Japan

Japan’s SBI looks to Saudi Aramco as it continues Middle East expansion

They have signed a memorandum of understanding on digital asset investment and semiconductor production.

Japanese financial services firm SBI Holdings and Saudi Arabian state-owned oil company Saudi Aramco are considering teaming up on digital asset investment and semiconductor production projects. The two signed a memorandum of understanding (MoU) on cooperation that includes the establishment of SBI Middle East in Riyadh as a base for operations in the region.

According to the MoU, signed Dec. 7, SBI and Saudi Aramco will consider collaborating in the field of digital assets and co-investing in their digital asset portfolios. They may identify Japanese digital asset startups that could be interested in expanding to Saudi Arabia and launch semiconductor production projects in both countries. In addition:

Saudi Aramco is the world’s second-largest corporation by revenue, after Walmart. The MoU mentioned Saudi Aramco investments aimed at complementing its supply chain. Cryptocurrency is “not recognized by legal entities” in Saudi Arabia, although the government has shown a healthy interest in Web3. SBI Holdings’ partnership with Taiwan-based Powerchip Semiconductor Manufacturing was also highlighted.

Japan’s SBI looks to Saudi Aramco to continue Middle East expansion

They have signed a memorandum of understanding on digital asset investment and semiconductor production.

Japanese financial services firm SBI Holdings and Saudi Arabian state-owned oil company Saudi Aramco are considering teaming up on digital asset investment and semiconductor production projects. The two signed a memorandum of understanding (MoU) on cooperation that includes establishing SBI Middle East in Riyadh as a base for regional operations.

According to the MoU, signed Dec. 7, SBI and Saudi Aramco will consider collaborating on digital assets and co-investing in their digital asset portfolios. They may identify Japanese digital asset startups that could be interested in expanding to Saudi Arabia and launch semiconductor production projects in both countries. In addition:

Ripple-based MoneyTap adopted by three Japanese banks

Japanese banks such as 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 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 U.S. due to the tough regulatory environment.

Magazine: Asia Express: US and China try to crush Binance, SBF’s $40M bribe claim

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

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 its models’ proficiency in the Japanese language and its cultural nuances. “We will return soon,” he added.

Canada’s privacy commissioner is investigating OpenAI for allegedly collecting and utilizing personal information without consent. On April 4, the Office of the Privacy Commissioner of Canada 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 protect Canadians’ privacy rights.

Magazine: All rise for the robot judge: AI and blockchain could transform the courtroom

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

The deadline for repayment registration for those affected by the Mt. Gox hack has closed, with the trustee releasing a statement on the next steps in the 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 saying the deadline for creditors to provide their repayment information — clarification of payee and payment type — has passed.

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

The note also said that the trustee would carry out the “necessary preparations” to make the repayments, including confirmation of the selections for repayment and sharing 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 in November 2022, Mt. Gox’s demise remains the greatest crypto robbery in history.

There have been continuous delays surrounding the repayment of funds to those affected. In 2018, a Japanese court finally approved a compensation plan.

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 totaled nearly $16 billion, more than was available for repayments.

In February 2023, Mt. Gox Investment Fund, the largest creditor, 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.

Magazine: Thailand’s $1B crypto sacrifice, Mt Gox final deadline, Tencent NFT app nixed: Asia Express

Japan pushes for friendlier environment for crypto with Web3 proposals

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 country’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 to decentralized autonomous organizations (DAOs).

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 that are not meant to be traded in the short term. It suggests enabling self-assessments and 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 while the screening process for tokens already in circulation is becoming shorter, 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.

In 2022, 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

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 seven 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 United States 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, which could target the exchange’s staking program, listed digital assets, wallet and Coinbase Prime services.

Similar actions also occurred outside the U.S., with Japan’s Financial Services Agency (FSA) announcing on March 31 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*

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 FSA flags Binance, Bybit, others for operating without registration

Japan’s FSA warns Binance, Bybit, MEXC Global and BitForex, among others, for unregistered operations as it cracks down on crypto exchanges in Japan.

In a warning letter released on Friday, Japan’s Financial Services Agency (FSA) said that a number of foreign cryptocurrency exchanges, including Binance, Bybit, MEXC Global and Bitget, have been conducting business in the country without proper registration, violating the nation’s fund settlement laws.

