KuCoin Report Points to Marked Increase in Crypto Investors in Turkey

Lack of Funds Sees Multichain Cease OperationsThe development team behind Multichain, a cross-chain protocol, has recently announced its decision to cease operations due to a lack of operational funds.This announcement follows a report by blockchain analytics firm Chainalysis, which suggested that insiders may have orchestrated a “rug pull” by withdrawing funds. The Multichain team took to Twitter on Friday to inform their community about the suspension of their business activities, citing a lack of alternative sources of information and operational funds as the primary reasons for their decision.One crucial factor contributing to the shutdown is the absence of communication with the CEO, Zhaojun, who had been missing and is now understood to be in the custody of Chinese authorities. The team explained that they had reached out to Zhaojun’s family and discovered that the police had seized his computers, phones, wallets, and mnemonic phrases.Photo by Christian Lue on UnsplashOperational controlThroughout the project’s lifespan, Zhaojun had maintained control over operational and investor funds. Consequently, the team, along with all their funds and access to servers, found themselves at Zhaojun’s mercy, as he now remains under police custody.Attempting to salvage the situation, Zhaojun’s sister initiated an asset preservation act and transferred some funds to addresses under her control. However, the team soon received news that Zhaojun’s sister, too, had been detained by the police and was now unreachable. Faced with these unfortunate circumstances, the team reluctantly announced the cessation of their operations.DeFi centralization risksThe debacle has raised concerns about the lack of decentralization demonstrated by the level of control Zhaojun had over the project. It prompted comment from Chris Blec, a DeFi Researcher & Analyst who has been highly critical of a whole host of DeFi projects on the basis that while many DeFi projects claim to be decentralized, they’re critically flawed and are centralized to a point that puts them at critical risk.Taking to Twitter, Blec stated: “Dude gets thrown in jail, admin keys to Multichain are on his computers, sister eventually uses his computer to steal money, now she’s in jail too. THIS IS WHY WE DECENTRALIZE.”The Multichain debacle traces back to May when the suspension of Multichain routes for an upgrade caused delays in fund transfers. The uncertainties surrounding the protocol prompted crypto exchange Binance to halt deposit and withdrawal support for certain Multichain bridged tokens.Adding to the platform’s woes, significant outflows from the Multichain MPC bridge platform raised concerns of an exploit. Observers analyzing the blockchain data reached a consensus on July 6 that the protocol had been hacked, as over $100 million worth of assets were withdrawn from the Fantom bridge on the Ethereum side.As Multichain now faces the unfortunate reality of halting its operations, it serves as a stark reminder of the challenges and risks inherent in the blockchain industry. The lack of operational funds, combined with the absence of communication with key figures and critical points of centralized failure have proven insurmountable for this cross-chain protocol.

Hong Kong Regulator Explores Tokenization to Transform Bond MarketThe Hong Kong Monetary Authority (HKMA), the local regulator within the Chinese autonomous territory, unveiled the outcomes of its Project Evergreen study on Friday. Within the report, it indicated an interest in harnessing tokenization in order to improve aspects of the bond market.Photo by Jimmy Chan on PexelsBond market impact assessmentIn this comprehensive report, the regulator delved into the intricate world of bond tokenization, offering an in-depth assessment of its potential impact on the market. The 24-page report covers a range of insights, spanning use cases and benefits to the challenges encountered during the study. The overarching sentiment emerging from the study paints tokenization as a compelling avenue for enhancing the bond market’s functionality.Eddie Yue, the Chief Executive of HKMA, emphasized that the study underscored the latent potential of integrating distributed ledger technology (DLT) into real capital market transactions, all within the framework of Hong Kong’s existing legal structure. In addition, the research revealed the prospect of DLT elevating efficiency, transparency, and liquidity within bond markets.Highlighting efficienciesThe report highlighted that the digital nature of tokenized bonds has the power to render paper certificates obsolete, ushering in an era of streamlined processes and diminished errors. Moreover, the study emphasized the capacity for various stakeholders to seamlessly interact via a shared DLT platform, fostering an environment of collaboration. Real-time data synchronization would ensure heightened transparency, a crucial factor in modern financial markets.Furthermore, the report identifies that a standout feature of tokenization lies in atomic delivery versus payment (DvP) settlements for bond transfers. This innovation serves to significantly expedite the settlement process while bolstering the case for end-to-end DLT adoption.That said, the report acknowledges the nascent state of bond tokenization. Yue emphasized that a plethora of challenges must be overcome before mass adoption becomes viable. The HKMA official underscored the necessity for regulatory frameworks to evolve alongside technology adoption.These insights arrive at a time when Hong Kong is carving its niche as a haven for crypto and decentralized finance endeavors. A multitude of enterprises are believed to be queuing up for a coveted Hong Kong crypto license, underscoring the city’s rising stature in the digital finance sphere.July saw Hong Kong’s announcement of a partnership with Saudi Arabia, focusing on tokenization and payments. Additionally, the HKMA is actively exploring the establishment of a regulatory framework for the digital Hong Kong dollar and stablecoins, heralding a commitment to the distributed ledger technology (DLT) application. An imminent seminar with industry stakeholders is planned, aimed at introducing DLT technology and fostering its adoption.Arthur Chan, HKMA Assistant Chief Executive, anticipates wider DLT integration, envisioning reduced settlement times for bond issuances and instantaneous settlement through tokenized cash and smart contracts. He acknowledges the evolving nature of DLT platforms, acknowledging the need for further research and development. However, Chan envisions a future where tokenization extends beyond bonds, potentially encompassing securities, real estate, and mortgage products.

