HashKey secures $30M in funding from Chinese VC firm

Bitget commits fund to bolstering Indian blockchain innovationBitget, the Seychelles-incorporated derivatives and copy trading platform, has unveiled its plan to invest significantly in Indian-based blockchain startups.Photo by Sylwia Bartyzel on Unsplash$10 million fundThe company announced the initiative by way of a press release published by PR Newswire on Monday. This strategic move is part of Bitget’s Blockchain4Youth (B4Y) initiative, which has earmarked a $10 million fund for Web3-focused projects.Bitget revealed that the B4Y initiative kicked off on Nov. 6 and will continue until Dec. 4, coinciding with BUIDL for Web3, India’s multi-chain summit event. This summit, sponsored by Bitget in collaboration with Lumos Labs and BuidlersTribe, provides a platform for Indian startups to showcase their innovative concepts to Bitget as well as prominent venture capitalists.Nurturing Web3 startupsThe core objective of Bitget’s investment initiative is to identify and nurture high-potential projects within the cryptocurrency space, offering them financial support to drive innovation in cutting-edge technologies.As part of the Blockchain4Youth project, Bitget has committed to deploying $10 million in investments over the next five years. Through complementary research the company has carried out recently, Bitget is likely to have identified that targeting the younger demographic is going to be good for business over the longer term.Gracy Chen, Managing Director at Bitget, lauded the developing blockchain and crypto sectors in India. Chen emphasized India’s status as a prime investment destination in Asia, citing the country’s abundance of talent and entrepreneurial drive.BUIDL for Web3Notably, the BUIDL for Web3 initiative is set to attract a diverse array of developers and founders, celebrating their resilience and creativity. The month-long program will commence by shortlisting over 100 startups, ultimately selecting 10 to present their projects to Bitget and well-known venture capitalists such as Sequoia Capital, Lightspeed Venture and Draper Labs. To facilitate this process, Bitget has established a dedicated portal to receive applications from aspiring startups.Chen stated:”India’s resilience and constant advancements towards blockchain and crypto makes it the most wanted place to invest in Asia currently. The talent, the entrepreneurial spirit, it’s everything celebratory and we’re here to empower it. With our Blockchain4Youth, we look forward to accelerating the next big fours of crypto space.”Strategic investmentThe crypto derivatives platform has been active when it comes to investment recently. Last month, it unveiled a $100 million crypto ecosystem fund. Titled the EmpowerX Fund, the initiative was revealed during the company’s fifth anniversary summit held in Singapore.In April, Bitget invested $20 million into Sei Labs, the development company behind the Sei layer one blockchain. The company has been actively progressing various aspects of the business in 2023. In August it rebranded the BitKeep Wallet to Bitget Wallet following the acquisition of the Singaporean project earlier in the year. Integration of that business had added additional users to its platform such that it exceeded the 20 million user mark.Bitget’s commitment to investing in the Indian blockchain ecosystem is a testament to the rapidly evolving landscape of crypto innovation in the country. However, India is not its only target market. In July, the firm indicated that it was looking to expand further within the Middle East and North Africa (MENA) region.

