Gulf Binance Secures Thai Digital Asset License

Aevo Launches Novel Index Perpetual ContractAevo, the layer-2 derivatives platform launched by Singapore’s Ribbon Finance earlier this year, has introduced a new index perpetual contract.The contract allows traders to engage in long or short positions based on the market capitalization of accounts within the social application Friend.tech.Photo by Compare Fibre on UnsplashFRIEND-PERPThe FRIEND-PERP market is now live according to The Block, and it has gained significant traction, boasting a daily trading volume of $501,824 and a current trading price of $7.14. This market operates on a unique premise — a perpetual contract, which, unlike conventional futures contracts, does not adhere to an expiration date. This feature is particularly appealing to the crypto trading community, enabling them to seize opportunities without the constraints of time-bound contracts.Surge in interestFriend.tech, the social app at the center of this Aevo product offering, has integrated with Ethereum layer-2 network Base, a blockchain incubated by Coinbase earlier this year. This network, which officially welcomed the public on August 9, has been the center of attention within the crypto sector over the past couple of weeks.The social app enables market participants to buy shares of individuals who hold accounts on X (formerly Twitter). Since its launch earlier this month, the Friend.tech app has grown rapidly. It attracted over 100,000 daily users within 24 hours of its launch.Each user stands to benefit financially from the purchase and sale of their shares, a pioneering approach that has lured prominent figures, including venture capitalist Garry Tan, NBA star Grayson Allen, and celebrated YouTuber FaZe Banks, to the platform.Boost for BaseUS crypto platform Coinbase has embraced Friend.tech as it marks the first major breakthrough use case for its Base blockchain network. This collaborative effort has propelled the Base network to new heights, positioning it among the top cryptocurrency projects by user fee revenue. With $1.4 million in fees generated over the last 24 hours alone, Friend.tech ranks among industry giants, trailing only Ethereum and Lido Finance in this metric, according to data from DeFiLlama.While the app has risen at a phenomenal pace, there are concerns relative to the degree of privacy it affords its users. The public availability of the Friend.tech API used to convert X usernames into wallet addresses has raised the alarm for potential data exposure.A Yearn Finance developer, known by the pseudonym Banteg, used this API to compile a list of Ethereum addresses linked to X accounts. While the community has reassured users that access can be revoked, the implications of this exposure for privacy and security cannot be understated.The Aevo project was first announced by Ribbon Finance in September 2022 and subsequently launched in June. The goal of the project is to convert users from centralized exchanges, bringing them over to the decentralized exchange (DEX) platform.

KCS Says Illegal Forex Transactions for Crypto Purchases Amount to $7.7BOver the past five years, the total value of illegal foreign exchange transactions associated with virtual asset purchases has amounted to approximately KRW 10.4 trillion ($7.7 billion), according to the Korea Customs Service’s report received on Thursday by Go Yong-jin, a member of the Democratic Party of Korea on the National Assembly’s Strategy and Finance Committee.Photo by Sasun Bughdaryan on Unsplash“Illegal transactions on foreign exchanges for the purchase of virtual assets are occurring due to the higher prices of virtual assets in Korea compared to prices abroad,” Go explained.Crimes incited by crypto waveThe data showed that the number of violations subject to fines was 6,066, involving forex transactions of KRW 2.3 trillion. In particular, violations made in 2020 and 2022 accounted for the majority, making up 78.7% with 4,775 cases and a value of KRW 1.9 trillion, or 83.7% of the cumulative total. This indicates a substantial increase in illegal activities during the periods when the crypto investment frenzy in Korea was at its peak.Uncovering key patternsWhile foreign exchange transactions were primarily intended for acquiring virtual assets, they were often disguised as trade payments. There were also cases where individuals withdrew foreign currency from overseas ATMs to buy cryptocurrencies. These two scenarios were the most prevalent cases for which fines were imposed. More specifically, among the 6,066 violations, there were 4,518 instances of the former and 1,486 cases of the latter. The transferred funds amounted to KRW 1.9 trillion and KRW 407 billion, respectively.During the five-year period, individuals involved in 93 cases of these forex activities — collectively valued at KRW 8.1 trillion — were penalized following the referral of their cases to prosecutors. In particular, the violations in 2022 accounted for 70.3% (KRW 5.7 trillion). This could be accredited to the breakout of suspicious large-scale forex transactions last year, which prompted local authorities such as the Korea Customs Service and the Financial Supervisory Service (FSS) to initiate planned investigations.The most common type of illegal foreign exchange transaction cases referred to prosecutors was similar to those that incurred fines: overseas remittances disguised as trade payments, constituting 49.9% (KRW 4 trillion) of all cases. Transferring foreign currency via unregistered entities was the second most common violation, making up 47.2% (KRW 3.8 trillion). These transfers breach the Foreign Exchange Transactions Act and are always reported to prosecutors.Go thereby called on authorities to intensify crackdowns on illegal forex transactions aimed at trading virtual assets and to revise foreign exchange regulations accordingly.

