DWF Labs switches headquarters from Singapore to Abu Dhabi

Report: Can Bitcoin Replace Gold As a Safe Asset?In light of the substantial increase in Bitcoin (BTC) prices this year, a report from KB Financial Group in South Korea examined the potential for BTC to replace gold as a safe asset.©Pexels/Michael SteinbergThe study delves into the factors behind the recent BTC price surge and emphasizes the need for caution when considering BTC as an alternative to traditional safe assets.3 drivers behind BTC surgeFrom January 1 to March 31 this year, BTC experienced an impressive return of 71%. This surge can be attributed to three main factors: an anticipated increase in liquidity due to market expectations of unchanged or falling interest rates; central banks supplying liquidity to mitigate risks in the traditional banking system; and concerns over the potential delisting of cryptocurrencies should the US court’s decision on the Ripple-SEC case classify XRP, Ripple’s native token, as securities, prompting investors to shift their focus to BTC.The report suggests that the current BTC boom is more likely a result of short-term arbitrages and social conformity, given the greater information asymmetry in the crypto market, which lacks the disclosure system present in traditional stock markets.Persisting risk factorsLast month, blockchain tracker Whale Alert spotted a transfer of 11,125 BTC from an anonymous address to Binance. The primary reason for moving assets from a private address to an exchange address is to sell them, indicating that investors should keep a watchful eye on Bitcoin trading volumes, particularly for any signs of large sell-offs.Data from the crypto data analysis platform Glassnode revealed that the percentage of the BTC supply that was active over a year ago reached an all-time high of 68% in late March. Historically, such an increase has been associated with falling BTC prices.This year, the BTC supply is set to grow due to the US government’s liquidation of seized BTC. As detailed in a March 31 Cointelegraph article, the US government seized 51,352 BTC in a case related to Ross Ulbricht, the creator of the online black market Silk Road. The government has already sold 9,861 BTC, with the remaining amount expected to be liquidated in four additional portions throughout the year.Binance, the world’s largest crypto exchange by trading volume, has been struggling to find banks in the US to store client funds after crypto-friendly banks Silvergate and Signature closed their doors.Need for cautionAlthough various media sources often portray BTC as a safe asset, the report advises caution in accepting these claims. Although some liken BTC to “digital gold,” the two assets share little in common beyond their finite and scarce nature. In fact, gold and BTC diverge significantly in terms of social consensus, intrinsic value, price volatility, and investor protection.Gold serves as a highly liquid asset with applications in both jewelry and industrial goods, in addition to its role as an investment vehicle. In contrast, BTC’s intrinsic value is still debatable. The price volatility of BTC is also a concern, as evidenced by its 71% spike in the first quarter of 2023, compared to gold’s modest 8% increase. Additionally, gold investment products are regulated by law, whereas BTC is not. The report thus recommends treating BTC as a high-risk product and incorporating it into a diverse investment portfolio.It is worth noting that since the outbreak of the COVID-19 pandemic, the crypto market has demonstrated a stronger correlation with the global stock market in response to negative signals. This trend can be partially attributed to the growing presence of institutional investors in the crypto market, who often sell risky assets first to secure liquidity in the face of unexpected shocks.

