HashKey & Bosera launch world’s first tokenized money market ETFs

Japan’s Blockchain Group Requests Crypto Tax Revision for Web3 AdoptionThe Japan Blockchain Association (JBA) has submitted a request to the Japanese government to reform the current cryptocurrency tax system, as it believes the existing framework hampers the growth of the Web 3 industry and discourages public engagement with cryptocurrencies. The association believes the tax revision would help position Japan as a leading country in the Web3 industry and boost the nation’s economy through these changes.Photo by Su San Lee on UnsplashGreater tax exemptionLast month, the Japanese National Tax Agency announced that companies would no longer be taxed on unrealized gains from cryptocurrencies they hold, provided they are the issuers of those tokens. While this represents a positive step, the JBA considers it insufficient in fostering Web3 growth. In light of this, the blockchain group urges the government to extend this exemption to also cover holdings of tokens issued by third parties.Separate taxationAdditionally, the JBA proposes a shift in the tax treatment of personal cryptocurrency transactions. It advocates for a separate taxation approach with a fixed tax rate of 20% for individual transactions, including crypto derivatives. This modification is seen as a way to adapt to the increasing prevalence of crypto asset transactions in the emerging Web3 era.Crypto-to-crypto trading tax abolitionUnder the current system, individuals trading crypto assets for other crypto assets are subject to income tax on the profits earned from each transaction. However, with the increasing variety of crypto assets and the growing prominence of crypto asset transactions in the emerging Web3 era, the JBA is advocating for the abolition of income tax on transactions between cryptocurrencies. The complexities involved in taxing such transactions within the evolving Web3 landscape have prompted the group to propose a reevaluation of the taxation approach, seeking a more favorable environment to foster the growth of the crypto industry.Japan has demonstrated its proactive approach in promoting and embracing the Web3 industry. At the annual Japanese Web3 conference, WebX, held in Tokyo last week, Prime Minister Fumio Kishida delivered a video address to mention Web3 as part of “the new form of capitalism,” acknowledging its capacity to stimulate economic growth and tackle societal challenges. Minister Kishida highlighted the Japanese government’s dedication to creating a supportive and conducive environment for the advancement of Web3 projects.

Binance APAC Head Resigns Amid Regulatory ChallengesThe uncertainty swirling around Binance, the world’s largest cryptocurrency exchange, continues as Binance Head of Asia Pacific (APAC), Leon Foong, has resigned from his position.The resignation was reported by Bloomberg on Thursday, with the publication citing people familiar with the matter. Foong played a pivotal role in expanding Binance’s reach across markets like South Korea, Thailand, and Japan.Photo by Marten Bjork on UnsplashRecent pattern of executive exitsFoong’s departure is the latest one in a series of high-profile exits in recent months. Chief Strategy Officer Patrick Hillman and General Counsel Hon Ng are among those who have previously left, as regulatory authorities worldwide tighten their grip on Binance.Binance has been navigating a challenging period as regulatory crackdowns sweep across the global crypto space, prompting strategic shifts and senior leadership changes. Foong’s departure may also signify the company’s effort to realign itself in the face of mounting scrutiny.Market share under pressureThe regulatory backlash has not only led to senior leadership changes but has also impacted Binance’s market share. As authorities have clamped down on Binance due to alleged violations, the exchange’s dominance in the crypto trading market has diminished.Losses of key banking partnerships have compelled some customers to migrate to rival platforms. In some cases, Binance has simply been forced to retreat entirely from offering services in certain jurisdictions.Over the course of a period of three months earlier this year, the company lost its ability to trade in Germany, Canada, Belgium, the Netherlands, and Cyprus. French authorities are investigating the platform for alleged illegal provision of digital asset services and aggravated money laundering.In recent days, the global exchange platform has also come under pressure relative to the service it extends to Russian users. A Wall Street Journal exposé published last week alleged that Binance’s activities in Russia were in breach of sanctions imposed by the United States. Binance responded by removing the option for customers to transact over the platform using two sanctioned banks. It’s now understood that the company is considering going a step further and exiting that market entirely.LawsuitsBinance’s legal woes began with the US Commodity Futures Trading Commission (CFTC) filing a lawsuit against the exchange, along with its billionaire Founder and CEO Changpeng Zhao (CZ). The lawsuit alleged violations of derivatives regulations and criticized the firm’s compliance procedures. Binance reacted by expressing surprise and disappointment over the legal action.The challenges continued with the US Securities and Exchange Commission (SEC) filing a lawsuit against Binance and CZ in June, accusing the exchange of running unregistered exchanges and engaging in various other violations. Binance has consistently contested these allegations from both the CFTC and the SEC.In response to these challenges, CZ took to X (formerly Twitter) in July to reaffirm the exchange’s commitment to growth despite the setbacks.More concern has been created due to the recent filing by the SEC of a motion “under seal” in its case against Binance. That option is usually taken to prevent public knowledge of sensitive information, which possibly could relate to a parallel investigation from the US Justice Department.There’s likely to be no letup in the cloud that hangs over the business until all enforcement actions and lawsuits have run their course.

