Taiko Labs Raises Funding to Build Ethereum-Equivalent zkEVM

KuCoin, the Seychelles-based cryptocurrency exchange, has revealed a strategic move in its investment and incubation initiatives through the KuCoin Labs program. In a press release which was published on Tuesday, KuCoin announced its investment in ISSP, a project focused on developing an inscription protocol on the layer one Sui network, renowned for its throughput and scalability.Photo by Towfiqu barbhuiya on UnsplashFirst cross-chain inscription protocolISSP introduces the first cross-chain inscription protocol system, seamlessly integrating an inscription marketplace and inscription swap. The project is in its early stages. Last week ISSP took to social media to announce its inscription-related product launch. It stated:”We are launching the first multi-chain interoperability system for inscription protocols, focused on the BTC ecosystem to enable interoperability between BTC's inscription protocols and other chains.” With the launch, it’s introducing the Sui network’s first inscription protocol under the SUI-20 standard. Leveraging the unique Objects model of the Sui network, ISSP aims to naturally enhance inscription systems. Having already launched the SUI-20 inscription standard protocol on the Sui network, it is utilizing the built-in indexer of the network node to index inscription data. Seamless CEX inscription integrationTo ensure optimal performance and stability of inscription data, ISSP utilizes the indexer integrated into the Sui Chain node. Notably, ISSP facilitates the integration of inscriptions with centralized exchanges (CEX), eliminating the need for additional development to interface with inscription protocols. While the exact financial details of the investment remain undisclosed, ISSP plans to utilize the funds to expand its operations and further its development efforts. ISSP recently achieved a significant milestone by completing its Free Mint process, attracting 13,947 addresses and 2,002,186 transactions (TXs). The surge in user activity led to the Sui Chain's transactions per second (TPS) exceeding 1,000 for the first time. Sui-related investmentsThis marks KuCoin Ventures' continued interest in projects related to the Sui network. Last year, the exchange participated in a funding round for Cetus, a decentralized exchange (DEX) and concentrated liquidity protocol built on the Sui and Aptos blockchains. Alongside KuCoin Ventures, prominent investors such as Comma3 Ventures, AC Capital, Adaverse, Animoca Brands, Coin98 Ventures, IDG Capital, Leland Ventures, NGC Ventures and OKX supported Cetus. In April, the KuCoin crypto exchange actively promoted the SUI token as part of its Spotlight Token Program. The Sui Network seeks to distinguish itself as the first Layer 1 blockchain designed to cater to creators and developers targeting the next billion users in Web3. It provides horizontal scalability for diverse dApp development. Claiming to be a step-function advancement in blockchain technology, Sui prioritizes high throughput, instant settlement speeds, rich on-chain assets and user-friendly Web3 experiences. KuCoin's investment in ISSP underscores its commitment to supporting innovative projects on the Sui network, reinforcing the exchange's role in shaping the future of blockchain development. Similarly, the ISSP's product development demonstrates that following a big year for inscriptions in 2023, further progress is likely to unfold in 2024.

