KuCoin Dismisses Notion of a Layoff Plan

Coin Oasis Founder Thinks UAE Set Up For Crypto SuccessAs the dust settles on 2023's Dubai Fintech Summit, which took place last week, one takeaway offered by the Co-Founder of blockchain ecosystem firm Crypto Oasis is that the United Arab Emirates (UAE) has set itself up for success where crypto business is concerned.In speaking with crypto publication CoinTelegraph on the fringes of the Dubai Fintech Summit, Coin Oasis Co-Founder and Managing Partner Saqr Ereiqat suggested that the regulatory infrastructure that the UAE has put in place provides an ideal foundation upon which crypto companies can develop and prosper.Photo by Mo Ismail on PexelsRegulatory infrastructureEreiqat pointed to some key fundamentals that crypto entrepreneurs and start-up founders should look at when deciding on the location that will best meet their needs and help to optimize their route to market and ultimate success. This includes the regulatory infrastructure.The UAE authorities and regulators at a national level, together with their colleagues within the regulatory agencies in the Emirates of Dubai and Abu Dhabi, have been doing some heavy lifting in this regard over recent months.They’ve all been working on establishing a workable regulatory framework, and as part of that, a licensing process. In the case of Dubai, its Virtual Assets Regulatory Authority (VARA) has started to issue preliminary or Minimum Viable Product (MVP) license approvals that enable crypto startups to get started, while providing them with a pathway towards obtaining Full Market Product (FMP) licensing at a later stage.Talent poolThe other key requirements that Ereiqat set out were digital infrastructure alongside an ability to attract and provide a pool of talent relative to the crypto assets space. In respect of these key considerations, Ereiqat believes that the UAE hits the target in each case.“The UAE’s regulatory framework is more streamlined and business-friendly compared to the complex and fragmented regulatory environment in the US,” he told the crypto media firm.To enhance these fundamentals, Ereiqat also alluded to a depth of capital that could potentially find its way into UAE-based crypto businesses, easing these start-ups’ efforts in executing on funding rounds as they look to achieve growth.Ereiqat maintains that the interest in the region is already evident, citing a data-point that suggests there are 1,800 Web3-centric businesses already operating in the region, with more than 8,000 people working for those start-up businesses. Speaking to that reality further, he said:“The Dubai FinTech Summit was a significant event that brought together stakeholders from the fintech industry […] The presence of crypto and Web3 leaders and projects at the event is an important indicator of the growing interest and adoption of these technologies in the region.”This enthusiasm and belief in the existence of the right Web3 business environment in the UAE was echoed at that event by both Coinbase Founder and CEO Brian Armstrong and Ripple Founder and CEO Brad Garlinghouse. Both industry figures featured as keynote speakers at the event. Armstrong alluded to the potential of Coinbase establishing a base in Abu Dhabi while Garlinghouse announced the opening of a Ripple office in Dubai.

Japanese Games Publisher Suspends Metaverse DownloadsJapanese video game publisher Bandai Namco has taken the step of temporarily suspending downloads of its recently unveiled Gundam Metaverse, raising questions and concerns about a potential major leak within the project.In an official announcement on Thursday (local time), the company expressed regret over the temporary suspension of client file downloads, stating that the firm is sorry that downloading the client files for the Gundam Metaverse has been temporarily suspended.Photo by Jason Ng on UnsplashRecent game releaseGundam Metaverse was launched with the collaborative intention of Bandai Namco and Gundam fans, aimed at creating a community that contributes to future Gundam projects. The sudden halt to downloads came as a surprise, given that the game was released just this month.The Gundam Metaverse was initially slated to be open for a limited time in Japan and the US. It featured an “Early Access” phase for a select number of users, which commenced on October 6, followed by the “General Access” phase available to the public starting on October 12.During this time, visitors had the opportunity to immerse themselves in a 3D world inspired by the iconic Gundam anime. The virtual world included a store offering six distinct Gundam Plastic models, commonly known as Gunpla, and a space for digital live performances by artists affiliated with the Gundam series.Suspected design file flawsBandai Namco has remained tight-lipped about the reasons behind the decision to cease downloads, leaving fans and observers speculating about potential issues with the project. Speculation was further fueled by rumors that circulated online, suggesting that the game’s downloads contained unencrypted design files related to specific models from “Gundam SEED Freedom.”These rumors began circulating as early as mid-September when a Weibo user claimed to have shared images of the “Freedom Gundam” and “Justice Gundam” designs, scheduled to make their debut in “Gundam SEED Freedom.” This upcoming animated film is produced by Bandai Namco Filmworks and directed by Mitsuo Fukuda, with a release date set for January 26 next year, marking the 20th anniversary of the Gundam SEED franchise.Given that Gunpla models were set to be released in tandem with the film’s screening in January, the alleged leak of design files would be a substantial concern for Bandai Namco.Hong Kong news outlet HK01 reported:“There were a large number of 3D model CAD [computer-aided design] files of Gundam models hidden inside [a download], including 2024-only 3D model CAD files.”Metaverse visionBandai Namco set out its metaverse vision in March 2022 when it provided initial details on what it termed back then as its “Gundam Metaverse Project.” The project involved an outlay of $130 million for the company to get it off the ground.At the time, Bandai Namco saw its entry into the world of the metaverse as an opportunity for it to be “connected with fans,” becoming a hub so that those connections could run more deeply and broadly and result in greater enjoyment for IP fans, partners, group employees, and society worldwide.Bandai Namco’s decision to halt downloads remains a topic of intrigue that has left Gundam fans and industry observers eagerly awaiting further developments and clarifications from the gaming giant.

