Ripple supports Japanese Web3 initiative & crypto research within APAC

Hong Kong Bank to Act as Settlement Bank for Crypto FirmsZA Bank, Hong Kong’s largest virtual bank, is looking to become the go-to bank for crypto startups. The online bank has been given permission to serve as the settlement bank for regulated Web3 companies in the city. This development was announced at Hong Kong’s Web3 Festival, an event supported by the local government and attended by crypto startups and institutions from across Asia.©Pexels/Frank BarningHashKey and OSL collaborationZA Bank is expected to facilitate crypto-fiat conversions with two licensed exchanges in Hong Kong, HashKey and OSL, where customers can swap crypto into fiat currencies. ZA Bank will also offer basic banking services to local Web3 startups, a category that is currently underserved by traditional financial institutions.ZA Bank is focusing on assisting local Web3 startups and small-medium enterprises (SMEs).The bank linked up to the city’s company registry data, allowing for minimal information input and cross-checking. According to Devon Sin, alternate chief executive of ZA Bank, the bank currently conducts AML scrutiny against the usual checklists to satisfy the regulatory requirements. No AML issues have emerged during the recent months of work.Competing for global crypto businessHong Kong is trying to establish itself as a crypto-friendly alternative to other hubs, such as the US and Singapore, and a sandbox for Web3 businesses from China, where crypto trading is illegal. The city is revamping its digital assets regulatory framework, with plans to legalize retail trading of major cryptocurrencies like Bitcoin and Ether. Ronald Lu, CEO of ZA Bank, said that ZA Bank’s online account opening for Web3 startups is a major step forward in integrating traditional banking services with the Web3 world.According to Lu, ZA Bank will act as a settlement bank for clients to allow withdrawals in Hong Kong, China, and US currencies after they deposit crypto tokens with exchanges. The business model is already operational through HashKey and OSL, the only two licensed crypto exchanges in Hong Kong. The bank will provide the same service for other exchanges as they become licensed.HK China’s crypto “trial run”Hong Kong is opening up to the beleaguered sector in a move that aims to revive its status as a financial center following years of COVID restrictions and political upheaval. However, access to banking has been a major hurdle for the city’s ambitions. The city’s banking and securities regulators are hosting a round-table for crypto players and bankers to share experiences and perspectives on banking services later this month.Many have speculated about a softening stance on cryptocurrency by the Chinese authorities. However, it’s more likely that they continue with strict regulation and control relative to crypto in mainland China while happy to monitor a more open approach to it within Hong Kong. Crypto analyst Myles Deutscher likens the approach to a “trial run” that is being monitored by China.Launched in March 2020, ZA Bank is one of Hong Kong’s eight licensed virtual banks and had the most net assets as of last year, despite remaining unprofitable. The virtual lender doesn’t expect it will need to boost its headcount to handle the crypto client push. Although the revenue model is still unclear, Lu said that more clients, more deposits, and more business opportunities are always great for the bank. The lender doesn’t offer services for clients from mainland China, given the restrictions in place there.

Ozys integrates Orbit Swap into SK Telecom’s T WalletSouth Korean blockchain tech company Ozys revealed on Wednesday (local time) that its Orbit Swap service has been incorporated into SK Telecom’s (SKT) T Wallet. This integration allows for the smooth exchange of native tokens within the digital asset wallet service of one of Korea’s major mobile network providers.Photo by Mariia Shalabaieva on UnsplashT Wallet featuresSKT’s T Wallet, accessible on both mobile and web platforms, offers various features. It facilitates the storage and management of digital assets, handles digital content NFTs, supports decentralized applications (dApps) and provides identity verification solutions.Now equipped with Orbit Swap, T Wallet enables users to seamlessly swap native tokens of blockchains like Bitcoin and Ethereum with a single transaction. Additionally, with Orbit Swap’s explorer feature integrated, users can instantly review their transactions, further improving the user experience.Orbit Swap was developed as a result of Orbit Bridge, the cross-chain initiative of Ozys. It also supports various tokens, including USDC, USDT, MATIC, XRP and TON.Result of August partnershipThis integration marks a result of a partnership between the two companies, established last August, aimed at advancing the Web3 ecosystem.Both entities are committed to fast-tracking Web3 adoption by developing user-centric services and establishing an ecosystem that contributes to user protection.Speaking on their collaborative effort, Choi Jin-han, CEO of Ozys, expressed his belief that the Orbit Swap feature would serve as a gateway to a multi-chain ecosystem for T Wallet users.

CoinFund expands its reach into AsiaCoinFund, a New York-based venture capital firm specializing in the cryptocurrency ecosystem, is strategically expanding its presence in Asia, with Hong Kong as its first destination.The move comes amid regulatory uncertainties in the United States, prompting some crypto companies to explore more favorable environments. CoinFund’s decision is bolstered by Hong Kong’s recent implementation of a regulatory framework for virtual assets and its commitment to attracting virtual asset businesses.Photo by Florian Wehde on UnsplashHiring in Hong KongIt emerged earlier this month that the U.S. company had hired Dmitry Lapidus as its Senior Liquid Analyst based in Hong Kong. The move has highlighted the increasing trend of capital flowing out of the United States, particularly towards Asia.In an interview with the South China Morning Post (SCMP) last week, Lapidus expressed the firm’s goal to tap into the growing crypto trading activities and the burgeoning community of crypto entrepreneurs in the region. CoinFund, established eight years ago, sees Asia as a key market for expansion. Lapidus stated:“If you look at the history of how this industry has evolved, there has always been very active participation from Hong Kong and China, in particular in the early days” . . . “So I almost view it as one of the more natural places for innovation and for experimentation.”Asian opportunity amid U.S. difficultiesThe regulatory landscape in the United States has been a source of frustration for crypto firms, facing challenges due to a lack of clear cryptocurrency regulations and increased enforcement actions by authorities. To underscore the adversarial regulatory environment further, it emerged on Monday that the Securities and Exchange Commission (SEC) is suing crypto platform Kraken for the second time, having agreed to a $30 million settlement with the company back in February.Taking to the X platform, Kraken Founder Jesse Powell stated:”Message is clear: $30m buys you about 10 months before the SEC comes around to extort you again. Lawyers can do a lot with $30m but the SEC knows that a real fight will likely cost $100m+, and valuable time. If you can’t afford it, get your crypto company out of the US warzone.”CoinFund’s move to Hong Kong follows a broader trend, with other U.S.-based crypto VC firms, such as Hivemind Capital Partners, also expanding their operations to the region.Hong Kong’s commitment to embracing the cryptocurrency sector has been evident in its policies, including the implementation of a mandatory licensing regime for centralized exchanges, enabling them to cater to retail investors. The city’s proactive approach contrasts with the regulatory uncertainty in the U.S., making it an attractive destination for crypto businesses seeking a more favorable environment.CoinFund Founder Jake Brukhman highlighted the importance of the Asian market in a recent blog post. Brukhman confirmed that 45% of the startup founders the firm backs are headquartered outside the United States. Against that backdrop, Brukhman said, “We’re both inspired by the energy in the Asian market and responsible for interpreting these opportunities for our portfolio.”While the broader crypto investment landscape has seen a decline, with a 28% quarter-over-quarter drop in investment in the third quarter of this year, CoinFund stands out. In July, the firm successfully raised $158 million for a new fund dedicated to supporting early-stage crypto startups.