WeMade and Whampoa Digital Join Forces to Launch $100 Million Web3 Fund in Dubai
WeMade, the company behind the WEMIX Web3 gaming platform, has partnered with Whampoa Digital to launch a $100 million fund focused on Web3 projects in the Middle East. Meanwhile, China wants to restrict the use of in-game tokens within the games.
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South Korean video games maker WeMade has announced a strategic partnership with Whampoa Digital to launch a $100 million Web3 fund. The Wemade Web3 fund will be based in Dubai and focus on investing in digital assets projects in the Middle East region. WeMade operates the Web3 gaming platform WEMIX.
According to the announcement, the two companies will collaborate on several projects and initiatives while co-investing in promising Web3 projects. Part of the fund will support developers building on the WEMIX Play Center in the Dubai International Financial Centre (DIFC) Innovation Hub.
The partnership highlights the strong interest investors in the Asian-Pacific region have in the Web3 ecosystem. Companies in the area have been leading Web3 investments in recent years. Whampoa Digital is the technology arm of Singapore-based private investment firm Whampoa Group. With the partnership, Whampoa Digital will become an ecosystem partner to the WEMIX Play Center.
Speaking on the deal, Whampoa Group senior partner Aureole Foong said,
"We are excited to be joining forces with Wemade, a powerhouse in the Web3 gaming space. This partnership will allow us to pioneer new horizons in the digital asset industry beyond our already established sectors."
Meanwhile, the fund further demonstrates the growing Web3 ecosystem in the Middle East region and Asia-Pacific. The United Arab Emirates and Singapore have become hubs of blockchain technology development and adoption due to their regulatory landscapes.
Government policies have attracted several Web3 startups, especially in the UAE. For instance, the DFIC innovation hub is an example of a lenient government approach. The hub is home to over 700 tech companies, startups, research institutes, digital labs, and other entities.
China to Restrict Use of In-Game Tokens Outside Games
However, not all Asian countries are receptive to Web3 innovations in gaming. According to a draft guideline from the General Administration of Press and Publication in China, the regulator wants to restrict the use of in-game tokens in the online gaming industry. The proposed rule in Article 23 wants to ban the use of in-game tokens to purchase physical goods or exchange them with legal tender.
The rule does not mention crypto, leading to speculation that it could still be possible to exchange in-game tokens for crypto. But this is likely prohibited, too, since cryptocurrencies are banned in China.
There are other proposed rules, such as the requirement for companies to get a license in the country before they can operate. Online game providers must also store customers' data for up to 2 years and make sure their contents align with nationalist and socialist values. One of the rules also stipulates that game providers must completely prevent anonymous registration.
The guidelines have only been made available for public consultation, and no final decision has been made. The consultation will end by January 22, 2024.
