Hong Kong regulators consider opening up crypto ETFs to retail

Wemade joins hands with Dubai Chambers to expand Web3 and gaming endeavors in Middle EastSouth Korean blockchain gaming publisher Wemade has partnered with the Dubai Chambers to support each other’s objectives for making advancements in the Web3 and gaming sphere.Photo by Kent Tupas on UnsplashTheir commitments were exchanged when Wemade CEO Henry Chang met with Mohammad Ali Rashed Lootah, the President and CEO of the Dubai Chambers, during his trip to the United Arab Emirates this week for this year’s Abu Dhabi Finance Week and the Fortune Global Forum, according to industry sources on Tuesday (KST).The Dubai Chambers of the UAE is a non-profit public agency that plays a central role in creating an environment for businesses in Dubai to thrive, thus bolstering the business landscape. It is divided into three sectors — commerce, international and digital economy.A strategic allianceDuring the meeting, the Dubai Chambers pledged to support Wemade’s business expansion in the Middle East region by helping the company establish networks with local organizations and companies. It also vowed to facilitate active exchange between Wemade and the Dubai Chambers’ overseas offices in 27 countries. In turn, Wemade stated that it would strengthen its local business capabilities to contribute to the growth of Dubai’s gaming and Web3 industries.“Dubai is one of the most dynamic regions leading the next-generation gaming industry, and the role of the Dubai Chambers is crucial. Wemade will actively support Dubai’s gaming industry initiatives with the experience and technical expertise that we have accumulated over the years,” Chang said. Lootah also expressed his anticipation for the partnership, reaffirming Dubai’s commitment to fostering a tech-savvy ecosystem.Earlier this month, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai, announced a new vision to grow Dubai into one of the top ten cities for gaming in the world by creating 30,000 new jobs and increasing GDP by $1 billion by 2033.Strengthening tiesChang and Lootah’s meeting is the latest development in the budding business relationship between Wemade and the UAE. Previously, a delegation from the Dubai Chambers visited South Korea in September, during which it visited Wemade’s headquarters. Wemade also opened an office in Abu Dhabi earlier this year.

Bitcoin layer-2 project Elastos sees ELA token surgeSingaporean blockchain developer Elastos has unveiled its BeL2 layer-2 network set to run on top of the Bitcoin blockchain, eventually prompting a token price surge.50% increaseThe project aims to address challenges such as transaction volume limitations and the complexity of programmable contracts within the Bitcoin ecosystem. Despite the initial muted response from the crypto community after the late November announcement, Elastos’ native token, ELA, has experienced an extraordinary surge on Wednesday. Over the course of the past 24 hours, the token’s unit price has jumped from $2.06 to $3.09. That represents a 50% increase.Photo by Kanchanara on UnsplashBringing smart contracts to BitcoinOn Dec. 2, the project released its BeL2 whitepaper, describing it as “a transformative approach to enhancing Bitcoin’s functionality.” BeL2 has the potential to bring about significant advancements by leveraging SmartWeb technology to introduce staking solutions and incorporate zero-knowledge proof technology.A zk proof is a cryptographic method through which one party can prove to another party that a particular statement is true, all the while avoiding the leakage of any additional information aside from confirming the statement is true. Up until now, zk proofs have been largely the preserve of Ethereum-centric projects.Alongside zk proofs, BeL2 will utilize Bitcoin-powered Ethereum Virtual Machine (EVM) smart contracts. This approach is expected to expedite transactions within the network and introduce governance through a decentralized model.BeL2 roadmapThe roadmap for BeL2 includes a three-month development phase for a proof-of-concept, followed by an additional three months dedicated to the decentralization of relayers. These relayers, acting as third-party services facilitating communication and data transactions between different blockchain networks, play a crucial role in the overall implementation of BeL2.Elastos envisions BeL2 as a Layer 2 network built on Bitcoin, introducing sophisticated BTC transactions on its blockchain. Beyond staking, the network aims to provide direct yield and affordable transactions on native decentralized applications. The move marks a significant shift, allowing Bitcoin holders to stake their assets directly, unlocking potential value exceeding $700 billion.Looking ahead, Elastos plans to chart the decentralized finance (DeFi) course on BTC by enabling smart contract deployment and irreversible digital agreements between participants.As interest in Bitcoin continues to rise, driven by innovations like inscriptions and spot ETF discussions in the United States, Elastos’ BeL2 initiative is garnering greater attention, relative to the potential to usher in a new era of possibilities for the world’s most popular digital currency.The project was founded in 2017 by Rong Chen, a former senior software engineer at Microsoft. Taking to the X social media platform earlier this month, Chen wrote:“I don’t see any other paths to the final #Web3 destination except:(1) A #BTC merge mining blockchain, plus smart-contract sidechains as needed;(2) A #SmartWeb operating system (OS) to facilitate personal node to own data, plus personal-node to personal-node direct communication links;(3) Personal Cloud Compute (#PC2) Runtime sandbox, so individuals are on the same footing as big brothers;(4) Digital goods software-development-kits (embedded OS #SDKs), entrusting your data to nobody else but yourself, i.e., your own code to check access tickets/tokens before loading and rendering data.”The Elastos ecosystem employs three-layer consensus mechanisms: auxiliary proof-of-work, proof-of-integrity and bonded proof-of-stake. It’s hoped that the project can improve upon the original layer-2 solution for Bitcoin, the Lightning Network, which has had issues in terms of scalability and centralization risk.

