SBI works with UAE’s TradeFinex to set up joint crypto venture in Japan

September 29, 2023 Coin Telegraph

Blockchain

SBI Holdings will work with UAE firm TradeFinex on a Japanese joint venture to boost the adoption of its enterprise blockchain platform on the XDC Network.

SBI Holdings and TradeFinex will look to drive trade finance adoption of the Ethereum Virtual Machine-compatible enterprise blockchain XDC Network through a new joint venture in Japan.

United Arab Emirates-based firm TradeFinex operates its own decentralized platform on the XDC Network for trade finance originators to connect to a variety of banks and lending institutions. Aimed at enterprise use cases, TradeFinex primarily provides blockchain-based trade finance products, including invoicing, letters of credit, purchase order finance and supply chain finance.

*A visual representation of TradeFinex’s trade finance stack. Source: TradeFinex.*

The XDC Network is an EVM-compatible layer-1 network with interoperable smart contracts. Its documentation describes the protocol as a “highly optimized, bespoke fork” of Ethereum that uses a delegated proof-of-stake (DPoS) mechanism to achieve fast transaction times, low gas fees and high transaction per second capacity.

XDC operates using its native XDC token, which serves as a reserve cryptocurrency for third-party decentralized applications (DApps) running on the network. The token is intended to be used for a variety of use cases, including DApp payment settlements, micropayments, transaction costs and smart contract deployment and settlement.

TradeFinex has been involved in collaborations with the World Trade Organization, the International Chamber of Commerce and various government agencies to explore blockchain as a means to overhaul the speed, transparency, costs and traceability of trade finance.

A 2020 report from the World Trade Organization highlighted TradeFinex as a network that operates “as both permissioned and permissionless: permissionless for public verification, but permissioned for selective data sharing.”

At the time of the publication, several participants were using TradeFinex, including Validus, Enigio, Ramco and the International Trade and Forfaiting Association, among others.

An announcement shared with Cointelegraph outlined the goal of the joint venture to localize XDC Network information and documentation in Japan, proliferate XDC tokens to local cryptocurrency exchanges and deploy trade finance solutions across the Asia-Pacific region.

The launch of the joint ventures comes after recent reports from Japan that its government intends to permit startups to raise funds through the issuance of cryptocurrency tokens instead of conventional stock listings.

Japan’s Financial Services Agency also announced its plans to amend its tax code related to cryptocurrencies in August 2023 to take a more active role in cryptocurrency regulation. This could include exemptions from paying “unrealized gains” tax on cryptocurrencies.

Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis

Crypto exchange Binance among firms eyeing new stablecoins in Japan

September 26, 2023 Coin Telegraph

Binance

Binance and Mitsubishi UFJ Trust and Banking Corporation (MUTB) are exploring the issuance of Yen and other foreign currency-denominated stablecoins in Japan.

Crypto exchange Binance is teaming up with Japan’s largest bank, the Mitsubishi UFJ Trust and Banking Corporation (MUTB), to explore the issuance of stablecoins in Japan.

On Sept. 25, Binance Japan announced a joint study that aims to see the companies issue yen and other fiat stablecoins to accelerate Web3 adoption in Japan. The pair plan to utilize a platform called “Progmat Coin” which would be a Japanese regulatory-compliant stablecoin issuance and management system.

The Japanese bank would be pioneering the development of the "Progmat Coin" platform as infrastructure for issuing stablecoins in accordance with Japan’s recently revised and enforced Payments Services Act. The legislation, which took effect in June, allows Japanese banks and regulated crypto providers to issue stablecoins.

*Binance Progmat logos. Source: Binance PR*

The platform supports stablecoin issuance on Ethereum but may be expanded to include BNB Chain through the partnership with Binance, Binance said in a statement.

In a statement the general manager of Binance Japan, Takeshi Chino, said stablecoins are vital for the broader financial ecosystem. In addition to providing lower-cost and instantaneous cross-border trade settlement for businesses, they also facilitate seamless crypto transactions for retail investors, he added.

Stablecoins fill an important financial services need and are crucial for the success of Web3 adoption.

According to Tatsuya Saito, MUFG’s vice president of product, Japan’s stablecoin market has the potential to grow to as large as $34 billion (5 trillion yen). This equates to around 27% of the estimated current global market which is $123.7 billion, according to CoinGecko.

Binance, which has faced a mountain of regulatory pressure in the West, started offering 34 tokens at the launch of its services for the Japanese market in August 2023.

Meanwhile, Japan's Orix Bank is reportedly also weighing plans to issue stablecoins in the country.

