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Saudi Arabia’s NEOM Forms $50M Animoca Brands PartnershipHong Kong’s Animoca brands, a gaming and metaverse venture capital firm, is embarking on a partnership with Saudi Arabia’s NEOM Investment Fund, focusing on pioneering Web3 initiatives.Animoca announced the initiative via a statement published to its website on Monday. NEOM is an ambitious project aiming to create a futuristic urban oasis in northwest Saudi Arabia, serving as a nexus for technology, commerce, entertainment, and tourism. It is planning to invest $50 million in Animoca.Photo by Hala AlGhanim on UnsplashDeveloping Web3 service capabilitiesThis collaboration will see Animoca harness its expertise to develop Web3 service capabilities with broad global applications in tandem with NEOM, aligning with NEOM’s vision of becoming a cutting-edge tech hub of the future.Animoca Brands has been a prominent player in the Web3 investment arena for several years. In July 2022, the company’s valuation soared to $6 billion, with backing from notable entities such as Singapore’s state investment fund, Temasek. Despite its ambitious goal to secure $2 billion for its metaverse fund in November of the same year, those expectations were significantly tempered following the FTX collapse. Consequently, in March, Animoca revised its target to a more modest $800 million.In-house market makingA report by The Block on Friday revealed that Animoca has been making efforts to pitch an in-house market making service to fledgling Web3 businesses within its portfolio. That service has been presented by the company to more than 400 startup projects in which it has been an investor over recent months.The key market makers in the crypto space include Wintermute, Keyrock, and GSR. This move by Animoca potentially puts Animoca in direct competition with these primary crypto-sector market makers. An in-house digital asset team has been tasked with offering the service. An Animoca spokesperson stated:“Its primary role, much like the treasury teams in many large corporations, is to optimize the utilization of the company’s balance sheet. The team does conduct market-making to ensure there is enough buy/sell liquidity for certain tokens, which is similar to the function that third-party market makers conduct, except that we choose to perform this in-house for scale and efficiency.”Saudi diversificationAs part of its Vision 2030 initiative, Saudi Arabia has been looking to diversify away from its predominantly oil-based economy. In an interview last month, Animoca Brands Founder Yat Siu outlined that the Middle Eastern country is embracing new technologies such as artificial intelligence (AI) and blockchain, encompassing blockchain-based gaming and Web3.In July it emerged that the Saudi Central Bank (SAMA) and the Hong Kong Monetary Authority (HKMA) were looking to extend the level of collaboration between the two territories relative to international payments and tokenization.This renewed interest from state-backed funds in Animoca suggests a potential shift in the Web3 venture capital landscape, coinciding with broader indications of a thaw in the crypto winter. The collaboration with NEOM and the injection of $50 million underscore the growing recognition of Web3’s potential, cementing Animoca Brands’ position as a key player in the ever-developing Web3 space.

RBI Official Encourages Indian Banks to Adopt BlockchainIn a recent conference organized by the Reserve Bank of India (RBI), Deputy Governor Mahesh Kumar Jain highlighted the importance of adopting innovative technologies like artificial intelligence (AI) and blockchain to ensure sustainable growth and stability in the country’s banking sector.Speaking at the RBI-hosted event for directors of Indian banks last week, Jain emphasized the need for effective corporate governance, governance structure, and risk management strategies to tackle future challenges arising from technological disruptions, evolving customer expectations, and cybersecurity threats.Photo by rupixen.com on UnsplashLeveraging AI and blockchainThe recommendation to leverage AI and blockchain technologies aligns with India’s digital transformation goals and the desire to enhance customer experiences while investing in cybersecurity measures. Jain advised Indian banks to prepare for the future by focusing on digital transformation, exploring innovative technologies like AI and blockchain, and seeking collaborative opportunities with other industry players. He also emphasized the importance of upskilling the workforce to meet the demands of the digital era.Inconsistent approachThis proposal comes at a time when the Indian government’s stance on cryptocurrencies remains ambiguous. While India has been exploring the introduction of a central bank digital currency (CBDC), the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which aimed to establish regulations for digital currencies, has not been legislated.According to the RBI’s annual report, which was published on Tuesday, the central bank is progressing with its retail central bank digital currency (CBDC) pilot program, with plans to expand the number of banks involved, the use cases, and the number of locations. It had expanded the scope of the project to involve one million citizens, but it’s looking to broaden that