Wemade Reports Loss of $30.6M Despite All-Time High Quarterly Revenue

Hong Kong unveils comprehensive tokenization regulationsChristopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, shared a roadmap for upcoming regulations within the tokenization sector during his address at the Hong Kong Fintech Week 2023.Photo by Simon Zhu on UnsplashJPEX no hindrance to Web3 growthHui’s announcement at the event on Thursday comes on the heels of the JPEX scandal, a Dubai-based crypto exchange that collapsed amid allegations of having defrauded Hong Kong-based platform users. Hui emphatically stated that the JPEX incident would not deter Hong Kong’s commitment to expanding the Web3 market. Hui stated:“We’ve been asked many times whether JPEX will affect our determination to grow the Web3 market — the answer is a clear ‘no.’”In June, Hong Kong implemented new regulations for cryptocurrency exchanges, opening up locally regulated crypto trading services to retail customers via virtual asset service providers (VASPs). However, the majority of the forthcoming regulatory efforts will extend beyond the crypto sector, focusing on areas such as token issuance, wallets and other related components.Regulatory impact on TradFi and DeFiHui indicated the intention to expand virtual asset regulations, suggesting a potential impact on decentralized finance (DeFi). The planned regulations within the tokenization domain are poised to influence not only the crypto industry but also traditional finance (TradFi).These regulations include the issuance of a circular concerning intermediaries engaging in tokenized securities. Additionally, they entail a circular regarding the tokenization of Securities and Futures Commission (SFC)-authorized investment products. Lastly, they’re inclusive of consultations with banks on digital asset custody services with the involvement of the banking regulator. Furthermore, a joint consultation on stablecoin regulations will be issued by the Treasury and the Hong Kong Monetary Authority (HKMA).Focus on positive impact of tokenizationEddie Yue, CEO of the HKMA, echoed Hui’s sentiments by discussing the positive impact of tokenization. He anticipates that tokenization will fuel the adoption of blockchain payments, particularly involving stablecoins and tokenized deposits. Yue believes that central bank digital currencies (CBDCs) will serve as the foundation and a crucial element for achieving interoperability within this ecosystem.He emphasized the need to tackle crucial questions, such as the legal definitions of tokenized securities and whether Delivery versus Payment (DvP) can be successfully implemented for tokenized securities. Additionally, Yue pointed out the intricate legal considerations and interoperability challenges that are currently being discussed within the central bank community.First tokenized green bond issuanceYue also highlighted Hong Kong’s first-of-its-kind issuance of tokenized green bonds in February and revealed that discussions with the industry are already underway for the next bond.“We, ourselves, assisted the government to issue the world’s first-ever tokenized government green bond earlier this year in order to demonstrate the compatibility of Hong Kong’s legal and regulatory environment with this very new issuance format,” he stated. However, despite the promising outlook, Yue remained grounded on the subject, acknowledging the significant challenges in the tokenization landscape.In a related development, HSBC recently disclosed that it is conducting experiments with tokenized deposits in collaboration with Ant Group as part of the HKMA sandbox.

Singapore-based cryptocurrency trading platform BingX has secured a sponsorship deal as the new sleeve sponsor for Premier League football club Chelsea.Photo by Chaos Soccer Gear on UnsplashJanuary 9 debutThe arrangement, spanning the next six months, is expected to debut during Chelsea’s Carabao Cup semi-final first-leg match against Middlesbrough on Jan. 9. As part of this sponsorship, BingX will prominently feature on the front of Chelsea’s training kits for the upcoming 2024/25 season. Meanwhile, the current shirt sponsor, Infinite Athlete, will transition to a training sleeve sponsorship starting next season. While details about the fate of Chelsea’s training kit deal with Trivago, an online hotel booking site, remain uncertain, the club is navigating sponsorship changes in the wake of owner Roman Abramovich’s prior ownership and UK government sanctions. Corporate rebrandEstablished in 2018, BingX operates as a cryptocurrency exchange headquartered in Singapore, catering to a user base of over 10 million in Southeast Asia and North America. In November, the company announced that it was rebranding the business. Part of that process was understood to involve an overhaul of BingX’s visual identity, with the introduction of a streamlined logo. Sponsorship within the English Premier League is a high profile marketing move that will undoubtedly bring more visibility to that brand. Crypto marketing spend reboundThe marketing spend of crypto firms relative to high profile sponsorship deals has recovered significantly in recent months. Such sponsorship deals peaked at the top of the crypto market in 2021. That period saw profligate spending by many of the large crypto platforms. A standout example was provided by the $135 million sponsorship deal signed by fraudulently run crypto exchange FTX for the Miami Heat stadium naming rights in the United States. While that opulent sponsorship spending subsided during the bear market, it appears that there has been a modest resurgence as market conditions have improved. Seychelles-based crypto platform OKX has ongoing marketing relationships with the McLaren Formula One racing team and Manchester City Football Club. In March, U.S.-based crypto exchange Kraken announced a marketing partnership with the Williams Formula One racing team. Earlier this week it emerged that crypto gambling platform Stake.com had signed a sponsorship deal with the Sauber Formula One team. 18 of the 20 English Premier League clubs are now understood to have agreed sponsorship deals at one time or another with crypto companies. This demonstrates the growing trend of cryptocurrency platforms associating with high-profile sports partnerships, enhancing their visibility and influence in the market. Chelsea is actively seeking a front-of-shirt sponsorship deal, considering potential collaborations, including discussions with Saudi national carrier Riyadh Air. It’s understood that the BingX deal has been agreed for in excess of £10 million ($12.7 million) per season.

Korbit, one of South Korea’s leading crypto exchanges, has recently conducted an education session on anti-money laundering (AML) for its employees, local tech media outlet ZDNet Korea reported.  Held in the office lounge of Korbit, the session was led by Hwang Seok-jin, an expert in financial crime and anti-money laundering regimes. A professor at the Graduate School of International Information Protection of Dongguk University, he has served as a compliance officer and a consultant at Digital Asset eXchange Alliance (DAXA), a group consisting of five leading cryptocurrency exchanges in South Korea.  Photo by Viacheslav Bublyk on UnsplashEmphasis on the Virtual Asset User Protection Act  Mr. Hwang informed Korbit’s employees about the upcoming Virtual Asset User Protection Act, effective July, highlighting guidelines for investor protection, prohibitions against unfair transactions and the financial regulators’ authority and oversight. The session especially focused on explaining the Virtual Asset User Protection Act, given that the Act would deeply influence many departments of Korbits ranging from the accounting and finance unit handling customer deposits to blockchain-related units responsible for the custody of virtual assets.  Korbit maintains a no-negotiation policy that bars projects from interacting with exchange employees prior to their tokens being listed. This policy enhances the transparency of Korbit’s evaluation process, ensuring that the exchange assesses projects impartially, without third-party influence or external pressures. After listing an asset, Korbit conducts quarterly risk assessments on all crypto assets traded on the platform. Additionally, it plans to adopt a stricter approach to internal controls to enhance customer protection, in line with the upcoming enactment of the Virtual Asset User Protection Act.