Japan’s Premier Says the Country is Committed to Fostering Web3

Hong Kong regulators signal embrace of spot crypto ETFsHong Kong has signaled its readiness to usher in spot crypto exchange-traded funds (ETFs), as the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) jointly announced on Friday that they are prepared to accept applications for such funds.Photo by Oskar Kadaksoo on UnsplashUpdated virtual asset-related policyIn a set of circulars released, a joint circular representing both regulators and a separate circular published by the SFC, they outlined the updated policy for intermediaries engaging in virtual asset-related activities.The SFC, responsible for overseeing financial markets in Hong Kong, expressed its openness to applications for the authorization of funds with exposure to virtual assets, specifically mentioning virtual asset spot exchange-traded funds (VA spot ETFs).This move expands beyond the existing crypto futures ETFs, demonstrating Hong Kong’s commitment to adapting its regulatory landscape to the evolving crypto market. It also builds on positive commentary made by SFC CEO Julia Leung on the subject last month. Leung stated that the regulator was open to the notion of retail participation in spot crypto ETFs in Hong Kong.Leung stated:“We welcome proposals using innovative technology that boosts efficiency and customer experience. We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”Use of license platformsFriday’s SFC circular emphasized that transactions conducted by these ETFs must occur through SFC-licensed crypto platforms or authorized financial institutions. The SFC outlined that both in-kind and in-cash subscription and redemption methods are permissible for SFC-authorized spot VA ETFs, providing flexibility in fund management.Custody requirements were also addressed, with the SFC specifying that the trustee or custodian must delegate its crypto custody function exclusively to an SFC-licensed Virtual Asset Trading Platform (VATP) or entities meeting the crypto custody standards set by the HKMA.Industry responseThese latest circulars from the regulators have prompted a response from the industry. The Hong Kong Stock Exchange has reacted, welcoming the announcement. It believes that such a move would serve to strengthen Hong Kong’s position as a digital asset hub in the region. The exchange already lists a number of crypto futures ETFs, with multinational investment bank UBS having recently extended access to these products to its Hong Kong-based high-net-worth clients.While the regulatory landscape in the United States in 2023 has proven to be hostile, one very positive development appears to be ongoing work towards spot bitcoin ETF approval. Although still a matter of speculation, many industry commentators believe that approval will come through on Jan. 10. The advent of spot bitcoin and crypto ETFs in both eastern and western markets would likely make for an extremely bullish 2024 for the industry.Hong Kong’s move towards spot crypto ETFs aligns with its proactive stance in adapting to the rapidly evolving crypto landscape. The regulatory framework, as outlined in the circulars, reflects a balance between fostering innovation and ensuring investor protection. The city’s financial authorities have taken a comprehensive approach to review and update policies, once again signaling their ongoing commitment to embracing the growing role of virtual assets in the financial world.

South Korea’s cryptocurrency market is moving through a period of stricter oversight and policy debate, while major industry players pursue overseas listings against a backdrop of falling market valuations and weaker investor sentiment.Photo by Ori Song on UnsplashAccording to Newsis, financial regulators are close to finalizing penalties for the country’s major crypto exchanges after a wide-ranging review of their compliance systems. The Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) is preparing to issue sanctions such as institutional warnings, fines, and personnel measures against platforms found to have breached anti-money laundering (AML) rules. These actions follow a series of on-site inspections that began in August 2024 with Dunamu, the operator of Upbit, and were later extended to Bithumb, Coinone, Korbit, and Gopax. Authorities plan to determine and announce penalties in the order of these inspections, which concluded in April 2025. Stablecoin debate growsAt the same time, a policy debate is unfolding in the parliament over how far South Korea should go in supporting digital asset innovation. The Maeil Business Newspaper reported that Democratic Party lawmaker Min Byoung-dug has questioned the Bank of Korea’s cautious stance on launching a won-backed stablecoin. The central bank has identified seven main risks associated with such an asset, including possible de-pegging and threats to monetary policy stability. Min argues that the bank is placing too much weight on these micro-level risks. In a recent report, he contended that delaying innovation could lead to larger, structural economic losses and said the risks identified by the central bank can be managed through oversight and product design rather than by avoiding stablecoins altogether. Dunamu–Naver deal targets NasdaqIn the corporate sector, major fintech firms are pushing ahead with international expansion plans. Naver Financial and Dunamu, which operates the Upbit exchange, have endorsed a merger plan involving a comprehensive share swap, according to The Herald Business. The share swap ratio has been set at 1 to 2.54. This development follows earlier reports that the two firms were close to an agreement intended to support a future Nasdaq listing in the United States. Bitcoin slide persistsThese regulatory, legislative, and corporate developments are taking place as market conditions deteriorate. Global data show weakening demand, with spot Bitcoin exchange-traded funds (ETFs) recording about $3.5 billion in net outflows in November, according to Bloomberg, while CoinMarketCap data show Bitcoin prices down roughly 24% over the past month.  Domestic sentiment reflects this caution. In a weekly survey conducted by CoinNess and Cratos, 59.5% of South Korean investors said over the weekend that they expect Bitcoin prices to fall or crash this week, up from 43.6% a week earlier. Only 12.4% of respondents forecast a price increase. Views on the broader market cycle are also shifting. In the same survey, 42.9% of participants said they believe the bull market has already ended. Reflecting this sentiment, Alternative.me’s Crypto Fear & Greed Index is at 15, in the “Extreme Fear” zone as of Nov. 26. 

