SGX to list Bitcoin perpetual futures in H2

Nomura’s Laser Digital Expands Crypto Venture Capital Arm with New PartnerLaser Digital, the cryptocurrency subsidiary of Nomura, one of Japan’s leading financial services companies, is strengthening its venture capital business with the appointment of industry veteran Florent Jouanneau as a new partner.Despite a decline in funding levels across the industry, Laser Digital aims to expand its venture capital arm, according to a report published by The Block on Tuesday.With Jouanneau joining the team, Laser’s venture team now consists of seven members, according to Olivier Dang, the company’s General Partner and Head of Ventures. Laser Digital, launched in the fall of last year, currently employs about 65 people and offers asset management and trading services alongside its venture capital activities.Jouanneau’s previous experience includes positions at White Star Capital, a venture capital firm that invests in Web3 and DeFi startups. He also served as a structured credit and ABS trader at Bank of America, and held sales and trading roles at UBS and BPCE Group’s Natixis.Photo by Markus Winkler on UnsplashCrypto venture business expansionThe decision to expand the venture business comes at a time when VC investments in Web3 are declining. In the first quarter of this year, Web3 venture funding dropped by 80% compared to the same period last year, as reported by data from K33 Research. VC investment in Web3 totaled $2.8 billion in Q1 2023, a significant decrease from $13.5 billion in Q1 2022.Jouanneau acknowledged the market slowdown in 2022 and highlighted the current opportunity for investment. He stated: “We are seeing a lot of valuations being dragged down by effectively the lack of capital to be deployed.” This sentiment aligns with the perspective of many crypto venture capitalists who view the current bear market as a favorable time to invest, given the risk-reward dynamics and the potential for institutional participation.Crypto sector maturationDang expressed optimism about the maturation of the crypto industry, pointing to the increasing interest of traditional financial institutions, including BlackRock, in spot Bitcoin ETFs. Dang believes that as more institutions enter the space, the quality of deal flow and transactions in the venture capital sector will improve.He also emphasized the importance of robust institutional-grade infrastructure to support these institutions, noting that Laser’s association with Nomura has helped instill trust among investors.While Laser’s fund is currently backed exclusively by Nomura, Dang mentioned that they have started raising third-party capital. The fund has invested in early-stage startups focusing on areas such as DeFi, CeFi, Web3 tooling, and infrastructure. Among its portfolio companies are DeFi protocol Infinity Exchange and crypto trading firm CrossX.Dang disclosed that the team aims to make an additional ten investments throughout the rest of this year, prioritizing projects with institutional use cases. However, they remain cautious about ventures primarily focused on gaming and NFTs due to their limited expertise in those areas.As the industry continues to mature and attract institutional interest, it’s clear that Laser is attempting to position itself as a trusted player in the space, leveraging its expertise and partnerships to drive growth and generate value for its investors.

Short-Term Crypto Investment Prevails Among Hong Kong’s Retail InvestorsHong Kong’s retail investor interest in virtual assets has experienced a significant surge in recent years, albeit a recent survey suggests that most retail investors take a short-term investment view relative to crypto assets.Photo by Robert Bye on UnsplashIFEC studyThis newfound enthusiasm for virtual assets emerges from a recent study published by the Investor and Financial Education Council (IFEC), a subsidiary of the Securities and Futures Commission (SFC), Hong Kong’s securities regulator. The survey found that 6% of retail investors in the city had entered the virtual asset market in 2023, as compared to merely 1% in 2019.Conducted from June to July of this year, the study encompassed 1,000 individuals aged between 18 and 69. The survey uncovered a trend toward crypto investing among retail investors who’ve been enticed by the allure of the emerging asset class. Intriguingly, every single one of the digital asset retail investors in the study held cryptocurrencies in their portfolios. Non-fungible tokens (NFTs) and stablecoins, while still relatively niche, were also present in the portfolios of 6% and 2% of investors, respectively.11% to invest in crypto within 12 monthsAnticipating a further uptick in interest, the IFEC report posits that 11% of those surveyed have intentions to invest in virtual assets or related products within the next 12 months. This indicates that the allure of virtual assets continues to exert its magnetic pull on investors in Hong Kong.Despite the growing interest, a noteworthy finding in the survey is that 75% of retail virtual asset investors admitted to their primary motivation being the pursuit of short-term gains. Simultaneously, 74% of these investors perceived virtual assets as a prevalent investment trend, and 73% cited the fear of missing out on popular investment opportunities as a driving factor. These statistics underscore the need for enhanced investor education within the sphere of virtual assets.Lack of regulatory awarenessAnother interesting aspect of the data which emerged from the survey was the finding that only 47% of all surveyed investors are aware of Hong Kong’s recently introduced virtual asset trading regulations, which came into effect on June 1.An additional facet of this investor behavior study was illuminated by research conducted by the Department of Applied Social Science at Hong Kong Polytechnic University (PolyU). This research, based on data from a separate IFEC report that surveyed 501 people from November to December of last year, revealed that many retail investors in virtual assets exhibited overconfidence in their judgment.These investors were also found to have a proclivity to overemphasize past information, lean heavily on readily available and easily recalled information, and overestimate personal intuition.With that in mind, Eric Chui, Head of PolyU’s Applied Social Science unit, advised virtual asset investors to adopt a more deliberate and rational approach. Chui emphasized the importance of building financial literacy and collecting high-quality market information to make informed investment decisions, while steering clear of irrational investment behavior and biases.

