Fingerlabs teams up with OGN to create Web3 content

Dubai's regulator, the Virtual Asset Regulatory Authority (VARA), has been ahead of the curve by comparison with its peers internationally in getting a crypto regulatory framework in place, and now it's moving to tweak those regulations further. In a press release published via ZAWYA on Sept. 26, VARA announced an update to its crypto regulations which specifically deals with marketing. Its addition of “Marketing Regulations for Virtual Assets and Related Activities 2024” applies to virtual asset service providers (VASPs) operating within the Emirate of Dubai. In tandem with the updated regulations, VARA has published a marketing guidance document to assist VASPs in abiding by the regulations, providing detailed instructions and outlining best practices in terms of the application of appropriate marketing activities. Photo by ZQ Lee on UnsplashMandatory disclaimerOne of the new requirements demanded by the regulator is that marketing content related to digital assets should incorporate a disclaimer outlining to investors that there are financial risks associated with digital assets. To that end, from October 1 onwards, VASPs are required to add the following disclaimer, prominently displayed, within product marketing material: “Virtual assets may lose their value in full or in part and are subject to extreme volatility.” In its guidance documentation, VARA has stipulated that any content which contains contradictory messaging or information provided to users in “small print” is not deemed to be acceptable. The rules apply to both licensed entities and any unlicensed entities that attempt to offer a service within the Emirate of Dubai.  Consumer protectionThe motivation behind the regulatory update is the protection of consumers through the prevention of the dissemination of misleading information. The regulator wants consumers to be well-informed about crypto products, such that they’re aware of both the risks and opportunities associated with digital assets. VARA has set out a schedule of fines, broken down by category, with fines of up to 10 million United Arab Emirates (UAE) dirhams (AED), around $2.7 million, applying for those who do not comply. Commenting on the updated regulations, VARA CEO Matthew White stated: “Our updated marketing regulations and the newly issued guidance document reflect our commitment to maintaining Dubai’s position as a global leader in digital finance. We believe that by providing clear and actionable guidance, we can help VASPs deliver their services responsibly, while fostering greater trust and transparency in the market." The Dubai regulator isn’t the only one to home in on the marketing approach taken by crypto service providers. Since October 2023, the UK Financial Conduct Authority (FCA) has implemented new rules which specifically deal with the marketing of crypto products and services. Many crypto platforms found the new requirements too arduous to follow. Some withdrew from the market while others did so on a temporary basis while working towards becoming compliant. Within the European Union, the Markets in Crypto Assets (MiCA) regulation came into force in June 2023. Those regulations demand that crypto service providers provide information and conduct marketing activities in a clear, fair and non-misleading manner.

