HSBC and Ant Group advance blockchain-based tokenized deposit system

Hong Kong Gives HKVAX Green Light for Virtual Asset TradingHong Kong’s financial landscape continues to develop, with the latest installment coming from a Securities and Futures Commission (SFC) decision to grant in-principle approval to Hong Kong Virtual Asset Exchange (HKVAX) to operate a virtual asset trading platform within the bounds of the region’s securities laws.The development, announced via a press release published to HKVAX’s website on Friday, follows the recent introduction of crypto retail trading by exchanges HashKey and OSL in Hong Kong.Photo by Dids on PexelsLicensed to extend service offeringIn a notable move, the SFC has green-lit HKVAX’s entry into the virtual asset trading arena. The approval-in-principle, announced on Friday, empowers HKVAX to conduct regulated activities of both Type 1 and Type 7. A Type 1 license permits the operation of a digital asset trading platform specializing in securities. Meanwhile, the Type 7 classification endows the company with the official capacity to deliver automated trading services to both retail users and institutional investors.Upon obtaining the final green light, the platform envisions providing an array of services, including over-the-counter (OTC) brokerage enabling seamless fiat-to-digital asset trading, an institutional-grade exchange platform, and a secure custody solution fortified by insurance coverage.HKVAX is poised to introduce an up-and-coming product category, security token offerings (STOs), seeking to harness the burgeoning investment prospects of the Web3 ecosystem. STOs involve offering security tokens which represent traditional legal ownership of real-world assets.Upcoming collaborative fundingAnthony Ng, the Co-Founder and CEO of HKVAX, affirmed the exchange’s growth trajectory and outlined plans for expansion of its product suite in Hong Kong. Ng also emphasized forging collaborations with strategic investors to fuel the exchange’s upcoming funding rounds.HKVAX’s announcement is emblematic of Hong Kong’s embrace of crypto retail trading. Recent entrants HashKey and OSL have set the precedent by becoming the first exchanges to secure licenses for offering crypto trading services in the region as of August 3.It’s been a long process for HKVAX to arrive at this point. The firm first contacted the SFC in 2018 in relation to licensing. It started the application process in 2019. It’s also proving to be an incredibly costly exercise. It’s believed that crypto-related operating licenses are costing firms up to $20 million.The backdrop to these developments is Hong Kong regulators’ proactive stance on crypto regulation, catalyzed by the FTX exchange collapse in 2022. CEO Julia Leung Fung-yee of the SFC, in a speech on June 24, highlighted the integral role of crypto trading in the virtual asset ecosystem, underscoring the importance of safeguarding investors through the new licensing framework for virtual asset service providers.In a financial landscape undergoing transformation, Hong Kong’s regulatory moves are poised to shape the future trajectory of virtual asset trading and its integration within the broader securities landscape. As HKVAX gains its foothold and the crypto industry matures, the coming months are expected to see further refinements in this nascent yet rapidly evolving market.

