Layer 2 startup LightLink gets $4.5M backing

Terraform Money Trail Leads to Swiss BankAuthorities in both South Korea and the United States continue to advance their investigations into Terraform Labs, the Singapore-based company behind collapsed algorithmic stablecoin Terra USD (TUSD) and its South Korean CEO, Do Kwon, with the latest developments involving transfers made to a Swiss bank.©Pexels/Robert StokoeFollowing the moneyIn a lawsuit filed by the Securities and Exchange Commission (SEC) in the United States in February, the Commission claimed that Do Kwon and his company Terraform Labs transferred 10,000 Bitcoin to a Swiss bank. It now appears that the bank in question is digital asset banking specialist, Sygnum Bank.It’s understood that Do Kwon converted a large proportion of that Bitcoin into cash. According to Finbold, the Financial Securities Crime Joint Investigation Division at the Seoul Southern District Prosecutor’s Office has disclosed that it is following the digital asset trail to Switzerland in an effort to secure associated funds.LFG fundsThe funds are believed to have belonged to the LUNA Foundation Guard (LFG), an entity that was established with the objective of building reserves and safeguarding the USD peg of the Terra USD algorithmic stablecoin during volatile market conditions.Roughly 130 billion won, or $100 million, is being pursued, between digital assets and cash held within various Sygnum accounts. South Korean authorities had previously indicated that they were investigating transfers made by Do Kwon to a prominent Korean law firm. Earlier this week, they charged ten individuals connected to Terraform Labs with various offenses.During the press conference in which those charges were brought, the Seoul Southern District Prosecutor’s Office stated:”We have also confirmed that $100 million has been used in several places, not left in the Sygnum account as it is, and some transfers have been made to the Kim & Chang law firm account (at the attorney’s expense) and the remaining amount is about billions of won.”International complexityThis recent phase in the investigation is revealing the international nature of the case and the complexity that brings with it. Authorities in the United States and South Korea have submitted requests to have certain Sygnum Bank accounts frozen. Do Kwon and Terraform Labs are trying through the courts to have the SECs involvement dismissed on the basis that Terraform was a Singaporean company and Do Kwon a South Korean national, and on that basis they claim that the SEC lacks jurisdiction.Sygnum, being a Swiss entity will have to abide by what Swiss authorities instruct it to do relative to the Terraform-related funds held in accounts with the bank. Sygnum told Finbold that it couldn’t comment on whether it had received requests to freeze assets.The bank stated: “We can communicate that after the collapse of Terra in May 2022, on the basis of an official court order, Sygnum transferred more than 70% of the Bitcoin-sale FIAT proceeds into the escrow account of an international and to other reputable law firms.” It added that no Swiss or foreign authority has accused Sygnum of any wrongdoing.

Crypto.com Scores MPI License in SingaporeIn a significant move for the Web3 industry, the Monetary Authority of Singapore (MAS) has granted online crypto trading platform, Crypto.com, a Major Payment Institution (MPI) license. This regulatory development showcases Singapore’s commitment to welcoming innovation and embracing the potential of the Web3 sector.Photo by Timo Volz on PexelsLicensing milestoneCrypto.com made the exciting announcement on Thursday, revealing that it has received the MPI license from the MAS, the country’s central bank and financial regulator. With this license in hand, Crypto.com can now provide its Digital Payment Token (DPT) services to residents of Singapore.This achievement follows the in-principle approvals granted to Crypto.com by the MAS in June of the previous year, further highlighting the company’s adherence to regulatory standards and its dedication to operating within the guidelines set by financial authorities.Community reactionThe news of the license has garnered positive reactions within the crypto community. Many members see the Singaporean government’s decision as a significant endorsement of the Web3 industry. ‘Aravind,’ a Twitter user, expressed this sentiment, stating, “Singapore government giving out a license is itself a massive plus for the Web3 Industry,” adding that it's probable the process to obtain the license has been hard fought, and likely two years in the making.Interestingly, another community member drew comparisons between Crypto.com’s successes and the challenges faced by global crypto exchange, Binance. While Binance has encountered difficulties in various jurisdictions, Crypto.com has been praised for its steady progress and forward-looking approach.Yet another Twitter user chimed in along similar lines, stating: “Whilst Binance seems to be losing ground, Crypto.com seems to be slowly doing things right and building for the future.”Binance has recently faced setbacks, such as its diminishing presence in the Australian and Canadian markets and trading restrictions imposed in certain European countries. Reports have even surfaced suggesting that Binance plans to lay off 20% of its staff in June.However, it’s important to note that Binance has not given up, as evidenced by its recent expansion into Thailand, where it established a regulatory-compliant platform. The exchange has also taken steps to ensure compliance in Japan through the creation of another regulatory-compliant platform.Additional licensesCrypto.com has set up its headquarters in Singapore, and it is in good company there with leading crypto firms Kraken and Coinbase also maintaining offices in the city state. The company has taken a truly global strategy, having marketed heavily in recent years. It maintains offices in nine other locations, including Miami, Dublin, London, Seoul, Malta, Sofia, Hong Kong and Shenzhen, as well as Kadıköy in Turkey.The crypto trading platform has received a Minimal Viable Product (MVP) preparatory license from the Virtual Assets Regulatory Authority (VARA) in Dubai, alongside firms like Komainu, Hex Trust, and GC Exchange. The company has also successfully pursued digital asset licensing in France, Australia, and the United Kingdom.Crypto.com’s acquisition of the MPI license in Singapore marks a significant milestone for the company and the broader Web3 industry. With Singapore embracing innovation and offering a favorable regulatory environment, Crypto.com is well-positioned to continue its growth and contribute to the advancement of the digital payment token ecosystem.

