Com2uS’ partnership with Thailand’s SHIN-A to boost Web3 gaming presence in Southeast Asia

Japan’s Ministry of Economy, Trade and Industry announced on Friday that it has approved a revision to the Industrial Competitiveness Enhancement Act, with the aim of broadening strategic investment opportunities. According to a local report from crypto publication Coinpost, this move would open avenues for venture capital (VC) firms to invest in projects exclusively issuing cryptocurrencies. Pending parliamentary deliberationWith cabinet approval secured, the revised bill will now undergo introduction and deliberation in the current session of the Diet, Japan's parliament. If passed, the amendment could pave the way for VC funding of Web3 startups in exchange for crypto assets. The Ministry highlighted that the amendment aligns with objectives to foster new businesses and industrial investment, with a particular focus on empowering Japan's economy through support for medium-sized companies and startups. Reports of Japan's intention to ease regulations for VC firms investing in crypto startups first emerged in September.Photo by Manuel Cosentino on UnsplashStablecoin frameworkJapan has further work to do to implement a comprehensive overall framework for digital assets. A move by the Japanese Financial Services Agency (FSA) earlier this month to implement measures designed to guard against unlawful crypto transfers is a case in point. The measure doesn’t appear to account for knock-on effects on the peer-to-peer (P2P) transactions market. However, its stance on crypto regulation is best characterized by efforts to establish a robust legal framework for stablecoins and digital assets. The nation has positioned itself as a global leader in stablecoin regulation, signaling plans to embrace Web3 technologies while maintaining stringent measures to protect users. Japan's stablecoin regulations, while providing clarity, present challenges for issuers, especially regarding profitability in a low-interest rate environment. Compliance with requirements such as maintaining 100% of assets within Japan's trust accounts poses operational hurdles for yen-based stablecoins. Recent developments indicate industry players' efforts to navigate regulatory requirements. Mitsubishi UFJ Financial Group, Japan's premier banking conglomerate, has engaged with stablecoin issuers to explore leveraging its blockchain platform. Web3 hope amid economic difficultiesJapan’s economy has seen better days. Last week, the bitcoin-yen trading pair saw bitcoin reach a record high valuation against the yen. New technologies like Web3 are seen as a potential mechanism for the East Asian country to improve its economic performance. In July of last year, Japanese Prime Minister Fumio Kishida emphasized the country’s commitment to nurturing the Web3 sector within Japan. Last year, Yudai Suzuki, the founder of a Tokyo-based Web3 incubator, suggested that the country could rediscover its past prowess at the forefront of innovation and technology by embracing blockchain and Web3. Japan's regulatory approach appears to be shifting to accommodate such sectoral growth and development. Last July, the Japan Blockchain Association (JBA) called on the government to address an issue within the Japanese tax code that was hampering the industry. That tax reform was subsequently implemented in December. This latest initiative, too, appears to underscore Japan's commitment to fostering innovation and economic growth through enabling further investment into emerging Web3 enterprises. 

