BPMG launches competition platform GemPION for Web3 gamers

Terraform Labs civil trial proceeds with confidential filingsSingaporean blockchain development firm Terraform Labs, the creator of the failed Terra blockchain protocol, has reached an agreement on a protective order in their ongoing civil case with the United States’ Securities and Exchange Commission (SEC).Photo by Thomas Habr on UnsplashData shielded from public disclosureThe decision, sanctioned by the U.S. District Court Judge Jed Rakoff in the Southern District of New York on Wednesday, ensures that materials marked as confidential by the involved parties will remain shielded from public disclosure. The court is obligated to seal any discovery filings labeled confidential ahead of the trial.Judge Rakoff conveyed his likelihood of denying requests to unseal these confidential documents, although the order did not delve into the specific rationale for maintaining their confidential status beyond citing “good cause.” The finalized agreement on this protective order took place on Dec. 18, with legal representatives from both the SEC and Terraform Labs, including co-founder Do Kwon, giving their consent. Kwon, presently detained in Montenegro, faces potential extradition to the United States or South Korea.Pivotal momentThe depegging of Terraform’s stablecoin TerraUSD (UST) from the U.S. dollar marked a turning point in the cryptocurrency sector. This event is believed to have significantly contributed to the crypto market downturn in 2022, as it had a knock-on effect on countless other crypto businesses and platforms that were over-exposed to the flawed algorithmic currency.That chain of events led to the SEC taking action after the fact. However, it has subsequently also pursued a much criticized “regulation by enforcement” policy relative to the crypto sector. To that end, the Commission has pending cases against Coinbase, Ripple, Kraken and Binance, among others.In February, the SEC accused Terraform Labs and Do Kwon of conducting a multi-billion dollar crypto asset securities fraud by offering and selling unregistered securities. As proceedings have unfolded, both Terraform and the SEC have traded unsuccessful attempts to obtain summary judgment.Far-reaching consequencesThe ongoing SEC vs. Terraform civil case carries potential far-reaching consequences in terms of legal precedents within the cryptocurrency sector. In a separate ruling in August, the court allowed Terra to issue subpoenas to FTX entities as part of FTX’s bankruptcy proceedings. Judge Rakoff, in November, accepted confidential materials from Jump Crypto Holdings for discovery in this case.Troubled crypto lender Genesis Trading has also been tangled up in the proceedings with the courts directing it to comply with a subpoena initiated by Terraform Labs. The outcome of this case is poised to offer essential legal guidance for numerous companies operating in the crypto space.The SEC’s regulatory approach toward cryptocurrency firms in the United States has been subject to considerable debate and criticism. The commission’s alleged “regulation by enforcement” strategy, especially in dealings with major players in the crypto industry, has drawn accusations.While many in the U.S. have been unhappy with “regulation by enforcement,” the upside is that over the longer haul, the courts will be able to eventually furnish the regulatory clarity that the SEC refuses to provide. The ongoing scrutiny of regulatory approaches and the outcomes of cases like Terraform Labs vs. SEC will undoubtedly shape the future legal landscape of the cryptocurrency industry.

