AI chatbot usage causes concern among 70% of Japanese adults

May 1, 2023 Coin Telegraph

A local Japanese news outlet survey revealed that 69.4% of adults want stricter regulations for AI development and implementation.

Artificial intelligence (AI) chatbots are not new, but the rapid emergence of chatbots as integrations into emerging technology and society has raised public concerns.

A new survey out of Japan released on April 30 revealed major concerns among the local population over the widespread use of AI chatbots. According to the report from Kyodo News, 69.4% of Japanese want stricter regulation in the development of AI.

The poll was conducted as a part of a broader survey that touched on topics such as the current government approval rate and pandemic-related events. However, the AI component comes shortly after Japanese officials openly expressed their support for OpenAI, the company behind ChatGPT.

On April 10, Japanese Chief Cabinet Secretary Hirokazu Matsuno said the government is contemplating AI integration into its systems. However, this would only be possible if privacy and cybersecurity issues were adequately addressed.

Recently, Japan has also been pushing for a more friendly environment for innovation in the crypto and Web3 space. The country’s Web3 project team released a new white paper on April 6, on ways to expand the local crypto scene.

Governments worldwide have been raising questions about AI regulation and its impacts on society. Italy was one of the first countries to temporarily ban the usage of ChatGPT. Although officials recently said the technology could reenter the country after it agreed to transparency demands.

In Germany, regulators launched their own investigation into ChatGPT’s General Data Protection Regulations compliance. Across the European Union, lawmakers are finalizing the Artificial Intelligence Act, which will set a precedent for all member states.

Chinese authorities also announced that AI companies and the technology itself would soon be subject to mandatory security reviews following the rise in the development of the technology.

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Binance to reenter Japan via acquired regulated exchange SEBC

April 28, 2023 Coin Telegraph

Binance

Although no official date is mentioned for the launch of Binance Japan, the notice stated that the exchange could start after June.

Crypto exchange Binance is set to reenter Japan after acquiring the regulated crypto exchange platform Sakura Exchange Bitcoin (SEBC). Binance acquired the exchange — a Japan Financial Services Agency-licensed business — in November 2022, intending to reenter the Japanese crypto market.

According to a report published in a local daily, SEBC would terminate its current crypto exchange and brokerage services by May 31 and reopen as Binance Japan after June 2023. The SEBC notice didn’t announce any official launch date.

Users of the SEBC exchange must withdraw their funds before the deadline of May 28. Any funds remaining in these accounts will be automatically converted to Japanese yen by June 5 and transferred to users’ bank accounts. The users of Binance Japan would have to carry out new identity verification and Know Your Customer checks.

Binance’s reentry into Japan through an acquired entity comes nearly five years after its primary bid to obtain an independent license failed. Binance had to fold its Japan operations in 2018 after financial regulators warned it was operating without regulatory clearance from the authorities.

The leading crypto exchange has faced regulatory compliance issues in over a dozen nations. However, the exchange platform has managed to mend its relations with regulators. In many countries where it has struggled to obtain an independent license, Binance reentered these markets by acquiring stakes in regulated entities.

Before its reentry to the Japanese market, Binance managed to reenter the Malaysian crypto market after acquiring a stake in a regulated exchange platform. The exchange also reentered the Singapore market with an 18% stake in a regulated stock exchange. Similarly, the crypto platform managed to access the United Kingdom’s sterling payment network with a partnership with Paysafe despite regulators declining access to the same.

Japan is one of the first nations to introduce crypto regulations. While the regulatory requirements were considered strict then, the country has now eased regulatory demands for crypto platforms, making it easier to list new crypto tokens.

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Blockchain and crypto leaders converged at DAO Tokyo as Japan increases adoption

April 25, 2023 Coin Telegraph

Coin Telegraph

Japan has taken strides of late to adopt and integrate decentralized technologies within both government and businesses.

Japan’s regulatory and political environment for crypto and Web3 technologies has been evolving rapidly over the past several years. The Financial Services Agency of Japan reported in December 2022 it planned to lift restrictions on foreign-issued stablecoins in Japanese exchanges, which could have significant implications for the decentralized finance (DeFi) ecosystem in Japan and the wider region.

Furthermore, the Japanese government’s announcement that it plans to invest in nonfungible tokens (NFTs) and the metaverse highlights the increasing recognition of the potential of Web3 technologies to transform various sectors of society and the economy.

