Sony Bank seeks OCC nod for U.S. dollar-backed stablecoin and crypto services

The South Korean financial authority will establish new policies and guidelines for token listing and provide admirable examples from past listing events for local exchanges to follow, according to local media outlet News1.  So far, fiat-to-crypto exchanges in Korea have been listing tokens on their platforms under a guideline issued by Digital Asset eXchange Alliance (DAXA) – a self-regulatory consultation group comprised of five major Korean crypto exchanges. The existing DAXA guideline outlines basic yet vague instructions, which have allowed exchanges to list tokens largely at their discretion.  However, the new guideline from the financial authority, expected to be released by this June, will mark the government’s first official manual on token listing. This is in line with the upcoming Virtual Asset User Protection Act, which will be effective in July. Photo by Hitesh Choudhary on UnsplashSetting clear guidelines for token listingsThe new guidelines are expected to include examples of past fraud detection and real-time monitoring cases which are deemed to have set precedents for the industry players. Moreover, the financial authority plans to distribute past exemplary cases of token listing as early as April, which is anticipated to set a model listing process and help local crypto exchanges adhere to the law and requirements.  This announcement comes after the local game company Wemade relisted its native token WEMIX on Korbit, one of DAXA's member exchanges, just a year after it was delisted on major exchanges due to its deviant practices in token issuance. The relisting of WEMIX has since raised concerns among crypto insiders about the lack of criteria regarding token listings. More refined token listing process As the crypto market's bullish trend continues, Bithumb and Coinone – the second and third-largest exchanges in Korea – are stepping up their efforts to speed up the listing of new coins. Industry experts expect these exchanges will double down on their efforts in screening and reviewing processes for tokens to align with the new guidelines in the future.  An official from the Korean Financial Intelligence Unit (FIU) said that while the anticipated listing process is not legally binding, it will definitely have a more profound impact on local crypto exchanges compared to the self-regulated DAXA guidelines.  

KuCoin affiliate applies for license in Hong Kong amid identity mix-upIn a recent development on the Hong Kong crypto scene, VAEXC Limited, a cryptocurrency exchange, has submitted an application for a crypto trading license. The move had sparked a misunderstanding as some reports suggested the application was submitted by a Binance-linked company when in fact, it turns out to be a KuCoin-affiliated entity.Photo by Stella P on UnsplashReporting confusionA report published in October by the South China Morning Post (SCMP) asserted that a newly established crypto exchange named HKVAEX appeared to be connected with global crypto platform Binance.In the meantime, it emerged more recently that an application for a trading license had been submitted by the similarly named VAEXC Limited. While many reports confused this entity with what is believed to be a Binance-linked company, subsequent reports have emerged to confirm that the application pertains to an entity associated with the Seychelles-incorporated cryptocurrency exchange, KuCoin.In response to these initial wayward reports, a HKVAEX spokesperson confirmed that the company is in the process of preparing a licensing application in Hong Kong but that it has yet to do so. The spokesperson stated:“We are still in the preparatory stages for the application” . . . “VAEXC is an entirely separate applicant, and our operations are completely independent.”Leveraging KuCoin technologyThe SFC updated the list of virtual asset trading platform applicants on Nov. 27, disclosing that Hong Kong VAEXC Limited submitted its application on Nov. 25. Operating under the name VAEX, the exchange places a strong emphasis on security and regulatory compliance, positioning itself as a next-generation, trusted virtual asset exchange.Backed by a team with extensive industry expertise and leveraging KuCoin Tech, VAEX aims to offer a secure, reliable, stable and user-friendly platform for crypto asset trading and management. In celebration of VAEX’s launch, KuCoin conducted a public testing campaign, featuring a 15,000 USDT prize pool for eligible KuCoin users and participants.Despite the recent scandals in Hong Kong’s crypto scene — including an alleged fraud at the JPEX crypto exchange and more recently still, an alleged Ponzi scheme orchestrated by unlicensed crypto exchange Hounax — the regulatory stance in Hong Kong remains unwaveringly positive where digital assets are concerned.Introduced in June, regulations in Hong Kong mandate cryptocurrency exchanges to apply for a Virtual Asset Service Provider (VASP) license from the SFC by June 2024 or face de-registration. Notably, unregistered exchanges are permitted to operate during the interim transition period.KuCoin’s investment arm, KuCoin Ventures, has also been active in Hong Kong. In March, the firm led a $10 million investment in CNHC, a Hong Kong-based stablecoin issuer. Three months later, amid a changing regulatory environment in 2023, the platform confirmed a tightening of its compliance procedures with the introduction of mandatory know-your-customer (KYC) identity checks.Meanwhile, it’s unclear as to what plans Binance has to expand in Hong Kong if any. The leading global exchange is facing very challenging legal issues in the United States currently. That could have a bearing on its plans in Hong Kong, while it remains unclear as to what level of involvement it has with HKVAEX.