In Malaysia local regulator the Securities Commission has ordered global crypto exchange platform Bybit to shut down its operations within Malaysia as part of enforcement actions being taken by the regulator against the company.Photo by Esmonde Yong on UnsplashOperating without registration The Securities Commission published a statement to its website late last week outlining that both Bybit and its CEO Ben Zhou had been reprimanded for carrying out digital asset trading activities in Malaysia without having completed the necessary registration. The regulator also pointed out that both Zhou and his company have been listed on its Investor Alert List since July 2021. The Securities Commission took the opportunity to remind investors that they should only deal with what it termed “Recognized Market Operators” (RMOs), a designation it applies to entities that have completed registration with the regulator. Investors who utilize unregistered platforms are not extended any form of protection under Malaysian securities law, the Securities Commission warned, adding that such platforms could put them at risk of fraud and implicate them in money laundering activity potentially. Enforcement actions Bybit has been directed by the regulator to disable its website and mobile applications that are currently targeting Malaysian investors within 14 business days from Dec. 11.  The regulator also wants the company to curb other forms of promotion aimed at Malaysian investors. With that, it has requested that the company take down its Telegram-based support channel for Malaysian customers. Advertising activity, including social media posts, must also cease in cases where such activity is aimed at Malaysian investors. The Securities Commission acknowledged that thus far, Bybit has been compliant with its latest enforcement requests. Intentions to secure licensing Bybit has responded to these developments on its Bybit Malaysia Telegram channel, stating that the company understands that these actions “may cause some inconvenience” to Malaysian customers. “Once we have secured the appropriate licenses, we look forward to reconnecting with you again in the future,” it added. The enforcement action is likely to be a setback for Bybit given that the firm appeared to be focusing on the Malaysian market of late. In June it emerged that the company was moving to relocate Chinese employees to both Malaysia and Dubai.  This is not the first occasion in which Malaysia’s Securities Commission has taken action against a crypto platform. In 2023 the commission ordered the closure of the Malaysian operations of global exchange Huobi (subsequently rebranded as HTX). The circumstances in that instance were similar in that it acted against the exchange and its CEO for operating illegally within the Malaysian market. Within the Malaysian market, only six trading platforms have been registered. These include Hata Digital, Luno, MX Global, Sinegy, Tokenize Technology and Torum International. Earlier the Securities Commission acted similarly in prohibiting Atomic Wallet from operating within Malaysia given its failure to register its digital asset exchange activities. 

OKX Strengthens Partnership with Manchester City Football ClubSeychelles-based crypto exchange OKX has announced the expansion of its sponsorship deal with Manchester City Football Club, the treble-winning English Premier League soccer champions.The announcement was made through a virtual reveal video featuring player avatars, presented at Manchester City’s Etihad Stadium. News of the deal was also posted on the English club’s website on Friday.While the valuation of the deal remains undisclosed, the collaboration signifies a significant milestone for both parties. The new agreement, which spans multiple years, establishes OKX as the official sleeve partner on both the men’s and women’s first-team playing kits.Photo by Giero Saaski on UnsplashExtended partnershipUnder this extended partnership, the OKX logo will be prominently displayed on the sleeves of Manchester City’s playing kits, solidifying its position as a key sponsor. Additionally, OKX will retain its presence on the club’s training kit sleeve.City Football Group, the holding company that owns Manchester City and other soccer teams like New York City FC and Melbourne City FC, oversees the management and operations of the club.OKX initially became Manchester City’s official cryptocurrency exchange partner in March 2022. Subsequently, in July of the same year, the exchange secured a sponsorship deal to feature its logo on the front of the club’s training kit throughout the 2022/2023 season. At the time, the agreement was reported to be valued at over $12 million.OKX CollectiveIn February, OKX launched the “OKX Collective” alongside Manchester City players Jack Grealish, Rúben Dias, Ilkay Gündoğan, and Alex Greenwood. This immersive metaverse fan experience offered exclusive content and rewards, allowing fans to engage with the club in a unique way.OKX’s CMO Haider Rafique expressed satisfaction with the evolving partnership, stating: “Manchester City was our first official global brand partnership, and in just a year and a half, we have come a long way. We always intended to integrate with the sport and help the club lead on leaning into Web3. Fast forward fifteen months, we now have a metaverse, an NFT initiative, and a number of other new projects that we are excited about.”Additional sports sponsorshipsBesides Manchester City, OKX has also established partnerships with other prominent sports brands and athletes, including McLaren Formula 1, the Tribeca Festival, Olympian Scotty James, and F1 driver Daniel Ricciardo.While OKX’s partnership with Manchester City strengthens its global fan base, it’s worth noting that the sale of crypto derivatives, a product offered by OKX, was effectively banned by the UK’s financial regulator in January 2021. Consequently, OKX and other crypto exchanges have refrained from advertising such services in the country.As the Premier League clubs have collectively agreed to restrict gambling sponsorships on team shirts, there are concerns that similar restrictions may be imposed on crypto company sponsorships. However, any such developments are expected to be some years away, as the changes regarding gambling sponsorships are scheduled to take effect in the 2026/2027 soccer season.Marketing spend by crypto firms has sobered up quite a bit since the heady heights of the last bull run. However, OKX remains one entity which has been fairly consistent in continuing its marketing efforts regardless of market conditions.