Indian Web3 industry body campaigned for ‘level playing field’

Henan Province Establishes Metaverse FundAn administrative body within China’s Henan Province has established a 150 million yuan ($21.7 million) private equity investment fund which will be centered on financing metaverse-related projects.In a social media post on Thursday, the Assets Supervision and Administration Commission of Henan, a state-owned body, said that the fund had been created last month. The objective of the fund is to promote the development of the virtual reality and metaverse sectors. Specifically, the agency wants to bring about the development of “internationally competitive digital industrial clusters.”Photo by Jéan Béller on UnsplashA metaverse strategyLast year, Henan province administrators released a plan, setting out the objective of achieving a local metaverse industry reaching a level of 30 billion yuan by 2025. The plan was titled “Henan’s metaverse industry development plan for the years 2022 to 2025.” Its authors set out the objective of creating an industrial metaverse, an energy metaverse, an education metaverse and a virtual human metaverse.Henan is one of a number of regions vying to capture the upside in terms of the promise of the development of innovation relative to the metaverse. Earlier in 2022 local government in Shanghai set out to establish an industry fund of 10 billion yuan (approximately $1.4 billion) in assets, focused purely upon metaverse-centric development and innovation.Earlier this year, a delegate attending one of the city’s most influential yearly political meetings called for efforts to be made to provide for adequate regulation to enable further metaverse development and effective supervision of the space.The Beijing-based and state-backed China Computer Industry Association (CCIA) also took an interest last year, forming a metaverse committee to draft industry standards. It too planned to establish a 1 billion yuan fund, while aspiring to help other regional authorities establish a blueprint to progress the industry.Not to be outdone, Hubei province’s Wuhan and Anhui administrative areas made a pledge to boost metaverse development over the course of the next five years. Within the Wuhan administrative area, city officials are said to be aiming to integrate the metaverse, cloud computing and blockchain into the conventional, real economy.Opposing viewsIt’s curious to note that when it comes to decentralized blockchain and cryptocurrency, China has been vehemently opposed to their development within its borders. In September 2021, the country banned cryptocurrency transactions. Prior to that, it had implemented a ban on cryptocurrency mining activity, forcing the large miners that had long since established there to move overseas.It’s difficult to see how it can be positive relative to the metaverse when a metaverse depends on the use of blockchain technology. To confuse matters further, over the course of the past six months, it seems to have given a mandate to the autonomous territory of Hong Kong to open its doors in facilitating the crypto and blockchain sector in total contrast to the stance taken within mainland China.Recently compiled industry and market research suggests that the metaverse industry in China is expected to grow by 39.5% in 2023, with the space having experienced significant growth in the country over the course of Q3 and Q4, 2022.

