Galaxia Metaverse, NFT Marketplace Pala Join Forces to Expand Blockchain Ecosystem

QCP Trading, the trading arm of Singaporean crypto market maker and broker dealer QCP Group, has taken a significant step towards full licensing in Singapore, having been awarded in-principle approval (IPA) for a Major Payment Institution (MPI) license by local regulator, the Monetary Authority of Singapore (MAS). Regulated spot tradingIn a press release published by PR Newswire on behalf of QCP Trading Pte. Ltd. on Nov. 11, the company outlined further details on the receipt of the preliminary license. The company confirmed that the IPA represents an “essential step towards full licensing,” enabling it to prepare to offer regulated spot trading service facilities relative to digital payment tokens. QCP Trading is geared towards facilitating a broad range of crypto spot trading, including the trading of stablecoins and major digital asset tokens. The company offers on/off ramps into and out of cryptocurrency positions via multiple fiat currencies. Photo by Guo Xin Goh on UnsplashOperational expansionDarius Sit, founder of QCP Trading, commented on the development, stating that as the firm continues its pursuit of a full trading license, the focus remains on supporting Singapore’s reputation as a leader in digital asset regulation. Sit added that the company is proud of its “ability to remain agile and responsive to both global and local market conditions,” suggesting that this approach is the key to success in the rapidly evolving crypto sector. QCP Trading intends to continue to build a local team in Singapore and with that it is hiring in order to enable operational expansion. Melvin Deng, the company’s CEO, said that the firm is aiming “to champion robust governance frameworks,” and that its “early recognition of the critical role of regulation has proven to be a strategic foresight." Global expansionThe QCP Group appears to be pursuing a global expansion strategy as back in May, group company QCP Capital received IPA for regulated digital asset trading activities from the Financial Services Regulatory Authority (FSRA), the regulator within the Abu Dhabi Global Markets economic zone in the United Arab Emirates (UAE). In doing so, it became the first Singapore-headquartered crypto broker and market maker to receive preliminary approval within the Middle East region. At that point, QCP had 70 employees, with plans to relocate some of them to Abu Dhabi. In the lead-up to that IPA licensing award in Abu Dhabi, QCP had partnered with Further Ventures as part of its efforts in expanding into the Middle Eastern market. On Nov. 11, QCP Capital put out a warning via its Telegram channel, informing market participants that given the rise in the unit price of Bitcoin in recent days, it is necessary to be mindful of the risk of pullbacks, which will be required in order to account for the use of leverage within the market. In recent weeks, Fly Wing Technologies, a subsidiary of cryptocurrency service provider Matrixport, and the Singaporean subsidiary of American crypto exchange Gemini have received IPA approval with respect to MPI licensing in Singapore. At the beginning of September, crypto exchange OKX received full MPI approval. 

