Vietnam launches five-year pilot to regulate crypto asset trading

HashKey’s New $100M Fund to Prioritize AltcoinsHashKey Capital, the investment arm of Hong Kong-based crypto firm HashKey Group, is embarking on a new investment journey with the launch of a fund that predominantly targets major altcoins.Photo by Kanchanara on Unsplash50% altcoin allocationIn a recent interview with Reuters, Jupiter Zheng, the Portfolio Manager of the fund, revealed that less than 50% of the fund’s allocation will be directed towards Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies.The fund has already garnered attention from potential clients, primarily high-net-worth individuals and investment firms catering to affluent, high-net-worth Asian families. Zheng underscored the fund’s commitment to diversifying investment strategies, which he believes is necessary as a consequence of the Hong Kong stock market’s recent weakness.“We see untapped demand from professional investors who wish to chase above-market returns in crypto,” Zheng noted, suggesting that the allure of crypto assets is becoming increasingly appealing to traditional investors.$1 billion assets under managementHashKey Capital has $1 billion in assets under management, and the firm has set an ambitious target of raising $100 million for the newly launched fund within the next 12 months. This allocation strategy also includes a portion of the fund’s holdings in cash, allowing for flexibility in navigating the dynamic and volatile cryptocurrency market.In addition to forging ahead with crypto investments, the company is actively establishing distribution channels with offshore Chinese financial institutions, expanding its reach and influence in the digital asset space.Positive market outlookZheng remains optimistic about the crypto market’s future, expressing confidence that cryptocurrency prices are finding stability as industry liquidity improves. He cited several factors contributing to this stabilization, including the plateauing of US interest rates and the growing interest of large US asset managers in filing for spot Bitcoin ETFs, indicating a maturing and evolving industry sector.Responding to news of the new fund, Ryan Selkis, CEO and Founder of crypto market intelligence firm Messari, said that he expected other funds to follow suit in 2024 given that “there’s a ton of inefficiency and mispricing in assets 50–500 by market cap.”HashKey’s progression in the crypto investment space can be traced back to its acquisition of a Type 9 asset management license from Hong Kong’s Securities and Futures Commission last year. This license granted HashKey the ability to manage portfolios exclusively composed of virtual assets, laying the groundwork for its latest venture. It has since secured Type 1 and Type 7 licenses and recently started offering its products to retail investors in Hong Kong, being one of the first to do so.Funding roundEarlier in the year, the company successfully closed a $500 million investment round for a fund dedicated to infrastructure, tooling, and applications that drive the widespread adoption of blockchain and crypto technologies. In April, it launched a wealth management service in response to demand from investors who were looking to gain exposure to digital assets.Hong Kong’s welcoming stance towards cryptocurrencies and its proactive approach to addressing market demand for alternative assets have played a pivotal role in attracting digital asset firms. The city’s Securities and Futures Commission (SFC) has been granting licenses to crypto exchanges in alignment with its new licensing framework, opening up opportunities for retail investors to trade “large-cap tokens” on licensed platforms while implementing safeguards like knowledge tests, risk profiles, and reasonable exposure limits.

