Japan’s primary financial regulator, the Financial Services Agency (FSA), has taken a proactive stance on crypto regulation, proposing alterations to the tax code governing digital assets.
The FSA’s request, submitted on August 31, aims to revise the taxation framework in a bid to stimulate the growth of domestic firms in the crypto sector.
The most significant recommendation within the FSA’s comprehensive 16-page proposal is the exemption of domestic companies from the “unrealized gains” tax on cryptocurrencies that is currently applicable at the end of each fiscal year.
While some nations only levy taxes when crypto assets are exchanged for fiat currency, Japan imposes yearly taxes on these digital holdings.
Crucially, the proposed amendment enjoys potential acceptance prospects, with the FSA highlighting that the Ministry of Economy, Trade and Industry has already provided its backing to the suggested changes.
The FSA’s rationale for these regulatory adjustments, as outlined in its official statement, revolves around enhancing the ecosystem for the advancement of Web3 technologies.
The proposed changes aim to foster an environment conducive to blockchain-based business startups.
The crypto industry’s proponents within Japan have long been advocating for a recalibration of the national tax structure concerning digital assets.
The Japan Blockchain Association (JBA), an independent entity separate from the government, recently submitted a set of three key requests aimed at reshaping the regulatory landscape for cryptocurrencies.
Among these requests, the foremost is the elimination of the year-end unrealized gains tax imposed on corporations holding crypto assets.
Additionally, the JBA has proposed transitioning from the prevailing tax structure, which taxes individual crypto trading profits, to a system of separate self-assessment taxation, with a standardized tax rate of 20%.
Furthermore, the JBA seeks to eradicate income tax on profits resulting from the exchange of crypto assets by individuals.
Japan’s financial landscape appears to be adapting to the evolving digital asset sector, as regulatory entities like the FSA and advocacy groups such as the JBA actively collaborate to ensure a favorable environment for blockchain innovation and entrepreneurial endeavors.
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OKX, a prominent cryptocurrency exchange, is on the cusp of securing a virtual asset service provider license (VASP) in Hong Kong, marking a significant stride towards formal approval.
The exchange anticipates the green light for its VASP license by March 2024.
Li Zhikai, the Global Chief Commercial Officer of OKX, conveyed in an interview that the exchange is actively engrossed in conversations with banks, eagerly awaiting the issuance of the license to initiate operations.
The preparatory groundwork, including technology integration, has already commenced.
Hong Kong, having embraced a pro-crypto stance in 2023, unveiled a regulatory framework to enable crypto exchanges to cater to retail customers.
While a slew of over 80 cryptocurrency firms initially demonstrated interest in establishing a presence within the nation, only a handful, notably HashKey and OSL, successfully procured the requisite licenses to commence retail crypto trading services.
On August 28, HashKey effectively launched retail crypto trading services for Hong Kong users.
To mitigate risks associated with nascent crypto tokens, the regulatory body exclusively sanctioned Bitcoin and Ether trading for retail customers.
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Additionally, regulatory guidelines enforced a 30% cap on investments, limiting individuals to allocate no more than one-third of their net income.
In tandem with HashKey and OSL, Huobi and Gate.io have also submitted applications for retail crypto trading services, awaiting regulatory endorsement.
A representative from Gate.io previously divulged that the Hong Kong Securities and Futures Commission imposes rigorous prerequisites on virtual asset service providers, emphasizing the necessity of insurance and compensation arrangements for client safeguarding.
Moreover, the regulator mandates crypto exchanges to maintain a substantial 98% of assets in cold wallet storage.
Inquiries made to OKX by Cointelegraph for insights into their regulatory journey and prospects in the Hong Kong retail market yielded no immediate response.
The unfolding developments underscore the cryptocurrency landscape’s growing convergence with traditional financial systems and the pursuit of responsible and secure trading environments.
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Binance, a prominent cryptocurrency exchange, is facing a series of executive departures amidst mounting regulatory scrutiny from global authorities.
Mayur Kamat, the Head of Product at Binance, has officially confirmed his departure from the crypto exchange after a tenure of almost two years.
