Korean Financial Authority Orders Suspension and Levies $1.4M Fine on Crypto Lender Delio

Zero Two Enters Into JV to Develop First Middle East Mining OpZero Two, a digital assets development company based in Abu Dhabi in the United Arab Emirates (UAE), has partnered with leading North American crypto miner Marathon Digital in a joint venture that will result in the development and operation of the Middle East’s first large-scale crypto mining facility.Photo by Manuel Geissinger on PexelsInitial capacity of 250 MWIn a press release issued on Tuesday, Marathon Digital outlined that the venture is focused on accelerating the global digital economy while also supporting Abu Dhabi’s power grid.To progress the project, the two companies have formed the Abu Dhabi Global Markets JV Entity (AGDM Entity). Initially, two digital asset mining facilities, with a combined capacity of 250 MW, will be developed.One site, at Masdar City, Abu Dhabi, will account for 200 MW of that capacity. The remaining 50 MW capacity will be developed at a site located in the port area of Mina Zayed. The strategy of the firms is to exploit excess network energy in Abu Dhabi. The firms see this as a win/win as increasing the base load of the Abu Dhabi power grid will result in a more sustainable grid. The companies intend to supplement any use of non-sustainably produced energy with carbon offset certificates.80/20 equity splitThe two firms have agreed upon an 80%/20% equity split, with Zero Two being the lead investor. In the initial development period for the venture during 2023, both entities will contribute resources to the joint venture in proportion to the equity division, in the form of capital, equipment and infrastructure.Zero Two and Marathon had previously collaborated on a pilot project with the objective of determining the feasibility of building a large-scale facility. Air-cooled miners have not proven to be a success in hot arid climates like that of the Rub Al Khali Middle Eastern desert.The upshot of the pilot program was a determination that a custom-built immersion-cooled system would be feasible. Mining equipment for the facilities is already on order while construction at the two sites is underway. Both sites are expected to go online before the end of the year with a combined hashrate of 7 EH/s.Ahmed Al Hameli commented on the joint venture: “This alliance leverages Zero Two’s regional expertise, expansive relationships, and growing blockchain infrastructure development and operational capabilities, with Marathon’s technical prowess in developing digital asset sites and innovative mining technologies.These synergies create a powerful combination and lay the groundwork for the success of this pioneering project in the Middle East. Marathon shares our commitment to actively supporting Abu Dhabi’s power grid and developing global digital assets infrastructure. We look forward to working with them on this venture.”Jurisdictional arbitrageMarathon’s CEO Fred Thiel said that Zero Two’s regional relationships were an optimal compliment. It may be both a timely and shrewd move by Marathon to develop this project in the Middle East region. In recent weeks the Biden administration floated the idea of a 30% crypto mining tax. Crypto mining is a global endeavor.That type of additional overhead would make it very difficult for North American miners to remain viable. By opening up new working relationships in other regions, the company may be in a better position to pivot should North America and the firm’s Montana-based mining facility become unsustainable.

Dunamu’s Legal Team Recognized by Korean Police for Cyber Security ContributionsDunamu, the blockchain and fintech company behind South Korea’s largest cryptocurrency exchange Upbit, recently announced a noteworthy security achievement. At the 16th Cyber Security Awards organized by the Korean National Police Agency (KNPA), the leader of Dunamu’s Legal Team 3 was recognized with the KNPA Commissioner General’s Certificate of Appreciation. This accolade was in acknowledgment of the legal officer’s pivotal role in fostering collaboration between the private sector and police to combat the rising tide of cryptocurrency-linked crimes.Photo by Franck on UnsplashSupport guides and educational resourcesDunamu stands out as the only Korean virtual asset service provider (VASP) to have an employee distinguished in this manner this year. It’s worth noting that Dunamu’s legal teams have been proactively cooperating with law enforcement, providing them with investigation support guides and educational resources.A representative from Dunamu’s legal teams expressed gratitude to all team members for their collaborative efforts in combating virtual asset-related crimes and appreciated the recognition for their achievement. The official further emphasized Dunamu’s ongoing dedication to maintaining close cooperation with police and investigative bodies, aiming to cultivate a healthy virtual asset ecosystem.Awards since 2008The Cyber Security Awards were established in 2008 to recognize and honor those making significant contributions to cyberspace security. The awards not only motivate cyber police officers but also aim to bolster collaboration between the police and the private sector.This year, 27 distinguished individuals — including police officers, civil servants, and ordinary citizens — were recognized at the ceremony held on October 19 in Songdo Convensia, Incheon. They received commendations and certificates of appreciation for their contributions in areas ranging from cybercrime investigation and prevention to digital forensics.

Shinhan Card to launch NFT-based art-tech service next yearSouth Korean credit card company Shinhan Card is set to launch its art-tech service dubbed “Prestige Collection” next year, according to Park Young-woong of the Digital R&D team during his presentation at the seventh annual Shinhan Future’s Lab Demo Day event held in Seoul on Wednesday.Photo by Yi Liu on UnsplashDigitizing investments in artArt-tech — a portmanteau of art and money management technology — refers to an investment method that involves purchasing or owning artworks as assets and earning profits from their sales.“We are planning to launch our art-tech service next year, which will include exhibition recommendations, NFT ticketing and NFT art warranties to work in tandem with Shinhan Card’s payment services,” Park said. He also mentioned that it is currently undergoing legal evaluations.Making event access more efficientThe inception of this upcoming release started in September, when Shinhan carried out a collaborative proof of concept (PoC) mechanism with two member startups from the ninth installment of its Future’s Lab startup acceleration program, Art Map and SnapTag.Art Map is an art curation service put together by a team of database experts, software developers, artists, curators and designers that gathers metadata based on users’ preferences to recommend exhibitions and other art-related events for them to enjoy. On the other hand, SnapTag offers a variety of services based on its patented invisible watermark technology dubbed LAB Code. LAB Code is able to create an encrypted code by subtly converting image pixels of items like product packages, photos and illustrations and applying those files to printing or production processes without damaging or changing the original image.Last month, Art Map and SnapTag used their respective technologies to work with Shinhan Card to issue and verify blockchain-based NFT tickets for the Sneakers Unboxed special exhibition held at the Sejong Museum of Art. Shinhan was responsible for minting NFTs as tickets for exhibitions promoted on Art Map’s platform, which could be issued and stored on the My NFT section on Shinhan’s mobile app ShinhanpLay. Visitors would then be able to use SnapTag’s digital check-in service Keefo to enter the exhibition.This NFT ticketing system was proven to be a time-efficient and secure alternative to traditional ticketing procedures, which come with several inconveniences like long wait lines, delayed entry, illegal ticket resells and monopolization of customer data by major ticketing conglomerates. This is especially true for music performances by famous artists, where competition during ticket sales can become intense.“Our NFT ticketing service will evolve into an art-tech management service that focuses on art,” Park explained. “Prestige Collection will leverage Art Map’s art concierge platform, SnapTag’s LAB Code technology and Shinhan Card’s My NFT service.”