Financial authorities in 25 U.S. states have reached a settlement with the cryptocurrency investment platform Abra and its CEO Bill Barhydt for operating without proper licensing. This settlement mandates significant changes in how Abra conducts its operations within these states. Abra Reaches Settlement Over Unlicensed Operations, Agrees to Major Concessions According to a report from […]
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‘Community-Based IP’ — Yuga Labs CEO Describes Web3 Evolution of Licensing to Japanese Government Official
In a recent “fireside chat” with the deputy director of the Web3.0 Policy Office of Japan’s Ministry of Economy, Trade, and Industry, Yuga Labs CEO Daniel Alegre noted: “We’re not even in the first inning” of where Web3 “evolution” is going to go. During the interview with the politician, Alegre described new models of IP (intellectual property) that transcend national borders and break down barriers traditional IP models impose.
Bored Apes: A New Paradigm for IP
CEO of Yuga Labs Daniel Alegre recently sat down with deputy director of the Web3.0 Policy Office at Japan’s Ministry of Economy, Trade, and Industry to discuss the future of Web3 and product licensing, describing a new model of “community-based IP.”
Speaking to Waka Itagaki about the power of the Bored Ape Yacht Club global community at the Webx conference on Tuesday, Alegre described: “Whether it’s a Bored Ape brewing company, that the team introduced me to yesterday, or whether it’s new artists that want to create [gaming content] on their other side platform … it’s really creating and connecting culture on the blockchain, but at a global level.”
The executive, formerly COO of Activision Blizzard, went on to note that “Web3 brings creators and consumers and communities together, and they build these brands together,” emphasizing, “It’s a fundamental rethink of IP and IP rights.” Alegre detailed:
In a normal media environment, if you own IP, you license it very exclusively and for a very finite use case … when you buy a Bored Ape NFT, we are giving you an unlimited license to do with that IP what you want … If you want to start a restaurant chain, if you want to have a brewing company, if you want to create t-shirts that you want to sell, it enables that.
Alegre didn’t directly address one portion of Itagaki’s prompt when she asked “How are you planning to align with the government’s regulation?” He did, however, suggest a way for regulators to view Web3, noting: “And this is where I love your point of view from a government perspective — how do you think about enablement so that more people can actually leverage what Web3 can bring to bear.”
Animoca Rep and Other Speakers Share Similar Views on New, Decentralized Models of Business and Finance
Similar to Alegre’s enthusiasm for fresh ways of viewing intellectual property, later the same day, Evan Auyang of Animoca Brands also described a new way to look at competition in the marketplace, noting:
The whole point about this ecosystem … is that we’re trying to see if we can grow the pie bigger rather than dominating it ourselves, which is more Web2 thinking. If the pie grows bigger, then we will benefit … on the assets that we have at the same time.
In another talk at Webx, Ken Deeter, partner at crypto-focused VC fund Electric Capital in the United States, explained he was interested in defi as an extension of the Bitcoin ethos, which arose from a mistrust of central banks and traditional monetary policy. Like with the evolution in perspective on IP described by Alegre, Deeter and others at Webx expressed interest in setting up new models.
What do you think? Is Web3 leading a positive evolution away from outdated, coercive models of business, law, and finance, or is more regulation needed? Let us know in the comments section below.
Huobi HK Offers Spot Trading and Custodial Solutions in Hong Kong Following Licensing Regime Implementation
On May 29, Huobi HK announced its expansion of services after Hong Kong implemented its new crypto exchange license system. The platform now provides spot and custodial services to both retail and institutional customers in Hong Kong. Huobi’s update comes shortly after Huobi Global faced regulatory hurdles in Malaysia, where authorities prohibited the operation of its crypto trading platform without a proper permit.
Huobi HK Launches Spot Trading and Managed Services in Hong Kong
Huobi Global’s Hong Kong trading arm Huobi HK has announced it is offering spot trading services and custodial solutions to retail and professional traders. Hong Kong’s new licensing regime was launched in May with help from Hong Kong’s Securities and Futures Commission (SFC) CEO Julia Leung.
Leung said at the end of April that the effort could make Hong Kong “more attractive [and] more competitive” for “international and Mainland capital.” Crypto trading platforms will be regulated by the regulator’s Fintech Task Force. The SFC is working with international regulators from other regions to “set baseline standards to regulate centralised virtual asset exchanges for adoption in major markets.”
Following the codification of the new licensing regime, Huobi HK announced it would be offering services to retail and institutional traders. “Huobi HK is now offering spot and managed services to professional and retail customers,” the firm tweeted on Monday. “As a pioneer of a virtual asset trading platform in Hong Kong, Huobi HK has officially submitted an application notice to the Hong Kong Securities Regulatory Commission on May 29, and we look forward to obtaining a virtual asset exchange license.”
The company added that Huobi HK will collaborate with independent auditors over the next six months to focus on the platform’s security, anti-money laundering, and compliance operations in order to meet the SFC’s and licensing regime’s requirements. Huobi HK’s entry into Hong Kong follows Huobi Global (the subsidiary’s parent company) getting reprimanded by the Malaysian securities regulator. Malaysia’s authorities have told the exchange to stop soliciting Malaysian residents and to halt operations in the Southeast Asian country.
What are your thoughts on Huobi HK’s expansion into Hong Kong’s crypto market amidst the implementation of the new licensing regime? Share your opinions and insights in the comments section below.
