Chief Financial Officer Hideyuki Katsuchi announced plans to sell machinery and exit but did not reveal when the withdrawal from Siberia would be completed, according to Bloomberg.
The company said the suspension of mining in Siberia made the crypto-asset business report a pretax loss of 9.7 billion yen ($72 million) in the three months ended June 30, the first quarterly loss in a decade.
At the same time, according to the data of blockchain browser BTC.com, the mining hash rate of SBI Crypto also decreased by nearly 40%, from 5786.96 PH/S per second on February 25 to 3,563.75 PH/S on August 19, 2022.
The U.S. cryptocurrency mining company Compass Mining is looking for buyers for its equipment stranded in Russia to avoid sanctions from the U.S. Treasury Department.
The price tag on the pieces of mining equipment in the Russian region is pegged at $30 million.
In April 2022, the United States announced that it would add Russian cryptocurrency mining company Bitriver to its sanctions list. Due to geopolitical uncertainty, many miners have chosen to avoid doing business in Russia.
Tokyo’s biggest finserv firm, SBI Group, will now allow general Japanese investors to purchase cryptocurrencies via its newly launched ‘crypto asset fund’. The fund is composed of seven cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), XRP, Bitcoin Cash (BCH), Chainlink (LINK) and Polkadot (DOT).
The crypto-asset fund, to be traded and operated by the SBI Alternative Fund, was established on Dec. 02 with a dedicated capital of 5 million yen, worth approximately $45,000 at the time of writing. However, the company may choose to release the capital in smaller break-ups of 1 million yen each.
Source: SBI
According to the official statement, investors will be required to go through an application process that includes an anonymous partnership agreement with SBI Alternative Fund prior purchases. The company’s reasoning behind this move states:
“Since it is not suitable for all customers, it can only be purchased by customers who meet certain standards set by our company.”
In addition, the crypto investments made by such anonymous associations will be handled by SBI VC Trade, a sister firm dealing with cryptocurrency trading. SBI also highlighted that none of the seven cryptocurrencies in the crypto-asset fund will exceed 20% in ratio.
Assuring the longevity of the service, SBI has stated that the fund “cannot be canceled within one year,” between Feb. 1 2022 to Jan. 31, 2023. Investors will also be subject to unrealized capital gains taxes in addition to bearing other shared expenses including establishment and liquidation costs and audit expenses.
SBI has set an age limit between 20 to 70 for this fund and will enforce a three-month locking period for every purchase “aiming to reduce investment risk by diversifying time.” The company will also rebalance the investment ratio allocation once every month.
Related:SBI Holdings invests in Singaporean crypto exchange Coinhako
In addition to contributing to Japan’s crypto adoption, SBI continues to spread its reach in other jurisdictions. Most recently, the company invested in a Singaporean crypto exchange named Coinhako.
Coinhako received SBI’s funding soon after its received regulatory approval from the Monetary Authority of Singapore (MAS). As Cointelegraph reported, the investment was made via the SBI-Sygnum-Azimut Digital Asset Opportunity Fund, a fund jointly set up by SBI and Switzerland-based Sygnum Bank.
Coinhako plans to “expand our business to other countries in Southeast Asia” by using SBI’s fund infusion and its pre-existing international network.
Tokyo-based financial services giant SBI Holdings announced a joint investment in Coinhako, Singapore’s first licensed crypto exchange approved by the Monetary Authority of Singapore (MAS).
The Coinhako investment was made via a fund jointly set up by SBI and Swiss-based Sygnum Bank, namely, the SBI-Sygnum-Azimut Digital Asset Opportunity (DAO) Fund, according to the notice.
Speaking to Cointelegraph, a MAS spokesperson highlighted the importance of seeking licensing approvals for crypto businesses:
“MAS’ approach to regulation under the Payment Services Act seeks to facilitate innovation while ensuring that adequate controls are in place to address key risks such as money laundering and terrorism financing.”
Coinhako became the first crypto-asset exchange from Singapore to get in-principle approval from MAS to conduct Digital Payment Token (DPT) services, the same license application that Binance withdrew on Dec. 13. In this regard, MAS spokesperson told Cointelegraph:
“Applicants are able to withdraw their applications should they see fit, upon which those who are operating under the exemption will be required to cease providing regulated payment services. Binance Asia Services has provided MAS with a plan for the orderly cessation of its regulated payment services.”
With SBI’s fund infusion and a pre-existing international network, Coinhako plans to “expand our business to other countries in Southeast Asia while being based in Singapore.” According to SBI, the fund will be co-managed by both parties involved with a focus on financial market infrastructure and distributed ledger technology.