India’s Jio Financial Services to Delve Into BlockchainJio Financial Services (JFS), a subsidiary of Indian multinational conglomerate Reliance Industries (RIL), is gearing up to venture further into the realm of blockchain and central bank digital currencies (CBDCs), according to announcements made by Indian billionaire businessman and Reliance Chairman and Managing Director, Mukesh Ambani, during RIL’s 46th annual general meeting on Monday.Photo by Shubham Dhage on UnsplashBlockchain ambitionsThe Indian billionaire revealed his Web3-related plans, signaling a strategic move for JFS towards blockchain and centralized digital currencies. While addressing the AGM, Ambani emphasized his current caution regarding highly volatile crypto assets. However, he indicated that he aims to have Jio Financial delve deeper into blockchain technology and permissioned digital currencies, particularly the eRupee CBDC, which is undergoing advanced trials within India.JFS will serve as the entry point for Reliance Industries into the Web3 sector. Formerly known as Reliance Strategic Investments, JFS has been rebranded and will now facilitate management services for digital assets.Consolidating payment infrastructureAmbani’s vision for JFS encompasses the consolidation of payment infrastructure, a strategic effort to drive digital adoption throughout India. JFS hit the headlines in July when it was revealed that it was forging a major partnership with BlackRock, the world’s largest asset manager, valued at over $100 billion as of August 18.Ambani’s statement during the RIL annual general meeting highlighted JFS’s objectives: “JFS will consolidate its payment infrastructure further driving digital adoption for India. JFS products will explore pathbreaking features such as blockchain-based platforms and CBDC.”CBDC development has been ongoing through initiatives taken by central banks around the world over the past couple of years. The Reserve Bank of India (RBI) has been no slouch in this respect. It is actively engaged in developing its own CBDC, aiming to modernize online payment systems while reducing reliance on physical cash, thereby optimizing operational efficiency.In July, the RBI turned its attention to the cross-border functionality aspect of CBDCs, experimenting with various use cases relative to international payments. At a governmental level, India is also playing a key role in working towards global regulatory standards for cryptocurrencies. The RBI has contributed to the discussion, citing risks associated with stablecoins in a Financial Stability Report released in June and calling for global regulation.RIL CBDC initiativesNotably, Reliance General Insurance recently announced its acceptance of the eRupee CBDC for premium payments, and earlier this year, Reliance Retail initiated the use of India’s digital rupee CBDC across its Mumbai-based stores. The CBDC is anticipated to outperform India’s successful Unified Payments Interface (UPI) mobile payments system, according to V Subramaniam, Managing Director at Reliance Retail.Ambani’s RIL empire encompasses a diverse range of businesses, including Jio’s network services, retail stores, and fuel stations. Mukesh Ambani’s move to embrace blockchain and CBDCs will likely have broader implications beyond his own companies, given that it signals his intention to drive India’s digital transformation forward.

Huobi Anticipates Break-Even in Q3 Following Consecutive LossesCryptocurrency exchange Huobi, under the guidance of its advisor and Tron Founder Justin Sun, has reported losses over consecutive recent quarters and is now eyeing a break-even point in the current quarter.Photo by Brands&People on UnsplashThree quarters of lossesIn a tweet posted by Sun on Tuesday, the Tron Founder revealed that Huobi hadn’t registered a profit from the third quarter of 2022 through the second quarter of this year. While exact loss figures were not disclosed, Sun attributed these financial challenges to excessive spending on marketing, advertising, and employee salaries. Notably, Huobi has since reined in these expenses, positioning itself for a potential return to profitability by the fourth quarter.Looking at the overall financial performance of Sun’s crypto entities, Huobi and Tron, the group appears to be on an upward trajectory. Sun’s tweet indicated a combined profit of $85 million, derived from $193 million in revenues and $108 million in expenses.Notably, the Q2 profit saw a substantial increase of 183% compared to the $30 million profit in Q1. Sun’s projections suggest that Q3 could see revenue reach $200 million, expenses remain at $100 million, resulting in a projected profit of $100 million for the quarter.Improved financial outlookSun highlighted on Twitter Huobi’s improved financial outlook, projecting a break-even status for Q3 and a modest profit for Q4 based on conservative estimates. Earlier in the year, Huobi implemented a 20% reduction in its workforce as a response to the cryptocurrency market’s bearish trends.Established in 2013, Huobi had maintained consistent profitability until the last few quarters, according to Sun. He clarified that despite reports linking him as the core investor through the M&A fund that acquired a stake in Huobi, he is merely an advisor to the exchange.Exchange business challengesHuobi’s struggles and subsequent efforts to regain financial stability mirror the broader landscape of cryptocurrency exchanges navigating a volatile market. No major exchange has been unaffected by a challenging business and regulatory environment over the past year.US exchange Coinbase is in a legal battle with the Securities and Exchange Commission (SEC) in the United States. A report by Semafor on Wednesday suggests that the US Department of Justice is planning on bringing fraud charges against Binance, who is already fighting an action taken by the SEC. Binance has also been forced out of key four important European markets over the course of the past three months.Meanwhile, it has been claimed that KuCoin has been executing a layoff plan, something the company itself denies. In March, the company faced an action brought by the New York Attorney General on the basis of a failure to register as a securities and commodities broker-dealer.Huobi’s difficulties serve as a testament to the challenges and opportunities presented to all of the major international cryptocurrency exchange businesses.The company’s recent financial trajectory, marked by consecutive losses, has caught the attention of the industry. Justin Sun remains one of crypto’s most controversial figures, but with his guidance, the exchange will be working towards rebounding and returning to profitability in the coming quarters.