At any given moment, at least half of the top 10 ranked cryptocurrency exchanges are Asia-based exchanges. A recent report found that Asian cryptocurrency users are responsible for over 31 per cent of all cryptocurrency transacted in the past 12 months.

China alone controls 65 per cent of Bitcoin global hashrate, making China the jumping point for most new Bitcoin activity. 

Asia has always been the most active and important region for the industry, as deep-rooted technology and gaming prowess create a natural fit for digital currencies. This has led to many exchanges, service providers, and ancillary companies being set up in Korea, Hong Kong, Thailand, Japan, and other top markets. 

Unfortunately, a consistent stream of regulatory pressure and security incidents has caused one blow after another for Asia-based exchanges in 2020. The landscape is clearly changing as regulators feel international pressure and sophisticated hackers look to exploit security loopholes.

During this time, Decentralised Exchanges (DEXs) have exploded in popularity, with daily volume exceeding some of the largest centralised exchanges. 

The implications of these changes are clear. Users want more control of their funds and are risk-tolerant enough to “gamble” their funds on decentralised finance (DeFi) yield strategies versus risking them on centralised exchanges that have control of a users’ private keys. We are witnessing a battle taking place between multiple stakeholders. 

Also Read: How bright is the future of cryptocurrency?

String of unfortunate events for Asian exchanges

On September 26, Singapore-based cryptocurrency exchange KuCoin announced that it had been on the receiving end of a major hack. As a result, its Bitcoin, Ether, and ERC20 hot wallets were compromised, leading to an estimated US$240 million loss of customer fund.

Kucoin took swift action, encouraging projects to conduct token swaps in order to deem stolen assets worthless. Most projects (Orion Protocol, Aleph.im, Akropolis, Velo Labs, etc.) complied, helping reduce the total loss. 

Interestingly, it wasn’t only centralised projects that came to the rescue. Some of the affected DeFi token projects also offered assistance, with varying degrees of community involvement that questioned the truly decentralised nature of such protocols.  

Just five days later on October 1, Hong Kong-based BitMex, one of the industry’s leading futures exchanges, was charged by the CFTC for illegally operating the exchange and allowing US customers to trade without the proper KYC/AML requirements.

A few weeks later, SEC Chairman Hester Peirce, nicknamed “Crypto Mom”, announced a warning to other global exchanges. This solidified the US’s stronghold on the industry, even for exchanges domiciled in Asia with the majority of their user base in Asia. 

Lastly, on October 15, Maltese-Chinese exchange OKEx halted trading after reports surfaced that the company’s founder was under investigation by the Chinese government. Similar to the other news, this caused a mild panic in the markets with Bitcoin dropping three per cent following the news break.

It is important to note that this is not the first time OKEx has been an under-reported investigation and these kinds of inquiries are not uncommon in crypto. Just a month earlier, Korea-based Bithumb had its offices raided twice by local police forces. While not unique, these events all happened within a six-week span, showing a more recently complicated landscape for exchanges. 

Also Read: 5 reasons why crypto exchanges need to be decentralised

Decentralised exchanges solve industry challenges

A decentralised exchange or protocol that has a single point of failure, be it through admin keys or a founding team at risk of SEC censure, is not sufficiently decentralised to survive. It was the risk of legal proceedings that prompted IDEX to enforce KYC for traders.

The move proved a death-knell to the DEX, which is now a shadow of its former self, having been usurped by Uniswap – the industry’s most popular DEX at the moment.

To solve this problem, and create a truly censorship resistant trading environment, a number of new DEXs have sprung up aiming to create decentralised platforms that can survive black swan events, be it litigators or hackers.

Chief among these is Injective Protocol, which is pioneering a layer-2 DEX for cross-chain derivatives trading and is debuting on Binance Launchpad this month. Its promise of high-speed non-custodial trading, including derivatives products, might be enough to tempt traders away from centralised platforms such as Deribit and BitMex. 

When thinking about DEXs, it is only natural to think about DeFi as both go hand in hand. Despite significant differences to centralised exchanges and their non-custodial and community governance nature, DeFi projects may still be susceptible to regulatory action, if deemed necessary, due to problems surrounding central authority and administration. 

Many DeFi projects continue to build up levels of decentralisation within their protocol, helping to protect against such enforcement. However, unless DeFi platforms including DEXs can sufficiently improve decentralisation across the full spectrum of their projects, significant, if not existential, threats remain.

On the bright side, the CFTC action serves to emphasise the importance of actual decentralisation, pushing cryptocurrency projects further in that direction to avoid regulatory risk. In a week where BitMEX was cut down to size and Kucoin suffered a massive hack, the need for a truly decentralised exchange such as Injective has never been greater.

