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The Japanese crypto exchange operator DMM, through its blockchain gaming and NFT sector known as DMM Crypto, has announced significant funding from Neoclassic Capital and other investors, spotlighting its aspirations for global expansion. This funding comes alongside a new strategic partnership with Singapore-based Presto, a quantitative trading firm and liquidity provider.
DMM Crypto’s Vision for Global Expansion
Led by Neoclassic Capital, a Florida-based investment firm, the recent funding round aims to bolster DMM Crypto’s efforts to enhance its services and accelerate international growth. Although the exact amount of investment remains undisclosed, DMM expressed that this partnership is a pivotal move toward expanding its footprint in the crypto market.
The Financial Services Agency (FSA) of Japan is also in the process of reviewing crypto regulations, which may lead to lower taxes on gains and a reclassification of digital assets. This regulatory shift could further facilitate DMM Crypto’s expansion efforts and broader acceptance of cryptocurrencies in Japan.
Background of DMM Group
DMM Group, which operates a variety of online services including video streaming, anime, and e-books, notably faced challenges in May 2024 when its crypto exchange arm, DMM Bitcoin, was hacked, resulting in the loss of approximately $305 million in assets. Despite this setback, DMM has ambitious plans for DMM Crypto, which was established in 2023 to enter the burgeoning areas of web3 and crypto gaming.
Innovative Ventures: Seamoon Protocol
One of DMM Crypto’s major projects is the Seamoon Protocol, an innovative web3 economic ecosystem aimed at providing diverse businesses and creators access to blockchain technology. This initiative reflects DMM’s commitment to integrating blockchain across various sectors, potentially reshaping how digital assets are utilized in the entertainment industry.
Upcoming Blockchain Gaming Releases
DMM Crypto is on the verge of launching a new blockchain game titled Kanpani☆Girls RE:BLOOM this month. In addition, the company has plans to unveil several other blockchain games in the near future, marking a significant step in its gaming portfolio expansion.
Furthermore, DMM Crypto is looking to expand into financial services, following a recent agreement with Hivemapper, a project leveraging blockchain for AI mapping technology. This strategic move signals DMM’s intent to diversify and strengthen its offerings within the digital finance space.
Support from Neoclassic Capital
Steve Lee, Co-founder and Managing Partner of Neoclassic, expressed enthusiasm about DMM’s established position as a key entertainment conglomerate in Japan. He conveyed confidence that this partnership would enhance DMM Crypto’s ambitions both within Japan and on a global scale.
Neoclassic recently made headlines with its investment in doublejump.tokyo, a blockchain gaming startup in Japan, indicating a growing interest in the country’s gaming sector, further aligning with DMM Crypto’s mission.
Customer Compensation and Regulatory Compliance
In the aftermath of the May hacking incident, DMM Bitcoin has committed to compensating affected customers with Bitcoin (BTC) payouts. This response comes as the organization strives to regain customer trust. Japanese regulators have mandated DMM to improve its business practices to avoid potential punitive actions, highlighting the ongoing scrutiny of crypto operations in Japan.
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