Japan to implement crypto insider trading restrictions

Bhutan Launches Blockchain-Based National ID SystemBhutan, the Buddhist kingdom nestled along the eastern edge of the Himalayas, has introduced a blockchain-based National Digital Identity (NDI) system.Photo by Aaron Santelices on UnsplashDisrupting the delivery of government servicesThe blockchain-based cryptographic identity platform has the potential to revolutionize the way Bhutanese citizens access government services and conduct digital transactions. According to local Bhutanese media source BBS, the system was launched last week, giving Bhutanese citizens the opportunity to download the Bhutan NDI application directly to their mobile devices.The user-friendly application promises a seamless experience, marked by a straightforward login process. Once registered, citizens will gain access to an array of government services. These will include construction approvals, land taxes, passport services, birth and death registration certificates, as well as Royal University of Bhutan degree certificates and various business-related services, all within the confines of their digital wallets.Digital wallet alongside digital identityNotably, the development could have major implications where the future use of digital currency in Bhutan is concerned. The NDI is not just a digital identity but a digital wallet.That means that users have the option to link their bank accounts to the NDI app, facilitating financial transactions without the need to switch between multiple apps. As of now, the Bank of Bhutan is the first financial institution to integrate with the NDI app.The Royal Monetary Authority of Bhutan (RMA) entered into a collaboration with enterprise blockchain firm Ripple Labs in September 2021 to develop and trial central bank digital currency (CBDC).Streamlining service deliveryThe GovTech Agency, the driving force behind the NDI project, envisions that this digital innovation will streamline and simplify the often arduous process of interacting with government agencies. Jigme Tenzing, the Acting Secretary of the GovTech Agency, explained the transformative potential, stating:“So, essentially what this enables for Bhutan is the ability to take almost all services and make them available online. This can virtually transform how services are provided in Bhutan. This is regarded as not only services that the government provides to citizens, but it can extend to even the private sector.”Some concerns have been raised with regard to this consolidation of personal information within a single platform. The GovTech Agency has responded by emphasizing the incorporation of biometric data, including fingerprint and facial recognition, to enhance identity verification and authentication. It feels that these measures are sufficient to safeguard data privacy.Crypto investmentThere had been little in the way of news emerging from the South Asian country where decentralized technology was concerned until earlier this year when it became known that the kingdom had been an investor on the failed crypto lender platforms of Celsius and BlockFi.It had done so through Druk Holdings and Investments (DHI), the commercial arm of the Royal Government of Bhutan. In May it emerged that DHI had entered into a partnership with Singapore-based Bitcoin mining firm Bitdeer, with the intention of developing green digital asset mining operations within the country.The National Digital Identity Act of Bhutan 2023 received Royal Assent in July, solidifying Bhutan’s status as the first sovereign nation to implement a comprehensive decentralized identity framework.

Lack of Funds Sees Multichain Cease OperationsThe development team behind Multichain, a cross-chain protocol, has recently announced its decision to cease operations due to a lack of operational funds.This announcement follows a report by blockchain analytics firm Chainalysis, which suggested that insiders may have orchestrated a “rug pull” by withdrawing funds. The Multichain team took to Twitter on Friday to inform their community about the suspension of their business activities, citing a lack of alternative sources of information and operational funds as the primary reasons for their decision.One crucial factor contributing to the shutdown is the absence of communication with the CEO, Zhaojun, who had been missing and is now understood to be in the custody of Chinese authorities. The team explained that they had reached out to Zhaojun’s family and discovered that the police had seized his computers, phones, wallets, and mnemonic phrases.Photo by Christian Lue on UnsplashOperational controlThroughout the project’s lifespan, Zhaojun had maintained control over operational and investor funds. Consequently, the team, along with all their funds and access to servers, found themselves at Zhaojun’s mercy, as he now remains under police custody.Attempting to salvage the situation, Zhaojun’s sister initiated an asset preservation act and transferred some funds to addresses under her control. However, the team soon received news that Zhaojun’s sister, too, had been detained by the police and was now unreachable. Faced with these unfortunate circumstances, the team reluctantly announced the cessation of their operations.DeFi centralization risksThe debacle has raised concerns about the lack of decentralization demonstrated by the level of control Zhaojun had over the project. It prompted comment from Chris Blec, a DeFi Researcher & Analyst who has been highly critical of a whole host of DeFi projects on the basis that while many DeFi projects claim to be decentralized, they’re critically flawed and are centralized to a point that puts them at critical risk.Taking to Twitter, Blec stated: “Dude gets thrown in jail, admin keys to Multichain are on his computers, sister eventually uses his computer to steal money, now she’s in jail too. THIS IS WHY WE DECENTRALIZE.”The Multichain debacle traces back to May when the suspension of Multichain routes for an upgrade caused delays in fund transfers. The uncertainties surrounding the protocol prompted crypto exchange Binance to halt deposit and withdrawal support for certain Multichain bridged tokens.Adding to the platform’s woes, significant outflows from the Multichain MPC bridge platform raised concerns of an exploit. Observers analyzing the blockchain data reached a consensus on July 6 that the protocol had been hacked, as over $100 million worth of assets were withdrawn from the Fantom bridge on the Ethereum side.As Multichain now faces the unfortunate reality of halting its operations, it serves as a stark reminder of the challenges and risks inherent in the blockchain industry. The lack of operational funds, combined with the absence of communication with key figures and critical points of centralized failure have proven insurmountable for this cross-chain protocol.

