Galaxia Metaverse and ZIKTALK to Expand Blockchain and Web3 Initiatives

Midas Investments Founder Launches Locus FinanceIakov Levin, the founder of the recently failed Dubai-headquartered custodial crypto investment platform Midas Investments, has unveiled his latest project, Locus Finance, a DeFi platform.Photo by Shubham’s Web3 on UnsplashStarting overThat’s according to a recent report published by The Block. Locus Finance’s main focus lies in providing connectivity with high-yield tokenized vaults. In its initial stages, the company will introduce three yield-generating products, centered around Ethereum staking, DeFi expansion, and Arbitrum trading.Levin believes that investors are not interested in the intricacies of blockchains, protocols, or daily portfolio management. This is where vaults play a crucial role, catering to the retail yield market and generating profits for retail investors. In a statement Levin said:“Investors don’t want to worry about blockchains, protocols, transaction costs, and daily portfolio management. They need specific exposure in a set-and-forget style. Vaults represent a unique approach necessary for maturing the retail yield market, allowing for optimal wealth generation for retail investors.”With Locus Finance, Levin aims to learn from past experiences and provide a platform that meets the demands of retail investors seeking a more simplified and profitable DeFi experience. The company’s approach centers around yield generation and a seamless user experience, allowing users to focus on their investments without being bogged down by complex technicalities.Midas downfallMidas Investments, established in 2018, had seen significant success as a custodial crypto investment platform which offered yields on a range of digital assets. It managed assets worth over $250 million at its peak in 2021. However, the volatile market conditions in 2022 led to losses exceeding $50 million, forcing the company to close its doors in December 2022.The loss incurred accounted for 20% of the $250 million assets under management (AUM). The platform’s demise followed the collapse of prominent projects like Terra, FTX, and Celsius earlier in 2022. Those collapses prompted Midas Investments users to withdraw over 60% of their assets. That run on the platform rendered its fixed yield model unsustainable.Midas faced total liabilities of $115 million in Bitcoin, ETH, and stablecoins, with assets valued at $51.7 million. At the time of the platform’s collapse, Levin expressed his optimism about future plans. He disclosed plans to introduce an offering that would feature new investment strategies. Fast forward seven months and it appears that those plans have taken shape in the form of this newly-launched Locus Finance platform.However, Locus Finance’s success will be closely monitored in light of the challenges faced by its predecessor. A former Midas Investments customer took to Reddit three months ago to warn people to stay away from the new platform once launched.At that time, Midas Investments management had advised customers of its intention to start over via Lotus Finance. “Users lost tons of money and Midas got away with the bags. . . . I’d recommend staying as far away from them as possible,” the former customer warned.

A legislator in the Philippines has put forward a bill that, if passed and enacted, would see the Southeast Asian country establish a Bitcoin reserve consisting of 10,000 BTC. The proposed bill was filed with the House of Representatives as House Bill 421. Its proposer is Congressman Miguel Luis Villafuerte, a representative of Camarines Sur’s 5th district since 2022. Villafuerte also served as governor of the same province on two occasions, gaining recognition for becoming the youngest individual to assume the governorship in the Philippines.Photo by Michael Förtsch on UnsplashDrawing on developments overseasPrefacing the bill with an explanatory note, Villafuerte draws on developments related to Bitcoin in the United States. He drew attention to U.S. Federal Reserve Chairman Jerome Powell having referred to Bitcoin as “digital gold,” while pointing to a bill in the U.S. proposed by Wyoming Senator Cynthia Lummis to create a strategic Bitcoin reserve in the U.S., with the support of U.S. President Donald Trump. The bill itself, if passed and enacted, would provide a mandate to Banko Sentral ng Pilipinas (BSP), the country’s central bank, to acquire 2,000 BTC on an annual basis over a period of five years. According to Villafuerte’s proposal, that would result in the Philippines amassing a reserve of 10,000 BTC. 20-year minimum holding periodFollowing the achievement of this accumulation, the bill sets out that the leading digital asset would be locked in trust for a period of 20 years for the benefit of the country. A provision is included to establish a procedure that would enable the purchase schedule to be adjusted if a need arose to do so due to prevailing market conditions. Upon completion of the 20-year holding period, the proposed legislation calls on the central bank to present a report to Congress with recommendations as to whether Bitcoin should continue to be held or if some of the holdings should be sold off on a gradual basis. Following the expiration of that initial 20-year period, the governor of the central bank cannot recommend the selloff of more than 10% of the holding over any two-year period. Proof of reservesIn terms of sovereign nations, an early mover with regard to Bitcoin has been El Salvador. It became the first nation to establish Bitcoin as legal tender, while also establishing a Bitcoin reserve. However, the Central American nation has been criticized with regard to a lack of transparency surrounding that reserve. In the case of Villafuerte’s bill, the proposed legislation includes a requirement for the central bank governor to establish a system of quarterly proof of reserve attestations. It calls for attestations to be performed by an independent third-party auditor with expertise in auditing digital assets.The proposal comes as a number of nations are understood to be exploring the establishment of a strategic Bitcoin reserve. In April, a parliamentarian in Sweden proposed adding Bitcoin to the Nordic nation’s foreign exchange reserves. The Swedish parliament is set to debate the notion of a Bitcoin reserve next month. Meanwhile, Switzerland’s central bank has reportedly gained exposure to Bitcoin through a $253 million shareholding in Bitcoin treasury firm Strategy.