Bitmain Planning Mining Equipment Support For Aleo BlockchainBitmain, the leading Beijing-headquartered crypto mining rig manufacturer, is set to bolster the proof-of-work (PoW) blockchain network of Aleo with its upcoming Antminer release.The firm announced its intentions via a social media post which was published on WeChat on Monday. The move follows Bitmain’s recent introductions of Filecoin and Kaspa mining machines and its latest series of Bitcoin miners.Photo by RDNE Stock project on PexelsEnhanced privacy through zk proofsBitmain plans to unveil a miner compatible with the forthcoming Aleo blockchain network which is currently in testnet mode. Aleo’s PoW blockchain promises to bring enhanced privacy through zero-knowledge (zk) proofs while retaining programmability. Zk proofs represent a cryptographic advancement insofar as they can verify data while it remains encrypted and undisclosed to the verifying party. The blockchain network adopts a statically typed programming language inspired by Rust, known as Leo.Aleo has been gaining significant attention in the crypto space, much like other venture capital-backed layer 1 blockchains, including Solana, Aptos, and NEAR, before their respective debuts. In April 2021, Aleo’s team successfully secured $28 million in a Series A funding round, with Andreessen Horowitz (a16z) leading the way.Aleo’s journey reached new heights in February 2022 when its Series B funding round raised a substantial $200 million, pushing the project into unicorn status. This funding round was jointly led by Softbank Vision Fund 2 and Kora Management LP, with participation from a16z, Tiger Global, Sea Capital, Slow Ventures, and Samsung Next.Latest in series of product launchesBitmain’s announcement is part of a series of product launches in recent months. In July, the company unveiled a mining rig designed for Filecoin (FIL). The following month marked the shipment of Bitmain’s Kaspa (KAS) mining machines. Shortly after the Kaspa deliveries, Bitmain revealed plans for an August release of a Monero (XMR) mining rig. Most recently, Bitmain introduced two next-generation Bitcoin (BTC) miners from the S21 series.The Chinese crypto mining equipment manufacturer has faced financial challenges in recent times. In April, it emerged that the company had been fined by the Chinese authorities for tax irregularities.Earlier this month, reports suggested that the company was experiencing liquidity issues. It failed to pay some of its employees although it later resolved the matter. Reports of staff payment difficulties surfaced two weeks ago. Arising out of that episode, the company subsequently fired three employees for posting information about salary payment issues on social media.Nevertheless, the firm managed to secure two contracts with US-based mining operations following those reports. In these contracts, Bitmain sold a combined 5.8 exahash per second (EH/s) of its new S21 Antminers to Iris Energy and Cleanspark. In September, Bitmain finalized a deal with troubled crypto miner Core Scientific that will see the firm supply the restructured company with 27,000 Bitcoin miners.The company has been blighted by internal conflicts going back a number of years between co-founders Jihan Wu and Zhan Ketuan. Subsequently Wu went on to found Singapore-headquartered crypto cloud mining platform Bitdeer.

KuCoin Dismisses Notion of a Layoff PlanAmidst recent rumors of significant layoffs at Seychelles-based cryptocurrency exchange KuCoin, the company’s CEO has come forward to deny any such plans.While not refuting the possibility of staff reductions, KuCoin’s CEO, Johnny Lyu, took issue with the term “layoffs,” asserting that it was a reevaluation of the organization’s structure rather than job terminations. The speculations about staff cuts were first reported by Colin Wu of Wu Blockchain on Twitter.Photo by Joao Viegas on UnsplashAlleged 30% workforce reductionAccording to his sources, KuCoin was planning to layoff around 30% of its workforce, attributing the alleged measure to a strict know-your-customer (KYC) policy that had impacted the firm’s profits.The KYC policy in question was introduced after KuCoin faced legal action from the United States. In March, the New York Attorney General accused the exchange of violating securities and commodities laws, leading to the implementation of the more stringent KYC measures.Routine bi-annual appraisalsInstead, Lyu has clarified that any adjustments to the company’s headcount were a result of routine bi-annual appraisals aimed at maintaining competitiveness in the market.Taking to Twitter on Tuesday, Lyu referred to the layoff reports as “rumors.” He emphasized that the company regularly evaluates its organizational structure based on employee performance and overall company development to ensure dynamism and competitiveness.The Kucoin CEO pointed to a recent report issued by the company as evidence of the exchange’s ongoing growth. The report revealed that the firm had added 300 new employees in the first half of the year. It also mentioned that KuCoin was in the process of upgrading its KYC authentication systems to enhance user asset security, comply with global compliance requirements, and create a safer trading environment.Despite the speculation and policy changes, KuCoin ranks 11th in terms of “trust score” among other exchanges, according to CoinGecko. Over the past day, the exchange notched up an impressive $327 million in trading volume.KYC policy changeRecently, KuCoin updated its KYC policy, requiring newly registered users to complete the KYC process to access the exchange’s products and services. Existing registered users who had not completed KYC by the deadline faced restrictions on their accounts, limiting certain activities but allowing fund withdrawals.The update to the KYC policy had a notable impact on KuCoin’s trading volume. A day after the announcement, trading volume skyrocketed to $6.8 billion from the previous day’s $500 million, according to CoinGecko data.Lyu has pledged to continue investing in the company’s core businesses while providing users with the exceptional trading experience they’ve been promised.KuCoin may have dispelled rumors of widespread layoffs and clarified that any staff adjustments were part of routine organizational development. However, there’s no doubt that the crypto exchange business is going through a difficult period.Most exchanges have suffered due to regulatory pushback, particularly those that have focused their activities in the United States. Earlier this month, global exchange Binance cut 1,000 jobs with plans to make further cuts in the future.