Gate Ventures, Boon Ventures launching $20M crypto fund

INDODAX, Indonesia’s largest virtual asset trading platform by trading volume, has acquired full licensing in Indonesia from the local regulator. That’s according to a report published by local media outlet VOI. The license, a Physical Crypto Asset Trader (PFAK) license, has been awarded to the company by Indonesia’s Commodity Futures Trading Supervisory Agency, better known as BAPPEBTI.  The license will place INDODAX in a complaint position within the Indonesian market, relative to local regulations. The business has been issued certificate number 10/BAPPEBTI/PFAK/12/2024 by the regulator, its approval certificate as a Physical Crypto Asset Trader.Photo by Mark König on UnsplashMandatory registration requirementIn December 2023 the authorities in Indonesia set out a mandatory requirement for crypto trading entities to register with the Commodity Future Exchange (CFX). CFX is Indonesia’s national crypto bourse, while INDODAX is a member. As of April 2024, 35 crypto exchanges had been registered with the regulator. CFX has been given the mandate to monitor crypto exchange operations, to safeguard investors by ensuring exchanges abide by local regulations. Fendy Tan, chief financial officer (CFO) at INDODAX commented on the firm’s recent licensing milestone, stating: "We are grateful to BAPPEBTI and CFX for the trust given through this full license. The long process that must be passed reflects our commitment to providing the best protection for users. The license number 10 also has a special meaning, which symbolizes perfection, and symbolizes the 10-year journey of INDODAX in leading the crypto industry in Indonesia."  Liquidity and SOP requirementsIn order to acquire this license INDODAX had to comply with BAPPEBTI Regulation Number 8 of 2021 and Number 13 of 2022. It has also had to ensure a minimum paid-up capital of 100 billion Indonesian Rupiahs ($6,158,000), and a minimum equity of IDR 50 billion ($3,079,000). Furthermore, the company has had to implement a set of standard operating procedures (SOPs), together with achieving ISO certification in accordance with global security standards, with specific emphasis on complying with regulations to safeguard customer funds according to the balances held on account of fiat currency and digital assets by INDODAX customers. INDODAX is understood to have 7.1 million customers while a transaction volume of 109 trillion Indonesian rupiahs was reached for the period January to November 2024. BAPPEBTI had extended a deadline for the crypto licensing of exchanges late last year, a move welcomed at the time by INDODAX CEO Oscar Darmawan. Darmawan said that the move would strengthen the industry by ensuring that market participants were compliant with recently introduced regulations. While this licensing milestone is a positive for INDODAX, the firm had faced challenges in 2024. In September it emerged that the platform had been compromised with the loss of around $18 million in digital assets. Meanwhile, the authorities in Indonesia had planned to switch crypto market oversight from BAPPEBTI to the Financial Services Authority (OJK) by Jan. 12. However, a recent report published by the Jakarta Globe suggests that the Indonesian government has yet to finalize this regulatory transfer.

