Mammoth Foundation signs deal with the Philippines’ AFAB for blockchain business collaboration

Liminal, a Singapore-based digital asset custodian, has gained regulatory approval in Abu Dhabi, as part of a series of recent steps the company has taken to expand across Asia and the Middle East. Extending digital asset custody to the Middle EastTaking to the X social media platform on May 13, the company outlined that its First Answer Middle East subsidiary received Financial Services Permission (FSP) from the Abu Dhabi Global Market's (ADGM) Financial Services Regulatory Authority (FSRA) on May 9. The approval allows the firm to provide digital asset custody in the region. Liminal had initially been granted in-principle approval last year. In a series of posts, the company outlined that it sees Abu Dhabi’s regulatory framework in respect of digital assets as forward-thinking. It drew particular attention to the work of the FSRA in developing a robust framework to enable institutions to enter the digital assets space.Photo by Sohail Sarwar on UnsplashGame changerOn the actual license approval itself, the company stated, “The FSP license allows Liminal to hold, manage, and safeguard digital assets on behalf of institutions, hedge funds, venture capitalists and professional clients. This is a game-changer for digital asset custody practices in the region.” Further regional expansionOver the course of recent months, Liminal has scored a number of regulatory successes within the Asia Pacific (APAC) and Middle East and North Africa (MENA) regions. Its success within the United Arab Emirates (UAE) has not been confined to Abu Dhabi. In April, First Answer Custody FZE, a Dubai-based subsidiary company, secured initial approval from the emirate's regulator, the Virtual Asset Regulatory Authority (VARA).  Meanwhile, Liminal's Indian subsidiary, First Answer India Technologies, has been established and registered as a reporting entity. As a consequence, it has become the first digital asset custodian registered with India’s Financial Intelligence Unit (FIU), an organization that falls under the umbrella of the Department of Revenue, and  which collects financial intelligence relative to money laundering.  Making further in-roads within the world’s most populous country in November, India’s Central Bureau of Investigation (CBI) appointed the firm with a mandate to manage seized digital assets. Liminal has ties with India insofar as it was founded by Mahin Gupta in 2021, the co-founder of crypto exchange ZebPay. In an interview with CoinDesk, Manan Vora, senior vice president of strategy and business operations at Liminal stated:"We initiated a strategic drive two years ago to secure regulatory licenses in key markets across APAC and EMEA (Europe, Middle East and Africa), strategically positioning ourselves to cater to institutional clients.” Vora added: "Our strategic vision is to expand from our present technology presence in Europe and Taiwan to pushing for regulatory victories there. In Indonesia, we are already working as a technology provider for the nation's sovereign digital asset exchange." Within its home market of Singapore, Liminal was grandfathered into a new licensing system that the city-state introduced recently in respect of digital asset custody as a consequence of already having been a provider of such services in Singapore. The company has been given a grace period of six months. Within that timeframe, it intends to submit an application to local regulator, the Monetary Authority of Singapore. 