Zero Two Enters Into JV to Develop First Middle East Mining OpZero Two, a digital assets development company based in Abu Dhabi in the United Arab Emirates (UAE), has partnered with leading North American crypto miner Marathon Digital in a joint venture that will result in the development and operation of the Middle East’s first large-scale crypto mining facility.Photo by Manuel Geissinger on PexelsInitial capacity of 250 MWIn a press release issued on Tuesday, Marathon Digital outlined that the venture is focused on accelerating the global digital economy while also supporting Abu Dhabi’s power grid.To progress the project, the two companies have formed the Abu Dhabi Global Markets JV Entity (AGDM Entity). Initially, two digital asset mining facilities, with a combined capacity of 250 MW, will be developed.One site, at Masdar City, Abu Dhabi, will account for 200 MW of that capacity. The remaining 50 MW capacity will be developed at a site located in the port area of Mina Zayed. The strategy of the firms is to exploit excess network energy in Abu Dhabi. The firms see this as a win/win as increasing the base load of the Abu Dhabi power grid will result in a more sustainable grid. The companies intend to supplement any use of non-sustainably produced energy with carbon offset certificates.80/20 equity splitThe two firms have agreed upon an 80%/20% equity split, with Zero Two being the lead investor. In the initial development period for the venture during 2023, both entities will contribute resources to the joint venture in proportion to the equity division, in the form of capital, equipment and infrastructure.Zero Two and Marathon had previously collaborated on a pilot project with the objective of determining the feasibility of building a large-scale facility. Air-cooled miners have not proven to be a success in hot arid climates like that of the Rub Al Khali Middle Eastern desert.The upshot of the pilot program was a determination that a custom-built immersion-cooled system would be feasible. Mining equipment for the facilities is already on order while construction at the two sites is underway. Both sites are expected to go online before the end of the year with a combined hashrate of 7 EH/s.Ahmed Al Hameli commented on the joint venture: “This alliance leverages Zero Two’s regional expertise, expansive relationships, and growing blockchain infrastructure development and operational capabilities, with Marathon’s technical prowess in developing digital asset sites and innovative mining technologies.These synergies create a powerful combination and lay the groundwork for the success of this pioneering project in the Middle East. Marathon shares our commitment to actively supporting Abu Dhabi’s power grid and developing global digital assets infrastructure. We look forward to working with them on this venture.”Jurisdictional arbitrageMarathon’s CEO Fred Thiel said that Zero Two’s regional relationships were an optimal compliment. It may be both a timely and shrewd move by Marathon to develop this project in the Middle East region. In recent weeks the Biden administration floated the idea of a 30% crypto mining tax. Crypto mining is a global endeavor.That type of additional overhead would make it very difficult for North American miners to remain viable. By opening up new working relationships in other regions, the company may be in a better position to pivot should North America and the firm’s Montana-based mining facility become unsustainable.