Japan to tighten crypto lending rules as regulator backs bank stablecoin pilot

Zipmex, the Asian digital asset exchange, faces another setback as the Securities and Exchange Commission Board of Thailand (SEC Board) moves to recommend the revocation of its digital asset business license. This decision, announced last week, marks the latest in a series of challenges for the exchange, which has struggled to navigate the complexities of the crypto market's downturn.Photo by Oleksandr P on PexelsCapital requirements failureThe SEC's recommendation stems from Zipmex's failure to meet the increased net capital requirement and address deficiencies in its personnel and management structure. These shortcomings were deemed unacceptable by the regulatory body, prompting a 15-day ultimatum issued on Feb. 1. Earlier this month, the Commission ordered a halt to Zipmex operations, enforcing a temporary suspension until such time as the company had improved its financial position and applied needed changes to its management structure.Despite this window for compliance, Zipmex fell short of meeting the specified conditions, leading to the current proposal for license revocation and the imposition of stringent regulatory measures on Thailand's digital asset exchanges. Business suspension extensionDuring a meeting on Feb. 21, the SEC further resolved to extend Zipmex's business suspension, initiated on Feb. 1, and allowed clients to request asset returns on the exchange until March 11. Any unclaimed assets after this date will be required to be placed in a "trusted and secured system," with Zipmex obligated to report this to the SEC. Notably, even after the potential revocation of its license, Zipmex will retain its status as a limited company, subject to associated rights, responsibilities and liabilities, including the possibility of legal action. Zipmex's woes trace back to 2022 when it faced significant challenges due to exposure to failed crypto lender Babel Finance. In July of that year, the exchange suspended withdrawals for weeks due to concerns over its ties to crypto lenders Babel and Celsius, both facing financial distress. Although access to Trade Wallets was restored after three days, Z Wallets remained inaccessible into the following year. Failed Coinbase and V Ventures dealsIn the midst of its troubles, Zipmex attracted interest from Coinbase, albeit without success. While Coinbase made a strategic investment in Zipmex, the acquisition attempt did not materialize as initially intended. Furthermore, Zipmex's financial struggles led it to file for debt relief in Singapore in July 2022, further complicating its position in the market. The exchange's regulatory challenges continued as it faced scrutiny from the SEC regarding compliance with the Digital Assets Act. Despite attempts to secure acquisition deals, such as the proposed acquisition by Thai investor V Ventures, Zipmex has been unable to alleviate regulatory concerns or stabilize its operations effectively. Since obtaining its license from the SEC in January 2020, Zipmex has operated in Thailand, Indonesia, Singapore and Australia. However, its inability to address regulatory requirements and financial challenges has cast doubt on its future viability in these markets.  In November of last year, the company itself announced a temporary cessation of trading in Thailand while it worked towards becoming compliant within that jurisdiction. Earlier this month, Thailand’s SEC took legal action against Akarlap Yimwilai, the former CEO of Zipmex Thailand.

