NH Bank Establishes Consortium to Build Security Token Ecosystem

Official Says Hong Kong Should Invest in Web3 EconomyAccording to Hong Kong’s financial secretary, Paul Chan, this is the perfect time for Hong Kong to promote the development of Web3, the next-generation version of the World Wide Web that is decentralized and distributed through the use of blockchain and similar technologies.©Pexels/Tara WinsteadLearning from the dot com boomDespite the recent instability of the virtual assets market and the collapse of some digital asset exchanges, Chan has pointed out that the quality of the real economy has improved since the dotcom bubble burst in 2000, and surviving market players have focused on technological innovation, applications and value creation.In remarks made via a blog post published on Sunday, Chan argues that the development of Web3 is going through the same process. He suggested that the next stage of development would be to focus on developing blockchain technology more deeply to find wider application for it, which would improve existing business models, ultimately benefiting users and improving the quality of the real economy.To accelerate the development of Web3, Chan allocated HK$50 million (US$6.4 million) to the Cyberport business park to organize major international conferences and youth workshops in his latest budget released in February.VASP licensingChan also announced that authorities would introduce a licensing regime for virtual asset service providers (VASPs) in June to ensure appropriate supervision and minimize risks in the innovation and development of Web3. Furthermore, the government is looking into regulating stablecoins or cryptocurrencies with their value pegged to another currency or commodity.According to some local experts, Hong Kong should not delay in pushing Web3 development, and the government should work out clear policies to attract overseas investors and Web3 developers to set up offices in Hong Kong.Working towards a Web3 hubFrancis Fong Po-kiu, honorary president of the Hong Kong Information Technology Federation, told the South China Morning Post that the government could help by building up infrastructure such as data and supercomputing centers to help small and medium-sized enterprises to adopt more advanced technology.Although IT sector veteran Joseph Leung Wai-fung agreed that Hong Kong was lagging Singapore in terms of Web3 development, he suggested that the government should step up efforts to attract overseas investors and Web3 developers by working out clear policies to support them in setting up offices in Hong Kong. He also pointed out that Web3 covers key areas such as artificial intelligence, the Internet of Things, blockchain technology, and metaverse augmented reality, and that every international smart city should explore this area.The recent fluctuations in virtual asset markets and the collapse of some online trading platforms have cast doubts on the future of Web3, but Chan believes that competent market players who survive a “burst bubble” can focus on innovation and make significant strides.The government’s efforts to accelerate the development of Web3 through the allocation of HK$50 million to the Cyberport business park, the introduction of a licensing regime for virtual asset service providers, and the regulation of stablecoins, are steps in the right direction. However, more needs to be done to attract overseas investors and Web3 developers to set up offices in Hong Kong and to build up infrastructure such as data and supercomputing centers to help small and medium-sized enterprises to adopt more advanced technology.

