Lion Group secures $600M facility to fund HYPE token treasury

LDP Working Group Proposes Web3 Industry Plan to Japan’s Prime MinisterJapan’s ruling Liberal Democratic Party (LDP) announced that its Working Group for Digital Society Promotion presented a proposal related to the Web3 industry to Prime Minister Kishida Fumio on Tuesday. The information was made public on the party’s website and later reported by the Korean crypto media outlet Tokenpost.Photo by Jezael Melgoza on UnsplashImproved crypto regulationsThe comprehensive 35-page study favorably reviewed the enhanced cryptocurrency regulations implemented by the Japanese government following the 2014 Mt. Gox breach and the 2018 Coincheck hack. The study credits these improved regulations for nurturing Japan’s robust Web3 ecosystem, which received global attention amidst the recent crypto winter. This term refers to a period marked by a sustained downturn in cryptocurrency values.Japanese crypto exchanges demonstrated prudence by refraining from listing most of the problematic tokens on their platforms, thereby averting panic within the market. This cautious approach was supported by Japanese law, which mandates crypto exchanges to securely store customers’ staked tokens separately. As a result, they were shielded from the repercussions of the FTX bankruptcy, which arose due to a liquidity crisis of FTT, the global crypto exchange’s native token.Significance of security tokensThe paper optimistically projected that Japan could lead the way in passing through the crypto winter ahead of other countries, citing the nation’s track record of overcoming numerous challenges in the industry. The authors highlighted the exit of speculative projects from the sector, balanced by the rise and continuous growth of new blockchain-based businesses. The report underscored the significance of tradable security tokens, which leverage blockchain technology to represent assets or rights.The adaptable nature of blockchain technology was emphasized, particularly its potential to incentivize social activities like volunteering. This versatility enables the broader public to actively participate in monitoring and addressing issues related to deteriorating infrastructure, thereby reducing associated management costs across society.Crypto taxationThe proposal also addressed the issue of crypto taxation, arguing for enhancements to the token investment environment to bolster blockchain-driven businesses. Currently, Japan taxes tokens held by corporations, discouraging domestic investment and stifling the growth of the Japanese Web3 ecosystem. To rectify this, the paper suggested exempting tokens issued by a third party from taxation if they are not intended for short-term trading.Moreover, the authors addressed the high taxation rates facing retail investors in Japan, which can reach up to 55% on income from crypto trading. This stricter tax regime compared to other countries has led many taxpayers to seek investment opportunities abroad. The authors suggested improvements to create a more investor-friendly environment.Token listing procedureThe proposal also included recommendations concerning token listings. In Japan, crypto exchanges are currently obligated to undergo a preliminary review conducted by the Japan Virtual and Crypto Assets Exchange Association (JVCEA) before listing tokens. It was suggested that the review process should be further refined to enhance efficiency.Yen stablecoinsThe authors emphasized the importance of introducing and circulating yen stablecoins to foster the growth of the Japanese Web3 industry, necessitating the development of a sustainable business model for these stablecoins.Content & Web3Furthermore, the proposal underscored the need for clear guidelines to discourage gambling behaviors and promote responsible usage within the NFT space. It advocated for the establishment of an industry organization bridging the content industry and the Web3 industry, which would facilitate collaboration and collective efforts towards a robust NFT ecosystem in Japan. Measures to protect Japanese content and data from unauthorized monetization by foreign entities were also recommended.According to an industry official who spoke with Tokenpost, Japan’s extensive preparations for the Web3 initiative have instilled confidence in the sector. The official highlighted that the country is currently exploring ways to establish connections between these new projects and existing industries, with the goal of maximizing their economic potential and generating fruitful outcomes.

