Hong Kong and Singapore, as leading global financial centers, have both taken steps this year to regulate cryptocurrencies and have issued clear compliance policy guidance. However, why has Sora Ventures, a cryptocurrency fund managing over $70 million, favored Taiwan among many other advanced countries, and how does partner Jason Fang, a Bitcoin OG, view the future of Bitcoin?
Summary:
Headquartered in Taipei! $70 million cryptocurrency fund Sora Ventures focuses on Taiwan
Background:
Why is the Sora Ventures headquarters located in Taiwan? Managing partner: More freedom than Hong Kong and Singapore!
Table of Contents:
Singapore: Considering practical benefits of cryptocurrency industry cluster
Hong Kong: China’s established cryptocurrency free port
Contrary to exchanges, VC thrives in Taiwan
Taiwan is a noise-free and pure environment
“If we had been in Singapore at the time, we would have been cut by FTX…”
Bringing more energy to Taiwan
Market commentary: “Buy the rumors, Sell the news”
As one of the earliest risk investment funds in Asia to venture into blockchain technology and digital assets, Sora Ventures has successfully maintained stable growth through the ups and downs of the Web3 wave, from the bear market of 2018 to the collapse of LUNA last year and the downfall of the cryptocurrency exchange FTX. In December last year, Sora Ventures decided to relocate its business to Taipei and established its headquarters in Taipei 101 in September this year. Among cities such as Hong Kong, Singapore, and South Korea, why did Sora Ventures choose Taiwan? Jason Fang, the invited partner and co-founder of Sora Ventures, shares his insights from the perspective of venture capital.
Sora Ventures headquarters located in Taipei 101
Starting in 2016, Singapore, as a leading traditional financial center in Asia, was the first to launch a regulatory sandbox for financial technology innovation and began experimenting with the application of cryptocurrencies. With the introduction of the Payment Services Act (PSA) at the end of 2019, it was even more warmly welcomed by global exchanges at the time. When it comes to the early regulation in Singapore, Jason stated:
As Singapore gradually consolidates its position in the Asian cryptocurrency ecosystem, Jason pointed out that choosing Singapore is not only because of its policy advantages but also due to practical benefits. Due to industry clustering, Singapore has become an ideal place for those who want to enter the Web3 field. Coupled with Singapore’s advantage of being densely populated in a small area, people can establish networks in a short period of time.
This year, with the support of the Beijing government, various new cryptocurrency policies have centered around Hong Kong, and the Hong Kong government is also determined to make it a global leader in digital assets and digital finance. The Web3 base “Cyberport” was established with great fanfare at the beginning of the year. On June 1 this year, Hong Kong started accepting applications for virtual asset trading licenses, and HashKey Exchange obtained its license on August 3.
However, Jason holds a different view on the recent regulatory situation in Hong Kong. He believes that although these policies seem to be promoting Hong Kong as a global leader in digital assets and digital finance, they may not fully address the issues of market diversity and transparency.
Jason believes that the Chinese government clearly understands that blockchain technology is an important trend for the future. In the process of promoting entrepreneurship and innovation, President Xi Jinping himself has emphasized the potential and importance of blockchain technology. The government not only recognizes the value of private chains but also attaches particular importance to the potential of public chains, considering public chains to be more valuable than private chains. In fact, companies using public chain technology are already present in various fields, including Web2, traditional finance, and other industries.
From a practical perspective, Jason pointed out that the Chinese government faces a dilemma; they do not want the Chinese mainland population to be excessively involved in the understanding and use of Bitcoin or other cryptocurrencies. Therefore, guiding mainland Chinese companies to Hong Kong is the only option to maintain national stability.
“VC expectations are opposite to exchanges.” Jason explained that from the perspective of venture capital, although Taiwan’s regulations are not completely open, and in some aspects, such as the legal system related to exchanges, a complete framework may not have been established. However, Taiwan is a free country, and this freedom is attractive to venture capital firms. Compared to strict regulations required for the public or exchanges, VC tends to prefer an environment without government intervention.
Exchanges expect to operate in an environment with clear rules and regulations to protect their employees, products, companies, and assets. Such an environment can help them rapidly expand their scale. However, it is also curious how the well-regulated Singapore government affects VC.
Jason revealed that when FTX collapsed last year, it was not just a heavy blow to the Singapore government, but the entire cryptocurrency ecosystem in Singapore was in turmoil. At that time, due to the close relationship between the Singapore government and the US government, the SEC’s positive evaluation and promotion of the FTX platform indeed influenced Singapore’s policy direction, leading the Singapore government, exchanges, VC, and projects to all use FTX.
Jason pointed out that Singaporean and Hong Kong VCs and cryptocurrency projects usually need to obtain specific licenses. These regulations impose many restrictions on investment and operations. From the perspective of VC, if every investment is subject to strict regulations, including which information can be disclosed, which exchanges can be used and which cannot, and which projects can be invested in, these restrictions are too binding for investors.
Not only limited to investments, Jason further mentioned that if developers want to hold Demo days or Hackathons in Taiwan, they generally do not encounter government intervention. These seemingly natural events may require communication with government departments in Hong Kong or Singapore to avoid potential issues or misunderstandings.
As a VC that is “focused on operations” in Taiwan, what substantial impetus can it bring to Taiwan’s Web3 industry? Jason cited the “Sora Summit 2023” held in Taipei on December 16 as an example. The conference will discuss topics such as the Bitcoin ecosystem, De-Sci, cryptography, etc. He believes that this can indeed bring a lot of educational energy to Taiwan’s Web3 industry and inject new vitality into the developer community.
The event invited several renowned speakers from the global blockchain ecosystem, including Bitcoin Entrepreneurial Laboratory, Origin Protocol, BRC20, Bitcoin Magazine Ventures, OnchainMonkey, and Bankless Ventures. It is worth mentioning that Casey Rodarmor, the creator of Ordinals Protocol, and Domo, the creator of BRC20, also gave public speeches in Taiwan.
Extended reading:
Sora Summit 2023 to Land in Taipei in December, Discussing the Future of Web3
Bitcoin has been on a strong upward trend since mid-October, with the market believing it is propelled by positive news about Bitcoin spot ETFs. Dynamic Zone also asked Jason, who has experienced multiple bull and bear cycles and is a Bitcoin OG, about his views on the current market. Jason reminded readers that although Bitcoin’s price has recently risen, investors must remain cautious because nothing can continue to rise forever.
At the end of the interview, Jason has a message for all partners in the cryptocurrency industry:
The essence of Bitcoin and other cryptocurrencies is not as traditional financial products but as innovative technological inventions. They should not be seen as purely speculative products or securities but as technological innovations with extensive applications and potential. Jason believes that the emergence of Bitcoin is to counter the traditional securities market and promote decentralization. He used Amazon as an example to explain why its stock price can continue to rise.
Therefore, when evaluating the true value of these technologies, the market should consider their practical applications and potential impact in Web3, rather than just treating them as speculative means. Through his words, Jason also demonstrates Sora Ventures’ mission to invest in the Bitcoin ecosystem.
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Tags:
Buy the rumors
Jason Fang
Sell the news
Sora Ventures
Taiwan
Singapore
Hong Kong