Hong Kong securities group proposes ICOs as growth opportunity

The launch of Hong Kong's inaugural spot crypto exchange-traded funds (ETFs) is expected to occur by mid-2024, according to one of Hong Kong’s leading crypto executives. Gary Tiu, the executive director and head of regulatory affairs at OSL, a licensed cryptocurrency exchange based in Hong Kong, made that assertion in discussion with The Hong Kong Economic Journal. Tiu provided the publication with insights into the accelerating pace of negotiations between cryptocurrency exchanges and fund companies in the region.Photo by Stella P on UnsplashUp to ten firms contemplating ETF launchOSL is actively engaged in discussions with multiple fund companies, with five to ten firms contemplating the introduction of spot crypto ETFs. Tiu revealed that certain firms have made notable progress, raising the possibility of the debut of these ETFs in Hong Kong by the middle of the year. Additionally, the OSL executive emphasized the significance of maintaining reasonable fees in collaborations between OSL and fund companies, given the limited presence of licensed crypto exchanges in the city – a total of two at present. This suggestion from Tiu aligns with similar recent soundings emanating from HashKey, another licensed crypto exchange in Hong Kong, which recently disclosed its ongoing discussions with asset managers exploring the potential launch of spot crypto ETFs. Livio Weng, the CEO of HashKey, indicated that approximately ten fund companies are considering the introduction of such ETFs in the city. VSFG’s ETF plansAligned with Tiu’s thoughts on the matter, according to a Bloomberg report last week, Venture Smart Financial Holdings Ltd (VSFG), a Hong Kong-based financial services firm, expressed plans to potentially launch a spot bitcoin ETF within the first quarter of this year. Bloomberg reported the company's goal of growing the ETF's assets under management to $500 million by the end of 2024. The regulatory landscape in Hong Kong is actively adapting to accommodate spot crypto ETFs, with the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) announcing in December that they have reviewed their existing policies. Two circulars were published, outlining the requirements for spot crypto ETFs, with the SFC stressing that transactions should be conducted through SFC-licensed crypto platforms or authorized financial institutions. Currently, Hong Kong has listed several futures-based crypto ETFs, including the Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF and CSOP Ether Futures ETF. Hong Kong venue for Bitcoin conferenceIn a related development, local lawmaker Johnny Ng revealed on social media on Monday that Hong Kong will host The Bitcoin Conference this year. Earlier this month Ng urged the local administration in Hong Kong to swiftly follow the United States' approval of spot bitcoin ETFs and position the city as a leading hub in the cryptocurrency space. With Hong Kong and Singapore vying for hub status in the Asian region relative to the digital assets space, the launch of ETF products would give the Chinese autonomous territory a competitive head start given that Singapore doesn’t appear to be close to accommodating crypto ETFs for the time being.

Bybit Leans on Innovative Tech by Launching AI-Powered Trading AssistantDubai-headquartered cryptocurrency exchange Bybit has introduced TradeGPT, an AI-powered educational tool aimed at changing the way in which traders interact with the cryptocurrency market.A ToolsGPT follow-upThe move follows on from the firm’s launch of ToolsGPT in June, an AI-based tool that aids platform users to generate technical analysis and takes a ChatGPT-like approach in providing responses to user queries. Vivien Fang, Head of Financial Products at Bybit, explained: “Our analysts and tech team created ToolsGPT to provide the financial education and mentorship that is sorely needed in our hyper-financialized world. Essentially, we built the tool that we all wished we had when we began our careers in financial engineering and trading.”Photo by Wance Paleri on UnsplashAI mentor and guideFor Bybit users, TradeGPT offers a multitude of benefits, including real-time market analysis, multilingual support, and personalized guidance. It functions as a mentor and guide, empowering users to comprehend market trends, formulate strategies, and select the most suitable investment products to achieve their financial goals.This offering addresses the limitations of traditional AI systems and provides real-time market data. TradeGPT leverages Bybit’s extensive market data, trading analytics, and technical analysis tools, making it a resource for traders navigating the complexities of the cryptocurrency landscape.Following industry trendBybit’s TradeGPT follows in the footsteps of Singapore-based platform Crypto.com, which unveiled its AI-enabled platform, Amy, in May. Amy leverages the technology of OpenAI’s ChatGPT to deliver real-time information about specific tokens, projects, price listings, and historical events to Crypto.com platform users.At the time Kris Marszalek, CEO of Crypto.com, highlighted the platform’s significance, stating: “Amy is the latest example of our incredible momentum.” The company added that it followed a series of notable product launches, including CFTC-regulated options trading, on-chain staking solutions, and the GEN 3.0 Crypto.com Exchange.Binance, the world’s largest cryptocurrency exchange by trading volume, introduced Binance Sensei in April. The company has integrated the AI-powered learning tool into Binance Academy and offers users of all skill levels an interactive chat window for guidance.As an increasing number of cryptocurrency companies launch AI-enabled platforms, the synergy between AI and the industry becomes more apparent. AI’s data processing capabilities could address scalability issues and expedite transaction processing for cryptocurrencies.Conversely, cryptocurrencies could incentivize research and development in the field of AI. Tokenized economies may reward contributors to AI projects, fostering collaboration and innovation. Furthermore, cryptocurrency-enabled decentralized networks could provide secure and transparent platforms for exchanging AI-generated insights without the need for intermediaries.Digital assets are developing in real-time alongside other technologies. The introduction of Bybit’s TradeGPT, alongside Crypto.com’s Amy and Binance’s Sensei, offers a step forward in harnessing the power of AI to empower cryptocurrency traders. As these AI-driven tools continue to evolve and gain traction, they’re likely to reshape how individuals and institutions engage with the cryptocurrency market.