Orix aims to begin testing yen, dollar, and other stablecoins in October eyeing a 2024 launch. They will be backed by fiat deposits utilizing the Japan Open Chain blockchain developed by Tokyo-based G.U. Technologies and partners.

Japan appears well poised to roll out stablecoins for payment rails. In August, Cointelegraph reported that Japanese blockchain startup Soramitsu was exploring a new stablecoin exchange for a cross-border payment system for Asian countries.

Earlier this month, the Japanese government reportedly planned to permit startups to raise public funds through the issuance of crypto assets and stablecoins.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Bitcoin Adoption Fund launched by Japan’s $500B Nomura bank

September 19, 2023 Coin Telegraph

Bitcoin Adoption Fund launched by Japan’s 0B Nomura bank

Banks

The Bitcoin Adoption Fund will have long-only exposure to Bitcoin and be available to institutional investors.

Japan’s largest investment bank, Nomura’s digital asset subsidiary Laser Digital Asset Management, has launched a Bitcoin Adoption Fund for institutional investors.

The official announcement noted that the Bitcoin (BTC)-based fund will be the first in a range of digital adoption investment solutions that the firm plans to introduce.

Nomura is a Japanese financial giant with over $500 billion worth of assets and offers brokerage services to leading institutional investors. The Bitcoin fund launched by its digital asset arm will now offer investors direct exposure to Bitcoin.

The Laser Digital Bitcoin Adoption Fund offers long-only exposure to Bitcoin. The financial giant has chosen Komainu as its regulated custody partner. The Bitcoin Fund is a portion of Laser Digital Funds Segregated Portfolio Company that has been registered as a mutual fund in accordance with the Cayman Islands Regulatory Authority.

Laser Digital Asset Management head Sebastien Guglietta said that Bitcoin is one of the enablers of this long-lasting transformational change, and long-term exposure to Bitcoin offers a solution for investors to capture this macro trend.

The Bitcoin Adoption Fund might be the first of its kind launched by Nomura and its digital asset arm, but the Japanese investment banking giant has been investing in the digital asset ecosystem for quite some time already. In September 2022, the firm launched its digital asset venture capital arm to stay at the forefront of digital innovation. Earlier in August this year, Nomura’s crypto arm, Laser Digital, also won Dubai’s Virtual Asset Regulatory Authority (VARA) license to operate in the country.

The long-only Bitcoin Adoption Fund for investors in Japan comes amid a growing discussion around Bitcoin-based investment products from regulated and mainstream financial giants. The United States Securities and Exchange Commission approved two Bitcoin-based futures exchange-traded funds (ETFs) even though there is a delayed decision on spot Bitcoin ETFs. Apart from the U.S., Canada and Europe have also approved several Bitcoin-focused investment products over the past couple of years.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

Magazine: ‘Elegant and ass-backward’: Jameson Lopp’s first impression of Bitcoin

Japan to allow start-ups to raise funds by issuing crypto instead of stocks: Report

September 15, 2023 Coin Telegraph

Coin Telegraph

According to local media, Nikkei.com, this updated system is specifically applicable to a category of funds known as Investment Business Limited Partnerships (LPS).

The Japanese government reportedly plans to permit start-ups to raise public funds through the issuance of crypto, assets, such as currencies, instead of stocks, local media has reported.

According to Japanese financial news site Nikkei.com, this updated system is specifically applicable to a category of funds known as Investment Business Limited Partnerships (LPS). So far, Japan has lagged behind the rest of the world on embracing digital assets. However, this has been changing in recent months.

Japan's primary financial regulatory authority, the Financial Services Agency (FSA), made a significant move on August 31, seeking to amend the tax code related to cryptocurrencies, thereby taking a more active role in cryptocurrency regulation. The noteworthy move is aimed at exempting local businesses from the year-end "unrealized gains" tax on cryptocurrencies.

Japanese Prime Minister Fumio Kishida reaffirmed the country’s commitment to fostering the Web3 industry, in a keynote address on day one of the WebX conference in Tokyo, Japan. He highlighted its potential to transform the internet and kindle social change.

Binance recently confirmed to Cointelegraph that it would offer its services to Japanese cryptocurrency users from August onwards. This happened after the company acquired the local exchange platform Sakura Exchange Bitcoin (SEBC) in November 2022, which acquisition of the Japanese-registered crypto exchange service provider paved the way for Binance’s reentry into the country.

Cointelegraph has reached out to the Japanese government for more details and is yet to receive feedback at the time of publication.

