eToro, M2 secure licenses bolstering UAE crypto development

Seoul prosecutors charge eight suspects linked to crypto price manipulationEight individuals involved in a cryptocurrency fraud, which is separate from a murder case associated with the same token, have been formally charged and referred to court by public prosecutors in South Korea.The Joint Virtual Asset Crime Investigation Unit of the Seoul Southern Prosecutors’ Office has recently disclosed the arrest of two key figures in the scandal related to a cryptocurrency called Puriever (PURE). The unit apprehended the chief executive of the PURE issuer, referred to as “A” for anonymity, and a market manipulator. Both have been charged with fraud. In addition to these arrests, the prosecution has charged six other individuals–including an executive from a cryptocurrency consulting firm, anonymously named “C,” and a broker. These additional suspects have been charged but not arrested.Photo by Adam Śmigielski on Unsplash$16 million from over 6,000 victimsThe prosecution has accused the suspects involved in the PURE case of illicitly inflating the token’s price through deceptive disclosures and market manipulation during April and May 2021. This scheme reportedly enabled them to amass illegal profits totaling KRW 21 billion (close to $16 million) from approximately 6,100 victims. In March of this year, it came to light that the PURE was at the center of a series of criminal activities, including kidnapping and theft, which ultimately led to a murder in Gangnam, Seoul.The prosecution has uncovered that “A” and “C,” key figures in the PURE scandal, transferred 55.2 million PURE to a partner company under the guise of an initiative to reduce air pollution, as falsely stated in their disclosure. The suspects reportedly employed a skilled manipulator to inflate the token’s price artificially. Once the price peaked, they sold off the tokens, capitalizing on the artificially inflated value.Circulation supply manipulationThe case reveals a collective scheme orchestrated by a token issuer, a consulting entity, a broker, and an experienced market manipulator. A key tactic in their scheme involved locking their cryptocurrency wallet to artificially limit the token’s circulation supply. Furthermore, these fraudsters employed a bot to perform wash trading, which boosted the daily trading volume of the token. This strategy created a false impression of high demand and activity in the market.A representative from the prosecution emphasized that the cryptocurrency market is more susceptible to manipulation than the stock market. This vulnerability is attributed to the lack of a monitoring and supervision system in the crypto sector, despite its speculative nature. In response to these challenges, the prosecution has expressed a firm commitment to enhancing its crypto investigation capabilities with the goal of effectively combating criminal activities. These efforts are aimed at fostering a fair and transparent trading environment, safeguarding the integrity of the cryptocurrency market.

Huobi Anticipates Break-Even in Q3 Following Consecutive LossesCryptocurrency exchange Huobi, under the guidance of its advisor and Tron Founder Justin Sun, has reported losses over consecutive recent quarters and is now eyeing a break-even point in the current quarter.Photo by Brands&People on UnsplashThree quarters of lossesIn a tweet posted by Sun on Tuesday, the Tron Founder revealed that Huobi hadn’t registered a profit from the third quarter of 2022 through the second quarter of this year. While exact loss figures were not disclosed, Sun attributed these financial challenges to excessive spending on marketing, advertising, and employee salaries. Notably, Huobi has since reined in these expenses, positioning itself for a potential return to profitability by the fourth quarter.Looking at the overall financial performance of Sun’s crypto entities, Huobi and Tron, the group appears to be on an upward trajectory. Sun’s tweet indicated a combined profit of $85 million, derived from $193 million in revenues and $108 million in expenses.Notably, the Q2 profit saw a substantial increase of 183% compared to the $30 million profit in Q1. Sun’s projections suggest that Q3 could see revenue reach $200 million, expenses remain at $100 million, resulting in a projected profit of $100 million for the quarter.Improved financial outlookSun highlighted on Twitter Huobi’s improved financial outlook, projecting a break-even status for Q3 and a modest profit for Q4 based on conservative estimates. Earlier in the year, Huobi implemented a 20% reduction in its workforce as a response to the cryptocurrency market’s bearish trends.Established in 2013, Huobi had maintained consistent profitability until the last few quarters, according to Sun. He clarified that despite reports linking him as the core investor through the M&A fund that acquired a stake in Huobi, he is merely an advisor to the exchange.Exchange business challengesHuobi’s struggles and subsequent efforts to regain financial stability mirror the broader landscape of cryptocurrency exchanges navigating a volatile market. No major exchange has been unaffected by a challenging business and regulatory environment over the past year.US exchange Coinbase is in a legal battle with the Securities and Exchange Commission (SEC) in the United States. A report by Semafor on Wednesday suggests that the US Department of Justice is planning on bringing fraud charges against Binance, who is already fighting an action taken by the SEC. Binance has also been forced out of key four important European markets over the course of the past three months.Meanwhile, it has been claimed that KuCoin has been executing a layoff plan, something the company itself denies. In March, the company faced an action brought by the New York Attorney General on the basis of a failure to register as a securities and commodities broker-dealer.Huobi’s difficulties serve as a testament to the challenges and opportunities presented to all of the major international cryptocurrency exchange businesses.The company’s recent financial trajectory, marked by consecutive losses, has caught the attention of the industry. Justin Sun remains one of crypto’s most controversial figures, but with his guidance, the exchange will be working towards rebounding and returning to profitability in the coming quarters.