Also Read: XanPool launches platform to enable P2P transactions from local currency to cryptocurrency in SEA

The goal is to bring the best of what the industry offers, including its users around the world, and make an accessible ecosystem that is borderless and safe. This is where the importance of the product comes into play. An exchange could have a flawless track record for years and still suffer from an unforeseen event that could jeopardise user funds in the meantime. 

Expect to see more DEXS come into play in Asia, with a more critical user base that understands the technology, including the limitations that a DEX might have below the surface.

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VIISA, a seed-stage fund that invests in startups from Vietnam, today announced the two startups that have been selected to the eighth batch of its accelerator programme.

The selected startups will receive a follow-on funding of up to US$200,000 from VIISA Investment Track if they manage to obtain funding from an outside lead investor.

Other than that, the programme –which is held fully online– is also offering startups the opportunity to connect with corporate partners and prospective investors throughout the three months.

“It is truly inspirational witnessing Vietnamese founders remain thriving throughout the COVID-19 pandemic time. Their strong determination in working with VIISA programme has once more put more pressure on the value creation philosophy VIISA has committed to,” Hieu Vo, CFO of VIISA, said in a statement.

The startups of Program Batch 8 and other startups of the VIISA alumni will be showcasing their businesses in December 2020.

Also Read: Algorand Asia Accelerator debuts 10 blockchain startups that aim to innovate under Finance 3.0

The two startups selected for this programme are:

DoctorBear

A mobile app platform that enables users to consult with specialised doctors via video call and offers various test packages according to the treatment plan. The DoctorBear team consists of a group of medical doctors with over 15 years of professional experience and an in-house technology chief. It has a long-term goal to expand to Southeast Asian market.

DrobeBox

A fashion tech startup that offers clothing subscription service and uses AI to recommend clothes to women. In addition to renting the clothes, DrobeBox gives an opportunity for the customers to own any item they love after fitting. The team believes that AI technology “can recommend clothes to women better than themselves.”

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Image Credit: VIISA

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Startup Studio, the accelerator runs by the Indonesian Ministry of Communications and Informatics (Kemenkominfo), announced the 20 startups that have been shortlisted into its programme.

Targetting early stage startups, Startup Studio said that it has received 668 applicants from 32 provinces in Indonesia. From October 5 to November 26, the startups will take part in a programme that includes a series of online events, such as one-on-one mentoring, brainstorming session, networking event, and a pitch day.

The startups are:

AgenKAN
An integrated fintech platform that aims to reach out to the underserved communities in Indonesia.

Biteship
A one-stop platform for inter-city courier service.

Career Support
A social enterprise that empowers schools by giving them career centres and helping their students.

Feedloop
A content-builder platform that enables users to create shareable, interactive stories.

Also Read: In brief: Silver Lake invests in Byju; Launcho Ventures launches startup studio in S’pore

Halofina
A mobile financial advisory app.

Jejak.in
A platform that enables users to plant a tree and monitor its growth to help fight climate change.

Justika
An online platform that enables legal consultation at a more affordable fee.

Keeppack
An e-commerce fulfilment platform.

Larik.tech
A code walkthrough platform built to simplify code understanding.

Moodah
A mobile accounting platform for SMEs.

Nectico
A platform that aims to enable the digitalisation of cooperatives in Indonesia.

Rakamin Academy
A platform that helps professionals to get training and networking.

Also Read: Singaporean film distribution startup Viddsee is becoming a production studio

Rekosistem
The startup provides consultancy services that focus on waste management projects.

Payo Kepasar
A mobile platform that enables on-demand shopping and delivery service of fresh produce.

PTS.SC
A platform that enables end-to-end supply chain management.

Schoters
A platform that helps international students to prepare for their study abroad.

Tumbasin
A platform to help customers shop in wet markets.

Verihubs
A platform that uses AI to help with the customer identification process.

Waterhub
The startup builds drinking water refill station that is connected to a mobile app.

Also Read: This Asia-based startup has just teamed up with three major Hollywood studios

Woobiz
A platform that helps users to sell goods online and offline.

The Startup Studio programme followed the launch of other initiatives by the ministry to support the local startup ecosystem, including Gerakan Nasional 1000 Startup and Next Indonesia Unicorn (Nexticorn).

In the latest edition of Nexticorn, Minister of Research and Technology Bambang Brodjonegoro explains how Indonesia wants to support startups differently in 2020. While previously, the task of working with startups was dominated by Kemenkominfo, starting Q4 2019, Ministry of  Research and Technology (Kemenristek) will also take part in it.