Related:Singapore suspends exchange Bitget’s license over K-pop coin promotion
The Monetary Authority of Singapore suspended the license of Bitget after the digital asset platform listed a K-pop-related cryptocurrency, Army Coin (ARMY).
Source: Facebook screenshot
As Cointelegraph reported, the listing and promotion of ARMY reportedly violated the boy band’s intellectual property rights without permission. Going on the offensive, the crypto exchange claimed to have licenses in other jurisdictions such as Australia, Canada and the United States, as it announced:
“We are currently looking into the legal violations in this case, including the cryptocurrency’s infringement on our artists’ portrait rights without permission from or discussion with the agency. We will take legal action against all infringements and violations.”
SBI Digital Asset Holdings, a fully owned subsidiary of Japanese banking giant SBI Holdings, announced a joint crypto venture with Switzerland’s SIX digital exchange (SDX).
The joint venture would be set up in Singapore through a crypto issuance company and aims to become a regional liquidity hub for institutions. SBI Holdings CEO Yoshitaka Kitao said:
“This is an important step in building the necessary global infrastructure for widespread institutional adoption of digital assets. Together with SDX‘s strength in Switzerland and our planned digital exchange in Osaka, this venture will establish a powerful institutional corridor between Europe and Asia.”
The partnership between SBI and SIX banks on growing crypto demand in the Asia-Pacific region and will cater its services to regulated institutions. The venture is expected to formalize its operations by the end of 2021 and start offering its services by early 2022 following regulatory clearance from the Monetary Authority of Singapore.
The new undertaking will offer a range of digital asset products and services in the form of tokenized securities such as digital bonds, digital equities and digital securitized loans.
SIX did not immediately respond to Cointelegraph’s request for comment.
Related: SBI doubled crypto business profits in past fiscal year.
SDX chairman called SBI a natural partner for the joint venture given their expertise in the institutional digital asset market and dominance in Asia.
Singapore has grown to become a global crypto hub over the past few years. Major crypto exchanges like Binance, FTX, Coinbase, Huobi, and several others have found a home in the country amid regulatory uncertainty around the globe.
Ripple’s (XRP) rallied 72% from Aug. 7 to Aug. 14, but since then, every attempt to break out of the descending channel has been quickly suppressed. The past ten days have been no different, with the XRP price correcting by 15%.
The platform was first launched in 2012 and Ripple is a distributed open-source protocol and remittance system created by U.S.-based Ripple Labs. The company provides cross-border payment solutions through domestic partnerships or by offering RippleNet services.
At one point, XRP price was trading above $2, but the ongoing multi-year lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC) is one factor placing persistent downward pressure on price and investors’ appetites.
The lawsuit began in December 2020 when the SEC alleged that CEO Brad Garlinghouse and co-founder Chris Larsen had been conducting an “unregistered, ongoing digital asset securities offering” with their XRP token sales.
As a result, XRP faced delistings across many leading cryptocurrency exchanges in the U.S., including Binance.US, Coinbase and Bitstamp.
XRP price at Bitstamp in USD. Source: TradingView
The most recent pump in early September could have been caused by the Japanese financial conglomerate SBI Holdings planning to set up a cryptocurrency fund. Tomoya Asakura, a director and senior managing executive officer at SBI, said the company could see the fund growing to several hundred million dollars.
SBI Holdings owns 60% of a joint venture with Ripple named SBI Ripple Asia, which provides RippleNet technology to financial institutions and money transfer service operators in Japan, South Korea and certain Southeast Asian countries. In addition, Ripple owns 33% of Money Tap, a Japanese payments network operated by SBI and 38 other banks.
Pro traders are neutral on XRP price
To understand how whales and arbitrage desks are positioned, one should analyze the quarterly futures contracts premium (basis rate). In the fixed-month contracts, eventual demand imbalances are reflected by a price difference versus regular spot markets.
XRP Dec. futures premium (above) vs. XRP price in USDT (Below). Source: TradingView
Healthy derivatives markets should display a 5% to 15% premium because traders are requesting more money to postpone the settlement. A low or negative basis rate is a bearish indicator and it signals that investors are uncomfortable creating long positions using leverage.
Notice how the December futures contract premium at Binance peaked above 5% on Sept. 6, as traders were hyped by the potential $1.40 breakout. That premium was equivalent to 17% per year and signaled excessive leverage from longs (buyers).
The recent XRP price correction eased the market expectations and the current 1.9% price gap for a 3-month period is equivalent to 7.8% per year, a neutral indicator.
