Hong Kong's Mox Bank launches crypto ETF trading

Former FTX COO Finds New Role at Sino GlobalConstance Wang, previously known for her executive roles at FTX, has recently joined crypto venture capital firm Sino Global Capital.That’s according to sources Bloomberg cited in a recent report as being familiar with the matter. Wang held the role of Chief Operating Officer at FTX and was also the Co-Chief Executive Officer of FTX Digital Markets, the affiliate of the now-defunct crypto exchange, which was based in the Bahamas. Her responsibilities at FTX included overseeing global business expansion, token listings, and public relations and marketing.Following the collapse of FTX and its sister trading firm Alameda Research, Wang has reportedly spent a significant amount of time in China, according to an undisclosed source.Sino Global Capital, founded in 2015 by Beijing-based American investor Matthew Graham, had revealed its early investment in FTX after the exchange’s collapse. The management team stems from a background in consulting, Wall Street, private equity, government, and corporate spheres. A year prior, the venture capital firm launched a $200 million fund with FTX as a key investor. Sam Bankman-Fried, the Founder of FTX, expressed gratitude for Sino Global’s support, stating that they believed in the FTX vision from the beginning and assisted in making it a reality.Photo by Henry Kobutra on UnsplashLawsuitGraham was quite public in his support of FTX and Sam Bankman-Fried. He appeared frequently on podcasts, always explaining that the FTX founder was a genius. On investing in FTX and in projects in general, Graham stated repeatedly that Sino Global maintained a high level of due diligence. Most of the leading venture capital investors in FTX (including Sino Global) have been subject to class action lawsuits filed by creditors. It’s claimed that many of these investors didn’t simply invest capital but also got involved in actively marketing what turned out to be a fraud.In January, the court-appointed management team overseeing the FTX bankruptcy proceedings sought permission to subpoena Wang and other former executives of the company. Court filings indicate that Wang has not been accused of any wrongdoing in relation to the collapse of FTX or Alameda.Prior to her tenure at FTX, Wang briefly worked at the crypto exchange Huobi in Singapore as a Business Development Manager. She also spent two years as an analyst at Credit Suisse.New rolesIn recent months, other former FTX employees have also reappeared in new roles. Amy Wu, who left Lightspeed Venture Partners to lead FTX Ventures, announced her joining Menlo Ventures, one of the oldest venture firms in Silicon Valley. Brett Harrison, former President of FTX US until his sudden resignation in September 2022, has founded a startup with plans to provide a “GPT-4-powered trading algorithm code generator.”The transition of Constance Wang and her fellow FTX alumni into new positions at face value seems like a logical progression. However, all of the FTX c-suite executives remain under ongoing scrutiny. Having brought charges against Bankman-Fried, Caroline Ellison, and Nishad Singh some months ago, Southern District of New York (SDNY) Attorney Damian Williams stated clearly that more arrests would follow.

Alchemic Investment and Nanuhm Angels Collaborate to Boost Web3 and Blockchain InvestmentsKorean deep tech investment firm Alchemic Investments announced that it has entered into a partnership with venture capital firm Nanuhm Angels to enhance investments in blockchain, Web3, artificial intelligence, and deep tech.Photo by Precondo CA on UnsplashInvesting in the future of Web3 in KoreaThe two firms will work with the city of Incheon — a metropolitan city located near the nation’s capital of Seoul — to discover promising Web3 companies while strategically investing in and nurturing startups that aspire to innovate existing businesses using blockchain technology.They will also participate in Incheon’s roadmap for fostering blockchain businesses after Incheon Technopark’s blockchain company acceleration program kicks off this year. This program supplies Incheon-based startups and small companies with the resources required to grow their blockchain businesses, thereby establishing Incheon as a blockchain hub.“Just as Japan and Hong Kong are leading the Web3 market in Asia, many Korean startups are also likely to emerge as leaders of the market once a legal foundation is established in the country,” said Min Kyung-man, CEO of Alchemic Investments.“We plan to support global expansion through our network with major overseas companies and institutions that highly value Korea’s growth potential in leading the technologies of the future.”About Alchemic InvestmentsAlchemic Investments was established in March of this year and invests in areas such as Web3, fintech, and AI. Housing seasoned professionals in asset management and strategic investment in major corporations, the company is currently in the process of recruiting investors to establish its first fund, aiming for a funding scale of 30 billion KRW (approximately $22.7 million).About Nanuhm AngelsNanuhm Angels works with partners who have experience in managing funds worth 110 billion KRW, as well as acceleration experts skilled in business model validation and refinement and investor relations. Its investment portfolio consists of companies such as Rezi, Onthelook, and NS Studio.It is also an operator of the aforementioned Incheon Technopark blockchain company acceleration program along with a consortium consisting of Web3 gaming studio Ret Games and on-chain risk rating solution developer Undefined Labs.

