Pakistan’s crypto minister pursues talks & partnerships in the U.S.

Dunamu & Partners Invests $109M in 60 Promising StartupsInvestment firm Dunamu & Partners (D&P), a subsidiary of South Korean cryptocurrency exchange Upbit’s operator Dunamu, announced that it has made 144.4 billion KRW ($109 million) investments in 60 promising startups, as per economic news media Moneytoday.Photo by Precondo CA on UnsplashDiversified portfolioHaving commenced its operations five years ago, the investment company started investing in fintech and blockchain domains and later diversified its investments into other cutting-edge fields such as artificial intelligence (AI) and data management.AI and data managementA D&P official said that more than half of the investment (52%) has been allocated towards AI and data management. The company made initial investments in nascent startups and continued to provide additional funds to support their noticeable growth.One of the best cases is Korea Credit Data (KCD), the company behind retail revenue management solution Cashnote. After receiving strategic investment from D&P in 2018, KCD secured another 35 billion KRW ($26.4 million) last October to turn into a unicorn company, elevating its status to a unicorn company — a privately-owned startup valued at over $1 billion.Other notable companies in D&P’s portfolio include cloud-based foreign exchange payment solution Travel Wallet, AI-driven investment tech provider Qraft Technologies, and AI chip design firm Rebellions.Positive social impactD&P has also made investments in areas that generate positive social impact. D&P has committed 10 billion KRW ($7.6 million) each to whole-genome sequencing analysis company Genome Insight and knowledge-sharing platform Classum.Investments with capitalD&P invests entirely with capital and does not rely on funds for financing its investments. D&P CEO Lee Kang-joon emphasized the firm’s preemptive monitoring of market trends and its persistent investment strategy in the quest to identify the next industry trailblazer.

Kazakhstan setback for Coinbase as government blocks website accessIn alignment with the Law on Digital Assets legislation which was enacted in February, Kazakhstan’s Ministry of Culture and Information has officially confirmed that access to the Coinbase website has been blocked within the country.The development follows the enforcement of regulations prohibiting the issuance and trading of unsecured digital currencies, according to local news media.Photo by Kai Pilger on UnsplashAccusation of regulatory violationThe authorities in Kazakhstan initiated the blocking of local IP addresses from accessing Coinbase as early as September. The action was taken in response to a request from the Ministry of Digital Development. The Ministry of Digital Development accused Coinbase of violating the Law on Digital Assets, resulting in the restriction of access to the platform.The Law on Digital Assets, introduced earlier in 2023, stipulates that the issuance and circulation of unsecured digital assets are prohibited. The exception to this rule is within the Astana International Financial Center (AIFC), a designated economic zone in Kazakhstan. Permits to operate crypto trading platforms within the AIFC are issued by the Astana Financial Services Authority (AFSA).Several cryptocurrency exchanges have already received approval from the AFSA. Notable names among these approved exchanges include Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit and Xignal&MT.Reports of access issues to the Coinbase website initially emerged in September, with the local Telegram media outlet Finance.kz referring to it as the “great Kazakh investment firewall.” This firewall was not limited to Coinbase. It also affected access to other major international crypto exchanges such as Kraken.Stringent regulationKazakhstan’s approach to crypto regulation has been notably stringent, particularly concerning its significant mining sector, which ranks among the world’s largest. In October, eight leading cryptocurrency mining operators wrote an open letter to President Kassym-Jomart Tokayev, expressing concerns about the challenging conditions faced by the crypto-mining industry.Those entities included BCD Company, TT Tech Limited, Green Power Solution, Kinur Invest, KZ Systems, AI Solutions and VerCom. High energy prices for miners were cited as a significant issue, leading to what was described as a “very distressful situation” in the sector.Mining got off on the wrong footing in Kazakhstan. Following the banning of crypto mining activities in China in May 2021, there was a sudden influx of miners into Kazakhstan. As that development wasn’t planned for, it led to major stresses being placed on the country’s electricity grid. As a consequence, blackouts occurred.While this development in Kazakhstan is unwelcome news for Coinbase, the company has experienced more positive outcomes elsewhere. Last week it emerged that the U.S. crypto exchange had outperformed Q3 revenue estimates. That said, it also emerged that the exchange’s trading volumes had declined for the second consecutive quarter in a row.Kazakhstan’s move to block Coinbase access underlines the country’s determination to enforce its digital asset regulations, contributing to a growing trend of governments worldwide seeking to bring crypto-related activities under regulatory oversight.

Hivemind Capital Partners expands into Hong Kong marketHivemind Capital Partners, a prominent player in the world of Web3 and digital asset investment, has officially unveiled its plans for expanding its operations to Hong Kong.Photo by Chromatograph on UnsplashNew Head of Asia appointmentIn a press release published by the New York-headquartered firm on Tuesday, Hivemind outlined that alongside this significant Asian expansion, the company has appointed Stanley Huo as Head of Asia. Huo is a seasoned investment banker with over 15 years of experience at prestigious institutions like China Renaissance, UBS, Citi and BAML across Asia and Europe.Huo expressed his excitement, stating: “I’m thrilled to be joining Hivemind at such a transformative period. The intersection of traditional finance and burgeoning digital asset technologies in Hong Kong presents unmatched opportunities and I’m looking forward to leading our initiatives in this vibrant ecosystem.”Identifying an opportunityHivemind Capital Partners had nothing but praise for Hong Kong as a significant crypto hub. The company highlighted the distinct advantages that come with operating in the city-state, including a well-established ecosystem that facilitates access to traditional financial infrastructure, capital-raising opportunities and the exploration of blockchain-related innovations.Huo told The Block: “It was very interesting to see that the Hong Kong government welcomes all the Web3 capital and talents… They want to build up a Web3 center.”Matt Zhang, Founder and Managing Partner of Hivemind, is equally enthusiastic about the Hong Kong expansion, stating:“Our expansion into Hong Kong not only represents our firm’s growth, but our commitment to being at the center of financial innovation and technology. With Stanley leading our business in Asia, we are positioned to significantly contribute to, and influence, the evolving narrative of blockchain technology and digital assets in the region.”Zhang is a speaker at Hong Kong Fintech Week later this week, where he will participate in a panel discussion titled “The Future of Stablecoins: Exploring Virtual Asset Payment Infrastructure and the Rise of Non-USD Stablecoin Frameworks.” He founded Hivemind in November 2021, with a view towards deploying capital within verticals such as crypto infrastructure, virtual worlds, programmable money and blockchain protocols.Hivemind has been on a significant growth trajectory, as evidenced by its recent launch of a $1.5 billion investment vehicle, with available funds still waiting to be deployed. Additionally, the company introduced the Liquid Opportunity Fund, a $300 million crypto fund, earlier in the year, securing $60 million for the fund in June.Following a regional trendThe company’s move to Hong Kong aligns with the broader trend of cryptocurrency firms recognizing the region’s potential and considering it for their expansion plans. Notably, Zodia Custody, a digital asset custodian backed by Standard Chartered, recently announced its launch in Hong Kong.While Hong Kong has actively positioned itself as a hub for Web3 companies, boasting recent developments like the introduction of retail trading for licensed crypto exchanges in August, it has also faced challenges. The city recently witnessed the largest Ponzi scheme in its history, involving the embezzlement of approximately $166 million from JPEX crypto exchange users. The investigation into this incident is still ongoing.