According to the warning letter, the FSA stated that the listed exchanges had breached Japan’s fund settlement regulations by conducting crypto asset exchange business without proper registration. The regulator clarified that the current list of unregistered traders may not accurately represent the current state of unregistered businesses.

The FSA’s action follows a crackdown on unregistered crypto exchanges in the East Asian nation. In 2020, the FSA introduced new regulations requiring crypto exchanges to register with the agency and obtain a license to operate in Japan.

Binance being warned by the FSA signifies the cryptocurrency industry in Japan and other nations is facing greater regulatory scrutiny. The risks associated with unregulated cryptocurrency exchanges, such as fraud, money laundering and market manipulation, are concerning regulators more and more

Although Japan is working on new regulations for the crypto and Web3 sectors, the country has not cracked down on the industry as hard as some other larger economies, such as the United States.

The crypto exchange firm, Binance and its founder, Changpeng Zhao, were recently sued by the U.S. Commodity Futures Trading Commission over regulatory violations.

The FSA also issued a formal warning letter to Binance for operating without necessary permissions back in 2021.

Cointelegraph reached out to Binance, Bybit and MEXC for comments on the warning issued by the Japanese FSA but didn’t get any response at the time of publication.

Magazine: US and China try to crush Binance, SBF’s $40M bribe claim: Asia Express

Japan FSA flags Bybit, others for operating without registration

Japan’s FSA warns Bitget, Bybit, MEXC Global and BitForex, among others, for unregistered operations as it cracks down on crypto exchanges in Japan.

In a warning letter released on Friday, Japan’s Financial Services Agency (FSA) said that a number of foreign cryptocurrency exchanges, including Bybit, MEXC Global and Bitget, have been conducting business in the country without proper registration, violating the nation’s fund settlement laws.

Crypto exchangs being warned by the FSA signifies the cryptocurrency industry in Japan and other nations is facing greater regulatory scrutiny. The risks associated with unregulated cryptocurrency exchanges, such as fraud, money laundering and market manipulation, are concerning regulators more and more

Although Japan is working on new regulations for the crypto and Web3 sectors, the country has not cracked down on the industry as hard as some other larger economies, such as the United States.

The FSA also issued a formal warning letter to Binance for operating without necessary permissions back in 2021.

Cointelegraph reached out to Bybit and MEXC for comments on the warning issued by the Japanese FSA but didn’t get any response at the time of publication.

Magazine: US and China try to crush Binance, SBF’s $40M bribe claim: Asia Express

Japan plans to form expert panel to explore digital yen: Report

The ministry’s panel will reportedly focus on developing a framework for a central bank digital currency based on a technical study carried out by the Bank of Japan over the past two years.

Japan’s Finance Ministry is planning to establish an expert panel in April to explore the feasibility of introducing a digital yen, Japanese news outlet NHK reported.

According to the report, the ministry’s panel will focus on the creation of a framework for a central bank digital currency (CBDC) and will refer to a technical study conducted by the Bank of Japan (BOJ) over the past two years. The ministry intends to use the findings from the expert panel to prepare for the possible issuance of a digital yen.

CBDCs are digital versions of traditional currencies, such as the U.S. dollar, yen and euro, issued and backed by central banks. Unlike cryptocurrencies, which purport to be decentralized and not backed by any government or central authority, CBDCs are issued by a central bank and operate within a centralized system.

Although CBDCs are still in the early stages of development, opponents of central bank issued digital currencies have expressed concern that this technology would give monetary authorities unprecedented control over financial transactions. Additionally, some people argue that CBDCs are unnecessary and that traditional forms of payment are sufficient.

Central bank digital currency (CBDC): Government control your money.

Bitcoin: You control your money. pic.twitter.com/KnUBuR7CE8

— Pan ₿ (@satstackerMY) December 30, 2022

Despite these concerns, many central banks worldwide are exploring the possibilities of issuing CBDCs, and the debate surrounding their use is ongoing. The United States, China, India and several European nations are already examining the viability of state-run digital currencies.

As previously reported by Cointelegraph, the Central Bank of the United Arab Emirates (CBUAE) is making progress toward the full launch of its CBDC, called the digital dirham, for domestic and cross-border payments. On March 23, the CBUAE announced it had signed an agreement with G42 Cloud and R3 to provide infrastructure and technology for the CBDC implementation. In addition to addressing payment challenges, the digital dirham is expected to promote financial inclusion as the country aims to become a cashless society.