Liminal expands into Middle East via Abu Dhabi approval

KakaoBank to Conduct Routine Due Diligence on Crypto Exchange CoinoneKakaoBank, one of South Korea’s Internet-only banks, is set to conduct a routine due diligence examination on cryptocurrency exchange Coinone from May 8 to 9, according to crypto media Digital Asset.Photo by Markus Winkler on UnsplashThe mobile bank told Digital Asset that the forthcoming due diligence is unrelated to either the alleged illicit token listings involving former Coinone employees or the exchange’s sole relisting of the WEMIX token in February, which had been delisted from major Korean crypto exchanges due to questionable information about the token’s circulating supply.In Korea, crypto trading platforms supporting Korean won trading are legally obligated to obtain real-name bank accounts from a bank. Last August, KakaoBank signed a one-year contract with Coinone to provide such accounts to the exchange, and the bank will need to decide whether it will extend the contract before August this year.A Coinone official said that the exchange has not undergone any routine due diligence checks from KakaoBank since the contract was signed last year.The upcoming examination is expected to address concerns stemming from rumors that KakaoBank might reconsider its contract with Coinone in light of the bribery scandal that involved two former Coinone personnel and two brokers.

Klaytn Foundation Denies Embezzlement Allegations Involving KLAYThe Klaytn Foundation, the group behind virtual asset KLAY, has denied allegations against the former chairman of Kakao, the South Korean messaging app developer, as well as executives from its subsidiaries, according to local news outlet Digital Asset. These allegations accuse them of embezzlement involving the cryptocurrency.A formal complaint detailing these allegations was submitted on Wednesday by Economic Democracy 21, a civic group, to the joint crypto-crime investigation division of the Seoul Southern District Prosecutors’ Office.Photo by alleksana on PexelsKlaytn’s responseIn response, the Klaytn Foundation has characterized the allegations as arbitrary and unfounded. The foundation is taking the matter seriously and is planning to conduct a comprehensive fact-check to actively address the claims.Civic group’s claimsEconomic Democracy 21 contends that select insiders at Kakao and its subsidiaries have illicitly accumulated hundreds of billions of Korean won. According to the group, this was done by converting KLAY tokens into cash under the pretense of investment and compensation.Ongoing commitmentIn the midst of this legal dispute, the Klaytn Foundation reaffirmed Klaytn’s steadfast dedication to advancing its scheduled initiatives in collaboration with its ecosystem partners.

With Kazakhstan having recently indicated that it would create a national crypto reserve, the administrators of Kazakhstan’s existing sovereign fund now want to invest in crypto assets as well. According to a report published by Kursiv, a business media outlet covering Central Asia, the Kazakhstani authorities are planning to invest a portion of the country’s existing gold and foreign exchange reserves in crypto assets. The publication outlined that this was conveyed by Timur Suleimenov, governor of the National Bank of Kazakhstan, in a recent press conference. Photo by ANSAR ARCHITECTS on UnsplashFollowing an international investment trendHe stated that the country has a portfolio of alternative investments, which includes gold and foreign exchange reserves. Within that particular portfolio, more aggressive investment strategies are pursued in an effort to generate higher investment returns. He added: “We looked at the experience of the Norwegian fund, the American experience, and the experience of Middle East funds. They have certain investments in either crypto assets directly, or in ETFs and shares of companies that are closely related to crypto assets. They are very small.” In 2024, it emerged that Norway’s sovereign wealth fund had indirect exposure to 2,446 Bitcoin. By January of this year, the sovereign fund had increased its indirect exposure further through an investment in pioneering American Bitcoin treasury firm Strategy (formerly MicroStrategy). In the Middle East, the Abu Dhabi Investment Authority (ADIA), which manages the Abu Dhabi sovereign wealth fund, has been exposing the fund to Bitcoin indirectly through investments in BlackRock’s spot Bitcoin exchange-traded fund (ETF), IBIT. Considering asset volatilityWhile moving towards a crypto investment within the alternative investments portfolio, Suleimenov struck a cautious note, stating: “This is not an easy question, so there is no need to rush here. Yes, such assets can bring high returns, but at the same time they are characterized by high volatility.” This latest development in Kazakhstan coincides with the release of a report by German multinational investment bank, Deutsche Bank. The research report has found that Bitcoin has reached a new all-time-high unit price amid a dramatic drop in the volatility of the leading digital asset when compared with times past.  The bank explained that this was a sign of a maturing market, while suggesting that Bitcoin’s volatility is likely to decline further as adoption grows. Reduced volatility is making crypto assets like Bitcoin more appealing to long-term capital allocators like sovereign wealth funds and pension funds. In an interview with Bloomberg back in May, Mike Novogratz, founder and CEO of American digital assets firm Galaxy Digital, said that he has had conversations with heads of large sovereign wealth funds that have said “if America is buying Bitcoin, we’re buying Bitcoin.”In March, U.S. President Donald Trump issued an executive order setting out the establishment of a strategic Bitcoin reserve in the United States. In moving to establish a crypto reserve in Kazakhstan recently, Suleimenov suggested that international practice demonstrates that such a reserve may include confiscated crypto-assets, with Kazakhstan planning to proceed with the formation of the reserve on that basis.