Alchemy Pay extends market reach through two new industry alliances

Japan’s Financial Services Agency (FSA) plans to ban insider trading in the cryptocurrency market, according to an Oct. 15 report in Nikkei, cited by CoinPost. The forthcoming rules would amend the Financial Instruments and Exchange Act to explicitly bar trading based on nonpublic information, with violators subject to administrative fines.Photo by Louie Martinez on UnsplashTightening oversight through the SESCThe FSA intends to hammer out the details through a working group by year’s end and aims to submit a bill amending the securities law during the 2026 ordinary session of the Diet. Under the proposal, the Securities and Exchange Surveillance Commission (SESC) would gain authority to investigate suspected violations and could recommend fines or criminal charges in cases of alleged insider trading. Experts say Japan’s system of self-regulation, led by cryptocurrency exchanges and the Japan Virtual and Crypto Assets Exchange Association (JVCEA), lacks sufficient data monitoring. The government hopes that granting the SESC oversight of crypto transactions will help ensure fairer trading and make the market more attractive to investors. The new rules would target the use of confidential information, such as advance knowledge of a token listing or a major security flaw. Yet applying insider-trading standards to crypto may prove difficult. Many tokens have no clear issuer, making it harder to determine whose information could move markets or who should be held accountable. Crypto investing has surged in Japan, with domestic trading accounts quadrupling in five years. The FSA now aims to update its rules to reflect that digital assets are traded mainly as investments, not as payment instruments. Leadership transition brings policy uncertaintyJapan’s plan to strengthen oversight of cryptocurrencies coincides with a period of political transition. Prime Minister Shigeru Ishiba has announced his intention to step down but remains in office for now. According to CNBC, Sanae Takaichi, newly elected president of the ruling Liberal Democratic Party (LDP), would typically be expected to assume the premiership, but the coalition’s collapse has upended what would otherwise be a routine transition. The parliamentary vote to choose Japan’s next leader, initially slated for Oct. 15, has been postponed to Oct. 21. In the wake of the split, the main opposition Constitutional Democratic Party (CDP) is reportedly seeking Komeito’s support for a joint prime ministerial candidate. Yuichiro Tamaki, leader of the Democratic Party for the People (DPP), is seen as a potential consensus choice. The ruling LDP currently holds 196 seats in the lower house, but a united opposition could command a larger bloc. Tamaki has also drawn attention in crypto circles. About a year ago, he proposed cutting taxes on cryptocurrency gains to 20%, a flat rate similar to that on stock profits, during his campaign against Ishiba. At present, crypto gains in Japan are classified as miscellaneous income and taxed at progressive rates that can exceed 50% when local levies are included. Metaplanet’s Bitcoin strategy tested amid market shiftsAgainst that backdrop, Metaplanet, often dubbed Japan’s answer to the U.S. firm Strategy for its aggressive Bitcoin (BTC) accumulation, is under pressure as its valuation slips below the value of its crypto holdings. The company’s market-to-BTC net asset value (mNAV) ratio fell to 0.99 on Oct. 14, dropping below 1 for the first time. The metric compares the company’s market value with its BTC holdings, and a reading below 1 means the stock is trading at a discount to its BTC reserves. The decline comes after Metaplanet paused BTC purchases for the past two weeks. As of Oct. 1, the company held 30,823 BTC on its balance sheet. 

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.

B. Riley Financial Agrees Strategic Bitdeer Share PurchaseBitdeer, the Singapore-based crypto mining firm that emerged as a spin-off from the renowned mining manufacturer Bitmain, has solidified a significant pact with financial services firm B. Riley Financial, through a share purchase deal. This accord entails the sale of up to $150 million worth of Bitdeer’s Class A ordinary shares.Photo by Kelly Sikkema on UnsplashOption to buyIn a filing dated August 9 with the United States Securities and Exchange Commission (SEC), the terms of the agreement unveil a strategic arrangement. B. Riley will possess the option, albeit not the obligation, to procure a designated quantity of Bitdeer’s shares over a span of three years. Parameters of this agreement include a maximum acquisition of either 1 million shares or 25% of the shares of Bitdeer traded on the Nasdaq throughout this stipulated purchase timeframe.The filing states: “Pursuant to the Purchase Agreement, the Company has the right to sell to B. Riley Principal Capital II, up to US$150,000,000 of its Class A ordinary shares, par value US$0.0000001 per share (the “Class A Ordinary Shares”), subject to certain limitations and conditions set forth in the Purchase Agreement.”Amplified voting privilegesIn essence, this arrangement affords B. Riley a distinct position within Bitdeer’s echelons. Class A shares, which typically elude public trading, grant shareholders amplified voting privileges in contrast to their Class B counterparts. Ergo, this deal furnishes B. Riley with a tangible stake in the domain of crypto mining.Underpinning this transaction, Bitdeer has committed to compensating B. Riley with 0.5% of the deal’s total value in acknowledgment of its commitment to procuring these shares. Additionally, B. Riley will be indemnified for legal expenses and outlays, extending up to a cap of $50,000.Broader mining interestIt’s not the first time that B. Riley has shown an interest in crypto mining. It signed a $100 million equity deal with Iris Energy last year. Additionally, it’s one of the largest creditors of Core Scientific.Noteworthy is the fact that Bitdeer embarked on its journey to public status via a Special Purpose Acquisition Company (SPAC) deal with Blue Safari Group back in April. This strategic maneuver enabled Bitdeer to become public without taking the conventional route of an initial public offering (IPO).Marking a departure from the throes of the crypto winter, this SPAC deal entailed the fusion of a special purpose acquisition company with a private entity. Bitdeer’s subsequent Nasdaq debut wasn’t without its problems. Investors were lukewarm in the interest shown in the Bitdeer proposition, resulting in an immediate 30% price drop.Bhutan mining collaborationNotably, Bitdeer made headlines when it inked a partnership with Druk Holding and Investments (DHI) in May, signifying a collective stride towards establishing an ecologically-conscious, carbon-neutral digital asset mining venture within the realm of the Kingdom of Bhutan.Rooted in the visionary pursuits of Jihan Wu, the former Co-Founder of Bitmain, Bitdeer is distinguished for its cloud-mining services, a pursuit realized through its data centers stationed in Tennessee, Washington, and Texas. The company’s most recent operations report attests to the mining of 220 Bitcoin (BTC) via its self-mining enterprise in July, constituting an impressive year-over-year escalation of 41%.