Kamat revealed his decision, stating, “The time has come for me to step down and transition product leadership to the next generation of leaders at Binance.
I’ve worked closely with the product teams to ensure a smooth transition,” as conveyed to Cointelegraph on September 4th.
Kamat, who had previously held positions at renowned companies such as Google and Agoda, expressed that this juncture is personally opportune for him to take a break, following two decades of continuous involvement in product-related endeavors.
He expressed gratitude for his time at Binance and for witnessing the exponential growth of the user base.
Kamat conveyed his appreciation to Changpeng Zhao (CZ) and the entire leadership for the remarkable opportunity and mentioned that he will continue to support Binance from a distance.
Before joining Binance as the Head of Product in January 2022, Kamat had been a Product Manager at Google and Agoda.
During his tenure at Binance, he led global product and design teams, playing a pivotal role in the expansion of the user base from 80 million to over 150 million within just 18 months.
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Kamat is recognized as an early advocate of Bitcoin (BTC), having acquired his first two Bitcoins in 2011, a mere two years after Bitcoin’s launch.
He clarified that the acquisition was driven by the need to purchase a VPN connection rather than for investment purposes.
This recent departure follows a series of resignations from Binance, including key figures such as Patrick Hillmann, the Chief Strategy Officer, who cited personal reasons for his exit.
However, market observers speculate that the departure could be linked to the United States Department of Justice’s investigation into Binance.
Other notable departures include Han Ng, the General Counsel, and Steven Christie, the Senior Vice President for Compliance, who left Binance in early July.
The evolving landscape at Binance reflects the challenges posed by regulatory inquiries, causing changes within the executive ranks.
The departure of Mayur Kamat adds to the list of high-profile exits and underscores the heightened scrutiny faced by Binance on the global stage.
This dynamic situation continues to shape the future trajectory of the cryptocurrency exchange.
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Sam Bankman-Fried, the founder and former CEO of the now-defunct cryptocurrency exchange FTX, has submitted a memorandum on September 1st, urging the court to reject the in limine requests put forth by the United States Department of Justice (DOJ).
Drafted by SBF’s attorney Mark Cohen, the memorandum asserts that the DOJ’s requests are not only unfounded but also overly broad.
Cohen contends that several of the issues raised by the government are not appropriate for consideration at the current stage of the proceedings.
Furthermore, he highlights that the requests seek to introduce irrelevant and prejudicial evidence related to uncharged or past conduct.
This tactic is perceived as an attempt to weaken potential defense strategies and to admit a wide array of hearsay and other inappropriate evidence.
The memorandum goes on to assert that the prosecutor’s requests lack legal support and are practically unworkable, rendering them unfit for approval.
This memorandum follows a series of recent filings by the DOJ, wherein they requested the court’s intervention in multiple aspects of the case.
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On August 28th, the government motioned to disallow all of SBF’s proposed expert witnesses from testifying during the trial.
The DOJ argued that these experts and their accompanying disclosures were plagued by various shortcomings, warranting their exclusion from the proceedings.
A day later, on August 29th, the prosecutor submitted yet another motion, describing SBF’s defense against fraud allegations as “irrelevant” in its present state.
They requested additional disclosures to supplement the already planned defense strategy.
Concurrently, SBF’s legal team has been advocating for his temporary release, asserting that the provided accommodations are inadequate for adequately preparing for the trial scheduled for October.
Additionally, they are in the process of appealing the court’s decision to revoke SBF’s bail, a determination made on August 11th.
The defense argues that the bail revocation was an act of “retaliation” in response to SBF’s exercise of his First Amendment rights.
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Binance CEO Changpeng “CZ” Zhao envisions a future where decentralized finance (DeFi) surpasses centralized finance (CeFi) during the upcoming bull market.
Speaking on a live X Spaces event (formerly Twitter Spaces) on September 1, CZ expressed his optimism about DeFi’s trajectory.
