Crypto boom drives $17.5B surge in demand deposit at Korean banks

Nano Labs, a Web3-focused semiconductor design company listed on the Nasdaq (NA) and headquartered in Hangzhou, China, has arranged $500 million in financing to fund a BNB treasury. In a press release published on the company’s behalf by GlobeNewswire on June 24, Nano Labs outlined that it has entered into a convertible notes purchase agreement with a number of investors. Convertible promissory notes to the value of $500 million will be issued. Holders of the notes, which mature in 360 days, have the option to convert them to Class A ordinary shares at an initial conversion price of $20 per share. Unconverted notes will not accrue interest, but will be repaid in line with the initial principal amount at maturity. 5%-10% of BNB’s total supplyNano Labs asserted that the agreement “marks an important step in the company’s strategic growth.” It stated that as part of the initiative it plans to conduct an in-depth assessment of the BNB token, the native token of the BNB Chain ecosystem. The token enables transactions on the BNB Chain and access to various services and decentralized applications (DApps) that run on the blockchain network. In the initial phase of the initiative, Nano Labs plans to acquire $1 billion worth of BNB through convertible notes and private placements. In the long term, the firm plans to build up a holding equal to 5% to 10% of BNB’s total circulating supply. On X, @Whdysseus, the pseudonymous founder of Asian Web3 and crypto financial media project BroadChain Finance, commented on Nano Labs' BNB reserve initiative, considering it to be a BNB version of the Bitcoin treasury strategy pioneered by American firm Strategy (formerly MicroStrategy).Photo by Vadim Artyukhin on UnsplashShare price surgeChangpeng Zhao (CZ), the co-founder and former CEO of Binance, who has been heavily involved in the development and overall vision of BNB Chain, outlined on X that Nano Labs’ share price “went through the roof” following the announcement. He added that none of his affiliated entities participated in the funding that Nano Labs has put in place. At the time of writing, Nano Labs stock (NA) was trading at $14.85, up 36.36% over the course of 24 hours. Nano Labs isn’t the only corporate entity to declare an interest in holding BNB. According to a report published by Bloomberg on June 23, former executives at Coral Capital, a Japanese venture capital firm, are understood to be in the process of raising $100 million through a newly formed entity called Build & Build Corporation, in order to launch a crypto treasury that will invest in BNB. In another positive development, on-chain analytics firm Nansen highlighted last month that the BNB Chain had seen active addresses double to two million.  Earlier in May, Geoff Kendrick, head of digital asset research at Standard Chartered, outlined in a research report that the BNB token could reach a unit price of $2,775 by 2028. Kendrick maintained that the deflationary nature of the token, together with its ties to the Binance exchange platform, are factors that support its long-term value.

Hong Kong's financial watchdog, the Securities and Futures Commission (SFC), has issued a stern warning against two crypto investment schemes, namely the "Floki” and “TokenFi” staking programs. Offering high annual returnsThese programs, luring investors with enticing promises of annual returns ranging from 30% to over 100%, have triggered concerns within the regulatory authority due to their lack of authorization and questionable nature. In an update issued on Friday, the SFC emphasized that both Floki and TokenFi's staking offerings have not been granted approval for public offerings. Furthermore, the administrators of these programs have failed to provide convincing explanations about the feasibility of achieving such unusually high returns. The SFC cautioned that engaging in staking arrangements involving virtual assets without proper authorization may constitute unauthorized collective investment schemes.Photo by Sigmund on UnsplashUnsustainable yieldThe watchdog expressed its worry about the legitimacy of these staking programs, highlighting that neither has received the necessary authorization to provide services to the public in Hong Kong. Investors participating in these programs would not be protected under the SFC's regulations, potentially exposing them to significant financial losses. With the failure of many crypto platforms in 2022, a number of industry commentators began to question the sustainability of some public offerings. One such commentator, Allen Farrington, General Partner at bitcoin-native venture capital firm Axiom, repeatedly asked, “Where does the yield come from?” That appears to be the SFC’s concern in this instance. In its statement, it reaffirmed its commitment to upholding regulatory standards and safeguarding investors from fraudulent schemes. It warned that any breach of the law, including the promotion of unlicensed collective investment schemes, will result in appropriate legal action. Elon Musk-inspired meme coinFloki, initially conceived as a meme-coin inspired by Dogecoin, a project associated with Elon Musk, has evolved into a comprehensive Web3 project spanning decentralized finance, NFTs and the metaverse. TokenFi is a crypto and asset tokenization platform under the Floki umbrella, which aims to capitalize on the booming trillion-dollar tokenization industry. TokenFi, denoted by the ticker TOKEN, seeks to simplify the crypto and asset tokenization process with aspirations of becoming a leading platform globally. Launched last October, TokenFi operates as a multichain tokenization platform on both Ethereum and Binance Smart Chain. While both Floki and TokenFi offer distinct staking programs, they share a close integration. Stakers under the Floki scheme gain access to a significant portion of TokenFi's supply, while TokenFi stakers earn TOKEN rewards through a user-friendly interface. In the broader context of crypto staking, the practice allows users to earn rewards by contributing to a blockchain's security through the proof-of-stake mechanism. By staking cryptocurrency, users participate in a staking pool, similar to depositing money into a savings account. Staking rewards typically range from 5-20%, attracting investors seeking profitable opportunities. However, caution is advised against schemes promising unrealistic returns. The SFC, in collaboration with the Hong Kong Police Force, established a dedicated working group last year to enhance vigilance and enforcement in the evolving crypto sector. 

