Sebastian Sinclair

Failed crypto exchange FTX intends to make Vietnam-based users whole following email notifications reportedly sent out to former users last week.



According to a screenshot of the email, users are receiving a notification because they’ve been “identified as a customer with a net positive account balance,” when the exchange filed for bankruptcy in November, per local media outlet <a href="https://e.vnexpress.net/news/economy/bankrupt-ftx-raises-vietnamese-investors-hopes-with-email-4588667.html" target="_blank" rel="noreferrer noopener">VNExpress</a>.



Users named in the report believe the email to be legitimate with the balances in their accounts considered accurate. The email also informs users any funds distributed would have to be settled by courts. It’s unclear how much will be returned.



FTX was not a major player in Vietnam, though it still left many locals out of pocket. <a href="https://e.vnexpress.net/news/economy/vietnamese-investors-caught-napping-as-crypto-exchange-ftx-goes-bankrupt-4537483.html" target="_blank" rel="noreferrer noopener">Thousands of local</a> users were caught off guard late when revelations of misappropriating user funds came to light, sending the value of its FTT token plummeting. 



The scandal sent shockwaves across the global crypto community, dragging down the entire market. Initial estimates suggested <a href="https://www.youtube.com/watch?v=1dUS6tLZfUY&amp;ab_channel=YahooFinance" target="_blank" rel="noreferrer noopener">some $8 billion</a> in user funds were lost. 



A potential bid from Binance to acquire FTX fell through, culminating in the latter quickly filing for bankruptcy protection in November. FTX was valued at $32 billion only 10 months earlier.



FTX co-founder Sam Bankman-Fried has pleaded <a href="https://blockworks.co/news/sam-bankman-fried-issues-not-guilty-plea" target="_blank" rel="noreferrer noopener">not guilty</a> to several charges involving money laundering, fraud and violating campaign finance laws.



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FTX Vietnam Readies to Pay Back Users — Once Courts Figure How Much

<div id="highlights-block_62a1463432ad3" class="highlights">
 <ul>
 <li>Several notable investor participated in Ancient8&#8217;s funding round including Morningstar Ventures and Pantera Capital</li>
 <li>Funding will be used to further develop the company&#8217;s GameFi infrastructure software as well as grow its community, it said</li>
 </ul>
 
</div>



Vietnam-based blockchain firm Ancient8 said it has raised millions in additional funding to further its efforts in developing infrastructure for the GameFi sector in Web3.



In a statement on Wednesday, the company said it has raised $6 million in a funding round led by interactive entertainment venture capital firm Makers Fund and C² Ventures.



Participation from existing and new investors also came via Pantera Capital, 6th Man Ventures, IOSG Ventures, Folius Ventures, Morningstar Ventures, Th3ia Capital, Sky9 Capital and Play Ventures.



Funding will go toward the firm&#8217;s efforts in building out its software products as well as growing its community and gaming guild, Ancient8 said. The firm has an active user base of around 200,000 members, per the statement.



&#8220;We think Web3 games have brought a paradigm shift in the gaming industry for gamers and game developers,&#8221; Ancient8&#8217;s co-founder Howard Xu told Blockworks in an email. &#8220;Gamers get&nbsp;a new experience where they can earn substantial income by doing the things they love &#8211; playing games.&#8221;



GameFi – a portmanteau of gaming and decentralized finance – is a relatively new concept within the Web3 ecosystem designed to provide players with avenues of earning while they play, offering economic incentives including tokens and non-fungible tokens (NFTs).



Xu said it was thanks to major crypto gaming titles such as Axie Infinity – based out of Ho Chi Minh City – that the domestic sector began picking up steam. GameFi&#8217;s daily unique active wallets surpassed 1 million unique users for the first time last year, mainly driven by Axie Infinity, Xu said.



&#8220;We see thousands of blockchain games being developed&nbsp;since&nbsp;the success of Axie,&#8221; the co-founder said. Axie is the world&#8217;s leading blockchain game by total monthly active users.



Ancient8 is attempting to ride the <a href="https://fortune.com/2022/05/04/axie-infinity-sky-mavis-vietnam-crypto-blockchain-startups/#:~:text=Axie%20Infinity%20inspires%20a%20generation,the%20country%20from%20foreign%20investors." target="_blank" rel="noreferrer noopener">coattails of that success</a> and has established the &#8220;largest blockchain gaming guild&#8221; in the country. It also said it has partnered with more than 25 leading GameFi projects. Those partnerships include Axie Infinity and Phantom Galaxies – an open-world space simulation game published by Animoca Brands.



In the coming months, Ancient8 is expected to launch a &#8220;GameFi identity product&#8221; along with a pair of tokens designed to engage users via a go-to-market strategy for Web3 gaming. The firm added it would use the products to link up with other top blockchain games.



&#8220;Blockchain is revolutionizing the way games are being made by shifting a lot of the power originally held by game publishers to the hands of the game studio and players,&#8221; Xu said. &#8220;Gamers get&nbsp;a new experience where they can earn substantial income by doing the things they love – playing games.&#8221;



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Vietnam’s Ancient8 Gets $6M To Build Infrastructure Software for GameFi

<div id="highlights-block_62427e52b38a2" class="highlights">
 <ul>
 <li>Vietnam is once again researching the impact of crypto as it pivots toward a digital economy</li>
 <li>The research, spearheaded by the country&#8217;s Ministry of Finance, is intended to guide upcoming policy</li>
 </ul>
 
</div>



Vietnam&#8217;s Deputy Prime Minister Le Minh Khai has tasked the country&#8217;s Ministry of Finance with spearheading research for the implementation of a legal framework governing digital assets.