He emphasized that an increasingly decentralized industry would be beneficial and indicated that DeFi’s trading volumes, currently comprising 5% to 10% of CeFi volumes, could soon eclipse CeFi:
“Cryptoโs future lies in DeFi; with its volume accounting for a significant portion of CeFi trading, the forthcoming bull run could potentially elevate DeFi beyond CeFi.”
In early June, following legal actions against centralized exchanges Coinbase and Binance by the U.S. Securities and Exchange Commission (SEC), the trading volume on the top three decentralized exchanges (DEXs) surged by 444% within 48 hours.
At present, DEXs exhibit a combined 24-hour trading volume of $722,776,226.
CZ also praised the recent dismissal of a lawsuit against decentralized protocol Uniswap. He found the outcome to be reasonable, logical, and positive.
On August 30, a U.S. federal court rejected a class-action lawsuit against Uniswap, highlighting that regulatory uncertainty impacts investor protection.
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The case centered on plaintiffs’ claims of losses due to scam tokens on the decentralized exchange.
During the event, a participant recalled a judge’s ruling that developers cannot be held accountable for misuse of DeFi platforms, a stance deemed favorable for DeFi builders. CZ concurred, asserting that code written by developers is a form of free speech and emphasized the significance of developer support.
Recent data suggests a shift in venture capital investments from CeFi to DeFi projects. A March 1 CoinGecko report revealed that investment firms directed $2.7 billion towards DeFi initiatives in 2022, marking a 190% increase from 2021.
Concurrently, investments in CeFi projects declined by 73% to $4.3 billion during the same period.
This trend potentially indicates DeFi’s emergence as the new high-growth domain within the crypto sector, while the waning investments in CeFi could be attributed to saturation.
Changpeng Zhao’s outlook on DeFi’s potential dominance in the forthcoming bull market resonates with the ongoing shifts in the crypto landscape, with decentralized finance poised to redefine the industry’s dynamics.
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Bitcoin (BTC) closed the week below the $26,000 mark on Sep. 3, despite a dismissive stance on overly pessimistic trader sentiment by analysts.
Data derived from Cointelegraph Markets Pro and TradingView revealed that BTC exhibited minimal volatility over the weekend, maintaining a narrow range of $200.
The lack of definitive direction led to a feeling of dรฉjร vu among market participants, reminiscent of the behavior observed during the previous month’s August closing.
The effects of two major volatility-inducing events from the previous week, involving Grayscale, a crypto asset manager, and regulators in the United States, were wiped clean from the charts. Consequently, traders evaluated the potential implications of different levels of weekly closure.
Prominent trader Skew offered insight into the market structure by highlighting the absence of a candle body closure below the Higher Low (HL) established in June, or below the $25.9K mark.
He stressed the significance of this point, suggesting that a 1-week closure below and subsequent price resistance in this range could lead to a downward move towards the prior 1-week resistance at approximately $24.3K.
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Looking ahead, Skew presented a “bearish scenario” that could bring about levels below $20,000.
Conversely, he expressed skepticism regarding a bullish revival that would involve reclaiming the $26,000 level and maintaining a higher low into the fourth quarter of the year.
Summarizing the events of the previous week, Keith Alan, co-founder of Material Indicators, advised against making definitive judgments on Bitcoin’s bullish or bearish nature.
He acknowledged the recent volatility resulting from Grayscale’s legal victory over the SEC and the SEC’s decision to delay judgment on the first U.S. Bitcoin spot price exchange-traded funds (ETFs).
Alan contended that despite these external events, the fundamental structure of the Bitcoin market remained unaltered.
He emphasized that neither a confirmed breakout nor a breakdown had occurred from a technical perspective, citing $24,750 as the crucial support zone to monitor.
A chart accompanying his analysis depicted the BTC/USD order book on Binance, showing increased buy liquidity just below the spot price at the $24,750 zone of interest.
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Decentralized finance (DeFi) has revolutionized the financial landscape, offering an array of innovative services challenging traditional finance (TradFi).
However, the main stumbling block to widespread DeFi adoption remains the user experience.
The DeFi sector has long sought an entry point to onboard new users effectively.
A potential solution to this issue lies in the realm of fintech.