NEOPIN wallet users gain access to Pala’s NFT marketplaceNEOPIN, a centralized decentralized finance (CeDeFi) platform, has entered into a strategic partnership with South Korean NFT marketplace Pala. This collaboration aims to connect the NEOPIN wallet to Pala’s NFT trading platform, thereby facilitating a more interconnected blockchain ecosystem on a global scale.Photo by Pete Linforth on PixabayNEOPIN wallet integrated into PalaThis partnership paves the way for enhanced user experience, as NEOPIN wallet holders will have the added convenience of trading non-fungible tokens (NFTs) directly on Pala using the virtual assets in their NEOPIN wallets. Furthermore, these wallets will also serve as a repository for purchased NFTs.Additionally, Pala stands to benefit from access to NEOPIN’s international users who have gone through the Know Your Customer (KYC) and anti-money laundering (AML) checks, broadening its market reach.Growing network connectionsNEOPIN is set to aid Pala in establishing connections with NEOPIN’s network of NFT partners. Conversely, Pala will assist NEOPIN with introductions to Pala’s blockchain partners. This collaborative approach leverages their respective strengths, setting the stage for a synergistic relationship.Additionally, the collaboration will involve concerted efforts from both parties to enhance their services and broaden their customer reach. Part of this initiative includes aiding Web2 companies and projects in their Web3 endeavors, as well as rolling out products that are underpinned by real-world assets (RWAs) or offer practical real-life benefits.NEOPIN CEO Kim Yong-ki expressed enthusiasm about the partnership, noting that it is poised to be mutually advantageous, particularly since trust and convenience are core values shared by both companies. Kim further emphasized their commitment to achieving success on an international level, not only through service cooperation but also by utilizing their respective ecosystems.Jason Pyo, CEO of Pala, echoed a similar sentiment, stating that the partnership is set to propel service enhancement, foster the growth of blockchain businesses and contribute to the expansion of the Web3 ecosystem.It’s noteworthy that Pala is a joint venture established by Snow, the mobile video messaging app subsidiary of internet giant Naver, and artificial intelligence (AI) company Alchera. This joint enterprise has claimed a leading position in the Korean NFT trading arena, having exceeded an accumulated trading volume of KRW 30 billion ($23 million) as of April last year.The Pala platform serves as a one-stop shop for NFT services, including NFT minting, secondary market sales and launchpads. It accommodates a range of blockchains like Klaytn, Ethereum and Polygon.NEOPIN has been expanding its offerings to improve user experience, introducing services beyond its DeFi suite. This includes their NFT wallet capabilities. Following its announcement last year to intensify focus on NFT initiatives, NEOPIN has updated its wallets to support multiple NFT standards, such as KIP-17, ERC-721 and EIP-5192.

The Shanghai office of a Chinese regulatory body which oversees assets belonging to state-owned enterprises (SOEs) is reported to have held a session dedicated to the topic of digital assets and in particular, stablecoins, fueling speculation of a positive shift in outlook on crypto in China.Photo by Hanny Naibaho on UnsplashOn July 11, Reuters reported that the State-owned Assets Supervision and Administration Commission (SASAC) held the meeting in Shanghai on July 10, with the publication suggesting that the event represented “a marked shift in tone” in the consideration of digital assets in China, bearing in mind that crypto trading and mining are banned within the country. Following the “development trend and response strategies” study session, He Qing, director of the organization, said that there was a need for "greater sensitivity to emerging technologies and enhanced research into digital currencies." The regulator called on Chinese state-backed agencies to consider the adoption of blockchain technology for use cases like real-world asset (RWA) tokenization, supply chain finance and cross-border trade. A policy expert from Shanghai-headquartered securities firm, Guotai Haitong Securities, attended the meeting, outlining details on the history, characteristics and categories of cryptocurrencies and stablecoins, while also discussing global regulatory frameworks. Last month, a subsidiary company of Guotai Haitong Securities, Guotai Junan International (GTJAI), became the first company from the Chinese mainland to be given approval by the Hong Kong securities regulator to offer digital asset trading services. Adapting to the stablecoin trendIn June, state-owned financial newspaper, Securities Times, called on Beijing to adapt “to the trend of stablecoins.” The publication claimed that industry insiders “generally believe that, as an emerging payment tool, the unique advantages and potential risks of stablecoins cannot be ignored, and that the development of [yuan-backed] stablecoins should be sooner rather than later”. The same month, Pan Gongsheng, governor of the People’s Bank of China, acknowledged that stablecoins are playing a role in disrupting global payments infrastructure.  It also emerged recently that JD.com, a Chinese e-commerce giant, and Ant Group, an affiliate company of the Alibaba Group, have been lobbying the Chinese authorities for the authorization of yuan-based stablecoins. On X, Shanghai Macro Strategist, a China strategist, claimed that the recent surge in the Bitcoin unit price had come about as a consequence of this stablecoin-focused SASAC meeting in Shanghai. At the time of writing, BTC has appreciated 9.3% over the course of the past seven days. The strategist suggests that the event is fueling speculation that “the Chinese government may be in the early stages of reassessing its official stance on the crypto industry.” In their monthly report for May, the strategist pointed out that “Beijing’s outright rejection of [Bitcoin] as a legitimate asset” was holding the leading asset back on its path to “reserve status.” The strategist added: “Over the longer term, a shift in China’s stance could prove to be the single most powerful bullish catalyst—elevating Bitcoin from a fringe asset to a globally recognized store of value.”