctioned by mainland China.The $20 million raised signifies a significant stride toward realizing the potential of Web3 technology in shaping the future of gaming, culture, and entertainment. With Mocaverse at the forefront, Animoca Brands is poised to attempt to create a vibrant ecosystem where users can actively engage, redefine their digital identities, and unlock new economic opportunities, all within a collaborative and decentralized framework.