KDIC Seizes Crypto from Debtors Linked to Losses at Financial Firms

Singaporean regulator, the Monetary Authority of Singapore (MAS), has awarded cryptocurrency exchange Bitstamp a Major Payment Institution (MPI) trading license.Photo by Julien de Salaberry on UnsplashExpanding into APACIn a blog post published on July 3, Bitstamp proclaimed that it is “globally trusted & now licensed in Singapore.” The company described the acquisition of the license as a milestone that “marks the start of [its] expansion into the APAC region.” It emerged in June 2024 that Bitstamp had been acquired by American trading platform Robinhood. The $200 million acquisition was finally completed last month. Bitstamp signaled last September that it planned to expand its institutional business across Australia and Asia. Earlier this year, parent company Robinhood outlined that it would use Bitstamp to crypto offerings in Singapore in 2025.Acquiring licensesAt that time, Johann Kerbrat, vice-president and general manager of Robinhood Crypto, said that “part of the reason why Bitstamp was attractive was because of their licenses with Singapore, in addition to its institutional business.” This latest license award strengthens the company’s efforts in gaining more traction in Asia. Licensing is all the more relevant given the recent actions of the Singaporean regulator. Last month, MAS set a June 30 deadline for unlicensed crypto firms operating out of the city-state and serving overseas customers to cease offering such services. Over recent years, Singapore has been striving towards establishing itself as a global hub for crypto startups. It has been successful in that endeavor insofar as a whole host of international crypto businesses have established a presence there.  However, its recent move to curb unlicensed firms working out of Singapore in providing services internationally has been interpreted as a much more cautious approach being taken by the Singaporean authorities. The regulator clarified its concerns recently:”MAS has set the bar high for licensing and will generally not issue a licence. The money laundering risks are higher in such business models and if their substantive regulated activity is outside of Singapore, MAS is unable to effectively supervise such persons. Without a licence, such DTSPs [Digital Token Service Providers] will have to cease their regulated activities.”Caution in Singapore to benefit Hong KongSingapore has been competing with cities like Hong Kong to develop and maintain that crypto hub status. Some commentators have expressed the view that Hong Kong will benefit from this latest move in Singapore.  Joshua Chu, a lawyer who co-chairs the Hong Kong Web3 Association, told the South China Morning Post (SCMP) recently that “this is likely to attract quality projects [to Hong Kong] looking for a compliant, liquid, and globally connected base.” In addition to licensing achieved in Asia, Bitstamp has acquired licensing in a number of European countries such as Italy, Spain, France and the Netherlands. Last month, Robinhood launched the trading of tokenized stocks and exchange-traded funds (ETFs) for users resident within the European Union (EU). It also revealed that it is in the process of building out a layer-2 network on top of the Arbitrum blockchain with a view towards using it to host tokenized real-world assets (RWAs).

Laos Halts Crypto Miners’ Electricity Amid Drought and DebtsLaos, a leading producer and exporter of hydroelectricity, has made the decision to suspend electricity supply to cryptocurrency mining operations within its borders.Photo by Ioana Farcas on UnsplashTackling a perfect stormThe decision comes as a result of a perfect storm of challenges, including a struggle to meet escalating power demands due to drought conditions, impending commitments to export electricity to Thailand, and the mounting debts of cryptocurrency mining companies.In a calculated move in 2021, Laos initiated a public-private pilot program aimed at delving into cryptocurrency mining and trading. The context for this move was China’s sweeping crackdown on mining activities, compelling miners to scout for alternative jurisdictions for their operations.In response, Laos granted authorization to a handful of entities, spanning construction conglomerates and a bank, to partake in the mining and trading of Bitcoin, Ethereum, and Litecoin. This led to a commitment to regulatory collaboration between government ministries, the Bank of Laos, and Electricité du Laos (EDL).Exploiting hydropowerLaos’ abundant and affordable electricity has placed it on the short list of locations for crypto miners to settle in. With an abundance of rivers and waterfalls, hydropower stands as one of the nation’s primary energy sources, offering a renewable source of cost-effective electricity.However, events in 2023 have disrupted that narrative. A persistent drought has hit the country during the first half of the year, which triggered an unprecedented surge in the demand for electricity from sources other than hydro.The dependence on hydropower, constituting 95% of the nation’s energy generation, struggled to keep pace with the demand. As a direct consequence, EDL, a state-owned electricity distributor, announced the cessation of electricity supply to crypto mining operations.The problem has compounded as Laos finds itself committed to exporting substantial quantities of electricity to the Electricity Generating Authority of Thailand (EGET), serving as a lifeline for Thailand’s power grid during the forthcoming dry season. This external commitment has, in turn, further strained the local capacity for electricity supply.Another Asian country, Bhutan, has also gotten involved with crypto mining in an effort to exploit its hydropower resources, where 99% of electricity supply comes from hydropower within the kingdom.Unpaid billsAnother dimension to the saga is the growing debt crisis faced by cryptocurrency mining operations. A representative of EDL cited the inability of these mining businesses to settle their accumulating electricity bills as a key factor in the decision for suspension. The Bank of Laos has further escalated matters by deciding to halt loans to cryptocurrency companies in January.Laos has had bold objectives to transform itself into Southeast Asia’s premier exporter of clean electricity. The nation’s topography, featuring mountainous terrain covering 70% of the country, has immense potential for hydropower, with over 26,000 megawatts of installed capacity and ambitious plans to double this figure.Hydroelectric dams like Nam Theun 2 have become conduits for substantial volumes of low-cost electricity, primarily directed towards neighboring Thailand and Vietnam. Meanwhile, projects like the Luang Prabang dam, boasting an installed capacity of 1,460 megawatts, underscore the country’s ambitions to develop hydropower further.Revenues from power exports have become a vital component in Laos’ gross domestic product (GDP), contributing almost 15%, as per a report from October 2022.

P2E Game Covenant Child Developer Partners with Pala for Global NFT CollaborationCityLabs, a South Korean smart city integration platform company, made an announcement today regarding its subsidiary, Metablock, which has entered into a memorandum of understanding (MOU) with Pala, the nation’s largest non-fungible token (NFT) trading platform.Photo by Andrey Metelev on UnsplashGlobal expansionAccording to a report by Newsis, the collaboration between the two companies aims to explore various cooperative efforts in the global development and expansion of NFT projects related to games. To accomplish this, they will utilize the intellectual properties (IPs) of Covenant Child, a global play-to-earn (P2E) game developed by MetaBlock.NFT marketplaceThe initial step of this partnership involves the establishment of an NFT trading platform. MetaBlock recently concluded the final closed beta test for Covenant Child on a global scale. In the upcoming months, the company plans to launch a dedicated NFT marketplace for Covenant Child sometime during the open beta test period. Additionally, MetaBlock will conduct pre-sales of NFTs and list the governance token on cryptocurrency exchanges.Cho Young-joong, CEO of CityLabs, expressed enthusiasm for the partnership, noting that it will provide users with a more convenient and reliable NFT trading environment. Cho further emphasized the company’s commitment to creating an infrastructure that allows users to readily enjoy content developed on MetaBlock.