Metalpha invests in Nextgen Digital Venture

Hong Kong Says No to Light Touch RegulationThe CEO of the Hong Kong Monetary Authority (HKMA) has said that while the autonomous territory will allow innovation to develop in the crypto space, that will not mean light touch regulation.Photo by Ruslan Bardash on UnsplashLowering guard railsAfter a three year hiatus, the Bloomberg Wealth Asia Summit returned to Hong Kong on Tuesday. Speaking at the conference, Eddie Yue, the CEO of the HKMA, Hong Kong’s regulatory body, outlined that the territory intends to enable innovation relative to crypto businesses that establish themselves in Hong Kong.“We will let the industry develop and innovate, we will let them create an ecosystem here,” he said. However, he added the following caveat: “But that doesn’t mean light touch regulation. If any participant thinks that the regulation is too tight, they’re welcome to go elsewhere.”Yue outlined that over the course of the past three years, guardrails relative to the operation of crypto-related activities were excessively high. Yue alluded to a new approach that sees those guard rails dropped to a level whereby innovation will be enabled in the digital assets space. However, he followed up by underlining the fact that the Authority has no intention of following a light touch regulatory approach.No safeguards not an optionAlthough acknowledging that Hong Kong may have been excessively crypto unfriendly relative to digital asset regulation in the recent past, he believes that Hong Kong has now got it right. “Our guardrails are lower, to a reasonable and sustainable level,” Yue said.The HKMA regulator flagged jurisdictions that provide little or no guardrails at all as the ones that will run into difficulties. “If you look elsewhere, there are no guardrails in some places, the guardrails are very low and there you see problems”, Yue clarified.He cited FTX as a stand out example of a basic lack of internal controls. FTX International was based in the Bahamas. While customers of FTX International find themselves in a difficult position, those of subsidiary companies FTX Japan and FTX Europe are having their funds returned as a direct consequence of much better regulatory safeguards in those regions.“All those wrongdoings by the platforms that we saw in the last one or two years will not happen in Hong Kong,” Yue claimed.A continuing trendWhile many commentators and critics from the conventional world have described bitcoin and crypto as a ponzi or a passing fad, Yue pointed out that digital assets are not going anywhere and that the trend towards digital assets will continue. Expanding further, he articulated that the overarching digital assets sector encompasses much more than just crypto: “Virtual assets or crypto is actually a very broad term. It’s not really about crypto, you’re talking about stablecoins or tokenized assets in the future.”A mere $0.3 trillion of illiquid real world assets have been tokenized thus far. It’s anticipated that this level of tokenization will climb to $16 trillion by 2030.

Seoul to Host Web3 Festival This Summer, Igniting the Future of TechThe Seoul Metropolitan Government, together with blockchain company Baobab Partners and the Seoul Design Foundation (SDF), will host the Seoul Web3 Festival (SWF2023) from July 31 to August 2 at Dongdaemun Design Plaza (DDP), according to the South Korean capital’s press release.Photo by Mathew Schwartz on UnsplashSeoul and Web3 communitySWF2023 marks the inaugural event hosted by the Seoul Metropolitan Government in conjunction with the private sector, aiming to actively engage with the flourishing global Web3 community. The festival aims to enhance Seoul’s standing as a leading global city for pioneering technology and innovation.Under the slogan “Change, Chance, Challenge,” the festival offers an array of programs including a three-day hackathon, demo day for startups, an after-party for networking, and the introduction of the DDP 45133 project — an initiative converting the DDP building’s external panels into non-fungible tokens (NFTs).Three-day hackathonThe three-day hackathon will bring together teams consisting of two to six university students and tech professionals, both local and international. These teams will collaborate to develop practical Web3 solutions. With around 400 participants from 100 teams anticipated, the top ten teams will be selected based on criteria including applicability, business potential, teamwork, and innovation.Demo dayTo support the growth of Web3 technologies and blockchain companies, a demo day will be incorporated into the festival. Korean and international companies interested in participating need to complete an online application process. Out of the applicant pool, eight to ten teams will be chosen to showcase their products and services on-site during the demo day.The festival presents an opportunity for networking with accelerators, venture capitalists, and potential buyers, allowing selected companies to attract investments and establish growth foundations within the blockchain industry.DDP NFT projectThe DDP 45133 Project, managed by the SDF, aims to digitize the 45,133 silver panels of the DDP structure into NFTs. Owning an NFT of a DDP panel offers several benefits, such as the chance to join the DDP community. The Foundation sees this project as a way to highlight one of Seoul’s iconic landmarks and an innovative example of public facility shared ownership.Participating partnersAmong SWF2023’s partners are Korean companies Hexlant and Fingerlabs, along with global collaborators like Crypto.com, Cronos Labs, LBK Labs, and HK Central Research.Benefits for top-performing teamsTop-performing teams from the hackathon and demo day stand to gain support through accelerator programs provided by global companies. This could include valuable resources like mentorship, early-stage investments, networking opportunities, and support for overseas expansion, fueling the growth and success of the participating teams.The application window for SWF2023 will be open from May 23 to June 30, with interested parties able to apply via the official website: www.swf2023.com.With its spotlight on Web3 innovations, SWF2023 aims to familiarize the public with emerging trends, while offering a springboard for blockchain projects to secure investments.

Fobl Partners with KDAC to Store Part of Customers’ Assets in CustodyKorean non-fiat cryptocurrency trading platform Fobl announced on Tuesday that it has teamed up with Korea Digital Asset Custody (KDAC) to provide enhanced customer protection.©Pexels/Savvas StavrinosKDAC, backed by Shinhan Bank, has been providing virtual asset custody services to businesses seeking safe asset management.Collaboration plans between Fobl and KDACWith the partnership, the two sides will store a portion of Fobl customers’ assets in custody, build a systematic process for custody of projects’ virtual assets and their pre-disclosures, and seek out new business opportunities in the Korean security token market.Fobl’s potential transformation to fiat exchangePreviously, it was reported that Fobl is set to face a comprehensive inspection next week from the Financial Intelligence Unit (FIU) under the Korean Financial Services Commission (FSC).This move from the FIU suggests that Fobl may soon become a fiat crypto exchange in the near future, as the financial regulator has announced that it will first inspect non-fiat exchanges that are preparing to allow fiat trading.