Acquisition by SBI Subsidiary Part of European ExpansionB2C2, a cryptocurrency liquidity provider catering to institutional clients and a subsidiary company of Japanese financial services conglomerate SBI Holdings, has solidified its foothold in the digital assets market by completing the acquisition of Woorton, a prominent European market maker and over-the-counter (OTC) transaction specialist.Photo by Christian Lue on UnsplashMarket expansionIn a press release published to its website on Thursday, UK-based B2C2 outlined further details relative to the acquisition. The move represents an effort by B2C2 to broaden its client base and expand within the European market, ahead of the forthcoming regulations under the Markets in Crypto-Assets Regulation (MiCA).The acquisition opens doors for B2C2 to extend its services within the European Union (EU) jurisdiction. Additionally, it allows B2C2 to tap into growth opportunities beyond its existing strongholds in the United Kingdom, Asia-Pacific (APAC), and the United States.Licensing accessOne of the prime advantages of this acquisition is B2C2’s access to Woorton’s prestataires de services sur actifs numériques (PSAN) license, which is regulated by the Autorité des Marchés Financiers (AMF), the French financial regulatory authority. This license empowers B2C2 to operate seamlessly within the EU, positioning the company for a strategic advantage in the evolving regulatory landscape.As the UK is no longer part of the EU, this acquisition makes for a much easier entry point for the company into the broader European market.Founded in 2017, Woorton boasts an active clientele of nearly 250 entities engaged in trading 96 different cryptocurrencies. The company distinguishes itself by offering round-the-clock liquidity provision, ensuring uninterrupted trading opportunities for its clients.Woorton’s engagement with regulatory bodies is a key highlight, and the firm is a co-founding member of the Association for the Development of Crypto-Assets (ADAN). Through ADAN, Woorton actively contributes to shaping regulatory frameworks governing digital assets in France, bridging the gap between the industry and policymakers.Additionally, the company played a crucial role in establishing Paris Blockchain Week, an internationally recognized event that brings together thousands of attendees and speakers to discuss blockchain and digital asset trends.Charlie Meraud, CEO of Woorton, expressed excitement about the acquisition, emphasizing the complementary strengths of the two firms. Meraud highlighted the enhanced liquidity pool and improved market presence that the combined platform would offer to customers, ultimately leading to a superior liquidity and trading experience.B2C2’s CEO, Nicola White, described the acquisition as a significant milestone in the company’s growth journey. White expressed enthusiasm about the potential the acquisition unlocks for B2C2 and its EU-based clients, reaffirming the importance of regulatory standing and a robust client base.London baseEstablished in 2015 and primarily owned by SBI, B2C2 operates from its main headquarters in the UK, with operational offices in the US and Japan. Its UK-registered company B2C2 Ltd serves as the parent entity within the B2C2 group of companies.B2C2’s acquisition of Woorton not only enhances its presence within the European Union but also serves to demonstrate its intent in terms of regulatory compliance and industry leadership. This strategic move positions the company to navigate the evolving crypto market, likely leading to greater opportunities for its clients.