NEOPLY Receives Support from Abu Dhabi for Blockchain Expansion in UAE

HKMA Issues Warning Against Crypto Firm MisrepresentationThe Hong Kong Monetary Authority (HKMA), the central bank for the Chinese autonomous territory, has taken a stand against cryptocurrency businesses that falsely present themselves as “banks” and market their products as “deposits,” issuing a public advisory to raise awareness about the issue.Photo by Marcel Eberle on UnsplashBanking ordinance violationsIn a press release published to its website on Friday, the HKMA said that instances had arisen where crypto firms had labeled themselves as “crypto banks,” “crypto asset banks,” and “digital trading banks.” The regulatory authority underscored that such misrepresentations could be in violation of the Banking Ordinance in Hong Kong.In addition to adopting misleading bank-related titles, these crypto firms have been advertising “savings plans” as “low risk” with “high return,” potentially misleading the public into believing that these entities are authorized banks in Hong Kong, where they can securely deposit their funds.The HKMA stressed that only entities such as licensed banks, restricted license banks, and deposit-taking companies, collectively referred to as “authorized institutions” and holding a license granted by the HKMA, are legally permitted to engage in banking or deposit-taking activities in Hong Kong.Furthermore, funds held on crypto exchanges are not covered by Hong Kong’s Deposit Protection Scheme. “Under the Banking Ordinance, only licensed banks, restricted license banks and deposit-taking companies, which have been granted a license by the HKMA can carry out banking or deposit-taking business in Hong Kong,” the HKMA stated.Misuse of banking termsAny entity using the term “bank” in its business name or implying that it offers banking services in Hong Kong is committing an offense, according to the central bank. The same rule applies to any entity engaging in deposit-taking activities in Hong Kong or soliciting the public to make deposits.It’s important to note that crypto firms not officially recognized as banks in Hong Kong are not subject to the oversight of the HKMA.The HKMA advised the public to exercise caution. In cases of uncertainty regarding an entity claiming to be a bank or soliciting deposits in Hong Kong, individuals are encouraged to consult the register of authorized institutions on the HKMA’s website, and if doubts persist, it suggests that they should contact the authority via its Public Enquiry Service hotline.According to section 97 of the Banking Ordinance, only a bank or a central bank can use the term “bank” or its derivatives in its business name in Hong Kong without the written consent of the HKMA.Additionally, sections 11 and 12 of the Banking Ordinance stipulate that only entities possessing a valid banking license or recognized as authorized institutions are permitted to engage in banking or deposit-taking activities in Hong Kong. As per section 92 of the Banking Ordinance, only an authorized institution is authorized to issue advertisements inviting the public to make deposits, with certain exceptions.The HKMA’s advisory serves as a stern reminder to the crypto industry that regulatory compliance and transparency are essential, particularly when using terms associated with traditional banking, to protect the interests of the public.

