Web3 Security Startup Blockaid Raises $33M in Funding

QCP Trading, the trading arm of Singaporean crypto market maker and broker dealer QCP Group, has taken a significant step towards full licensing in Singapore, having been awarded in-principle approval (IPA) for a Major Payment Institution (MPI) license by local regulator, the Monetary Authority of Singapore (MAS). Regulated spot tradingIn a press release published by PR Newswire on behalf of QCP Trading Pte. Ltd. on Nov. 11, the company outlined further details on the receipt of the preliminary license. The company confirmed that the IPA represents an “essential step towards full licensing,” enabling it to prepare to offer regulated spot trading service facilities relative to digital payment tokens. QCP Trading is geared towards facilitating a broad range of crypto spot trading, including the trading of stablecoins and major digital asset tokens. The company offers on/off ramps into and out of cryptocurrency positions via multiple fiat currencies. Photo by Guo Xin Goh on UnsplashOperational expansionDarius Sit, founder of QCP Trading, commented on the development, stating that as the firm continues its pursuit of a full trading license, the focus remains on supporting Singapore’s reputation as a leader in digital asset regulation. Sit added that the company is proud of its “ability to remain agile and responsive to both global and local market conditions,” suggesting that this approach is the key to success in the rapidly evolving crypto sector. QCP Trading intends to continue to build a local team in Singapore and with that it is hiring in order to enable operational expansion. Melvin Deng, the company’s CEO, said that the firm is aiming “to champion robust governance frameworks,” and that its “early recognition of the critical role of regulation has proven to be a strategic foresight." Global expansionThe QCP Group appears to be pursuing a global expansion strategy as back in May, group company QCP Capital received IPA for regulated digital asset trading activities from the Financial Services Regulatory Authority (FSRA), the regulator within the Abu Dhabi Global Markets economic zone in the United Arab Emirates (UAE). In doing so, it became the first Singapore-headquartered crypto broker and market maker to receive preliminary approval within the Middle East region. At that point, QCP had 70 employees, with plans to relocate some of them to Abu Dhabi. In the lead-up to that IPA licensing award in Abu Dhabi, QCP had partnered with Further Ventures as part of its efforts in expanding into the Middle Eastern market. On Nov. 11, QCP Capital put out a warning via its Telegram channel, informing market participants that given the rise in the unit price of Bitcoin in recent days, it is necessary to be mindful of the risk of pullbacks, which will be required in order to account for the use of leverage within the market. In recent weeks, Fly Wing Technologies, a subsidiary of cryptocurrency service provider Matrixport, and the Singaporean subsidiary of American crypto exchange Gemini have received IPA approval with respect to MPI licensing in Singapore. At the beginning of September, crypto exchange OKX received full MPI approval. 

In an effort to safeguard crypto investors from falling prey to misleading advertisements, the Securities and Exchange Commission (SEC) of Thailand has intensified its scrutiny of promotional campaigns within the crypto sphere. Photo by Dave Kim on UnsplashBroker agent eventsOn April 29, the Bangkok Post reported that the SEC has raised concerns regarding the potential violation of local regulations through introducing broker agent (IBA) events. These events, the SEC clarified, may breach regulations as IBAs are only permitted to promote digital token services to deter speculation on cryptocurrencies, categorized as high-risk assets. IBAs, acting as local conduits for partner digital asset exchanges, typically earn commissions by onboarding clients within a specific market. Such practices are common for exchanges or brokers that don't directly operate in certain markets. Deputy Secretary-General Anek Yooyuen conveyed the commission's unease over crypto exchanges offering preferential treatment to onboard users. Yooyuen stated: "When operators organise sales promotions by offering rewards to entice people to use the service, this could encourage use of the service without considering the investment risks. This is especially the case for cryptocurrencies.” Warning of consequencesHe cautioned that failure to adhere to these guidelines would result in “punishment according to the law.” While cryptocurrency exchanges are legal in Thailand, they must secure local approval. Notably, last month, Thailand even greenlit asset management firms to launch private funds, offering Bitcoin exchange-traded funds (ETFs) exclusively to institutional and ultra-high-net-worth investors. Nonetheless, the country recently prohibited the sale of cryptocurrency lending products and mandated that exchanges prominently display risk warning messages. International regulatory trendThis move by the Thai SEC mirrors actions taken by regulators in other major crypto markets. For instance, the United Kingdom's Financial Conduct Authority (FCA) issued 450 alerts for illegal crypto ads in 2023 alone. Similarly, Spain’s principal securities market regulator, the National Stock Market Commission, denounced fraudulent crypto asset promotions in November 2023, emphasizing companies’ obligations to adhere to local laws. Thai advertising guidelines mandate businesses and advertisers to substantiate the “facts” presented in their campaigns, failing which could lead to legal repercussions. A recent incident provides a case in point. Hackers hijacked advertisements on Etherscan, redirecting users to phishing sites aimed at draining crypto wallets. Scam Sniffer, a blockchain investigation firm, attributed the widespread phishing campaign to the inadequate oversight by advertisement aggregators. The company made the following statement on the matter: “Etherscan aggregates ads from platforms like Coinzilla and Persona, where insufficient filtering could lead to exposure to phishing attempts.” The wallet drainer scam involves enticing users to counterfeit websites and coercing them to link their crypto wallets, enabling scammers to siphon funds into their own wallets without user authentication or consent. This is not the first time that the authorities in Thailand have homed in on crypto-related advertising. In August 2023, the Southeast Asian country’s Ministry of Digital Economy and Society (MDES) outlined that it had engaged with social media firm Meta, owner of Facebook, informing it that its response to the proliferation of fraudulent platform ads relative to crypto had been inadequate. 