Standard Chartered Muscling Into Asian Crypto SpaceUK banking giant Standard Chartered is making a concerted foray into the Asian crypto sector through its Singapore-based subsidiary, Standard Chartered Ventures.Photo by Kirill Petropavlov on UnsplashTargeting institutional businessThat’s according to a report by Nikkei Asia on Tuesday. It’s believed that the company is positioning itself as a trusted choice for institutional cryptocurrency clients amid the backdrop of digital token price volatility and recent upheavals in the industry. The move will pit the British bank directly against global crypto exchange Binance in key Asian markets, specifically Singapore and Japan.Rene Michau, the Global Head of Digital Assets at Standard Chartered, emphasized what he considers to be the bank’s unique advantage in the digital asset space, stating:“As regulated banks, we have a fairly deep infrastructure around risk, conduct compliance, and the activities that go along with crypto assets.”This solid infrastructure includes established risk frameworks, governance structures, and compliance tools that Standard Chartered is keen to bring into the cryptocurrency sphere, thus making it an attractive option for its clients.Zodia Custody and Zodia MarketsStandard Chartered’s substantial involvement in the cryptocurrency market is channeled through its majority ownership of Zodia Custody, responsible for safeguarding digital assets, and Zodia Markets, a crypto exchange tailored for institutional clients.Both entities have been making significant progress in bringing their offerings to market in recent months. Zodia Custody recently launched its services in Singapore, offering a secure solution for financial institutions to manage their crypto holdings. Last month it launched a crypto staking product targeted at institutional clients.In the same month, Zodia Markets achieved in-principle approval to trade as a broker-dealer in the United Arab Emirates. Zodia Custody has also been successful in the UAE, launching its crypto custodian service in Dubai in May.Japan and SingaporeThis concerted effort by Standard Chartered follows a broader trend where traditional financial institutions, such as DBS Group Holdings in Singapore, are entering the cryptocurrency market, capitalizing on the challenges faced by younger crypto players in proving their credibility.Binance rebranded its Binance Custody unit as Ceffu and expanded its offerings for corporate customers in Singapore. While Binance asserts the independence of Ceffu, the exact nature of their capital relationship remains undisclosed.A parallel competition is unfolding in Japan, where Binance Japan has entered the market and Standard Chartered’s Zodia Custody has formed a joint venture with SBI Digital Asset Holdings, targeting institutional clients.While Standard Chartered has achieved a lot through its crypto-focused subsidiaries in a short space of time, there’s always room for improvement. In June, Hong Kong’s banking regulator singled out Standard Chartered alongside HSBC, appealing to both banking groups to make greater efforts to bank crypto clients within the Chinese autonomous territory, as it looks to compete with Singapore in becoming a regional crypto hub.The cryptocurrency sector has witnessed increased scrutiny as virtual currencies like Bitcoin and Ether have gained popularity. The rise of digital token exchanges, each vying for custody of assets belonging to investors who have embraced cryptocurrencies, has sparked concerns about corporate governance and security.Giants in traditional finance, like Standard Chartered, are stepping in to offer institutional investors a safer path to engage with virtual assets while leveraging the trust associated with established brands.