India’s FIU moves to block overseas exchanges

India’s HPCL Embraces Blockchain Tech to Streamline Purchase OrdersHindustan Petroleum Corporation Limited (HPCL) has forged a partnership with Zupple Labs, an Indian Web3 startup, to upgrade its purchase order processes through blockchain.Photo by Zbynek Burival on UnsplashTamper-proof documentationAccording to local media publication Business Today, the collaboration leverages blockchain technology to issue tamper-proof digital purchase orders via LegitDoc, ensuring instant verification on the NEAR blockchain. The move is a significant step toward enhancing transparency and efficiency in the purchase order system, addressing long-standing challenges in the industry.Notably, HPCL has awarded purchase orders worth $52 billion in the past five years, making these orders economically significant. Until now, automating purchase order verification for third-party requests outside of HPCL proved to be particularly challenging, resulting in substantial manual labor to process external verification requests.With the implementation of LegitDoc, historically fraud-prone purchase orders can be seamlessly issued to the relevant stakeholders. This breakthrough empowers participants to verify the authenticity of these orders with a simple click, reducing the risk of forgery and expediting the verification process.HPCL’s use of blockchain technology in partnership with Zupple Labs serves multiple purposes. It aims to combat purchase order forgery, simplify vendor access to trade finance through collateralization, and provide evidence of turnover, ultimately facilitating participation in public procurement processes. The facility will soon be accessible to both the public and vendors, with the launch set for October.Neil Martis, the founder of LegitDoc, expressed his enthusiasm about HPCL’s adoption of their technology. He noted:“It’s exciting to see an oil conglomerate such as HPCL use our technology LegitDoc, to secure billions of dollars’ worth of purchase orders. This serves as a testament to the confidence that businesses and governments have placed in our blockchain platform over the years in protecting important documents.”Utilizing two blockchainsThe approach taken in this instance relies on the use of two parallel blockchains which act as settlement layers: the NEAR public blockchain and permissioned private blockchain Hyperledger Fabric. As of mid-October, 3,000 purchase orders had been issued using blockchain.HPCL’s move to digitize and secure its purchase order system not only benefits the corporation but also has industry-wide implications. By promoting digital automation and trust, it sets a precedent for transparency and efficiency in the oil and gas sector. This adoption of blockchain technology aligns with a global trend of enhancing digital trust and streamlining operations across various sectors.Further application of blockchain techIt’s worth noting that this isn’t the first instance of Zupple Labs’ blockchain technology-based solutions being employed by the government in India. LegitDoc has previously been adopted by the administration of Gadchiroli, Maharashtra, for issuing tribal caste certificates in 2022, in that instance by way of the Polygon blockchain.Moreover, the technology played a pivotal role in issuing COVID-19 vaccine certificates in Maharashtra in 2021, while over 100,000 degree certificates were issued in 2022. These instances underscore the versatility and growing acceptance of blockchain technology in modern governance and business processes.

Korean Crypto Exchange Alliance Launches Its Official WebsiteThe Digital Asset eXchange Alliance (DAXA), which comprises South Korea’s five major cryptocurrency exchanges Gopax, Bithumb, Upbit, Korbit, and Coinone, announced the launch of its official website on Tuesday.Photo by Markus Winkler on PexelsWebsite structure and featuresThe website has three primary sections: Introduction, News, and Archives. The Introduction section provides comprehensive information about the exchange, including a greeting from Chairman Lee Sirgoo, who also serves as the CEO of Upbit’s operator Dunamu. It also presents an organizational structure, details of the corporate identity, and links to each individual exchange.The News section provides users with announcements, press releases, and event information. Meanwhile, the Archives section houses educational videos, institutional reports, and a list of important statutes and regulations.Mitigating information disparityDAXA Vice Chairman Kim Jae-jin said the website would offer easy access to information concerning digital assets and the alliance’s self-regulatory measures. She mentioned the group’s commitment to investor protection, focusing on addressing information asymmetry.In addition to the website, DAXA runs a Youtube channel, with its first video uploaded in January of this year.Controversy surrounding the allianceEarlier this year, DAXA faced backlash after it implemented a new clause in its guidelines, which disallowed the re-listing of cryptocurrencies that had been removed from its member exchanges for a period of one year. Critics claimed that DAXA’s guideline was unclear and voiced concerns about the Alliance’s growing influence in the crypto sector. These worries are amplified by the fact that the member exchanges of DAXA command 98% of the crypto trading volume in Korea.

Top Korean Crypto Exchanges Witness Surge in Listings and Delistings During H1In the first half of this year, South Korea’s top five cryptocurrency exchanges experienced notable growth in the number of newly added cryptocurrencies to their platforms. However, they also observed a significant surge in the number of cryptocurrencies being delisted.Photo by Shubham Dhage on UnsplashDelisting and listingAccording to a report by local news outlet Etoday, the nation’s five leading exchanges Upbit, Bithumb, Coinone, Korbit, and Gopax ceased trading for a total of 51 cryptocurrencies during the first six months of this year. This marked an 88% increase compared to the 27 cryptocurrencies delisted in the previous six-month period. During the first half of last year, the number of delisted tokens was 48.Among the five exchanges, Coinone took the lead by delisting the highest number of cryptocurrencies, totaling 24. Bithumb followed with 14 delisted tokens, Gopax with six, Upbit with five, and Korbit with two. Notably, Coinone continued its delisting spree this month, removing an additional five cryptocurrencies from its platform. Most cryptos were delisted because their projects and services were not operating normally.The significant number of delisted tokens at Coinone appears to be linked to the involvement of its former employees in the unlawful listing of certain tokens. These individuals reportedly received bribes in exchange for listing a total of 46 cryptocurrencies on the trading platform. Among these tokens were PICA and PURE, which are no longer traded on the exchange.Only five cryptocurrencies were delisted according to the decision made by the Digital Asset eXchange Alliance (DAXA), a self-regulatory group consisting of the aforementioned five crypto exchanges. The delisted tokens were REP, BASIC, OMG, SRM, and PCI. This indicates that most of the affected cryptocurrencies were exclusively traded on one of the DAXA member exchanges, indicating that DAXA’s listing and delisting guidelines were largely ineffective.Meanwhile, there has been a notable surge in the number of newly added cryptocurrencies. Bithumb, for instance, took the lead by listing an impressive 63 new tokens, nearly three times the number listed by Upbit (22). In the same vein, Coinone added 14 tokens, while Korbit and Gopax followed with six and three new listings, respectively.Profit squeezeLast year, crypto trading platforms adopted a conservative approach when it came to listing and delisting procedures, prioritizing investor protection. However, their stance shifted as the global crypto market encountered a significant decline in trading volume amid crypto winter. This decrease in trading activity subsequently led to reduced operating profits, compelling the platforms to list more cryptocurrencies.With the exception of Upbit, which maintains a dominant market share in the nation, the outlook on crypto exchanges appears more or less grim. In particular, Coinone, Korbit, and Gopax are in the red. Bithumb, while still in profit, saw its operating profit last year falling 80% year-over-year to 163.5 billion KRW ($127.9 million). This trend continued this year, with Bithumb’s operating profit In the first quarter of this year recording 16.2 billion KRW, an 80% decrease compared to the same period last year.In light of this development, an industry insider, who wished to stay anonymous, told Etoday that while the market’s total trading volume is witnessing a considerable decline, Upbit’s dominance is still growing. This individual also noted that the decrease in trading volume and the resulting deficit are exerting pressure on exchanges to expand their cryptocurrency listings.