Mt. Gox edging closer to BTC payouts sparks market fears

Phoenix Group strikes $380M deal with MicroBTPhoenix Group, a Dubai-headquartered Bitcoin (BTC) mining company, has sealed a $380 million deal with Chinese mining equipment manufacturer, MicroBT.The deal comes just days after Phoenix’s stock made its debut on the Abu Dhabi Securities Exchange (ADX). The miner announced on Thursday that it would promptly receive mining equipment valued at $136 million, with an additional option for equipment worth $246 million.Phoenix asserts that this transaction stands as the most substantial order for MicroBT’s Whatsminer equipment in the past two years. Whatsminer is a brand of mining hardware and chip design which has been developed by MicroBT.Photo by Traxer on UnsplashGreen mining equipmentAs outlined in a press release published by the company, the Middle East-based miner is taking a step towards sustainability by incorporating hydro-cooling miners, a collaborative effort with MicroBT aimed at establishing world-class high-performance computing (HPC) data centers. The move highlights Phoenix Group’s interest in pursuing eco-friendly crypto-mining practices, something that will help to position the company as a leader in furthering efficient and responsible mining solutions.Munaf Ali, co-founder of Phoenix Group, emphasized the significance of partnering with MicroBT and advancing hydro-cooling technologies in achieving the company’s vision for sustainable and innovative mining operations. Ali stated:“Our partnership with Whatsminer and the development of hydro cooling technologies are key components of our vision for sustainable and innovative mining operations. These advancements are not only a leap in our technological capabilities but also align with our commitment to environmental responsibility.”While Phoenix did not disclose further specifics about the type of mining machines it is acquiring, the move signifies a broader trend among mining companies making substantial investments in cutting-edge hardware. Texas-based Bitcoin miner Riot Platforms recently spent $290 million to acquire over 66,000 mining machines from MicroBT.GCC distribution agreementPhoenix has an ongoing business relationship with MicroBT. In November 2022 the firm signed a deal with MicroBT that enabled it to act as a distributor of MicroBT’s Whatsminer brand of mining equipment. Under the terms of that partnership, Phoenix distributes Whatsminer products across Gulf Cooperation Council (GCC) countries such as the United Arab Emirates (UAE), Oman, Saudi Arabia, Bahrain, Qatar and Oman.Phoenix Group’s recent accomplishments extend beyond hardware acquisitions. Following its historic debut on the ADX on Tuesday, where it raised $370 million from its initial public offering in November, the company has experienced positive market performance.Data from ADX’s website reveals that Phoenix Group’s stock has propelled its market capitalization to over $4 billion (15.1 billion AED) within the first two days of trading. The initial public offering (IPO) price of 1.50 dirhams had been set earlier this week. Immediately, the shares increased by 50% to 2.25 dirhams.Bijan Alizadehfard, co-founder and group CEO of Phoenix Group, expressed the company’s success on the ADX as a catalyst for forging significant partnerships with major mining firms like MicroBT. Alizadehfard highlighted that the listing has bolstered the company’s capabilities in the blockchain and cryptocurrency sector, contributing to its ongoing advancements in the industry.

