1st-Generation partners with Tapbit to venture into global blockchain market

Hashed Emergent to Host India Blockchain Week 2023 in DecemberHashed Emergent, a subsidiary of South Korean blockchain venture capital Hashed, will host India Blockchain Week (IBW) 2023 at the Sheraton Grand Hotel in Bangalore, India, from December 4 to 10.Hashed Emergent is a venture capital firm specializing in investments in early-stage companies bridging the gap between Web2 and Web3 in India. The firm was established by Hashed, a group dedicated to propelling the global adoption of the Web3 ecosystem. Hashed Emergent seeks to tap into the potential of emerging markets.Photo by Still Pixels on PexelsIndia’s Web3 surgeIndia is exhibiting promise in the Web3 market, driven by its economy, population, and tech advancements. Since 2015, there has been an increase of about sixfold in the number of Web3 startups in the country, with the count reaching 450 as of April 2022. Among them are four unicorns, namely Polygon, FalconX, CoinSwitch, and CoinDCX. Investment in Web3 startups has also seen a rise, with the figure touching $1.3 billion between 2021 and the first quarter of 2022. Furthermore, the Indian government appears to be taking a more accommodating stance towards the Web3 industry.Hashed Emergent is organizing this event for the first time to accelerate the expansion of the Web3 ecosystem in the burgeoning Indian market. IBW2023 is an international multi-chain conference that will delve into Web3 conversations across all industries. It is designed to foster connections between blockchain enterprises in India and abroad, uniting participants from the multifaceted blockchain landscape.Echoing the prominence of notable blockchain events like Singapore’s Token2049 and Korea’s Korea Blockchain Week (KBW), IBW2023 is expected to attract blockchain enthusiasts from around the world who are eager to see firsthand the evolving potential of India’s Web3 market.Flagship IBW’23 ConferenceThe flagship event, “IBW’23 Conference,” is set for December 6 to 7 and will spotlight five pivotal themes. Discussions will delve into the latest technical advancements in the blockchain realm, the role of Web3 in emerging markets, how global regulations will shape the blockchain sector, the prospects for Web3 in India, and the opportunities and hurdles facing Web3 expansion.About 120 prominent figures from the Web3 space are set to grace the event as speakers. They include Mo Shaikh, CEO of layer 1 blockchain developer Aptos Labs; Emin Gün Sirer, CEO of Avalanche blockchain builder Ava Labs; Sebastien Borget, co-founder of metaverse platform The Sandbox; and Simon Seojoon Kim, CEO of Hashed. Furthermore, the blockchain hackathon, ETH INDIA, is poised to attract over 1,500 developers, all geared to create the decentralized future of Ethereum.Tak Lee, CEO of Hashed Emergent, highlighted that India has been gaining traction as a major player in the blockchain industry. He shared that both Hashed and Hashed Emergent have been keenly observing the potential of the Indian Web3 market since early 2020. They are dedicated to ensuring IBW2023’s success, envisioning it as the first step towards the explosive growth of the Indian Web3 ecosystem.Meanwhile, Hashed Emergent is currently managing its first fund, Hashed Emergent Fund I, which has raised $20 million to date in multiple closings. In its first year and a half, the fund has invested in 28 portfolio companies, many of which have Indian founders. Major portfolio companies include Web3 game discovery and wallet app Glip, Web3 native incubator BuidlersTribe, and African web3 startup Nestcoin.