In response to the expanding demand for cryptocurrencies in Indonesia, the government has laid down a directive, requiring crypto exchanges operating within the Southeast Asian country to register with the recently inaugurated Commodity Future Exchange (CFX).Photo by Bisma Mahendra on UnsplashMandatory requirementThe CFX was established back in July as the world's first national bourse exclusively dedicated to digital assets. The national exchange has been modeled to replicate exchanges in traditional markets like the NASDAQ, but in this case, focusing entirely on digital assets. Under regulations introduced in 2019 by the Indonesian Commodity Futures Trading Regulatory Agency (Bappebti), crypto exchanges in the country must seek authorization. Even exchanges operating legally since 2014 fall under the category of "prospective crypto exchanges" and must undergo a rigorous process to gain recognition as legitimate entities affiliated with the CFX. Safeguarding investorsThis regulatory initiative aims to create a secure environment for crypto investors while simultaneously serving as a platform for tracking digital asset transactions for taxation purposes. Beyond the regulatory oversight, registering with the CFX also acts as a gateway for the Indonesian government to monitor cryptocurrency transactions for taxation purposes. The authorization process involves registration with self-regulatory organizations (SROs) like the CFX, followed by scrutiny by Bappebti to assess the company's suitability to operate. Only after meeting all requirements can a crypto exchange be issued a crypto exchange license (PFAK). Failure to complete the new procedures and registrations within the specified timeframe, set for Aug. 17, 2024, will result in the inability to operate in Indonesia. Currently, there are 29 prospective crypto exchanges in Indonesia that must obtain authorization to continue their operations. Regulatory oversight change in 2025It is noteworthy that a significant regulatory overhaul in 2025 will shift the oversight of cryptocurrency regulation from Bappebti to Indonesia's Financial Services Authority (OJK). This change could potentially reclassify cryptocurrencies as securities, potentially impacting taxation. While crypto assets are currently subject to Value Added Tax (VAT) and Income Tax (PPh) as commodities, reclassification as securities may lead to a reduction in taxes. In late February, Didid Noordiatmoko, head of Bappebti, announced the nation's intention to launch its state-backed crypto exchange by mid-2023. The exchange will be operated by a private-sector company rather than the government, with private-sector crypto platforms executing trades on the exchange. Crypto adoptionThe surge in demand for cryptocurrencies in Indonesia is evidenced by official data from 2023, indicating that the number of registered crypto traders exceeds that of stock traders. Data published in October outlined that Indonesia has seen a 10.1% year-on-year increase in the number of crypto investors in the country, bringing that figure to 17.79 million citizens. The increase in interest in crypto among Indonesians has not been lost on the country’s politicians as crypto appears to have become an election issue. Gibran Rakabuming Raka, a vice-presidential candidate in the upcoming Indonesian election, expressed the aim to accelerate Indonesia's position as a leader in the digital revolution by cultivating expertise in blockchain and cryptocurrencies.