CarrieVerse secures investment from JB Financial Group and Ecrux Venture Partners

Blockchain technology and digital assets feature strongly in a fintech ecosystem report carried out by InvestHK, an agency within Hong Kong’s government responsible for foreign direct investment.Photo by Shubham Dhage on UnsplashGrowing fintech sectorThe recently published report, identified that as of July 2024, there were 175 blockchain application/software firms located in Hong Kong. In the area of cryptocurrency and digital assets, it identified the presence of 111 firms, while there were 122 payment and remittance firms. All in all, the report found that in excess of 1,100 fintech firms had been established in Hong Kong as of mid-2024. It highlights the fact that the sector has seen robust growth in Hong Kong in recent years, while making the point that this has come about in part due to “substantial resources” having been committed by the Hong Kong government to enable such growth within the local fintech sector. The report cites data from a study carried out by DataCube Research, which projects that the fintech market within the Chinese autonomous territory will reach $606 billion by 2032. This forecast incorporates an expectation of an annual growth rate of 28.5% over the course of the next eight years. As well as forecasting further growth for the fintech sector in general in Hong Kong, the InvestHK report also foresees artificial intelligence, blockchain and distributed ledger technology (DLT) and digital assets contributing to that growth. 250% blockchain startup growthThe research identifies that since 2022, there has been a 250% increase in the total number of blockchain-related startups that are located within the Hong Kong Special Administrative Region (SAR). The number of crypto and digital asset firms based in Hong Kong has grown by 30% during the same period.  Finding talentIn formulating this report, InvestHK surveyed 130 local fintech firms. One challenge that was identified through that process is the need for the appropriate talent to be in place in order to secure projected growth rates over the coming years. Hong Kong is having to compete on a global basis for appropriate fintech talent, with almost 60% of the companies surveyed by InvestHK suggesting that this is a major challenge. Taking cryptocurrencies as a key component for future growth, last year’s Bitcoin price surge led to a crypto hiring boom with some of the large global fintech companies actively hiring crypto talent.  Other centers such as Singapore are taking measures to attract that talent. Access to capital was another area of concern, with 44% of respondents indicating it as an area of difficulty. In an interview with English-language newspaper China Daily recently, Brian Ah-Chuen, managing director of ABC Banking Corp., said that InvestHK has been aggressive in its approach to certain initiatives. He said that the agency has been successful in drawing capital and talent from around the world to Hong Kong.

Global crypto exchange Binance has carried out a survey which reveals that the security habits of Asian platform users are evolving positively.Photo by Vadim Artyukhin on UnsplashUsers responding to more sophisticated scamsIn a blog post published by the crypto exchange platform on May 6, Binance revealed that it had carried out a survey of nearly 30,000 platform users across Asia. The company’s takeaway following analysis of the survey data is that “scams are evolving — and so are crypto users.” The firm suggested that users are “stepping up their security game,” with exchanges facing growing demand from their users for real-time protection and smarter security tools. Increasing use of 2FAThe exchange platform found that 80.5% of survey respondents now use Binance two-factor authentication (2FA). While the use of 2FA is definitely a move in the right direction, it doesn’t guarantee the safety of a user’s digital assets.  In an article published by Forbes last month Forbes Contributor Davey Winder warned that infostealer malware can compromise 2FA codes in as little as 10 seconds. In June of last year, an OKX user lost $2 million in crypto to a hacker who utilized AI despite the victim having used Google’s 2FA. Double-checking transfersThe survey found that 73.3% of users double-check transfers before sending digital assets. Due to the nature of decentralized cryptocurrency, crypto transactions are not easily reversed and are usually irreversible. That puts a greater responsibility on crypto users to ensure that they are sending funds to the appropriate wallet address. Double-checking transfer addresses is not only necessary due to human error. Malware is also used by hackers to spoof such addresses, tricking the sender into sending the digital assets to their address rather than the one that was originally intended. It emerged in May 2024 that a Bitcoin trader had lost more than $70 million in Bitcoin in an “address poisoning” scam. Binance itself had warned users last September that “clipper malware,” which intercepts clipboard data on a user’s phone or desktop, replacing copied wallet addresses with alternative addresses under the hacker’s control, is increasingly being employed in hacking attempts. While the survey has revealed a positive evolution in the security habits of Asian platform users, there’s still room for further improvement. Just 17.6% of survey respondents utilize address whitelisting, a measure that restricts account user access to a safe list of pre-defined trusted addresses. Only 21.5% of survey respondents use anti-phishing codes as a security mechanism. The objective of phishing is to steal data, install malware on a user’s device or otherwise gain account access. An anti-phishing code aids the user in verifying the authenticity of emails and texts from a specific service. Security remains a major issue within crypto. Last month, hackers employed social engineering tactics to steal $330 million in Bitcoin from an elderly American victim. Exchange platforms themselves continue to struggle to safeguard user funds. Earlier this year, Binance competitor, Dubai-headquartered Bybit, suffered a $1.5 billion hack believed to have been perpetrated by North Korea’s Lazarus Group. Lazarus is also thought to have been behind a $235 million crypto theft at Indian crypto exchange WazirX in July 2024.

