Hong Kong Authorities Unite to Form Crypto-Centric Taskforce

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.

Bitmain Pays Employees Following Salary SuspensionBitmain, the Beijing-based Bitcoin mining equipment manufacturer, has somewhat resolved its cash flow issues, having recently suspended employee salaries in response to ongoing financial struggles and sluggish progress in its mining operations.Photo by Thought Catalog on UnsplashCash flow challengesNews of the payment issue emerged via employee reports online on Monday. The suspension encompassed both performance-based and basic wages, affecting all Bitmain personnel. The dire situation has marked a critical juncture for the ASIC manufacturer, which once held a commanding 70% share of the global Bitcoin mining machine market.Chinese crypto reporter Colin Wu had also outlined the firm’s difficulties on social media. In a subsequent post on X (formerly Twitter), Wu stated:”On the afternoon of October 7, Bitmain has repaid September wages, and stated that it only did not pay the performance salary of some people. It has also been repaid, and the basic salary has been released normally on September 30.”More recent reports by local news media in China indicated that the firm has proceeded to pay part of its staff salaries.Internal conflictsBitmain’s financial woes are not new. The company has been plagued by internal conflicts between its co-founders, Wu Jihan and Zhan Ketuan, resulting in a debilitating power struggle that severely eroded its market dominance. Earlier efforts to restore financial stability included a restructuring of employee compensation in the first quarter of this year. Under this reform, the original fixed salary was divided into a basic salary and a performance-based component linked to rank.Regrettably, these measures have proven insufficient to reverse Bitmain’s fortunes. In a company announcement issued in September 2023, Bitmain acknowledged that its operating cash flow had plunged into negative territory, and the performance of its mining machines fell short of expectations.Consequently, the company suspended employee salaries, with the prospect of resuming payments contingent upon developments after the October 7 holiday.It emerged in April that the firm had been fined for tax code violations in China.Core Scientific dealIn August, Bitmain explored the possibility of acquiring an equity stake in Core Scientific, a prominent North American crypto-mining company, as part of Core Scientific’s bankruptcy restructuring plan. This proposed agreement, pending final documentation and court approval, entails Bitmain acquiring 27,000 S19j XP Bitcoin miners from Core Scientific.The Core Scientific deal represents a potential lifeline for Bitmain. Nevertheless, the suspension of employee salaries underscores the prevailing uncertainty surrounding the company’s future. Whether the completion of the Core Scientific transaction will usher in the much-needed financial turnaround for Bitmain remains uncertain as the company grapples with its ongoing financial challenges.Bitmain’s decision to suspend employee pay highlights the gravity of the situation and the urgency of finding a sustainable solution to its financial woes. The outcome of the Core Scientific deal could determine Bitmain’s fate as it strives to regain its once-dominant position and secure its financial stability. In the meantime, the firm continues to develop the latest generation of Bitcoin mining equipment.

Singapore Exchange Limited (SGX), the city-state’s primary asset exchange, is in the process of establishing Bitcoin perpetual futures trading on the platform.Photo by Kanchanara on UnsplashInstitutional product offeringAccording to a report published by Bloomberg earlier this week, the exchange platform intends to launch Bitcoin futures sometime during H2 2025. The product launch will be subject to regulatory approval from the Monetary Authority of Singapore (MAS). A spokesperson for the company told Bloomberg that the product offering will be geared exclusively towards institutional investors and traders in an effort to “significantly expand institutional market access.” Retail access to the product will be prohibited. Once launched, these Bitcoin perpetual futures contracts, being offered through a traditional finance (TradFi) outfit like SGX, will help to blur the lines between TradFi and the emerging crypto sector. Perpetual futures have no expiry date. They offer a means for traders to bet on price changes in an underlying asset while doing away with the need to take ownership of the asset itself. Cautious approachSGX has been cautious in listing crypto assets and derivative products. Last year the firm’s CEO, Loh Boon Chye, said that the time was not yet right for such listings.  His concern back then was that any such product launches would need “sustainable ecosystem support,” adding that “that means demand, that means governance, that means structure.” While spot Bitcoin exchange-traded funds (ETFs) had been approved in the United States at that point, there has been much further development in the crypto-sphere since then, following the election of a pro-crypto administration in the U.S. That event has had knock-on effects globally. Singapore’s SGX isn’t the only traditional exchange platform to respond. Japanese futures exchange, the Osaka Dojima Exchange (ODEX), is gearing up to file an application with the Financial Services Agency (FSA) to list a Bitcoin futures product later this month. Closer to home, an American digital asset marketplace that focuses on institutional trading, EDX Markets, has plans to introduce Bitcoin perpetual futures products to the Singaporean market, according to a report which emerged in January. In May 2024, EDX launched EDXM Global, a settlement platform, in Singapore. This product launch by SGX serves the purposes of decision-makers in Singapore, who have been trying to position the city-state as a digital asset industry hub. Additionally, the move will bring greater acceptance of the digital assets sector from traditional market participants. Crypto perpetual futures contracts were first pioneered by crypto derivatives exchanges like BitMEX back in 2016. Since then, other crypto-native platforms like Binance and OKX have offered these products. In the case of unregulated offshore exchanges, the products have proven to be controversial, as at times, they have been used in a manner that has exposed market participants to counterparty risk. Failed crypto exchange FTX, together with its sister company Alameda Research, relied on the products in their trading activities. SGX, as a seasoned, regulated TradFi operator, which holds an Aa2 rating from Moody’s, is likely to prove to be a more palatable option for institutional players.