SK C&C Issues Voluntary Carbon Offsets on Blockchain-Based Credit PlatformSK C&C, the information communications technology arm of South Korean conglomerate SK Group, said last Thursday that it has issued a total of 186,595 carbon offset credits through 19 projects on the blockchain-based carbon reduction certification and credit trading platform Centero.Amidst the ever-growing challenge of climate change, industries and companies around the world are attempting to reduce their carbon output and reach net zero emissions through involvement in carbon finance — specifically, carbon credit markets.Photo by Jas Min on UnsplashUnderstanding carbon marketsThere are two types of carbon markets — the compliance market, which uses a cap-and-trade system, consists of governments and companies that are legally mandated to offset their carbon emissions. On the other hand, the voluntary carbon market (VCM) operates outside of mandatory frameworks and uses a project-based system to allow companies, organizations, and individuals to trade carbon offset credits voluntarily. Each of these carbon offset credits represents the reduction of one metric tonne of carbon dioxide or greenhouse gas (GHG) emissions. Participants in the voluntary market are mainly driven by their corporate social responsibilities, shareholder pressure, or PR motives.Revolutionizing voluntary carbon reductionCentero — short for Center of Net Zero — provides a one-stop registry service that enables monitoring, reporting, and verification of greenhouse gas reduction projects in the VCM, and issues certified carbon reduction credits to support credit transactions with companies that are pursuing net zero goals. It was developed by SK C&C and is currently operated by the KCCI Center for Carbon Reduction Certification according to the KCCI Carbon Standard, which evaluates and certifies carbon reduction efforts.Centero takes care of the entire process of voluntary carbon reduction projects, from preparation to registration and execution, credit certification, and credit distribution. Its advantage also lies in its transparent management of carbon reduction projects and resources that reflect global regulations and standards, from organizing project information to keeping records of carbon reduction credits. Companies can also buy and sell credits on Centero’s intermediary carbon credit marketplace.Voluntary carbon reduction projects span a vast range of industries, from manufacturing and chemicals to information technology (IT) and construction. Current ongoing projects include carbon capture and waste management initiatives.Notably, Centero manages all credit information and transactions using blockchain technology. It makes all relevant information accessible to companies — including information about certifiers, verification, and quantity of issued credits — thereby increasing security and transparency in transactions. Credit-related events, such as the transfer of ownership, are also managed through blockchain processes.Through its most recent achievement, Centero has demonstrated a total carbon reduction effect of 186,595 tonnes.“The mandatory market has limited corporate participation, resulting in insufficient trading volume and difficulties in handling the demand for carbon emission rights due to the strengthening of global GHG emission regulations. Through Centero, we will encourage participation from local companies and organizations in voluntary carbon reduction projects and help accelerate a privately-led voluntary carbon market,” said Bang Soo-in, Head of SK C&C’s Digital ESG Group.

Liminal, a Singapore-based digital asset custodian, has gained regulatory approval in Abu Dhabi, as part of a series of recent steps the company has taken to expand across Asia and the Middle East. Extending digital asset custody to the Middle EastTaking to the X social media platform on May 13, the company outlined that its First Answer Middle East subsidiary received Financial Services Permission (FSP) from the Abu Dhabi Global Market's (ADGM) Financial Services Regulatory Authority (FSRA) on May 9. The approval allows the firm to provide digital asset custody in the region. Liminal had initially been granted in-principle approval last year. In a series of posts, the company outlined that it sees Abu Dhabi’s regulatory framework in respect of digital assets as forward-thinking. It drew particular attention to the work of the FSRA in developing a robust framework to enable institutions to enter the digital assets space.Photo by Sohail Sarwar on UnsplashGame changerOn the actual license approval itself, the company stated, “The FSP license allows Liminal to hold, manage, and safeguard digital assets on behalf of institutions, hedge funds, venture capitalists and professional clients. This is a game-changer for digital asset custody practices in the region.” Further regional expansionOver the course of recent months, Liminal has scored a number of regulatory successes within the Asia Pacific (APAC) and Middle East and North Africa (MENA) regions. Its success within the United Arab Emirates (UAE) has not been confined to Abu Dhabi. In April, First Answer Custody FZE, a Dubai-based subsidiary company, secured initial approval from the emirate's regulator, the Virtual Asset Regulatory Authority (VARA).  Meanwhile, Liminal's Indian subsidiary, First Answer India Technologies, has been established and registered as a reporting entity. As a consequence, it has become the first digital asset custodian registered with India’s Financial Intelligence Unit (FIU), an organization that falls under the umbrella of the Department of Revenue, and  which collects financial intelligence relative to money laundering.  Making further in-roads within the world’s most populous country in November, India’s Central Bureau of Investigation (CBI) appointed the firm with a mandate to manage seized digital assets. Liminal has ties with India insofar as it was founded by Mahin Gupta in 2021, the co-founder of crypto exchange ZebPay. In an interview with CoinDesk, Manan Vora, senior vice president of strategy and business operations at Liminal stated:"We initiated a strategic drive two years ago to secure regulatory licenses in key markets across APAC and EMEA (Europe, Middle East and Africa), strategically positioning ourselves to cater to institutional clients.” Vora added: "Our strategic vision is to expand from our present technology presence in Europe and Taiwan to pushing for regulatory victories there. In Indonesia, we are already working as a technology provider for the nation's sovereign digital asset exchange." Within its home market of Singapore, Liminal was grandfathered into a new licensing system that the city-state introduced recently in respect of digital asset custody as a consequence of already having been a provider of such services in Singapore. The company has been given a grace period of six months. Within that timeframe, it intends to submit an application to local regulator, the Monetary Authority of Singapore.