Ripple, the blockchain company behind the XRP token, announced in a May 19 press release that it has added two new customers in the United Arab Emirates (UAE)—Zand Bank and Mamo. Both institutions will use Ripple Payments, the company’s blockchain-based platform for cross-border transactions. Photo by Dmytro Demidko on UnsplashExpanding under Dubai license obtained in MarchThis partnership comes after Ripple’s obtainment of a license from the Dubai Financial Services Authority (DFSA) in March to offer regulated crypto payments and services in the Dubai International Finance Centre (DIFC). Ripple Payments facilitates end-to-end payment management for its customers. The platform enables funds to be transferred globally around the clock, with payments settled within minutes. Ripple’s latest move follows growing demand for blockchain-powered payment solutions in the Middle East. Ripple’s 2025 New Value Report shows 64% of Middle East and Africa (MEA) finance leaders see faster payments as the main reason to adopt blockchain for cross-border transactions. “Our new partnerships with Zand Bank and Mamo are testament to the momentum that the license has created for our business,” said Reece Merrick, Managing Director for the Middle East and Africa at Ripple. Zand Bank, the UAE’s first fully licensed all-digital bank, will leverage Ripple’s technology to enhance its payment solutions. “Our collaboration with Ripple highlights our commitment to empowering global payment solutions through blockchain technology. Moreover, we are excited to soon launch an AED-backed stablecoin,” said Chirag Sampat, Head of Treasury and Markets at Zand Bank. Meanwhile, Mamo, a company that helps businesses consolidate payment collection, corporate cards and expense management, sees the partnership as an opportunity to support the UAE’s growth. “The UAE is on an incredible growth path, with over a million businesses expected to call it home by 2030. At Mamo, we're proud to be at the forefront of this journey making global payments simpler and more accessible for everyone,” said Imad Gharazeddine, CEO and co-founder of Mamo. Ripple faces legal setback in U.S.While Ripple continues to expand its business globally, it is facing ongoing legal challenges in the U.S. On May 15, U.S. District Judge Analisa Torres rejected a joint request by Ripple and the U.S. Securities and Exchange Commission (SEC) to approve a proposed $50 million settlement. The settlement would have reduced Ripple's fine from $125 million to $50 million, effectively concluding a four-year legal dispute. The case began in December 2020, when the SEC accused Ripple of raising $1.3 billion through unregistered XRP sales. In July 2023, Judge Torres ruled that Ripple’s institutional XRP sales violated securities laws, while sales on exchanges to retail investors did not. Despite the SEC easing its crypto enforcement activities under the Trump administration, Judge Torres rejected the proposed settlement, calling it “procedurally improper.” Ripple’s bid to acquire USDC issuerIn a related development, Ripple made an offer to acquire Circle, the issuer of the USDC stablecoin. Circle, which is preparing for an initial public offering (IPO), is also exploring a potential sale and has reportedly engaged in informal discussions with both Coinbase and Ripple, seeking a valuation of $5 billion. However, Ripple’s offer was reportedly turned down. Meanwhile, XRP is trading at $2.39, up 2.57% over the past 24 hours, according to CoinMarketCap data at the time of publication.