Concerns Hanging Over Huobi Result in Significant Net Outflow

AIITONE Launches PoC Platform for Security Token Projects in South KoreaAIITONE, an augmented reality firm in South Korea, announced today its launch of a proof-of-concept (PoC) platform aimed at facilitating the security token projects of securities and financial companies.Photo by Shubham’s Web3 on UnsplashTechnological validation for STO projectsAIITONE’s security token offering (STO) PoC platform serves to conceptually validate technological aspects before the implementation of specific projects. This solution validates business concepts by enabling a systematic connection among various entities, including security token issuers, account management institutions (issuance intermediaries), the total supply management institution (the Korea Securities Depository), investors, securities companies, over-the-counter (OTC) brokerages, and financial companies.Through this platform, AIITONE’s clients will have the capability to conduct PoC studies for both primary and secondary markets. Businesses with an interest in security token operations can test in advance the entire lifecycle of an STO. This encompasses activities such as security token assessment, subscription, allocation, issuance, distribution, and eventual burn. Assessing technical requirements prior to embarking on a security token project is expected to not only save time but also mitigate risks.Versatile support for industry playersAccording to an AIITONE official, the firm’s STO PoC platform is highly effective, considering it offers a wide range of support, spanning from security token product planning to networking assistance for platform and infrastructure development. The official also expressed their expectations that the platform’s versatility is poised to attract many securities and financial companies as potential customers.Meanwhile, AIITONE aims to offer a comprehensive STO solution encompassing a range of features, such as STO PoC consulting, industry trend assessment, and risk management capabilities.

Latest Chinese Crypto Crackdown Sees Influencer Accounts Shut DownMicro blogging platform Sina Weibo, one of China’s most popular social media platforms boasting over 258 million daily active users, has taken decisive action to enforce the country’s stringent regulations on cryptocurrency activities.Photo by Henry Chen on Unsplash80 accounts removedIn its latest announcement on Tuesday, the platform revealed the removal of 80 influencer accounts dedicated to promoting cryptocurrency-related content. These accounts collectively held a substantial following, with over 8 million followers combined.The move by Weibo comes as a response to official legislation aimed at cracking down on activities that breach a range of regulations encompassing telecommunications, finance, banking, online marketing, securities, exchanges, and internet safety. The 80 influencer accounts in question had actively violated these regulations by endorsing and promoting cryptocurrencies.Ongoing enforcementThis isn’t the first time Weibo has undertaken such a measure. It has been periodically purging crypto-related accounts since China’s cryptocurrency ban took effect in September 2021. In March of this year, Weibo already took down 131 accounts associated with crypto and stock trading activities.The most significant nationwide crackdown occurred in August 2022 when the Cyberspace Administration of China (CAC) stepped in, resulting in the removal of a staggering 12,000 influencer accounts across both Weibo and Baidu. Furthermore, 51,000 promotional posts related to cryptocurrencies were deleted. The CAC justified these actions by emphasizing their intent to protect the public’s property safety, educate citizens on responsible investment practices, and discourage participation in speculative cryptocurrency trading activities.Weibo echoed similar sentiments in their previous enforcement actions, vowing to increase the crackdown on illegal securities activities on their platform while strictly adhering to legal regulations.Worldwide issueCrypto promotion and crypto influencers are coming under increased scrutiny worldwide. In a recent filing by the Department of Justice (DoJ) in the United States in its criminal prosecution against Sam Bankman-Fried, the Founder and former CEO of failed crypto exchange FTX, it asserted that promotion by way of ads featuring US comedian Larry David and American sports star Tom Brady had blurred the lines between FTXs international and US businesses.Class action lawsuits have been instigated against a long list of crypto influencers and promoters relative to FTX, Celsius, BlockFi, and a number of other high-profile failed crypto platforms.Last month, details emerged of a grizzly end for Argentinian crypto influencer Fernando Perez Algaba, whose dismembered body was found in a suitcase in a town close to the Argentinian capital, Buenos Aires.China’s intensified scrutiny over crypto activities in recent years is driven by multiple factors, including concerns about capital flight, money laundering, and the imperative to safeguard state-controlled cryptocurrency initiatives. These measures have not only affected domestic investors but have also had unintended consequences for international cryptocurrency enthusiasts.

New York Bans CoinEx While Seizing Crypto AssetsCoinEx, a Hong Kong-based cryptocurrency exchange, has been banned from operating in the US state of New York by Attorney General Letitia James. The ban comes after the exchange allegedly failed to register as a securities and commodities brokerage and falsely represented itself as an exchange.Photo by Jan van der Wolf on Pexels$1.7 million seizureThat’s according to a statement published by the Office of the New York State Attorney General on Thursday. As part of an agreement reached between the parties, over $1.7 million worth of CoinEx’s funds have been seized.Under the terms of the agreement, approximately $1.1 million will be returned to 4,691 investors from New York, and an additional $600,000 will be paid in penalties to the state. To prevent access by New York IP addresses, CoinEx must implement geo-blocking. Moreover, the exchange is forbidden from creating new accounts for customers based in the United States.Trade prohibitionThis recent development resolves a lawsuit filed against CoinEx in February by the New York state. The state accused the exchange of misleading investors and failing to register with local authorities. In accordance with the consent order, CoinEx is now prohibited from offering, selling, or purchasing securities and commodities in New York and cannot make its platform available in the state.James emphasized the consequences for crypto companies that disregard New York’s laws and put investors at risk. The agreement serves as a warning that her office will continue to crack down on such companies. CoinEx users have a 90-day period to recover their crypto funds directly from the exchange.After this period, eligible investors can request fiat currency refunds by emailing coinexrefund@ag.ny.gov. Refunds will be provided in cryptocurrency or cash equivalents held in accounts as of April 25.CoinEx faced a lawsuit in the New York Supreme Court on February 22, where Attorney General James alleged that the exchange engaged in fraudulent practices and violated the state’s Martin Act, known for its strict anti-fraud provisions. The complaint included tokens such as Amp, LBRY Credits (LBC), Rally (RLY), and Terra.Harsh stanceThe banning of CoinEx in New York highlights the regulatory scrutiny surrounding cryptocurrency exchanges and the importance of compliance with local laws and regulations. On the one hand, the enforcement actions taken by authorities aim to protect investors and ensure the integrity of the financial system.However, the state of New York has been particularly harsh in its dealings with crypto companies. As today’s statement reveals, the New York Attorney General has taken action previously against crypto exchange Kucoin, crypto lending platform Nexo, and USDT stablecoin issuer Tether.These actions tie in with the current anti-crypto regulatory pushback that prevails in the United States right now. Other state agencies, including the Securities and Exchange Commission (SEC) who last week sued global crypto exchanges Coinbase and Binance, the Federal Reserve, the Department of the Treasury, and the Federal Deposit Insurance Corporation (FDIC), have all conspired to crack down on the industry in the US in recent months.