Japanese Firm Exec Underscores User Experience and Collaboration in Web3

Celsius and BlockFi Filings Reveal Bhutan Crypto InvestmentThe tiny kingdom of Bhutan, nestled in the Himalayas, has been secretly holding millions of dollars in cryptocurrency, according to recent filings in the bankruptcy processes of crypto lenders Celsius and BlockFi. The revelation has surprised many observers, given the country’s reputation as a conservative and traditionalist society that places a high value on spiritual well-being and happiness over material wealth.©Pexels/Prateek KatyalDruk Holdings and InvestmentThe cryptocurrency holdings were reportedly managed by Bhutan’s Druk Holdings and Investment, which was established in 2018 with the aim of investing in a range of assets to help diversify the country’s economy and reduce its dependence on hydro-power exports. It’s understood that the fund had invested in a number of cryptocurrencies, including Bitcoin, Ethereum, and Ripple, and had seen significant gains as a result.While the exact amount of cryptocurrency held by the Bhutan Investment Fund is not known, a Forbes report estimates that it could be worth several million dollars. This represents a significant portion of Bhutan’s overall foreign reserves, which stood at $1.2 billion at the end of 2022.The news of Bhutan’s cryptocurrency holdings has sparked a debate about the role of digital assets in the country’s economy. Some experts have argued that cryptocurrencies could provide a valuable source of revenue for Bhutan, particularly as the country seeks to reduce its reliance on hydro-power exports. Others, however, have expressed concerns about the risks associated with investing in such a volatile and unpredictable asset class.A new frontier for investmentDespite these concerns, it appears that the Bhutan Investment Fund is committed to continuing its cryptocurrency investments. In a statement to Blockworks, the fund’s CEO, Tenzin Lekphell, said that “digital assets represent a new frontier for investment, and we believe that they have the potential to provide significant returns for our investors.”The news of Bhutan’s cryptocurrency holdings comes at a time when many countries around the world are grappling with the question of how to regulate and manage digital assets. While some countries, such as China, have taken a hardline approach and banned cryptocurrencies altogether, others, like Japan, have taken a more moderate approach and have sought to regulate the industry to prevent fraud and protect investors.Others still, like the United States and India have flip flopped on the subject with the United States having taken a regulatory hard line in recent months.A crypto opportunity for smaller nationsIt remains to be seen what approach Bhutan will take towards cryptocurrency regulation. However, the news of the country’s cryptocurrency holdings is a sign that even small, remote nations can take advantage of the opportunities provided by digital assets. On Tuesday Jason Lau, COO of crypto exchange Okcoin, stated that Bhutan’s investment was no surprise, with the expectation that other sovereign wealth funds would follow suit.Bhutan’s decision to invest in cryptocurrency has raised eyebrows in the international community. However, it is also a testament to the country’s willingness to explore new and innovative approaches to economic development. As the world continues to grapple with the opportunities and challenges posed by digital assets, Bhutan’s example may provide a valuable case study for other nations seeking to diversify their economies and embrace new technologies.

