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KuCoin Halts Bitcoin and Litecoin Mining Pools Amidst Strategic ShiftIn an announcement on Tuesday, Seychelles-based cryptocurrency exchange KuCoin revealed its decision to temporarily suspend its Bitcoin and Litecoin mining pools, effective from 16:00:00 on August 15, 2023 (UTC).Photo by Traxer on UnsplashChanging business strategyThis move is attributed to KuCoin’s evolving business strategy, although specific details remain undisclosed. The exchange expressed its regret for any inconvenience caused and extended gratitude for users’ continued support.It appears that the company wants to focus on core business activities and for that reason, it’s terminating its mining pool activity. That said, the discontinuation was described in its statement as being “temporary” although that has been left open-ended with no indication of if or when it would bring the service back into operation.The company is open to the idea of revisiting the facilitation of mining pools in the future. “We will see if it is needed to restart based on the market and users’ demand in the future,” a spokesperson for the company told The Block.To ensure miners’ uninterrupted earnings during the suspension, KuCoin advised users engaged in cryptocurrency mining to transition their Bitcoin (BTC) and Litecoin (LTC) miners to alternative mining pools before the specified suspension date. Additionally, the exchange emphasized the importance of backing up and preserving mining records and related data, recommending users complete these actions before August 27.Presently, the KuCoin Bitcoin mining pool maintains a hash rate of 9.08 exahash per second (EH/s), while the Litecoin pool operates at 3.90 terrahash per second (TH/s). These figures contribute to the broader hash rate landscape, where the entire Bitcoin network boasts a hash rate of 349.19 EH/s, compared to the Litecoin network’s 792.16 TH/s.Workforce reductionIt is clear that the company is in the process of adjusting to current market conditions. Last week, rumors surfaced of a plan to effect a workforce reduction. That prompted KuCoin’s CEO Johnny Lyu to respond, clarifying that the exchange’s operations are running smoothly. Dismissing layoff speculation, Lyu highlighted the exchange’s steady expansion and strong growth as demonstrated by the H1 2023 report. The report showcased an increase in users and new listings, underscoring the platform’s vitality and development.Mandatory KYCIn recent months, KuCoin has also implemented mandatory Know Your Customer (KYC) requirements, obligating users to undergo verification processes. Existing customers who fail to complete KYC procedures will be unable to make deposits. With over 20 million registered accounts, the exchange felt that it needed to improve on its level of regulatory compliance and security measures.It’s highly likely that an action taken by authorities in New York in the United States in March prompted KuCoin’s decision to tighten up on KYC. At that time, the New York Attorney General said that action was being taken against KuCoin due to its failure to register as a securities and commodities broker-dealer.As KuCoin undergoes these changes, the suspension of its mining pools raises questions about the broader implications for its business strategy and the potential impact on miners within its ecosystem. That said, the firm is not alone in making changes, with most crypto exchanges having had to adjust to a business and regulatory environment that has changed considerably since the 2021 crypto bull run.