Dispute Embroils Bitget in Legal Battle With Crypto InfluencerBitget, the crypto exchange registered in Seychelles, finds itself entangled in a legal dispute with prominent crypto influencer Evan Luthra.Photo by Tingey Injury Law Firm on UnsplashAccount freezing allegationsThe conflict stems from Luthra’s allegations of account freezing and loss of funds after a token listing incident in March. Luthra has filed a lawsuit against Bitget, accusing the exchange of withholding $200,000 in Tether (USDT) without adequate explanation, while also freezing his account.The legal drama follows Luthra’s involvement with the Reel Star project, where he served as an advisor for the platform which is aimed at creators. As compensation for his collaboration with the project, Luthra received Reel Token (REELT), the project’s utility token.Bitget alleged market manipulationUpon the listing of REELT tokens, Luthra reportedly sold 1.3 million tokens on Bitget. In response, Bitget claims it faced a manipulative attack orchestrated by a group of traders attempting to profit from market manipulation immediately after the token’s listing. This allegedly caused a significant drop in the token’s price, prompting Bitget’s decision to freeze Luthra’s account.Bitget states that it contacted Luthra seeking an explanation for the suspicious trading behavior. Luthra acknowledged the token sale but failed to provide satisfactory reasons for his actions, according to Bitget’s version of events. The exchange maintains that user protection is its foremost priority and that it takes swift action against illegal or fraudulent behaviors.$16 million damages claimLuthra refutes the allegations, asserting his innocence and citing alleged approval from Reel Star’s Co-Founder Navdeep Sharma for his token sale plans. He seeks a substantial $16 million in damages, in addition to the frozen funds. Luthra claims that Bitget unjustly deprived him of his tokens, asserting his status as a fully KYCed user entitled to access his holdings.In the aftermath of the incident, Bitget conducted an investigation and offered a compensation plan for affected clients. Gracy Chen, Bitget’s Managing Director, emphasized the exchange’s commitment to user protection and its actions against illicit activities on its platform. Addressing the matter on Twitter, Chen didn’t hold back in her commentary on Luthra, stating that he “has a history of fraudulent activities,” which she says were exposed by crypto journalist CoffeeZilla.The legal dispute has ignited debates within the crypto community. Supporters of Luthra contend that his case underscores broader issues faced by users of centralized exchanges, shedding light on the need for improved user rights and protection. On the other hand, some argue that Bitget acted appropriately to safeguard its users and the market integrity.CZ brought into the disputeThe legal battle has attracted attention from influential figures in the crypto industry. Against a backdrop of a very public airing of the dispute on Twitter, in a recent tweet Luthra invited Changpeng Zhao (CZ), the CEO of Binance, to respond to Luthra’s claim that Bitget spreads rumors about other exchanges. CZ was having none of it, writing: “You should talk to them, right? We are not a regulator for other exchanges.”The case highlights the intricate challenges surrounding market manipulation and token listings within the crypto space. As it unfolds, the outcome could potentially set a precedent for similar situations involving token listings, market manipulation, and user protection.

2023 has been a year of significant growth for Com2uS Holdings subsidiary Com2uS Platform, which has gained recognition for leveraging blockchain technology to bring content-focused services to users around the world. "This year, Com2uS Platform has achieved high growth in all fields," said CEO Choi Seok-won, according to an article by Korean news outlet Kuki News. "In the coming year, we will not only serve as the technology hub of the Com2uS Group but also actively engage in other projects to become the center of the global Web3 ecosystem."Photo by Pawel Chu on UnsplashExpanding horizonsIndeed, the firm’s subsidiaries, including the blockchain-based game development service Hive and NFT marketplace X-PLANET, have been leading various business ventures. The former has signed contracts with 40 games from 27 gaming companies this year alone. In terms of newly signed game titles, this marks a 307% year-on-year growth. The latter, on the other hand, ranked first in sales among domestic competitors last month, arguably driven by its collaboration with Toei Animation and Korean publishing company Daewon Media on a special NFT drop celebrating the 35th anniversary of Choushinsei Flashman’s Korean release. Choushinsei Flashman is a popular Japanese live-action superhero series that aired in the 1980s, earning fans all over South Korea. In line with these efforts to pursue projects with trendy topics, the company also teamed up with South Korean game developer ArumGames to create a game utilizing Com2uS’ Bungopang IP, which will be launched next year.  Strategic alliancesCom2uS Platform's global expansion has also seen tangible results, such as a recent business partnership with Bangkok-based marketing and game service company SHIN-A, which will play a role in its foothold in Thailand, a key emerging market. Under the agreement, SHIN-A has committed to establishing a Hive team in Thailand and serving as an official global reseller. The platform has also been active in the public sector, signing contracts with various public organizations such as the Seoul Business Agency, Gwangju Information and Content Agency and Korea Creative Content Agency to train practitioners in a wide range of fields across IT and entertainment, such as the internet, AI, big data, fintech, metaverse and gaming. These projects are expected to lead to the discovery of young talent and facilitate more opportunities for collaboration with gaming companies.