Four in 10 wealthy UAE investors hold crypto, survey finds

China to outline clear directions for NFT & Web3 developmentEarlier this week, China’s Ministry of Science and Technology announced a decision to work towards releasing a comprehensive strategy document aimed at clarifying the future path for the development of NFTs and Web3.Photo by Christian Lue on UnsplashFurthering Web3 innovationIn a communication published online on Tuesday, the ministry outlined its plan to enhance collaboration between relevant departments, emphasizing the promotion of Web3 innovation, increased research deployment and the strengthening of talent within the industry. Despite the regulatory challenges in the crypto space, the ministry acknowledged the growing interest in NFTs among Chinese citizens.The strategy document, developed in collaboration with the Chinese Academy of Sciences and the China Association for Science and Technology, will address key issues such as inheritance, innovation, security and government responsibilities.Ban not suppressing interestDespite the country’s ban on cryptocurrencies, the ministry expressed a commitment to the development of the Web3 industry, particularly focusing on non-fungible tokens (NFTs). Earlier this year, a Wall Street Journal investigation found that leading global crypto exchange Binance was thriving in China.One gray area that Chinese citizens are exploiting relative to the ban is that of NFTs. Crypto trading and mining were banned a couple of years ago. However, NFTs remain legal with the result that there has been a surge in adoption of digital collectibles in China. That prompted China’s top procuratorial agency, the Supreme People’s Procuratorate of China, to issue a warning relative to a number of attributes and risks relative to NFTs in May.Web3-related initiativesSeveral Web3 initiatives have already been underway in China. The Ministry of Science and Technology, in conjunction with the Cyberspace Administration of China, has released important policy documents, including the “Guiding Opinions on Accelerating the Application of Blockchain Technology and Industrial Development” and the “Blockchain Information Service Management Regulations.”Additionally, collaborative efforts involving the Cyberspace Administration of China, the Propaganda Department of the Central Committee, the Supreme People’s Court and other departments have conducted blockchain pilot actions, specifically in areas such as energy, rule of law, copyright and trade finance.The metaverse is another Web3 segment that the Chinese seem to be targeting for growth. A report by POLITICO published last August found that Chinese authorities and state-owned companies appeared to be seeking to mold and develop the metaverse in line with Chinese values. Efforts are being made to effect further development in the regions also, with the city of Zhengzhou announcing in May a set of metaverse-related policy proposals.Looking ahead, China’s Web3 strategy aims to concentrate on key sectors such as government affairs and industry. The plan seeks to encourage the development of novel business models, including NFTs and decentralized applications (dApps), while also accelerating the innovative application of Web3 and the construction of a digital ecosystem.The ministry’s recent response to Wu Jiezhuang, a member of the CPPCC National Committee, the country’s political advisory body, indicated that the delay in releasing the strategy document is part of a meticulous approach to ensure the strategic framework aligns with the evolving nature of the industry.While the postponement may be met with some disappointment, the overall tone remains optimistic, pointing towards the likelihood that China is committed to fostering innovation within the Web3 sector.

Singapore Exchange Limited (SGX), the city-state’s primary asset exchange, is in the process of establishing Bitcoin perpetual futures trading on the platform.Photo by Kanchanara on UnsplashInstitutional product offeringAccording to a report published by Bloomberg earlier this week, the exchange platform intends to launch Bitcoin futures sometime during H2 2025. The product launch will be subject to regulatory approval from the Monetary Authority of Singapore (MAS). A spokesperson for the company told Bloomberg that the product offering will be geared exclusively towards institutional investors and traders in an effort to “significantly expand institutional market access.” Retail access to the product will be prohibited. Once launched, these Bitcoin perpetual futures contracts, being offered through a traditional finance (TradFi) outfit like SGX, will help to blur the lines between TradFi and the emerging crypto sector. Perpetual futures have no expiry date. They offer a means for traders to bet on price changes in an underlying asset while doing away with the need to take ownership of the asset itself. Cautious approachSGX has been cautious in listing crypto assets and derivative products. Last year the firm’s CEO, Loh Boon Chye, said that the time was not yet right for such listings.  His concern back then was that any such product launches would need “sustainable ecosystem support,” adding that “that means demand, that means governance, that means structure.” While spot Bitcoin exchange-traded funds (ETFs) had been approved in the United States at that point, there has been much further development in the crypto-sphere since then, following the election of a pro-crypto administration in the U.S. That event has had knock-on effects globally. Singapore’s SGX isn’t the only traditional exchange platform to respond. Japanese futures exchange, the Osaka Dojima Exchange (ODEX), is gearing up to file an application with the Financial Services Agency (FSA) to list a Bitcoin futures product later this month. Closer to home, an American digital asset marketplace that focuses on institutional trading, EDX Markets, has plans to introduce Bitcoin perpetual futures products to the Singaporean market, according to a report which emerged in January. In May 2024, EDX launched EDXM Global, a settlement platform, in Singapore. This product launch by SGX serves the purposes of decision-makers in Singapore, who have been trying to position the city-state as a digital asset industry hub. Additionally, the move will bring greater acceptance of the digital assets sector from traditional market participants. Crypto perpetual futures contracts were first pioneered by crypto derivatives exchanges like BitMEX back in 2016. Since then, other crypto-native platforms like Binance and OKX have offered these products. In the case of unregulated offshore exchanges, the products have proven to be controversial, as at times, they have been used in a manner that has exposed market participants to counterparty risk. Failed crypto exchange FTX, together with its sister company Alameda Research, relied on the products in their trading activities. SGX, as a seasoned, regulated TradFi operator, which holds an Aa2 rating from Moody’s, is likely to prove to be a more palatable option for institutional players.

Netmarble F&C, a subsidiary of South Korean game developer Netmarble, has taken action to lay off employees by notifying all 70 workers under its Metaverse World project to resign, according to industry sources on Friday (KST). Metaverse World, which had begun developing an IP-based metaverse platform, will be abandoned during an upcoming corporate reorganization process. Photo by julien Tromeur on UnsplashA brief journey from ambition to abandonmentMetaverse World was launched by Netmarble in 2022 by acquiring blockchain gaming platform ITAM Games and Web3 wallet developer Bono Technologies. It had been scheduled to hold a closed beta test last year, but no news of the development has resurfaced since then.  However, it was revealed today that the project will be abandoned during the corporate reorganization process. "We have been looking for a sustainable direction to take the project, but business conditions and market changes have pushed us to make the difficult decision to terminate the Metaverse World corporation, which was developing a metaverse platform,” a representative from the company disclosed. Fluctuating trendsThe metaverse first gained traction during the COVID-19 pandemic, when gatherings were limited to online spaces. Since then, the industry and other related technologies like Web3, blockchain and NFTs also garnered significant attention, with various companies snagging investments to fund their projects. However, as the attention of tech and investment firms has shifted to AI, these companies have increasingly found themselves in difficult positions. Last September, Com2Verse, the metaverse arm of content provider Com2uS Holdings', also began streamlining its workforce, organizing voluntary retirement and transition arrangements for its employees.