UAE’s Royal Office Visits Korea to Further Security Token Collaboration with AIITONE

NEOPIN Partners with Lena Network for NFT-Fi Service DevelopmentNEOPIN, the global CeDeFi platform of South Korean investment holding company Neowiz Holdings, announced on Tuesday that it is teaming up with Lena Network, a Japanese developer of non-fungible token finance (NFT-Fi) services.Photo by Choong Deng Xiang on UnsplashFostering NFT-Fi and DeFi synergyIn this collaboration, the companies plan to promote NFT-Fi usage by onboarding NEOPIN onto Lena’s service framework and by launching NEOPIN as a decentralized finance (DeFi) product based on Lena’s governance token $LENA. They will also strengthen cooperative ventures by channeling NEOPIN and Lena Network’s NFT-Fi products. Both companies’ worldwide partners will also receive collective support as part of this agreement.“This partnership is meaningful in many ways. We have been able to secure an important Web3 partner in Japan, expand our global DeFi products, and grow our NFT-Fi business,” explained Ethan Kim, CEO of NEOPIN.This comes as part of NEOPIN’s bigger efforts to broaden its global user demographic by launching DeFi products associated with global projects, the first of which is the latest collaboration with Lena. This move will create a strong base for the entry of NEOPIN’s Web3 projects into the Japanese market.“We will continue to strengthen our partnerships with outstanding Japanese Web3 projects such as Lena Network, and establish a foundation for our success in the Japanese market,” CEO Kim added.Innovation at Lena NetworkLena Network is operated by professionals who formerly worked at institutions like SBI Holdings and JP Morgan. It plans to officially launch its new service, LENA, in the third quarter of this year, which offers loans in Ethereum or stablecoins against collaterals such as NFTs, tokens, and real-world assets (RWA).Key partners for this service include NFT collections such as Monkey Kingdom — the first Asian NFT collection and one of Solana’s chart-toppers — and Trekki, a collaborative travel-themed collection made by Polygon and Trip.com.“By onboarding NEOPIN, we aim to provide a seamless NFT-Fi adoption and launch DeFi products based on LENA tokens,” said Casper Cheng, CSO of Lena Network. “Following NFT-Fi, Lena Network’s next product will be RWA-Fi. Together with NEOPIN, we will continue to drive innovation in the Web3 space and explore new possibilities for NFT utilization.”The current NFT market capitalization is approximately $4.9 billion as of today, according to insights from the NFT analysis site NFTGo. While these assets have historically been liquidated through trading, NFT-Fi opens up various methods of liquidation, thereby expanding access to ownership of these assets.

