Hong Kong streaming company plans to buy $100 million worth of cryptocurrency, Worldcoin approved: Asia Express

Our weekly news roundup from East Asia selects the most important developments in the industry.

Hong Kong regulators are considering spot staking for EtherETF.

Hong Kong regulators are considering allowing the issuer of a cryptocurrency ETF in the East Asian city to stake Ether it manages. According to reports, discussions to approve ETH staking are currently underway, with no clear deadline for a decision. Once approved, staking on the Ethereum network will allow you to earn up to 3.6% per year with your transactions verified by the issuer.

However, since its launch on April 30, the Hong Kong spot Ether ETF has received little attention. The three funds collectively parked $44.9 million, with net outflows totaling $2.2 million. On some days, the Ether ETF saw no inflows at all. In terms of fees, spot cryptocurrency ETFS charge over 1% per year, compared to less than 0.30% for US ETFs.

WorldCoin reprimanded in Hong Kong

OpenAI CEO Sam Altman’s flagship cryptocurrency project Worldcoin has been sanctioned in Hong Kong for alleged privacy violations.

Authorities have asked Worldcoin to stop collecting data from local residents from the company’s iris scanning devices, according to local reports citing the Office of the Privacy Commissioner.

Investigators claimed that before having their biometrics scanned, participants were not properly informed about the collection of their personal data, which would be “kept for up to 10 years to train artificial intelligence models for the identity verification process.”

In response, Worldcoin stated that the company “does not seek to know, share, or profit from individuals’ identities or personal information, and only seeks to ensure that they are human and unique.”

More than 10 million users globally have joined Worldcoin since its launch in June 2023. Users who scan their iris can receive WLD tokens as incentives.

Women take charge of the world’s largest cryptocurrency exchange

Binance co-founder Yi He, a former Chinese TV host, and Bitget CEO Gracy Chen currently run the world’s largest cryptocurrency exchange, with spot trading volumes of $36.5 billion and $4 billion, respectively.

Gracy Chen, Bitget’s former managing director, announced Tuesday that she has been promoted to CEO. “I am so grateful to be on this journey with all of you. Let’s roll up our sleeves, dream big, and make magic happen!”

Chen won a scholarship to study applied mathematics in Singapore at the age of 18, became a TV presenter on a Chinese finance and technology program after graduating, and explained how he learned about Bitcoin (BTC) from interviewees in 2015. :

“I started reading the Bitcoin whitepaper and was immediately fascinated. As a mathematician, I loved the mathematical beauty of it. I was intrigued by how democratic the system was. “I am primarily fascinated by the way we build new distributed ledgers that complement the traditional, centralized financial industry.”

She is currently the head of the Bitget exchange and runs a total of over 1,500 employees. Meanwhile, Binance’s Yi He (Chen’s bridesmaid) had a similar story, starting his humble journey in cryptocurrency back in 2013 when Bitcoin was still trading at $1,100.

Yi He met Star Xu, founder of OKCoin (now OKX exchange), who was looking for famous influencers to promote his brand. After amassing a small fortune during the Chinese stock bull market from 2006 to 2008, Yi He became interested in the cryptocurrency space and he accepted an offer to become OKcoin’s vice president.

During this time, Yi He introduced her friend (and future spouse) Changpeng “CZ” Zhao, who became CTO. After a brief conflict with OKcoin, Yi He and CZ joined hands to establish the Binance exchange in 2017. CZ is no longer involved in Binance’s decision-making or operations due to legal issues, and Yi He and current CEO Richard Teng have taken over the position, often sharing their outlook on the future of the cryptocurrency industry.

Boyaa Interactive’s cryptocurrency bet paid off.

On May 16, Asia Express reported that Hong Kong gaming company Boyaa Interactive expected its first quarter profits to surge 12-fold. The company has invested $100 million of its corporate capital in cryptocurrency and plans to invest another $100 million. Official results have been released and the company recorded a profit of $48.67 million from its digital asset holdings in the first quarter, more than three times the company’s gaming revenue over the same period.

Cryptocurrency wealth appears to have prompted the company to switch to Web3 gaming.

In particular, the operating model of Web3 game products was intensively developed in terms of product advancement and operational diversification to create high-quality chess and card game products.

Last year, shares of the company, which is listed on the Hong Kong Stock Exchange, rose more than 325%, reflecting cryptocurrency gains, with shares trading at $0.28 per share at the time of publication.

Another Hong Kong company joins the cryptocurrency FOMO.

Hong Kong entertainment streaming group Inkeverse Group Limited is set to follow in the footsteps of Boyaa Interactive and invest up to $100 million of its corporate capital in cryptocurrencies. “The board believes in the potential of cryptocurrencies and the impact of cryptocurrency investments on the group’s Web3.0 business development strategy and asset allocation strategy,” the staff wrote.

The company’s initial allocation plan includes $60 million in Bitcoin, $20 million in Ethereum, and $20 million in USD Coin. In backing its decision, Inkeverse praised both Bitcoin’s “tremendous growth potential” and Ethereum’s “development of layer-2 solutions,” and said that “investing in multiple cryptocurrencies reduces the risks associated with the volatility of a single cryptocurrency.” Buy cryptocurrencies on the open market through regulated platforms like HashKey and OSL Exchange.

OSL Exchange Joins MSCI Hong Kong Indices

Local cryptocurrency exchange OSL joined MSCI Hong Kong’s market capitalization weighted index, which consists of 30 constituents as of May 22. It is the first cryptocurrency company in Hong Kong.

“As our business expands and the company attracts increasing investor attention, we expect to be included in more stock indices,” said Patrick Pan, OSL Chairman of the Board and CEO. The MSCI Hong Kong Index is used to track the performance of the underlying companies in the namesake iShares MSCI Hong Kong ETF.

Formerly BC Technology Group, the company changed its name this year to that of its cryptocurrency exchange subsidiary to better reflect its digital asset business. Over the past year, its stock price has surged more than 170% as it became the first licensed cryptocurrency exchange pair in Hong Kong along with HashKey Exchange.

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Jiyuan Line

Zhiyuan Sun is a journalist at Cointelegraph specializing in technology news. He has years of experience writing for major financial outlets such as The Motley Fool, Nasdaq.com, and Seeking Alpha.