Japan’s Cryptoasset Group Proposes Self-Regulatory Reforms for IEO SystemThe Japan Cryptoasset Business Association (JCBA) has revealed a preliminary draft advocating for reforms in self-regulation to bolster the soundness of the initial exchange offering (IEO) system. This draft has been submitted to the Japan Virtual and Crypto Assets Exchange Association (JVCEA).IEOs serve as a mechanism enabling various enterprises to accrue funds and broaden their user base by orchestrating token sales on cryptocurrency exchanges for Web3 projects. This fundraising method holds the potential to enhance trust as crypto exchanges, supervised by the Japanese Financial Services Agency, undertake evaluations of project feasibility and maintain ongoing oversight.Photo by Takashi Miyazaki on UnsplashPositive regulatory developmentsThe ameliorating regulatory landscape is also a positive development, highlighted by this year’s tax law amendment, which grants exemptions to enterprises’ self-issued tokens from year-end corporate taxation. In Japan, four IEOs have been conducted so far, with the inaugural IEO amassing over 900 million yen (approximately $6 million). The cumulative amount from the four IEOs has surpassed 4.4 billion yen. However, given that the IEO is a relatively nascent fundraising method, improvements in token price stability and operational modalities are required to ensure that businesses and users can engage with it confidently.Enhanced user protectionAgainst this backdrop, JCBA, an organization comprised of various enterprises involving virtual assets and Web3, has been discussing the direction of the IEO system from a corporate viewpoint since May of this year. Establishing price stabilization measures and selling restrictions within the Japanese IEO system will contribute to user protection by allowing investors to manage their assets under domestic regulations. JCBA stated that users will find domestic exchanges more secure in comparison to foreign ones.As this proposal represents an initial draft, deliberated and formulated only within the JCBA, the group intends to consult and assess the feasibility of the self-regulatory rules with each pertinent organization as necessary.Four key pointsThe document submitted by JCBA to JVCEA presented four key points concerning the IEO. Pertaining to pricing, it suggested the diversification of calculation methods customized to each project and the specification of price-related disclaimers. On liquidity, it posited that liquidity objectives should be established at the time of listing, and an environment conducive to securing liquidity should be developed. JCBA also pointed out the necessity of establishing rules for price stabilization measures at the time of listing. Finally, regarding selling restrictions, it was noted that both token issuers and exchanges should adhere to a minimum three-month lock-up period for tokens.