“We are more upstream, responsible to create as many startups as possible. Kemenkominfo will be more on the downstream and infrastructure,” he said.

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Image Credit: Uray Zulfikar on Unsplash

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Klikdaily, an FMCG supply chain startup in Indonesia, is planning to launch an initial public offering (IPO) in the next three years, its Founder and CEO Amos Gunawan told e27.

The Tangerang, Banten-headquartered company is considering various stock exchanges in Southeast Asia for the IPO debut.

Also Read: What does Peter Thiel-backed Bridgetown’s IPO mean for SEA’s startup ecosystem?

The discussions are still in the initial stages, and the company is “actively communicating” with its investors and partners in this regard.

“At Klikdaily, we follow a culture of ‘don’t wait for the right time to do something as there will never be a right time. Just do it’,” stated Gunawan. “We hope to launch a successful IPO with the right support and business strategy and by expanding into many vital sectors.”

“Since the beginning, we have been focused on the right and strong business model and market fit, and we would like the public to support our growth even further. Supply chain is a vast market. By going public, we would like to bring the industry to the next level,” he shared.

Klikdaily is a one-stop solution for traditional mom ‘n’ pop stores to get various products from multiple brands with a competitive price. As on May this year, the firm claims to have served thousands of stores in 600 districts across Indonesia.

Klikdaily claims that its business grew more than 900 per cent in the January 2019-September 2020 period and its service is now available in every province, district and sub-district across Indonesia.

A few months ago, Klikdaily secured an undisclosed sum in Series A funding, led by Berlin-based Global Founders Capital (GFC). This round came less than a year after it secured pre-Series A from GFC, Pegasus Tech Ventures, FundedHere and Teja Ventures.

Also Read: ‘Companies shut down not because of crises but only when founders give up’: Joseph Phua of M17

According to Gunawan, Klikdaily plans to execute three innovation strategies that focus on sustainability and National Economic Recovery. These strategies will be carried out through locally-produced products (private labels), through an effective and efficient supply chain ecosystem and by providing financial support for MSME partners.

In the near future, Klikdaily, together with strategic its partner producers, plans to launch 25 private labels.

“We believe in the importance of building a sustainable business that continues to provide solutions for people. Based on a data from Supply Chain Indonesia (SCI), the sector has more than 12 per cent of average annual growth that contributes nearly US$70 billion to the nation’s economy in 2020. This means there is a huge market in the supply chain sector,” he shared.

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Image Credit: Klikdaily

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Temasek, ABC World Asia join v2food’s US$55M Series B

The story: Temasek and ABC World Asia, an Asia-focused PE fund dedicated to impact investing, have participated in the Series B funding round for Australian plant-based meat startup v2food.

Other investors participating in this round include Altitude Partners, China Renaissance, Esenagro, Horizons Ventures, Marinya Capital, Main Sequence Ventures, and Novel Investments.

Plans: This round, which takes v2food’s total funds to US$80 million, will enable it to expand its team and production facility in Wodonga, Australia, as well as launch its products globally into new markets including Asia, and bring its affordable meat alternatives to more consumers worldwide.

What does v2food do?: Founded in 2019 as a partnership between Australia’s national science agency CSIRO, Main Sequence Ventures and Competitive Foods Australia, v2food’s goal is to create a ‘version two’ of meat. The company uses protein extracted from legumes to create ‘mince’ that looks, tastes and cooks like quality meat.

Also Read: German firm LikeMeat’s founder launches plant-based meat startup Next Gen in Singapore

Made entirely with simple, natural ingredients without genetic modifications, v2food’s plant-based meats provide consumers with convenient, tasty and, best of all, cost-equivalent alternatives.

TurtleTree Labs emerges global champion for Entrepreneurship World Cup 2020

The story: TurtleTree Labs, a biotech startup in Singapore that creates milk sustainably using cell-based technology, has emerged the winner of the 2020 Entrepreneurship World Cup (EWC), concluded at the fifth edition of the Misk Global Forum (MGF).

The startup also received US$500,000 in cash prize.

What is EWC?: It is a pitch competition and support programme for the next generation of entrepreneurs, with 175,000 entrants applying from 200 countries in 2020.

The EWC Top 10 finalists competed at the Global Finals for a share of US$1 million in cash prizes — US$500,000 for first place, US$250,000 for second place and US$100,000 for third place.

In addition, a cash prize of US$50,000 will be awarded to one top scoring startup from each of the following categories: idea stage, early stage and growth stage.

Each of the EWC finalists will also receive a package of in-kind services valued at US$850,000 each.

