Bunzz expands Web3 enterprise services in Japan

Major Japanese securities firms are moving deeper into the cryptocurrency market, underscoring the rapidly evolving nature of Japan’s financial sector. According to DL News, citing Nikkei, Nomura Holdings, Daiwa Securities Group, and SMBC Nikko Securities are exploring plans to launch their own crypto exchanges as Japan edges closer to regulatory approval of crypto exchange-traded funds (ETFs).Photo by Jakub Żerdzicki on UnsplashETFs could spur demandNomura is expected to lead its effort through Laser Digital, its Swiss-based crypto subsidiary, and plans to pursue a domestic exchange license and launch its service by year-end. The move comes after Laser Digital trimmed its crypto positions following third-quarter losses. Despite the setback, Nomura has reiterated its long-term commitment to digital assets. SMBC Nikko Securities, meanwhile, has established a dedicated decentralized finance (DeFi) unit to assess new business opportunities in blockchain-based financial services.  The firms are positioning themselves ahead of what they expect to be a surge in demand if Tokyo lifts restrictions on crypto ETFs. Japan is reportedly working toward approving such products by 2028. In preparation, the Financial Services Agency is considering classifying digital assets as eligible for inclusion in investment trusts—a key step toward broader institutional adoption. Institutional appetite is already building. A November Nikkei survey found that six major firms—including SBI, Nomura, and Daiwa—are developing crypto investment offerings in expectation of eventual approval by the Tokyo Stock Exchange. The 2028 rollout hinges in part on tax reform. The government is weighing a shift from the current progressive tax regime, which can impose rates of up to 55% on crypto gains, to a flat 20% rate—aligning digital assets with the taxation of traditional equities. Authorities find that a two-year buffer is needed to ensure exchanges and oversight bodies can implement the new rules effectively. SBI to acquire Singapore’s CoinhakoIn parallel, SBI Holdings is expanding its regional footprint. The financial services group announced that its Singapore-based subsidiary, SBI Ventures Asset, has signed a letter of intent with Coinhako to pursue a majority acquisition of the virtual asset service provider. The two sides aim to combine their capabilities to deliver integrated services spanning traditional finance and digital assets for both retail and institutional clients. Details of the proposed capital injection and share purchases from Coinhako’s existing shareholders remain under negotiation and subject to regulatory approval. Amid the industry’s expansion, traditional finance is increasingly weighing stablecoins against Bitcoin. According to The Crypto Basic, Lee Hardman, a currency analyst at Japan’s MUFG Bank, said that stablecoins may prove more effective than Bitcoin as a medium of exchange, a unit of account, and a store of value. Their price stability has been cited as a key advantage, as reduced volatility lowers transaction risk for merchants and consumers.

OPNX Makes a Play for Struggling Crypto Lender HodlnautIn a strategic move OPNX, the crypto claims trading platform associated with the founders of failed Singaporean crypto hedge fund Three Arrows Capital (3AC), is eyeing the acquisition of Hodlnaut, a beleaguered crypto lender currently undergoing court-supervised restructuring in Singapore.Photo by Meriç Dağlı on UnsplashCompelling offerThat’s according to a person familiar with the matter cited by Bloomberg News on Sunday, together with a term sheet seen by Bloomberg. It’s understood that OPNX has presented a compelling offer to infuse Hodlnaut with a much-needed capital injection of approximately $30 million worth of FLEX digital tokens.These tokens are closely tied to CoinFLEX, a trading platform that ran into difficulty in 2022, co-founded by Mark Lamb and Sudhu Arumugam. The Seychelles-based company rebranded and relaunched as OPNX earlier this year with the 3AC founders on board. The FLEX token holds a current market valuation of around $647 million, according to CoinGecko data.Partial creditor payoutThe OPNX proposal aims to fund a partial creditor payout to facilitate the resolution of pending claims. This proposal comes on the heels of efforts by Hodlnaut’s directors to reach out directly to its users, a move that was met with objections by the interim judicial managers overseeing Hodlnaut’s restructuring. A letter dated July 29 from the administrators confirms this development.Under the terms of the deal outlined in a term sheet, OPNX’s capital injection through FLEX tokens would translate into a 75% ownership stake in Hodlnaut. The restructuring plan, if approved by creditors, would see these creditors receiving 30% of their claims in FLEX and other tokens. Alternatively, they would be entitled to a pro-rata payment of up to 95% of the total available corporate assets, whichever is more favorable to them.Hodlnaut, headquartered in Singapore with operations also in Hong Kong, got caught up in crypto market turbulence, leading to a suspension of withdrawals a year ago. Subsequently, it embarked on a court-monitored restructuring journey in Singapore. Neither Hodlnaut nor its judicial managers have provided immediate comments on the OPNX bid.The founders of Hodlnaut, Simon Lee and Zhu Juntao, had earlier proposed a business sale as a preferable alternative to liquidation. This proposal aimed to provide better outcomes for creditors, who had initially expressed preference for liquidation over a proposed restructuring plan earlier in the year.OPNX reprimandThe journey of both OPNX and Hodlnaut is also marked by legal and regulatory challenges. In April, authorities in Dubai reprimanded Su Zhu, Kyle Davies, Mark Lamb, OPNX’s CEO Leslie Lamb, and Sudhu Arumugam for operating and promoting OPNX without the required local license. Meanwhile, the liquidators of 3AC have alleged a lack of cooperation by Zhu and Davies, as they seek to recover $1.3 billion from the duo, reflecting the losses preceding the fund’s downfall.The 3AC founders recently claimed that they would donate OPNX profits to 3AC creditors. However, Kyle Davies is fighting the efforts of the 3AC liquidator to reclaim funds from the founders.

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.