Dubai Regulator Suspends BitOasis’ Crypto LicenseDubai’s pioneering cryptocurrency exchange, BitOasis, has had its operating license suspended by the city’s cryptocurrency regulator for failing to meet key conditions within the required timeframes. The Virtual Assets Regulatory Authority (VARA) took enforcement action against BitOasis and initiated a review of the Dubai-based firm.BitOasis was granted a conditional license on April 12, which allowed it to operate on the condition that it met specific requirements within 30 to 60 days. However, the exchange has failed to fulfill these conditions, leading to the suspension of its license. VARA did not disclose the exact nature of the unmet conditions, but it stated that until they are satisfied, BitOasis’ “License for Institutional and Qualified Retail Investors” will remain non-operational.Photo by iridial on UnsplashFirst MVP broker-dealer license holderBitOasis had received the first “minimum viable product operational license” from VARA, enabling it to offer broker-dealer services to qualified institutional and retail investors in Dubai. This license represents a crucial step towards obtaining a full market product (FMP) license, but as of now, no firm has been issued an FMP license by VARA.To become eligible for the FMP license, BitOasis must fulfill the conditions specified in its current license, as outlined by VARA. The regulatory authority has emphasized its commitment to monitoring the situation for compliance remediation.OPNX reprimandThis recent development follows VARA’s reprimand of Su Zhu and Kyle Davies, the co-founders of the now-defunct crypto hedge fund Three Arrows Capital, in April. The duo had operated and promoted their new OPNX crypto exchange in Dubai without the necessary license, catching VARA’s attention.BitOasis addressed the regulatory concerns in a blog post on Tuesday, affirming its collaboration with VARA to meet the remaining conditions for the Operational MVP License. The exchange clarified that the issue with its license does not impact other services provided, such as broker-dealer services for existing retail users. It also took to Twitter on Tuesday to clarify the situation. The company has suspended new user registrations until further notice, presumably as it works towards meeting VARAs licensing requirements.BitOasis stated: “You can continue to use BitOasis with the assurance that your assets are safe, secure, and held at their full value on our platform, and our team will continue to cooperate with the Virtual Asset Regulatory Authority and fulfill all post-operational license terms, as well as working towards a full market product license.”The firm referred to the “unique challenges” that are associated with licensing and suggested that it is determined to address them and to “be a leader in the virtual assets sector.”The suspension of BitOasis’ license highlights the stringent regulatory environment in Dubai’s cryptocurrency sector. VARA is demonstrating that it remains committed to enforcing compliance and ensuring that crypto exchanges meet the necessary requirements. BitOasis must rectify the issues and meet the conditions of its license to regain its operational status and proceed towards obtaining the coveted full market product license in the future.

Singapore’s Whampoa Digital collaborates on establishment of $100M Web3 fundWhampoa Digital, the Web3 subsidiary of privately-held Singaporean investment firm Whampoa Group, has entered into a collaboration with an Asian gaming company to establish a $100 million Web3 fund.Photo by Towfiqu barbhuiya on UnsplashFocus on Web3 in the Middle EastThe WEMIX Foundation, a subsidiary of South Korean blockchain gaming firm Wemade, announced details of the new fund via a press release published to its website on Friday.Wemade is renowned for its massively multiplayer online role-playing game (MMORPG) series Legend of Mir. This strategic collaboration aims to catalyze the expansion of the digital asset industry, with a specific focus on the rapidly growing Web3 sector in the Middle East.Reciprocal deal and project referralsThe Web3 fund initiated by Wemade is set to play a pivotal role in supporting developers at the Wemix Play Center situated in Dubai. Both Wemade and Whampoa Digital plan to engage in reciprocal deal and project referrals, particularly within the Web3 industry, and explore potential co-investment opportunities in promising projects.Aureole Foong, senior partner of Whampoa Group, expressed optimism about the partnership’s potential impact. Foong highlighted the significance of this collaboration in expanding the digital asset industry beyond established sectors and fostering innovation in the Middle East, recognized as one of the world’s fastest-growing regions in the Web3 space.Web3 gaming experienceWemade has extensive experience in the gaming sector, dating back to its establishment in 2000 and its notable creation of the Legend of Mir series, positioning it as a key player in the gaming industry. The company has diversified its portfolio by venturing into the blockchain space, launching Wemix, a tech ecosystem offering Web3 services.Wemade’s blockchain gaming platform, Wemix Play, boasts a player base of over 250,000 users. Last week the Wemix Foundation announced the launch of its una Wallet, associated with the company’s omnichain network and interoperable Web3 gaming platform.In addition to co-investing in gaming studios and blockchain projects in the Middle East and North Africa (MENA) region, Wemade is planning to establish a global Web3 gaming hub at the Dubai International Financial Centre (DIFC). The company will also set up an office for the newly formed Web3 fund at this location. The DIFC’s Innovation Hub, coupled with Wemade’s hub, will provide essential facilities and mentorship for the fund’s portfolio firms.Whampoa Digital, the investment arm of Whampoa Group, is well-versed in supporting global tech firms, including notable names like TikTok’s parent company ByteDance and crypto major Binance. In May Whampoa announced that it had plans to establish a crypto-friendly bank in Bahrain.2023 has presented challenges for Web3 investors seeking new funds. According to a report by the research arm of crypto investment firm Galaxy Digital, the average new Web3 fund size for the first nine months was $238.4 million, with a median of $50 million — both figures significantly lower than the same period last year.