North Gyeongsang Province Recruits Youth for Metaverse Content Competition

Tether Critics Point to Previous Chinese Securities BackingUSDT stablecoin issuer Tether (USDT) has long faced persistent scrutiny and criticism due to the lack of transparency surrounding the assets backing their digital currencies. The latest allegations come in the form of a report by Bloomberg on Friday suggesting that the world’s largest stablecoin was once backed by securities issued by Chinese companies.Photo by Manuel Joseph on PexelsNYAG releases documentsThese findings were based on documents made public by the New York Attorney General (NY AG). The documents disclosed that Tether had listed securities issued by China’s state-owned Industrial and Commercial Bank of China, China Construction Bank, and Agricultural Bank of China as part of its reserves backing the USDT stablecoin.Rumors about USDT’s exposure to Chinese securities have circulated for a number of years. In 2021, a Bloomberg research report revealed that Tether’s reserves reportedly included billions of dollars in short-term loans to China-based companies, as well as a significant loan to the collapsed crypto lender Celsius Network.However, in February 2021, Tether reached a settlement with the NY AG’s office over accusations of providing misleading information about its reserves and losses. To address these concerns, Tether handed over documents such as letters, bank accounts, reserve holdings, and wallet addresses through the law firm Steptoe.Attestation reportTether’s latest attestation report for Q1 2023, released on May 10, offered further details about its reserves. According to the report, Tether’s reserves were valued at $81.8 billion at the end of the quarter, a significant increase from the earlier period of $14.8 billion. These reserves consisted of $53 billion in US Treasuries, $1.5 billion in Bitcoin, and $5.3 billion in loans described as “over-collateralized.”The disclosure of Tether’s previous backing by Chinese securities adds another layer of complexity to the stablecoin landscape, raising questions about the risk exposure and potential impact on the stability of these digital assets. Using Chinese commercial paper to back a US dollar stablecoin is a risky endeavor.It raises the same issues as we’ve seen with the plethora of crypto lenders that went bankrupt in 2022. In those cases, they were using customer money to speculate and turn a profit. That’s fine when it works but when it goes wrong, it is customers who suffer. In its defense, Tether has stated that it only held A1 rated banking sector Chinese commercial paper in 2022 in state-owned Chinese companies like Industrial & Commercial Bank of China Ltd., China Construction Bank Corp., and Agricultural Bank of China Ltd. It reduced this exposure to zero later that year.With the cryptocurrency community and regulators seeking greater transparency and accountability, the industry is likely to face increased scrutiny and calls for enhanced regulations to ensure the integrity of stablecoin operations moving forward.As regulators continue to assess and navigate the evolving crypto market, it remains to be seen how the industry will address these concerns and establish clearer guidelines for stablecoin issuers to ensure the trust and confidence of market participants.

Blockchain-based digital payment network enterprise Ripple has announced that it has acquired in-principle approval of a financial services license from the Dubai Financial Services Authority (DFSA) in the United Arab Emirates (UAE). In a press release published on the firm’s website on Oct. 1, Ripple claimed that the approval “unlocks Ripple’s end-to-end payment services in the UAE, boosting Middle East operations.” The in-principle approval is a first step on the company’s path towards full approval. That eventuality will enable Ripple to offer cross-border payment services relative to fiat and digital assets, within the Dubai International Financial Center (DIFC) special economic zone.Photo by Moose Photos on PexelsExpanding Middle Eastern presenceThe company claims that pursuing the license is part of a broader strategy to expand its Middle Eastern presence. It follows on from the firm’s move in 2020 to establish its Middle Eastern headquarters in Dubai. Ripple claims that the licensing “significantly strengthens Ripple’s global footprint as a regulated entity and enables the introduction of seamless cross-border payment services, including Ripple Payments Direct (RPD), in the United Arab Emirates (UAE).” In moving from in-principle approval to full approval, Ripple will have further obligations to accomplish, such as securing office space within the DIFC special economic zone. The company had previously indicated its intention of establishing an office within the DIFC. Back in August, it emerged that Ripple had partnered with the DIFC Innovation Hub with a view towards promoting blockchain and digital asset innovation within the UAE. Regulatory clarity in the UAERipple is striving to become the first blockchain-enabled payment services provider licensed by the DFSA. Once licensed, the company plans to roll out its enterprise-grade digital asset infrastructure. Ripple’s XRP has been one of five digital assets approved by the DFSA such that investment funds are allowed to invest in it, although the regulator did indicate in June that it is moving towards expanding the list of recognized tokens. Mired in legal difficulties with local regulator the Securities and Exchange Commission (SEC) in its home market of the United States in recent years, the company signaled a change of strategy in 2023, indicating its interest in focusing more on international expansion. While speaking at an event in Dubai at the time, Ripple CEO Brad Garlinghouse said that Ripple was expanding in Dubai. Taking to X in relation to this latest milestone, Garlinghouse wrote that “regulatory clarity is what businesses want, and what consumers need,” adding that “the UAE understands that.” In the company’s press release, Garlinghouse referred to the “forward-thinking regulatory approach” being pursued in the UAE, which he believes is positioning the country “as a global leader in this new era of financial technology.” The UAE isn’t the only focus for the company’s international expansion. Ripple has established an office in Singapore which handles over 50% of the firm’s payment flows. On Oct. 1, U.S. investment bank Houlihan Lokey published a report in which it highlighted Ripple as an emerging competitor to the SWIFT cross-border payments system.  Although the company has had some success in navigating its way through litigation with the SEC in the U.S., it’s thought that the dispute may be prolonged further as some commentators have suggested that the SEC plans to appeal a recent court decision. 

NEOPIN and Finschia Foundation to jointly launch Finschia’s first decentralized exchangeCentralized decentralized finance (CeDeFi) protocol NEOPIN and blockchain developer Finschia Foundation have teamed up to launch Finschia Network Swap (FNSwap) — the first automated market maker (AMM) decentralized exchange on Finschia’s public blockchain — in the first quarter of next year, according to an announcement on Finschia’s official website last Friday (KST).Photo by Chris Liverani on UnsplashRevolutionizing DeFiNEOPIN has taken over the development of FNSwap, which will employ a pricing algorithm as an AMM decentralized exchange to set the prices of assets, thus increasing liquidity in liquidity pools. The platform will support crypto deposits, including those made in FNSA and NPT — Finschia and NEOPIN’s respective governance tokens — along with other stablecoins. The list of supported cryptocurrencies will be expanded later on as the mainnet grows, Finschia said.“As Finschia’s first decentralized exchange, Finschia Network Swap is expected to make it more convenient for many users to use crypto services,” said Kim Yong-gi, CEO of NEOPIN. “We plan to actively expand the number of cryptocurrencies supported on the platform in line with the expansion of the Finschia ecosystem.”Ecosystem expansionFNSwap will also be centered around its community of users, providing lucrative DeFi products and incentives like token swapping, staking and rewards, thus establishing a secure and convenient blockchain ecosystem.The two firms committed to exploring other endeavors as well, such as discovering promising Web3 projects through events like hackathons; facilitating interaction between their respective partner firms; and conducting joint promotional campaigns to expand the Finschia ecosystem.“We are pleased to work with NEOPIN to launch the first decentralized exchange of the Finschia ecosystem,” said Ko Young-soo, Chairman of the Finschia Foundation. “We will consistently provide the technical support that NEOPIN needs to successfully launch the Finschia Network Swap.”