Gate.HK ceases operations and withdraws license application in Hong Kong

Thailand Pushes Back Against Facebook-Enabled Crypto ScamsThai authorities are contemplating serious action against social media giant Meta (formerly Facebook), as Thailand battles against fraudulent cryptocurrency schemes and misleading investment advertisements propagated through Facebook, given a rise in the occurrence of such scams.Photo by Dan Freeman on Unsplash200,000 victimsThe Ministry of Digital Economy and Society (MDES) in Thailand has revealed that over 200,000 individuals in the country have fallen victim to fraudulent Facebook advertisements, which tout promises of massive returns through crypto-related investments and other financial opportunities. These deceitful ads have preyed on unsuspecting users, leading to growing concerns about online safety and consumer protection.The fraudulent adverts often make outrageous claims, guaranteeing daily profits as high as 30%. To add credibility, scammers even resort to using images of celebrities and renowned figures from the financial industry as fabricated endorsements. Some ads have gone to the extent of replicating the logos and symbols of the Thailand Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand to establish an appearance of legitimacy.Inadequate responseChaiwut Thanakamanusorn, Minister of MDES, acknowledged that the ministry has engaged in discussions with Facebook regarding the alarming prevalence of these fraudulent ads on its platform.Thanakamanusorn stated: “In the past, the ministry talked to Facebook all the time, but did not screen advertisers, causing damage to Thai people of more than 100,000 million baht.” Despite sending a letter to the platform requesting the removal of more than 5,301 misleading advertisements, Facebook’s response has been inadequate in addressing the issue effectively.In the face of Facebook’s reluctance to take appropriate action against these fraudulent ads and the substantial financial damage amounting to $2.8 million, MDES has issued a stern warning. Should Facebook fail to rectify the situation, MDES is prepared to pursue a court-issued shutdown order against the platform within a span of seven days.To protect the public from falling victim to these scams, MDES has advised individuals to exercise caution when encountering ads that promise exorbitant profits. Moreover, users are urged to be skeptical of endorsements from celebrities, as these images are often manipulated to deceive the public. The ministry also emphasized the importance of verifying the credentials of businesses and platforms before engaging with them.Safeguarding investorsThailand’s regulatory efforts in the cryptocurrency domain have taken a cautious trajectory. Thailand’s Securities and Exchange Commission (SEC) has stepped up its efforts to safeguard investors from crypto scams by instituting stringent guidelines against deceptive crypto marketing.As part of those guidelines, the SEC stated: “It is forbidden to advertise or persuade the general public or do any other act in the manner of supporting the deposit taking & lending service.” Acknowledging the inherent volatility of the crypto market, the SEC has mandated risk-related disclosures for all crypto trading platforms.With Facebook boasting around 48.1 million users in Thailand as of January 2023, the platform holds substantial influence, making the resolution of this issue even more critical. Striking a balance between innovation and regulatory measures is imperative to ensure that online spaces remain safe and conducive to a healthy crypto market.

Binance Weighs Up UAE Expansion Amid Regulatory PressuresGlobal cryptocurrency exchange Binance is contemplating a strategic shift towards the Middle East as it faces regulatory challenges in the United States and Europe.Alex Chehade, the General Manager of Binance Dubai, believes that the United Arab Emirates (UAE) could emerge as a preferred destination for crypto businesses due to favorable and transparent regulations.Photo by Saj Shafique on UnsplashUAE’s regulatory certaintyChehade emphasized the UAE’s ambition to establish itself as a key player in the Web3 industry and diversify away from fossil fuels, with cryptocurrencies playing a significant role in this transition. Speaking to Cointelegraph, the local branch manager of Binance highlighted the certainty and predictability offered by the UAE’s regulatory framework, making it an attractive environment for business development.Binance MENA statistics indicate that the UAE has the highest number of cryptocurrency holders, with approximately 28% of UAE residents owning cryptocurrencies. This data highlights the significant interest and adoption of digital assets in the country.Binance obtained a Virtual Assets Regulatory Authority (VARA) license in Dubai in 2022, making it one of the first exchanges to do so. The license includes a Virtual Asset License obtained in March and a Minimal Viable Product (MVP) license secured in September. The MVP license allows Binance to offer a full range of approved digital assets and related services.Facing difficulties in the US & EuropeThis strategic consideration by Binance comes at a time when the exchange is grappling with legal issues on multiple fronts. Lawsuits filed by the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) in the United States have added to the regulatory pressure. In Europe, Binance has faced challenges, including an order from the Belgian FSMA to cease operations immediately, de-registration in the UK, ongoing investigations in France, and withdrawal from the Netherlands and Cyprus.In Europe, Binance recently decided to delist privacy tokens, such as Zcash and Monero, due to changes in local anti-money laundering regulations. However, the exchange later reversed that decision on the basis that the classification of these assets has been revised to comply with legal requirements within the EU.While European officials aim to establish Europe as a hub for cryptocurrencies with the implementation of Markets in Crypto-Assets (MiCA) regulations, Binance’s actions suggest a preference for other jurisdictions.The rise in popularity of cryptocurrencies in the UAE can be attributed, in part, to the VARA. Chehade commends VARA for providing a clear regulatory framework for crypto businesses, which he believes is lacking in other regions.As Binance faces regulatory pressure in the West, the company is exploring opportunities in the Middle East, particularly in the UAE, where the regulatory framework, growing crypto community, and commitment to becoming a Web3 hub make it an attractive prospect for expansion.It is understood that Binance’s Founder and CEO, Changpeng Zhao (CZ), lives in Dubai. However the headquarters of the company has remained unclear. Originally founded in Shanghai in 2017, the firm was later moved to Tokyo and later to Malta. Perhaps the UAE will serve as the company’s base going forward.

Web3 company Carrieverse has partnered with Korea Digital Assets (KODA) to facilitate robust investor protection and safe and transparent trading of virtual assets, according to South Korean news site Money Today on Tuesday (KST).Photo by Kaffeebart on UnsplashEnhancing investor securityRecently, there have been cases where corporate entities have demonstrated unstable management of the virtual assets they hold, particularly where withdrawals and distribution are concerned. Many investors have subsequently suffered losses due to incidents such as hacking. This partnership was established to protect investors from such situations. Carrieverse’s partnership with KODA is aimed at protecting investors from such troubles. The firm plans to safely store its cryptocurrency CVTX in KODA’s custody system, and vowed to boost transparency of transactions and clarify investor protection measures. "Recently, the number of Carrieverse users has exceeded 30,000 per day, and we are seeing an increase in on-chain data and CVTX holders. Our partnership with KODA will provide an environment for transparent cryptocurrency trading and bolster investor protection,” Carrieverse said. About KODA and CarrieverseKODA is a virtual asset custody service provider jointly established by KB Bank, Web3 digital wallet developer Haechi Labs and blockchain investment firm Hashed. It is known for its one-stop digital asset custody services catered to corporate and institutional clients. Carrieverse’s Web3 services include a metaverse, a blockchain gaming platform called Cling and the card strategy role-playing game (RPG) Superkola Tactics, which is playable on Cling.