Magazine: How to protect your crypto in a volatile market. Bitcoin OGs and experts weigh in

XRP Remittance Tech Expanded to Three Countries by $138,000,000,000 Financial Giant’s Subsidiary

September 6, 2023 The Daily Hodl

Japanese regulator seeks to scrap “unrealized gains” tax on crypto

September 5, 2023 Coin Telegraph

Coin Telegraph

Financial Services Agency has proposed to change the tax code around digital assets in a bid to free domestic firms from the end-of-the-year “unrealized gains” tax on crypto.

The principal financial regulator of Japan, the Financial Services Agency (FSA), has decided to take crypto regulation into its own hands and has proposed to change the tax code in regard to digital assets.

The request was submitted by the FSA on Aug. 31. The most notable suggestion in the 16-page document is a bid to free domestic firms from the end-of-the-year “unrealized gains” tax on crypto. In some national legislations, the legal entities have to pay taxes only after the crypto assets are sold to fiat, but in Japan, they are being taxed on a regular yearly basis.

The amendment, proposed by the FSA, has the potential to be effected, as the Agency states that the Ministry of Economy, Trade, and Industry has already supported its initiative.

As the FSA explains in its release, the reform will “improve the environment for the promotion of Web3 and promote business startups that make use of blockchain technology.”

Advocates of the crypto industry in Japan have been demanding a revision of the national tax regime for digital assets for some time. At the end of July, the Japan Blockchain Association (JBA), a non-government group, asked the government of Japan to make three major changes in regard to crypto regulation.

The elimination of the year-end unrealized gains tax on corporations holding crypto assets was the first one. The other two include switching from personal crypto asset trading profits taxation to self-assessment separate taxation, with a uniform tax rate of 20%, and the elimination of income tax on the profits generated each time an individual exchanges crypto assets.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

Magazine: How to protect your crypto in a volatile market. Bitcoin OGs and experts weigh in

Crypto Biz: Worldcoin plans to open source data, MicroStrategy preps for BTC halving, and more

August 4, 2023 Coin Telegraph

Coin Telegraph

This week’s Crypto Biz looks at Worldcoin’s expansion plans, GameStop’s exit from crypto, MicroStrategy’s quarterly results and Nomura’s crypto license in Dubai.

The launch of the controversial digital ID crypto project, Worldcoin, has stirred up a wave of attention and debate. Led by Sam Altman, the CEO of OpenAI, Worldcoin made headlines with its promise to introduce a futuristic digital identity system based on iris scanning, differentiating humans from artificial intelligence (AI) entities.

The process — proof-of-personhood — generates a unique World ID, with all biometric data stored on a decentralized blockchain. The innovation lies in the zero-knowledge proof mechanism, which enables human verification without divulging the underlying data.

Despite generating controversy from its inception, Worldcoin secured an impressive $115 million in funding in May and amassed over 2 million sign-ups before its debut. The official launch, which took place on July 24, was met with a somewhat lukewarm response.

Critics of the project, however, have raised concerns about data privacy, questioning Worldcoin’s approach to securing and managing personal information. While the project asserts its compliance with relevant laws and regulations, experts have highlighted potential vulnerabilities in its design. Cybersecurity specialists and Ethereum co-founder Vitalik Buterin have raised red flags regarding the methodology employed to generate World IDs.

The company now plans to make its technology available to businesses and governments to implement localized systems without collecting personal information, which could have several implications.

Finally, the project’s avoidance of launching its token in the United States illustrates a keen understanding of potential legal hurdles. With attention from regulatory bodies in the United Kingdom and the European Union, as well as concerns raised by industry experts, Worldcoin’s path forward is complex. The delicate balance between innovative digital identity solutions and individual rights will likely dictate the project’s fate in an ever-evolving landscape of data and privacy regulations.

This week’s Crypto Biz looks at Worldcoin’s expansion plans, GameStop’s exit from crypto, MicroStrategy’s quarterly results and Nomura’s crypto license in Dubai.

Worldcoin to allow government and businesses to use ID system

Worldcoin plans to expand operations to allow governments and businesses to utilize its iris-scanning and identity-verifying technology to boost user sign-ups. According to Worldcoin developer Tools For Humanity, the company is on a mission of “building the biggest financial and identity community” possible, enabling third parties to use its iris-scanning technology. Worldcoin intends for companies to pay to use its digital identity solution if they want to implement localized systems without gathering personal data.