On the backdrop of these significant strides for blockchain and cryptocurrency, industry insiders from around the world gathered at the historic Kanda Myojin Shrine in Tokyo for DAO Tokyo 2023, a conference focused on decentralized autonomous organizations (DAOs) and organized by Fracton Ventures.

The lineup of keynote speakers spanned various sectors of the DAO ecosystem, including ENS DAO, which manages the Ethereum Name Service; Shibuya, a decentralized social media platform; the dYdX Foundation, an independent foundation dedicated to decentralized exchange dYdX; and more.

Traditions meet decentralized tech

Speakers discussed the importance of DAOs as a new paradigm for organizational governance and decision-making, and their potential to transform the art world, promote decentralized creativity, and empower local businesses and residents.

DAO Tokyo featured numerous panel discussions where participants discussed the importance of creating decentralized systems prioritizing user privacy and control, and the potential for Web3 to enable new forms of value creation and monetization.

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The panelists also discussed the potential of blockchain technology to enable new forms of trust and collaboration, particularly in industries such as finance and supply chain management. They highlighted the potential for DeFi to transform the financial industry and the challenges of regulatory compliance.

In addition to the insightful panel discussions and keynote speeches, the DAO Tokyo conference also featured a range of other activities that highlighted the potential of decentralized tech, including a campaign to mint Kanda Myojin augmented reality NFTs designed to commemorate the conference.

AFTERGLOW pic.twitter.com/Kl5iys9GxH
— TOKYOLUV (@TokyoLuv) April 15, 2023

ENS DAO created and distributed “ENS Cards” to about 120 preregistered event participants. These NFC-enabled “business cards” for the Web3 era served as NFT badges proving participants had met, a function enabled by tapping the card on one’s smartphone.

These are the unclaimed @DAO_TOKYO_XYZ @ensdomains swag cards . Please come and collect in the next 30 min as we are closing the booth. pic.twitter.com/s2oH1bskjq
— matoken.eth ETHTokyo/DAOTokyo (@makoto_inoue) April 13, 2023

It was interesting to watch how at this global event — with 90% of the audience being from outside Japan — the only people exchanging physical business cards were Japanese, symbolizing how the most recent trends come to Japan later than the rest of the globe and highlighting how Japanese society respects its traditions.

When asked why he wanted to participate in the event, Makoto Inoue, a core developer at Ethereum Name Service, noted that ENS was impressed by the vitality of the community at the previous DAO NYC event in New York and wanted to contribute to the success of the first full-fledged DAO event in Asia by sponsoring it.

He also highlighted the potential of DAOs to manage projects such as DeFi and NFTs, and said that he hoped more tools would emerge to make participation easier. Makoto noted that the cryptocurrency industry is going through a winter season, but this is an opportunity for new projects to emerge.

Jocelyn Chang, Asia-Pacific growth lead at MakerDAO, told Cointelegraph, “Asia, with many innovative projects and initiatives in the space, has a unique opportunity to play a leading role in shaping the future of DAOs. Participating in a DAO conference in Asia is an important step in promoting adoption, collaboration, diversity and innovation in the development of DAOs in the region.”

Patrick Rawson, co-founder of Curve Labs, told Cointelegraph that the dominance of Western DAOs is set to change as Asia gains momentum in the Web3 space. He said that Asia would become increasingly involved in the Web3 space as Western jurisdictions like the United States face regulatory challenges and Asian developers become increasingly involved in the blockchain and crypto industries.

What’s next?

DAO Tokyo was a reminder of the energy and creativity driving the Web3 industry forward, and of Japan’s position at the forefront of this new frontier. With a growing ecosystem of blockchain startups, investors and enthusiasts, Japan is poised to become a major player in the Web3 world.

The Japan Business Federation — also known as Keidanren — recently made a proposal that aims to make Japan a leading Web3 advanced country by 2025 by addressing various issues, such as decentralized data ownership, governance transformation and innovation in various industries.

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Keidanren listed three areas Japan could address to become a Web3 advanced country: appropriate tax measures for token ownership, revision of the law on investment business limited liability partnership agreements, and appropriate operation of the Japan Virtual Currency Exchange Association audit. The federation also proposed measures for NFTs, DAOs and the metaverse.

Japan will host several more large-scale Web3-focused conferences this summer, with Prime Minister Fumio Kishida already confirmed as a speaker at some.