Global blockchain security ranking platform CertiK announced that its Skyfall research team has been inducted into the Samsung Mobile Security Rewards Program’s 2023 Hall of Fame, according to an article by South Korean news outlet Greenpost Korea on Thursday (KST).Photo by Franck on UnsplashTeamwork excellenceThis Hall of Fame recognizes outstanding security researchers who have made significant contributions each year to the security of Samsung products. CertiK Skyfall’s spot in the ranking highlights the importance of collaborative efforts in solving complex cybersecurity challenges, the company said. Securing the futureThe team was responsible for actively identifying a total of seven vulnerabilities in the Samsung Blockchain Keystore – a software development kit (SDK) developed by Samsung to manage private keys – four of which were critical and three of which were high risk. The vulnerabilities left the SDK susceptible to local attacks, including arbitrary code execution and unauthorized access to sensitive data. In response, Samsung was able to quickly deploy security patches that added appropriate boundary checks and protection mechanisms. Skyfall has formerly been acknowledged twice in Apple's release notes for discovering multiple vulnerabilities in new iOS and iPadOS software releases, the most recent being iOS 17 Security Update. Last June, the team was also awarded the Sui network’s highest bug bounty for discovering and fixing a critical vulnerability. "We are extremely proud of the outstanding performance of the CertiK Skyfall team," said Kang Li, Chief Security Officer at CertiK. "It is a testament to the team's professionalism, integrity and deep impact at the forefront of cybersecurity." CertiK is comprised of a team of seasoned experts from reputable universities including Yale and Columbia University and globally renowned companies like Google and Microsoft. The firm also operates from several offices around the world, including Seoul.

China’s central bank and seven other ministries have released a sweeping new policy tightening controls on cryptocurrencies, stablecoins, and the tokenization of real-world assets (RWA), citing mounting speculative activity and risks to financial order, public asset safety, national security, and social stability. The move builds on warnings issued late last year. At a Nov. 28 meeting on crypto regulation, the People’s Bank of China (PBOC) reaffirmed that all commercial activities involving digital assets remain illegal, citing the proliferation of speculative trading that was complicating financial risk management. Officials said enforcement against crypto-related illegal financial activity would be stepped up to safeguard economic stability, and flagged stablecoins as a particular concern due to deficiencies in customer identification and anti-money laundering (AML) controls, as well as risks of fraud and unregulated cross-border capital flows.Photo by William Olivieri on UnsplashCrypto not legal tender in ChinaIn the latest notice, regulators again stress that digital assets such as Bitcoin, Ethereum, and USDT have no legal tender status in China and cannot circulate as money. All crypto-related activities—including trading, exchange services, token issuance, derivatives, pricing, information brokerage, and related financial products—are classified as illegal financial activities and are strictly prohibited. Overseas entities and individuals are also barred from providing crypto-related services to users in China. The document further tightens oversight of stablecoins, warning that fiat-pegged tokens effectively perform some functions of sovereign currency. It explicitly bans the issuance of offshore yuan-linked stablecoins without regulatory approval. RWA tokenization deemed illegalChinese regulators laid out a comprehensive framework addressing RWA tokenization, defining it as the use of blockchain or similar technologies to tokenize ownership or income rights of assets. Authorities say that domestically conducted RWA tokenization, or the provision of related services, may constitute illegal securities issuance, illegal fundraising, or unauthorized financial business, and is prohibited unless explicitly approved and conducted via designated financial infrastructure. Offshore RWA tokenization targeting Chinese entities is also banned. The policy establishes a coordinated enforcement mechanism led by the central bank and securities regulator, involving development, industry, public security, cybersecurity, judicial, and foreign-exchange authorities, while placing primary enforcement responsibility on local governments. Financial institutions, payment firms, intermediaries, technology providers, and internet platforms are ordered not to provide accounts, clearing, custody, marketing, IT support, or online access for crypto or unauthorized RWA tokenization activities. Companies are also prohibited from using terms such as “cryptocurrency,” “stablecoin,” or “RWA tokenization” in business registration or advertising. China will continue its strict campaign against crypto mining, requiring all remaining mining projects to be shut down and banning the domestic manufacture and sale of mining equipment. The document also tightens supervision of overseas activities by Chinese entities, requiring regulatory approval for offshore token issuance or RWA tokenization involving onshore assets or rights, and imposing enhanced compliance, risk management, and AML requirements on overseas subsidiaries of Chinese financial institutions. The new rules take effect immediately and replace a notice issued in 2021, when China introduced a broad ban on crypto trading and mining, broadening the restrictions to explicitly cover RWA tokenization.