GameStop will stop support for its crypto wallets, citing “regulatory uncertainty”

Gaming retail company GameStop announced plans to remove its digital wallets from the market starting in November, citing “regulatory uncertainty of the crypto space.” The wallets, launched in May 2022, allow users to manage cryptocurrencies and nonfungible tokens. GameStop advised users to ensure access to secret passphrases by Oct. 1. It’s unclear to which aspects of “regulatory uncertainty” the company was referring. GameStop is headquartered in the U.S., where lawmakers and regulators have taken controversial approaches to crypto and blockchain.

*GameStop notice to users of its crypto wallets. Source: GameStop.*

MicroStrategy returns to profit and now owns $4.4 billion worth of Bitcoin

MicroStrategy — one of the largest corporate holders of Bitcoin (BTC) in the U.S. — returned to profitability in the second quarter amid a surge in the price of Bitcoin. The company reported $22.2 million in net income, a massive swing from a net loss of $1.1 billion in 2022. Total revenues were mostly flat at $120.4 million. The company is also planning to raise up to $750 million through a stock sale and says it may use the proceeds to buy more Bitcoin to get ahead of the next halving. The firm currently holds 152,800 Bitcoin, worth ~$4.5 billion at current prices. It added 12,333 Bitcoin in the second quarter and another 467 in July.

In July, @MicroStrategy acquired an additional 467 BTC for $14.4 million and now holds 152,800 BTC. Please join us at 5pm ET as we discuss our Q2 2023 financial results and answer questions about the outlook for #BusinessIntelligence and #Bitcoin. $MSTR https://t.co/SCHeBJ80TH
— Michael Saylor⚡️ (@saylor) August 1, 2023

Nomura’s crypto arm Laser Digital bags Dubai VARA license

Japanese giant Nomura has received an operating license from Dubai’s Virtual Asset Regulatory Authority (VARA) for its digital asset subsidiary, Laser Digital Middle East. The license will allow it to offer broker-dealer and investment services, as well as virtual asset management in the emirate. Additionally, the permit allows the firm to conduct trading and asset management operations in the coming months, including over-the-counter services and a “range of digital asset investment products and solutions.”

Crypto Biz is your weekly pulse of the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

Germany is dragging Europe’s economy down — and that’s great for crypto

August 4, 2023 Coin Telegraph

Bitcoin Price

Cointelegraph analyst and writer Marcel Pechman explains how a weakening German economy — Europe’s largest — is a positive for cryptocurrencies.

In the latest episode of Macro Markets, Cointelegraph analyst Marcel Pechman discusses the recession in Germany, Europe’s largest economy. According to a recent headline in The Wall Street Journal, “Germany is dragging down Europe’s economy.“ The article explains how the country heavily depends on manufacturing, which has been hurt as foreign governments rush to protect domestic industries.

According to Pechman, Germany’s gross domestic product (GDP) ranks fourth globally, 42% bigger than France’s GDP. Moreover, manufacturing is responsible for nearly 20% of its economy. To make things worse, the manufacturing industry in Germany employs 10% of the workforce.

As the surplus (exports minus imports) reached its lowest level in 23 years, it is causing a GDP contraction for Germany, which affects the government’s capabilities to pay for its costs, including pensions and public workers. Pechman then shows how the German government threw gas on the fire with recurring interventions to save the manufacturing industry.

Pechman reminds us that the euro has a mere seven-year head start versus Bitcoin (BTC) and that an eventual weakening of Germany represents a considerable risk for the European Central Bank and the euro. Consequently, regardless of how the United States dollar is doing, the euro represents a more imminent risk and is potentially positive for cryptocurrency adoption.

Shifting the focus to the Asian market, Japan’s central bank has raised the interest rate buyback cap to 1%. According to Pechman, the bank is trying to convince the markets that it is not raising interest rates, but that’s precisely what happened. The Japanese economy has been stagnant for the past 20 years, and its debt ratio has been above 200% of the GDP since 2010.

According to a Bloomberg article, “Japanese investors are major holders of US government bonds and own everything from Brazilian debt to European power stations.“ According to Pechman, the rest of the world is concerned that Japan will have to offload its holdings in bonds, stocks and other assets, likely causing a crash in those markets.

The conclusion is that global economies are strongly interconnected, evident after the U.S. helped Europe during the banking crisis of 2023 by offering special liquidity agreements. Pechman says that at some point, the trust in this system will break, regardless of the trigger. That’s why positioning in Bitcoin makes sense, even though it is impossible to predict the timing of those events.

Check out the full episode of Macro Markets exclusively on the new Cointelegraph Markets & Research YouTube channel, and make sure to like and subscribe today!

Binance Japan begins launching trading services for residents

August 1, 2023 Coin Telegraph

Asia

The Japan-based crypto exchange said it was offering spot trading for 34 tokens as of Aug. 1, with plans to migrate global Binance users starting on Aug. 14.