OKX is set to compensate users after its native exchange token, OKB, experienced a rapid 48% flash crash on Tuesday. OKB price fluctuationThe crash occurred within a brief three-minute window, triggered by a series of liquidations resulting from an abnormal price fluctuation. During the event, OKB's diluted market capitalization plummeted by $6.5 billion. At around 9 a.m. GMT on Tuesday, the price of OKB dropped from $46.80 to $25.10, representing a 48% decrease within 15 minutes. However, the token has since recovered, currently trading at $47.63 at the time of writing. The crash led to the triggering of liquidations for large leverage positions, causing a cascading effect on pledged loans, leverage transactions and cross-currency transactions.Photo by Nicholas Cappello on UnsplashCompensation planOKX responded promptly, pledging to fully compensate users for any additional losses incurred due to abnormal liquidation. The exchange aims to launch a specific compensation plan within the next three days, taking into account users who engaged in on-chain trades. In a statement on Tuesday, the platform suggested that it is committed to enhancing "margin position tier rules, risk management controls and liquidation mechanism" to prevent similar issues in the future. The flash crash coincided with a day of notable price swings across cryptocurrency markets, partly driven by the Grayscale Bitcoin Trust's (GBTC) sale of bitcoin to meet investor redemption demands on its exchange-traded fund (ETF). Additionally, the bankrupt crypto exchange FTX has been selling nearly $1 billion worth of GBTC ETF shares recently, further contributing to market volatility. Focusing on complianceOKX has been actively focusing on regulatory compliance in recent times. On Dec. 29, the exchange announced the delisting of several privacy coins, including Monero (XMR), Zcash (ZEC), Dash (DASH) and Horizen (ZEN). Subsequently, on Jan. 2, the platform introduced additional requirements for United Kingdom users to comply with the new Financial Conduct Authority (FCA) regulations, including the mandatory completion of risk assessment questionnaires before engaging in trading activities. Flash crashes are a common occurrence in cryptocurrency markets, often attributed to thin liquidity distributed across multiple venues. The 2% market depth for OKB indicates that a sell order exceeding $224,000 could potentially trigger another price cascade. Notwithstanding that, oftentimes it can be difficult to pinpoint the precise reason for a flash crash. In 2021 global crypto exchange Kraken experienced a flash crash that saw token prices drop by in excess of 50% over the course of one hour before recovery was achieved. While some suggested it was caused by a technical glitch, Kraken founder Jesse Powell dismissed that notion, pointing instead to the possibility of a large-scale sell-off by a service user. Despite this recent challenge, OKB remains a significant player in the cryptocurrency space, boasting a market cap of $2.8 billion, making it the fourth-largest exchange token in circulation, according to CoinGecko. 

OKX Middle East Fintech FZE, the Dubai-based subsidiary of cryptocurrency exchange OKX, announced on Tuesday that the company has successfully obtained a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA), signaling its entry into the Middle East market.Photo by David Rodrigo on UnsplashNon-operational licenseThis newly acquired license positions OKX Middle East to offer spot services and spot pairs to institutional and qualified retail customers in the region. However, it should be noted that the operational aspect of the license is pending. The company stated that it will remain non-operational until all remaining conditions and select localization requirements are fully satisfied, a process anticipated to conclude in the coming weeks. Once operational, OKX Middle East will have the green light to provide regulated VASP services, facilitate AED deposits and withdrawals and introduce spot trading pairs. The move, outlined in a blog post published by the company, comes months after the subsidiary received a preparatory license from VARA, underlining its commitment to complying with regulatory standards and expanding in the Middle East. Rifad Mahasneh, the general manager for the MENA Region at OKX, expressed optimism about the region's potential, stating: "The MENA region holds immense potential to become a hub of excellence for Web3 and virtual assets. We eagerly anticipate the chance to further enhance the already flourishing ecosystem throughout the region." Global hubThis strategic move aligns with the United Arab Emirates' (UAE) goal to establish itself as a global hub for the cryptocurrency industry. VARA, formed in March 2022, was tasked with regulating the emerging virtual asset sector in Dubai. The regulatory framework gained momentum when Sheikh Mohammed bin Rashid Al Maktoum, Dubai's prime minister and ruler, approved a new virtual assets law in March 2022, providing a legal foundation for the crypto industry in the city. Dubai's proactive stance towards regulating the cryptocurrency industry has attracted several major players, including Crypto.com, Ripple, Binance and Bybit, all securing crypto licenses from Dubai's regulator. OKX Middle East joins the likes of TOKO FZE and Trek Labs Ltd FZE in obtaining a license for exchange services. Tim Byun, the Global Head of Government Relations at OKX, emphasized the significance of this license in the company's journey towards a trustless system. "This license was a crucial step for OKX as we move from a trust-based system to one that is trustless and empowers users to take control of their financial future," he stated. Byun expressed excitement about contributing to the development of Dubai's crypto and Web3 ecosystem, highlighting the importance of the market. It's noteworthy that OKX, already regulated in the Bahamas, currently restricts customers from the United States due to regulatory issues. The expansion into the Middle East represents a strategic move for OKX to tap into the growing crypto market in the region and aligns with the broader trend of cryptocurrency exchanges expanding their global footprint.