Hong Kong Exchanges and Clearing Limited (HKEX), the operator of the Hong Kong stock exchange, has announced plans to launch a digital asset price index. The index which the company is marketing as the HKEX Virtual Asset Index Series, will aim to provide for the developing asset class, while complimenting Hong Kong’s overarching efforts to transform itself into a regional digital assets hub. The company announced details of the new product offering in a press release published to its website on Oct. 28. HKEX indicated that the product will go live on Nov. 15, outlining that the product “provides investors with transparent and reliable benchmarks for Bitcoin and Ether pricing in the Asian time zone.”Photo by Kanchanara on UnsplashReference index for Bitcoin (BTC) and Ether (ETH)The firm claims that the Index Series will include a Reference Index for Bitcoin (BTC) and Ether (ETH) while providing a Reference Rate for the two leading digital assets. The Reference Index will be formulated using a 24-hour volume-weighted reference spot price, with that pricing coming from leading virtual asset exchanges. The Reference Rate has been devised with the settlement of financial products in mind. As a result, it will be calculated on a daily basis at 16:00 Hong Kong time. From a compliance perspective, the product complies with the European Union’s (EU) Benchmark Regulation (BMR), being the first such product to be developed in Hong Kong. Additionally, the Index Series will be administered by CCData, a UK-headquartered data and index solutions firm formerly known as CryptoCompare.  Taking to the X social media platform, CCData outlined that the product is underpinned by its data selection process, leveraging its “Exchange Benchmark methodology to provide highly robust real-time and EOD  [end-of-day] reference rates.” The firm added that the offering will introduce “essential benchmarks for the Asian market,” while enhancing transparency and reliability within the digital assets sector, broadening opportunities for market participants across the region. Enabling informed investment decisionsHKEX CEO Bonnie Chan said that the company was pleased to introduce the HKEX Virtual Asset Index Series to meet the region's growing demand for this fast-emerging asset class. “By offering transparent and reliable real-time benchmarks, we seek to enable investors to make informed investment decisions,” she added.Like many other financial services firms in TradFi, HKEX has been getting itself acquainted with the blockchain and digital assets sector. In October of last year, the firm launched a blockchain-based settlement platform called Synapse. The platform relies upon DAML-based smart contracts. Earlier this year, a number of asset management firms launched spot Bitcoin and Ethereum exchange-traded funds (ETFs) on the exchange. In April, a report published by HKEX suggested that the true potential of crypto ETFs had yet to be fully realized, pointing out that a number of regulatory tweaks would be necessary to better support digital asset-based products. HKEX itself could have a greater role to play in the expansion of the digital assets sector in Hong Kong. Last month Hong Kong Legislative Council member Lee Wai-hung called on the platform to expand its range of derivatives, including crypto derivatives.

In an effort to safeguard crypto investors from falling prey to misleading advertisements, the Securities and Exchange Commission (SEC) of Thailand has intensified its scrutiny of promotional campaigns within the crypto sphere.  Broker agent eventsOn April 29, the Bangkok Post reported that the SEC has raised concerns regarding the potential violation of local regulations through introducing broker agent (IBA) events. These events, the SEC clarified, may breach regulations as IBAs are only permitted to promote digital token services to deter speculation on cryptocurrencies, categorized as high-risk assets. IBAs, acting as local conduits for partner digital asset exchanges, typically earn commissions by onboarding clients within a specific market. Such practices are common for exchanges or brokers that don't directly operate in certain markets. Deputy Secretary-General Anek Yooyuen conveyed the commission's unease over crypto exchanges offering preferential treatment to onboard users. Yooyuen stated: "When operators organise sales promotions by offering rewards to entice people to use the service, this could encourage use of the service without considering the investment risks. This is especially the case for cryptocurrencies.”Photo by Than Diep on UnsplashWarning of consequencesHe cautioned that failure to adhere to these guidelines would result in “punishment according to the law.” While cryptocurrency exchanges are legal in Thailand, they must secure local approval. Notably, last month, Thailand even greenlit asset management firms to launch private funds, offering Bitcoin exchange-traded funds (ETFs) exclusively to institutional and ultra-high-net-worth investors. Nonetheless, the country recently prohibited the sale of cryptocurrency lending products and mandated that exchanges prominently display risk warning messages. International regulatory trendThis move by the Thai SEC mirrors actions taken by regulators in other major crypto markets. For instance, the United Kingdom's Financial Conduct Authority (FCA) issued 450 alerts for illegal crypto ads in 2023 alone. Similarly, Spain’s principal securities market regulator, the National Stock Market Commission, denounced fraudulent crypto asset promotions in November 2023, emphasizing companies’ obligations to adhere to local laws. Thai advertising guidelines mandate businesses and advertisers to substantiate the “facts” presented in their campaigns, failing which could lead to legal repercussions. A recent incident provides a case in point. Hackers hijacked advertisements on Etherscan, redirecting users to phishing sites aimed at draining crypto wallets. Scam Sniffer, a blockchain investigation firm, attributed the widespread phishing campaign to the inadequate oversight by advertisement aggregators. The company made the following statement on the matter: “Etherscan aggregates ads from platforms like Coinzilla and Persona, where insufficient filtering could lead to exposure to phishing attempts.” The wallet drainer scam involves enticing users to counterfeit websites and coercing them to link their crypto wallets, enabling scammers to siphon funds into their own wallets without user authentication or consent. This is not the first time that the authorities in Thailand have homed in on crypto-related advertising. In August 2023, the southeast Asian country’s Ministry of Digital Economy and Society (MDES) outlined that it had engaged with social media firm Meta, owner of Facebook, informing it that its response to the proliferation of fraudulent platform ads relative to crypto had been inadequate.