Worldcoin executives meet Malaysian leaders 

Japan’s Ministry of Economy, Trade and Industry announced on Friday that it has approved a revision to the Industrial Competitiveness Enhancement Act, with the aim of broadening strategic investment opportunities. According to a local report from crypto publication Coinpost, this move would open avenues for venture capital (VC) firms to invest in projects exclusively issuing cryptocurrencies. Pending parliamentary deliberationWith cabinet approval secured, the revised bill will now undergo introduction and deliberation in the current session of the Diet, Japan's parliament. If passed, the amendment could pave the way for VC funding of Web3 startups in exchange for crypto assets. The Ministry highlighted that the amendment aligns with objectives to foster new businesses and industrial investment, with a particular focus on empowering Japan's economy through support for medium-sized companies and startups. Reports of Japan's intention to ease regulations for VC firms investing in crypto startups first emerged in September.Photo by Manuel Cosentino on UnsplashStablecoin frameworkJapan has further work to do to implement a comprehensive overall framework for digital assets. A move by the Japanese Financial Services Agency (FSA) earlier this month to implement measures designed to guard against unlawful crypto transfers is a case in point. The measure doesn’t appear to account for knock-on effects on the peer-to-peer (P2P) transactions market. However, its stance on crypto regulation is best characterized by efforts to establish a robust legal framework for stablecoins and digital assets. The nation has positioned itself as a global leader in stablecoin regulation, signaling plans to embrace Web3 technologies while maintaining stringent measures to protect users. Japan's stablecoin regulations, while providing clarity, present challenges for issuers, especially regarding profitability in a low-interest rate environment. Compliance with requirements such as maintaining 100% of assets within Japan's trust accounts poses operational hurdles for yen-based stablecoins. Recent developments indicate industry players' efforts to navigate regulatory requirements. Mitsubishi UFJ Financial Group, Japan's premier banking conglomerate, has engaged with stablecoin issuers to explore leveraging its blockchain platform. Web3 hope amid economic difficultiesJapan’s economy has seen better days. Last week, the bitcoin-yen trading pair saw bitcoin reach a record high valuation against the yen. New technologies like Web3 are seen as a potential mechanism for the East Asian country to improve its economic performance. In July of last year, Japanese Prime Minister Fumio Kishida emphasized the country’s commitment to nurturing the Web3 sector within Japan. Last year, Yudai Suzuki, the founder of a Tokyo-based Web3 incubator, suggested that the country could rediscover its past prowess at the forefront of innovation and technology by embracing blockchain and Web3. Japan's regulatory approach appears to be shifting to accommodate such sectoral growth and development. Last July, the Japan Blockchain Association (JBA) called on the government to address an issue within the Japanese tax code that was hampering the industry. That tax reform was subsequently implemented in December. This latest initiative, too, appears to underscore Japan's commitment to fostering innovation and economic growth through enabling further investment into emerging Web3 enterprises. 

