Wemade to unveil upgraded DAO platform Wepublic in February

Terraform Labs civil trial proceeds with confidential filingsSingaporean blockchain development firm Terraform Labs, the creator of the failed Terra blockchain protocol, has reached an agreement on a protective order in their ongoing civil case with the United States’ Securities and Exchange Commission (SEC).Photo by Thomas Habr on UnsplashData shielded from public disclosureThe decision, sanctioned by the U.S. District Court Judge Jed Rakoff in the Southern District of New York on Wednesday, ensures that materials marked as confidential by the involved parties will remain shielded from public disclosure. The court is obligated to seal any discovery filings labeled confidential ahead of the trial.Judge Rakoff conveyed his likelihood of denying requests to unseal these confidential documents, although the order did not delve into the specific rationale for maintaining their confidential status beyond citing “good cause.” The finalized agreement on this protective order took place on Dec. 18, with legal representatives from both the SEC and Terraform Labs, including co-founder Do Kwon, giving their consent. Kwon, presently detained in Montenegro, faces potential extradition to the United States or South Korea.Pivotal momentThe depegging of Terraform’s stablecoin TerraUSD (UST) from the U.S. dollar marked a turning point in the cryptocurrency sector. This event is believed to have significantly contributed to the crypto market downturn in 2022, as it had a knock-on effect on countless other crypto businesses and platforms that were over-exposed to the flawed algorithmic currency.That chain of events led to the SEC taking action after the fact. However, it has subsequently also pursued a much criticized “regulation by enforcement” policy relative to the crypto sector. To that end, the Commission has pending cases against Coinbase, Ripple, Kraken and Binance, among others.In February, the SEC accused Terraform Labs and Do Kwon of conducting a multi-billion dollar crypto asset securities fraud by offering and selling unregistered securities. As proceedings have unfolded, both Terraform and the SEC have traded unsuccessful attempts to obtain summary judgment.Far-reaching consequencesThe ongoing SEC vs. Terraform civil case carries potential far-reaching consequences in terms of legal precedents within the cryptocurrency sector. In a separate ruling in August, the court allowed Terra to issue subpoenas to FTX entities as part of FTX’s bankruptcy proceedings. Judge Rakoff, in November, accepted confidential materials from Jump Crypto Holdings for discovery in this case.Troubled crypto lender Genesis Trading has also been tangled up in the proceedings with the courts directing it to comply with a subpoena initiated by Terraform Labs. The outcome of this case is poised to offer essential legal guidance for numerous companies operating in the crypto space.The SEC’s regulatory approach toward cryptocurrency firms in the United States has been subject to considerable debate and criticism. The commission’s alleged “regulation by enforcement” strategy, especially in dealings with major players in the crypto industry, has drawn accusations.While many in the U.S. have been unhappy with “regulation by enforcement,” the upside is that over the longer haul, the courts will be able to eventually furnish the regulatory clarity that the SEC refuses to provide. The ongoing scrutiny of regulatory approaches and the outcomes of cases like Terraform Labs vs. SEC will undoubtedly shape the future legal landscape of the cryptocurrency industry.