Yuichiro Tamaki, leader of Japan’s Democratic Party for the People (DPP), has outlined that if elected the party will introduce a crypto tax plan that will bring about the lowering of taxation on crypto gains to 20%. Tamaki’s comments come ahead of the Asian nation's elections, which are due to be held on Oct. 27. Taking to the X social media platform on Oct. 19, Tamaki wrote: “If you think crypto assets should be taxed separately at 20% instead of treated as miscellaneous income, please vote for the Democratic Party for the People. There will be no tax when exchanging crypto assets with other crypto assets.”Photo by Liger Pham on PexelsCrypto taxation reformThe DPP leader added that he would be appreciative of people spreading the word and letting the broader Japanese public know about this commitment that is being made in respect of crypto taxation reform. The reduction to 20% would bring the treatment of crypto in line with that of the stock market in Japan, where gains are already taxed at the 20% tax rate. The DPP leader included a graphic within his X post that provided further detail. It outlined that a loss carry-forward deduction could be applied by the taxpayer within a three-year timeframe.  A tax exemption would apply when it comes to the exchange of crypto assets. The DPP is also in favor of increasing the permitted leverage multiple from 2x to 10x relative to crypto trading. Finally, the party supports the introduction of spot crypto exchange-traded funds (ETFs) in Japan. Focusing on developing Web3In response to an X user, Tamaki claimed that the DPP would consider a reduced taxation policy to be inclusive of other financial income in the future. However, for right now, the DPP leader said that the focus was on making Japan “a strong nation in the Web3 business.” Another Japanese crypto community member suggested that the proposed tax cut would lead to an increase in tax revenues, based upon the assertion that many people don’t file tax returns simply because tax calculations are too difficult right now. While the plan is positive for Japan’s crypto community, the DPP is unlikely to be in a position to implement such a plan. The party currently holds just seven of the 465 seats in the National Diet, the Asian nation’s House of Representatives.  Tax reform guidelinesCurrently, the applicable tax rate applied to crypto revenues can reach as high as 55% in Japan. At the end of August Japan’s Financial Services Agency (FSA) unveiled new tax reform guidelines for 2025. One component of those proposals was the suggestion that the crypto tax rate should be reduced to 20%. With that, if Tamaki’s DPP can’t influence matters, the regulator’s proposals may be of sufficient weight to have the matter addressed. The approach taken to the taxation of crypto in various jurisdictions is having a bearing in terms of the competitiveness of those locations relative to the development and further roll-out of Web3 technologies. Earlier this month, the United Arab Emirates took a positive step forward by exempting crypto from value-added tax (VAT). Meanwhile, in Indonesia the local regulator is moving towards a re-evaluation of what is considered to be a harsh taxation policy relative to crypto. 

HTX and Heco Chain exploited with $115 million lossSeychelles-incorporated cryptocurrency exchange HTX, linked to digital-asset entrepreneur Justin Sun, has fallen victim to a significant hack, only a few months after having suffered another hack in September.Photo by Markus Spiske on UnsplashSecond HTX hack in recent monthsThe last hack, involving a loss of digital assets to the value of $8 million, was resolved when the hacker agreed to return funds in October in return for a goodwill payment of around $400,000.This latest unfortunate incident follows another hack on Poloniex, also associated with Sun, just weeks ago. Sun acknowledged the HTX hack in a tweet, announcing the temporary suspension of deposits and withdrawals without specifying the exact amount pilfered.Separate Heco Chain hackIt is understood that approximately $30 million worth of cryptocurrencies was siphoned from the exchange wallet. The platform is actively investigating the breach, aiming to uncover the specifics surrounding the attack. Simultaneously, the HECO Bridge, which was established by HTX for cost-effective fund transfers across different blockchains, experienced a separate hack.This breach resulted in losses exceeding $85 million, including ETH, US dollar stablecoin Tether (USDT) and various other tokens. Although initially launched by HTX, HECO operates independently from the HTX exchange.Crypto community concernThese security breaches cast a shadow over Sun’s crypto ventures, especially considering the recent hack on Poloniex, which saw losses surpassing $100 million in various cryptocurrencies. A spokesperson for crypto security firm Hacken told Cointelegraph that these hacks could be the work of an insider.“We can see that all these attacks have the same target: Justin Sun’s projects,” the spokesperson stated. These related incidents are the cause of significant speculation within the crypto space, with some concern expressed about the financial health of HTX, given that the firm is currently offering unsustainable interest rates of up to 100% APY on a selection of digital assets.In response to the HTX hack, Justin Sun assured the community in a post on X (formerly Twitter) that HTX would fully compensate for the losses incurred in its hot wallet. The exchange has temporarily halted deposits and withdrawals as the investigation unfolds. Sun emphasized the commitment to resume services once the investigation concludes and the cause of the breach is identified.These incidents raise questions about the security infrastructure of platforms associated with Justin Sun. The crypto community awaits further details on the investigation’s outcomes and preventive measures that will be implemented to fortify these exchanges against future attacks.Such recent security breaches have not just affected Justin Sun-related enterprises. Earlier this month, decentralized exchange (DEX) KyberSwap was exploited to the tune of $46.5 million. Earlier this week, Kronos Research — a Taipei-based crypto trading, market making and venture capital platform — experienced a $25.6 million loss. The past twenty days have seen five major hacks resulting in an aggregate loss of a staggering $290 million.As the crypto industry grapples with increasing security challenges, the importance of robust protective measures cannot be overstated. These developments underscore the need for a cautious and diligent approach in safeguarding digital assets within the rapidly evolving cryptocurrency landscape.