By creating a financial technology app that caters to both TradFi and DeFi users, it becomes possible to showcase the advantages of self-custodyโwhere users safeguard their digital assets without relying on intermediaries like banks.
While the self-custody movement gained momentum, the Web3 space introduced hybrid services that merge elements of centralized and decentralized finance.
Changex, an all-in-one mobile wallet, embraces this approach through its CeDeFi model, providing users from traditional services a familiar environment.
Changex’s app facilitates non-custodial crypto trading, empowering users to retain control of their crypto assets.
It supports buying, selling, and transferring crypto, even enabling debit card and bank transfer purchases.
Multiple blockchains, including Ethereum, Polygon, and Binance Smart Chain, are seamlessly integrated into the exchange.
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For DeFi enthusiasts, Changex offers a range of alternative financial practices such as staking, with plans to introduce lending and stablecoin interest features.
The platform’s native token, CHANGE, provides additional APR on staking rewards.
The app is also making strides in bridging the gap between traditional finance and the crypto world.
It plans to issue European Union-regulated IBANs for fiat asset management, facilitating cross-border transactions within the EU.
Moreover, the upcoming Changex Visa Debit Card promises cashback benefits and the ability to spend staked assets without affecting APR.
Changex’s selection by Cointelegraph Accelerator underscores its expertise, boasting a team of over 20 members, a Bulgaria office, and a track record of delivering robust financial solutions.
With an average of 25,000 monthly active users and nearly $3 million in staked assets, the platform has gained strong traction.
The roadmap ahead includes the integration of the Avalanche blockchain, accompanied by Avalanche-based staking pools.
Additionally, Changex plans to introduce a unique leveraged staking feature.
The forthcoming Changex Visa Debit Card and IBAN, scheduled for Q4 2023, represents a major update.
This release aims to provide users complete control over their finances, solidifying Changex as a comprehensive one-stop solution for both crypto and fiat needs.
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Amid ongoing speculation regarding a potential resolution between Ripple and the United States Securities and Exchange Commission (SEC),
John Deaton, a prominent advocate for XRP and proponent of its legality, has outlined potential steps that Ripple and the SEC might take if they decide to pursue a settlement.
Deaton emphasized the importance of the ongoing legal battle between Coinbase and the SEC.
He pointed out that if the judge overseeing the Coinbase case grants the exchange’s motion to dismiss, it could establish a precedent indicating that token sales conducted on exchanges might not fall under U.S. securities regulations.
However, Deaton clarified that such a ruling would not necessarily apply to cryptocurrency staking activities.
In his analysis, Deaton stated, “The only plausible scenario for a Ripple-SEC settlement before year-end would be if Judge Failla endorses the Coinbase motion or partially approves it, signifying that token sales executed on an exchange, involving blind bid/ask transactions, may not be subject to U.S. securities regulations.”
Should the motion to dismiss receive approval, the SEC’s ability to pursue an appeal would be substantially limited, making a settlement a pragmatic consideration.
Deaton further explained that even if the SEC were to pursue an appeal in this context, its regulatory authority would likely be diminished.
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In a recent filing on September 1, Ripple indicated that the summary judgment failed to adequately address the legal foundation for an interlocutory appeal.
Ripple’s opposition to the judgment was rooted in its argument that the SEC had deviated from established legal norms, particularly with regard to applying the Howey test to determine whether XRP token sales qualify as securities.
The SEC had originally filed a lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen in December 2020, triggering several exchanges to delist XRP to avoid potential legal liabilities.
However, a favorable ruling by Judge Analisa Torres in July led numerous exchanges to express their intentions to relist the XRP token.
Throughout 2023, the SEC has pursued various cryptocurrency firms over allegations of securities violations, including notable names like Binance and Coinbase.
Notably, on August 29, asset manager Grayscale achieved a legal victory against the SEC through an appeal, compelling a reevaluation of its application for a Bitcoin exchange-traded fund in the spot market.
