Binance partners with Bhutan on tourism payment system

VCs Say US Crypto Crackdown Opportunity for AsiaA couple of Hong Kong-based venture capitalists told Bloomberg TV in an interview that aired on Tuesday that the current crypto crackdown in the United States is a boon for Asia and particularly for Hong Kong in establishing itself as a global crypto hub.© Pexels/lalesh aldarwishMartin Baumann, Managing Partner and Co-Founder of CMCC Global, one of Asia’s first VC funds focused purely on blockchain and crypto, said that “Hong Kong has always been a financial capital of Asia and we believe in this location.”Golden opportunityWhile the fund has a global mandate, it believes that investor focus is shifting away from North America towards Asia. Baumann’s colleague, CMCC Global Managing Partner and Co-Founder Charlie Morris said that “the US has been quite negative from the regulatory perspective and it really seems to us that the US is shooting itself in the foot with a machine gun.”Morris elaborated, stating that the US crypto crackdown is handing a golden opportunity to other world regions to lead on blockchain and crypto. Baumann chimed in to clarify that one third of all blockchain equity deals are currently being done in Asia. He maintains that most of the investment community in the West doesn’t appreciate the extent to which capital is being committed into the space by Asian entities.Morris expanded further: “We see places like Hong Kong having a real opportunity at this point in time to bring those firms and entrepreneurs to the city.”Launching $100M blockchain fundAgainst that backdrop CMCC Global is launching a $100 million fund, where funding will be allocated to blockchain projects. Specifically the duo are targeting crypto and blockchain firms at Series A and Series B funding stages. Baumann believes that in tandem with the fact that there’s a lot of innovation emerging in Asia, “there’s plenty of capital sitting on the sidelines waiting for the right entry valuations to pull the trigger.”While Baumann and Morris are majority stakeholders in CMCC Global, the Winklevoss twins (Cameron and Tyler Winklevoss) also have an equity stake in the business. Founders of the Gemini crypto exchange platform, they are investors alongside Hong Kong based Richard Li, who has a net worth estimated to be in the region of $4.6 billion.VC investment into crypto slowed down considerably since the onset of the most recent crypto winter. However, that activity has still been ongoing, something that is entirely different to the 2018 bear market when investment came to a complete standstill. In April, CMCC partnered with Switzerland-based Syz Group with the objective of establishing a funding vehicle with a minimum $50 million fund earmarked for crypto-centric hedge fund investment.Meanwhile, in speculating on the prospects of bitcoin, the CMCC duo expressed the view that double digit gains are well within reach. Morris envisages a Bitcoin unit price of $40,000 in 2023. From a long term perspective the CMCC co-founder suggested that “I can easily see us breaking all time highs and easily breaking $100,000 for bitcoin.”

Leading cryptocurrency exchange OKX has acquired an in-principle approval from Singapore’s financial regulatory authority for a Major Payment Institution (MPI) license through its local arm, OKX SG.Photo by Mark Stoop on UnsplashEnabling broader service offeringAccording to a blog post published by the company on March 12, OKX confirmed the receipt of in-principle approval for the coveted license. The MPI license, issued by the Monetary Authority of Singapore (MAS), Singapore's primary financial regulatory body, represents an important step forward for the company. Once granted the full license, OKX will be empowered to offer digital payment token services and facilitate cross-border transfers within Singapore. A plethora of OKX executives took to social media to comment on the achievement. Hong Fang, President of OKX, expressed the company's long-standing interest in Singapore, describing it as a cornerstone of its global strategy. Fang emphasized Singapore's appeal to entrepreneurial ventures, citing its tech-savvy populace as early adopters. She praised the country's regulatory framework as "clear and thoughtful," enabling businesses like OKX to cultivate sustainable growth over the long term. With this regulatory approval, OKX intends to concentrate on bolstering its spot product offerings in the Singaporean market. Fang outlined plans to forge local banking partnerships to enhance customer experiences and expand service offerings in the future. In summarizing the company’s outlook, Fang wrote that OKX is looking to “build locally. Be compliant. Invest long-term.” OKX CEO Star Xu suggested that the firm intends to be a “long-term member of the Singapore fintech community” as a consequence of the approval. Global market expansionThe company’s CMO, Haider Rafique, pointed out that this latest license approval follows hot on the heels of further expansion in venues like Dubai, Argentina and Turkey. The in-principle license approval follows OKX's recent acquisition of a conditional license from Dubai’s cryptocurrency regulatory authority. On Jan. 16, the Virtual Assets Regulatory Authority (VARA) of Dubai granted OKX a license, enabling the exchange to provide regulated services as a virtual asset service provider within the region.On Feb. 27 the firm launched OKX TR, catering to the needs of crypto users in Turkey. In the same month, the company launched its services within the Argentinian market. MPI-licensed entities like OKX enjoy the privilege of facilitating multiple payment services, surpassing volume limitations prescribed for standard payment firms. This flexibility allows OKX to transcend the prescribed limits of three million Singapore dollars ($2.2 million) for individual payment services and a monthly cap of SG$6 million ($4.4 million) for multiple services. Joining OKX in the pursuit of regulatory compliance, BitGo, a prominent crypto custody business, also received an in-principle approval from MAS. BitGo announced on Jan. 10 that it had secured initial approval, subject to fulfilling additional requirements stipulated by the regulator. Several other notable cryptocurrency entities, including Crypto.com, Coinbase and Ripple, have already obtained complete payment institution licenses in Singapore. OKX's attainment of in-principle approval underscores the ongoing drive among market participants towards regulatory compliance and expansion into key markets. The move should help the firm to position itself well for further market growth as the digital assets space continues to progress.

