Taiwan Advances Crypto Regulation with Initial Reading of Digital Asset Bill

SynFutures Completes Series B Funding Round and V3 LaunchSynFutures, the Singapore-based project behind the SynFutures Protocol and decentralized derivatives exchange (DEX) specializing in crypto perpetual futures, has successfully completed its Series B funding round of $22 million.In a big week for the DEX project, SynFutures also launched V3 of the protocol on public testnet, incorporating its updated automated market maker (AMM) model, Oyster AMM.Photo by micheile henderson on UnsplashPotential token launchThe Series B funding round was spearheaded by Pantera Capital, with participation from Singapore’s HashKey Capital, SIG DT Investments (a unit of the Susquehanna International Group), and other investors.Co-founder and CEO of SynFutures, Rachel Lin, stated that while the company is excited about its recent funding success, it is also open to the idea of launching a native token in the future. However, any such decision would be contingent on market conditions and regulatory considerations.Enabling decentralized crypto derivatives tradingThis Series B funding, which was initiated in 2022, marks a significant milestone for SynFutures, coming to a close nearly two and a half years after its Series A round that raised $14 million in June 2021. In total, the company has now secured approximately $38 million in funding to date. In an interview with The Block, Lin declined to indicate the company valuation associated with the recent funding round.SynFutures, established in 2021, serves as a decentralized exchange catering to the trading of crypto perpetual futures, a derivative product that allows traders to speculate on the future price of cryptocurrencies with leverage and without fixed expiration dates. This approach enables traders to rapidly profit or incur losses based on market price movements.While SynFutures operates on various blockchain networks, it currently ranks as the second-largest derivatives protocol on Polygon, with a total value locked (TVL) of over $6 million, according to data from DeFi Llama. The platform has facilitated over $22 billion in cumulative trading volume since its inception.Notably, SynFutures has introduced its latest platform public testnet version, V3, on the Ethereum testnet. The company aims to extend its support for multiple blockchains, including Polygon and zkSync Era, an Ethereum Layer 2 network, when the mainnet version goes live, scheduled for late this year to early next year. Previous iterations of the platform, such as SynFutures V2 and SynFutures V1, have been deployed on Ethereum, Polygon, Arbitrum, and BNB Chain.V3 FeaturesOne of the standout features of SynFutures’ V3 platform is its proprietary AMM model called Oyster. Lin clarified that Oyster AMM combines concentrated liquidity AMM (offering up to 26,666x boost) with the traditional order book model (providing unlimited liquidity boost).With Oyster AMM, SynFutures aims to compete directly with centralized exchanges. The project’s Chief Marketing Officer (CMO) Mark Lee maintains that the offering provides advantages over other decentralized platforms also. “While several projects, including dYdX, opt for a hybrid approach — integrating off-chain orders with on-chain settlements — the full on-chain methodology stands out for its inherent transparency and trustworthiness,” Lee told Blockworks.SynFutures currently maintains a team of approximately 20 individuals. With the latest funding infusion, the company plans to expand its workforce, particularly in engineering and business development roles, to further its mission of advancing decentralized derivatives trading.

