Kazakhstan achieves first retail payment with digital tenge

Zipmex Thailand halts crypto trading citing SEC complianceTroubled cryptocurrency exchange Zipmex Thailand has recently announced the temporary suspension of digital asset trading until early next year.Photo by Anh Tuan To on UnsplashTrading and deposits suspendedThe decision, outlined by the firm in a Facebook post on Saturday, is attributed to the platform’s efforts in ensuring full compliance with the standards set by Thailand’s Securities and Exchange Commission (SEC).In the Facebook post, Zipmex Limited addressed its customers, stating:“Dear customers, Zipmex Limited would like to ensure the proper and compliant conduct of the company’s business operations in accordance with the criteria set by Thailand’s Securities and Exchange Commission (SEC).”The suspension of digital asset trading and deposits of all types became effective from Nov. 25.Withdrawals remain openDespite the suspension, customers will retain the ability to withdraw Thai baht and digital assets from their Trade Wallet through the website and mobile application until Jan. 31, 2024. However, for digital assets categorized as “Trade Only,” customers are instructed to contact Customer Support for withdrawal. Beyond Jan. 31, 2024, when the withdrawal feature through the website and mobile application is suspended, customers will need to seek assistance from Customer Support.Zipmex Thailand also emphasized that the withdrawal process for digital assets may take between seven to 14 days, requiring customers to provide supporting documents for identity and account ownership verification.As a cryptocurrency exchange headquartered in Singapore and operating in multiple countries, including Thailand, Australia and Indonesia, Zipmex has already fallen foul of Thailand’s SEC. Earlier this year, it was hit with penalties related to allegations of improper use of a digital asset custodian service and the redirection of customers to the Singapore-based exchange, Zipmex Pte, creating a conflict of interest.Financial difficultiesThe exchange has faced financial challenges, including difficulties in repaying creditors after losses incurred from exposure to crypto lenders Babel Finance and Genesis in 2022. A planned $100 million buyout earlier in the year fell through when the buyer, reportedly V Ventures, withdrew from the purchase.Zipmex’s troubles date back to last summer when the exchange halted withdrawals due to volatile market conditions and a liquidity crunch resulting from exposure to the troubled crypto lender Babel Finance. Despite facing financial difficulties, the exchange expressed its commitment to maintaining the integrity of its platform.In August of the same year, Bloomberg reported that Zipmex intended to meet with potential investors and Thailand’s financial regulator to discuss a recovery plan. By November, the platform was in advanced discussions with venture capital fund V Ventures for the sale of a majority stake.Earlier this year, the Thai Securities and Exchange Commission announced an investigation into whether Zipmex breached local rules in its offering of certain digital-asset products. In April, the company filed a request to extend the moratorium period to enable the firm to work towards restructuring. Later that month, it appeared that the V Ventures investment deal had fallen through. By July, the beleaguered firm had sued the investor for breach of contract.The ongoing challenges faced by Zipmex underscore the complex landscape and regulatory scrutiny surrounding cryptocurrency exchanges in various jurisdictions.

XPLA-Kado Partnership allows fiat-to-crypto transactions for XPLA usersXPLA, the layer 1 blockchain project operated by South Korean gaming company Com2uS Group, announced on Friday (local time) its partnership with Kado, a fiat-to-crypto on/off ramp platform, enabling XPLA users to move between fiat currencies and cryptocurrencies seamlessly.Photo by Ibrahim Boran on UnsplashXPLA available via Visa, MastercardKado simplifies the process of converting between fiat and crypto. Usually, Web3 users have to deal with the inconvenience of using centralized exchanges to make such conversions. But Kado makes this much easier, allowing users to make purchases with either fiat currencies or cryptocurrencies. The platform accommodates an array of more than 20 fiat currencies and supports well-established payment options, including Visa, Mastercard, Apple Pay, ACH Transfer and Wire Transfer. Moreover, Kado’s services extend across over 150 countries that support Know Your Customer (KYC) protocols.Paul Kim, CEO of XPLA, acknowledged Kado’s contributions to establishing a base for the growth of the Web3 economy. He pointed out that this collaboration will make it simpler and more intuitive for XPLA users to engage with the Web3 economy. Thanks to Kado’s services, XPLA users will now be able to transact with their tokens with greater ease.Vince Dowdle, co-founder of Kado, underscored the importance of this partnership, noting that Kado has recognized XPLA as a frontrunner in shaping the future of Web3 gaming. This recognition comes from XPLA’s proactive stance in acquiring the intellectual properties (IPs) of multiple major games, reflecting a firm belief in the potential of the Web3 content space.Meanwhile, XPLA boasts a diverse roster of validators such as Oasys, Animoca Brands, YGG, Blockdaemon, Cosmostation and LayerZero. It has also onboarded popular games like Summoners War: Chronicles, Minigame Party, Ace Fishing: Crew, Idle Ninja Online and The Walking Dead: All-Stars. With these titles, XPLA is actively working to establish itself as a major hub for Web3 content on a global scale.

Singapore Judge Says Crypto Not MoneyIn recent years, legal processes in various jurisdictions worldwide have seen judges comment on whether cryptocurrency is actually money. The latest such determination has been made by Justice Vinodh Coomaraswamy who outlined in a Singapore court that while being a component of financial transactions, cryptocurrencies are not money.The consideration emerged in a recent court hearing at Singapore’s High Court in a case involving the Algorand Foundation and failed Singapore-based hedge fund, Three Arrows Capital (3AC). Justice Coomaraswamy’s comments arose due to a discussion in the midst of the court proceedings involving the Judge and counsel representing the Algorand Foundation.©Pexels/EKATERINA BOLOVTSOVASeashells as moneyIn setting out his rationale for the need for 3AC to be wound up, Daniel Chan, a lawyer for the WongPartnership law firm that was representing the Algorand Foundation in the proceedings, told the judge that despite foreign currencies not being recognized as legal tender in Singapore, or used broadly as a medium of exchange within the city state, those foreign currencies are recognized by Singapore law as money. Using that analogy Chan suggested that by implication, the same scenario should be considered where cryptocurrencies are concerned.The judge provided a counterpoint: “What if you had a [community] in the world that used seashells as its internal medium of exchange? Would the Singapore courts have to recognize that as money.” Chan claimed that the judge had used an extreme example although Coomaraswamy remained steadfast in his view, pointing out that seashells had indeed been used as a form of money in the distant past.Coomaraswamy proceeded to dismiss the Algorand Foundation’s winding up application. He acknowledged that the Foundation did have standing in bringing the application. However, as he determined that cryptocurrency couldn’t be classed as money, on that basis he dismissed the application. In conveying his decision, he stated: “The word indebtedness, in my view, must require a debt which is in fiat currency. Determining whether or not a particular intangible, such as cryptocurrency, is money would require a detailed examination of evidence which is not appropriate in the context of insolvency.”Legal tenderThus far, bitcoin has been recognized as legal tender in two countries — El Salvador and the Central African Republic. In 2020, a French court referred to the leading cryptocurrency as money, agreeing that Bitcoin loans can be recognized as customer loans in the same way as loans denominated in fiat currencies. Earlier that year, an Australian court recognized bitcoin as a legally legitimate form of investment. In the United States, a Federal court recognized bitcoin as “money” or “funds” in a prosecution taken against Silk Road website operator Ross Ulbricht.There have been many similar instances in courts globally where judges have had to grapple with the consideration of whether bitcoin and crypto more generally can be regarded as money. Similar to the difficulty authorities are having in regulating cryptocurrency, it’s an issue that in most cases lacks complete clarity and in which we can expect further discussions on, similar to this most recent consideration in the Singaporean high court.