Korean Crypto Market’s Healthy Growth Requires Corporate ParticipationA healthy growth of the South Korean virtual asset industry needs the private sector’s investment in cryptocurrencies, a legal scholar argued at a recent international academic conference titled “Digital Financial Transition and International Trends in Commercial Law.”That’s according to a report by local news outlet Edaily. Namgung Ju-hyun, an assistant professor of commercial law at Sungkyunkwan University Law School, attended the two-day event hosted over the last weekend by the Korea Commercial Law Association to point out that the current restrictions on corporate investments in cryptocurrencies have not only increased speculation within the domestic market but have also hampered Korean companies’ endeavors in pursuing blockchain-powered projects.Banks and companiesProfessor Namgung addressed the current situation where Korean commercial banks are withholding real-name bank accounts from firms without specific legal grounds. This practice became common after the Act on Reporting and Using Specified Financial Transaction Information was revised in March 2021. This Act requires virtual asset service providers (VASPs) to adhere to anti-money laundering (AML) regulations; therefore, firms wishing to trade cryptocurrencies with the South Korean currency must have real-name accounts with domestic banks. While the Act doesn’t explicitly restrict issuing such accounts to corporations, banks have shown reluctance to do so.However, in countries like the United States, cryptocurrency trading in the corporate world is thriving. For instance, institutional investors at Coinbase, America’s largest crypto exchange, accounted for over 85% of the total trading volume in the first quarter, a rise from 76% during the same period last year.Photo by JESHOOTS.COM on UnsplashMinor altcoins’ strong presenceProfessor Namgung identified the prevalence of retail investors and their speculative behaviors as the primary issue plaguing the Korean crypto market. A case in point is a relatively large proportion of trades in minor altcoins. As per a report by the Korean Financial Services Commission (FSC), the combined market cap of BTC and ETH accounted for only 33% in the domestic market, a contrast to their 58.2% share in the global market. Namgung underscored that the high trade volumes of volatile crypto assets contribute to the Kimchi premium, a phenomenon where crypto prices in Korea are higher than those in other countries.Namgung also mentioned that Korean companies like Hyundai Motor, Lotte Homeshopping, and Shinsegae, despite promoting projects based on non-fungible tokens (NFTs), face difficulties due to their inability to convert cryptocurrencies to cash on domestic crypto exchanges. In comparison, global companies like Nike are successfully leveraging NFTs for their projects and exploring new business opportunities.Role of financial authoritiesProfessor Namgung urged Korean financial authorities to devise guidelines that encourage corporate participation in the crypto market, eliminating uncertainties. As a step towards risk management, he recommended considering publicly traded companies or established firms of a certain size as initial participants in the crypto market.Input from international scholarsPrior to Professor Namgung’s talk, the international academic conference also featured presentations from foreign scholars, namely Mirella Pellegrini, a professor at LUISS University of Rome; Marco Bodellini, an associate lecturer in banking and financial law at Queen Mary University of London; and Albert H. Choi, a professor of law at the University of Michigan Law School.Professor Pellegrini discussed personalized financial products and investor protection in the digital market from the perspective of the European Union. Dr. Bodellini provided insights into central bank digital currencies (CBDCs) from a policy perspective, while Professor Choi focused on digital transformation and retail shareholder engagement.