OK Group Retires ‘Okcoin’ Brand

SEC Opposes Motion to Dismiss Terraform Labs LawsuitLawyers representing the United States Securities and Exchange Commission (SEC) have responded to a motion to dismiss the lawsuit filed by Dentons, the lawyers representing Singapore-based Terraform Labs and its Founder Do Kwon.Photo by Miguel Á. Padriñán on PexelsCourt filingAccording to its arguments, set out in a court filing lodged to the District Court of the Southern District of New York on Thursday, the SEC’s counsel claims that the additional documents provided by Dentons lack sufficient grounds for dismissing the case.It claims that the internal SEC emails presented by Dentons are irrelevant to the current lawsuit. The SEC asserts that the parameters of an “investment contract” are clearly defined by the Howey test and argue that TerraUSD ($UST) should be classified as a security.The reliance by US regulators on the Howey test, a legal test case that implicated citrus grove contracts that date back to 1946, has proven to be controversial. Naturally, there could have been no consideration of the digital innovation that digital assets present today almost eighty years ago. Notwithstanding that, the SEC maintains that the principle factors of what constitutes an investment contract are covered by the case regardless.During the court hearing held on June 15, Dentons submitted supplementary documents to strengthen their motion to dismiss the lawsuit. The primary focus of the hearing was to determine whether the digital assets developed by Terraform Labs should be categorized as securities based on the criteria of an “investment contract.”Dentons maintains that the algorithmic stablecoin, $UST, should not be considered a security and emphasizes its practical purpose rather than its classification as an investment contract. To support their motion, Dentons included additional documents such as the US House Financial Services Committee hearing on digital asset regulation and stablecoin issuance, the SEC’s request for a restraining order against Binance.US, and the Hinman emails from the SEC vs. Ripple lawsuit.Judge to decideThe defense lawyers highlighted what they perceive as a “regulatory gap” in classifying crypto assets as securities, particularly as the US Congress engages in discussions about regulatory frameworks for digital assets and stablecoin issuance. Furthermore, they argued that the SEC is exceeding the scope of securities laws and relying on internal emails related to “investment contracts” to determine the security status.A decision on the motion to dismiss will be arrived at by July 14. Judge Jed Rakoff, who is presiding over the case, will be responsible for that, once he’s weighed up the merits of the arguments presented by both parties.It is noteworthy that Dentons has previously represented Kwon in challenging the US SEC’s subpoena during the investigation of the Mirror Protocol in 2021, as well as in a class-action lawsuit in the Singapore High Court in 2022. The law firm also provides representation to Terraform Labs in other legal matters.In a separate development, the Basic Court in Podgorica, Montenegro, has granted bail for Kwon and former Terra Chief Technology Officer Han Chang-joon. However, Kwon has recently been taken into custody for extradition in Montenegro while the court deliberates on South Korea’s extradition request for the Terra founder.As the legal proceedings continue, the outcome of the motion to dismiss will have significant implications for the ongoing dispute between Terraform Labs, Do Kwon, and the SEC.

