Vietnam launches five-year pilot to regulate crypto asset trading

In an effort to fortify the cryptocurrency market and safeguard investors' funds, the Hong Kong Securities and Futures Commission (SFC) has introduced a minimum insurance requirement of 50% for licensed cryptocurrency exchanges handling customers' assets.Photo by Simon Zhu on UnsplashGuarding against insolvency riskThe move came to light through a statement published recently by OSL, one of Hong Kong’s licensed virtual asset trading platforms. It’s aimed at enhancing security measures, protecting users from potential security breaches or insolvency. As part of that disclosure, OSL announced a two-year partnership with Canopius, an underwriter syndicate associated with Lloyd's of London. Under this collaboration, OSL will provide insurance coverage for an impressive 95% of its users' assets, surpassing the mandated 50%. OSL emphasized its commitment to safeguarding regulated assets under custody, irrespective of the regulatory guidelines permitting virtual asset service providers (VASPs) to reduce insurance coverage to 50%. Response to recent failuresThis decision is grounded in the acknowledgment of the volatile market conditions and the series of cryptocurrency firm collapses witnessed in recent years. 2022 saw a number of high-profile crypto platform collapses, such as the demise of FTX. HashKey Exchange, another licensed crypto exchange in Hong Kong, has also proactively secured its users' assets by entering into a crypto insurance agreement with Hong Kong headquartered fintech firm OneDegree back in September. The insurer entered the digital assets space last July, expanding into the Middle East last month. OneDegree’s arrangement with HashKey offers coverage ranging from $50 million to $400 million, extending beyond standard security breaches and insolvency to include server downtime, data back-up and load management incidents, ensuring comprehensive protection. Broader regulatory effortsThe minimum insurance requirement is part of the SFC's larger strategy to regulate the cryptocurrency industry in Hong Kong. While the Chinese autonomous territory enabled cryptocurrency trading for retail investors in August, only OSL and HashKey have obtained virtual asset trading licenses. Thirteen other entities are currently in the application process, undergoing rigorous due diligence checks, including comprehensive financial audits exceeding the scope beyond proof-of-reserve systems. This insurance mandate represents a significant step toward enhancing investor confidence in the cryptocurrency market. As digital assets gain popularity, ensuring the security of customers' funds has become paramount. The SFC's proactive approach seeks to strike a balance between fostering innovation and safeguarding investors. Products are also emerging that crypto users themselves can access. UK-based CryptoShield offers insurance protection directly to users that covers potential loss of funds on crypto platforms. The cryptocurrency landscape in Hong Kong is evolving rapidly, with the SFC playing a pivotal role in shaping the regulatory environment. Regulators aim to establish a robust framework addressing potential risks and protecting market participants while embracing digital innovation. As the regulatory landscape matures, more licensed crypto exchanges in Hong Kong may be required to meet the 50% minimum insurance requirement, further strengthening security measures and making the market a safer place for investors.  