Sygnum Bank, a digital asset bank based in Switzerland and Singapore, has conducted a survey which has identified that investors in Singapore are more interested in increasing their allocation to crypto than their international peers. The bank’s 2024 Future Finance survey states that while a global average of institutional investors of 47% plan to increase their exposure to crypto next year, in the case of Singapore-based institutional investors, 57% of them expressed the view that they would increase their crypto holdings in 2025.Photo by Precondo CA on UnsplashThe report states:  "Singapore investors exhibit a higher risk appetite and motivation to invest on average than respondents from other countries.” The annual survey, which was published on Nov. 14, collated insights garnered from more than 400 institutional and professional investors, distributed across 27 countries, with average investor experience of in excess of 10 years. 121 of the survey’s participants were based in Singapore, with the survey having been conducted during Q3 2024. Long-term confidenceSingaporean respondents suggested that they were confident in the long-term potential and outlook where cryptocurrencies are concerned. While the main reason for investing in crypto was to gain exposure to digital assets in line with a global trend (56%), 41% of respondents from the city-state cited portfolio diversification as their reason for investing in the emerging asset class.  75% of investors expressed the belief that regulatory clarity has improved recently. Growing confidence among institutional investors generally is likely to be developing due to increasing certainty relative to digital asset regulation. While Donald Trump had not been elected in the United States at the time that survey participants responded, it was looking increasingly likely that he would win the election.  That’s likely to have had a bearing on investor outlook, not just within the United States but internationally, given the implications in terms of positive regulation and an overall positive approach to crypto. 39% of Singaporean respondents cited yield-generation opportunities as their motivation in investing in digital assets. The recent advent of spot crypto exchange-traded funds (ETFs) stood out as another motivation for investors.  Breaking down specific areas of interest within the crypto sector, 71% of Singaporean respondents were interested in investment in layer-1 blockchain networks. Meanwhile, 56% expressed an interest in Web3 infrastructure investment options, with 41% showing an interest in layer-2 blockchain networks. Interest in asset tokenizationIn relation to tokenization, 47% of those surveyed in Singapore indicated an interest in tokenizing mutual funds and corporate bonds over and above other financial assets and products. When first proposed, real estate was considered the most obvious asset primed for tokenization but mutual funds and corporate bonds now appear to be gaining more traction. Asset tokenization has been garnering considerable attention in mainstream finance but especially so in Singapore. Local regulator, the Monetary Authority of Singapore, (MAS) has been running Project Guardian, a collaboration between MAS and the financial services industry with an emphasis on asset tokenization. The project recently brought in the German central bank, the World Bank, HSBC and markets infrastructure firm Euroclear as participants. 

Datachain Secures Funding from Japan’s MUFG to Advance Blockchain Interoperability InitiativesDatachain, a Japanese blockchain interoperability solution provider, has secured funding from Mitsubishi UFJ Financial Group (MUFJ), one of Japan’s largest banking institutions, according to a press release. This investment will boost their collaboration as they work together to advance ongoing initiatives involving stablecoins, security tokens, and cross-chain technology.Photo by Shubham Dhage on UnsplashGrowing token marketIn a joint report by the Boston Consulting Group (BCG) and Singapore-based investment platform ADDX, it is projected that the market for illiquid asset tokenization could reach $16.1 trillion by 2030 (as a conservative estimate) or potentially $68 trillion in a best-case scenario. This growth in the illiquid asset tokenization market, coupled with the expanding stablecoins and cryptocurrencies market, is expected to drive the overall digital asset market’s expansion.Cross-chain techDatachain will collaborate with MUFG and other partners to develop an infrastructure that enables the transfer of digital assets across different blockchains. Boasting prowess in cross-chain technology, Datachain has been conducting tests and collaborative research with numerous companies in Japan and abroad. Notably, Datachain has been working closely with MUFG to drive initiatives utilizing stablecoins scheduled for issuance and distribution through the Progmat Coin stablecoin platform.Moreover, Datachain, MUFG, and cross-chain bridge provider TOKI will form a three-way partnership aimed at commercializing the issuance and distribution of stablecoins on public blockchains like Ethereum between April and June 2024.Datachain is also collaborating with MUFG to promote cross-chain settlements involving security tokens based on stablecoins. Their goal is to realize this initiative in cooperation with securities firms by 2024.Starting with this new funding, Datachain plans to expedite its business expansion by seeking investments from other companies that can create synergies.Tomohiro Kimura, Director and Managing Executive Officer at MUFG, commented on the investment, emphasizing MUFG’s commitment to the digital asset market’s anticipated growth. According to Kimura, MUFG has established and promoted Progmat Coin in preparation for the expanding digital asset market. Highlighting that multi-chain and cross-chain transactions are essential to the future of digital assets, Kimura expressed delight over MUFG’s investment in Datachain, citing the blockchain company’s unparalleled expertise in key technology areas such as multichains and cross-chain transactions. He also highlighted MUFG’s increased involvement as a shareholder in Datachain, underlining its dedication to making a substantial impact in the digital asset market.