Concerns Hanging Over Huobi Result in Significant Net Outflow

Zipmex proposes creditor repayments of 3 cents on the dollarBeleaguered Singaporean crypto exchange Zipmex has unveiled a restructuring proposal aimed at repaying creditors. According to a report published by Bloomberg on Wednesday, the initial offer stands at 3.35 cents for every dollar of the creditors’ claims.Photo by Alexander Grey on UnsplashRestructuring challengesThis restructuring proposal unfolds against the backdrop of a challenging period for Zipmex, triggered by the aftermath of last year’s crypto price downturn. The crypto exchange, which operates in Thailand, Indonesia, Australia and Singapore, is currently undergoing a court-supervised restructuring process based in Singapore.In its efforts to restructure the business, Zipmex is grappling with a debt of $97.1 million. That total debt level is contingent upon the eventual recovery of assets. Bloomberg cited sources familiar with the matter, suggesting that depending on the success of these recovery efforts, the repayment figure could potentially surge to 29.35 cents per dollar.Creditor dissatisfactionHowever, not all major creditors are on board with Zipmex’s proposed plan. Expressing reservations, they are pushing for an independent review to scrutinize recent changes in the company’s assets and liabilities, as outlined in an Oct. 4 court document. This external examination is deemed crucial to ensuring transparency and fairness throughout the restructuring process.In response to these developments, Marcus Lim, the Group Chief Executive Officer of Zipmex, refrained from providing detailed comments due to the confidentiality of the ongoing arrangement. While acknowledging inaccuracies in information sourced from external outlets, he chose not to elaborate on them further.Investor deal failureA previous attempt to sell Zipmex to V Ventures, a subsidiary of Thoresen Thai Agencies, fell through. To add to the struggling company’s woes, it emerged earlier this week that Thailand’s securities regulator, the Securities and Exchange Commission (SEC) recently instructed Zipmex to halt operations in the country due to insufficient net capital.The company had been fined 11 million baht ($315,000) by the SEC earlier this year. The SEC cited the co-mingling of corporate and customer funds as one regulatory breach. Furthermore, the Thai regulator claimed that between May and July 2022, Zipmex “did not have in place a system to effectively prevent conflicts of interest in such matters and the business operation does not have an adequate risk control system.”In response to this recent regulatory directive, Zipmex Limited issued a statement to its customers, expressing its commitment to ensuring proper and compliant business operations in line with the criteria set by the Thai SEC. Consequently, the temporary suspension of digital asset trading and deposit of all types was deemed necessary.The intricacies of Zipmex’s financial restructuring will be closely watched by market observers, especially considering the volatility in the crypto market and the regulatory challenges faced by the company in multiple jurisdictions. The success of the proposed repayment plan, contingent upon asset recovery, remains uncertain, leaving creditors and industry stakeholders on edge.As Zipmex grapples with these multifaceted challenges, its future trajectory hinges on navigating both the demands of the bankruptcy process alongside regulatory requirements.

CPLABS and Protocol Capital to collaborate on blockchain-enhanced autonomous driving in QatarKorean blockchain development firm CPLABS (formerly known as Coinplug) announced on Wednesday (local time) that it has signed a memorandum of understanding (MOU) with Qatar-based company Protocol Capital to collaborate on blockchain-driven ventures in the Middle Eastern country.Protocol Capital is known for partnering with institutional clients and delivering bespoke solutions to investors in sectors such as real estate, energy, construction, and manufacturing.Photo by Lucca Belliboni on UnsplashBlockchain and autonomous drivingThrough this agreement, the two companies aim to execute projects that leverage and champion blockchain technology, with initiatives including an autonomous driving pilot project. They also plan to register with Qatar’s Tasmu Digital Valley, established by the Ministry of Transport and Communications (MoTC) and the Qatar Free Zones Authority (QFZA), as part of their collaborative efforts towards Qatar’s National Vision 2030.CPLABS plans to integrate its blockchain platform and upcoming 2024 Web3 portal into the autonomous driving pilot project. This move will grant the Korean firm an avenue to offer identity verification and payment services, further broadening its footprint in the finance and information communications technology (ICT) sectors.”As a dedicated Web3 tech firm, CPLABS possesses around 320 blockchain patents both domestically and internationally. Its projects encompass areas such as decentralized identifiers (DIDs), decentralized finance (DeFi), security token offerings (STOs), non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs).Commenting on this joint effort, Uhr Joon-sun, CEO of CPLABS, stated that the company aims to deliver Web3 platforms that connect Korea with the global community.

Ripple Receives In-Principle Approval From Singaporean RegulatorRipple, the blockchain-based payments firm, has obtained in-principle regulatory approval from the Monetary Authority of Singapore (MAS) to offer digital asset payments and token products in Singapore.Photo by Dids on PexelsODL service expansionThe approval, announced on Wednesday, will enable Ripple’s subsidiary, Ripple Markets Asia Pacific, to expand its On-Demand Liquidity (ODL) service. ODL facilitates the seamless transfer of the XRP cryptocurrency across borders without the involvement of traditional banking intermediaries.Ripple had applied for an institutional payment license under Singapore’s Payment Service Act to secure the regulatory green light. In response to the approval, Ripple CEO Brad Garlinghouse praised the MAS for its pragmatic and innovation-driven approach to cryptocurrency-related services.He expressed confidence that Singapore would serve as a prominent gateway for Ripple’s business operations in the Asia Pacific (APAC) region. On Twitter, Garlinghouse wrote: “As a major global financial center, Singapore led the way in taking a pragmatic, innovation-first approach to crypto — we’re incredibly proud @Ripple is one of a handful of firms (<20) to receive in-principle approval for a MAS MPI license for digital payment token services!”Stuart Alderoty, Ripple’s Chief Legal Officer, explained that the regulatory approval from MAS would enhance Ripple’s ability to support forward-thinking customers who are exploring the potential of blockchain and crypto technologies to create a more inclusive and borderless financial system.Growing APAC presenceRipple’s presence in Singapore has already been growing significantly. In 2022, the company doubled its number of employees at its Asia Pacific headquarters, with Singapore becoming a major hub for ODL transactions. The MAS, recognizing the potential of fintech firms in the digital money services sector, published its Purpose Bound Money (PBM) white paper on Wednesday, proposing standards for such firms operating in Singapore.While Ripple has made progress with regulatory compliance in Singapore, it has faced legal challenges in other jurisdictions. Since December 2020, Ripple’s legal team has been dealing with a lawsuit filed by the US Securities and Exchange Commission (SEC), accusing Ripple of conducting an unregistered securities offering with its XRP token.The case is expected to reach a verdict in the coming months. While the speculation is that the case has gone well for Ripple, it remains to be seen to what extent it can get the upper hand in taking on a cornerstone institution of the US establishment like the SEC.Either way, Ripple is moving to develop on a global basis. It has recently pursued further development in the Middle East via a Dubai expansion. In Hong Kong, it is collaborating with local regulators in trialing the use of its technology relative to real-world asset tokenization.The company has also established partnerships with central banks in Montenegro and Thailand, as well as numerous regional banks and financial institutions worldwide.The regulatory approval from MAS marks a significant milestone for Ripple, expanding its customer reach and positioning the company for further growth in the digital asset payment sector. Digital asset innovation is truly global and as many organizations are demonstrating, just as Ripple is in this instance, innovative curtailment in one region will simply manifest itself as greater development in another.