Taiwan not rushing into CBDC issuance following prototype build

BitMEX Returns to Derivatives Arena with Prediction MarketBitMEX, a name synonymous with the early days of crypto derivatives, has made a return to its core focus with the launch of a prediction market.Through this new product, the company aims to captivate traders by offering them the opportunity to wager on real-world events, effectively extending the boundaries of crypto derivatives trading.Photo by Amjith S on UnsplashBetting on the outcome of real-world eventsThis shift in direction is being overseen by Stephan Lutz who took the helm as CEO and group CFO in 2021.In a blog post announcing the product launch on Tuesday, the firm expressed its vision for the prediction market, asserting that it would introduce an entirely new dimension to crypto derivatives trading.The product is designed to diversify traders’ portfolios and yield returns based on predicting the outcomes of real-world occurrences, an offering that the company feels holds significant promise. Especially in bear markets characterized by subdued volatility, the prediction market could serve as a valuable instrument for traders seeking to enhance their strategies.Novel initial wagersBitMEX’s inaugural move into the prediction market sees the firm offer an array of contracts for traders to explore. Among those initial offerings are contracts enabling wagers on various outcomes, such as the percentage recovery rate of FTX’s bankruptcy claims and the likelihood of the US Securities and Exchange Commission (SEC) approving a Bitcoin exchange-traded fund (ETF) by October 17. These contracts underscore BitMEX’s intent in covering a wide spectrum of topics, with the firm promising to introduce more options in the near future.The prediction market holds the potential to revolutionize the way traders engage with real-world events, introducing a novel form of participation that transcends traditional trading boundaries. This launch has significant potential for BitMEX as it endeavors to reclaim its position in the competitive crypto derivatives market.Change of strategyUnder the stewardship of former CEO Alexander Höptner, BitMEX embarked on a diversification strategy termed “beyond derivatives,” delving into areas like spot trading and exploring new business avenues. However, the departure of Höptner in October ushered in a change in direction for the firm. The introduction of the prediction market now symbolizes BitMEX’s return to its foundational business model, with a renewed focus on derivatives.In May, the Seychelles-headquartered firm introduced perpetual contracts relative to SUI and PEPE tokens. Later that month, it launched a dedicated virtual asset service to Hong Kong-based customers. Hong Kong was its original center of operations when the company was first formed. It has since moved those operations to Singapore while maintaining its corporate presence in the Seychelles.BitMEX’s fresh foray into the derivatives space not only signifies a return to its roots but also presents traders with a means to trade relative to real-world events. By offering an eclectic range of contracts, the platform seeks to attract traders who crave more than conventional crypto trading. This strategic move could serve as a catalyst for BitMEX as it strives to regain its foothold in the competitive crypto sector.

Phoenix Group adjusts public trading launch dateWhile experiencing a considerable over-subscription during its pre-market sale on Nov. 21, Dubai-headquartered crypto mining firm Phoenix Group has had to announce a slight delay to its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).Photo by David Rodrigo on UnsplashAccounting for the UAE holiday scheduleIn an announcement published on Tuesday, Phoenix Group revealed that it would list its shares on Dec. 5 instead of the initially planned Dec. 4. The adjustment is attributed to the public holidays declared for the United Arab Emirates (UAE) National Day, celebrated on Dec. 2. The day marks the formation of the UAE, and the Ministry of Human Resources and Emiratisation has designated Dec. 2, 3 and 4 as public holidays for the private sector.“To honor this occasion and ensure comprehensive participation in the IPO, Phoenix Group PLC has rescheduled its listing date to December 5th, 2023,” the announcement states.IPO oversubscriptionAs advised by the company earlier this month, Phoenix Group achieved a successful closure of its IPO on Nov. 18, experiencing an over-subscription of 33 times the available share offering. The offering of 907,323,529 shares witnessed overwhelming demand, with retail investors oversubscribing 180 times and professional investors contributing to a 22-fold over-subscription.Discussions regarding the IPO launch in the UAE have been underway since at least July of this year, although public knowledge of the company’s intentions only became known in recent weeks.Speaking about the objective of the recent public listing, the company’s co-founders, Bijan Alizadeh and Munaf Ali, wrote:“Our aim is to be able to help create a more resilient, inclusive and diversified global blockchain economy, and this IPO is just the first step towards achieving that goal.”725MW mining capacityThe UAE-based mining operator is in the process of developing one of the largest mining facilities in the Middle East. Founded in 2016, the firm now manages 725MW of mining capacity globally, with facilities in the U.S., Canada, Europe and the Middle East.In August, it emerged that Phoenix is a key stakeholder in the development of a $300 million 150MW mining farm project which will be located at the Green Data City in the Omani capital, Muscat.Abu Dhabi-based conglomerate International Holding Company (IHC) acquired a ten percent stake in Phoenix in October. Co-founder Bijan Alizadeh is also a co-founder of M2, an Abu Dhabi-based cryptocurrency exchange that recently received a Multilateral Trading Facility and custodian license from the Abu Dhabi Global Market (ADGM).IPO activityComing off the back of a bear market, IPO activity has been scarce within the crypto space recently. That said, it emerged recently that South Korean cryptocurrency exchange Bithumb is working towards an IPO which it hopes to complete in the second half of 2025. Meanwhile, Ripple Labs has delayed its IPO plans due to regulatory challenges the company is currently dealing with in the U.S. Earlier this month, it emerged that USDC stablecoin issuer, Circle, is looking to launch an IPO in 2024.As Phoenix Group readies itself for public trading, the adjusted launch date aligns with the company’s strategy to maximize participation and capitalize on the UAE’s crypto-friendly environment.

