Ethereum Foundation targets Asian expansion with Bangkok set for Devcon 7

Taiwan to review crypto ETFs amid developments overseasThe Financial Supervisory Commission (FSC) in Taiwan has disclosed its close examination of foreign cryptocurrency futures products and exchange-traded funds (ETFs), signaling a potential shift in its regulatory approach.According to a report in Chinese-language financial newspaper, Taiwan’s Commercial Times, the FSC aims to gradually ease restrictions, aligning its stance with global market conditions.Photo by bordercollie 1712 on UnsplashResponding to crypto ETF activity internationallyThe Taiwanese regulator is carrying out this exploration against the backdrop of significant global developments. The possibility of the Federal Reserve cutting interest rates and the upcoming review by the U.S. Securities and Exchange Commission (SEC) of the spot bitcoin ETF in January next year are key factors influencing the FSC’s considerations.The anticipation surrounding the Bitcoin halving in April, combined with speculation that a spot bitcoin ETF approval is imminent in the U.S., have contributed to a 145% surge this year in Bitcoin’s unit price, adding momentum to that regulatory contemplation in Taiwan. There has been speculation that BlackRock, the world’s largest fund manager, is already preparing for the approval of its iShares Bitcoin Trust ETF.Recognizing the potential impact of a Bitcoin index stock fund, contingent on SEC approval and subsequent public investment permission, the FSC is closely monitoring global trends.Closer to home, it emerged last month that Hong Kong’s Securities and Futures Commission (SFC) is actively exploring the possibility of permitting retail participation in a spot crypto ETF. Domestic investment banks in Taiwan, attuned to these developments, have expressed longstanding interest in introducing similar crypto products.The FSC draws parallels with global counterparts, citing the proliferation of cryptocurrency futures products and ETFs in various markets.Cautious regulatory reviewAdopting a phased approach, the FSC emphasizes self-discipline and standards in relaxing regulations around crypto ETFs. This cautious strategy aligns with Taiwan’s historical prudence, previously observed in the delayed approval of cryptocurrency ETFs and blockchain ETFs due to concerns over volatility and speculative nature.As Taiwan contemplates a significant move into the cryptocurrency ETF domain, industry players remain cautiously optimistic. While some had considered private placements for overseas cryptocurrency ETFs, challenges such as tightened regulatory supervision and concerns over errors and price lags prompted a reevaluation.Earlier this month, ETF issuer ProShares launched its short Ether-linked ETF product on the New York Stock Exchange’s Arca, using the ticker symbol SETH. Spot bitcoin ETFs have been launched in Canada, Germany, Australia and Brazil. The products have also been made available via tax havens such as the Cayman Islands, Jersey, Liechtenstein and Guernsey.The regulator in Taiwan hints at a potential strategy involving “cryptocurrency concept ETFs.” These funds could invest in cryptocurrency-related software and hardware vendors, offering investors exposure to the industry without direct linkage to cryptocurrency price fluctuations.

Internal Dispute Sees Co-Founder Depart 5ire5ire, the Dubai-based blockchain platform, is facing a departure of one of its co-founders, Vilma Mattila, due to an internal dispute with her fellow co-founders.In discussion with Tech in Asia, Mattila confirmed her upcoming resignation, stating that she disagreed with the management and financial decisions made by the other co-founders without her consent. The exact timeline of her departure was not disclosed.Photo by bady abbas on UnsplashIndian originsMattila, who was already recognized as an angel investor, co-founded 5ire alongside Indian nationals, CEO Pratik Gauri and CTO Prateek Dwivedi. The company gained attention last year after a successful series A funding round that valued it at a remarkable $1.5 billion, establishing its status as a blockchain unicorn.While the start-up project has established itself in Dubai, its origin story leads back to India. In 2022, 5ire entered into a partnership with the Indian government via Atal Tinkering Labs (ATL). ATL is running an initiative to create and promote a culture of innovation and entrepreneurship in India. As part of that program which is being run in more than 10,000 Indian schools, 5ire collaborated with ATL to provide a blockchain module.Although headquartered in Dubai, the project still maintains that it is “a network of local developer communities established in various cities across India.” It has also been active in the country that makes for its administrative home. Last month, Abu Dhabi University in the United Arab Emirates hosted its first 5ire Web3 and blockchain hackathon.The university had signed a Memorandum of Understanding (MoU) with 5ire in February, with a view towards strengthening blockchain education, research and entrepreneurship, while maintaining a focus on sustainability and accessibility.$100 million raiseIn July 2022, it emerged that 5ire had raised $100 million from the UK-based Sram & Mram Group, an international conglomerate that concerns itself with projects in South and Southeast Asia. It got $10 million on signing the deal, with other tranches to follow. As of January, it had called off $20 million of that funding.5ire is positioning itself as “the world’s first blockchain unicorn with sustainability at its core.” The project seeks to align itself with the Sustainable Development Goals (SDGs) set out by the United Nations. It’s a layer one EVM-compatible smart contract platform that focuses on the development of a for-benefit blockchain ecosystem, aligned with the United Nations SDGs.Working towards mainnet releaseThe company has been diligently working on the development of 5irechain, a blockchain designed around the principles of the “Fifth Industrial Revolution,” from which the company derives its name. The launch of its mainnet is anticipated to take place in the coming quarters. In November 2022, it launched its Thunder (Alpha) testnet. Testnet Thunder (Beta) went live in February of this year.As the departure of Vilma Mattila unfolds, the future direction and leadership of 5ire will come under scrutiny. It remains to be seen how this internal dispute will impact the company’s progress and reputation in the blockchain industry.