Major cryptocurrency exchange Binance has announced the launch of a Japan-based arm roughly two years after receiving a warning from the country’s financial regulator.

In an Aug. 1 announcement, Binance said local crypto exchange Sakura Exchange Bitcoin has launched as Binance Japan in an effort to operate within the country’s regulatory framework. The firm said it was offering spot trading for 34 tokens as of Aug. 1, with plans to migrate global Binance users starting on Aug. 14.

We’re proud to announce that #Binance has officially launched in Japan as Binance Japan K.K.

Users in the country now have access to more tradable tokens than any other exchange, with Spot and Earn products available.

Find more details below.https://t.co/grxPYSsp84
— Binance (@binance) August 1, 2023

Japan, briefly home to Binance CEO Changpeng Zhao, was also the headquarters of the crypto exchange following the move of its operations from China. However, Binance relocated to Malta in 2018 following warnings from Japanese financial regulators on its license.

The Financial Services Agency (FSA) of Japan issued a letter to Binance in June 2021, warning the exchange for operating in the country without a license. A spokesperson told Cointelegraph at the time that the firm did not “hold exchange operations” in the country or “actively solicit Japanese users”.

Binance acquired Sakura Exchange Bitcoin in November 2022, suggesting the firm planned to re-enter the Japanese crypto market under the required regulatory regime. The company said the move was aimed at “bolster[ing] the development of the Japanese digital-asset market”, citing its growing interest in blockchain.

Japanese Prime Minister Fumio Kishida has stood behind the government’s plans to promote Web3 innovations in the country. However, other crypto exchanges including Kraken and Coinbase announced their intention of shuttering operations in Japan, citing market conditions.

Magazine: Crypto City: Guide to Osaka, Japan’s second-biggest city

Nomura’s crypto arm Laser Digital bags Dubai VARA license

August 1, 2023 Coin Telegraph

Coin Telegraph

Laser Digital said it would also launch trading and asset management operations in the coming months, including over-the-counter (OTC) service.

The crypto arm of Nomura has obtained an operating license from Dubai’s Virtual Asset Regulatory Authority (VARA) amid the Japanese financial holding’s attempts to leave its mark in the digital asset space.

Laser Digital Middle East FZE, Nomura’s Dubai-based digital asset subsidiary, announced on Aug. 1 that the new virtual asset service provider (VASP) license would allow it to offer broker-dealer and virtual asset management and investment services in the emirate.

Additionally, the permit allows the firm to conduct trading and asset management operations in the coming months, including over-the-counter (OTC) services and a “range of digital asset investment products and solutions,” the announcement said.

“VARA’s thorough and consultative process provides institutional investors with the assurance they require to engage in this asset class, said Jez Mohideen, chief executive of Laser Digital. “With the license now in place, we are looking forward to Laser’s growth over the coming years.”

Laser Digital and VARA haven’t responded to Cointelegraph’s request for further comments at press time.

Founded in September 2022 by Nomura, Laser Digital was the brainchild of Steven Ashley, the former head of Nomura's wholesale division, along with Mohideen, who served as the holding’s former chief digital officer and co-head of global markets for Europe, Middle East and Africa. It’s headquartered in Switzerland and has offices in Dubai and London.

Dubai’s growing crypto ecosystem has attracted global attention, having established its own virtual assets rules and regulatory body in March 2022. In February, the emirate’s virtual asset regulator issued its “Full Market Product Regulations,” which include four compulsory rulebooks and activity-specific rulebooks that lay down the rules for VASPS.

Laser Digital’s new license comes on the heels of Binance reaching another milestone in cementing its foothold in the United Arab Emirates. On July 31, Binance’s Dubai subsidiary, Binance FZE, obtained an operational minimum viable product (MVP) from VARA to operate cryptocurrency exchange and virtual asset broker-dealer services locally.

Aside from Binance, digital asset custodians Komainu MEA and Hex Trust MENA FZE are the only holders of operational MVP permits. Crypto exchange BitOasis, which also secured the same conditional license, had its permit suspended by VARA for not meeting mandated conditions.

Magazine: ‘Elegant and ass-backward’: Jameson Lopp’s first impression of Bitcoin

Japan

Worldcoin to allow government and businesses to use ID system

GameStop will stop support for its crypto wallets, citing “regulatory uncertainty”

MicroStrategy returns to profit and now owns $4.4 billion worth of Bitcoin

Nomura’s crypto arm Laser Digital bags Dubai VARA license

Share this video