Malaysia Ushering in Fifth Digital Asset ExchangeKuala Lumpur-headquartered crypto platform Hata has become the latest entrant in the local digital asset exchange (DAX) business, securing licensing and regulation from the Securities Commission Malaysia (SC).The brainchild of David Low, former Asia Pacific General Manager at Luno, Hata Digital Sdn Bhd, is now the recipient of conditional approval from the SC, enabling it to facilitate cryptocurrency trading once it fulfills the regulator’s stipulated requirements over the next six to nine months. The firm now joins Luno Malaysia, MX Global, Sinegy DAX, and Tokenize Technology to become the fifth regulated DAX to trade within the Southeast Asian country.Photo by Esmonde Yong on UnsplashFirst digital brokerOne interesting aspect of Hata’s approval is that it also marks the first DAX to receive digital broker status from the SC. This unique status allows Hata to display trade orders from other exchanges on its website or mobile application, giving users access to a broader spectrum of trading opportunities.Hata can match its users’ trades with those available on other exchanges or provide them with cryptocurrency prices from these exchanges. However, it is essential that the exchanges Hata collaborates with are licensed by authorities in “competent jurisdictions,” such as the Monetary Authority of Singapore (MAS), and gain approval from the SC.Low shared his vision, stating:“With the goal of challenging the existing norms, we plan to make digital assets investing easier for institutional investors, businesses, and high-net-worth individuals in Malaysia. And we look forward to launching the platform soon.”Luno competitorLow’s departure from Luno adds an intriguing dynamic to Malaysia’s digital asset industry, given his pivotal role in expanding Luno’s presence in Malaysia and Southeast Asia. At the time of his departure, Luno was widely acknowledged to have commanded over 90% of the local cryptocurrency trading market share, with some estimating it as high as 98%.Low is now stepping into the realm of competition with his former colleagues and company, where he had previously invested significant effort and resources to foster growth.Hata boasts two other Co-Founders, Darien Ng, Chief Revenue Officer, and Chong Kwai Kun, Chief Technology Officer, both with extensive expertise in blockchain technology and software development in Malaysia since 2018.Low stated that the “SC’s decision to grant us conditional approval to operate a DAX represents a vote of confidence in us and the digital asset industry. This is a significant milestone for my team and I at Hata, after months of extensive efforts.”One-stop crypto platformHe continued: “Hata wants to enable safe and effortless cryptocurrency access and we look forward to being a one-stop and reliable platform for our customers, with our suite of products and services.”Low emphasized their goal of challenging existing norms, making digital asset investing more accessible to institutional investors, businesses, and high-net-worth individuals in Malaysia.The exchange’s founder also commended the SC’s efforts in expanding the regulated market operator framework to allow DAXs to operate as digital brokers. In addition, Hata has obtained a money broker license from the Labuan Financial Services Authority, reinforcing its efforts to operate as a compliant and secure platform.