Japan Moves to Allow Startups to Sell Digital Tokens to VC FundsIn a move that further advances Japan’s efforts in the digital assets space, the country is poised to permit startups to raise capital from venture capital firms using digital assets instead of traditional stock.The approval of this approach will provide a broader spectrum of funding options for emerging companies deeply entrenched in the world of blockchain technology.Photo by Bagus Pangestu on PexelsAcceptance beyond conventional assetsCurrently, limited partnerships in Japan are predominantly associated with conventional assets such as shares, stock options, and security tokens defined by local securities laws. However, according to a report published by local financial daily Nikkei Asia on Friday, an impending rule change is set to expand this list to encompass other tokens and crypto assets, heralding a fresh era of investment opportunities in a domain that has remained relatively under-explored within the country.The Japanese government is on track to present the requisite legal revisions to the parliament, with expectations for this transformational move to occur as early as 2024. Unlike traditional shares, blockchain-based tokens offer the unique advantage of swift creation without the need for intermediaries or brokerage services.Consequently, fundraising via digital assets is becoming the preferred choice for companies operating in the cutting-edge realm of Web3 technologies, including blockchain.In Japan, a number of companies, such as the blockchain developer HashPalette, have already raised substantial amounts through token offerings. However, the existing limitations obstructing limited partnerships from investing in tokens have hindered Japanese venture capital firms and institutional investors from partaking in the burgeoning success of Web3 enterprises.Overseas token issuanceTraditionally, startups have resorted to issuing tokens in overseas locations like Singapore and Dubai. On the venture capital front, Japanese powerhouse Skyland Ventures ventured into tokens through its Singapore-based subsidiary.Notably, Japan’s Financial Services Agency (FSA) is contemplating a tax code revision for fiscal year 2024 and beyond, with the objective of exempting crypto assets and tokens from taxes on unrealized gains based on market value. This strategic move aims to eliminate a significant deterrent for potential investors in the field.While venture capital firms are eagerly anticipating this legislative change, some, like B Dash Ventures, acknowledge that the revision of the limited partnership law alone may not trigger an immediate surge in fundraising via virtual currencies. Nevertheless, it marks a significant step toward fostering a more conducive environment for digital asset investment.Removal of limited partnership restrictionsJapan’s forward-looking approach also extends to the removal of restrictions on limited partnerships that previously mandated them to invest more than half of their capital within the domestic market. This move is expected to bolster profits, empower venture capital firms with more substantial capital reserves, and ultimately fuel investment in domestic startups.Japan’s decision to embrace the potential of digital assets for startup fundraising is a progressive move. Initial exchange offerings (IEOs) are already authorized in Japan, but this proposed funding mechanism would offer a new channel through which Web3 innovation can be financed within the East Asian island nation. Given that most Web3 startups raise funds in this way, it will mean that Japanese-based firms in the Web3 space will be able to develop and participate fully as this innovation rolls out further on a global basis.