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Tokyo, Japan, September 4th, 2023, Chainwire
TOKYO BEAST FZCO, headquartered in Dubai, United Arab Emirates; General Manager: Tomoe Mizutani; (hereinafter “TOKYO BEAST FZCO”) has announced the crypto entertainment project “TOKYO BEAST, gumi Inc.
Headquartered in Shinjuku-ku, Tokyo; Hiroyuki Kawamoto, CEO; (hereinafter “gumi”) as the developer, Turingum K.K., headquartered in Minato-ku, Tokyo; Hiroki Tahara, CEO; (hereinafter “Turingum”) as the technology and financial advisory, using the Polygon protocols as the blockchain network for implementation, to release several modular projects worldwide in 2024.
The announcement was made today, September 4th 2023, at the Korea Blockchain Week conference held in Seoul, Korea.
What is “TOKYO BEAST” all about?
“TOKYO BEAST” is a crypto entertainment project that challenges to create a new entertainment experience by integrating crypto assets.
It is a completely original large-scale project with many experienced staff members who have developed and operated famous Japanese games, and a development budget unparalleled for a web3 game.
The company will provide an innovative and exciting entertainment experience that only “TOKYO BEAST” can provide, evolving Web3 games to a new stage.
ใปPromotion movie๏ผhttps://youtu.be/0-QvJeYJ6ds
Features of TOKYO BEAST
Pursuing pure fun
The team believes that it is important to be able to enjoy the game itself, outside of its web 3 features, so the emphasis was to create an authentic worldview, attractive characters, an enthusiastic battle system, and more.
The quality of the game is comparable to that of today’s leading smartphone games. The gaming experience is easy and seamless as the team eliminated barriers to starting the game, such as the initial NFT purchase and wallet connection, and aims to enable a wide range of participation, including general smartphone game users, and not just those confined to the Web3 world.
A series of characters that are attractive both as game characters and as NFT collections
The characters are designed to be interactive with an active role in the game and at the same time, to be recognized outside of the game as an NFT collection with a sophisticated visual style and high rarity. The project founders aim to create something that will be loved widely beyond borders and languages, just like “TOKYO BEAST”.
A fusion experience of the worldview and the crypto ecosystem
“TOKYO BEAST” emphasizes the importance of synchronizing the experience of immersing oneself in the worldview of the game with the real-world crypto ecosystem. “TOKYO BEAST” will provide an experience that unites each modular project and stakeholder in a single worldview, something that has not been done in existing web3 games.
Creating a new entertainment experience by predicting the winner of battles
Under a legitimate scheme, there will be a win/loss prediction function that can be enjoyed inside and outside the game. Users will be able to enjoy predicting the winner of battles using data. Battles will be streamed live simultaneously around the world, and users will be able to enjoy the excitement and frenzy of the experience by watching the battles with other users around the world.
The world of “TOKYO BEAST” continues to expand
All the module projects to be released in the future will be organically intertwined to deliver an unexplored entertainment experience through the synergy of crypto x content. Moreover, the team aims to continue expanding the world of “TOKYO BEAST” and the utility of $TBZ(*1).
As a first step, the following core module projects will be released sequentially worldwide in 2024. * “BASE”, a function to experience the unique economy of the “TOKYO BEAST” token “$TBZ * “FARM”, a function that allows users to experience NFT owner by cultivating “BEAST,” which will serve as data for NFT(*2).
TRIALS”, a function that allows users to experience being a hero who fights with dreams and romance on his/her shoulders.
During the second phase, a module project to provide new entertainment from various aspects to further expand the world of “TOKYO BEAST” and the utility of $TBZ will be mapped out and executed.
Campaign and Event
Early Entry Campaign
Date: September 4, 2023 – October 31, 2023
To celebrate the release of the information, three “Early Entry Campaigns” will be held, in which users can win a “Mystery Box” containing “TOKYO BEAST” tokens and NFTs by following the official X (former Twitter, hereafter “official X”) account, etc.
โ Follow Me Campaign
The highest rarity “Mystery Box” will be given away by drawing among those who follow the official X account. The earlier users follow us, the higher your chance of winning.