Regulatory breach sees Philippines initiate blockade on BinanceIt’s been a very challenging year for global crypto platform Binance — one that doesn’t appear to be improving with the latest move to block access to the platform in the Philippines.Photo by Alexes Gerard on UnsplashUnlicensed to tradeIn a noteworthy development, the Philippines Securities and Exchange Commission (SEC) declared on Tuesday its intention to block access to the Binance platform due to regulatory irregularities.The SEC asserted in a statement that Binance lacks the necessary license to operate in the Philippines, cautioning the public against engaging in investment products on the platform. The regulator stated:”BINANCE is NOT REGISTERED as a corporation in the Philippines and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY.”The regulatory body is actively working to have Binance blocked in the country, citing concerns about unregistered investment products. The impending ban is set to take effect within three months, allowing investors a window to exit their positions held through Binance.Pushback on advertisingIn addition to its attempts to block access to the platform, the SEC has also approached tech giants Google and Meta (Facebook’s parent company), requesting the blocking of Binance advertisements on their platforms within the country. This is a response to social media campaigns designed to attract Filipino investors to the embattled cryptocurrency exchange. While users can still download the Binance app from Google and Apple app stores in the Philippines, the extent of investor activity in the country remains uncertain.Follows U.S. regulatory actionThese actions in the Philippines come hot on the heels of Binance’s CEO Changpeng Zhao (CZ) stepping down and pleading guilty in a U.S. money-laundering case. The Philippines’ ban adds to Binance’s challenges as it aims to expand in Southeast Asia amid legal troubles in the U.S. and restrictions on operations in China.Over the course of a three-month period earlier this year, the world’s largest crypto exchange platform lost its ability to trade in Germany, Canada, Belgium, the Netherlands and Cyprus. Additionally, French authorities have been investigating the platform for alleged illegal provision of digital asset services and aggravated money laundering.Facing regulatory pushback in the U.S. and Europe, Binance appeared to be concentrating on making further in-roads in Asian markets over the course of this past year. It had recently pursued a joint venture with Gulf Energy in Thailand to launch a new digital assets exchange.Media reports previously suggested that Binance was considering acquiring a Philippine company to obtain operating licenses in the country. The SEC’s move to ban the platform follows a warning issued last year against using Binance, and it represents a broader effort to regulate the cryptocurrency sector and protect the public interest.The recent guilty plea by CZ for violating U.S. money laundering laws has added to the legal woes of the cryptocurrency giant. CZ agreed to personally pay $50 million in penalties as part of a $4.3 billion settlement to resolve investigations into Binance’s practices. He may also still face prison time in the U.S. In the Philippines, the SEC warns that Section 28 of the Securities Regulation Code (SRC) allows the application of a fine of up to five million pesos ($90,000) and a maximum prison term of 21 years.

Animoca Brands, a company focused on Web3 and metaverse projects, has gotten together with the Hong Kong subsidiary of British banking giant Standard Chartered to establish Anchorpoint Financial Limited.In a press release published to its website on Aug. 8, Animoca Brands outlined that the joint venture company has been established with the objective of building a business model that will concern itself with the issuance and advancement of licensed stablecoins. The move follows Hong Kong’s Stablecoins Ordinance, which went live on Aug. 1.Photo by Andres Garcia on UnsplashHKT involvementThe partnership also involves Hong Kong Telecom (HKT), one of the largest telecommunications companies in Hong Kong. This collaboration is not something that has just been formed. The trio had been participants in a regulatory sandbox related to stablecoin issuance established by the Hong Kong Monetary Authority (HKMA) in 2024.  Back in February, it emerged that the three companies had entered into an agreement to establish a joint venture with a view towards applying to the HKMA for a license to cover the issuance of a Hong Kong dollar-pegged stablecoin. By June, the companies had formed that company. Applying for a licenseAnchor Financial has already informed the HKMA of its intention to apply for a stablecoin license. A recent Bloomberg report asserted that somewhere in the region of 50 companies have expressed an interest in obtaining stablecoin licensing in Hong Kong. However, the regulator is likely to issue no more than 10 licenses. Additionally, disclosure by the HKMA of strict customer identification rules related to the city’s new Stablecoins Ordinance has sparked concern among industry stakeholders. Know-your-customer (KYC) rules will put an onus on stablecoin issuers in Hong Kong to verify the identity of every stablecoin holder. Bo Tang, head and assistant director at the HKUST Institute for Financial Research, told Reuters that the rules were “a bit too strict and not good for acquiring users.” Ricky Xie, a crypto trader based in Hong Kong, pointed out that these KYC rules aren’t just for those who would hold accounts with the stablecoin issuer, but instead they will apply to every stablecoin holder. A number of Hong Kong stablecoin-concept stocks, that had been performing well in the market, fell by as much as 20% when these stringent rules were disclosed by the HKMA. Evan Auyang, group president of Animoca Brands, expressed contentment with Animoca’s partnership with HKT and Standard Chartered Bank (Hong Kong), while adding:”Stablecoins represent one of the most compelling use cases within Web3, and we believe we are still at the early frontier of widespread adoption across institutions and retail alike. As assets continue to move on-chain, the HKMA-regulated fiat-referenced stablecoin is important in reinforcing Hong Kong’s position as a leading international financial center.” The first stablecoin licenses are expected to be issued by the HKMA early next year.