Japan’s FSA Proposes Tax Exemption for Unrealized Crypto GainsThe Financial Services Agency (FSA) of Japan has taken the step of putting forward amendments that provide a notable tax exemption for unrealized gains on cryptocurrency holdings.Photo by Erik Eastman on UnsplashFSA proposalThe move is significant in that it spares domestic companies from the standard 30% corporate tax rate typically imposed on digital assets up until now. According to reports in local media, that proposal was detailed in a comprehensive 16-page document outlining various regulatory modifications.The most pivotal change within this document is the exemption of domestic companies from the annual “unrealized gains” tax on cryptocurrencies. Unlike some countries that only tax crypto assets when they are converted into fiat currency, Japan currently enforces an annual tax on these digital assets.2023 tax reform agendaThe proposed amendment has garnered support from the Ministry of Economy, Trade and Industry, indicating its potential passage. These discussions are part of Japan’s broader tax reform agenda for 2023, suggestive of the Asian nation’s interest in fostering a favorable environment for the blockchain and cryptocurrency industries.It is important to note that this tax exemption applies exclusively to companies that issue their own tokens and does not extend to entities solely involved in investing in other digital currencies. Additionally, individual crypto investors will still be subject to a maximum income tax rate of 55% on earnings exceeding JPY 200,000 ($1,355) related to cryptocurrency, categorized as “miscellaneous income.”The exemption is structured in a way that excludes these digital coins when assessing a company’s asset market value, provided specific conditions are met. Presently, Japanese law mandates that companies holding crypto assets must pay taxes on unrealized gains at the end of each tax period.To qualify for the tax exemption, a company must meet specific criteria outlined by the tax authority. Firstly, the company must be the issuer of the cryptocurrency in question. Additionally, it must retain continuous ownership of the crypto asset after issuance, while the asset itself remains subject to transfer restrictions.Blockchain ambitionsThis development aligns with Japan’s broader ambition to nurture and expand its blockchain and cryptocurrency sectors. Prime Minister Fumio Kishida recently articulated a vision for a “new form of capitalism,” emphasizing the importance of fostering innovation and growth in emerging industries, inclusive of the Web3 sector. As Japan moves forward with these changes, it signals its interest in creating a conducive environment for blockchain and crypto ventures to thrive.Over time Japan has been iteratively building a framework in respect of digital assets. In 2017 the country recognized Bitcoin as a legitimate property in accordance with the Payment Services Act (PSA). That same year, the Tax Agency classified crypto earnings as miscellaneous income. In 2020, crypto assets were included in Japan’s fund settlement law. Around the same time frame, the FSA brought in the requirement for crypto exchanges to register and obtain a license.These amendments also form part of a series of changes that the Japan Blockchain Association (JBA), an industry advocacy group, has been canvassing for. The proposed changes reflect a pragmatic approach to taxation, doing away with a paper profits taxation treatment in favor of a more progressive approach.