SEC seeks summary judgment against Terraform LabsThe U.S. Securities and Exchange Commission (SEC) is making a strong push for a summary judgment in its ongoing legal battle against Singapore’s Terraform Labs and its co-founder Do Kwon. Such an outcome would spare the need for a protracted trial.According to a motion filed by the SEC on Thursday, the record shows that there is “no genuine dispute as to any material fact and that the moving party is entitled to judgment as a matter of law.”Photo by Caleb Fisher on UnsplashRelying on the Howey TestThe SEC’s filing underscores its central argument that Kwon and Terraform Labs were involved in the sale of securities. The document categorically states:“There is no dispute that purchasers made an investment of money, either through fiat currency or crypto assets, for each crypto asset — LUNA, wLUNA, MIR, and UST, thereby satisfying the first prong of Howey.” The Howey Test refers back to a U.S. Supreme Court case — SEC v. Howey — which took place in 1946. The case set a precedent and has subsequently become the cornerstone of determining what is or is not a security in the United States.This argument hinges on the idea that funds were pooled in a common enterprise with the expectation of profits primarily derived from the efforts of the promoters.Citing fraud as well as unregistered securitiesThe SEC’s assertion is two-fold, contending that not only did Terraform and Kwon engage in selling securities, but they also engaged in fraudulent activities and disseminated misleading information. The SEC reiterates these claims in its filing, emphasizing that the defendants committed fraud by duping investors about the stability of UST.They allegedly falsely attributed the algorithm for price stabilization while orchestrating clandestine third-party interventions. This purported deception made their claims regarding the algorithm’s effectiveness deceptive and involved the omission of crucial information. The fallout from Terra’s collapse in May of the previous year resulted in the destruction of substantial investor wealth, totaling billions of dollars.Similar defense team filingThe SEC’s move to seek summary judgment comes in the wake of a similar filing by Kwon’s defense team last Friday. Kwon is currently serving a sentence for document forgery in Montenegro, a situation stemming from his arrest at an airport with forged passports.Notably, Terraform’s co-founder, Daniel Shin, who is currently on trial in South Korea, has attributed the collapse of Terraform Labs to Kwon’s mismanagement. Shin has claimed his separation from the company and its activities occurred two years before its eventual collapse.In this legal battle that holds significant implications for the cryptocurrency and blockchain space, the SEC continues to emphasize its position, asserting that Kwon and Terraform Labs engaged in the sale of securities through deceptive means. The outcome of this case could have far-reaching consequences, setting precedents for future regulatory actions in the industry.

Hong Kong Exchanges and Clearing Limited (HKEX), the operator of the Hong Kong stock exchange, has announced plans to launch a digital asset price index. The index which the company is marketing as the HKEX Virtual Asset Index Series, will aim to provide for the developing asset class, while complimenting Hong Kong’s overarching efforts to transform itself into a regional digital assets hub. The company announced details of the new product offering in a press release published to its website on Oct. 28. HKEX indicated that the product will go live on Nov. 15, outlining that the product “provides investors with transparent and reliable benchmarks for Bitcoin and Ether pricing in the Asian time zone.”Photo by Kanchanara on UnsplashReference index for Bitcoin (BTC) and Ether (ETH)The firm claims that the Index Series will include a Reference Index for Bitcoin (BTC) and Ether (ETH) while providing a Reference Rate for the two leading digital assets. The Reference Index will be formulated using a 24-hour volume-weighted reference spot price, with that pricing coming from leading virtual asset exchanges. The Reference Rate has been devised with the settlement of financial products in mind. As a result, it will be calculated on a daily basis at 16:00 Hong Kong time. From a compliance perspective, the product complies with the European Union’s (EU) Benchmark Regulation (BMR), being the first such product to be developed in Hong Kong. Additionally, the Index Series will be administered by CCData, a UK-headquartered data and index solutions firm formerly known as CryptoCompare.  Taking to the X social media platform, CCData outlined that the product is underpinned by its data selection process, leveraging its “Exchange Benchmark methodology to provide highly robust real-time and EOD  [end-of-day] reference rates.” The firm added that the offering will introduce “essential benchmarks for the Asian market,” while enhancing transparency and reliability within the digital assets sector, broadening opportunities for market participants across the region. Enabling informed investment decisionsHKEX CEO Bonnie Chan said that the company was pleased to introduce the HKEX Virtual Asset Index Series to meet the region's growing demand for this fast-emerging asset class. “By offering transparent and reliable real-time benchmarks, we seek to enable investors to make informed investment decisions,” she added.Like many other financial services firms in TradFi, HKEX has been getting itself acquainted with the blockchain and digital assets sector. In October of last year, the firm launched a blockchain-based settlement platform called Synapse. The platform relies upon DAML-based smart contracts. Earlier this year, a number of asset management firms launched spot Bitcoin and Ethereum exchange-traded funds (ETFs) on the exchange. In April, a report published by HKEX suggested that the true potential of crypto ETFs had yet to be fully realized, pointing out that a number of regulatory tweaks would be necessary to better support digital asset-based products. HKEX itself could have a greater role to play in the expansion of the digital assets sector in Hong Kong. Last month Hong Kong Legislative Council member Lee Wai-hung called on the platform to expand its range of derivatives, including crypto derivatives.