ZTX Collects $13 Million in Seed Funding for Web3 Metaverse PlatformSingapore-based Web3 metaverse platform ZTX, a joint blockchain venture by ZEPETO and Jump Crypto, has raised a total of $13 million in its most recent seed funding round. The platform, currently undergoing development, will serve as an immersive three-dimensional open world where Web3 creators can interact and trade digital assets.Photo by Markus Winkler on Unsplash“We’re excited to share news about our fundraising round,” said Chris Jang, Co-CEO of ZTX. “We have been building steadily and discreetly for well over a year, and with our token launch happening in the coming months we want to emphasize the commitment that our investors, just like our team, have toward our vision to provide an infrastructure layer to creators.”Global backing for ZTXThe latest funding round led by Web3 infrastructure firm Jump Crypto attracted investors from around the world, such as Parataxis Capital, MZ Web3 Fund, Collab+Currency, and more, due to its promising outlook in the Web3 sphere.“We believe that ZTX has the potential to create a unique world, setting it apart from all other Web3 metaverse projects. The seamless integration of digital asset creation and trading in the metaverse with Web3 technology is truly exciting, making their application within Web3 applications a natural fit. Moreover, the ZTX team’s expertise in both the metaverse and Web3 is exceptional, and we have high expectations for their future endeavors,” said Yuki Kanayama, General Partner at MZ Web3 Fund.Strong foundation and team expertiseZTX’s creator ZEPETO also offers solid promise as South Korea’s leading metaverse platform that touts over 400 million lifetime users. It is the fourth-largest metaverse platform in the world, holding its spot among the same ranks as Roblox, Fortnite, and Minecraft. It has also partnered with major brands such as Gucci and Starbucks along with celebrities like the K-pop girl group Blackpink.Made up of industry veterans from tech and Web3 giants like Apple, Roblox, Solana, Cosmos, and more, the ZTX team plans to utilize its various underlying advantages to globalize Web3 and bring it to a wider mainstream audience.The team has consistently been building the ZTX ecosystem from the ground up. In a recent development, the platform ran its first private, invite-only beta test last month, dubbed “Playtest”. It has also worked with Dust Labs, the software provider for NFT projects such as DeGods and y00ts, to launch ZTX Partner Wearables, a community-driven initiative that provides tools to IP partners for creating 3D assets and contributing to the expansion of the narrative within an open-world environment.“As a crypto-focused venture fund, we back visionary teams who are using decentralized technology to shape the next wave of consumer products. We are thrilled to be part of this round, supporting ZTX’s exceptional team and their unique advantages. ZTX can provide a distinct infrastructure layer for diverse NFT projects and Web3 builders with its creator-focused tooling, and we look forward to helping ZTX succeed in its ambitious mission,” said Stephen McKeon, Partner at Collab+Currency.Future projectZTX’s upcoming activities include the launch of the Genesis Home Mint, featuring 4,000 bespoke 3D District Homes. This collection offers benefits such as a district membership in one of the four districts — Arts, Financial, Fashion, and Games — as well as exclusive access to future releases, events, and enhanced gameplay experiences within ZTX.

Saudi Arabia’s NEOM Forms $50M Animoca Brands PartnershipHong Kong’s Animoca brands, a gaming and metaverse venture capital firm, is embarking on a partnership with Saudi Arabia’s NEOM Investment Fund, focusing on pioneering Web3 initiatives.Animoca announced the initiative via a statement published to its website on Monday. NEOM is an ambitious project aiming to create a futuristic urban oasis in northwest Saudi Arabia, serving as a nexus for technology, commerce, entertainment, and tourism. It is planning to invest $50 million in Animoca.Photo by Hala AlGhanim on UnsplashDeveloping Web3 service capabilitiesThis collaboration will see Animoca harness its expertise to develop Web3 service capabilities with broad global applications in tandem with NEOM, aligning with NEOM’s vision of becoming a cutting-edge tech hub of the future.Animoca Brands has been a prominent player in the Web3 investment arena for several years. In July 2022, the company’s valuation soared to $6 billion, with backing from notable entities such as Singapore’s state investment fund, Temasek. Despite its ambitious goal to secure $2 billion for its metaverse fund in November of the same year, those expectations were significantly tempered following the FTX collapse. Consequently, in March, Animoca revised its target to a more modest $800 million.In-house market makingA report by The Block on Friday revealed that Animoca has been making efforts to pitch an in-house market making service to fledgling Web3 businesses within its portfolio. That service has been presented by the company to more than 400 startup projects in which it has been an investor over recent months.The key market makers in the crypto space include Wintermute, Keyrock, and GSR. This move by Animoca potentially puts Animoca in direct competition with these primary crypto-sector market makers. An in-house digital asset team has been tasked with offering the service. An Animoca spokesperson stated:“Its primary role, much like the treasury teams in many large corporations, is to optimize the utilization of the company’s balance sheet. The team does conduct market-making to ensure there is enough buy/sell liquidity for certain tokens, which is similar to the function that third-party market makers conduct, except that we choose to perform this in-house for scale and efficiency.”Saudi diversificationAs part of its Vision 2030 initiative, Saudi Arabia has been looking to diversify away from its predominantly oil-based economy. In an interview last month, Animoca Brands Founder Yat Siu outlined that the Middle Eastern country is embracing new technologies such as artificial intelligence (AI) and blockchain, encompassing blockchain-based gaming and Web3.In July it emerged that the Saudi Central Bank (SAMA) and the Hong Kong Monetary Authority (HKMA) were looking to extend the level of collaboration between the two territories relative to international payments and tokenization.This renewed interest from state-backed funds in Animoca suggests a potential shift in the Web3 venture capital landscape, coinciding with broader indications of a thaw in the crypto winter. The collaboration with NEOM and the injection of $50 million underscore the growing recognition of Web3’s potential, cementing Animoca Brands’ position as a key player in the ever-developing Web3 space.