Retail traders confirm a neutral stance
On the other hand, retail traders’ preferred derivatives instrument is the perpetual futures because its price usually perfectly tracks the regular spot markets. There is also no need to manually roll over contracts nearing expiry as required on quarterly futures.
In any futures contract, trade longs (buyers) and shorts (sellers) are matched at all times, but their leverage varies. Consequently, exchanges will charge whichever side is using more leverage at a funding rate to balance their risk, and this fee is paid to the opposing side.
Neutral markets tend to display a 0%–0.03% positive funding rate, equivalent to 0.6% per week, indicating that longs are the ones paying.
Data reveals an excitement period from leverage longs that lasted from Aug. 8 to Sept. 7, with average 8-hour fees peaking at 0.10%. This number is equivalent to 2.1% per week, which isn’t sustainable for more extended periods.
Both retail-oriented perpetual and pro traders’ quarterly contracts show absolutely no sign of bearishness, which should be interpreted as a positive considering the 15% negative performance over the past ten days.
The views and opinions expressed here are solely those of theauthorand do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Japanese financial giant SBI Holdings is reportedly launching the country’s first cryptocurrency fund.
Bloomberg reports that the fund will invest in Bitcoin (BTC), Ethereum (ETH), XRP, Bitcoin Cash (BCH), Litecoin (LTC) and possibly other crypto assets.
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Tomoya Asakura, president of SBI affiliate Morningstar Japan K.K,says the fund primarily targets individual investors who are aware of the associated risks of cryptocurrencies and who can invest at least 1 million yen ($9,112) to 3 million yen ($27,336).
“I want people to hold it together with other assets and experience firsthand how useful it can be for diversifying portfolios.”
SBI aims to launch the fund by the end of November and if all goes well, Asakura says that the firm will quickly roll out a second one. He says the financial conglomerate may also consider launching a fund primarily aimed at institutional investors if there is sufficient demand.
It took SBI four years to materialize its plans for a crypto fund because of Japan’s stringent regulations on digital assets. Despite these strict rules, Japan’s crypto industry is pushing forward.
In July, the Financial Services Agency (FSA), which oversees the banking, securities and exchange and insurance sectors, launched a new unit to oversee cryptocurrency regulation.
The Ministry of Finance also considers increasing the number of its staff to ramp up its digital currency oversight.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Japanese financial conglomerate SBI Holdings is reportedly planning to set up one of the first funds in the country giving investors exposure to crypto.
According to a Thursday Bloomberg report, SBI, aiming to have a crypto fund available by the end of November, will offer residents of Japan the opportunity to invest in Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), XRP, and others. Tomoya Asakura, a director and senior managing executive officer at SBI, said the company could see the fund growing to several hundred million dollars, with investors likely being required to deposit a minimum of 1-3 million yen, or $9,093-$27,279 at the time of publication.
“I want people to hold [crypto] together with other assets and experience firsthand how useful it can be for diversifying portfolios,” said Asakura. He added that SBI would consider launching a second crypto fund depending on the success of the first.
The crypto fund would potentially be launched amid the country’s financial watchdog, the Financial Services Agency, or FSA, not allowing companies to operate crypto investment trusts. The regulator also requires compulsory national registration for crypto exchanges and licensing for platforms looking to operate in Japan.
According to Asakura, he will be working to show the Japanese public and the FSA that cryptocurrencies can be part of a well-balanced investment portfolio rather than “highly volatile and speculative” assets as many believe. SBI has been working for four years to launch the crypto fund, which it now plans to do using an “anonymous partnership” — partnering with an investor that agrees to supply capital to SBI, an arrangement sometimes used for private equity funds in Japan.
“[People] will understand that we aren’t recommending cryptocurrencies as a tool of speculation,” said Asakura.
Related:SBI looking to set up joint crypto ventures with foreign firms
Japanese regulators have reportedly been hiring more staff to develop stricter global rules for digital currencies. Cointelegraph reported in July that the country’s Ministry of Finance was considering adding experienced regulators in an effort to scrutinize the crypto and blockchain industry worldwide, while the FSA has already established a new unit to oversee digital currency regulation.
Showcasing the use of cryptocurrency in monetary transfers, Ripple has become a known partner for traditional institutions that wish to revamp their cross-border remittance services. Taking this vision further ahead, Ripple announced a new partnership with Japan’s SBI Remit Co., Ltd to transform remittance payments from Japan to the Philippines.
Ripple’s latest partnership will see the involvement of mobile payments service Coins.ph and digital asset exchange platform SBI VC Trade to provide a cheaper remittance option to its customers. This will be made possible by using XRP to eliminate the pre-funding costs.
