Former Coinbase Japan CEO Joins Fidelity-Backed VC

Bitget Launches Blockchain4Youth ProjectSeychelles-headquartered crypto derivatives trading platform, Bitget, announced on Thursday the launch of a new corporate social responsibility (CSR) project. The initiative seizes upon an opportunity to execute on a public good while at the same time, benefiting the future prospects of the business itself alongside the overarching crypto space.Blockchain4Youth is a new initiative from the crypto business with the objective of “empowering and inspiring younger generations to use Web3 and crypto tools to create and engage in a decentralized space. ” With this goal, the trading platform believes that a blockchain future can be created.Photo by Jill Wellington on PexelYouth key to crypto adoptionWhile this is a CSR project, it’s easy to interpret it as a win/win. The future success of crypto lies with the younger demographic. They are the ones who are digitally native. They’re the ones that can more easily identify with truly digital money and digitally decentralized systems.Bitget seems to get this according to the statement it issued: “Bitget believes that a blockchain-based future is essential to building better products and tools to help people advance crypto adoption. The platform will be relying on the young generation to promote such ideas and will help them become proactive leaders.”This is telling as it demonstrates firstly that the Seychelles-based platform understands that the younger demographic represents its future customers. But it also clarifies that Bitget understands that future products need to be purpose built to meet the specific needs of that younger demographic.46% of millennials own cryptoIt appears that Bitget’s initiative is further motivated off the back of recent research it carried out. Released last month, that research study reveals that 46% of Millennial respondents said they owned cryptocurrencies, compared to 25% of Gen X-ers, 21% of Gen Z, and just 8% of Baby Boomers.The depth of the study extended to 255,000 survey responses received from respondents distributed across 26 countries, including places as diverse as the United States, Japan, China, Nigeria, Germany, Indonesia, and elsewhere. The study achieved responses per country of at least 10,000 respondents.The research also uncovered that “related statistics compiled on attitudes towards the regulation of digital assets indicate that each successive generation is more likely to factor in the attitudes of electoral candidates towards crypto regulation when casting their vote.”One of the study’s key findings is the following: “By 2030, all Gen Z members will be adults and the spread of blockchain technology by that time could lead to an increase in the percentage of cryptocurrency adopters across all generations. As such, the chances of the growth in acceptance of cryptocurrencies in the coming years are very high.”Broader industry involvementBitget intends to extend involvement in its Blockchain4Youth project beyond the company, with participation coming from other blockchain firms. The press release sets out that “the platform will also collaborate with other leading blockchain firms to incubate innovative projects by young entrepreneurs and host U30 (Under the age of 30) hackathons to identify the most promising ones.”The crypto derivatives platform is kicking things off later this month through a series of campus lectures in Thailand, Vietnam, and Taiwan covering the topic of Web3. As well as being open to collaborating with industry peers, the company also wants educators to take an active role in the initiative.

