Binance Behind New Hong Kong Crypto Exchange Pursuing License

Bullish Emerges as a Bidder for Bankrupt FTX ExchangeBullish, a Gibraltar-based crypto exchange with strong ties to Asia, has emerged as a prominent bidder for the bankrupt trading platform FTX, which filed for bankruptcy protection in November last year.Photo by Kelly Sikkema on UnsplashValuable customer baseUp until that point, FTX was a thriving player in the cryptocurrency market. However, it is now in the process of seeking new ownership or financial restructuring to resurrect its operations. In a report published on Tuesday, The Block outlined that according to sources familiar with the situation, Bullish is eager to acquire FTX primarily for its valuable customer base.The news follows the filing of a stakeholder brief to the bankruptcy court in Delaware in the United States by the FTX Debtor on Monday. The brief outlined that the Debtor, led by new CEO John Ray, has reached out to more than 75 bidders to evaluate the potential relaunch of the FTX exchange business.Bullish aims to leverage FTX’s existing user network, intending to convert as many of them as possible into Bullish customers. However, it’s worth noting that this complex negotiation process may face challenges and uncertainties along the way.Asian connectionsAlthough it’s incorporated and registered in Gibraltar, only 4% of the company’s staff are Gibraltar-based. Meanwhile, the firm has offices in Singapore and Hong Kong with those locations accounting for 49% of the company’s overall workforce, according to LinkedIn data. Back in November the firm confirmed that it wasn’t one of the many crypto businesses with exposure to the FTX collapse.Bullish was founded by Brendan Blumer, with Bloomer currently acting as the exchange’s Chairman. Blumer previously founded Block.one, the developer behind the EOS blockchain. He also successfully founded and later exited Okay.com, Hong Kong’s largest digital property agency.Other Asia-centric players in the crypto sector had expressed interest in buying the FTX business (or parts of the business) earlier in the year. These included Singapore’s BSQ Capital and Gamepay, India’s CoinDCX, Japan’s 5G networks developer Docomo and e-commerce giant Rakuten, and Hong Kong’s OKC Holdings.Tribe Capital interestThe Block article also outlines that US-based Tribe Capital is another significant bidder in the running. Tribe Capital had FTX within its venture portfolio prior to the exchange’s downfall and subsequent bankruptcy at the close of the previous year. It had also appeared on the list of 363 sales parties back in June, and prior to that still, it had expressed its interest in buying the business.To establish a clear timeline for its business restructuring efforts, the estate has set a deadline for new bids, which falls on September 24. The FTX estate is still at an early stage in trying to resuscitate the business. Even if it’s successful in that endeavor, it’s not expected that a new business will emerge until Q2 2024 at the earliest.Separately, a criminal prosecution against FTX Founder Sam Bankman-Fried is progressing with a trial scheduled to take place in New York in October. Presently Bankman-Fried is incarcerated in a New York City jail while he awaits trial, having been found to have breached his bail conditions on the grounds of witness tampering.

