KICA partners with PiLab and CODE for Web3 authentication services

Hong Kong Legislator Courting US Crypto Exchange CoinbaseRecently, Johnny Ng, a member of the Hong Kong Legislative Council, expressed his interest in the future development of Coinbase, a major US cryptocurrency exchange, in Hong Kong. In a tweet today, Ng said that he had been in contact with Coinbase and that he would keep the public updated on further progress.Photo by Ruslan Bardash on UnsplashNg’s invitation to crypto exchangesThis tweet follows Ng’s earlier invitation to Coinbase and other global crypto trading platforms to apply for licenses in Hong Kong. His comments are in line with Hong Kong’s efforts to become a hub for cryptocurrency and blockchain-related activities. As of June 1, a new licensing regime for centralized virtual asset trading platforms (VATPs) went into effect in the Chinese special administrative region.Differing opinionsDespite the enthusiasm shown by Ng, there are differing opinions on Hong Kong’s current suitability as a crypto-friendly jurisdiction. Leo Weese, the co-founder and President of the Bitcoin Association of Hong Kong, expressed reservations in an interview with crypto media outlet CoinDesk.Weese described Hong Kong’s current setup as “highly unattractive” for crypto businesses. He cited factors such as a relatively small and untested market, limited banking partnerships, and restrictive product offerings.Despite these challenges, Weese acknowledged some potential advantages, stating that Hong Kong’s classification of tokens as non-securities allows for the trading of securities that are deemed unregistered in other jurisdictions. It is important to note, however, that Weese cautioned against assuming that moving operations to Hong Kong would protect Coinbase from US regulatory measures.Moody’s altered outlook on CoinbaseMeanwhile, Moody’s, the American credit rating agency, recently revised Coinbase’s outlook from stable to negative, citing uncertainties surrounding the impact of the US Securities and Exchange Commission’s (SEC) charges on Coinbase’s operation as an unregistered securities broker.

Singapore’s Whampoa Plans Crypto-Friendly Bank in BahrainSingapore-based privately held investment firm Whampoa Group has announced that it plans to open a crypto-friendly digital bank in the Kingdom of Bahrain in the Persian Gulf.Photo by Charles-Adrien Fournier on UnsplashIsland state diversificationThe island state has been looking to diversify from its predominantly oil-based economy into fintech and finance. Whampoa Group CEO Shawn Chan said that the company was “impressed by Bahrain’s solid reputation in the financial services sector, transparent regulatory framework, and ongoing pledge to collaborate and innovate.”Chan added that Whampoa would commit to providing “secure and innovative digital financial solutions in line with global best practices” relative to the proposed digital bank, with an eye towards setting a benchmark for the industry where digitally-native banking is concerned.Persian Gulf crypto hubsThe Persian Gulf is proving to be a crypto-friendly region in recent times. Bahrain is one of a number of Gulf Cooperation Council (GCC) countries vying for digital asset-related business. The country’s financial services sector contributes in excess of 17% to Bahraini gross domestic product (GDP). Bahrain has been one of the first in the region to establish a regulatory framework for digital assets, together with a crypto asset licensing system.Its Persian Gulf neighbor, the United Arab Emirates, including the individual emirates of Dubai and Abu Dhabi, have followed a similar path, establishing a workable set of regulatory rules in relation to digital assets, alongside licensing of crypto businesses.CEO of the Bahrain Economic Development Board, Khalid Humaidan welcomed Whompoa’s decision to establish the business in Bahrain, emphasizing the importance of crypto-friendly digital banking to support further development of crypto business in Bahrain, while bolstering the infrastructure available to existing digital asset businesses operating within the Kingdom.Doors open in 2023The bank is scheduled to open later this year, providing integrated financial services covering traditional banking, together with crypto-specific banking activity. That will include digital asset trading and custody, as well as asset management-based products and services.Whompoa’s plan is to gear the bank towards meeting the needs of institutions, innovators and crypto start-up companies and sophisticated global investors. Crypto-friendly banking has been a perennial problem that has stymied the development of the digital assets sector since its emergence.That problem has gotten worse rather than better more recently, with a mixture of banking failures and a crypto sector crackdown leading to the closure of crypto-friendly banks like Silvergate and Signature in the United States in recent months.In East Asia, Hong Kong, while shaping up to compete on the global stage as a crypto-hub, has seen crypto businesses experience difficulty in terms of securing banking within the Chinese autonomous territory. Efforts are being made to alleviate that issue. Furthermore, Hong Kong’s largest virtual bank, ZA Bank, has set out to become the go-to bank for crypto start-up banking in the city.Experiences elsewhere exemplify how crucial banking infrastructure is to the embryonic digital assets sector. It underscores the important role that Whompoa could play in boosting crypto sector business in the island state of Bahrain as digital asset innovation continues to be rolled out.

