Taiwan’s FSC plans crypto draft regulations by September

Former Coinbase Japan CEO Joins Fidelity-Backed VCWell-known investment firm Eight Roads Ventures has recruited the former CEO of Coinbase Japan to join them as a partner within the firm.Eight Roads Ventures, a prominent investment firm backed by Fidelity with assets worth over $11 billion, has announced the hiring of Nao Kitazawa as a venture partner. Kitazawa brings a wealth of expertise and experience garnered at Coinbase Japan and elsewhere in the digital assets industry to the firm.In a recent LinkedIn post, Kitazawa expressed his excitement about joining Eight Roads Ventures to pursue his passion for fintech and Web3. He acknowledged the firm’s successful track record of supporting innovative and disruptive companies and considered it an honor to be part of such an organization.Photo by Marten Bjork on UnsplashCoinbase exited JapanKitazawa’s tenure at Coinbase Japan came to an end earlier this year, coinciding with Coinbase’s decision to exit the Japanese market due to prevailing “market conditions.” His appointment at Eight Roads Ventures indicates the increasing interest and involvement of Fidelity, the firm’s backer, in the cryptocurrency space.Fidelity has been making significant strides in the crypto industry. EDX Markets, a crypto exchange backed by Fidelity, recently announced its launch despite regulatory challenges from the United States Securities and Exchange Commission (SEC) and a bearish market environment.TradFi heavyweight in cryptoFidelity is probably the standout heavyweight firm from traditional finance which has stepped foot in the crypto space from early on. It has done so through Fidelity Digital Assets, its crypto arm. The subsidiary company quietly rolled out its trading platform this year, providing millions of users with commission-free trading of bitcoin and ether. Additionally, Fidelity has been expanding its crypto research team, demonstrating its commitment to the industry.Headquartered in Bermuda, Eight Road Ventures positions itself as a global venture capital firm that helps entrepreneurs scale. It backs and partners with game-changing technology and healthcare companies, with a presence in China, Europe, India, and Japan.Eight Roads has also been actively investing in various crypto startups, including Fireblocks and Kaiko. Kitazawa’s appointment is expected to bring significant value to the firm’s portfolio, leveraging his knowledge and insights gained from working in the cryptocurrency sector.Originally known as Fidelity Ventures, Eight Roads Ventures has been involved in investments since 1969, initially operating out of Boston. Recently, it launched a $350 million technology investment fund in China and a $250 million healthcare and life sciences fund in India, demonstrating an interest in pursuing emerging opportunities in Asia.Shifting strategic focus overseasWith the addition of Nao Kitazawa as a venture partner, Eight Roads Ventures reinforces its position as a leading investment firm with a keen interest in the evolving landscape of fintech, Web3, and cryptocurrencies. It’s likely that the firm recognizes what way the regulatory winds are blowing, and with that, it’s bringing on board someone of Kitazawa’s caliber, with expertise outside of the US.Against the backdrop of a currently adverse regulatory environment in the US, earlier this month US VC giant Andreessen Horowitz (a16z) opened its first international office in London, in what many perceived to be a move towards a more regulatory progressive environment relative to the emerging digital assets sector.

Korea’s FSC Embarks on Developing Regulatory Framework for VASPsThe South Korean Financial Services Commission (FSC) has taken a step towards the development of a virtual asset regulation system by seeking external parties to undertake a research project in this area, according to local news agency News1.Photo by Joshua Miranda on PexelsSecond phaseEarlier this month, the National Assembly passed the Virtual Asset User Protection Bill, aimed at protecting investors and preventing unfair trading practices. This legislative accomplishment, scheduled to go effective in July next year, is referred to as the “first phase” of virtual asset regulations. Building upon this foundation, the FSC has now shifted its focus to the “second phase,” which involves the regulation of virtual asset service providers (VASPs).Regulating VASP operationsOne primary concern regarding VASPs is the potential for conflicts of interest arising from their involvement in the issuance and distribution of virtual assets. In response, the FSC is determined to design a regulatory framework that covers a wide range of virtual assets, including stablecoins, security tokens, and utility tokens.In addition to this, the FSC intends to establish a system that governs advisory and disclosure businesses, which will play a crucial role in disseminating information about asset prices and disclosures.Moreover, the regulatory system will include guidelines for holding parties accountable in case of incidents and for overseeing the operations of VASPs to maintain a safe and fair market environment.The FSC acknowledges the significance of aligning policies with international standards. To achieve this, the commission will conduct an examination of virtual asset regulatory approaches taken by different countries and international organizations. Through this study, the FSC aims to integrate global best practices and approaches into Korea’s own regulatory framework for virtual assets.Once the study is complete, the FSC has to report the result to the National Policy Committee of the National Assembly by July 2024 before the Virtual Asset User Protection Bill goes into effect.

Upbit Investor Protection Center Launches Second Cohort of Up!To ProgramThe Upbit Investor Protection Center of Dunamu, the operator of South Korea’s largest cryptocurrency exchange Upbit, recently announced that it conducted an inauguration ceremony in Gangnam-gu, Seoul, for the second cohort of its Up!To program. This initiative encourages university students to engage in the promotion of the virtual asset industry through the creation of innovative content. Notably, this new cohort consists of 30 members, almost double the size of the initial group.The event kicked off with a warm congratulatory speech from Dunamu CEO Lee Sirgoo. Following that, appointment letters and welcome kits were presented to the attendees. Then, each participating team took the stage to deliver their presentations.Photo by Annie Spratt on UnsplashThree months of engagementUnder the slogan “Build Your Own Block,” the second Up!To cohort will engage in a range of activities for about three months. These activities will involve creating content focused on digital assets and investor protection, brainstorming ideas to enhance Upbit’s services, and attending events hosted by Upbit. The group will also take part in various environmental, social, and governance (ESG) activities to contribute to society.Financial support and incentivesThe Upbit Investor Protection Center will offer financial support to participants to help fund their activities. In addition, the top-performing team will be awarded a cash prize of KRW 5 million (approximately $3,700), while standout individual participants will receive KRW 3 million. Those who excel in the overall evaluation will also have the chance to earn a three-month internship at Upbit.At the ceremony, Lee Hae-boong, the head of the Upbit Investor Protection Center, expressed his hope that the Up!To participants would seize this opportunity to build meaningful “blocks” in their own lives. He also encouraged them to bring forward innovative ideas that would contribute to fostering a healthy culture around digital asset investment.Meanwhile, updates on the activities of the second Up!To cohort will be available on the official YouTube channel and website of the Upbit Investor Protection Center.