Singapore’s Whampoa Digital collaborates on establishment of $100M Web3 fundWhampoa Digital, the Web3 subsidiary of privately-held Singaporean investment firm Whampoa Group, has entered into a collaboration with an Asian gaming company to establish a $100 million Web3 fund.Photo by Towfiqu barbhuiya on UnsplashFocus on Web3 in the Middle EastThe WEMIX Foundation, a subsidiary of South Korean blockchain gaming firm Wemade, announced details of the new fund via a press release published to its website on Friday.Wemade is renowned for its massively multiplayer online role-playing game (MMORPG) series Legend of Mir. This strategic collaboration aims to catalyze the expansion of the digital asset industry, with a specific focus on the rapidly growing Web3 sector in the Middle East.Reciprocal deal and project referralsThe Web3 fund initiated by Wemade is set to play a pivotal role in supporting developers at the Wemix Play Center situated in Dubai. Both Wemade and Whampoa Digital plan to engage in reciprocal deal and project referrals, particularly within the Web3 industry, and explore potential co-investment opportunities in promising projects.Aureole Foong, senior partner of Whampoa Group, expressed optimism about the partnership’s potential impact. Foong highlighted the significance of this collaboration in expanding the digital asset industry beyond established sectors and fostering innovation in the Middle East, recognized as one of the world’s fastest-growing regions in the Web3 space.Web3 gaming experienceWemade has extensive experience in the gaming sector, dating back to its establishment in 2000 and its notable creation of the Legend of Mir series, positioning it as a key player in the gaming industry. The company has diversified its portfolio by venturing into the blockchain space, launching Wemix, a tech ecosystem offering Web3 services.Wemade’s blockchain gaming platform, Wemix Play, boasts a player base of over 250,000 users. Last week the Wemix Foundation announced the launch of its una Wallet, associated with the company’s omnichain network and interoperable Web3 gaming platform.In addition to co-investing in gaming studios and blockchain projects in the Middle East and North Africa (MENA) region, Wemade is planning to establish a global Web3 gaming hub at the Dubai International Financial Centre (DIFC). The company will also set up an office for the newly formed Web3 fund at this location. The DIFC’s Innovation Hub, coupled with Wemade’s hub, will provide essential facilities and mentorship for the fund’s portfolio firms.Whampoa Digital, the investment arm of Whampoa Group, is well-versed in supporting global tech firms, including notable names like TikTok’s parent company ByteDance and crypto major Binance. In May Whampoa announced that it had plans to establish a crypto-friendly bank in Bahrain.2023 has presented challenges for Web3 investors seeking new funds. According to a report by the research arm of crypto investment firm Galaxy Digital, the average new Web3 fund size for the first nine months was $238.4 million, with a median of $50 million — both figures significantly lower than the same period last year.

Liminal, a Singapore-based digital asset custodian, has gained regulatory approval in Abu Dhabi, as part of a series of recent steps the company has taken to expand across Asia and the Middle East. Extending digital asset custody to the Middle EastTaking to the X social media platform on May 13, the company outlined that its First Answer Middle East subsidiary received Financial Services Permission (FSP) from the Abu Dhabi Global Market's (ADGM) Financial Services Regulatory Authority (FSRA) on May 9. The approval allows the firm to provide digital asset custody in the region. Liminal had initially been granted in-principle approval last year. In a series of posts, the company outlined that it sees Abu Dhabi’s regulatory framework in respect of digital assets as forward-thinking. It drew particular attention to the work of the FSRA in developing a robust framework to enable institutions to enter the digital assets space.Photo by Sohail Sarwar on UnsplashGame changerOn the actual license approval itself, the company stated, “The FSP license allows Liminal to hold, manage, and safeguard digital assets on behalf of institutions, hedge funds, venture capitalists and professional clients. This is a game-changer for digital asset custody practices in the region.” Further regional expansionOver the course of recent months, Liminal has scored a number of regulatory successes within the Asia Pacific (APAC) and Middle East and North Africa (MENA) regions. Its success within the United Arab Emirates (UAE) has not been confined to Abu Dhabi. In April, First Answer Custody FZE, a Dubai-based subsidiary company, secured initial approval from the emirate's regulator, the Virtual Asset Regulatory Authority (VARA).  Meanwhile, Liminal's Indian subsidiary, First Answer India Technologies, has been established and registered as a reporting entity. As a consequence, it has become the first digital asset custodian registered with India’s Financial Intelligence Unit (FIU), an organization that falls under the umbrella of the Department of Revenue, and  which collects financial intelligence relative to money laundering.  Making further in-roads within the world’s most populous country in November, India’s Central Bureau of Investigation (CBI) appointed the firm with a mandate to manage seized digital assets. Liminal has ties with India insofar as it was founded by Mahin Gupta in 2021, the co-founder of crypto exchange ZebPay. In an interview with CoinDesk, Manan Vora, senior vice president of strategy and business operations at Liminal stated:"We initiated a strategic drive two years ago to secure regulatory licenses in key markets across APAC and EMEA (Europe, Middle East and Africa), strategically positioning ourselves to cater to institutional clients.” Vora added: "Our strategic vision is to expand from our present technology presence in Europe and Taiwan to pushing for regulatory victories there. In Indonesia, we are already working as a technology provider for the nation's sovereign digital asset exchange." Within its home market of Singapore, Liminal was grandfathered into a new licensing system that the city-state introduced recently in respect of digital asset custody as a consequence of already having been a provider of such services in Singapore. The company has been given a grace period of six months. Within that timeframe, it intends to submit an application to local regulator, the Monetary Authority of Singapore.