Dubai Increases Monitoring of Crypto License HoldersDubai is scrutinizing crypto license holders and license seekers more closely as a direct consequence of the collapse of Bahamas-based cryptocurrency exchange FTX, last year.On Wednesday Bloomberg cited people familiar with the matter who told it that Dubai’s Virtual Assets Regulatory Authority (VARA) has recently requested more information on the ownership structure, governance, and auditing procedures of applicants like global crypto exchange, Binance.©Pexels/Aleksandar PasaricCloser scrutinyAll international companies seeking permits are being asked for similar information. This stricter approach is a potential problem for Binance CEO Changpeng Zhao (CZ), who lives in Dubai and has made it a central point of expansion in the Middle East. The Emirate is attempting to balance fostering innovation with proper oversight of an industry that has been the subject of high-profile scandals in the past year.According to Sam Blatteis, CEO of The MENA Catalysts, which provides government-relations advice to fintech multinationals expanding in the Persian Gulf, “VARA wants to turn Dubai into a capital for the digital-assets economy while safeguarding its business ties with Western jurisdictions like Europe that are adopting more muscular crypto regulations.”CFTC lawsuitIn March, the US Commodity Futures Trading Commission sued Binance and CZ for allegedly violating derivatives regulations, claiming the firm had inadequate compliance procedures. Binance expressed disappointment with the lawsuit.The company claimed at the time that it had provided all necessary information to VARA regarding its ownership structure and external auditor, as well as answering any other queries on a proactive basis. VARA officials are also seeking information on the ownership, auditing, and board procedures at the global group level of Binance.Steering clear of FATFDue to its size and complexity, addressing these queries is taking longer. Binance’s complicated corporate structure includes several holding companies, three of which are named in the CFTC lawsuit, and multiple local entities. In February, a senior executive said Binance was attempting to hire an auditor for its entire balance sheet.Dubai is trying to get off the “gray list” of global money laundering and terrorist financing watchdog the Financial Action Task Force (FATF). To that end, it has cracked down on unlicensed over-the-counter (OTC) crypto exchanges, according to anonymous sources. Dubai belongs within the United Arab Emirates (UAE), with the foreign ministry of the UAE declining to provide any comment on the matter to Bloomberg. Komainu, Hex Trust, GC Exchange and Crypto.com are the four companies, in addition to Binance, that are licensed in the UAE, with the former three having only Preparatory Minimum Viable Product (PMVP) permits.Hex Trust said that providing additional information on ownership, auditing and board procedures didn’t prolong the application process for its Operational MVP license. Laurent Girouille, the head of Komainu’s regional office in Dubai, said the regulatory requirements were stringent. Meanwhile, Binance is awaiting the launch of Binance FZE, which is audited by Mazars and has a board of directors, while it upgrades to an Operational MVP license before applying for a Full Market Product permit.