Also Read: Unable to find good milk to make her dream cheese, this founder created one from stem cells

All Global Finalists are enrolled in the GEN Starters Club, providing a global peer network, mentorship and other support services to help members, especially after the EWC, reach their full potential. Other partners may be engaged to provide post-EWC support.

IoT Tribe announces cohort 2 of deep-tech accelerator

The story: Singapore-based global equity-free accelerator, IoT Tribe, has unveiled its second cohort of 12 startups.

Held in partnership with Enterprise Singapore and the Singapore Economic Development Board on the Global Innovation Alliance initiative, the accelerator will assist deeptech startups on their expansion into and across Asia, using Singapore as a springboard.

The hybrid programme will feature eight weeks of virtual capacity building workshops, events and webinars, followed by a 4-week soft landing in Singapore set to commence at the start of 2021, subject to public health advisories.

The programme will help startups hone their business strategy, perfect their product-market fit, access Asian markets, scale up their processes and teams, as well as raise their next rounds of investments.

The 12 startups selected are:

Aromatec, which offers gentle and efficient ‘cold’ concentration processes to disrupt traditional production processes in the food & beverage industry, from Singapore.

CHECKTOBUILD, a construtech startup that uses IoT and drone systems to provide an autonomous inspection service and business intelligence for large-scale construction projects, from Madrid, Spain.

Cognicept Systems, which provides human-in-the-loop (HITL) error handling with its telerobotic networking technology and remote robot trainers, making unpredictable applications reliable and enabling previously impossible use cases, from Singapore.

Dot Incorporation, which has invented a revolutionary and affordable full-page ‘tactile display’ that can display braille text and tactile graphics simultaneously, from Seoul, South Korea.

LexaTexer, a software company that can build enterprise-scale AI and data-driven applications more efficiently and cost-effectively than alternative solutions, from Berlin, Germany.

Macco Robotics, a startup specialising in creative and user-friendly applications for humanoid robots in the food & beverage, leisure and hospitality sectors, from Sevilla, Spain.

Neuron Soundware, which reshapes machine diagnostics and predictive maintenance by using advanced AI-based analyses to recognise sound patterns in real-time and provide early warnings of mechanical failures, from Prague, Czech Republic.

QLUE, which implements AI-powered smart workforce management to improve workforce response time and productivity, from Jakarta, Indonesia.

Quadible, which offers an AI solution that continuously authenticates users without the need for any user input, by learning their behavioural patterns, from London, UK.

Themis Industries, a startup using innovative technology as an advanced waste treatment solution that can reduce operational costs and eliminate pollutant emissions, from Milan, Italy.

Vyobotics, which offers affordable robotic solutions with plug-and-play modules to serve the needs of various sectors, based in Singapore.

Wild Immersion, the world’s first virtual reserve that harnesses new technologies to create 360° immersive experiences showcasing wildlife in their natural habitat, from Paris, France.

Bangladesh’s B2B commerce platform ShopUp raises US$22.5M Series A

Investors: Sequoia Capital India and Flourish Ventures (lead investors), VEON Ventures, Speedinvest, and Lonsdale Capital (Singapore).

What is ShopUp: ShopUp offers small businesses easy access to B2B sourcing, last-mile logistics, digital credit, and business management solutions. This helps these neighborhood mom-and-pop sellers achieve more profit with less effort, allowing them to focus their efforts towards engaging with their customers and business expansion.

Also Read: Why Bangladesh is the next frontier for tech investment

The startup opened its office in Bengaluru, aiming to expand and hire talent aligned to the company’s vision and goal. E-commerce platform Voonik also recently merged with ShopUp, with both founders of Voonik joining ShopUp as co-founders.

LINE launches social banking platform in Thailand

The story: LINE Corporation has launched LINE BK, a ‘social banking’ platform, connecting the social media platform to KASIKORNBANK.

Under the slogan ‘Banking in Your Hand’, LINE BK lets customers transfer money, open savings accounts, apply for loans, and make payments easily and conveniently from the LINE app.

LINE BK is operated by KASIKORN LINE, a joint venture between LINE subsidiary LINE Financial Asia and KASIKORN Vision Company, a subsidiary of Thailand’s KASIKORNBANK.

Beginning October 15, LINE BK was launched under the Wallet Tab in the LINE app in Thailand.

From this link, users in Thailand can sign up for LINE BK, open as many as five savings accounts, and apply for a debit card, without having to install any additional apps. LINE BK also offers high interest rates for saving accounts and unlocks a range of banking services including personal loans for freelancers and individuals without fixed incomes.

LINE plans to expand banking services into other countries, including Japan, Taiwan, and Indonesia.

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