- Snapshot Web3
- Posts
- Hong Kong Regulator Issues Tokenized Investments Requirements Amid Demand 🇭🇰💵
Hong Kong Regulator Issues Tokenized Investments Requirements Amid Demand 🇭🇰💵
PLUS: SK Telcom to launch Web3 wallet with Aptos and Atomrigs Lab. Moody’s unveils service that uses AI to predict stablecoin depeggings.
Manan Vora
November 07, 2023
Snapshot Web3
November 7, 2023
👨⚖️
Regulatory and Legal News
The Securities and Futures Commission (SFC) of Hong Kong has issued business requirements for offering tokenized securities and investment products. The move is in response to increasing market demand for tokenized investments and the potential benefits of blockchain technology. The SFC outlined 12 key points, focusing on tokenization arrangements, disclosure, intermediaries, and staff competence. Providers are expected to take full responsibility for their tokenized products, ensure effective record-keeping, and demonstrate operational soundness. Additionally, they should disclose whether settlements occur off-chain or on-chain, and have competent staff to manage the tokenization process and associated risks appropriately.
On November 6, the UK's Financial Conduct Authority (FCA) and the Bank of England (BOE) released a suite of documents outlining their approach to stablecoin regulation. The FCA's discussion paper detailed potential retail and wholesale use cases, focusing on aspects like auditing, asset backing, and custodianship. The BOE paper examined the use of retail-focused stablecoins in systemic payment systems, considering transfer functions and requirements for wallet providers. The BOE emphasized the need to clearly differentiate between e-money or regulated stablecoins and other types of deposits to avoid customer confusion. The implementation of stablecoin regulation is expected by 2025.
🚀
Innovation and Launches
SK Telecom (SKT), a major South Korean telecommunications operator, is set to launch a Web3 wallet service called T wallet in collaboration with Aptos Labs and Atomrigs Lab. The initiative aims to provide a seamless and secure Web3 experience for users by integrating with customer-preferred mainnets and decentralized applications. This partnership will also involve the integration of T wallet into Aptos' DApp ecosystem and adoption of its MoveVM blockchain technology. South Korea's National Tax Service recently revealed that residents hold over 70% of their overseas assets in cryptocurrency.
Moody’s Analytics has introduced a new stablecoin service called Digital Asset Monitor (DAM) that employs artificial intelligence to predict possible depeggings within a 24-hour time frame. The service will track 25 fiat-backed stablecoins, representing over 92% of the total stablecoin market capitalization, and assess various factors including market and liquidity dynamics, issuer stability, custodians, and reserve quality. DAM aims to provide real-time insights into stablecoin issuers’ liquidity and stability, as well as offer a transparency index to highlight the quality of disclosures made by the entities behind these stablecoins.
♾️
NFT, Gaming and Metaverse
Sandra Helou, CEO of MetaMinds Group, believes that the failure of some metaverse projects can be attributed to a lack of proper business models tailored for enterprises. She emphasizes that achieving success in the metaverse requires a long-term vision, dedicated teams, and substantial funding, rather than focusing on short-term gains. Helou also highlights the importance of addressing accessibility and interoperability in the metaverse space to ensure its longevity and relevance. She praises Dubai and the wider UAE for their crypto-friendly policies, making it an attractive hub for Web3 and metaverse projects. She believes that the regulatory approach in the UAE will likely differ from that of the United States, favoring a more constructive approach over strict enforcement.
💰
Funding
Glassnode, a cryptocurrency intelligence firm, has sold its crypto tax platform, Accointing, to Blockpit, a European crypto compliance provider. The companies did not disclose the exact terms of the deal, but it was described as a "multimillion-dollar deal." Glassnode made the decision to exit the crypto tax space in order to focus on delivering new Digital Asset Intelligence Solutions for institutional clients, as well as expanding into decentralized finance (DeFi) data solutions. The sale of Accointing to Blockpit comes just a year after Glassnode acquired the tax platform. Blockpit plans to merge the two platforms and create a consolidated and unified crypto tax platform for Europe.
📚
Interesting Reads
Lugui Tillier, Sales Manager at Lumx Studios in Rio de Janeiro, discusses his journey into the crypto space, emphasizing the importance of proper business models for metaverse projects. He highlights Lumx's role in providing blockchain solutions for enterprises and shares his investment interests, particularly in layer 2 solutions and Bitcoin-based NFTs. Lugui envisions Bitcoin evolving into a versatile platform for storing and trading various assets, and underscores the need for simplified blockchain infrastructure to drive mass adoption. In his free time, he studies stoicism, finding solace in its teachings amidst the dynamic crypto industry.
🔗
Quick Links
The exchange’s share in crypto spot trading has been slashed by one-third over the past year.
As Telegram prepares to roll out Wallet as a native setting on the messenger in November, it’s important to understand why Wallet opted for custody over self-custody.
🌐
Miscellaneous
Rain Lõhmus, founder of Estonia's LHV Bank, possesses a wallet containing 250,000 Ethereum (ETH) acquired during the Ethereum initial coin offering, now valued at $470 million. However, Lõhmus has lost access to the wallet's keys, and is seeking assistance in recovering the funds. He stated that if someone can help, he is willing to share the recovered amount. Lõhmus acknowledged that losing passwords is common for him and emphasized the vulnerability of blockchain systems in terms of fund access. The initial purchase of the Ether was $75,000, with the value skyrocketing to $1.22 billion at its peak.
Ava Labs, the team behind the Avalanche blockchain, has confirmed a 12% reduction in its workforce, with around 40 employees affected. The move is aimed at reallocating resources to bolster the growth of the firm and the Avalanche ecosystem, according to CEO Emin Gün Sirer. The layoffs, which reportedly included members of the marketing team, came as a surprise to some affected employees who believed the company was in a growth phase. This follows a recent 50% staff cut by NFT marketplace OpenSea and reflects the ongoing challenges in the crypto job market, which some experts attribute to the need for clearer signs of a bullish market before hiring fully rebounds.
Liked the newsletter? Share it with your network.
The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
Reply