AliExpress Partners With ‘The Moment3!’ NFT ProjectAliExpress, the renowned global e-commerce platform and subsidiary of China’s Alibaba Group, is making its entry into the world of non-fungible tokens (NFTs) through a newly announced partnership with The Moment3!, a Web3 project. The collaboration aims to release a collection of 5,555 NFTs later this month.Photo by Andrey Metelev on UnsplashWhat is ‘The Moment3!’?Oddly, we know very little about the project. Its Telegram channel has just been established, it doesn’t have a website, while its Discord and Twitter channels are also recently established with modest followings. Anonymity is a feature in Web3 and perhaps that’s the approach this project is taking. Whatever the background, it has to be said that there must be some talent behind the project for it to secure the backing of an entity like AliExpress by way of this partnership.This recent announcement was initially made on AliExpress’ official Twitter account but that tweet has since been removed. The project itself tweeted out news of the partnership on Thursday. The Moment3!’s mission, as stated in its Twitter bio, revolves around utilizing NFTs to immortalize special moments on the blockchain.According to the project’s Discord channel, The Moment3! aims to connect with real-world businesses and provide NFT owners with benefits and exclusive rights beyond the collectible value.NFT debutThis marks AliExpress’ initial venture into the NFT market, although its parent company, Alibaba, has previously explored the Web3 space. In September 2022, Alibaba’s luxury shopping platform, Tmall Luxury Pavilion, introduced an immersive shopping metaverse experience and introduced the Meta Pass, granting users free access to virtual experiences.Alibaba-Centric Web3 projectsThere have been several other Web3-related investments and developments related to Alibaba Group companies in recent months.Last month, Alibaba Cloud, one of the world’s largest cloud computing companies, joined forces with the Avalanche layer one blockchain project to introduce “Cloudverse,” a launchpad facilitating the creation of personalized spaces within the metaverse for businesses.In April Alibaba Cloud was the co-organizer of the Web3 Festival, an event held in Hong Kong to showcase the autonomous Chinese territory for the development of the Web3 sector. The four-day event attracted 10,000 attendees.In early May, Artifact Labs, a Hong Kong-based start-up company that specializes in metaverse and Web3 product offerings, raised $3.25 million in a funding round led by Blue Pool Capital. The investment firm is the personal investment vehicle of Alibaba founders Jack Ma and Joe Tsai.NFT warningAliExpress, owned by Alibaba Group, is a global e-commerce platform that does not cater to customers in mainland China, despite being headquartered in China. The Chinese government prohibited all cryptocurrency transactions in September 2021. NFTs remained legal although authorities recently issued a warning on their use, together with some guidelines.With its new collaboration, AliExpress is expanding its reach into the Web3 space and exploring the potential of NFTs. As the release date approaches, anticipation grows to witness the specific features and benefits offered by the 5,555 NFTs that will soon be available to the public.

China Mobile Establishes Metaverse Industry AllianceChina Mobile, one of the leading telecommunications companies in China, has taken a significant step forward in the development of the metaverse by announcing the establishment of an industry alliance during the 2023 Mobile World Congress in Shanghai.News of the development broke via a state-backed media outlet, the Shanghai Securities Journal, in its reporting from the event on Wednesday.Photo by julien Tromeur on UnsplashA trillion yuan marketAt the forefront of this endeavor is Zhao Dachun, Deputy General Manager of China Mobile. Dachun emphasized the metaverse’s potential as a trillion-yuan level market. Recognizing its significance, China Mobile has unveiled the first batch of 24 members of the metaverse industry alliance. Among them are renowned companies such as iFlytek, a leading AI company, HTC, a prominent manufacturer of VR goggles, and MGTV, a popular video streaming platform.The establishment of the alliance serves multiple purposes. It provides a platform for industry partners to engage in discussions and collaboratively shape the future of the metaverse industry. This cooperative effort will contribute to the development of industry standards, facilitating a shared vision for the metaverse ecosystem.More effective metaverse collaborationAdditionally, the alliance aims to foster resource sharing, encouraging deeper integration and collaboration among its members. By adopting a win-win mindset, the alliance members seek to collectively benefit from the new opportunities that arise within the digital economy.Further supporting the metaverse vision, Migu, the digital content unit of China Mobile, has taken significant steps by establishing its metaverse headquarters in Xiamen, a city located in the Fujian province of China.Regional government partnershipIn a promising partnership, Migu has entered into a strategic cooperation agreement with the Xiamen government to spearhead the development of a metaverse within the city. The metaverse, a digital world created through advanced technologies such as virtual reality and augmented reality, holds great potential for transforming Xiamen into a “high-quality, high-value, modern, and international” city that thrives on digital intelligence.Migu’s plans extend beyond theoretical concepts, as they outline concrete steps to realize the metaverse vision. Key application scenarios, such as the development of a metaverse version of Gulangyu Island, a renowned tourist destination celebrated for its natural beauty and historical significance, will be a primary focus. By bringing this iconic location to the metaverse, visitors will have the opportunity to experience its charm in a new digital dimension.Moreover, Migu is dedicated to accelerating research on digital governance within the metaverse. With the metaverse expected to have a profound impact on society, understanding how to effectively manage and regulate this emerging digital landscape becomes paramount. Migu aims to lead the way in establishing best practices and frameworks for responsible and inclusive digital governance.Through collaborative efforts, the promotion of industry standards, and strategic investments in key application scenarios, China Mobile is likely to play an important role in unlocking the vast potential of the metaverse. In turn, the initiative is likely to fuel the growth and transformation of the digital economy.