Fair Weather Day for Rain With Abu Dhabi License ApprovalRain, the cryptocurrency exchange that serves the Middle East and North Africa (MENA), Turkey, and Pakistan, has scored a significant regulatory win in the United Arab Emirates (UAE). On Tuesday, the Abu Dhabi unit of Rain secured a license to operate as a virtual assets brokerage and custody service within the country.Photo by Agnieszka Kowalczyk on UnsplashCoinbase backingHeadquartered in Bahrain and backed by Coinbase, Rain’s Abu Dhabi Global Market financial free zone entity will now have the authority to offer virtual asset services to institutional and select retail clients in the UAE. This includes the ability to facilitate the buying, selling, and custody of cryptocurrencies.According to Co-Founder Yehia Badawy, the newly acquired license brings additional advantages to Rain. Notably, the exchange will be able to open a bank account in the UAE, simplifying fund management for its clients who can now utilize the local payment network.For Rain, this regulatory approval holds particular significance, as it addresses the hesitancy among local asset managers to engage with crypto firms lacking a domestic license. With this stamp of approval, these managers are expected to feel more at ease collaborating with Rain, thus expanding the potential demand from institutional investors.$500 million valuationRain has been gaining traction since its establishment in 2017 by Badawy and three other co-founders. Kleiner Perkins and Coinbase Ventures, two prominent investors from Silicon Valley, have backed the exchange. Both participated via a Series B funding round in January 2022 that saw Rain raise $110 million. Interestingly, Rain’s leading investor, Coinbase, also expressed an interest in developing a base in Abu Dhabi in recent months.There has been a lot of speculation in recent times with regard to where Binance, the world’s largest cryptocurrency exchange, is headquartered. Although still not certain, many believe that Abu Dhabi provided that base for the company. Meanwhile, US-headquartered cryptocurrency exchange Gemini, is working towards establishing a base in the UAE.Overcoming challenging market conditionsLast year’s Series B fundraise resulted in the company achieving a valuation of $500 million. The funds from that round were earmarked for the expansion of Rain’s operations throughout the region. Later that same year, the company laid off dozens of employees as bear market conditions within the digital assets space began to bite. As market conditions worsened later that year, the firm announced a fresh round of job cuts in September.The UAE has been positioning itself as a crypto-friendly destination, aiming to attract major players in the cryptocurrency industry. By enabling cryptocurrency payments in sectors like real estate and education, the UAE has spurred adoption rates and transaction volumes. Additionally, the country has been actively working on developing virtual asset regulations to accommodate new business opportunities in a highly competitive Gulf region.Rain’s recent licensing achievement signifies a significant milestone for the exchange and contributes to the UAE’s ongoing efforts to establish itself as a leading hub for the cryptocurrency sector.

Lawsuit Sees Further Chinese Crypto TV CoverageChina’s state broadcaster, CCTV, rarely covers the topic of crypto but in the space of the past three weeks, it has covered the subject twice, with the latest segment covering the news of the United States Securities and Exchange Commission (SEC) filing a lawsuit against global crypto exchange, Binance.Photo by Paolo Chiabrando on UnsplashBad pressThe segment, which aired on CCTV, provided a brief overview of the lawsuit, stating that the SEC accused Binance, its Co-Founder Changpeng Zhao (CZ), and its American affiliate Binance.US of violating US securities laws. The report also noted that the prices of Bitcoin and Binance’s native BNB coin experienced a decline following the news.The lawsuit filed by the SEC received significant media attention due to Binance’s position as the world’s largest crypto exchange. The crypto industry in the US has been under increased scrutiny following the recent troubles faced by FTX, another major player in the market. Prosecutors have alleged that FTX engaged in fraudulent activities that harmed its users.Many blame US regulators who spent hundreds of hours with FTX executives working on projects, and US Capitol Hill politicians, 33% of whom received money from FTX, as being culpable for the FTX collapse. Despite this, it’s clear that the collapse is being leveraged to effect a clampdown on the digital assets sector.It is worth noting that the CCTV broadcast also made mention of a lawsuit filed by the US Commodity Futures Trading Commission (CFTC) against Binance and CZ in March. This lawsuit, similar to the SEC’s, focused on the sale of crypto derivatives. It is unclear whether CCTV covered the CFTC lawsuit when it was initially filed.CCTV’s coverage of crypto-related news is rare, making this particular broadcast significant and garnering wider attention. The outcome of legal action taken by the SEC against Binance is being watched carefully as it will likely have implications for digital asset regulation going forward.Previous coverageIn a previous broadcast last month, CCTV aired a segment that featured cryptocurrencies, including the Bitcoin logo. Ironically, given the nature of this latest reporting, Binance’s CZ regarded that previous coverage as a noteworthy event. Historically, such coverage has often preceded bull runs in the crypto market. The segment showcased what appeared to be a Bitcoin ATM in Hong Kong, displaying a prominent blue Bitcoin logo and an option to “Buy Bitcoins.”NFTs were also highlighted in the segment. Many speculated that the coverage signified a softening of the stance of the Chinese authorities in relation to crypto. However, the video of the initial crypto segment was taken down from the broadcaster’s website shortly after CZ tweeted about it.Despite it not being the most positive of news, CCTV’s coverage of the Binance lawsuit and its previous segment on cryptocurrencies indicates a growing interest in the industry from mainstream media outlets. The attention from a state broadcaster like CCTV suggests that regulators and authorities in China are closely monitoring developments in the crypto space and considering their potential impact on the broader financial landscape.