Hong Kong Setting High Bar on Crypto Rules

Sega Curbs Interest in ‘Boring’ Blockchain GamingJapanese video game behemoth Sega Corp., once an advocate for blockchain gaming, is reevaluating its involvement in the sector as the global crypto industry continues to face challenges.In a recent interview with Bloomberg, Shuji Utsumi, the Co-Chief Operating Officer of Sega, revealed that the company will withhold its major franchises from third-party blockchain gaming projects to protect the value of its content.Photo by Pat Krupa on UnsplashHalting blockchain game developmentAdditionally, Sega is temporarily halting the development of its own blockchain games. These decisions mark a significant shift for the 60-year-old gaming studio, which previously joined other industry players in exploring the potential of blockchain technology to enhance game appeal. However, the recent collapse of the digital currency market has dampened enthusiasm for such initiatives.While Sega withdraws from blockchain gaming, it does plan to allow external partners to utilize its lesser-known characters, such as those from Three Kingdoms and Virtua Fighter, for non-fungible tokens (NFTs). NFTs serve as digital asset ownership certificates.Sega’s intention to venture into the NFT community drew criticism from some gamers who viewed crypto technology as environmentally harmful. Utsumi emphasized the importance of creating enjoyable gaming experiences and expressed his skepticism about the “play-to-earn” model associated with blockchain games, describing such games as “boring.”Reservations on Web3 adoptionIn addition to the uncertainties surrounding blockchain gaming, Utsumi expressed reservations about the adoption of Web3 technology in Sega’s upcoming “super game” initiative. This initiative involves the release of high-budget online multiplayer games starting in 2026. Sega is currently assessing whether the technology will gain traction in the gaming industry before committing to its implementation.Sega’s strategic shift reflects a broader cooling trend relative to the Web3 concept, which implicates an internet built on blockchain technology. Despite attracting significant investments in the past, Web3 has faced criticism and diminishing interest from major players like Ubisoft.However, Sega will continue to offer its lesser franchises to several blockchain games that will be announced later this year. The company also plans to invest hundreds of millions of yen in related projects, as the technology still holds value in enabling the transfer of characters and items between different games. Sega remains open to further involvement in blockchain gaming as the technology matures.Big brand cautiousnessUtsumi acknowledged that the views expressed by blockchain advocates may seem extreme to many in the video game industry. Nevertheless, he recognized the importance of risk-takers who pioneer new technologies, referring to them as the “first penguins” who should not be underestimated.Sega’s cautious approach reflects the need to strike a balance between innovation and maintaining the core aspects of enjoyable gaming experiences, while closely monitoring the evolution of blockchain and Web3 technologies in the industry.It’s also likely that the gaming sector’s most coveted brands will remain cautious on blockchain gaming while newcomers like Animoca Brands can better afford to be the risk takers that drive blockchain gaming forward. Earlier this week, Animoca’s Co-Founder Yat Siu said that he was bullish where blockchain gaming is concerned.

