Blockchain investment firm Hashed invests $28.4 million in 29 projects in 2023

Hong Kong’s Metalpha Secures $5M Investment from BitmainMetalpha Technology Holding, a Hong Kong-headquartered crypto-based wealth management company, has recently announced a significant milestone for its Next Generation Fund I. The fund, put together in collaboration with NextGen Digital Venture Limited, has secured a strategic investment of $5 million from Bitmain, a prominent player in the crypto space.Photo by Pixabay on PexelsFund expansionThe timing of this investment is noteworthy as Metalpha’s licensed fund products are experiencing rapid growth. These products cater to the increasing demand for exposure to cryptocurrencies among institutional investors, family offices, and high net worth individuals. The Next Generation Fund I serves as a regulated and compliant avenue for investing in the Grayscale Trust’s digital asset investment products through structured derivatives.Having set a target capital raise of $100 million, the fund had already secured $20 million by March of this year, demonstrating a strong market interest. This additional $5 million investment from Bitmain further solidifies Metalpha’s position and potential for expansion.Adrian Wang, the President of Metalpha, commented on the development: “We aim to capitalize on the fast growing digital assets industry here in Hong Kong and provide our clients with competitive, complaint products worldwide.”Founded in 2015, Metalpha aims to provide customers with high-quality investment products and trading capabilities. The company, which went public in October 2017, claims to deliver the best structured derivative products to participants in the cryptocurrency market.Strategic investmentThe strategic investment from Bitmain not only brings substantial financial backing to Metalpha’s Next Generation Fund I but also signifies the confidence that industry leaders have in the company’s potential. Bitmain’s reputation as a prominent manufacturer of cryptocurrency mining hardware lends credibility to the investment and serves as a testament to Metalpha’s position in the market.The digital assets sector has had to deal with a 2022 bear market and macroeconomic headwinds. Notwithstanding that, the investment is timely and while we are not in bull market conditions, the space remains progressive, working towards ongoing adoption. Institutional investors, in particular, are increasingly seeking exposure to digital assets as part of their diversified portfolios. Metalpha’s licensed fund products provide a regulated and compliant solution to meet this demand, offering investors a secure and structured way to access the cryptocurrency market.Asian hubHong Kong, as a global financial hub and aspiring crypto hub, has witnessed substantial interest in digital assets in recent months. The region’s supportive regulatory environment, combined with its proximity to major Asian markets, makes it an attractive destination for companies like Metalpha to operate and grow. The autonomous Chinese territory’s credentials have been bolstered in that respect recently with a move to permit retail crypto trading while enabling aspiring digital asset unicorns.The $5 million investment from Bitmain will enable Metalpha to further enhance its fund offerings, expand its reach, and strengthen its position as a leader in crypto-based wealth management. With the financial support and industry expertise of Bitmain, Metalpha can leverage this partnership to drive innovation and develop new investment opportunities for its clients.As the digital assets industry continues to evolve and mature, companies like Metalpha play a crucial role in bridging the gap between traditional finance and the crypto space. By providing regulated investment products and maintaining compliance with regulatory frameworks, Metalpha contributes to the overall growth and legitimacy of the cryptocurrency market.

Tel Aviv-based cryptocurrency accounting and taxation reporting platform TRES has successfully raised $11 million in a funding round led by Faction Ventures, with participation from New Form, Boldstart Ventures, Cyber Fund and Ambush Capital.Photo by Markus Winkler on Unsplash Sustained investor buy-inThe firm announced this latest financing round on its website on Wednesday. It brings TRES’s total funding to $18.6 million. This recent instance of funding comes on the heels of TRES’s previous success in securing $7.6 million in seed funding in September 2022. That round was led by Boldstart Ventures and Alchemy Ventures. The diverse participation included F2, New Form, Kenetic Capital, Blockdaemon Ventures and Mantis. With Miami-based Boldstart Ventures being a key investor in both funding rounds, Boldstart partner Shomik Ghosh took to social media on Wednesday to comment on this latest development, stating: “The Tres team and founders @TalZackonand @eilonlotem embody perseverance more than anyone I’ve ever met[.] So proud to work with you guys and learn how to handle yourselves in stressful situations taking care of family, friends, colleagues, and country[.]” $19B client baseTRES currently serves a client base with combined assets valued at $19 billion, offering comprehensive solutions to manage, monitor and reconcile digital asset activities. The platform supports over 100 Layer 1 and Layer 2 blockchains, including popular ones like Bitcoin, Ethereum, Solana and Avalanche. Notably, TRES has ambitious plans to continually expand its supported blockchains, aiming to introduce support for “new blockchains every week,” according to a recent announcement. As the cryptocurrency industry witnesses increased institutional adoption, there is a growing demand for sophisticated accounting and taxation reporting tools, mirroring those available in traditional finance. TRES is working towards positioning itself to address this need by providing a comprehensive solution for firms to gain a “full and accurate picture across all of their Web3 financial activity,” stated Tal Zackon, co-founder and CEO of TRES. Zackon emphasized the importance of compliance across accounting, audit and reporting functions, asserting that TRES facilitates an easy path for customers to navigate these regulatory landscapes. The Series A funding round, led by Faction Ventures, signifies TRES’s commitment to further developing its platform to meet the evolving needs of the crypto industry. Optimistic outlookZachon told The Block that the outlook for crypto looks bright in terms of extending its appeal to new market participants. He stated: “This next bull cycle will have something that no other bull cycle before it had — dozens of live blockchain networks, thousands of decentralized applications, battle tested infrastructure, and the adoption by major banks and government organizations around the world. The number of companies that will hold crypto on its balance sheets is about to explode, and we are here to serve them — no matter how complex the transactions are.” With this latest round of venture capital backing, TRES appears to be well-positioned in striving to become a key player in facilitating transparent and compliant financial operations for an ever-expanding array of blockchain networks and decentralized applications. As the crypto industry matures, the importance of robust accounting and taxation reporting solutions like TRES is poised to grow in tandem with the increasing complexities of financial transactions within the blockchain ecosystem.

