Hong Kong securities group proposes ICOs as growth opportunity

Sun Flags Unjust Token Profits of Huobi Founder’s BrotherJustin Sun, Founder of the Tron blockchain and stakeholder in Seychelles-based global crypto exchange Huobi, has stated that the younger brother of the founder of the exchange, Li Wei, has received millions of Huobi tokens ($HT) when he shouldn’t have.Taking to Twitter, Sun wrote:“Li Lin’s younger brother Li Wei has repeatedly acquired a large amount of zero-cost HT through abnormal means. He has sold it on the Huobi platform many times in history, and has withdrawn huge amounts of cash”.Negotiating a refund and token burnSun went on to outline the action that he is in favor of taking in unison with decisions taken by the Huobi Global Advisory Committee (HGAC). “In order to protect people’s interests, the [HGAC] and the HT DAO community decided to recover and destroy the HT obtained by Li Wei at zero cost,” he wrote. “The HT destruction will be announced in the HT community. Such behavior will not be condoned,” he added.Sun complained that not only were the tokens wrongly allocated to Li Wei, he had been dumping the tokens on the market, selling them off for fiat money. In addition to the tokens being burnt, Sun says that he alongside the HGAC will “negotiate a refund” by engaging directly with Li Wei relative to the fiat money that he has already extracted through selling off the token.The Tron founder added that he doesn’t think it equitable that Wei should benefit from the token allocation as he hasn’t made any contribution to the Huobi community, stating that “fairness and the importance of rewarding those who genuinely contribute to the growth and development of HT DAO” are important.Double standardsSome in the crypto community would call double standards on Sun’s claims of a lack of fairness. At the time of the collapse of the FTX exchange in November of last year, Sun offered to help, collaborating with FTX’s Sam Bankman Fried to allow assets related to Sun’s crypto projects (TRX, BTT, JST, SUN, and HT) held by FTX customers on the exchange to be traded out of the exchange into external wallets.Trading in these assets recommenced for a time, with the price within the exchange being exorbitant relative to the regular market price outside of FTX. Many FTX customers ended up buying these tokens at excessive prices, without being able to extract them from the exchange like Sun had promised. To cap it off, those customers then had the newly installed FTX Debtor under the guidance of John J. Ray III, record their loss at the time the exchange officially went bankrupt at the normal market price for these tokens.Although originally a China-based exchange, Huobi moved out of the Chinese market due to adverse regulation, re-establishing itself in the Seychelles. The firm maintains offices in South Korea, the United States, Japan, and Hong Kong, where it has had a listing on the Hong Kong Stock Exchange since 2018.The $HT token has proven to be very volatile both in intraday trading on Tuesday and over the course of the past seven days. In both instances, it has hit high points in excess of $3.00 and low points of $2.70. At the time of publication, the token was trading at $2.90.Photo by Ant Rozetsky on Unsplash

