NH Bank Establishes Consortium to Build Security Token Ecosystem

Mirae Asset Securities, South Korea’s largest asset management firm, has begun suspending trading for bitcoin ETFs, according to industry sources on Friday. This comes after an announcement made by the Financial Services Commission (FSC) stating that brokering spot bitcoin ETFs may be considered a violation of the government’s stance on virtual assets and the Financial Investment Services and Capital Markets Act.Photo by Dmytro Demidko on UnsplashTaking preemptive measuresThe asset manager has blocked new purchases of spot bitcoin ETFs listed in Canada and Germany starting yesterday and is considering suspending trading of bitcoin futures ETFs that have been listed in overseas markets since 2021. This includes the Proshares Bitcoin Strategy ETF, Valkyrie Bitcoin Strategy ETF, Invesco Galaxy Bitcoin Strategy ETF and VanEck Bitcoin Strategy ETF. As Korean financial authorities are putting the brakes on domestic investments in the recently approved spot bitcoin ETF by the U.S. Securities Exchange Commission (SEC), it is believed that Mirae Asset Securities is putting a preemptive halt to trading in other bitcoin ETFs. Spot vs futuresSpot bitcoin ETFs differ from futures ETFs in that they track the price of Bitcoin by actually holding the cryptocurrency, while the latter tracks its price through futures contracts. South Korean securities firms have been brokering futures ETFs listed in overseas market for a while now.

Singaporean fintech Alchemy Pay, specializing in crypto payments, has inked a partnership with Worldpay, a well-known payment processor based in the United Kingdom.Photo by Markus Winkler on Unsplash More seamless crypto transactionsThe collaboration, announced on Tuesday, enables Alchemy Pay users to leverage Worldpay’s extensive Visa and Mastercard payment rails, facilitating more seamless cryptocurrency transactions via credit and debit cards. In addition, the parties have agreed that at some stage in the future, Worldpay’s payment channels will add support for Alchemy Pay’s NFT Checkout.Robert McCracken, the Ecosystem Lead at Alchemy, expressed the strategic advantage of the partnership, stating:“Alchemy Pay is now better positioned to assist our business partners and users in seamless cryptocurrency transactions worldwide.”This move aligns with Alchemy Pay’s broader mission of promoting global adoption of digital assets by connecting fiat to the Web3 economy.Nabil Manji, Head of Crypto and Web3 at Worldpay, emphasized the alignment of goals between the two entities. He stated: “Alchemy Pay’s mission to promote global adoption of digital assets by connecting fiat to the Web3 economy is aligned with Worldpay’s role in bridging the gap between traditional and digital finance.”Founded in 2018, Alchemy has established itself as a fiat-to-crypto onboard processor, supporting over 50 fiat currencies through platforms like Google Pay, Apple Pay and various mobile wallets. Licensing driveThe announcement follows Alchemy’s recent acquisition of a money service license in the U.S. state of Iowa on Nov. 23, building on its approval for a similar license in Arkansas in September. The firm has indicated that not only does it have other state licensing applications in the works but that it expects to be in a position to announce further approvals over the coming weeks.The Singaporean company has also been paying attention to licensing requirements elsewhere. In February Alchemy, alongside fintech firm PT Berkah Digital, jointly obtained licensing from the Central Bank of Indonesia. Pursuing collaborationsAlchemy Pay has had a steady stream of announcements relating to industry partnerships in 2023. In July it inked a deal with Checkout.com, allowing the firm to integrate Checkout.com’s Visa and Mastercard channels into its on and off-ramps.In recent weeks, the company introduced new payment options, linking in with Single Euro Payments Area (SEPA) Instant in Europe and the Faster Payments platform in the United Kingdom. Alchemy Pay also struck up a deal with self-custody crypto wallet Trust Wallet. It meant that Trust Wallet’s 70 million users could execute crypto transactions directly with fiat payments.Back in May, the payments gateway announced the provision of a rupee-denominated on-ramp via India’s UPI real-time payments system. Worldpay integrationsWorldpay, owned by Fidelity National Information Services (FIS), has been actively integrating with Web3 technologies. In July 2021, the firm partnered with OKCoin to provide infrastructure for the exchange’s fiat-to-crypto onboarding.Additionally, in October 2022, the digital asset custody platform Fireblocks launched a new payment engine for merchants, with Worldpay serving as one of the pilot partners alongside Checkout.com.

