Gate.io Threatens Legal Action Against Speculators

Sam Altman’s iris-scanning project Worldcoin (WLD) has resumed its service in South Korea following two months of suspended operation, according to Digital Today. The project utilizes a device dubbed “Orbs” to collect personal biometric data from users who agreed to have their iris scanned by the machine.  The service was suspended after a number of complaints were filed against Worldcoin in February for its data collection practices. In the following development, Korea’s Personal Information Protection Committee (PIPC) launched an investigation into Worldcoin to examine if any local privacy law has been violated by Worldcoin. This led to suspension of six Orbs installed in several areas in Seoul, including Yeouido and Yeoksam areas.  While these Orbs have resumed operations, the investigation is still underway. The South Korean regulators are yet to decide what legal measures to take regarding Worldcoin, according to the press. Photo by Amanda Dalbjörn on UnsplashProof of personhood: Crypto tokens for simply being human Meanwhile, Worldcoin argues that it is impossible to identify an individual person by solely relying on the iris bio-data. It claims that the data will be only used in providing “proof of personhood” to distinguish humans from artificial intelligence (AI). The project aims to offer its WLD token to users “simply for being human” as universal basic income, whose jobs will be potentially replaced by artificial general intelligence (AGI) in the future.  A Worldcoin official added that the project has addressed potential privacy concerns by eliminating data custody processes and allowing users to remove their sensitive data at will. However, major countries including France and Spain have issued orders to suspend Worldcoin’s operation within their jurisdictions, citing risks involving personal data tracking and breaches.  A PIPC official stated that the government authority will continue the investigation and take further action in line with the Personal Information Protection Act.  

Indonesia Set to Launch National Cryptocurrency Exchange in JulyThe Indonesian government is pushing forward with its long-awaited plan to introduce a national cryptocurrency exchange, which will be accessible to citizens in the coming weeks.Photo by Bisma Mahendra on UnsplashJuly launchAccording to a report from Tempo, Indonesia’s Commodity Futures Trading Supervisory Agency (CFTRA), also known as Bappebti, has announced that the national crypto exchange will be launched in July.Didid Noordiatmoko, the head of Bappebti, revealed that all cryptocurrency transactions in Indonesia will be exclusively permitted through the national exchange. He confirmed that the agency has recently finalized discussions on stock exchange rules, which include the implementation of Know Your Customer (KYC) procedures. Noordiatmoko also mentioned that the exchange will offer trading services through an integrated application, which has already undergone testing by CFTRA.Plan delaysThe launch of the national cryptocurrency exchange was initially planned for June 2023 but faced delays, following a previous postponement from the original target of December 2022. The project gained traction in 2021 when a government-backed Indonesian telecoms company announced a partnership with Binance to develop a joint cryptocurrency exchange.According to the latest report, Bappebti intends to restrict cryptocurrency sales to local transactions while aligning with global market trends. Approval from Bappebti will also be required for cryptocurrency prices on the exchange.Bappebti has informed Trade Minister Zulkifli Hasan about the progress of the national exchange. Noordiatmoko stated that unless further instructions are received, Bappebti will proceed to issue the necessary permit, allowing licensed traders one month to join the exchange.As of earlier this year, Indonesia had around 383 tradable crypto assets and ten local coins, with an additional 151 assets and ten coins under review by Bappebti.Indonesia’s central bank has released a white paper outlining its digital currency plans and approved a law classifying cryptocurrencies and digital assets as regulated financial securities. It has shown a level of support for digital assets albeit with an eye towards maintaining strict control. It has taken the lead in classifying 501 crypto assets, including BTC, ADA, BUSD, DOT, XTZ, and SAND, as commodities, setting an example that other nations may follow.Crypto is not permitted as a means of payment in Indonesia and in May the Governor of Bali warned foreign visitors against using it as such.In 2022, Indonesia’s trade ministry reported approximately 14 million cryptocurrency traders, surpassing the number of stock traders at 9 million. Meanwhile, the total trading value fell from 859 trillion rupiah in the previous year to around 300 trillion rupiah ($19.2 billion).Indonesia has been supportive of de-dollarization initiatives and the aspirations of BRICS nations to promote non-US fiat currencies. In April, the governor of the Bank of Indonesia, Perry Warjiyo, announced the introduction of the Local Currency Transaction (LCT) as part of Indonesia’s currency diversification strategy, aligning with the BRICS countries.

Paxos gets green light from Singapore regulator for USD stablecoinPaxos, a regulated crypto infrastructure company, has announced that it has received in-principle approval from the Monetary Authority of Singapore (MAS) for its new subsidiary, Paxos Digital Singapore Pte. Ltd.The company outlined in a press release that it published on Thursday that the new entity will be able to offer digital payment token services and issue a USD-backed stablecoin in compliance with Singapore’s upcoming stablecoin laws. Stablecoins are digital tokens that are pegged to the value of fiat currencies or other assets and are designed to minimize price volatility.Photo by Carlos Alberto Gómez Iñiguez on UnsplashRegulatory framework for stablecoinsThe MAS moved to finalize its regulation of stablecoins within the city-state in August. That regulation insists on stablecoin issuers holding reserve backing for a stablecoin in low risk, highly liquid assets. The regulator also puts an onus on the issuer to provide appropriate disclosures including audit results and to process redemption requests within five business days.According to Paxos, there is a strong global demand for the U.S. dollar, but it remains challenging for consumers outside the U.S. to access dollars securely, reliably and under regulatory protections. The in-principle approval from the MAS will enable Paxos to bring its regulated platform to more users around the world.The recently finalized stablecoin regulatory framework will apply to non-bank issued tokens that are linked to the Singapore dollar or G10 currencies, such as the euro, British pound and U.S. dollar. Additionally, it applies to stablecoins whose circulation exceeds five million Singapore dollars ($3.7 million). The framework aims to ensure that stablecoins are subject to appropriate governance, risk management, disclosure and consumer protection standards.Partnering with enterprise clientsPaxos said that once it receives full approval from the MAS, it will be able to partner with enterprise clients to issue the USD stablecoin in Singapore. Paxos already has experience in issuing stablecoins, such as the Paxos Standard (PAX) and the PayPal USD Coin (PYUSD), which are both backed by the U.S. dollar and cash equivalents. Paxos also issues monthly attestations and reserve reports to verify its compliance and transparency.Responding to this latest development, Paxos Head of Strategy, Walter Hessert, stated:“Global demand for the US dollar has never been stronger, yet it remains difficult for consumers outside the US to get dollars safely, reliably and under regulatory protections. This in-principle approval from the MAS will allow Paxos to bring its regulated platform to more users around the world. Because Paxos upholds the highest standards of compliance and oversight, global enterprises partner with us to power stablecoin solutions that drive their businesses and respond to their customers’ needs.”Paxos previously issued the Binance USD (BUSD) stablecoin, but was ordered by the New York Department of Financial Services (NYDFS) to stop issuing the token after the agency declared the stablecoin an unregistered security.The partnership between Paxos and the MAS is a significant step in bridging the gap between traditional finance and the emerging crypto industry. As more institutional clients seek exposure to digital assets, it becomes essential to provide them with secure and reliable solutions that meet their specific requirements.