BitKeep Changes Name to Bitget Wallet Following Acquisition

Tether, the issuer of the USDT stablecoin, has teamed up with local partners in the United Arab Emirates (UAE) in order to launch a dirham (AED)-backed stablecoin. In a statement published to the firm’s website on Aug. 21, Tether outlined that the stablecoin is being launched in partnership with Dubai-based technology conglomerate Phoenix Group and Green Acorn Investments, a company that describes itself as “a socially responsible investment firm dedicated to supporting critical sectors and supporting the generation of sustainable wealth and financial literacy.”Photo by DrawKit Illustrations on UnsplashFully backed by AED reservesThe stablecoin issuer outlined that each token will be “fully backed by liquid UAE-based reserves.” Tether further maintained that the back-end management of the new token will adhere to the firm’s “transparent and robust reserve standards,” and that “every Dirham-pegged token is tied to the value of the AED, providing stability and confidence in its value.”  Tether dominates the stablecoin market where USDT accounts for $117 billion, against a backdrop of an overall stablecoin market valued at $169 billion.  Perennial skepticsThe company has perennially faced criticism for a lack of transparency relative to the backing of its USDT stablecoin, given its policy of providing attestation reports instead of fully comprehensive audits from a top-tier auditing firm. One of the firm’s critics, the pseudonymous X account @OccamiCrypto took to the social media platform to provide its reaction to this most recent development, stating: "This Tether UAE stablecoin 'launch' will likely be as real as Tether’s promised audit and real time reserve reporting." The Tether critic went on to claim that the announcement is nothing more than "Tether spin," and that Tether has never attempted to become regulated in any market and that nothing would come of it. Another Tether critic, freelance journalist Jacob Silverman, commented on the development on X, stating:”Russian businessmen in UAE must be rejoicing.” His comment is suggestive of a common assertion that Tether is being used to facilitate the circumvention of sanctions. According to the firm’s press release, it believes that the product will enable users locally to access the benefits of the AED in digital form. The company claims that it will “streamline international trade and remittances, reduce transaction fees, and provide a hedge against currency fluctuations, thus playing a crucial role in the financial ecosystem of the UAE and beyond.” Tether’s partner Phoenix Group has been active in the crypto-sphere in recent times through mining. In December of last year, the company sealed a $380 million deal with Chinese mining equipment manufacturer MicroBT. Earlier that month, the company went public on the Abu Dhabi Securities Exchange (ADX). On face value, this development appears positive. However, UAE-based crypto and blockchain lawyer Irina Heaver recently warned that tightening regulations within the UAE may shut down crypto payments within the country. Heaver specifically cited the use of USDT as being under threat, with the potential for stablecoin-based transactions to be prohibited as new rules are ushered in.  

Hivemind Capital Partners expands into Hong Kong marketHivemind Capital Partners, a prominent player in the world of Web3 and digital asset investment, has officially unveiled its plans for expanding its operations to Hong Kong.Photo by Chromatograph on UnsplashNew Head of Asia appointmentIn a press release published by the New York-headquartered firm on Tuesday, Hivemind outlined that alongside this significant Asian expansion, the company has appointed Stanley Huo as Head of Asia. Huo is a seasoned investment banker with over 15 years of experience at prestigious institutions like China Renaissance, UBS, Citi and BAML across Asia and Europe.Huo expressed his excitement, stating: “I’m thrilled to be joining Hivemind at such a transformative period. The intersection of traditional finance and burgeoning digital asset technologies in Hong Kong presents unmatched opportunities and I’m looking forward to leading our initiatives in this vibrant ecosystem.”Identifying an opportunityHivemind Capital Partners had nothing but praise for Hong Kong as a significant crypto hub. The company highlighted the distinct advantages that come with operating in the city-state, including a well-established ecosystem that facilitates access to traditional financial infrastructure, capital-raising opportunities and the exploration of blockchain-related innovations.Huo told The Block: “It was very interesting to see that the Hong Kong government welcomes all the Web3 capital and talents… They want to build up a Web3 center.”Matt Zhang, Founder and Managing Partner of Hivemind, is equally enthusiastic about the Hong Kong expansion, stating:“Our expansion into Hong Kong not only represents our firm’s growth, but our commitment to being at the center of financial innovation and technology. With Stanley leading our business in Asia, we are positioned to significantly contribute to, and influence, the evolving narrative of blockchain technology and digital assets in the region.”Zhang is a speaker at Hong Kong Fintech Week later this week, where he will participate in a panel discussion titled “The Future of Stablecoins: Exploring Virtual Asset Payment Infrastructure and the Rise of Non-USD Stablecoin Frameworks.” He founded Hivemind in November 2021, with a view towards deploying capital within verticals such as crypto infrastructure, virtual worlds, programmable money and blockchain protocols.Hivemind has been on a significant growth trajectory, as evidenced by its recent launch of a $1.5 billion investment vehicle, with available funds still waiting to be deployed. Additionally, the company introduced the Liquid Opportunity Fund, a $300 million crypto fund, earlier in the year, securing $60 million for the fund in June.Following a regional trendThe company’s move to Hong Kong aligns with the broader trend of cryptocurrency firms recognizing the region’s potential and considering it for their expansion plans. Notably, Zodia Custody, a digital asset custodian backed by Standard Chartered, recently announced its launch in Hong Kong.While Hong Kong has actively positioned itself as a hub for Web3 companies, boasting recent developments like the introduction of retail trading for licensed crypto exchanges in August, it has also faced challenges. The city recently witnessed the largest Ponzi scheme in its history, involving the embezzlement of approximately $166 million from JPEX crypto exchange users. The investigation into this incident is still ongoing.