Founders Exit Following Overhaul of NFT Startup RarioPolygon-based NFT platform Rario, specializing in cricket-related non-fungible tokens (NFTs), is experiencing a major transformation, with its founders, CEO Ankit Wadhwa and CTO Sunny Bhanot, departing the company after a two-year tenure.Investors in the startup are taking on a more prominent role in steering the direction of the Indian startup, according to a report from TechCrunch on Friday.Photo by Alessandro Bogliari on UnsplashDream11Dream11, a prominent Mumbai-based fantasy sports platform and one of Rario’s primary backers, alongside other investors, is said to be exerting pressure to gain greater control, resulting in the ousting of the firm’s founders. The development comes amid other significant shifts in Dream11’s leadership.Additionally, Rario is undergoing a broader restructuring effort that includes the elimination of various roles, according to sources who were cited by TechCrunch as being familiar with the matter.This recent upheaval coincides with reports of Dream11’s parent company, Dream Sports, taking measures to reduce operational costs. TechCrunch noted that Dream Sports is actively renegotiating several licensing agreements previously inked by Rario as part of cost-cutting measures.High profile investorsRario boasts a roster of high-profile investors, including global investment company Alpha Wave Global and cricket icon Sachin Tendulkar. In April 2022, the cricket NFT platform made waves by securing $120 million in a Series A funding round, asserting its dominance in the cricket NFT rights arena with over 900 cricketers on board at that time. It’s not clear what valuation the firm had at the time of the Series A funding round but in a prior round, Rario had been valued at $250 million.Founded in 2021, Rario set out with a mission to create digital cricket collectibles and foster an online community for passionate fans. By April 2021, the company had successfully sold 50,000 NFTs to sports enthusiasts spanning 20 countries.Cricket world partnershipsCricket is the second largest sport in the world with in excess of 1.5 billion fans worldwide. That leaves a lot of scope for Rario to harness NFTs to bring about new forms of engagement.Among Rario’s notable partnerships are agreements with cricket leagues such as Cricket Australia, the Australian Cricketers’ Association, the Caribbean Premier League, the Lanka Premier League, and the Abu Dhabi T10 League Legends League Cricket.Polygon changesPolygon Labs, the developer of the Ethereum-centric layer two scaling network upon which the Rario platform runs, also features India in its origin story. It too has seen upheaval at a managerial level recently. In July, the firm announced a number of senior positional changes. Its former Chief Legal Officer (CLO) was elevated to the position of CEO. Those changes saw Polygon Labs’ Indian Co-Founder Sandeep Naiwal transition to the role of Executive Chairman.Rario’s ongoing evolution reflects the dynamic nature of the NFT space, where startups must adapt to changing investor interests and market conditions. With its investors taking the reins, Rario faces a pivotal juncture in its journey to redefine how cricket fans engage with the sport through the exciting world of NFTs.