Hong Kong’s Bricks-and-Mortar Crypto Shops Attract Chinese VisitorsHong Kong has become a thriving destination for cryptocurrency enthusiasts, particularly mainland Chinese visitors, due to the ambiguity surrounding the regulatory status of these crypto shops.Despite the illegality of cryptocurrency transactions on the mainland and the ban on overseas exchanges serving onshore clients, Hong Kong allows legal crypto trading, and according to a recent report published by the Financial Times, the autonomous Chinese territory is being accessed by residents of the Chinese mainland for the purpose of trading crypto.Photo by Chapman Chow on UnsplashSurging demandBricks-and-mortar crypto shops, lightly regulated and scattered across the city’s popular tourism and shopping districts, have flourished thanks to the surging demand from mainland Chinese visitors. These stores offer customers the convenience of purchasing digital assets with cash, often without the need to disclose the source of funds or personal information.In contrast to the strict licensing requirements imposed on online exchanges in Hong Kong’s push to become a virtual assets trading hub, these over-the-counter (OTC) crypto stores provide customers with the opportunity to buy large volumes of cryptocurrencies with minimal or no verification checks.Before the border between China and Hong Kong reopened fully in February, mainland Chinese customers accounted for less than 5% of customers at Crypto HK, an OTC crypto outfit with two branches in the city. However, this figure has now increased significantly, making up around half of their customer base.Similarly, One Satoshi, a crypto store with nine branches in Hong Kong, reported trading volumes between January and May 2023 that were 20–25% higher than the same period the previous year. They anticipate a 35–40% increase in trading for the entire year.While some store owners, like Roger Li of One Satoshi, currently decline mainland Chinese customers due to Beijing’s crypto ban, they remain optimistic that restrictions will ease. This belief is prevalent among the crypto community in Hong Kong following the city’s announcement to become a virtual assets hub in October.Regulatory anomalyHong Kong introduced a new regulatory framework for cryptocurrency exchanges in June, requiring all online platforms operating in the city to apply for a license. However, most OTC stores still operate outside the purview of Hong Kong’s Securities and Futures Commission (SFC), presenting an area of further consideration for the government.OTC stores primarily serve as a simple way for users to convert money to and from unlicensed online exchanges, according to Carlton Lai, head of blockchain research at Daiwa Capital Markets. Hong Kong’s lenient regulations and ease of starting such businesses, as long as there is sufficient capital, contribute to the higher number of OTC stores compared to other locations.While some shops welcome increased regulation in the sector, others do not require customers to provide identification, promoting quick and anonymous transactions. However, this falls short of the investor protection measures mandated for online platforms seeking licenses to trade cryptocurrencies to retail clients.The lack of scrutiny faced by Hong Kong’s OTC shops, coupled with their proximity to mainland China — a market that ranked fourth globally for crypto trading in 2022 — makes them appealing to Chinese citizens still interested in the asset class.

Kazakhstan shuts out 980 non-compliant crypto exchanges in 2023Kazakhstan has implemented stringent measures in 2023 when it comes to regulating the crypto sector, resulting in the closure of 980 crypto exchanges that failed to comply with government regulations.That’s according to a press release published by the Central Asian country’s Financial Monitoring Agency (FMA), the state entity responsible for anti-money laundering (AML) policy. These measures, taken over the course of the year, were highlighted during the 39th Plenary Week of the Eurasian Group (EAG) in the resort city of Sanya, in Hainan province in China.Photo by Kuralbek Djumagaziev on UnsplashCombating money laundering threatsThe seminar served as a platform for participating countries to exchange experiences, with an emphasis on leveraging advanced technologies, including artificial intelligence, to effectively combat emerging threats related to money laundering and terrorist financing. The Kazakhstani delegation played a leading role in discussions on virtual assets.Ruslan Ostroumov, the Head of Kazakhstan’s Financial Monitoring Agency, showcased the country’s legislative regulations and robust measures to combat the illegal turnover of digital assets. Ostroumov reported the blocking of 980 illegal cryptocurrency exchange platforms in the current year. Additionally, nine investigations into illegal exchange operations, amounting to $36.7 million, have been initiated, accompanied by ongoing preventive measures.Registration process complexityWhile the seminar’s organizers commended Kazakhstan for its proactive stance against financial crimes in the virtual assets space, the country’s crypto laws have added complexity to the registration process for exchanges.In November, the Kazakhstani authorities blocked local access to the Coinbase website due to potential violations of the country’s digital asset legislation. This decision aligned with the law on digital assets, effective since February 2023, which prohibits the issuance and trading of digital currencies and cryptocurrency exchange businesses without proper licensing.While challenges remain for crypto platforms within Kazakhstan, some have been successful in their efforts. In May, crypto derivatives trading platform Bybit was successful in gaining approval to offer its services within the country. Binance followed suit in June, securing preliminary approval. Other platforms such as CaspianEx, Biteeu, ATAIX, Upbit, Xignal and MT have been granted permission to conduct trade in Kazakhstan.In December 2020, Kazakhstan formally legalized cryptocurrency mining, and on May 6, 2021, the National Bank of Kazakhstan announced plans to issue a “digital tenge,” their version of a central bank digital currency (CBDC). Various CBDC-related projects have followed. In September, the National Payment Corporation, an entity which will be responsible for CBDC development, was launched. The same month, the National Bank of Kazakhstan entered into a collaboration with financial messaging service SWIFT to work on an interoperable CBDC connector.For the most part, these comprehensive regulations and the issuance of a CBDC signify Kazakhstan’s broader acceptance and adaptation to the cryptocurrency landscape. Authorities internationally are trying to find a balance between adequate regulation and enabling innovation to take place. Kazakhstan is no exception, and with that, there are bound to be challenges as regulatory frameworks are optimized and tweaked along the way.