NFT Fantasy Game Sorare Partners With Premier League for Multi-Year Licensing Deal
Sorare, a Paris-based NFT (non-fungible token) fantasy game startup, has closed a deal with the Premier League, the first soccer division in the U.K., to make teams and players of the league part of its roster. According to reports, the multi-year agreement involves payments of tens of millions of pounds per year to the league.
Sorare Includes Premier League in Its Platform
Sorare, a Paris-based fantasy NFT game startup, has closed a deal with the soccer Premier League of the U.K. to use its likenesses as part of its gaming platform. Users of the app will be able to build their own teams featuring players and teams of the aforementioned league. With this agreement, Sorare boasts five of the most important European leagues on its platform, including the first division of soccer in Spain, the Spanish Laliga.
While the NFT model has faced several difficulties due to the downturn of the cryptocurrency market, Sorare allows anyone to list players as part of their fantasy teams without having to purchase their collectibles in a free-to-play game mode. Sorare CEO Nicolas Julia explained that many players have migrated to this game mode, as 87% of the players don’t spend money on the platform.
Julia explained that the platform relies on the transactions of high-power NFT users to be profitable, as unique collectibles are still available on the platform.
Deal Details
The deal reportedly had to be maintained in secret because the Premier League was also negotiating with other platforms with similar agreements. According to Sky News, the deal will be replacing another partnership, with Consensys, an Ethereum software company that had been dropped last year.
While there have been no official announcements on numbers, Financial Times reported that the deal involves the payment of “tens of millions of pounds per year,” with each payment being dependent on the performance of the app. The deal also allows the Premier League to take a stake in the fantasy startup.
Sorare experienced significant growth in 2021, raising 0 million in September as part of its Series B funding round that was led by Softbank. At that time, the company reached a valuation of more than billion.
In September last year, the company announced a partnership with the National Basketball Association (NBA) to launch an NFT-based game featuring players and teams from the league. Also, in November, Argentine soccer superstar Lionel Messi became an investor and ambassador of the Sorare brand.
What do you think about the deal Sorare closed with the Premier League? Tell us in the comments section below.
Hong Kong Regulators Publish New Cryptocurrency Licensing Rules
The post Hong Kong Regulators Publish New Cryptocurrency Licensing Rules appeared first on DCEBrief.
New NYDFS Division to Oversee Licensing for Cryptocurrency Startups
The Research and Innovation Division will include an in-house team that supervises cryptocurrencies.
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Texas Financial Watchdog May Recognize Stablecoins as Money for Licensing Purposes
n A memo from the Texas Department of Banking considers treating stablecoins as money under the Texas Money Services Actn
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Crypto Exchange Coincheck to Receive Full Licensing from Japanese Authorities
Coincheck, the crypto exchange that lost over 0 million in investors funds in early-2018, is now close to receiving full licensing from Japan’s Financial Services Agency (FSA), signaling that the exchange tightened their platform’s security and cleaned up the management practices that led to the hack.
The news regarding the regulatory authority’s decision to issue the exchange their operational licensing was first reported by Nikkei Asian Review, who stated that the license will be issued by the end of 2018.
Crypto Exchange Regulation to Reduce Chances of Future Hacks
As reported by Nikkei in January of 2018, the hack, which resulted in the theft of NEM tokens, was the direct result of poor security features and exchange mismanagement, which led to multiple vulnerabilities that encouraged hackers to target Coincheck over other, more secure, platforms.
Koichiro Wada, the chief executive officer of Coincheck, spoke to Reuters about the reasons behind the platform’s vulnerability, and blamed the lack of experienced employees for the platform’s flaws.
“We were aware we didn’t have enough people working on internal checks, management and system risk. We strived to expand using headhunters and agencies, but ended up in this situation,” he said.
Following the hack, the FSA swiftly moved to enforce regulations on crypto exchanges that would hold them to similar requirements that banks are held to, scrutinizing their business plans, ensuring that anti-hacking measures are in place, and that the management team is being held to high standards.
The FSA issued two separate improvement orders to Coincheck after the hack occurred, and on both occasions found that it lacked sufficient safeguards to protect investor’s funds and to prevent money laundering from occurring.
Coincheck Trading Volume Drops, Exchange Begins Restoring Trading Services
Although the exchange refunded all the lost funds to investors, the news regarding their platform’s issues has led to a declining trading volume that signals that the damage to the exchange may be irreversible, regardless of the receipt of their licensing from the FSA.
The exchange’s trading volume, which has been continuously dropping due to the declining crypto markets and decreased investor confidence in the platform, is currently sitting at just under million USD according to CoinMarketCap.
Coincheck resumed new account openings and customer deposits in late-October, initially only resuming trading for four cryptocurrencies, and limiting new accounts to Japan residents exclusively. It wasn’t until November that the platform resumed NEM trading, and only a few weeks ago they revealed that they would resume trading for XRP and FCT tokens.
A translated statement from Coincheck regarding the re-listing of XRP and FCT reads in part:
“In connection with unauthorized remittance of the virtual currency NEM…the Company suspended the services partially in order to investigate the cause of customer asset protection and unauthorized remittance, and formulated a business improvement plan. In implementing this plan, we have tried to improve our management control system and internal control system. In addition, with the cooperation of external experts who carried out a step-by-step safety audit, we have restarted the service that enables the receipt, purchase and exchange of XRP and FCT.”
It is likely that the exchange will be slowly restoring full trading services leading up to the issuance of their licensing at the end of the year.
Featured image from Shutterstock.
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