Korean Financial Authorities to Provide Support for Security Token Market

Bybit Suspends UK Services Due to New Marketing RegulationsDubai-based crypto exchange Bybit has taken the proactive decision to suspend services in the UK market ahead of the impending implementation of new cryptocurrency marketing regulations by the Financial Conduct Authority (FCA).Photo by Nick Fewings on UnsplashNew marketing rulesThe FCA is set to enforce these rules starting next month, marking a significant shift in the regulatory landscape for crypto businesses operating in the United Kingdom. In an official announcement published on its website on Friday, Bybit stated: “In light of the UK Financial Conduct Authority’s introduction of new rules regarding marketing and communications by crypto businesses as outlined in the June 2023 Policy Statement (PS23/6) entitled ‘Financial Promotion Rules for Crypto assets,’ Bybit has made a choice to embrace the regulation proactively and pause our services in this market.”Efforts to remainLast week, there had been speculation that the crypto exchange platform would be exiting the UK market. However, Bybit responded on September 14, stating that it intended to maintain its presence in the UK over the long term.Clearly these new rules are proving to be an insurmountable challenge for the exchange platform, given its more recent decision to pause its services. The new rules aim to introduce a cooling-off period for first-time investors, with the ultimate goal of enhancing the transparency and accuracy of crypto product marketing.Their implementation has drawn criticism from within the industry. On Thursday, Nic Carter, Co-Founder of blockchain data aggregator Coinmetrics.io and Partner at Web3-focused venture capital firm Castle Island Ventures, shared his thoughts on the new regulations via X (formerly Twitter): “I have a hard time taking the UK seriously as a domicile for crypto companies based on their completely ludicrous advertising law — clown country.”Withdrawal timelineBybit has outlined a timeline for its withdrawal from the UK market. Starting from October 1, the exchange will no longer accept new user account applications from UK residents.Subsequently, on October 8, coinciding with the enforcement of the new regulations, existing UK users will no longer be able to “make any new deposits, create new contracts, or increase any of their existing positions for all products and services.” However, users will retain the ability to reduce or close their positions and withdraw their funds from the platform.Bybit has set a final deadline of January 8, 2024, for UK customers to manage and wind down their remaining positions. Any positions left open after this date will be automatically liquidated, with the resulting funds made available for withdrawal.While the duration of Bybit’s suspension in the UK remains uncertain, the exchange has expressed its commitment to aligning with UK regulatory requirements in the future. Bybit stated: “The suspension will allow the company to focus its efforts and resources on being able to best meet the regulations outlined by the UK authorities in the future.”Bybit is not the only crypto exchange affected by the UK’s regulatory changes. Other major platforms, including OKX and Binance, are reassessing their strategies in response to the FCA’s stringent guidelines. The new rules have broad implications, with even having a website accessible to UK customers potentially being considered a promotional activity.

DeFiance Capital Secures Interim Victory in Dispute With 3ACSingapore’s DeFiance Capital, a Web3 and crypto investment firm, has notched up a small triumph in its ongoing $140 million legal clash with failed Singaporean crypto hedge fund, Three Arrows Capital (3AC).Photo by Sasun Bughdaryan on UnsplashFavorable rulingAccording to a statement provided via a Medium blog post by DeFiance Capital Founder and CEO Arthur Cheong on Tuesday, the High Court of Singapore has delivered a favorable ruling for the firm, endorsing its preference for jurisdiction in Singapore, rather than the British Virgin Islands, which had been advocated by 3AC.The tussle between 3AC and DeFiance Capital centers around the ownership of certain assets. The liquidators appointed by the British Virgin Islands Court, from Teneo, assert that these assets essentially belong to 3AC’s creditors. However, DeFiance Capital argues vehemently that these assets must be partitioned and returned to its stakeholders.Struggle over assets and jurisdictionAt the heart of the matter are assets totaling $115 million, encompassing digital currencies and non-fungible tokens (NFTs), which currently remain under the control of DeFiance Capital. Additionally, there are 69 SAFE (simple agreement for future equity)/SAFT (simple agreement for future tokens) agreements linked to 3AC. Although Teneo places the collective worth of these assets at roughly $141 million, DeFiance Capital’s estimation is more conservative, pegging it at around $120 million.Beyond asset ownership, jurisdiction has become a pivotal point of contention in the legal discourse. DeFiance Capital has steadfastly advocated for legal proceedings to take place in Singapore, where it operates, as opposed to the British Virgin Islands. The recent ruling from the High Court of Singapore lends support to this stance, challenging Teneo’s argument.DeFiance articulated its position, asserting: “Our position was that all the important witnesses and documents are in Singapore and the dispute ought to be heard by the Singapore Courts to ensure all relevant evidence would be available.”With the court’s decision aligning with DeFiance’s jurisdictional preference, the firm hopes that this development will pave the way for more substantive engagement between the parties, rather than being embroiled in procedural wrangling. The firm believes that this will allow the focus to shift towards addressing the core issues at hand.Business riftThe genesis of this legal saga dates back to 2020 when DeFiance was established as part of the 3AC group, operating autonomously under the stewardship of its founder, Arthur Cheong. The rift escalated in February 2022, when Cheong declined 3AC’s proposal to relocate to Dubai, eventually leading to the formation of two Singapore-based firms in May of that year.Furthermore, in the same month, DeFiance extended a loan of $35 million worth of USDC to 3AC, effectively becoming a creditor. Complications arose when 3AC’s founders transferred legal rights related to DeFiance Capital, a transaction that remained incomplete as 3AC filed for bankruptcy.In light of the ongoing dispute, 3AC asserted that DeFiance’s assets should be harnessed to settle its debts. However, DeFiance firmly stood its ground, upholding its ownership claims over the assets.With liquidators advocating for resolution in the British Virgin Islands — a move that DeFiance rejected due to its Singaporean management ties with 3AC — the stage was set for the legal clash that has now taken a notable turn with this recent court ruling.

Upbit Launches “Experimental Lab” for Users to View Investment PerformanceDunamu, the fintech company operating South Korea’s leading crypto exchange Upbit, announced on Wednesday that Upbit has added a new feature called the Experimental Lab, which allows users to try out new functions before their official release.“Through the Experimental Lab, we will progressively introduce various features and actively gather user feedback to enhance our service experience,” the exchange said.Photo by Gilles Lambert on UnsplashEmpowering insightful investmentThe first feature unveiled through the Experimental Lab allows users to view the statistics of their investment performance — in other words, their profits and losses — for any given timeframe, all in one place. This includes cumulative return rates, the average amount of money they invested, and more. This is one of the most frequently requested updates, according to the exchange.The feature also provides information on three types of returns: simple return rate, time-weighted return rate, and money-weighted return rate.Simple return rate calculates the actual gains and losses relative to a user’s initial investment amount. Time-weighted return rate calculates an account’s performance over a specific period while ignoring the effects of external cash flows, such as timing and size. On the other hand, money-weighted return rate calculates investment performance while factoring in changes in external cash flows.Users interested in trying out Experimental Lab can find it in the “More” tab on the Upbit mobile app or the “My” tab on the PC site located at the bottom right corner of the page.Customer-centered philosophyThis move aligns with Upbit’s commitment to providing a better service experience by incorporating user feedback into their feature development and updating processes.