LDP Working Group Proposes Web3 Industry Plan to Japan’s Prime MinisterJapan’s ruling Liberal Democratic Party (LDP) announced that its Working Group for Digital Society Promotion presented a proposal related to the Web3 industry to Prime Minister Kishida Fumio on Tuesday. The information was made public on the party’s website and later reported by the Korean crypto media outlet Tokenpost.Photo by Jezael Melgoza on UnsplashImproved crypto regulationsThe comprehensive 35-page study favorably reviewed the enhanced cryptocurrency regulations implemented by the Japanese government following the 2014 Mt. Gox breach and the 2018 Coincheck hack. The study credits these improved regulations for nurturing Japan’s robust Web3 ecosystem, which received global attention amidst the recent crypto winter. This term refers to a period marked by a sustained downturn in cryptocurrency values.Japanese crypto exchanges demonstrated prudence by refraining from listing most of the problematic tokens on their platforms, thereby averting panic within the market. This cautious approach was supported by Japanese law, which mandates crypto exchanges to securely store customers’ staked tokens separately. As a result, they were shielded from the repercussions of the FTX bankruptcy, which arose due to a liquidity crisis of FTT, the global crypto exchange’s native token.Significance of security tokensThe paper optimistically projected that Japan could lead the way in passing through the crypto winter ahead of other countries, citing the nation’s track record of overcoming numerous challenges in the industry. The authors highlighted the exit of speculative projects from the sector, balanced by the rise and continuous growth of new blockchain-based businesses. The report underscored the significance of tradable security tokens, which leverage blockchain technology to represent assets or rights.The adaptable nature of blockchain technology was emphasized, particularly its potential to incentivize social activities like volunteering. This versatility enables the broader public to actively participate in monitoring and addressing issues related to deteriorating infrastructure, thereby reducing associated management costs across society.Crypto taxationThe proposal also addressed the issue of crypto taxation, arguing for enhancements to the token investment environment to bolster blockchain-driven businesses. Currently, Japan taxes tokens held by corporations, discouraging domestic investment and stifling the growth of the Japanese Web3 ecosystem. To rectify this, the paper suggested exempting tokens issued by a third party from taxation if they are not intended for short-term trading.Moreover, the authors addressed the high taxation rates facing retail investors in Japan, which can reach up to 55% on income from crypto trading. This stricter tax regime compared to other countries has led many taxpayers to seek investment opportunities abroad. The authors suggested improvements to create a more investor-friendly environment.Token listing procedureThe proposal also included recommendations concerning token listings. In Japan, crypto exchanges are currently obligated to undergo a preliminary review conducted by the Japan Virtual and Crypto Assets Exchange Association (JVCEA) before listing tokens. It was suggested that the review process should be further refined to enhance efficiency.Yen stablecoinsThe authors emphasized the importance of introducing and circulating yen stablecoins to foster the growth of the Japanese Web3 industry, necessitating the development of a sustainable business model for these stablecoins.Content & Web3Furthermore, the proposal underscored the need for clear guidelines to discourage gambling behaviors and promote responsible usage within the NFT space. It advocated for the establishment of an industry organization bridging the content industry and the Web3 industry, which would facilitate collaboration and collective efforts towards a robust NFT ecosystem in Japan. Measures to protect Japanese content and data from unauthorized monetization by foreign entities were also recommended.According to an industry official who spoke with Tokenpost, Japan’s extensive preparations for the Web3 initiative have instilled confidence in the sector. The official highlighted that the country is currently exploring ways to establish connections between these new projects and existing industries, with the goal of maximizing their economic potential and generating fruitful outcomes.