U.S. crypto fund targets Asian investors for new $800M growth equity fundDan Tapiero, the New York-based founder of 1RoundTable Partners and 10T Holdings, is on a mission to raise between $700 million and $800 million for his upcoming fourth fund, with a recent focus on Asian investment interest.A recent report by Deal Street Asia pointed out that Tapiero has turned his attention to the potential of inward Asian investment, not least through his recent one-week business trip to the region in early December.Photo by Towfiqu barbhuiya on UnsplashInvestment vehicles1RoundTable Partners was Tapiero’s original investment vehicle, positioning itself as a growth equity fund building a portfolio focused exclusively on growth-stage blockchain and crypto projects. 10T Holdings was established more recently, targeting mid to late stage digital asset ecosystem (DAE) firms as part of its equity fund. Earlier this year, 10T was reported by Bloomberg to have $1.2 billion under management while seeking another $200 million in new funding.10T Holdings has fully deployed its three previous funds, forming a portfolio of 24 active DAE companies, including Gemini, Animoca Brands, Yuga Labs and Deribit. Tapiero’s cautious approach to valuations has been rewarded. He turned down opportunities in FTX and Celsius Network at their peaks prior to both entities failing spectacularly in 2022.Crypto equity fund resilienceThe crypto industry faced challenges, including the collapse of FTX, leading to tighter regulations and reputational damage. Venture investments in the sector saw a decline, with statistics from Galaxy Digital Holdings indicating that Q3 2023’s venture investments were below $2 billion, the lowest since Q4 2020.Tapiero is undeterred and is actively raising his fourth growth equity fund, focusing on “digital asset ecosystem (DAE) companies.” This fund, managed under 1RoundTable Partners, will primarily invest in mature DAE companies with $40–50 million in annual revenue and a market valuation exceeding $400 million. Tapiero’s strategy of targeting lower-risk, growth-stage opportunities aligns with his hedge fund legacy.Asian investor focusTapiero is actively seeking new investors in Asia for Fund IV, targeting a first close in Q1 2024. His efforts are focused on addressing the lack of growth-stage capital, particularly in Asia, where confidence in digital assets has strengthened due to crypto-friendly regulations.The veteran macro investor, who founded Gold Bullion International in 2009 prior to turning his attention to the digital assets space, sees a window of opportunity in the secondary market. Having already invested about $660 million through 10T Holdings, he notes that investors may have only a “six-month window” to capture discounted opportunities.In an interview with Bloomberg earlier this month, Tapiero outlined his view that Q4, 2023 will be the crypto sector’s “best quarter since the bull market.” He added:“We think that the bear market finished in Q4 2022. We had a sideways move for a while and then in July [2023] things sparked off with Larry Fink’s [BlackRock CEO] comments.”As Tapiero navigates the crypto landscape with a strategic focus on growth and risk management, his approach appeals to traditional investors, including major pension funds. Fund IV represents a step toward contributing to the ongoing evolution of the digital asset ecosystem. It’s on that basis that the investment industry veteran is targeting Asian limited partnerships (LPs).