Blockchain.com Secures License to Expand Operations in SingaporeBlockchain.com, the London-headquartered crypto financial services company, has achieved a significant milestone by obtaining a payment license in Singapore.Photo by Mike Enerio on UnsplashAsian expansionThe move signifies the platform’s expansion not only within Asia but also on a global scale. In a press release issued on Monday, Blockchain.com proudly announced its acquisition of a major payment institution (MPI) license from the Monetary Authority of Singapore (MAS) on August 1.The development follows an in-principle approval granted to Blockchain.com by the Singaporean central bank back in September 2022. With the newly acquired MPI license, the platform is now authorized to provide “digital payment token” (DPT) services to both institutional clients and investors in Singapore.Removal of transaction volume limitsUnder the regulatory framework of MAS’s Payment Service Act, the license grants Blockchain.com the authority to operate as a platform facilitating the exchange of various DPTs while also conducting DPT transactions themselves. An interesting facet of the license is that it liberates the crypto exchange from certain transaction volume limitations set within Singapore, as outlined on MAS’s official website.Expressing enthusiasm about this accomplishment, the Co-Founder and CEO of Blockchain.com, Peter Smith, lauded the crypto-friendly environment in Singapore. Smith commended the Monetary Authority of Singapore for its transparent regulatory process, on the basis that it strikes a balance between overseeing the crypto industry and fostering innovation. He stated:“We are thrilled to receive this license that will allow Blockchain.com to bring our industry-leading products and services to Singapore. We commend the Monetary Authority of Singapore on its transparent regulatory process that prioritizes crypto industry oversight while allowing innovation to thrive.”Over a decade in operationHaving been established in 2011, Blockchain.com boasts a reputable standing as one of the crypto industry’s pioneers. It’s most well known for its Bitcoin blockchain explorer and its wallet service. With a user base of 87 million active wallets and 37 million verified customers, the exchange business claims that it accounts for a large chunk of all Bitcoin network transactions.Singapore, heralded for its emergence as a crypto hub, has welcomed other crypto entities holding Major Payment Institution (MPI) licenses, including prominent stablecoin issuers Circle and Paxos. The city-state has drawn a significant influx of crypto businesses in recent years, supported by its well-defined regulatory framework and the government’s commitment to nurturing the burgeoning crypto landscape within its borders.Fostering Web3 innovationMAS has demonstrated that it is aligning itself with a dedication to fostering innovation, with its recently announced plans to allocate $112 million over a span of three years for the development of cutting-edge financial technologies. This initiative will encompass fintech solutions grounded in Web3 principles.Nevertheless, Singapore remains cautious about the potential risks associated with the crypto space. In July, MAS directed all crypto businesses within its jurisdiction to transfer user assets to statutory trust accounts before the end of 2023. This precautionary measure is likely to be a reaction to crypto failures such as that of crypto-lender Hodlnaut and crypto exchange FTX, which affected Singaporeans disproportionately. It aims to minimize the risk of asset loss or misappropriation.MAS also has moved to permit crypto firms to offer staking and lending services solely to institutional clients, imposing a ban on the retail market for these services.