U.S. seizes web domains tied to Burma-based crypto investment fraud ring

KuCoin resolves lawsuit through settlement and New York market exitKuCoin, one of the largest global cryptocurrency exchanges, has arrived at a comprehensive settlement with the authorities in the state of New York in the United States, agreeing to pay $22 million.Photo by Michael Discenza on UnsplashSubstantial fine and refundsThe settlement not only involves a substantial fine but also includes refunds to New York investors and the cessation of trading activities in the state. This resolution comes amidst an assertive effort by New York authorities to shape and regulate the crypto landscape within the state.According to a statement released by New York Attorney General Letitia James on Tuesday, KuCoin will refund a total of $16.7 million to 177,800 New York investors. In addition to the refunds, KuCoin will pay a $5.3 million fine to the state.The settlement addresses allegations that KuCoin failed to register as a securities and commodities broker-dealer while falsely presenting itself as a cryptocurrency exchange.Taking to social media platform X, James wrote:”My office is making crypto platform @kucoincom pay over $22 million for illegally operating in New York. KuCoin is also banned from doing business in our state. Shady cryptocurrency platforms must play by the same set of rules as everyone else or face the consequences.”At the time of taking action against KuCoin in March, James described the lawsuit as “our eighth action to rein in shadowy cryptocurrency platforms that disregard our laws and put New Yorkers at risk.”Lack of registrationKuCoin, based in the Seychelles, allows investors to trade digital assets through its website and app. However, the state of New York argued that KuCoin could not legitimately claim to be an exchange due to its lack of registration with the U.S. Securities and Exchange Commission (SEC) and the proper designation by the Commodity Futures Trading Commission (CFTC), as mandated by state law.Ranked as the fourth-largest exchange by spot and derivatives trading volume, KuCoin’s KCS token, a profit-sharing token on the platform, has experienced a 39% increase since the start of the week. At the time of writing, it has a unit price of $13.80. This surge is a consequence of the clarity and finality brought about by the settlement, alongside rising expectations for a U.S. exchange-traded fund (ETF) directly investing in Bitcoin, sparking a broader rally in lesser-known cryptocurrencies over the past month.Potential rumorsKuCoin CEO Johnny Lyu took to the X platform on Tuesday to outline details of the settlement. Interestingly, Lyu included this notification:”I also want to give you a heads-up about potential rumors surfacing in the next few weeks. Please stick to the official website of KuCoin for accurate information.”While the settlement may have brought a certain degree of clarity to the KuCoin platform, Lyu’s comment suggests that there may be other issues about to emerge in the short term.The lawsuit against KuCoin is part of a broader regulatory trend in New York, with Attorney General James having previously filed a similar complaint against CoinEx. Additionally, a settlement in January involving crypto companies Nexo Inc. and Nexo Capital Inc. resulted in a financial resolution of up to $24 million for New York and nine other states.

Bhutan Launches Blockchain-Based National ID SystemBhutan, the Buddhist kingdom nestled along the eastern edge of the Himalayas, has introduced a blockchain-based National Digital Identity (NDI) system.Photo by Aaron Santelices on UnsplashDisrupting the delivery of government servicesThe blockchain-based cryptographic identity platform has the potential to revolutionize the way Bhutanese citizens access government services and conduct digital transactions. According to local Bhutanese media source BBS, the system was launched last week, giving Bhutanese citizens the opportunity to download the Bhutan NDI application directly to their mobile devices.The user-friendly application promises a seamless experience, marked by a straightforward login process. Once registered, citizens will gain access to an array of government services. These will include construction approvals, land taxes, passport services, birth and death registration certificates, as well as Royal University of Bhutan degree certificates and various business-related services, all within the confines of their digital wallets.Digital wallet alongside digital identityNotably, the development could have major implications where the future use of digital currency in Bhutan is concerned. The NDI is not just a digital identity but a digital wallet.That means that users have the option to link their bank accounts to the NDI app, facilitating financial transactions without the need to switch between multiple apps. As of now, the Bank of Bhutan is the first financial institution to integrate with the NDI app.The Royal Monetary Authority of Bhutan (RMA) entered into a collaboration with enterprise blockchain firm Ripple Labs in September 2021 to develop and trial central bank digital currency (CBDC).Streamlining service deliveryThe GovTech Agency, the driving force behind the NDI project, envisions that this digital innovation will streamline and simplify the often arduous process of interacting with government agencies. Jigme Tenzing, the Acting Secretary of the GovTech Agency, explained the transformative potential, stating:“So, essentially what this enables for Bhutan is the ability to take almost all services and make them available online. This can virtually transform how services are provided in Bhutan. This is regarded as not only services that the government provides to citizens, but it can extend to even the private sector.”Some concerns have been raised with regard to this consolidation of personal information within a single platform. The GovTech Agency has responded by emphasizing the incorporation of biometric data, including fingerprint and facial recognition, to enhance identity verification and authentication. It feels that these measures are sufficient to safeguard data privacy.Crypto investmentThere had been little in the way of news emerging from the South Asian country where decentralized technology was concerned until earlier this year when it became known that the kingdom had been an investor on the failed crypto lender platforms of Celsius and BlockFi.It had done so through Druk Holdings and Investments (DHI), the commercial arm of the Royal Government of Bhutan. In May it emerged that DHI had entered into a partnership with Singapore-based Bitcoin mining firm Bitdeer, with the intention of developing green digital asset mining operations within the country.The National Digital Identity Act of Bhutan 2023 received Royal Assent in July, solidifying Bhutan’s status as the first sovereign nation to implement a comprehensive decentralized identity framework.

Bank of Korea Explores Jeju, Busan, and Incheon for Citizen-Centric CBDC Pilot TestThe Bank of Korea (BOK) is reportedly reviewing three potential locations for a pilot test of a citizen-centric payment system utilizing the Korean Won central bank digital currency (CBDC). Instead of choosing Seoul, the nation’s capital city, the BOK is considering Jeju, Busan, and Incheon for the pilot. That’s according to local tech news outlet IT Chosun.The three cities have been selected as possible testbeds, and discussions with commercial banks are ongoing to move the project forward. Once a city is chosen, the BOK will collaborate with local retailers, including hypermarkets, to test the CBDC payment and distribution system.Photo by Ethan Brooke on UnsplashRegional currency modelThe CBDC test will be limited to a specific area, operating similarly to regional currencies issued by municipal governments to stimulate local economies. The CBDC wallet app will be available to all citizens, but its usage will be restricted to retailers in the designated area. Presently, Jeju, Busan, and Incheon already have their own regional currencies managed by local banks and financial institutions.However, implementing the CBDC system poses technical challenges. In remote tests last year, the BOK discovered that transaction speeds for small transfers were slower compared to traditional payment processing providers in regions outside the Seoul Metropolitan Area.Against this backdrop, the BOK seeks to recruit an unusually large number of tech experts in order to build a large-scale system for small payments. The bank has been actively hiring individuals for this purpose since the beginning of the year.CBDC test next yearWith the test scheduled for next year, the BOK aims to promptly select the test destination based on the system’s expected performance, estimated user numbers, and potential economic impact.While Busan is more or less shunned due to its large population, Jeju is emerging as a preferred choice. However, the final decision has been tentatively postponed due to internal issues within the BOK.Following the pilot test results, the BOK may gradually broaden the scope of the CBDC system. Meanwhile, in a similar development, China began its CBDC pilots in 2020 and has now expanded its CBDC use to 26 cities across 17 provinces.According to a BOK official, the Korean central bank is making seamless preparation for the test and engaging in discussions with commercial banks to explore their operating models and devise effective implementation strategies.