First Digital to Introduce USD-Backed USD StablecoinFirst Digital Trust, a Hong Kong-based qualified custodian and trust company, is set to introduce a new stablecoin called “First Digital USD,” with the short-code $FDUSD. This stablecoin will be pegged to the US dollar but regulated within Asia.Photo by Alexander Grey on UnsplashIntroducing $FDUSDAccording to First Digital, $FDUSD will be backed by one US dollar or an asset of equivalent fair value on a one-to-one basis. The reserves supporting FDUSD will be held in segregated accounts at institutions in Asia.$FDUSD aims to provide stability and will be programmable, enabling the execution of financial contracts, escrow services, and insurance without the need for intermediaries. In a statement published on Thursday, First Digital emphasized its commitment to full compliance with current and future laws and regulations. The company also expressed its intention to participate in shaping the regulatory landscape for $FDUSD and First Digital itself.The announcement of $FDUSD is particularly significant in light of the new “Guidelines for Virtual Asset Trading Platform Operators” set to take effect in Hong Kong on June 1. These guidelines outline rules for safe asset custody, client asset segregation, conflict of interest avoidance, and cybersecurity standards, as mandated by Hong Kong’s Securities and Futures Commission (SFC).Hosted on BNB Smart ChainFDUSD will operate on the BNB Smart Chain and will be issued by First Digital Labs, a subsidiary of First Digital Trust, a regulated digital asset custodian under the Hong Kong Trustee Ordinance. The law ensures that $FDUSD will be fully backed by US dollar reserves or highly liquid, high-quality assets held in regulated Asian financial institutions, with no commingling with other assets of First Digital.Vincent Chok, CEO of First Digital, emphasized the company’s commitment to regulatory compliance and setting a new standard for legitimacy in the industry. First Digital intends to comply with all applicable laws and regulations and actively contribute to the shaping of regulatory regimes for $FDUSD and First Digital in the future.The $FDUSD stablecoin will be redeemable for US dollars, providing users with a reliable bridge between the digital and fiat currencies.Biden administration's own goalAs regulatory uncertainty persists in the United States, some industry players are expressing concerns about losing the country’s leadership position in the crypto sector. They warn that the industry may be offshore to more favorable jurisdictions.News of First Digital Trust’s US dollar stablecoin intentions brought scathing criticism of US policy from US commentators within the crypto space. Austin Campbell, Managing Partner at Zero Knowledge Consulting, a firm that advises on crypto payments and stablecoins, stated that the US government and US regulators had created a paradigm where they now have less control over distribution and regulation while the product they were suppressing continues to exist and scales elsewhere.Nic Carter, Partner at venture capital firm Castle Island Ventures, wrote that “the wise sages in US government took one look at the onshore registered stablecoin market and decided they’d much prefer unaccountable offshore crypto-eurodollars.”Macro-economist Luke Gromen described this consequence of US policy as the “monetary equivalent of deciding they would prefer making their goods in China rather than paying US workers and deal with union labor.” Meanwhile, Caitlin Long, Founder and CEO of digital asset-focused Custodia Bank, suggested that US federal regulators “thought they could kill USD stablecoins” but that “they miscalculated.”

Korean Lawmakers Make Progress on Virtual Asset User Protection BillOn Tuesday, the subcommittee for legal deliberations under the South Korean National Assembly’s National Policy Committee reached a consensus during the first review of the Virtual Asset User Protection Bill, according to Yonhap Infomax.©Pexels/Andrea PiacquadioFirst review phaseThe bill is undergoing a two-phase review process before being legislated. During the first phase, the primary focus was on safeguarding customer assets and preventing unfair transactions. The second phase is expected to concentrate on market order regulations, including the issuance and disclosure of virtual assets.Application of Capital Markets ActSeveral stipulations were included in the approved draft of the Virtual Asset User Protection Bill during the initial review phase. These stipulations include prioritizing the application of the Capital Markets Act to virtual assets that are classified as securities, while excluding central bank digital currencies (CBDCs) from the definition of virtual assets to avoid any potential confusion. The bill also seeks to impose compensatory damages and penalties for any unfair trading practices, and establish a virtual asset committee responsible for investigating any unfair transactions in the digital asset market.The virtual asset committee will also engage in preliminary deliberations regarding the management, supervision, and monitoring of the digital asset market. The committee will carry out tasks assigned to it by the Financial Services Commission (FSC). Furthermore, the Bank of Korea has been granted the right to request data from virtual asset operators since virtual assets, although not currencies, are necessary to consider when establishing monetary credit and financial stability policies.No class action systemHowever, the introduction of a class action lawsuit system was not adopted, and details about inspecting virtual asset operators will be stipulated in a presidential decree rather than a law.Second review phaseFor the second review phase, the FSC will report several matters to the National Assembly. These will involve tasks such as establishing a regulatory framework for stablecoins, security tokens, and utility tokens. In addition, the agency will be responsible for creating a regulatory system for virtual asset valuation, advisory, and disclosure services, as well as an integrated computerized system that provides reliable and reasonable information on digital assets. The FSC will also explore ways to enhance the business conduct discipline of cryptocurrency operators by commissioning research from external organizations.Additionally, the FSC and the Financial Supervisory Service will work on supporting virtual asset exchanges to establish uniform standards for the circulation supply of virtual assets. The regulatory bodies will also enforce the requirement for transparent disclosure and strict internal control on virtual asset operators. Moreover, regulations will be developed to enhance virtual asset usability and remove any obstacles that may impede the development of innovative real-life services.