3AC liquidators estimate 46% recovery while BVI court freezes $1BThe joint liquidators of the now-defunct Singaporean crypto hedge fund Three Arrows Capital (3AC) have provided creditors with an estimated 45.74% recovery rate for their claims in the bankrupt estate. Meanwhile, in parallel proceedings in the British Virgin Islands (BVI), a court has frozen $1 billion of founders’ assets.According to The Block, the details were disclosed in a December report to creditors by joint liquidators Russell Crumpler and Christopher Farmer of Teneo, the firm appointed to oversee the liquidation of the failed business.$1.16B in assetsAs of Dec. 18, the estimated value of 3AC’s assets was reported to be $1.16 billion, while claims totaling $2.7 billion are expected to be recognized for distribution. The liquidators highlighted that settlements in litigation against various parties, including DCG, Genesis and BlockFi, increased reported assets by an estimated $292 million. It’s important to note that the BlockFi settlement is still pending approval.A total of 154 claims, valued at $3.4 billion, were filed against the 3AC estate. The report indicates that $200 million of claims were not admitted for distribution, and $322 million in claims have either been rejected or are expected to be rejected. Additionally, $76 million in claims are currently under dispute. The report reveals that initial distributions to creditors are being planned for the first quarter of the upcoming year.Illiquid tokensThe breakdown of assets reveals that a large majority are illiquid tokens, subject to vesting periods, comprising 82% of the total. Only 6% of the portfolio is liquid, while equity and investments account for 6.9% and 4.8% is in cash. These illiquid tokens, totaling $563 million at current prices, consist of 13 different tokens with vesting schedules unlocking assets over the next three years, reaching $200 million by the end of 2024.To date, the liquidators have staked some of these tokens, resulting in $5.4 million in staking rewards. Liquidation efforts, including the sale of $34.5 million worth of liquid tokens and $15 million in NFTs, along with other asset sales, have generated a total of $66 million.Photo by Kemp Fuller on UnsplashFrozen assetsIn a related development, Bloomberg reported on Thursday that a British Virgin Islands court has frozen assets totaling $1.1 billion belonging to 3AC co-founders Su Zhu and Kyle Davies, along with Davies’ wife Kelly Chen. The liquidators filed a claim for insolvent trading against the founders for $1.078 billion, with additional claims against Davies for $66 million and Chen for $4.6 million.Teneo outlined the rationale behind the move in the following statement it made to Decrypt:“The worldwide freezing order has been sought in connection with claims that are being pursued by the liquidators that allege, amongst other things, that the Founders should be held responsible for causing 3AC’s position to deteriorate by an amount that is equivalent to the value of the freezing orders sought.”Su Zhu, who was under house arrest for the last few weeks, became free on Dec. 20. Zhu had been arrested in Singapore on Sept. 29 and sentenced to four months imprisonment, serving two-thirds of his sentence under house arrest.Throughout the bankruptcy proceedings, legal fees have accumulated to $49.7 million while the report suggests ongoing efforts to maximize creditor recovery.