Philippines Regulator Collaborates with US Counterpart to Tackle Crypto Fraud

HashKey’s New $100M Fund to Prioritize AltcoinsHashKey Capital, the investment arm of Hong Kong-based crypto firm HashKey Group, is embarking on a new investment journey with the launch of a fund that predominantly targets major altcoins.Photo by Kanchanara on Unsplash50% altcoin allocationIn a recent interview with Reuters, Jupiter Zheng, the Portfolio Manager of the fund, revealed that less than 50% of the fund’s allocation will be directed towards Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies.The fund has already garnered attention from potential clients, primarily high-net-worth individuals and investment firms catering to affluent, high-net-worth Asian families. Zheng underscored the fund’s commitment to diversifying investment strategies, which he believes is necessary as a consequence of the Hong Kong stock market’s recent weakness.“We see untapped demand from professional investors who wish to chase above-market returns in crypto,” Zheng noted, suggesting that the allure of crypto assets is becoming increasingly appealing to traditional investors.$1 billion assets under managementHashKey Capital has $1 billion in assets under management, and the firm has set an ambitious target of raising $100 million for the newly launched fund within the next 12 months. This allocation strategy also includes a portion of the fund’s holdings in cash, allowing for flexibility in navigating the dynamic and volatile cryptocurrency market.In addition to forging ahead with crypto investments, the company is actively establishing distribution channels with offshore Chinese financial institutions, expanding its reach and influence in the digital asset space.Positive market outlookZheng remains optimistic about the crypto market’s future, expressing confidence that cryptocurrency prices are finding stability as industry liquidity improves. He cited several factors contributing to this stabilization, including the plateauing of US interest rates and the growing interest of large US asset managers in filing for spot Bitcoin ETFs, indicating a maturing and evolving industry sector.Responding to news of the new fund, Ryan Selkis, CEO and Founder of crypto market intelligence firm Messari, said that he expected other funds to follow suit in 2024 given that “there’s a ton of inefficiency and mispricing in assets 50–500 by market cap.”HashKey’s progression in the crypto investment space can be traced back to its acquisition of a Type 9 asset management license from Hong Kong’s Securities and Futures Commission last year. This license granted HashKey the ability to manage portfolios exclusively composed of virtual assets, laying the groundwork for its latest venture. It has since secured Type 1 and Type 7 licenses and recently started offering its products to retail investors in Hong Kong, being one of the first to do so.Funding roundEarlier in the year, the company successfully closed a $500 million investment round for a fund dedicated to infrastructure, tooling, and applications that drive the widespread adoption of blockchain and crypto technologies. In April, it launched a wealth management service in response to demand from investors who were looking to gain exposure to digital assets.Hong Kong’s welcoming stance towards cryptocurrencies and its proactive approach to addressing market demand for alternative assets have played a pivotal role in attracting digital asset firms. The city’s Securities and Futures Commission (SFC) has been granting licenses to crypto exchanges in alignment with its new licensing framework, opening up opportunities for retail investors to trade “large-cap tokens” on licensed platforms while implementing safeguards like knowledge tests, risk profiles, and reasonable exposure limits.

Overseas Crypto Holdings Declared to Korean Tax Agency Amount to $98BIn a recent press release from the South Korean National Tax Service (NTS), it was revealed that this year, a record 5,419 Koreans declared overseas financial assets amounting to KRW 186.4 trillion. This is a notable jump from the previous year, marking a 38.1% rise in the number of declarants and an impressive 191.3% increase in the declared amount.Photo by Traxer on UnsplashRecord-breaking declarationsThese are the most significant figures reported since the 2011 inception of the overseas financial account reporting system, which requires Korean individuals and entities to disclose their foreign financial holdings, like savings, stocks, collective investment schemes, and derivatives, if their balance exceeds KRW 500 million.The NTS attributed the record-breaking figures to foreign crypto accounts, a new addition to this year’s overseas account declaration.Crypto’s dominanceVirtual assets comprised a staggering 70.2% of the total declared amount, overshadowing all other assets. 1,432 individuals and corporate entities reported crypto holdings amounting to KRW 130.8 trillion (approximately $98 billion).Decline in non-virtual assetsFor non-virtual asset accounts, including deposits, savings, and stocks, the reported figure stood at KRW 55.6 trillion, marking a year-on-year drop of KRW 8.4 trillion, or a 13.1% decline.Call for complianceIn the future, the NTS plans to leverage data shared between countries to rigorously check for potential non-compliance in reporting overseas financial accounts. Those suspected of omissions can expect strict actions, including fines, criminal charges, public name disclosure, and the collection of related taxes.After the reporting deadline, filers may be eligible for a penalty reduction of up to 90%. Importantly, tax agencies worldwide, including the NTS, are gearing up to share information like cryptocurrency transaction details under the Crypto Asset Reporting Framework. In light of this, the NTS strongly encourages those who haven’t yet reported but are obligated to to promptly declare their overseas virtual asset accounts.

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.