According to a report by local news outlet <a href="https://vietnamnet.vn/en/sci-tech-environment/vietnam-prepares-legal-framework-for-virtual-assets-virtual-currency-826055.html" target="_blank" rel="noreferrer noopener">Vietnamnet</a> on Monday, the ministry must identify specific legal documents requiring amendment or enactment for the management of the nascent asset class.



The research is being conducted alongside the ministries of justice, information and communications, as well as the State Bank of Vietnam.



This move is another step in the country&#8217;s march to formally legislate digital assets following the nation&#8217;s central bank&#8217;s ban on bitcoin and other cryptos for use as a <a href="https://tuoitre.vn/ngan-hang-nha-nuoc-tuyen-bo-cam-su-dung-bitcoin-20171028102135916.htm" target="_blank" rel="noreferrer noopener">means of payment</a> in 2017.



In August 2017, Vietnam&#8217;s then Prime Minister Nguyen Xuan Phuc issued Decision 1255, seeking the establishment of a legal framework to manage digital assets.



Vietnam&#8217;s research extends upon that decree by further studying crypto&#8217;s relationship with real assets and will assess the timeframe required for the legal framework&#8217;s implementation.



While some effort has been made in the past to push ahead with regulatory proposals, a decision has not yet been reached.



The government has not banned crypto trading and allows citizens to hold them as assets. Despite the country&#8217;s lack of a legal framework for owning, trading and using crypto, Vietnam&#8217;s adoption of digital assets — by total population — is among the <a href="https://www.statista.com/statistics/1202468/global-cryptocurrency-ownership/" target="_blank" rel="noreferrer noopener">highest in the world</a>.



A decision to study and guide policy discussion expands on multiple research mandates that assess crypto&#8217;s impact on Vietnam&#8217;s shifting digital economy.



It will also assess the requirements needed to develop legislation aimed at controlling risks but in such a way as to not affect other sectors including e-commerce and information technology, according to the report.



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Vietnam To Devise Legal Framework for Crypto

Ben Strack

<div id="highlights-block_6238d2ef7fed8" class="highlights">
 <ul>
 <li>AEX reported its user base is growing in Thailand, Vietnam, Russia, the United States and Canada</li>
 <li>A recent survey by consumer insights provider Toluna found that the most receptive countries to cryptocurrency were Vietnam, the Philippines, Thailand and India</li>
 </ul>
 
</div>



A digital asset platform has earmarked $100 million to develop the blockchain industry in Vietnam as the country’s residents have displayed a marked interest in cryptocurrencies.



The platform, AEX, plans to offer crypto financial derivatives in Vietnam, open an office and support the country’s blockchain ecosystem with the $100 million fund.



AEX Chief Brand Officer Shergina Asya said in a statement Monday that Southeast Asia is critical to the company’s further global expansion, and Vietnam is a key country within the region.



The company, founded in 2013, supports more than 300 tokens and has more than a million users.



The first $100 million will support local projects focused on the space. The company’s plans include providing high-quality decentralized finance (DeFi) projects with liquidity incentives and making crypto-financial firms compliant with regulations.



AEX also plans to launch the Vietnamese Blockchain Technology Competition and Hackathon in the second half of the year.



A spokesperson for the company did not immediately return a request for comment.



Vietnam’s Ministry of Finance established a research group last year, and the country’s prime minister later <a href="https://www.businessinsider.in/cryptocurrency/news/philippines-and-vietnam-are-considering-crypto-friendly-regulations/articleshow/84141407.cms" target="_blank" rel="noreferrer noopener">called on the country’s central bank</a> to start working on a crypto pilot.



A recently published survey by consumer insights provider <a href="https://tolunacorporate.com/" target="_blank" rel="noreferrer noopener">Toluna</a> found people in developing countries have a more positive opinion of cryptocurrency than people living in richer, developed countries. The report interviewed 9,000 people between the ages of 18 and 64 years from 17 countries.



The positive attitudes were especially true in the Asia-Pacific region and Latin America, according to the survey, which noted that the most receptive countries to crypto were India, Vietnam, the Philippines and Thailand.



Forty-one percent of people in Vietnam, Indonesia and Thailand said they invested in crypto because of its potential for short-term growth.



AEX launched its globalization strategy last June and <a href="https://www.prnewswire.com/news-releases/aex-is-advancing-globally-with-a-multi-dimensional-ecological-strategy-301437481.html" target="_blank" rel="noreferrer noopener">noted in December</a> that its user base was growing in Thailand, Vietnam, Russia, the United States and Canada.



The latest announcement comes as crypto exchanges are setting up shop across the globe.&nbsp;



FTX partnered with Africa-based AZA Finance to expand the adoption of Web3 and digital currencies across the continent. The exchange more recently <a href="https://cms.blockworks.co/ftx-launches-crypto-exchange-services-in-australia/" target="_blank" rel="noreferrer noopener">launched FTX Australia</a>.



<a href="https://cms.blockworks.co/binance-granted-license-to-operate-in-dubai/" target="_blank" rel="noreferrer noopener">Binance</a> and <a href="https://cms.blockworks.co/ftx-granted-crypto-license-with-dubai-hq-in-sights/" target="_blank" rel="noreferrer noopener">FTX</a> were also recently granted virtual asset licenses in Dubai after the emirate <a href="https://cms.blockworks.co/dubai-is-the-latest-government-to-roll-out-crypto-law-set-up-regulator/" target="_blank" rel="noreferrer noopener">revealed its first cryptocurrency legislation</a> earlier this month.



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