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Ripple-based MoneyTap adopted by three Japanese banks

April 17, 2023 Coin Telegraph

Banks

Japanese banks like Yamaguchi, Momiji and Kitakyushu now support the MoneyTap P2P remittance service based on RippleNet.

Ripple-based payment system MoneyTap continues growing in Japan, with several local banks opening access to the application for their clients.

SBI Remit, the remittance-focused arm of the Japanese financial services conglomerate SBI Holdings, has added support of its mobile MoneyTap application to three local banks, including Yamaguchi Bank, Momiji Bank and Kitakyushu Bank, SBI Remit announced on April 17.

Yamaguchi is a major regional bank in Japan, featuring 156 branches and offices in Japan and four overseas locations. Kitakyushu Bank is a subsidiary of Yamaguchi Financial Group and has operated 24 branches since the start of the business.

The MoneyTap integration enables the Japanese regional banks to offer a peer-to-peer remittance service to their customers through a mobile application. In addition to the bank account number, the remittance service enables the online remittance function through a mobile phone number. The app also features online identity verification and biometric authentication, aiming to ensure high security for customers of Yamaguchi, Momiji and Kitakyushu.

As previously reported, SBI integrated the mobile MoneyTap settlement service in 2019, soon after launching MoneyTap in collaboration with the blockchain firm Ripple in October 2018. Based on Ripple’s blockchain solution RippleNet, the MoneyTap app is designed to enable instant domestic bank-to-bank transfers and P2P transfers for clients, initially supporting three Japanese banks, including SBI Sumishin Net Bank, Suruga Bank and Resona Bank.

In the announcement, SBI Remit reiterated that the firm merged with MoneyTap in September 2022, which allowed it to provide a next-generation financial infrastructure with high functionality and low cost.

SBI has emerged as a major partner of Ripple, supporting the company amid its ongoing legal battle with financial regulators in the United States. Morningstar, an SBI Group’s financial data subsidiary, said in 2021 it will continue its XRP (XRP) shareholder benefits program despite Ripple’s legal issues in the United States. SBI CEO Yoshitaka Kitao also said in 2021 that Japan was the most likely country for Ripple to move to if the company is eventually forced to leave the United States due to the tough regulatory environment.

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OpenAI finds fresh support from Japan amid global country-wide bans

April 10, 2023 Coin Telegraph

Japan shows support for OpenAI’s ChatGPT chatbot amid country-wide bans and uncertainties worldwide.

Japan has shown support for OpenAI amid a sea of bans by different countries and uncertainties for the artificial intelligence (AI) company.

Chief Cabinet Secretary Hirokazu Matsuno stated on Monday, April 10, that Japan would contemplate incorporating AI technology into government systems, such as OpenAI’s ChatGPT chatbot, provided privacy and cybersecurity issues are addressed.

Following an alleged data breach on March 20, Italy’s data protection watchdog temporarily blocked the chatbot on March 31 and directed OpenAI to immediately restrict data processing for Italian users while an investigation is ongoing.

OpenAI CEO Sam Altman received remarks from top government spokesperson Matsuno during his visit to Japan before meeting with Japanese Prime Minister Fumio Kishida. Matsuno stated that the Japanese government would consider adopting OpenAI’s technology if privacy and cybersecurity concerns are addressed.

After the meeting with Kishida, Altman stated that OpenAI is considering the possibility of opening an office in Japan and extending Japanese language services.

“We hope to spend much more time and engage with the wonderful talent and build something great for the Japanese people,” Altman told reporters in Tokyo Monday.

During a press conference in Tokyo on Monday, Altman expressed his enthusiasm about engaging with the remarkable talent in Japan and creating something exceptional for the Japanese people. He also said his amazement, “It really is amazing to see the adoption of this technology in Japan.”

According to Altman, he and Kishida discussed the potential of the technology and how to remove any negative aspects. They also deliberated on how to be cautious about the risks and maximize AI’s benefits for people.

Altman stated that OpenAI would strive to enhance their models' proficiency in the Japanese language and its cultural nuances. "We will return soon," he added.

Canada's privacy commissioner is investigating OpenAI, the company behind the AI chatbot ChatGPT, for allegedly collecting and utilizing personal information without consent. On April 4, the Office of the Privacy Commissioner of Canada (OPC) announced that the probe was initiated after a complaint from an anonymous individual.

Philippe Dufresne, head privacy commissioner, emphasized that his department is closely monitoring AI technology to guarantee Canadians' privacy rights protection.

