Japan moves to fold crypto into mainstream finance

Singapore Pledges $112M to Boost Fintech Solutions Including Web3Acknowledging the growing significance of collaboration with industry stakeholders in propelling advancements in emergent technologies such as Web3, Singapore’s central bank, the Monetary Authority of Singapore (MAS), has unveiled plans to allocate up to 150 million Singapore dollars (approximately $112 million) towards supporting a spectrum of financial technology solutions, with a special focus on Web3.Photo by Jason Leung on UnsplashDistributed over three yearsThis financial commitment, outlined in a press release published to the MAS website on Monday, will be distributed over a three-year period as part of the revamped Financial Sector Technology and Innovation Scheme (FSTI 3.0), designed to invigorate and fortify innovation by backing projects that leverage cutting-edge technologies.The renewed innovation scheme encompasses multiple avenues, including the Enhanced Centre of Excellence track, the Environmental, Social and Governance (ESG) fintech track, and the Innovation Acceleration track — the last incorporating the realm of Web3.Emphasizing industry partnershipsMAS underlined the importance of forging partnerships with industry participants to bolster inventive fintech solutions originating from emerging technologies such as Web3.“MAS will conduct open calls for the use of innovative technologies in industry use cases. Grant funding will be provided to support actual trial and commercialization,” the central bank stated.In addition to these efforts, the initiative will maintain its commitment to encouraging adoption across domains like artificial intelligence, data analytics, and regulatory technology (RegTech). Furthermore, there will be an emphasis on fostering adoption within companies that are still digitally maturing and seeking to integrate RegTech solutions.Applicants across the various program tracks will be required to allocate resources toward nurturing talent. This strategy aims to augment Singapore’s fintech talent pool, ultimately contributing to the nation’s expertise in the sector.Ravi Menon, the Managing Director of MAS, underscored the substantial investment that the Financial Sector Development Fund (FSDF) has funneled into the FSTI program since its inception in 2015.Menon highlighted that this initiative’s overarching objective is to spur innovation and facilitate the seamless integration of novel technologies within the financial landscape. Over the years, the program has exemplified its commitment to driving transformation and pioneering the adoption of new technology across the financial sector.Nurturing Web3 innovationPotential Web3 and crypto hubs have come and gone, but Singapore has been vying to take its place as a center for Web3 innovation over a sustained period after it suffered some setbacks in 2022 related to a string of crypto business failures.While Binance had not been permitted to serve customers in the city-state, that meant that a disproportionate number of Singaporeans got caught up in the failure of the FTX crypto exchange. Alongside that regulatory failure, state investment giant Temasek had to write off a substantial investment in the company, while suffering reputational damage for not having detected the FTX fraud.The city-state has also been home to the failure of crypto lender Hodlnaut and crypto hedge fund Three Arrows Capital (3AC). Despite these setbacks, Singaporean authorities are continuing to work towards setting the proper stage to further develop Web3 innovation. In June, MAS proposed a comprehensive framework for the design of open networks relative to tokenized digital assets. This latest initiative will further Singapore’s ambition to grow its Web3 sector.