Hong Kong Web3 Companies Invest Millions in VASP LicensesWeb3 firms in Hong Kong are making significant financial investments to obtain Virtual Asset Service Provider (VASP) licenses.According to a report by Foresight News on Tuesday, the cost of these licenses is ranging between 20 million and 200 million Hong Kong dollars ($2.55 million and $25.5 million).Industry sources explained to the publication that the high costs are due to the lack of existing infrastructure in traditional financial institutions, requiring significant investments in various aspects such as products and teams. Even experienced cryptocurrency institutions find the cost of obtaining a license to be substantial.Photo by Daniam Chou on UnsplashEarly licenseesAnalysts at Foresight highlighted that several Hong Kong subsidiaries of exchanges, including OKX, BitgetX, HashKey Pro, OSL, and Gate.io, have already commenced operations. OKX, in particular, has witnessed impressive growth in Hong Kong, with 8,800 registered users and a cumulative trading volume of $150 million as of June 27.To regulate the cryptocurrency exchange industry, Hong Kong introduced new VASP licensing requirements on June 1.These requirements mandate firms to disclose user statistics and company financials to the Securities and Futures Commission (SFC) of Hong Kong for regulatory approval. Exchanges that fail to comply with the requirements will be compelled to halt operations in the special administrative region (SAR) by mid-next year.Virtual asset ratingsOn the same day, the Hong Kong Virtual Asset Consortium unveiled its virtual asset index, which encompasses major cryptocurrencies such as Bitcoin, as well as altcoins and privacy tokens. The consortium aims to offer ratings services and indexes to facilitate retail crypto trading in the SAR. Notably, it has received support from prominent players in the industry, including Huobi, KuCoin, Bitget, and others.The introduction of VASP licenses and the subsequent investments made by Web3 companies demonstrate the evolving regulatory landscape in Hong Kong. With the stringent licensing requirements, the industry aims to enhance transparency and accountability, ensuring the protection of investors and fostering a more secure environment for cryptocurrency trading.The involvement of established exchanges and the formation of the Hong Kong Virtual Asset Consortium further underscore the growing interest and support for cryptocurrencies in the region. These initiatives are designed to provide retail investors with reliable information.In that way, they enable them to make informed decisions while participating in the digital assets space. The consortium’s collaboration with industry leaders reflects a collective effort to promote the growth and adoption of cryptocurrencies in Hong Kong.Last week’s news of banking stalwart HSBC offering Hong Kong-based crypto exchange-traded funds (ETFs) to its banking customers has also delivered a shot in the arm to the development of crypto in the Chinese autonomous territory.As the regulatory framework continues to evolve and mature, it is expected that Hong Kong will attract more Web3 companies seeking to operate in a regulated and compliant environment.The investment in VASP licenses signals a commitment to long-term growth in establishing a base in Hong Kong. Ongoing developments in Hong Kong over the course of the past six months point to the recognition of the potential benefits that cryptocurrencies and blockchain technology can bring to the financial landscape of Hong Kong and level of the level of intent locally to progress the technology.