Hong Kong moves towards stablecoin licenses as Shenzhen warns of stablecoin scams

OPNX Enables Margin Trading via oUSDCrypto futures and bankruptcy claims trading exchange OPNX has unveiled a credit currency called “oUSD” for margin trading.The company announced the new currency via a statement to Cointelegraph by OPNX Co-Founder Mark Lamb on Wednesday. The initial phase of oUSD requires users to deposit crypto assets into the exchange to acquire the currency. In the subsequent phase, OPNX plans to enable users to obtain oUSD by depositing crypto into on-chain contracts, allowing for potential “bankruptcy remoteness,” according to Lamb.Photo by Krišjānis Kazaks on UnsplashSolving three problemsThe currency’s litepaper identifies three problems that oUSD aims to solve. Firstly, lenders are hesitant to trust platforms to hold cash loans backed by crypto collateral. Secondly, exchanges and lending platforms are wary of lending cash to margin traders due to the multiple bankruptcies witnessed during the bear market of 2022. Lastly, crypto derivatives traders seek “portfolio margin” to borrow and trade based on their crypto holdings rather than stablecoin holdings.To address these concerns, oUSD is designed as a “credit currency.” It can be obtained at a 1-to-1 ratio with Tether (USDT) or used to measure profit and loss when users utilize Bitcoin or other cryptocurrencies as collateral. Users with negative oUSD balances are subject to an interest rate determined by holders of the platform’s native token, OX. Those with a positive balance can redeem oUSD for USDT.Future plansLamb discussed future plans with Cointelegraph, explaining that users will eventually be able to acquire oUSD by staking cryptocurrencies within smart contracts outside the platform. This mechanism aims to provide bankruptcy remoteness, safeguarding users from potential exchange insolvency.One of the co-founders of OPNX, Kyle Davies, along with Su Zhu, also co-founded the failed hedge fund Three Arrows Capital (3AC), leading to controversy surrounding the exchange. OPNX’s CEO, Leslie Lamb, admonished investors for allegedly misleading the public by disassociating themselves from the exchange. Responding to criticism, Mark Lamb argued that the mistakes made by Davies and Zhu have contributed to improving OPNX as an exchange.Lamb stated: “I think Kyle and Su kind of portrayed the zeitgeist of the last crypto bull market well, and they lost the majority of their net worth, but they are building back, and that’s what I am doing as well, and that’s what everyone should do… just build back.”Appearing on a Twitter Spaces recently, the founders of the bankrupt Singapore-headquartered 3AC said that they are committed to donating future earnings from OPNX to the creditors of the collapsed crypto hedge fund. Goodwill has been largely lacking for the duo following the 3AC collapse yet undeterred, they are putting all their energies behind their new venture, OPNX.OPNX’s launch of oUSD as a credit currency offers potential solutions to the challenges faced by lenders, exchanges, and margin traders in the crypto space. By introducing oUSD, OPNX aims to provide a safer trading environment, provable solvency, and custody on-chain, giving users protection for their assets and promoting trust in the exchange. Trust might be in short supply for the start-up’s founders although there’s no doubt that they have acquired a lot more experience in the wake of the 3AC collapse.

Korean government to seize crypto for unpaid child supportStarting next year, the South Korean government is set to begin seizing virtual assets such as bitcoin from parents who are obligated to pay child support but fail to do so.Photo by Bonnie Kittle on UnsplashKorea Credit Bureau to assist in crypto seizuresAccording to a report by local news outlet Dailian, the Child Support Agency (CSA) of the Korean Institute for Healthy Family (KIHF), which operates under the Ministry of Gender Equality and Family, announced on Wednesday (local time) a partnership with the Korea Credit Bureau (KCB). This collaboration will empower the agency to confiscate virtual assets from parents who are delinquent in paying child support.Since 2015, the CSA has been offering emergency child support for approximately a year to low-income single parents who have not received payments from non-custodial parents. In this process, the agency initially pays the child support on behalf of the non-custodial parents and subsequently pursues reimbursement from them. This system ensures that the immediate needs of the children are met while still holding non-custodial parents accountable for their financial responsibilities.Before July 2022, the CSA was required to initiate lawsuits against non-compliant parents to recover child support payments. However, since then, the agency has been authorized to directly pursue reimbursements by following the compulsory national tax collection process.Challenges in enforcing child support paymentsDespite these improved measures, the government still encountered challenges in enforcing child support payments. Some non-compliant parents have resorted to earning income under other people’s names or deliberately concealing their properties, including virtual assets, to evade their child support obligations.Against this backdrop, the recent partnership between the CSA and the KCB is a strategic move to enhance the enforcement of child support payments. This collaboration will grant the CSA access to KCB’s virtual asset management system. With this access, the CSA will be able to efficiently search for and seize the cryptocurrency holdings of non-compliant parents.Jeon Joo-won, the head of the CSA, underlined the significance of the agency’s collaboration with the KCB. She pointed out that utilizing KCB’s financial transaction data will improve the CSA’s enforcement of child support payments. Jeon also emphasized that the mutual support between the two agencies will serve as a foundation for promoting social values, highlighting the broader societal impact of their combined efforts to ensure responsible child support compliance.

Coinbit suspends operations, marking second crypto exchange shutdown this monthCoinbit, a South Korean cryptocurrency exchange operated by blockchain service provider AXIASOFT, has suspended its services according to an official announcement on its website posted on Thursday (local time). This development comes just over a year after it became a virtual asset service provider (VASP) on Sept. 1 last year. It is also the second crypto exchange in the country that has ended its operations after Cashierest on Nov. 6, indicating that troubled predictions previously projected by industry sources are becoming a reality.Photo by Andrew Winkler on UnsplashBusiness transitionCoinbit explained that, despite its efforts to create an environment optimized for transparent crypto transactions, it was pushed by ongoing changes in regulatory policies to make changes to its business. It intends to shift its focus to establishing a securitized transaction system.Membership registration and deposits will no longer be allowed starting at 5 p.m. next Friday. Transactions and withdrawal services will be suspended from 1 p.m. on Dec. 29. The exchange advised its users to withdraw their virtual assets accordingly.Earlier, it was reported that Coinbit was facing difficulties maintaining smooth operations due to its exceedingly low trading volume. Industry sources believe that the realization of the previously speculated closure of coin market exchanges.More shutdowns to come?“Much of the workforce at crypto exchanges have been taking hits, leading to challenging business conditions,” stated an unnamed industry expert, proposing conjecture that more announcements of service suspensions may be imminent. According to a survey conducted earlier this year by the Financial Intelligence Unit (FIU), 10 out of 21 crypto exchanges reported zero revenue from transaction fees, and 18 were in a state of complete capital impairment.