According to the official statement, Japan’s first On-Demand Liquidity (ODL) service implementation helps Ripple to drive the adoption of crypto-enabled services. The representative director of SBI Remit, Nobuo Ando, stated:
“The launch of ODL in Japan is just the start, and we look forward to continuing to push into the next frontier of financial innovation, beyond real-time payments in just the Philippines, but to other parts of the region as well.”
This announcement stays in line with Ripple’s intent to expand its services for the Asia-Pacific (APAC) markets as it continues to see transactions growing 130% year-over-year. A recent report also showed that Ripple’s XRP sales shot up 97% in Q1 due to the rising demand for its ODL service.
Related: It is time for the US to create a ‘Ripple test’ for crypto
Despite Ripple’s conflict with SEC authorities against the XRP securities lawsuit, Ripple frontman Brad Garlinghouse informed that the company had not suffered any setbacks in the APAC region.
“We have been able to continue to grow the business in Asia and Japan because we’ve had regulatory clarity in those markets,” Garlinghouse said.
Ripple recently appointed a new managing director to plan out its roadmap to dominance in the Southeast Asian region.
By involving former Uber executive Brooks Entwistle, Ripple’s Southeast Asia wing doubled down on its expansion plans against the market’s “fairly complex, country-specific schemes.”
Japanese financial giant SBI Group has more than doubled the total profit of its cryptocurrency business in the fiscal year ending March 2021.
SBI released a report on the company’s financial results on Wednesday, disclosing that its pre-tax crypto-powered profits in the past fiscal year amounted to 18.9 billion yen ($174 million). The amount is 10 billion yen ($92 million) higher than the total pre-tax total profit recorded over the previous fiscal year ending March 2020, SBI said.
SBI’s crypto division features several companies including crypto trading platform SBI VC Trade, mining arm SBI Crypto, as well as newly acquired crypto trading platforms like TaoTao and B2C2. SBI purchased a 90% stake in B2C2, making it a subsidiary in December 2020, shortly after acquiring TaoTao crypto exchange in October.
In the report, SBI noted its continued support of XRP dividends as part of the company’s XRP shareholder benefits program.
The firm also reiterated its commitment to establishing a Singapore-based digital asset exchange in collaboration with Swiss SIX Digital Exchange. “We aim to further expand the liquidity of digital assets and services for institutional investors through collaboration with the SIX Group, which has a high level of expertise in dealing with institutional investors,” the firm stated.
SBI also mentioned its plans to set up a digital stock exchange in collaboration with Sumitomo Mitsui Financial Group. Dubbed Osaka Digital Exchange, the platform is expected to start trading digital securities in 2023.
SBI previously highlighted the positive impact of crypto on its business, reporting that SBI Securities’ trading revenue surge in 2019 came thanks to its crypto investment wing.
SBI Crypto, the mining subsidiary of Japanese financial conglomerate SBI Holdings, has opened its mining pool to the general public.
As one of the fruits of a strategic partnership between SBI and the German tech firm Northern Data AG, the pool reportedly now ranks 11th globally, according to SBI’s announcement on March 19. It mines three assets, Bitcoin (BTC), Bitcoin Cash (BCH) and Bitcoin SV (BSV), with a revenue measured in dollars per terahash per day of $0.3897, $0.3805 and $0.3519 respectively.
Prior to its partnership with Northern Data AG and the Texas-based data center operator Whinstone US back in February 2020, SBI’s announcement summarizes the company’s mining activities to date as follows:
“SBI Crypto has been self-mining digital assets in overseas mining farms since August 2017 and continues to expand its scale. The company will use its current mining power of approximately 1.1 EH/s to support and provide stability to the pool.”
The pool was first opened on a limited release earlier this year, and as of March 19 new users are able to request an account. By April, open signups without requesting an account will be available, with services in English, Mandarin and Japanese. While SBI notes that many of the pool’s features are specifically designed for an institutional clientele, individual customers are able to use the service.
SBI Holdings’ multiple cryptocurrency ventures via various subsidiaries to date have included the introduction of a Bitcoin lending service through its crypto investment subsidiary SBI VC Trade and acquisition of crypto exchange TaoTao via its foreign exchange and derivatives arm.
In December 2020, SBI announced a joint crypto-related project with Switzerland’s principal stock exchange SIX Swiss Exchange and has recently hinted at further crypto-related ventures in collaboration with foreign financial firms in the near future.
The Japanese conglomerate has also been extensively involved with Ripple, and has been supportive of the company throughout its ongoing legal difficulties in the United States. SBI CEO Yoshitaka Kitao has previously said that Japan would be the most likely country for Ripple to relocate to if it is compelled to leave the U.S.