KuCoin resolves lawsuit through settlement and New York market exitKuCoin, one of the largest global cryptocurrency exchanges, has arrived at a comprehensive settlement with the authorities in the state of New York in the United States, agreeing to pay $22 million.Photo by Michael Discenza on UnsplashSubstantial fine and refundsThe settlement not only involves a substantial fine but also includes refunds to New York investors and the cessation of trading activities in the state. This resolution comes amidst an assertive effort by New York authorities to shape and regulate the crypto landscape within the state.According to a statement released by New York Attorney General Letitia James on Tuesday, KuCoin will refund a total of $16.7 million to 177,800 New York investors. In addition to the refunds, KuCoin will pay a $5.3 million fine to the state.The settlement addresses allegations that KuCoin failed to register as a securities and commodities broker-dealer while falsely presenting itself as a cryptocurrency exchange.Taking to social media platform X, James wrote:”My office is making crypto platform @kucoincom pay over $22 million for illegally operating in New York. KuCoin is also banned from doing business in our state. Shady cryptocurrency platforms must play by the same set of rules as everyone else or face the consequences.”At the time of taking action against KuCoin in March, James described the lawsuit as “our eighth action to rein in shadowy cryptocurrency platforms that disregard our laws and put New Yorkers at risk.”Lack of registrationKuCoin, based in the Seychelles, allows investors to trade digital assets through its website and app. However, the state of New York argued that KuCoin could not legitimately claim to be an exchange due to its lack of registration with the U.S. Securities and Exchange Commission (SEC) and the proper designation by the Commodity Futures Trading Commission (CFTC), as mandated by state law.Ranked as the fourth-largest exchange by spot and derivatives trading volume, KuCoin’s KCS token, a profit-sharing token on the platform, has experienced a 39% increase since the start of the week. At the time of writing, it has a unit price of $13.80. This surge is a consequence of the clarity and finality brought about by the settlement, alongside rising expectations for a U.S. exchange-traded fund (ETF) directly investing in Bitcoin, sparking a broader rally in lesser-known cryptocurrencies over the past month.Potential rumorsKuCoin CEO Johnny Lyu took to the X platform on Tuesday to outline details of the settlement. Interestingly, Lyu included this notification:”I also want to give you a heads-up about potential rumors surfacing in the next few weeks. Please stick to the official website of KuCoin for accurate information.”While the settlement may have brought a certain degree of clarity to the KuCoin platform, Lyu’s comment suggests that there may be other issues about to emerge in the short term.The lawsuit against KuCoin is part of a broader regulatory trend in New York, with Attorney General James having previously filed a similar complaint against CoinEx. Additionally, a settlement in January involving crypto companies Nexo Inc. and Nexo Capital Inc. resulted in a financial resolution of up to $24 million for New York and nine other states.