South Korea’s FIU Faces Staffing Cuts Amid Crypto ChallengesThe Financial Intelligence Unit (FIU), a department operating under the South Korean Financial Services Commission (FSC), is downsizing its Virtual Asset Inspection Division, reducing its members from nine to seven, as reported by the local news outlet Etoday. The FIU has faced chronic understaffing for several years, and with the cryptocurrency market expanding and issues accumulating, there is growing concern within the industry about the possibility of a regulatory and supervisory gap.Photo by JEONGUK — on UnsplashTemporary division’s tenure extensionMeanwhile, the FIU seeks to extend the tenure of the temporary virtual asset inspection division, currently scheduled to operate from September 16, 2023, until June 30, 2024. Presently, this division comprises one rank 4 officer, four rank 5 officers, three rank 6 officers, and one rank 7 officer. However, the upcoming organizational changes will involve the removal of one rank 5 officer and one rank 6 officer. Moreover, the two temporary employees (one rank 5 and one rank 6), assigned specifically to examine and analyze financial transactions related to virtual assets, will be reduced to a single rank 5 officer.Understaffing and budget issuesAfter several years of grappling with staffing shortages, it appears that a decision has been made to actually reduce the overall number of FIU personnel. Last year, when the NPC of the National Assembly reviewed the budget of the FSC, it pointed out the shortage of FIU personnel. According to the NPC’s report on the FSC, as of 2022, the FIU’s capacity was 83 staff members. However, the current number stands at only 68, which includes 34 individuals who have been seconded from other agencies. Additionally, there are an additional 13 personnel whose positions are not represented in the organizational chart.The FIU’s spending on labor costs has consistently been lower than that of the FSC’s headquarters each year. Between 2017 and July 2022, the FIU used, on average, 83.71% of its allocated budget for labor costs. In contrast, the FSC had a higher average utilization rate at 89.2%. The NPC pointed out that this discrepancy is largely due to staffing imbalances between the two organizations, suggesting that a reevaluation of staffing levels may be necessary.The FIU has long been considered a less popular unit within the FSC. In recent years, the situation has become particularly challenging for the Virtual Asset Inspection Division, which has been swamped with various problems. This has led to a general reluctance among FSC staff to join this particular division.A person familiar with the matter told Etoday that departments within the FSC focusing on financial policy areas like insurance, banking, and capital markets have traditionally been the go-to choices for those aiming for promotions. However, the source added that there’s been a recent shift: more officers are now showing interest in joining the FIU, often with an eye toward transitioning into related industries after retirement.MOIS hesitant on permanent staffingMeanwhile, the Ministry of the Interior and Safety (MOIS) has been reluctant to make the FSC’s Financial Innovation Bureau and the FIU’s Virtual Asset Inspection Division permanent fixtures. While the FSC argues that solidifying these divisions would necessitate a larger staff and budget, the MOIS is holding back. According to another source, the staffing issue isn’t exclusive to the FIU; the FSC as a whole is understaffed. Despite the FSC’s desire to expand its workforce, the MOIS remains unwilling to approve the additional resources.Crypto professionals are worried that financial regulators are cutting back on staff even as challenges within the sector continue to mount. An official from a virtual asset exchange voiced frustration, pointing to the contrasting approach in neighboring Japan. The official noted that Japan is actively pushing to advance its Web3 sector by not only establishing a dedicated virtual asset department within its Financial Services Agency, but also by forming specialized task forces to address specific challenges. The official finds it baffling that Korea, on the other hand, is downsizing departments that tackle these important issues.