China’s Bitmain Makes Plans to Unveil World’s First 1XJ/T Bitcoin MinerBitmain, the leading player in the cryptocurrency mining equipment business, is set to host the upcoming 2023 Global Digital Mining Summit (WDMS 2023) in Hong Kong, using the event as a springboard to launch its latest Bitcoin miner.The Beijing-headquartered mining equipment manufacturer set out its summit and equipment launch plans on Chinese social media platform WeChat on Monday.Photo by Dmitry Demidko on UnsplashIntroducing the ANTMINER S21With the theme “Empower the Bull Market, Mine with Timing,” the summit will aim to assist clients in strategically positioning themselves in the mining sector to reap the rewards of the next crypto bull market. During the event, Bitmain will introduce its latest research and development achievement — the ANTMINER S21 mining machine.The ANTMINER S21 is likely to take its place at the forefront of Bitcoin mining, given that Bitmain’s ANTMINER series has dominated the mining sector in recent years. Bitmain claims that with the S21, it is introducing a miner with unmatched computing power and efficiency, ushering the global mining industry into the 1XJ/T (Joules/Terahash) era.Ever greater efficiencyBitmain has consistently led the industry’s technological innovations, starting with the S9 model, which first broke the 100J/T barrier, to the S19 series with efficiency ratings of 34.5J/T, 29.5J/T, 21.5J/T, and 20.8J/T. The upcoming S21 is expected to continue this track record of ever greater Bitcoin miner efficiency.In addition to technological advancements, Bitmain is using the summit as a mechanism to offer benefits to attendees. The company will launch a customer points system, allowing clients to apply for credit limits for S21 miners based on their points, enabling them to mine first and pay later. Moreover, the points system will facilitate conversion of points into exclusive coupons for the ANTMINER S21.Hong Kong venueHong Kong has been chosen as the venue for this summit and that’s likely by design rather than by coincidence. Over the course of the past twelve months, the Chinese autonomous territory has been making huge strides in its efforts to become a center for blockchain and crypto-related business.In recent months, Hong Kong has announced several supportive blockchain policies, attracting a significant pool of Web3 talent. The summit will also feature keynote speeches from local government officials, indicating the willingness of the local administration to take every opportunity to further Hong Kong’s strategic objective of furthering crypto, blockchain, and Web3 in the city.Bitcoin mining has proven to be ruthless in its drive towards ever greater efficiency. This is playing out mainly on two different fronts. Firstly, in terms of the cost of the energy input. Miners continue to innovate in this area, to the extent that at this point, it’s difficult to remain competitive if an operation is not tapping into an energy source with a near zero input cost. This is being exploited by sourcing energy that is surplus to energy grid requirements, oftentimes renewable energy, that would otherwise be wasted.The second major factor is the efficiency of the miners themselves. Entities that gain early access to the latest generation of miners from Bitmain and other mining equipment manufacturers immediately become more efficient than the other mining outfits that they compete with to unlock Bitcoin mining rewards on the Bitcoin network.

Huobi Co-Founder Acquires 10 Million CRV TokensJun Du, Chinese Co-Founder of Seychelles-headquartered global crypto exchange Huobi, has recently completed the purchase of 10 million curve tokens (CRV) from Curve founder Michael Egorov.Photo by Growtika on UnsplashCurve protocol loan exposureThe transaction amounted to $4 million and is part of Egorov’s ongoing efforts to mitigate his at-risk loan exposure, a further consequence of last week’s $52 million hack of the Curve DeFi protocol.Initially, Du expressed his interest in acquiring 10 million CRV tokens at the prevailing rate of $0.40. This price aligned with multiple over-the-counter (OTC) agreements between Egorov and various cryptocurrency individuals. According to a report by The Block, Du later confirmed the purchase through a Twitter direct message, revealing that he had chosen to lock up the acquired tokens as veCRV. This lock-up mechanism grants voting rights within the Curve platform while requiring the tokens to remain locked for a specified duration.“I intend to uphold this lock-up for at least a year, with optimism for continuous improvements within the Curve ecosystem,” Du stated, highlighting his commitment to the project’s long-term growth.On his Twitter account, Du emphasized his unwavering support for Curve, drawing parallels to his past backing of BendDAO during a liquidity crisis. He clarified: “Challenges faced now are transient, and collective support will foster a stronger industry.”Alongside being a Co-Founder at Huobi, Du holds the positions of CEO at New Huo Tech, a digital asset service platform, and Co-Founder and General Partner (GP) at the Web3 fund ABCDE.Ongoing token sell-offIn actively managing liquidation risk, Egorov is persistently offloading CRV tokens to bolster his loan position, given his significant exposure. He has utilized multiple DeFi lending platforms to secure loans, predominantly employing CRV tokens as collateral to borrow stablecoins. His borrowing activity on platforms like Aave alone has involved $56 million in stablecoins against $149 million worth of CRV collateral.Egorov’s health ratings on these platforms have improved recently, hovering around 1.67 or higher. Nonetheless, there remains a lingering risk associated with potential liquidation of his positions if CRV’s price were to dip substantially. This could potentially lead to bad debt scenarios for the platforms, particularly due to the substantial proportion of CRV supply involved.Sales of 72 million CRVEgorov’s token sales have amounted to 72 million CRV, according to Nansen analyst Sandra Leow. Notable recipients of these tokens include Tron Founder Justin Sun, crypto trader “DCFGod,” and Andrew Kang, Co-Founder of Mechanism Capital.Aave Chan Initiative, an entity tied to the Aave protocol, has proposed that the Aave treasury allocate funds to purchase up to $2 million worth of CRV tokens. The intention is to lock up these tokens as veCRV for an extended period, potentially up to four years. This move is aimed at further reinforcing the stability of CRV’s market dynamics.