Hashed, a blockchain-focused investment firm with bases in Seoul and San Francisco, announced on Tuesday (KST) that it has invested a total of KRW 36.8 billion ($28.4 million) in 29 distinct projects over the course of this year, as reported by Korean news outlet Etoday.Photo by Mathieu Stern on UnsplashInfrastructure, gaming and financeThe Web3 investor has distributed its funds across various sectors, allocating 21% each to infrastructure, gaming and finance. Geographically, their investments were also diverse: South Korea has received 38% of the funds, North America 21% and Europe 7%. Other Asian countries, including Singapore, accounted for 34%. Of the 29 investments Hashed undertook, 20 were new additions. The company participated in seed funding rounds for a variety of ventures: Radius, a shared sequencing layer; Decentralised Gaming Ventures, a builder of Web3 games; AnotherBall, the company behind the VTuber platform Izumo; and Delabs Games, a studio focused on Web3 gaming.The remaining nine were follow-up investments. Among these projects were Archway, a Cosmos-based layer 1 blockchain; Payhere, a provider of mobile point-of-sale (POS) systems; and Dfns, an API-first key management solution. Hashed Ventures, the company’s investment arm, oversees two funds: one with a capital of KRW 120 billion and the other with KRW 240 billion. Through these funds, Hashed has invested in a total of 86 portfolio companies. This year, some of their notable investments include public chain project Aptos, Web3 startup Story Protocol and decentralized exchange dYdX. It’s also noteworthy that 55% of the larger fund has been allocated to Korean companies. Blockchain community and talent developmentHashed’s impact in the blockchain sector extends beyond just financial investments. The Web3 company has supported the organization of approximately 80 meet-ups, including university hackathons and academic blockchain conferences. A notable example of their initiatives is Korea Blockchain Week, co-hosted annually with Web3 ecosystem builder Factblock since 2018. This event has become one of Asia’s largest blockchain gatherings, drawing over 10,000 visitors. In addition to these events, Hashed has been keen on nurturing talent in the blockchain space. Their Protocol Camp, a boot camp aimed at developing Web3 builders, has successfully produced 59 developers across five sessions. Furthermore, Hashed Open Research, the firm’s research division, is actively involved in shaping the blockchain landscape. They engage in research, organize seminars, and publish findings, all with the goal of offering policy recommendations and advancing understanding in the field. Hashed has reinforced its management system for portfolio companies, focusing on supporting early-stage startups. Their efforts include building a community dedicated to startup support, aiding in recruitment and business development strategies, providing data analysis services and engaging in promotional activities. Reflecting on the past year, Simon Seojoon Kim, CEO of Hashed, acknowledged that 2023 posed challenges for startups. However, he pointed out that the relatively calm market conditions provided Hashed with opportunities to uncover a range of innovative ideas. These ideas, according to Kim, have the potential to make significant contributions to the development of blockchain infrastructure and its applications in real-world scenarios. Looking forward, Kim expressed optimism about the growth prospects of their portfolio companies in the coming year. This optimism is partly based on the potential approval of spot bitcoin ETFs, which he believes could usher in robust participation from institutional investors. Additionally, Kim anticipates further growth driven by the expected launch of wallets by major global platforms, indicating a promising and dynamic future for the blockchain industry and Hashed’s investments.