Cryptocurrency Losses Surge to $686 Million in Q3The cryptocurrency industry has witnessed a turbulent third quarter, with losses surging to $686 million. This unsettling development marks the worst quarter of the year, contributing to $1.4 billion in total losses year-to-date.Photo by GuerrillaBuzz on UnsplashImmunefi reportThese alarming statistics have been unveiled in a report by Singapore-headquartered blockchain security firm Immunefi. According to the report, the number of crypto hacking incidents skyrocketed by 153% year-over-year in the third quarter, with 76 separate incidents recorded.This stands in stark contrast to the same period in 2022, which saw a mere 30 hacking incidents. Furthermore, the losses resulting from these incidents witnessed a 60% increase, surging from approximately $429 million in Q3 2022 to the current level of $685 million. This marks the highest loss recorded for the year.Devastating hacksOf these incidents, two major hacks targeting Mixin Network and Multichain were particularly devastating, accounting for nearly half of the total losses in the quarter at $326 million. The Mixin Network hack, attributed to North Korean-sponsored hackers known as the Lazarus Group, underscores the involvement of state-backed actors in crypto-related cybercrimes.The Lazarus Group’s fingerprints were also found in major hacks of cryptocurrency exchanges, including CoinEx, Alphapo, and Stake, as well as digital payments firm CoinsPaid. Web3 projects based in Japan have been particularly hard hit by the hacker group’s activities. The group was responsible for losses exceeding $200 million.An overwhelming majority of the total Q3 losses, approximately 97%, were attributed to hacking incidents, while frauds and scams constituted a mere 3%. Decentralized finance (DeFi) protocols bore the brunt of the damage, with nearly $500 million lost, compared to over $185 million stolen from centralized exchanges and services. This highlights the vulnerability of DeFi platforms and the intricacies of smart contract code that underlie many of these applications.Among the targeted blockchains, Ethereum, BNB Chain, and Coinbase-incubated Base blockchain were the most prominent, with Ethereum being hit by 35 out of 82 chain losses. These platforms were singled out due to the substantial funds they held and the high level of activity on their networks.Greater recovery effortsThough the situation may appear bleak, there is a glimmer of hope in the form of recovery efforts. Immunefi reports an 8.9% recovery rate, with $61.2 million of stolen funds successfully reclaimed in six cases. Notably, Mixin Network recently introduced a $20 million “bug bounty” in a bid to incentivize the return of stolen funds, underscoring the cryptocurrency industry’s unwavering determination to combat these challenges.Immunefi itself has played a pivotal role in mitigating crypto-related risks, disbursing over $80 million in bounties and safeguarding more than $25 billion in user funds across various protocols. The company’s recent launch of on-chain vaults represents a significant step toward decentralizing its bug bounty platform, further fortifying security within the crypto ecosystem.

The long-awaited approval of spot bitcoin exchange-traded funds (ETFs) in the U.S. on Tuesday is anticipated to have a more substantial impact on the development of cryptocurrencies in Asia. That’s the view of Yat Siu, the co-founder of Animoca Brands, a Hong Kong-based crypto venture capital and game software firm. The U.S. Securities and Exchange Commission's (SEC) approval is expected to attract new capital to the crypto industry, providing a safer avenue for the crypto-curious.Photo by André François McKenzie on UnsplashPotential for surge of interest in AsiaIn an interview with The Block, Siu emphasized the positive effect on Asia, attributing it to the region's regulatory clarity and the willingness of governments and regulators to build a crypto ecosystem. Strengthening regulatory oversight was a finding of a recent report relative to a number of Asian hubs. Industry leaders believe that the approval of spot bitcoin ETFs in the U.S. could lead to a surge of interest in Asia, where crypto adoption is already higher than in other continents. The perception of cryptocurrencies as investment assets, rather than just for transactions, might shift in the Asian market, with the ETF offering a regulated and lower-risk avenue for investment exposure. Additionally, Yat Siu noted that Asian investors, particularly the younger generation, have a more open view towards capitalism compared to their U.S. counterparts. In a recent interview with CNBC, Australian venture capitalist and founder of MHC Digital Group, Mark Carnegie, also expressed the opinion that the digital asset markets in Asia would flourish once the hype of the U.S. ETF approval has subsided. ETF focus on Singapore and Hong KongPost the U.S. approval, attention turns to Asia, with Hong Kong and Singapore emerging as potential candidates for introducing spot crypto ETFs. Hong Kong, in particular, has undergone regulatory renewal, positioning itself as a crypto hub, with it reportedly already attracting interest from fund managers, including those backed by Chinese capital, looking into launching spot crypto ETFs. Yat Siu alongside Glenn Woo, Head of Sales of APAC at Web3 infrastructure company Blockdaemon, were both positive in their assessment of Hong Kong as a worthy location for the offering of spot bitcoin ETFs in comments made last month. In November, the CEO of Hong Kong’s Securities and Futures Commission (SFC) indicated an openness to considering proposals for spot crypto ETF products aimed at retail investors. Singapore, known for its mature regulatory environment, is also considered a strong contender. Meanwhile, Japan may witness significant regulatory movement following the U.S. ETF approval. However, challenges and variables remain for Asia. The scale of capital inflows in Asia, compared to the U.S., and the caution of regulators in the face of crypto industry volatility and trust issues are cited as potential hurdles. Some experts suggest that Hong Kong and Singapore may initially be cautious in encouraging retail participation in virtual asset investments due to previous losses experienced by residents. Still, in the medium to longer term, increased interest and appetite for virtual assets are expected.