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Mt. Gox repayment registrations closed: Here’s what’s next

April 7, 2023 Coin Telegraph

Coin Telegraph

The deadline for repayment registration for those affected by the Mt. Gox closed, and now the trustee released a statement on its next steps in the repayment process.

The saga of the Mt. Gox cryptocurrency exchange and the repayment of its creditors continues, as the company released a new statement as to what to expect now that its registration window has closed.

On April 7, the former exchange released a statement from its rehabilitation trustee Nobuaki Kobayashi, that said the deadline for creditors to provide their repayment information - clarification of payee and payment type- has passed.

It then went on to say that “base repayment, intermediate repayment and early lump-sum repayments” will be carried out until Oct. 31, 2023, though this final deadline “might be extended with the permission of the Tokyo District Court.”

The note also said that the trustee will carry out the “necessary preparations” to make the repayment, which includes confirmation of the selections for repayment and the sharing of the information with banks, fund transfer providers, cryptocurrency exchanges or any other custodian involved in the repayment.

For this reason, the note read: "In light of this, it is expected to take some time before the repayment is commenced.”

The initial demise of the exchange happened in 2014 when it was forced to shut down after a hack amounting to the loss of 850,000 Bitcoin (BTC). Despite the FTX catastrophe that took place in Nov. 2022, Mt. Gox's demise remains the greatest crypto robbery in history.

There have been continual delays in the situation surrounding the repayment of funds to those affected. In 2018, nearly four years later, a Japanese court approved a plan for compensation.

In March 2020, Kobayashi announced a new system for the remaining funds to be claimed by creditors, through proof of claim via bank statements, transaction records and identification documents.

The deadline for submitting claims was set for October 2020, which was subsequently pushed back to December. After all claims were received the amount came to more than available at nearly $16 billion.

In February 2023, Mt. Gox Investment Fund, the largest creditor in the situation, decided to go for the option of an early payout in BTC for 90% of what is owed, instead of waiting longer for a larger payment.

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Japan pushes for friendlier environment for crypto with Web3 proposals

April 6, 2023 Coin Telegraph

Coin Telegraph

Japan's Web3 project team released a white paper suggesting ways to expand the country's crypto industry to establish a welcoming atmosphere for crypto.

The Web3 project team of Japan's ruling Liberal Democratic Party has released a white paper containing suggestions for expanding the nation's industry, which has been incorporated into the national strategy by Prime Minister Fumio Kishida's administration.

The Web3 project team aims to bypass the usual bureaucratic processes to formulate regulatory proposals for everything from nonfungible tokens (NFT) to decentralized autonomous organizations (DAO).

In contrast to other governments seeking to implement consumer protection regulations, Japan is striving to establish a more welcoming atmosphere for cryptocurrency, as many companies have relocated to other countries due to high tax obligations.

According to the white paper, Japan must exhibit leadership during this year's G7 summit, which will address cryptocurrency issues. The document recommends that the nation focus on the potential benefits of Web3 and establish a prominent stance on technology-agnostic and ethical innovation.

Additionally, the white paper recommends additional modifications to tax regulations, acknowledging that a notable exception for token issuers has already been granted. These include tax exemptions for companies that possess tokens issued by other firms which are not meant to be traded in the short term. It suggests enabling self-assessments, allowing investors to carry forward their losses for up to three years and proposes that cryptocurrency should only be taxed when it is converted into fiat currency.

The white paper identifies a pressing concern regarding the absence of accounting standards, which has made it challenging for Web3 enterprises to locate auditors. The document recommends that ministries and agencies assist the Japanese Institute of Certified Public Accountants in creating guidelines. Additionally, it suggests that a DAO law be established, modeled after Japan's godo kaisha, which is comparable to a limited liability company. It also suggests modifications to the Companies Act and the Financial Instruments and Exchange Act.

The white paper highlights that the screening process for tokens already in circulation is becoming shorter, but the assessment of new tokens issued by foreign entities is still sluggish. It suggests that procedures should be made more transparent, enabling issuers to provide essential information for evaluation.

Last year, Japan adopted a framework for regulating stablecoins. The new white paper emphasizes the significance of preparing the environment for stablecoin registration and creating a self-regulatory organization. It also suggests developing proposals for yen-backed stablecoins.