India’s NPCI Looks to Recruit Blockchain TalentIndia’s National Payments Corporation of India (NPCI), a collaborative initiative led by the Reserve Bank of India (RBI) in partnership with 247 Indian financial services companies, is actively seeking an experienced blockchain technologist to spearhead efforts in exploring the potential applications of blockchain technology within contemporary payment systems.The NPCI, responsible for operating India’s Unified Payments Interface (UPI), a domestically developed instant payment system, plays a pivotal role in facilitating inter-bank peer-to-peer and person-to-merchant transactions across the country. The organization has recently posted a job listing for a Head of Blockchain on LinkedIn, demonstrating its interest in harnessing the power of blockchain technology.Photo by Siddharth K Rao on UnsplashIdentifying blockchain use casesThe ideal candidate for this critical role should be a seasoned technologist with a minimum of six years of hands-on experience in the development and implementation of blockchain solutions. Their primary responsibility will be to identify and evaluate potential use cases for blockchain-driven solutions within the payments ecosystem.Additionally, the senior leadership position demands a profound technical grasp of various blockchain platforms and a track record of involvement in at least two pilot blockchain projects.UPI has been a remarkable success in bolstering India’s payment infrastructure, so much so that other countries such as Singapore, Malaysia, the United Arab Emirates (UAE), France, Nepal, and the UK have expressed interest in adopting the UPI payment system to varying degrees.Potential blockchain integrationDespite UPI's runaway success, it’s likely that the NCPI foresees more change coming down the tracks with a need to respond appropriately. Recently, Indian billionaire businessman Mukesh Ambani suggested that his company, multinational conglomerate Reliance Industries (RIL), would delve further into the use of blockchain technology, particularly where central bank digital currency (CBDC) is concerned.V Subramanian, Managing Director of one of Ambani’s companies, Reliance Retail, stated that India’s digital rupee CBDC would eventually outperform UPI. Incorporating blockchain elements into UPI could potentially introduce blockchain technology to millions of users, instantly validating its transformative capabilities.The NPCI’s job posting for a blockchain leader has already garnered significant attention, with over 600 applicants expressing their interest at the time of publication. It is anticipated that the NPCI’s recruitment drive for blockchain expertise will expand in the near future as promising blockchain use cases are uncovered and developed.The NPCI has been paying attention to the development of blockchain technology over a number of years already. In 2020, it launched a project to build a blockchain-based payments platform called Vajra, albeit that it looked to implement a permissioned blockchain model to ensure that only authorized parties could access the network. Truly decentralized networks can’t control who chooses to use such networks.The blockchain is designed such that the NPCI acts as a Clearing House Node, with overall admin rights over the network. Its Notary Node level features Aadhaar authentication, with a view to securing the network. Participant Nodes feature authorized banks and payment services providers, who have the requisite permissions to read and write transactions on the blockchain.

Yuichiro Tamaki, leader of Japan’s Democratic Party for the People (DPP), has outlined that if elected the party will introduce a crypto tax plan that will bring about the lowering of taxation on crypto gains to 20%. Tamaki’s comments come ahead of the Asian nation's elections, which are due to be held on Oct. 27. Taking to the X social media platform on Oct. 19, Tamaki wrote: “If you think crypto assets should be taxed separately at 20% instead of treated as miscellaneous income, please vote for the Democratic Party for the People. There will be no tax when exchanging crypto assets with other crypto assets.”Photo by Liger Pham on PexelsCrypto taxation reformThe DPP leader added that he would be appreciative of people spreading the word and letting the broader Japanese public know about this commitment that is being made in respect of crypto taxation reform. The reduction to 20% would bring the treatment of crypto in line with that of the stock market in Japan, where gains are already taxed at the 20% tax rate. The DPP leader included a graphic within his X post that provided further detail. It outlined that a loss carry-forward deduction could be applied by the taxpayer within a three-year timeframe.  A tax exemption would apply when it comes to the exchange of crypto assets. The DPP is also in favor of increasing the permitted leverage multiple from 2x to 10x relative to crypto trading. Finally, the party supports the introduction of spot crypto exchange-traded funds (ETFs) in Japan. Focusing on developing Web3In response to an X user, Tamaki claimed that the DPP would consider a reduced taxation policy to be inclusive of other financial income in the future. However, for right now, the DPP leader said that the focus was on making Japan “a strong nation in the Web3 business.” Another Japanese crypto community member suggested that the proposed tax cut would lead to an increase in tax revenues, based upon the assertion that many people don’t file tax returns simply because tax calculations are too difficult right now. While the plan is positive for Japan’s crypto community, the DPP is unlikely to be in a position to implement such a plan. The party currently holds just seven of the 465 seats in the National Diet, the Asian nation’s House of Representatives.  Tax reform guidelinesCurrently, the applicable tax rate applied to crypto revenues can reach as high as 55% in Japan. At the end of August Japan’s Financial Services Agency (FSA) unveiled new tax reform guidelines for 2025. One component of those proposals was the suggestion that the crypto tax rate should be reduced to 20%. With that, if Tamaki’s DPP can’t influence matters, the regulator’s proposals may be of sufficient weight to have the matter addressed. The approach taken to the taxation of crypto in various jurisdictions is having a bearing in terms of the competitiveness of those locations relative to the development and further roll-out of Web3 technologies. Earlier this month, the United Arab Emirates took a positive step forward by exempting crypto from value-added tax (VAT). Meanwhile, in Indonesia the local regulator is moving towards a re-evaluation of what is considered to be a harsh taxation policy relative to crypto.