Newly founded bankruptcy claim trading platform OPNX has provided further details about the entities backing the fledgling startup. Taking to Twitter on Friday, Open Exchange CEO Leslie Lamb outlined a number of venture capital backers, with a mixture of international and Asia-centric firms among them. Global backersLamb’s tweet via the firm’s official Twitter account, together with a similar announcement published to the firm’s website, outlined AppWorks, a leading Taiwanese venture capital firm and startup accelerator, as an investor in the company. Other Asian backers include Hong Kong-based crypto fund, Token Bay Capital and the Hong Kong-based arm of one of China’s largest banks, China Merchant Bank International.With the firm based in Dubai, Middle-Eastern interest is represented through the involvement of Saudi digital asset fund, Tuwaiq Limited. Otherwise, the company lists a number of other international backers, including US equity options exchange MIAX Group, DeFi-focused venture and trading firm Nascent, top tier global venture capital firm Susquehanna and the investment arm of market maker and early stage investor, DRW. Questionable founding teamOnly hours after the disclosure by Open Exchange, DRW reached out to CoinDesk to confirm that it is not an investor in the bankruptcy claims exchange. Nascent and Susquehanna also denied that they are involved. The companies are still being listed by OPNX as backers of the project on its website.The launch of OPNX has been mired in controversy from the outset as its founding team includes the founders of the former crypto hedge fund Three Arrows Capital (3AC) which failed spectacularly in 2022. Su Zhu and Kyle Davies, the founders of 3AC are now the founders behind OPNX. Before their involvement, OPNX was preceded by Seychelles-based crypto yield platform CoinFLEX. That business also failed during the 2022 crypto bear market. It entered into a restructuring process with the consent of the courts in the Seychelles. Emerging from it is OPNX with the 3AC duo of Zhu and Davies having gotten involved at that point. Industry push-backMany in the crypto space have been highly critical of the development of OPNX on the basis of the involvement of both Zhu and Davies. The duo are being blamed for the collapse of the crypto hedge fund due to mismanagement and the knock on effects the firm’s demise had on other entities within crypto. Many of the series of crypto lenders who failed at a later stage in 2022 had major exposure to the wayward hedge fund.There had been some speculation as to who was backing the new project. Earlier this month, BitMEX co-founder and former CEO Arthur Hayes claimed that the 3AC duo had received substantial funding from Bahrain’s sovereign wealth fund to establish the project. In February, Hayes suggested that the crypto bull market must be starting based on news of Zhu and Davies wanting to launch the OPNX platform.Crypto-focused venture capitalist Michael Arrington also spoke out around that time, stating on Twitter, that 3AC founders successfully raising capital for their latest venture was “the saddest bulls**t I’ve heard in a long time.”Upon its launch earlier this month, industry commentators quickly declared the project a flop citing a trading volume of $13.64 on its first day of trading. Five days in, OPNX made light of the situation, declaring a win on the basis that it had progressed to $12,398 in trading volume, representing a 90,000% increase in trading.Dubai’s Virtual Assets Regulatory Authority (VARA) issued an investor and marketplace alert on April 12 stating that while OPNX may be Dubai-based, it is not regulated by VARA and instead operates on an unregulated basis. It warned investors against using any unregulated crypto entity.