MultiBank Group, a global financial derivatives company headquartered in Dubai, has partnered with two other United Arab Emirates (UAE)-based firms, real estate giant MAG and tokenized real-world asset (RWA)-focused blockchain infrastructure provider Mavryk, in a $3 billion tokenized real estate deal.Photo by Tierra Mallorca on UnsplashWhile a large proportion of MAG's business activities center around the Dubai real estate market, MAG Group is a multinational conglomerate with a portfolio that includes commercial and residential developments and high-end luxury real estate projects.  According to a press release published on May 1, this $3 billion deal implicates MAG’s luxury developments, such as The Ritz-Carlton Residences in Dubai and other properties located within the Keturah Resort and Keturah Reserve in the UAE’s most populous city. These properties will be tokenized and hosted on the blockchain through MultiBank.io’s regulated tokenized RWA marketplace. Mavryk will provide the necessary infrastructure, with the tokenized assets running on its blockchain network. The deal provides another indication of the growing role of tokenization, with it being the largest tokenized RWA deal to have been put together to date. The Mavryk Network testnet was launched in February, with Mavryk Network developer Mavryk Dynamics securing $5 million in funding to establish a tokenized RWA network economy. In this instance, Mavryk will provide support in terms of on-chain asset issuance and DeFi integrations. Not just a real estate dealTalal Moafaq Al Gaddah, senior executive vice chairman of MAG, said that the project “marks a milestone in broadening access to high-value developments and unlocking liquidity via blockchain.” Al Gaddah also commented on the MBG token, stating:“$MBG token provides ecosystem utility, including trading discounts, early access to properties, and a deflationary buyback-and-burn model.” MBG is a MultiBank utility token which features deflationary tokenomics. It will be used to enable staking and lower trading fees. The token is scheduled to be launched on June 2. MultiBank.io Founder and CEO Zak Taher highlighted the importance of the token launch alongside this tokenized real estate deal. He stated:“This isn’t just a real estate deal — it is a flagship use case for the $MBG token. By enabling seamless access to $3B in tokenized property, MultiBank becomes the bridge between regulated finance and next-generation investment infrastructure.” Dual utilityAl Gaddah referred to the duality of the tokenized real estate offering:“Tokenized assets issued by MultiBank will have dual utility. Within the MultiBank Group, they can be used as collateral for derivatives, creating a seamless bridge between traditional finance and tokenized assets.” RWA tokenization has been gaining momentum within the UAE recently. It emerged last month that the Dubai Land Department (DLD), a government agency responsible for the registration of real estate in Dubai, had signed an agreement with local regulator the Virtual Assets Regulatory Authority (VARA) to integrate tokenized real estate within existing systems.  Around the same timeframe, blockchain technology firm Serenity signed a partnership with Dubai’s MTA Real Estate to develop a tokenized real estate platform. Last year RWA-focused layer-1 blockchain project MANTRA Chain announced that it would tokenize $500 million in real estate assets in Dubai.

Hong Kong Police Issue Warning as Binance Users Lose Funds to Phishing ScamHong Kong has witnessed a surge in phishing scams targeting Binance users, prompting local law enforcement to issue a cautionary advisory.Photo by Serey Kim on UnsplashCyberDefender warningThe warning was issued by Hong Kong police via its CyberDefender Facebook page on Monday. Over the past two weeks, at least 11 Binance customers in Hong Kong fell victim to phishing scams, collectively losing over $446,000 (equivalent to HKD 3.5 million). These scams primarily involve fraudulent text messages.According to Hong Kong police, these fraudulent text messages claim to be from Binance and ask users to verify their accounts by clicking on a link provided within the message. On Facebook, the warning stated:“Recently, fraudsters posing as Binance sent text messages claiming that users must click the link in the message to verify their identity details before a deadline, otherwise their account would be deactivated.”Upon clicking the phishing link and entering their login credentials to “verify” their accounts, victims unwittingly grant fraudsters full access to their Binance accounts. This modus operandi mirrors the tactics commonly employed in phishing scams.CZ chimes inBinance CEO Changpeng Zhao (CZ) also joined in the cautionary chorus, issuing a warning to customers on his X account.The crypto sector in Hong Kong has been facing challenges recently, largely related to the recent JPEX fraud case. The losses incurred from the JPEX exchange scandal have swelled to an estimated $180 million, with over 2,300 victims filing complaints with local authorities.The JPEX scandal led to multiple arrests in Hong Kong and prompted authorities to intensify their efforts against illegal crypto activities. The Securities and Futures Commission (SFC) of Hong Kong introduced regulations mandating the licensing of all crypto exchanges operating within its jurisdiction earlier this year.To date, only two exchanges, HashKey and OSL, have secured licenses under this regulatory framework. Numerous other crypto exchanges in Hong Kong have submitted license applications, but Dubai-headquartered JPEX, despite heavily promoting its application for a Hong Kong license, failed to submit an application to the local regulator. In the wake of the JPEX scandal, the SFC published a comprehensive list of companies seeking crypto licenses and expanded its list of suspicious platforms.Cyber security firm Kaspersky found earlier this year that phishing related to crypto trading is on the rise in Asia, particularly in the Philippines. Binance’s CZ has had to issue warnings where phishing is concerned on previous occasions. He did so in July when the founder of decentralized crypto exchange (DEX) Uniswap was hacked.In February of last year, CZ came out again to warn users of a massive SMS-related crypto phishing scam. Back in 2018 a serious attempt was made to compromise the credentials of Binance platform users via phishing techniques.As phishing scams continue to pose a significant threat to crypto users in Hong Kong, and with the aftermath of the JPEX debacle still reverberating through the industry, vigilance and caution remain paramount for participants in the region’s crypto ecosystem.