Thai SEC Implements Measures to Protect Crypto InvestorsIn response to the crypto lending crisis that unfolded in 2022, prompting companies like BlockFi and Celsius to declare bankruptcy, Thailand’s Securities and Exchange Commission (SEC) has introduced new regulations aimed at safeguarding investors in the digital assets space.Photo by Jakob Owens on UnsplashDisclosing risk warningsThe guidelines, issued on Monday, require digital asset service providers to provide comprehensive warnings that emphasize the risks associated with cryptocurrency trading. All platforms must prominently display a message stating: “Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly, because you may lose the entire investment amount.” Prior to utilizing the service, users must consent to and acknowledge the risks.Crypto lending prohibitionIn addition to the risk disclaimer, the new guidelines explicitly forbid service providers from using customer funds for lending or investment purposes. This ban on crypto lending services prevents platforms from offering any returns on deposited crypto to customers. By implementing these measures, the Thai SEC aims to enhance investor protection and shield investors from the risks posed by lending services. The regulations are scheduled to take effect at the end of the month.Today’s guidelines are the product of months of deliberation. Discussions surrounding investor protection regulations commenced on September 1, 2022, when the SEC acknowledged the necessity for security warnings by cryptocurrency businesses to disclose the risks associated with trading digital assets. The prohibition on digital asset operators offering deposit-taking and lending services was deliberated during meetings held on December 1, 2022, and May 11, 2023.Response to crypto platform failuresThe introduction of these investor protection rules follows a significant crisis in the crypto lending sector that unfolded during the bear market of 2022. Several crypto lending firms, which had collected billions of dollars in customer deposits by promising substantial returns, collapsed during this period. Prominent lending companies such as Celsius and BlockFi filed for bankruptcy, resulting in investors’ funds being trapped in lengthy bankruptcy proceedings.The Thai SEC’s proactive approach in implementing these regulations reflects the growing concern for investor welfare within the cryptocurrency industry. By requiring clearer risk disclosures and prohibiting the use of customer assets for lending and investment, the SEC aims to instill greater confidence and transparency in the digital asset service sector.Crypto academyThailand’s SEC has run other initiatives in efforts to better protect investors. In January the Commission launched the SEC Crypto Academy, an e-learning course. The objective of that initiative was to provide investors with a basic understanding of the digital assets space prior to investing. At the time of the launch of the course, the SEC said that “the more you know your investments, the less risk you will have.”These latest regulations not only serve as a protective measure for Thai investors but also set an example for other jurisdictions to evaluate and enhance their own regulatory frameworks. As the crypto industry continues to evolve, prioritizing investor protection becomes crucial in fostering a more sustainable and responsible ecosystem.

Binance APAC Head Urges the Korean FIU to Approve Gopax’s Exec ChangesIn a recent interview with Yonhap News, Leon Sing Foong, Binance’s head of Asia-Pacific operations, emphasized the importance of the Korean financial regulator approving the change of executives at Gopax, a Korean crypto exchange.©Pexels/freestocks.orgDelayed staked asset returnFoong’s comments came in the face of mounting worries regarding the delayed repayment of assets stored in Gopax’s staking service GOFi. He explained that 25% of the assets staked in GOFi have been repaid, and the remaining assets will be refunded after approval of the Financial Intelligence Unit (FIU) of the Korean Financial Services Commission (FSC) is secured.Foong was appointed as the new CEO of Gopax last February, with Binance becoming the largest shareholder of Gopax’s operator Streami. In March, Gopax submitted an application to the FIU to inform them of the executive changes, as required by Korean law.However, the application review has been delayed amid concerns about the unclear location of Binance’s headquarters and its regulatory challenges in the US.Controlling staking servicesThe Binance executive believes Gopax’s staking service should be controlled by the exchange itself, rather than a third party. The current GOFi issue emerged due to Gopax’s management of its custody assets through crypto lender Genesis, which ceased trading following the FTX bankruptcy. Foong stated that Binance will require Gopax to maintain reserves of over 100% and eventually phase out the third-party-based service.According to Foong, Gopax’s business model will remain unchanged, and the exchange will work alongside Binance to bolster liquidity within the local market while enhancing both infrastructure and security measures. He considers internal risk management as Gopax’s top priority.Risk assessmentFoong also expressed confidence in the upcoming risk assessment of Gopax by Jeonbuk Bank, recently requested by the Korean Financial Supervisory Service (FSS). He said that the exchange is healthy, and that Binance has high-level anti-money-laundering (AML) capabilities.Korean law mandates crypto exchanges supporting Korean won trading have real-name bank accounts, and Gopax receives such accounts from its partner Jeonbuk Bank.Binance’s Asian expansionBinance’s endeavor to enter the Korean market is part of its strategy to expand its presence in Asia. It was previously reported that Binance Japan will start its operations around June this year.