India tops global crypto adoption despite regulatory hurdles: Chainalysis report

Sony Network Invests $3.5M in Startale Labs to Drive Global Web3 AdoptionSony Network Communications, a prominent Japanese internet service provider, has made an investment of $3.5 million in Startale Labs, an innovative Web3 company based in Singapore. The primary objective of this collaboration is to establish an infrastructure that will promote the global adoption of Web3 technologies.Photo by Bastian Riccardi on UnsplashTelecom meets Web3Sony Network Communications, founded in 1995, offers high-speed fiber-optic broadband services and operates in various sectors of the telecommunications industry. The company is actively involved in advanced technology ventures such as the Internet of Things (IoT) and artificial intelligence (AI). Meanwhile, Startale Labs specializes in the Web3 domain, providing advisory services related to Web3, supporting the creation of layer 1 blockchains and applications, and collaborating with other entities to develop core Web3 functionalities.As part of this partnership, Jun Watanabe, the President and Representative Director of Sony Network Communications, will join Startale Labs as a director. He expressed his gratitude for the collaboration, emphasizing the deepening ties between Sony and Startale Labs. He highlighted the fruitful joint efforts already underway to advance Web3 technologies. Both companies share the objective of fostering an infrastructure that facilitates global Web3 adoption. Jun Watanabe said this initiative will lead to the emergence of revolutionary Web3 applications.Sota Watanabe, the CEO of Startale Labs, acknowledged Sony Group’s remarkable achievements across diverse industries such as gaming, entertainment, and financial services. He believes that Sony holds great potential in the Web3 sector, and Startale Labs is well-positioned to contribute its expertise and knowledge to this domain. With this partnership, Sota Watanabe envisions a collaborative effort that will not only foster the global Web3 infrastructure but also drive the creation of valuable and impactful Web3 applications.Sony’s Web3 expansionSony Group has been actively exploring opportunities in the Web3 field. Earlier this month, Sony Bank, another affiliate of Sony Group, partnered with Mitsui & Co. Digital Asset Management (MDM) to introduce MDM’s security token service, Alterna, to the Tokyo-based online bank’s customers. Through this collaboration, Sony Bank customers can invest in real-world assets, such as large-scale real estate properties, using security tokens provided by Alterna. This platform opens up investment avenues that were previously inaccessible to retail investors due to high capital requirements. Notably, the minimum investment requirement through Alterna is 100,000 yen.Government supportThere’s also been a positive move from the Japanese government for the Web3 and cryptocurrency industry. The Japanese National Tax Agency recently announced the revised corporate taxation rules pertaining to crypto assets. Under the new amendment, companies are exempt from taxes on unrealized gains from cryptocurrencies if the virtual assets were issued by the company and have been continuously held since issuance, or if they have remained subject to certain transfer restrictions since issuance.Startale Labs CEO Sota Watanabe welcomed this development on his Twitter account, stating that Web3 projects like Astar Network can now conduct business in Japan without moving their operations overseas. Meanwhile, he highlighted the importance of addressing the issue of corporate taxes on tokens issued by third parties in the future. He hoped for continuous engagement in constructive discussions with politicians and government agencies.

Gate.HK, cryptocurrency exchange Gate.io’s Hong Kong entity, is discontinuing its operations and has retracted its application for a crypto trading platform license with the local regulator. The company announced on Wednesday a planned "major overhaul" of its platform and has ceased new user registrations and deposits immediately. In compliance with local regulations, Gate.HK will delist all tokens—including major ones like Bitcoin, Ether and USDT—on May 28, urging users to withdraw their assets by August 28. The trading platform, which launched officially in May 2023, aims to re-enter the Hong Kong market in the future after securing the necessary approvals and contributing to the virtual asset ecosystem.Photo by Kelly Sikkema on UnsplashRegulatory environment and industry responseThe withdrawal of the license application, initially submitted in February 2023, was noted on the website of the Hong Kong Securities and Futures Commission (SFC) on May 22, without a disclosed reason for the withdrawal. The SFC mandates that crypto trading platforms without a submitted license application by Feb. 29 must shut down by May 31 or within three months upon receiving further notice. This regulation has impacted several platforms, including HKVAEX and Huobi HK, both of which have recently withdrawn their license applications and ceased operations or faced operational uncertainties in the region. Currently, the SFC is reviewing applications from 20 crypto firms, indicating significant interest among global exchanges in securing retail trading licenses in Hong Kong. 

Busan City Aims to Cultivate Growth in Blockchain and Fintech IndustriesThe South Korean Ministry of SMEs and Startups (MSS) convened a meeting at the Korea Technology Finance Corporation today to address issues related to emerging industries, including blockchain and fintech, and devise strategies for their growth in Busan, a city rapidly establishing itself as a global hub. That’s according to a report by local news media News1.Photo by Minku Kang on UnsplashBlockchain, fintech, and hydrogenThe meeting saw the presence of MSS Minister Lee Young, Lawmaker Park Soo-young, Busan government officials, and university representatives. Local business leaders specializing in blockchain, fintech, and hydrogen also attended to provide their opinions.During the meeting, two presentations were delivered, each focusing on key policies. The first presentation outlined Busan’s strategic initiatives aimed at bolstering the finance and hydrogen sectors. The second presentation detailed the plans of the MSS’ Busan branch to support innovative enterprises.Following the presentations, local businesses put forth additional ideas pertaining to the policies. Minister Lee presided over a 100-minute discussion, facilitating an in-depth exploration of these ideas and extracting valuable insights. The proposed ideas encompassed mid-to-long-term strategies aimed at strengthening the connections between innovative firms, streamlining inspection standards for hydrogen containers, and promoting systematic research and development to address the sluggish adoption of new services in the fintech industry.Government’s visionExpressing the government’s commitment, MSS Minister Lee stated that up to ten global innovation clusters will be established across the nation by 2027, accompanied by expanded R&D support for new technologies. She called upon local governments and businesses to collaborate and spearhead innovation in the region.Meanwhile, in February, the MSS implemented a regulatory forecasting system to provide small businesses with advance notice of forthcoming regulations and gather their opinions for consideration. Additionally, the MSS intends to select two municipalities outside of the Seoul metropolitan area by October to enable businesses to drive innovation with minimal regulatory barriers.Busan’s blockchain driveBusan has been actively promoting blockchain initiatives through various events. An example of such an event, as reported by local news outlet Erounnet, is an upcoming three-day educational program on blockchain technology, organized by the Busan Creative Economy Innovation Center. The program will take place from July 25 to 28, followed by another event scheduled for September.