Taiwan's cryptocurrency scene has been rattled by the arrest of David Pan, the founder of ACE Exchange, a prominent cryptocurrency platform.Photo by Timo Volz on PexelsAccording to local media outlet Liberty Times, this development is part of a broader operation targeting fraudulent activities involving 13 additional suspects. Law enforcement authorities, as of now, have confiscated assets totaling around NT$200 million ($6.4 million), dealing a significant blow to the alleged fraudulent operations. A sophisticated fraud schemeThe arrest of Pan, alongside company executive Lin Nan, stems from accusations of a sophisticated fraud scheme orchestrated by the duo, along with their team. The modus operandi involved deceptive tactics, including the use of fake advertisements on popular social media platforms like Instagram and Facebook. Over the past three years, more than 100 investors have reportedly fallen victim to the scheme, losing over one billion yuan ($140 million). Lin Nan, leveraging social media, enticed potential investors with promises of quick wealth through the listing of virtual currencies on well-known exchanges. Simultaneously, David Pan lent credibility to ACE Exchange, fostering trust in the virtual currencies listed on the platform. However, investors soon discovered that the virtual currencies touted as having realizable value were, in reality, "junk coins" with plummeting values or no circulation options. Ace Exchange office raidLegal charges filed against the suspects include fraud under the Criminal Code, the Money Laundering Prevention Act and the Banking Act. Law enforcement agencies in Taiwan conducted multiple raids, including at ACE Exchange offices. Lin Nan's residence yielded NT$111.52 million ($3.6 million) in cash, with additional cryptocurrency seizures bringing the total to over NT$200 million ($6.4 million). In response to the scandal, ACE Exchange has distanced itself, asserting that the arrested individuals are not current employees. The company clarified that Pan had ceased active involvement in daily operations as of 2022. ACE Exchange is actively cooperating with the investigation and has positioned itself as a witness in the case. MOCT delistingDespite the ongoing investigation, ACE Exchange, founded in 2018 and a dominant player in Taiwan's crypto market, continues to operate, upholding regulatory obligations and prioritizing user interests. However, the incident has prompted the platform to announce the delisting of the MOCT-TWD trading pair, effective Jan. 8, in alignment with its commitment to regularly evaluate and delist tokens not meeting stringent criteria. This development occurs amid heightened scrutiny of cryptocurrency exchanges globally. CoinDCX, a major crypto investment firm, recently faced allegations of bank and crypto fraud on its mobile application. Similarly, Lee Jeong-hoon, former chairman of Bithumb, South Korea's major crypto exchange, received an eight-year prison sentence over alleged fraud, awaiting an impending appeal verdict. Taiwan, like Hong Kong, had also been dealing with the fallout from the fraudulent activity of Dubai-headquartered crypto exchange JPEX. David Pan is also the founder of the Dubai-based ZORIXchange cryptocurrency platform. Prior to crypto ventures, Pan worked for KPMG in Taiwan as its COO for startups and innovation. These cases underscore the critical need for comprehensive regulation of the crypto ecosystem. As digital assets gain popularity, the risks of fraudulent activities rise, necessitating collaboration between governments and regulatory bodies to establish and enforce stringent regulations that protect investors and uphold the integrity of virtual crypto exchanges. 

Monex Group, a well-known securities broker in Japan’s financial services sector, is delving further into the digital currency space through the acquisition of a majority stake in 3iQ Digital Holdings, a Canadian crypto asset management company. Whilst the acquisition was announced via a joint press release on Thursday, the specific details of the deal were not disclosed.Photo by sebastiaan stam on UnsplashAchieving growth through cryptoYuko Seimei, the CEO of Monex Group, emphasized the long-term strategy of strengthening their asset management business. By incorporating 3iQ into their portfolio, the aim is to achieve substantial growth by catering to the evolving crypto asset management needs of institutional investors and crypto exchanges globally. Monex Group is already a key player in the Japanese crypto landscape, owning the Coincheck exchange. Coincheck is one of the largest cryptocurrency exchanges in Japan. It has regained market dominance after a cyber attack resulting in the theft of $534 million in digital assets in 2018. Monex collaborated with Japanese telecommunications firm NTT DOCOMO in October, forming Monex Securities as a holding company containing Coincheck, while selling NTT DOCOMO a 49% stake. ETF focusThe acquisition of 3iQ marks Monex’s strategic move to extend its exposure to the North American crypto industry. This adds to the conglomerate’s existing presence in the United States through the ownership and operation of TradeStation, an American brokerage firm. 3iQ, operating under a Canadian license, has come to prominence in the crypto-sphere for launching two exchange-traded funds (ETFs) in Canada. Notably, it introduced Bitcoin and Ethereum ETFs on the Toronto Stock Exchange, showcasing innovation in a region where regulatory approval is awaited by U.S.-based companies. Spot bitcoin ETFs have been hotly tipped to offer the next form of crypto adoption, potentially facilitating the in-flow of massive amounts of money currently within the domain of traditional finance. While the focus has been largely on the United States in that regard, other centers such as Hong Kong are similarly gearing up towards offering spot ETF crypto products to both institutions and retail investors. Amid that background, this acquisition by Monex didn’t go unnoticed by ETF sector professionals. Bloomberg Intelligence ETF Research Analyst James Seyffart took to social media platform X on Thursday to draw attention to the deal. Frederick Pye, the Chairman and CEO of 3iQ, expressed enthusiasm about joining forces with Monex Group. With Monex already owning Coincheck, a crypto exchange powerhouse in Japan, Pye highlighted the potential synergy. The collaboration is seen as an opportunity to enhance Coincheck’s offerings, particularly for institutional investors. Pye characterized the partnership as a groundbreaking collaboration that promises to reshape the crypto industry. Monex’s acquisition of 3iQ is aligned with its broader vision of being a key player in the global crypto asset management landscape. The move not only expands their reach into North America but also positions them to capitalize on the growing demands of institutional investors in the evolving digital currency market.