Binance Thriving in China Despite Crypto BanWhen China cracked down on cryptocurrency trading in 2021, it seemed like Binance, the world’s largest crypto exchange, would have to leave the country behind. However, nearly two years later, an investigative report carried out by the Wall Street Journal finds that business is thriving for Binance in China.Photo by Hanson Lu on Unsplash$90 billion in monthly tradingThe report, which was published on Wednesday, reveals that users managed to trade a staggering $90 billion worth of cryptocurrency-related assets in China within just one month.Internal data, shared with The Wall Street Journal and corroborated by current and former employees, unveils this underground activity. Remarkably, these transactions propelled China to become Binance’s largest market, accounting for a massive 20% of global trading volume, excluding trades by a subset of major traders.Almost one million active Chinese usersDespite the supposed ban, Binance’s internal discussions highlight the pivotal role China still plays for the exchange. Current and former employees indicate that Binance’s investigations team collaborates closely with Chinese law enforcement. This partnership aims to identify potential criminal activities among the 900,000+ active users in China, underscoring Binance’s efforts to maintain oversight.However, Binance now faces regulatory challenges tied to its secretive global operations. In June, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its Founder, Changpeng Zhao (CZ), alleging illegal operations and misuse of customer funds.Meanwhile, the Justice Department is conducting its own investigation. A report by Semafor on Wednesday suggests that authorities are considering fraud charges but they’re concerned that such an eventuality may lead to a run on the exchange. This regulatory onslaught has seen Binance’s market share among US users plummet, leading to a reduction of over 1,000 jobs out of its 8,000-strong workforce.Circumventing regulationThe clandestine existence of Binance’s footprint in China offers insights into the exchange’s ability to function surreptitiously in unwelcoming environments. To circumvent restrictions, Binance directed Chinese users to visit local websites with domain names before rerouting them to the global exchange. This tactic allowed Binance to keep a foothold in China, even after the government blocked direct access to its website in 2017.China’s central bank, responsible for imposing the crypto ban, remained silent when questioned about these developments. Binance’s official stance is that its website is blocked in China and inaccessible to users there.Holding on to its China-based users is crucial for Binance as it navigates a treacherous regulatory landscape that threatens its future. The company’s history with China is intricate. CZ established the firm in Shanghai in 2017, only for the government to initiate a series of regulatory attacks on crypto exchanges soon after. This led to concerns about money being illicitly moved out of the country, and Zhao eventually relocated Binance’s operations to Japan.Despite this move, Binance retained a significant workforce in China, a decision that raised concerns among its US arm regarding data control. Binance’s Chinese heritage also attracted attention, with Zhao addressing the company’s challenge of being labeled both a “criminal entity” in China and a “Chinese company” in the West.Binance’s relationship with China remains complex. As the exchange navigates these murky waters, its ability to operate under the radar and maintain its foothold in markets like China will undoubtedly play a significant role in determining its future trajectory.

Nexon Korea Intensifies its Blockchain Focus with Nexon UniverseSouth Korean gaming giant Nexon Korea is moving its dedicated blockchain division to its recently renamed subsidiary, Nexon Universe. According to local news outlet Newsis, this subsidiary, initially known as Nexon Block and founded last year, will welcome approximately 80 employees from the parent company’s blockchain group. The leader at the helm of Nexon Universe will be Kang Dae-hyun, who serves as the Chief Operating Officer (COO) at Nexon Korea.Photo by Shubham Dhage on UnsplashNFT-powered MapleStory UniverseNexon Korea’s blockchain division has so far been overseeing the MapleStory Universe project, an NFT-powered ecosystem that utilizes MapleStory’s intellectual property.The objective of MapleStory Universe is to establish an environment that facilitates the seamless movement of NFTs, which represent in-game characters and items, throughout its ecosystem. Beyond this, the project is dedicated to forging connections with other NFT initiatives, aiming to become part of the broader global blockchain community.In August of last year, COO Kang participated in a blockchain conference to highlight Nexon’s ongoing transformative endeavors. The transition of offline games to online platforms marked Nexon’s first evolution, while the second ambition revolves around the expansion of its gaming ecosystem using the capabilities of Web3, Kang said.Turning in-game items into NFTsAmong these strategic moves is the development of MapleStory N, the first game within the MapleStory Universe. This desktop-based MMORPG is currently under development and incorporates blockchain technology. MapleStory N will allow gamers to earn items during gameplay, which can subsequently be transformed into NFTs. The fees collected from in-game economic interactions will be distributed as rewards to both contributors within the MapleStory Universe ecosystem and Nexon.Nexon’s blockchain collaborationsAs part of the MapleStory Universe creation, Nexon joined hands with Ethereum scaling blockchain protocol Polygon. In particular, Nexon employs a Polygon Supernet, which empowers developers to tailor a blockchain to suit their gaming requirements.Furthermore, Nexon made its entry into the realm of Japanese gaming blockchain Oasys in April, acting as a validator. Oasys, established in February of last year, aims to popularize play-to-earn (P2E) games. Notable validators include Bandai Namco Research, Sega, Ubisoft, Yield Guild Games, KDDI, and Softbank.Adding to its array of collaborations, Nexon forged a memorandum of understanding (MOU) with blockchain wallet company Haechi Labs in May, within the context of the MapleStory Universe undertaking. Nexon Korea’s strategy includes leveraging Haechi’s “face wallet,” which simplifies the process of establishing and overseeing blockchain wallets for users. This is expected to offer a seamless and user-friendly experience for newcomers to the field.