Animoca Brands, a Hong Kong-based Web3 company focused on blockchain gaming and NFTs, has signed a memorandum of understanding (MOU) with DayDayCook (DDC) Enterprise Limited in a deal that will see Animoca allocate up to $100 million in Bitcoin with that capital to be exposed to yield enhancement strategies operated by DDC.Photo by Erika Fletcher on UnsplashBitcoin treasury strategyIn a press release published to its website, Animoca Brands claimed that the deal accelerates the Bitcoin accumulation strategy pursued by DDC. Back in May, DDC Enterprise, a Chinese company listed on the Nasdaq in the U.S. while headquartered in Hong Kong, became one of many Nasdaq-listed companies recently to add Bitcoin to its balance sheet.  At that time, it made a symbolic initial 21 BTC purchase, bearing in mind the leading digital asset has a supply cap of 21 million BTC. The company has set out an ambitious plan to build up a Bitcoin treasury of 5,000 BTC over the course of three years. DDC Founder Norma Chu described the development as a “pivotal moment.” ‘Pristine monetary asset’On this occasion, Chu described the partnership with Animoca as a “transformative step,” reflecting the companies’ “shared vision to accelerate Bitcoin’s role as a pristine monetary asset.” As part of the partnership, Animoca Brands Co-Founder and Executive Chairman, Yat Siu, will join DDC’s Bitcoin Visionary Council (BVC). The company established the BVC recently in order to put strategic leadership and guidance in place so that DDC’s Bitcoin-related treasury operations are conducted in accordance with industry standards so as to maximize value creation in the long term. Siu said that the arrangement enables Animoca Brands “to enhance the value of [its] blockchain technologies and maximize the value of [its] Bitcoin holdings.” Commenting further on the partnership, he added: “We will focus on developing strategies to enhance Bitcoin’s value proposition, leveraging DDC’s commitment to advancing corporate Bitcoin treasury solutions." Siu told Cointelegraph that Animoca Brands' belief in the abilities of the DDC founder played a large part in the company establishing the partnership. He said that her background and experience enable her to “bridge the East and West to successfully navigate markets on both sides of the planet,” adding that “she has good appeal and connections to the Chinese market, one of the largest for crypto adoption, while also running a NASDAQ-listed company.” On BitcoinTreasuries.net, a Bitcoin treasury data hub, DDC is listed as 47th in terms of corporations globally that have adopted a Bitcoin treasury strategy, ranked by the amount of Bitcoin that they have accumulated. The website suggests that DDC currently holds 368 BTC, valued at approximately $43.2 million. Following its initial purchase of 21 BTC in May, the company followed up with the acquisition of 38 BTC in June. On July 1, it announced that it had raised $528 million to expand its Bitcoin holdings, with confirmation of a further purchase of 230 BTC by July 7.