user base also. In contrast, the country’s approach to decentralized cryptocurrency has been contradictory, sometimes banning it and at other times, allowing it.It is noteworthy that India’s neighbor, Pakistan, has also recently announced plans to train one million IT graduates in AI by 2027, with potential applications in weather prediction, agriculture supply chain optimization, and health services transformation.The RBI’s recommendation to adopt AI and blockchain technologies reflects the growing recognition of their potential benefits for the banking sector.Embracing tech innovation in bankingBy embracing these technologies, Indian banks can enhance efficiency, automate processes, and strengthen security measures. The adoption of AI and blockchain has the potential to transform various aspects of banking, including risk management, fraud detection, customer service, and transaction processing.While India continues to navigate the regulatory landscape surrounding cryptocurrencies, the central bank’s focus on AI and blockchain signals its commitment to embracing technological advancements and preparing the banking sector for the future. As India’s financial ecosystem evolves, the adoption of these technologies can empower banks to offer innovative services, streamline operations, and provide secure and efficient financial solutions to customers.The RBI’s emphasis on digital transformation, AI, and blockchain paves the way for Indian banks to explore new avenues for growth and resilience. As the country progresses on its digital journey, the adoption of emerging technologies will play a pivotal role in shaping the future of the banking sector and contributing to India’s overall economic development.

Taiwan Proposes New Crypto Business CategoryWith regulation having trailed the crypto innovation, more recently it seems like every day brings further developments, with the latest installment seeing Taiwan take a significant step forward. Officials in Taipei are proposing the classification of crypto regulations within their own novel business category.Photo by Jack Brind on UnsplashFostering self-regulationThe move aims to potentially allow cryptocurrency-related companies to establish industry associations, ultimately fostering the creation of self-regulatory guidelines. The Ministry of Economic Affairs, in a recent announcement, unveiled its draft amendment to the Standards of Classification of Commercial Group regulations. This proposed amendment centers on the inclusion of a distinct category for digital asset services.An official from the economic ministry informed The Block that the freshly introduced business category outlines the scope of operations within the cryptocurrency sector. This encompasses various activities, such as cryptocurrency to fiat or digital token exchanges, facilitating cryptocurrency transfers, offering services for crypto storage and management, and providing assistance related to cryptocurrency issuance or sales.The official further elaborated that cryptocurrency firms will be permitted to form industry associations once the proposed business category is successfully incorporated into the relevant regulations. Seeking public input, the ministry anticipates finalizing the amendment in collaboration with the Ministry of the Interior in either mid- or late-October.Encouraging trade associationsBy allowing the establishment of industry associations, cryptocurrency companies can proactively devise self-supervisory rules that address industry-specific challenges and concerns. This move is anticipated to bolster transparency, security, and responsible conduct within the cryptocurrency ecosystem.Taiwan’s approach to virtual asset services providers (VASPs) has mandated compliance with anti-money laundering laws since the implementation of anti-money laundering regulations by the Financial Supervisory Commission in July 2021. However, the overall industry remains relatively unregulated within the country.Binance, the world’s largest cryptocurrency exchange, has recently embarked on the process of obtaining registration for anti-money laundering compliance under the FSC.Regulatory guidelines being draftedAs the regulatory landscape evolves, Taiwan’s FSC, which assumed its role as the principal regulator overseeing the crypto industry in March, is actively formulating comprehensive guidelines. These guidelines will cover trading and payment aspects associated with cryptocurrencies for VASPs.An FSC official revealed that the agency plans to unveil the VASP guidelines by the end of September. It’s understood that the guidelines will comprise thirteen regulatory principles. It’s believed that the issuance of crypto assets will be permitted but that stablecoin issuance will be prohibited. One prerequisite for the issuance of digital assets will be a requirement to accompany that issuance with a comprehensive whitepaper, detailing fundamental and necessary information that investors can review, relative to the token offering.Taiwan’s proposition of a novel business category signifies a pivotal move towards enhanced self-regulation and industry cohesion within the cryptocurrency sector. As the regulatory framework takes shape, the introduction of self-regulatory guidelines is poised to contribute to the responsible growth of the cryptocurrency industry in Taiwan.