Silence From Multichain’s Chinese Developers Stokes FearA prolonged silence from the project leadership behind Multichain, a cross-chain routing network, is causing growing concern among the users of the cross-chain protocol. The network currently holds $1.5 billion in total value locked (TVL).The protocol has experienced five days of stuck transactions, and multiple cross-chain bridge pathways, including Kava, zkSync, and Polygon zkEVM are still offline. Initially, the project’s China-based team attributed the issues to an upgrade that was being fixed. That explanation was changed recently to an ambiguous “force majeure,” leaving users with more questions than answers.Photo by Santiago Lacarta on UnsplashPossible arrests in ChinaAdding to the uncertainty are rumors circulating on Twitter that the core leadership team may have been arrested in China. Although the rumors remain unconfirmed, they have contributed to the growing sense of unease within the community. DJ Qian, one of the co-founders of Multichain who is no longer involved with the project, took to Twitter to share his attempts to seek clarification. Qian mentioned reaching out to Multichain CEO Zhaojun and founding partner Xu Guochang for technical assistance. When asked about Zhaojun’s availability, Qian stated that he was “not available yet.”Users and investors eagerly await updates and clarity from Multichain’s leadership team. However, the team’s lack of communication extends across various forms of social media. In group Telegram messages with the Multichain team, there have been no responses from Zhaojun, and direct messages through the same app have gone unanswered as well. This silence has left the community members puzzled, with little information to rely on.$MULTI price plummetsMeanwhile, the price of Multichain’s native token, $MULTI, has continued to decline. It currently stands at $4.37, representing a 20% decrease over the past 24 hours. The lack of communication and uncertainty surrounding the project have likely contributed to this downward trend in token price. Over the course of the past seven days, the token has decreased in price by 45%.In response to the situation, layer 1 blockchain project Conflux Network has taken precautionary measures by suspending Multichain’s co-mint privileges. This move prevents Multichain from minting tokens on the Conflux blockchain. The Conflux Network has also assured users that it will work with them in case any losses arise due to the ongoing issues.Flight to safetyOther projects and individuals have also reacted to the silence from Multichain’s team. Hong Kong-based HashKey Group, a crypto investment firm, has transferred $250,000 to crypto exchange Gate.io as a precautionary measure. Tron founder Justin Sun has withdrawn 470,000 of the $USDD stablecoin from the Multichain protocol. These actions reflect a growing concern among stakeholders, representing their efforts to mitigate potential risks associated with the uncertainty surrounding Multichain.Furthermore, the Fantom Foundation has withdrawn $2.4 million in liquidity of the protocol’s native $MULTI tokens from the decentralized exchange SushiSwap. It later tweeted out an update stating that the Fantom-Multichain bridge was operating as normal. These withdrawals signal a loss of confidence in Multichain and its native token, as stakeholders seek to protect their investments.As the silence persists, users and investors remain anxious for updates and clarifications from Multichain’s leadership team. The lack of communication and the circulating rumors have cast a shadow of uncertainty over the project, leaving stakeholders in a state of limbo.

Upbit Operator Dunamu Assists Indebted Youths in Rebuilding Credit ScoresDunamu, the operator of South Korean cryptocurrency exchange Upbit, has announced an initiative aimed at helping indebted youths rebuild their credit scores. The company will accept applications from July 19 through August 20. Eligible individuals must be residents of Seoul, Gyeonggi-do, or Incheon, aged between 19 and 39, and have successfully completed debt workout arrangements.Photo by Towfiqu barbhuiya on UnsplashGiving backThe project, called Dunamu Next Dream, is part of the company’s efforts to give back to the community by using revenue generated from Luna Classic (LUNC) transaction fees. In September of last year, Dunamu committed to allocating the LUNC transaction fee profits of 239.13025970 BTC to investor protection. After consulting with an external advisory committee, the exchange operator decided to donate around 3 billion KRW ($2.3 million) to public organizations and utilize the remaining funds to provide financial and credit support.To implement the Dunamu Next Dream project, Dunamu entered into a memorandum of understanding (MOU) with the Credit Counseling and Recovery Service (CCRS) and the Social Solidarity Bank (SSB) in April.Two componentsThe project consists of two main components: financial consulting and emergency loans. The initial focus will be on financial consulting, which includes support for living expenses. The aim is to assist indebted youths in developing healthier financial habits. Financial experts will provide six sessions of financial consulting, addressing their recurring indebtedness and fostering financial independence. Additionally, each individual will be granted a living expense of 1.2 million KRW ($950) to ensure they can meet timely interest payments.Dunamu will collaborate with the CCRS and the SSB to conduct a comprehensive review of applicants and select 150 deserving beneficiaries. The selection process will involve thorough evaluation through paper screening and interviews, allowing applicants to demonstrate their dedication and financial responsibility.The second component of the project, emergency lending, will launch in September. It aims to provide interest-free loans of up to 2.5 million KRW to individuals facing immediate needs, such as medical fees.Dunamu CEO Lee Sirgoo highlighted the importance of this project, emphasizing the challenges faced by young people who are the future leaders of society. The economic struggles they encounter can have significant repercussions for society as a whole. Accumulating debts has made it difficult for young individuals to achieve financial stability and advance their careers. Lee stressed the need for public awareness regarding this issue, as it is crucial for young people to establish themselves promptly within society.