Magazine: Samsung’s Bitcoin ETF, $700M bust, Coinbase exits Japan: Asia Express

Crypto market momentum stalls as traders await the results of recent regulatory actions

April 3, 2023 Coin Telegraph

Binance

Crypto’s bullish momentum may stall at the $1.2 trillion total market cap resistance, but traders' newfound caution has not translated to excessive demand for short positions.

Cryptocurrency markets have been trading within an unusually tight 5% range since March 17 as conflicting forces continue to pressure the sector. Consequently, in the past 7 days, the total market capitalization gained 3.8%, which was driven mainly by Bitcoin's (BTC) 3.6% price increase and Ether's (ETH) 5% gain.

*Total crypto market cap in USD, 12-hour. Source: TradingView*

On March 27, the Commodity Futures Trading Commission sued Binance and Changpeng "CZ" Zhao for allegedly violating trading and derivatives rules, heightening regulatory uncertainty. According to the lawsuit, Binance provided access to leverage for customers trading on the spot and futures markets.

The announcement came just five days after Coinbase received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), which could target the exchange's staking program, listed digital assets, wallet and Coinbase Prime services.

Similar actions occurred outside the U.S., after Japan's Financial Services Agency (FSA) March 31 announcement that several foreign cryptocurrency exchanges, including Binance, Bybit, MEXC Global and Bitget had been operating in the country without proper registration, in violation of the country's laws.

The lateralization trend that began in mid-March has repeatedly tested the crypto market’s $1.14 trillion market capitalization support. The movement suggests that investors are hesitant to place new bets until more information on the lawsuits against Binance and Coinbase is available.

Risk markets benefited from the inflationary pressure

The global banking crisis forced the Federal Reserve to use two different emergency lending programs. As a result, the Swiss National Bank provided more than $100 billion in liquidity to absorb the impact of Credit Suisse and its subsequent sale to UBS. Stocks and commodities have benefited as traditional finance investors seek alternatives to protect against inflation.

Stocks and commodities have benefited as traditional finance investors seek alternatives to protect against inflation. Since March 15, the S&P 500 index has risen 6.6%, gold has risen 4.6%, and oil prices have gained 18.6%. As a result, there are compelling arguments for both an upward and downward trend within the lateral channel which currently limits crypto's total capitalization at $1.2 trillion.

Derivatives show mixed trends, but no use of excessive leverage

Perpetual contracts, also known as inverse swaps, have an embedded rate that is usually charged every eight hours. Exchanges use this fee to avoid exchange risk imbalances.

A positive funding rate indicates that longs (buyers) demand more leverage. However, the opposite situation occurs when shorts (sellers) require additional leverage, causing the funding rate to turn negative.

*Perpetual futures accumulated 7-day funding rate on April 3. Source: Coinglass*

The seven-day funding rate for Bitcoin and Ether was neutral, indicating balanced demand from leverage longs (buyers) and shorts (sellers) using perpetual futures contracts.

Traders can gauge the market's sentiment by measuring whether more activity is going through call (buy) options or put (sell) options. Generally speaking, call options are used for bullish strategies, whereas put options are for bearish ones.

A 0.70 put-to-call ratio indicates that put options open interest lags the more bullish calls and is, therefore, bullish. In contrast, a 1.40 indicator favors put options, which can be deemed bearish.

*BTC options volume put-to-call ratio. Source: Laevitas.ch*

The put-to-call ratio for Bitcoin options volume increased to its highest level since March 9, indicating an excess of demand for neutral-to-bearish puts. This is the inverse of what happened on April 1, when call options were in higher demand.

Traders are pricing low odds of a break above $1.2 trillion

The market is pricing higher odds of downside in the derivatives market. However, given the balanced demand on futures markets, traders are hesitant to place additional bets until regulators' actions are clearer. It is unclear whether the total market capitalization will be able to break through the $1.2 trillion barrier, but professional traders are not currently betting on it.

From a derivatives market perspective, traders are pricing higher odds of downside. However, considering the balanced demand on futures markets, investors are uncomfortable placing further bets until there's a clearer picture of regulators' actions.

Uncertainty exists as to whether the total market capitalization will be able to surpass the $1.2 trillion barrier, but professional traders are currently not betting on this outcome.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Japan

Traditions meet decentralized tech

What’s next?

Risk markets benefited from the inflationary pressure

Derivatives show mixed trends, but no use of excessive leverage

Traders are pricing low odds of a break above $1.2 trillion

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