ADDX Expands to Tap into MENA’s Thriving Private MarketSingapore-based global private market exchange ADDX has revealed plans to extend its blockchain-enabled private market exchange platform into the Gulf Cooperation Council (GCC) and the broader Middle East and North Africa (MENA) regions.In a recent announcement, the company stated that the move aims to bridge the existing financing gap between private enterprises and capital providers, positioning ADDX strategically relative to global financial transformation.Photo by Kyle Glenn on UnsplashExploiting MENA potentialThe MENA region has seen a surge in demand for strategic growth capital, particularly from micro, small, and medium-sized enterprises (MSMEs) and innovative startups. These enterprises are expected to play a pivotal role in driving sustainable economic growth across the region. By introducing its platform, ADDX aims to provide these enterprises with a seamless pathway to access early-stage, high-growth private investment opportunities, blending cutting-edge technology with rigorous compliance standards.ADDX’s primary objective is to catalyze the growth of innovative enterprises that are key to the region’s sustainable economic diversification by facilitating the inflow of capital. This initiative aligns with the region’s focus on cutting-edge sectors such as artificial intelligence, Web3, and sustainable construction practices.Since its establishment in 2017, the platform has secured $140 million in funding from institutions such as the Singapore Exchange and Korea’s KB Financial Group. With its expansion into the MENA market, ADDX aims to act as a conduit for strategic growth capital, enabling pre-IPO companies in the region to access local and global financial resources.Simultaneously, this expansion is expected to open up numerous investment opportunities in thriving Asian enterprises for fund managers based in MENA, further strengthening the economic ties between the Asia-Pacific (APAC) and MENA regions.Danny Toe, CEO of ADDX, shared his vision for the company, saying: “The ability to safely and securely open private markets to capital investment presents tremendous opportunities for governments and regulatory bodies to add to the financial infrastructure of the regions.”Blockchain relevanceManuel Jaeger, ADDX’s Head of Business Development at the firm, expanded on the transformative potential of this move, emphasizing the role of blockchain in revolutionizing private market investing. Jaeger stated:“The rise of blockchain-powered platforms has changed the game and transformed how investors view private market investing. Our next step is to replicate in MENA the approach we have taken in APAC. This involves working closely with financial institutions, regulators and government organizations as well as leaders across the Middle East region to create an open flow of capital across private markets for the long-term benefit of investors, private companies and the global economy.``Tokenization of real-world assets and investment products is expected to be a growing trend over the next few years. That development has not been lost on ADDX. In May, the company collaborated with Singapore’s oldest bank, OCBC Bank, to launch a tokenized equity-linked structured note.The firm has cottoned on to the relevance of crypto in the investing arena, becoming the first financial institution in Singapore in 2022 to recognize crypto assets in reckoning if clients achieve the minimum personal wealth levels to be onboarded as accredited investors.

Polymesh’s APAC Digital Asset Regulation Report Highlights ChallengesThe project team behind Polymesh, an institutional-grade permissioned blockchain built specifically for regulated assets, released a report on digital asset regulation within the Asia Pacific (APAC) region on Tuesday, highlighting several challenges that regulators are attempting to overcome.In a press release, the company outlined that the report covers recent regulatory developments in South Korea, Singapore, Hong Kong, and the broader APAC region.Photo by Jéan Béller on UnsplashProgressive regulatory effortsRegulators within the APAC region are currently striving to introduce legislation for digital assets, while several centers within the region are vying to establish themselves as hubs for digital asset-related business.The report explores the individual efforts of regulators in various APAC nations as they work towards crafting regulatory frameworks tailored to their jurisdictions. Those efforts encompass implementation, investigation, and enforcement of legislation in a borderless industry.Regulators in South Korea, Singapore, and Hong Kong have all embarked on formulating rules for emerging asset categories, albeit using different terminologies such as “digital assets,” “digital payment tokens,” and “virtual assets.” Their focus lies in striking a balance between consumer protection, market integrity, and industry development.Additionally, all three regulators adhere to the principle of “same activity, same regulations, same risks” when it comes to tokenized securities. They argue that regulatory requirements do not significantly differ solely because a security is in tokenized form. Each state has been actively engaged in local and global activities surrounding security tokens, including state involvement in the advancement of security token technology and cross-border transactions.Main findingsThe report’s main findings emphasize that while regulators in the APAC region are making strides in introducing digital asset legislation, the road ahead will not be without challenges.Legislating a cross-border industry poses difficulties that necessitate harmonization to foster a robust and interconnected ecosystem. Digital assets originating in Asia can be traded globally and vice versa. Merely identifying the asset’s place of origin is no longer sufficient.Although the report delves into the efforts of individual regulators, it emphasizes the need for long-term collaboration to establish a unified vision and practical implementation of regulations for this borderless phenomenon.Regulatory challengesThe regulatory challenges faced by South Korea, Singapore, and Hong Kong in driving the growth of digital assets in the APAC region are multifaceted. They include the intricacies of legislating an inherently cross-border industry. In turn, that can lead to the potential violation of legislation from other jurisdictions.The lack of harmonization among different jurisdictions, and variations in regulatory approaches among the three regulators are likely to be problematic. Furthermore, there are push-pull dynamics between the industry and regulators, with even the regulators themselves not always in agreement.However, despite these challenges, all three regulators have initiated the formulation of rules for new asset categories, with a strong emphasis on safeguarding consumer interests, maintaining market integrity, and fostering industry development.