Japan’s financial sector is poised for a significant change as the Financial Services Agency (FSA) unveils new tax reform guidelines for fiscal year 2025. This marks the first time virtual currency transactions will be addressed within Japan's tax framework, signaling a pivotal shift in the country’s stance on cryptocurrency taxation. Current taxation issuesPresently, Japan imposes a maximum tax rate of up to 55% on cryptocurrency revenues, a figure that has been criticized for deterring investment in the growing crypto market. Crypto profits are taxed as miscellaneous income, with the highest rate applying to earnings over 200,000 Japanese yen. Corporate holders of crypto assets face a flat 30% tax on their holdings, irrespective of their income or profits. These high tax rates contribute to Japan's relatively low cryptocurrency adoption rate, placing the country 18th in the 2023 Global Crypto Adoption Index by Chainalysis.Photo by Tobias Wilden on UnsplashIn response to rising demands from both investors and businesses, there is strong advocacy for a more favorable tax structure. The new proposal suggests reducing the crypto tax rate to 20%, aligning it more closely with the tax rates applied to traditional financial assets like stocks. This reform is viewed as essential for rejuvenating the industry, especially given Japan’s increasing engagement with cryptocurrencies. Japan's interest in cryptocurrencies extends beyond individual investors. Major institutions are making notable advancements in the field. Ripple, a key player in the crypto space, has teamed up with over 50 Japanese financial institutions to develop a new payment infrastructure leveraging blockchain technology. Meanwhile, private companies like Metaplanet are also expanding their crypto investments, recently securing a loan of 1 billion Japanese yen ($6.8 million) at an annual percentage rate of 0.1%.  Impending tax changesThe FSA's decision to include crypto assets in the 2025 tax reform proposal represents a significant departure from previous reluctance to formally recognize the industry. The proposed changes would expand loss offset provisions, potentially aligning crypto assets with the tax treatment of public bonds and listed stocks. This adjustment could offer relief to investors by allowing them to offset losses against their crypto gains. Despite these promising developments, the implementation of these proposals remains uncertain. A previous proposal to reduce the crypto tax burden has failed to produce policy changes. Nevertheless, the inclusion of crypto assets in the FSA’s reform agenda is a positive step toward a more supportive regulatory environment. Japan’s current high tax rates contrast sharply with other crypto-friendly regions in Asia. For instance, the United Arab Emirates (UAE) has become a major hub for crypto businesses by imposing no taxes on crypto profits. Similarly, countries like Hong Kong, Singapore, Thailand and Indonesia have attracted significant crypto activity due to their progressive regulations and lower tax rates. Conversely, India’s 30% flat tax on crypto has prompted many companies to relocate to more favorable jurisdictions such as Dubai. As Japan considers transitioning to a more crypto-friendly tax regime, there is cautious optimism about its potential impact on the industry. If successfully implemented, the proposed changes could boost adoption and growth, making Japan a more appealing location for crypto businesses and investors. The ultimate effect will depend on the government’s reception and execution of these proposals in the coming years. For now, the inclusion of crypto assets in the tax reform agenda marks a promising step toward a more balanced and supportive regulatory landscape for the cryptocurrency industry in Japan.