Laos targets crypto operators’ unpaid feesIn a bid to enhance state revenues, Laos has turned its focus to the cryptocurrency sector, revealing that operators in the country owe a total of $20 million in fees. The announcement, reported on Thursday by Chinese state news agency Xinhua News, references information from the Lao People’s Army News.Photo by Alessio Roversi on UnsplashLoss-making mining activityLaos had previously granted authorization to 15 blockchain companies to engage in crypto mining or operate as exchanges as part of a strategy to diversify government income sources. However, Prime Minister Sonexay Siphandone disclosed that two of these companies showed no progress in their operations, while others lagged behind in meeting their financial obligations to the state.It emerged in August that the national electricity supplier, Electricité du Laos, had decided to suspend the supply of energy to crypto miners amid a perfect storm of challenges. Laos has ample hydro electric resources and is a net exporter of electricity. However, a drought this year has challenged it to honor contracts for supply of electricity to the Electricity Generating Authority of Thailand.To deal with this issue, power supply to Laotian crypto miners was suspended. To compound matters, many mining operators have been struggling financially and were unable to pay their bills.Debt reliefSiphandone mentioned that since the government initially set the tax obligations, the overall value of cryptocurrencies has experienced a 50% decline. Consequently, Laos has decided to alleviate the burden on crypto companies by reducing the outstanding balance by an equivalent 50%.Following this decision, the affected companies have commenced the settlement of their fees, and it is anticipated that all outstanding amounts will be fully resolved by the year’s end, according to the country’s Prime Minister. However, he issued a cautionary note, stating that companies failing to make satisfactory progress would face consequences, including the suspension of their operations, imposition of fines or even the revocation of their licenses.Digital transformationIn May, Laos outlined key aspects of its digital transformation strategy, emphasizing the use of digital technology to generate new fiscal revenue, strengthen foreign exchange reserves, control inflation, and promote sustainable economic growth. The move to reduce crypto companies’ tax burdens amid market volatility underscores Laos’ adaptability to the challenges presented by the dynamic cryptocurrency landscape.As part of its digital transformation strategy, the Laotian government signed a cooperation agreement with Singapore’s MetaBank. Partnering with another overseas entity, the country has also relied upon the expertise of Japanese fintech developer Soramitsu with regard to a central bank digital currency (CBDC). Soramitsu has played a pivotal role in enabling the issuance of Laos’ Digital Lao Kip.Early last year, the landlocked Southeast Asian country authorized trading licenses for two crypto platforms. These included Lao Digital Assets Exchange (LDX), a joint venture between Phongsupthavy Group and AIF Group, and Bitqik, a subsidiary company of Simuong Group.

Midas Investments Founder Launches Locus FinanceIakov Levin, the founder of the recently failed Dubai-headquartered custodial crypto investment platform Midas Investments, has unveiled his latest project, Locus Finance, a DeFi platform.Photo by Shubham’s Web3 on UnsplashStarting overThat’s according to a recent report published by The Block. Locus Finance’s main focus lies in providing connectivity with high-yield tokenized vaults. In its initial stages, the company will introduce three yield-generating products, centered around Ethereum staking, DeFi expansion, and Arbitrum trading.Levin believes that investors are not interested in the intricacies of blockchains, protocols, or daily portfolio management. This is where vaults play a crucial role, catering to the retail yield market and generating profits for retail investors. In a statement Levin said:“Investors don’t want to worry about blockchains, protocols, transaction costs, and daily portfolio management. They need specific exposure in a set-and-forget style. Vaults represent a unique approach necessary for maturing the retail yield market, allowing for optimal wealth generation for retail investors.”With Locus Finance, Levin aims to learn from past experiences and provide a platform that meets the demands of retail investors seeking a more simplified and profitable DeFi experience. The company’s approach centers around yield generation and a seamless user experience, allowing users to focus on their investments without being bogged down by complex technicalities.Midas downfallMidas Investments, established in 2018, had seen significant success as a custodial crypto investment platform which offered yields on a range of digital assets. It managed assets worth over $250 million at its peak in 2021. However, the volatile market conditions in 2022 led to losses exceeding $50 million, forcing the company to close its doors in December 2022.The loss incurred accounted for 20% of the $250 million assets under management (AUM). The platform’s demise followed the collapse of prominent projects like Terra, FTX, and Celsius earlier in 2022. Those collapses prompted Midas Investments users to withdraw over 60% of their assets. That run on the platform rendered its fixed yield model unsustainable.Midas faced total liabilities of $115 million in Bitcoin, ETH, and stablecoins, with assets valued at $51.7 million. At the time of the platform’s collapse, Levin expressed his optimism about future plans. He disclosed plans to introduce an offering that would feature new investment strategies. Fast forward seven months and it appears that those plans have taken shape in the form of this newly-launched Locus Finance platform.However, Locus Finance’s success will be closely monitored in light of the challenges faced by its predecessor. A former Midas Investments customer took to Reddit three months ago to warn people to stay away from the new platform once launched.At that time, Midas Investments management had advised customers of its intention to start over via Lotus Finance. “Users lost tons of money and Midas got away with the bags. . . . I’d recommend staying as far away from them as possible,” the former customer warned.