Regulatory Pressure Sees Binance Cease Card Offering in the Middle EastLeading global crypto exchange Binance has announced the discontinuation of its card services in the Middle East.Users hailing from the region will have until September 21 to maximize the utility of their Binance cards before the product will no longer be available to them. Latin America is another region which will be similarly affected by the decision. Binance Customer Support stated: “The Binance Card will regrettably no longer be accessible to users based in Latin America and the Middle East.”Photo by rupixen.com on UnsplashEnabling crypto spendingDistinct from conventional debit cards, these Binance cards have offered users the convenience of settling day-to-day expenses with crypto assets. However, this unique feature is now set to become a relic as the exchange shifts its strategy in response to evolving regulatory dynamics.It’s worth noting that this product curtailment will only impact less than 1% of users situated in these regions. Other Binance services around the world will continue unimpeded. That said, products like this one are significant as they help to bridge the gap between the crypto sphere and conventional commerce.As a substitute, Binance is actively championing its “Binance Pay” platform, touting it as “an advanced cryptocurrency payment solution that is both contactless and internationally accessible.”Checkout.com setbackFinancial pundits are speculating that this strategic move could be closely intertwined with recent realignments in Binance’s corporate partnerships. Notably, the UK-based payment processor, Checkout.com, severed its connections with Binance earlier this month amidst mounting regional regulatory interventions and concerns.Responding to this severed partnership, Binance has indicated a contemplation of legal recourse against Checkout.com’s decision. The backdrop of this collaboration has been problematic since its inception in 2020. Initial troubles surfaced when the absence of the 3-D Secure system facilitated a criminal syndicate to conduct a $10 million transaction spree on Binance.Clash with global regulatorsRecent months have seen Binance find itself entangled in a web of legal battles. The US Securities and Exchange Commission (SEC) leveled allegations against Binance, accusing the exchange of deceiving regulatory bodies and mishandling customer funds.Meanwhile, French authorities have intensified their scrutiny, suspecting Binance of potential involvement in money laundering activities. As a domino effect, Binance had to exit numerous markets due to its inability to meet the stringent compliance criteria. Over the course of just three months, the company has lost its ability to trade in Germany, Canada, Belgium, the Netherlands, and Cyprus.Asian pivotAs the company comes under pressure in Western markets, it has focused on furthering its offering in the Asian region. In May, its subsidiary, Gulf Binance, successfully acquired a trading license in Thailand. Later that month, the company announced plans for a dedicated platform for Japanese customers.Parrot Capital, a decentralized hedge fund, has issued a direct recommendation to Binance Card users in response to the news:“Check your daily limits. Withdraw via ATM all your funds or spend them ASAP or risk losing them for good.”This sustained and pervasive scrutiny underscores the formidable challenges faced by the leading crypto exchange. As the regulatory landscape evolves, exchanges like Binance are being forced to re-calibrate in order to navigate an ever-changing environment.

South Korea to Revive Tech Exports with Metaverse, BlockchainThe South Korean Ministry of Science and ICT revealed today a strategy to enhance the country’s tech exports. The plan includes leveraging the potential of the metaverse and blockchain as promising export items.Photo by Pixabay on PexelsEmphasis on the digital sectorIn response to the recent decline in exports, the strategy seeks to establish new sources of growth by prioritizing the digital sector, which has historically been a key driver of Korea’s exports. Recognizing the complex challenge posed by the global economic slowdown and other factors, all government ministries are collaborating to counteract the export slowdown.The plan leverages South Korea’s digital capabilities and implements proactive measures to adapt to evolving export trends, including the recent advancement of generative artificial intelligence (AI) tools and the acceleration of digital transformation. By tapping into emerging markets and nurturing innovative companies, the government strives to diversify its export portfolio and strengthen its position in the global market.Despite achieving a record high of $248.8 billion in tech exports in 2022, Korea has faced year-on-year declines since July 2022 due to the global economic downturn. The semiconductor sector, which accounts for more than half of the nation’s tech exports, has been particularly sluggish. Nevertheless, the rise of new tech markets driven by significant technological advancements, such as ChatGPT, and the global push for digital transformation offer opportunities to overcome the current export slump.Emerging marketsAgainst this backdrop, the government is committed to backing the development of products that resonate with the evolving export landscape. It is eyeing emerging markets, notably the Middle East, Southeast Asia, and Latin America, recognizing their fertile grounds for the swift adoption of evolving tech trends, fueled by their substantial youth populations. Furthermore, the government plans to provide policy-level support to tech companies.Government supportUnder this plan, the government will identify promising companies and offer assistance, including consultation and guidance on product commercialization. It will also support metaverse companies participating in overseas projects by covering localization development costs.In the blockchain field, comprehensive support, including technology verification, consulting, and marketing, will be provided to those working towards international standardization for NFTs and their overseas commercialization.As part of this initiative, exhibition rooms will be established on metaverse platforms like ZEPETO and IFLAND in September. These platforms will provide opportunities for innovative firms to showcase their products. At the same time, the plan will facilitate interaction between Korean companies and overseas buyers through online and offline events to boost exports.