โก Weekly Prediction
If users follow the official X account and participate in the weekly prediction quiz of “TOKYO BEAST” on the official X account, they can receive a high rarity “Mystery Box” by lottery.
โข Strike Jackpot
A jackpot-style campaign will be held during the “Early Entry Campaign”.
Each time a target number of live streaming viewers or Official X followers is reached, a prize will be added to the jackpot, and a drawing will be held on Official X to determine who will win the jackpot. If the jackpot is not opened, the rewards in the pot will be carried over to the next drawing. If the jackpot is opened, the winner will be drawn from the followers of the Official X account and will receive the rewards including those that have been carried over.
*For details on each of the “Early Entry Campaign” campaigns, please refer to the following link: https://medium.com/@TOKYOBEAST/2c7956cb7558
ใปPolygon ร TOKYO BEAST Livestreaming
Polygon and TOKYO BEAST will hold a live streaming event.
Title: Polygon ร TOKYO BEAST Livestreaming
Schedule: 2023/9/8 20:00๏ผEST๏ผ๏ผ 17:00๏ฝ (PST)
URL: https://www.youtube.com/watch?v=rikxEfWuKIM
Speakers๏ผYoriko Beal (Polygon Head of Business Development Japan)
Naoki Motohashi (TOKYO BEAST Producer)
Shuhei Mise (TOKYO BEAST Global Head)
(*1) $TBZ is TOKYO BEAST’s proprietary IP token.
(*2) NFT stands for Non-Fungible Token. Blockchain technology is used as digital data with a certificate of ownership, making it impossible to tamper with or forge.
๏ผ๏ผ๏ผ๏ผ๏ผ๏ผ๏ผ๏ผ๏ผ๏ผ๏ผ
Service Name:TOKYO BEAST
Company name: TOKYO BEAST FZCO
Location: 001 – 33228 IFZA Business Park, DDP, Dubai, United Arab Emirates
Representative: Tomoe Mizutani
Official site: http://tokyo-beast.com/
Official X (Twitter): https://twitter.com/TOKYOBEAST_EN
Playable: App StoreใGoogle PlayใPC
For inquiries about the press release, please contact TOKYO BEAST FZCO Public Relations๏ผ[email protected]
Contact
BD Manager
Tomoe Mizutani
TOKYO BEAST FZCO
[email protected]
Former chair of the United States Securities and Exchange Commission (SEC), Jay Clayton, remains optimistic about the eventual approval of spot Bitcoin exchange-traded funds (ETFs), despite recent delays in decision-making.
In a recent interview with CNBC on September 1st, Clayton noted that the backing of major financial institutions in the realm of spot Bitcoin investments signals a notable shift in providing retail investors with access to cryptocurrency exposure.
The SEC’s recent move to extend the review period for various spot BTC ETF applications from prominent entities such as BlackRock, WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie, and Fidelity, was observed on August 31st.
This extension grants the commission an additional 45 days, following the notice’s publication in the Federal Register, to either approve, reject, or further delay the ETF applications from these influential firms.
Clayton expressed his belief in the forward momentum of these efforts, indicating that progress can be expected as the process unfolds.
The SEC retains the flexibility to extend the application deadlines until March 2024.
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Clayton emphasized that he envisions an “inevitable” approval for spot Bitcoin ETFs, highlighting the disparity between futures products and cash products, and asserting that this divergence cannot persist indefinitely.
Notably, Clayton’s viewpoint resonates with that of U.S. Court of Appeals Circuit Judge Neomi Rao.
In a recent ruling, Rao and two other judges directed the SEC to reevaluate the application of asset manager Grayscale, seeking to transform its Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
Rao highlighted that the SEC had previously greenlit BTC futures ETFs, implying a similarity between Grayscale’s proposition and the approved futures products.
The sequence of ETF application delays took place in rapid succession on August 31st, just prior to the Labor Day holiday weekend in the United States.
The following key deadline for the assessment of significant spot BTC applications is scheduled for October 7th, at which point the commission is expected to provide updates regarding the proposed offering from fund manager Global X.
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