Hong Kong Reiterates Web3 Credentials and CommitmentHong Kong is committed to growing the Web3 industry under appropriate regulations, according to government officials.©Pexels/Andrea PiacquadioAt the four-day Web3 Festival, which is the largest Web3 event that the city has hosted since declaring its intention last year to become a digital asset hub, Financial Secretary Paul Chan stated that the stability of the financial system and investor protection should not be damaged, and that appropriate regulations are a must to create a sustainable development environment and a more ideal space for development.DeFi licensing requirementSome attendees were surprised to learn that the Securities and Futures Commission (SFC) believes that decentralized finance (DeFi) platforms for virtual assets need a license under existing rules. Keith Choy, interim head of the intermediaries division at the SFC, stated that people operating or performing DeFi activities should be subject to Hong Kong’s licensing requirements.This means that if Hong Kong really intends to regulate DeFi, it will have a stricter environment than Singapore. The Web3 industry has been closely watching the development of a new regulatory framework for virtual assets in Hong Kong since the city revealed at the end of October its intention to become a cryptocurrency hub. Under new regulations that go into effect in June, cryptocurrency exchanges serving customers in Hong Kong must be licensed by the SFC.10,000 Web3 Festival attendeesThe event attracted more than 10,000 people ahead of the conference, with several big-name speakers and exhibitors looking for new opportunities in the city. OKX and Filecoin were some of the large cryptocurrency firms in attendance, as were traditional tech firms like Tencent Cloud, which had a booth touting its blockchain-related services for corporate clients. Alibaba Cloud was also a co-organiser, along with Amazon Web Services and Hong Kong’s Cyberport.Binance co-founder and CEO Zhao Changpeng (CZ) also dialed in via video for a fireside chat. Last month, the US Commodity Futures Trading Commission (CFTC) sued CZ and Binance over what it alleged was “sham” compliance with domestic regulations. The company has been scrutinized over connections to its local firm Binance.US, which legally is meant to operate as a separate entity. Zhao was not asked and did not address his legal troubles at the conference. However, he did note that Binance is in talks with regulators in many markets.“We are actively engaged with regulators all around the world,” Zhao said. “Many of them are very receptive, some of them are still skeptical, and that’s fine, but we need to engage. We need to have dialogue, we need conversations, and we also need patience.”Singapore comparisonsHong Kong has frequently been compared with Singapore, which had been considered a friendlier market for related activity until Hong Kong’s policy shift. Some attendees had hoped that Hong Kong’s shift would provide some competition for Singapore in the region. “We did see a very obvious trend of people flying to Singapore to make sure their business was part of this space,” said Luke Liu, chief core ecosystem contributor at cross-chain protocol developer Poly Network. “Hong Kong and Singapore can coexist in some sense, but there is definitely a very positive change going on recently because of the Hong Kong policy announcement.”Hong Kong has reaffirmed its commitment to growing the Web3 industry under “appropriate” regulations, with the stability of the financial system and investor protection as a top priority. This has been reiterated during the largest Web3 event in the city since declaring its intention to become a digital asset hub.