Klaytn Foundation Denies Embezzlement Allegations Involving KLAY

Dubai Regulator Suspends BitOasis’ Crypto LicenseDubai’s pioneering cryptocurrency exchange, BitOasis, has had its operating license suspended by the city’s cryptocurrency regulator for failing to meet key conditions within the required timeframes. The Virtual Assets Regulatory Authority (VARA) took enforcement action against BitOasis and initiated a review of the Dubai-based firm.BitOasis was granted a conditional license on April 12, which allowed it to operate on the condition that it met specific requirements within 30 to 60 days. However, the exchange has failed to fulfill these conditions, leading to the suspension of its license. VARA did not disclose the exact nature of the unmet conditions, but it stated that until they are satisfied, BitOasis’ “License for Institutional and Qualified Retail Investors” will remain non-operational.Photo by iridial on UnsplashFirst MVP broker-dealer license holderBitOasis had received the first “minimum viable product operational license” from VARA, enabling it to offer broker-dealer services to qualified institutional and retail investors in Dubai. This license represents a crucial step towards obtaining a full market product (FMP) license, but as of now, no firm has been issued an FMP license by VARA.To become eligible for the FMP license, BitOasis must fulfill the conditions specified in its current license, as outlined by VARA. The regulatory authority has emphasized its commitment to monitoring the situation for compliance remediation.OPNX reprimandThis recent development follows VARA’s reprimand of Su Zhu and Kyle Davies, the co-founders of the now-defunct crypto hedge fund Three Arrows Capital, in April. The duo had operated and promoted their new OPNX crypto exchange in Dubai without the necessary license, catching VARA’s attention.BitOasis addressed the regulatory concerns in a blog post on Tuesday, affirming its collaboration with VARA to meet the remaining conditions for the Operational MVP License. The exchange clarified that the issue with its license does not impact other services provided, such as broker-dealer services for existing retail users. It also took to Twitter on Tuesday to clarify the situation. The company has suspended new user registrations until further notice, presumably as it works towards meeting VARAs licensing requirements.BitOasis stated: “You can continue to use BitOasis with the assurance that your assets are safe, secure, and held at their full value on our platform, and our team will continue to cooperate with the Virtual Asset Regulatory Authority and fulfill all post-operational license terms, as well as working towards a full market product license.”The firm referred to the “unique challenges” that are associated with licensing and suggested that it is determined to address them and to “be a leader in the virtual assets sector.”The suspension of BitOasis’ license highlights the stringent regulatory environment in Dubai’s cryptocurrency sector. VARA is demonstrating that it remains committed to enforcing compliance and ensuring that crypto exchanges meet the necessary requirements. BitOasis must rectify the issues and meet the conditions of its license to regain its operational status and proceed towards obtaining the coveted full market product license in the future.

Com2uS USA CEO Highlights Importance of Transition from Web2 to Web3 GamingLee Kyu-chang, CEO of South Korean game developer Com2uS’ American branch, stressed the important role of Web3 games in encouraging gamers to embrace blockchain technology during a discussion at the Korea Blockchain Week (KBW) 2023 event held at the Shilla Hotel in Seoul on Tuesday.Photo by Fredrick Tendong on UnsplashLee shared various insights on the topic that Com2uS Group has gained through its experience in developing blockchain games. “We view blockchain not as a platform but as a tool,” he said.Nurturing Web3 adoption among gamersIn particular, the CEO emphasized the need for Web2 users to transition to Web3. Indeed, Com2uS is aiming to migrate to Web3, although it is still majorly involved in Web2 businesses.However, there stands a roadblock to achieving this widespread transition. “Gamers do not understand Web3. What they want is for good games to be released. And if they’re not good, they won’t play them regardless of whether they’re Web2 or Web3,” Lee explained, arguing that fun Web3 games will have gamers naturally learning about Web3.Due to these reasons, the conversion rate for gamers is currently quite low. To remedy this, Lee proposed that facilitating the transition for Web2 gamers to Web3 is a more sustainable method than directly targeting only Web3 users. The latter strategy is not ideal due to the fact that there aren’t many Web3 users yet in the first place, and more importantly, existing ones are not typically gamers.Balancing the shiftThe Com2uS Group has thus chosen to concentrate on Web2 while gradually transitioning to Web3. “We must remember that the transition is slow. We went through a similar process when shifting from PC to mobile gaming,” Lee cautioned.“Our company’s mission is to make people want to play games with ownership rights and make them want to own game assets.”

Many commentators in the crypto space were pointing to a lowering of interest rates last week by the Federal Reserve in the United States as being a positive development for the pricing of digital assets. However, the introduction of a stimulus package to revive the Chinese economy may also have a role to play. Stimulus packageBloomberg reported on Sept. 24 that People’s Bank of China Governor Pan Gongsheng had cut a key short-term interest rate. Furthermore, the Bank of China governor plans to implement a reduction in the reserve requirements that are applied to the country’s banks. The Reserve Requirement Ration (RRR) will be cut by 50 basis points, which will mean that $142 billion will be freed up for new lending.  Additionally, a package of measures has been introduced to rejuvenate China’s beleaguered real estate market, lowering the borrowing costs related to $5.3 trillion in mortgages.Photo by Eric Prouzet on UnsplashBullish for crypto?Jamie Coutts, chief crypto analyst at financial research platform Real Vision, took to X to comment on the development. Coutts wrote: “The bottom is in for global central bank liquidity for this cycle. Sit back and watch the other CBs fall into line. In a credit-based fiat fractional reserve system, debasement is a feature, not a bug.” Coutts signed off with a “Bitcoin” hashtag, with the inference that the development will have positive implications for Bitcoin. Similarly, market analysts at Singaporean crypto-asset trading firm QCP Capital perceive the move as being bullish for crypto and risk assets more generally. QCP Capital analysts stated: "We believe more easing is coming from the People's Bank of China (PBoC), and they have communicated as much, and combined with the U.S. Federal Reserve joining the global cutting cycle, all major central banks, except Bank of Japan, are now ready to inject more liquidity into the market. The macro space continues to look more and more bullish for risk assets, including crypto."  Taking that consideration further, the QCP Capital analysts suggest that market participants in the crypto space may be caught off guard by a resultant uptick in crypto pricing, stating: "We know how explosive crypto prices can be, and with so many bullish catalysts, we think the next move higher will leave many people surprised and sidelined.” Fed rate cutsMany market commentators were similarly enthused last week following an announcement in the U.S. by Jerome Powell, Federal Reserve Chairman, of a 50 basis point rate cut, with the suggestion that further cuts may be implemented going forward. However, not all market pundits are of the same view. Some believe that small interest rate cuts occurring in an overall high rates environment won’t move the needle and that it’s only in a zero rates environment where Bitcoin and crypto skyrocket.  Arthur Hayes, co-founder of BitMEX and Chief Investment Officer (CIO) at the Maelstrom Fund, asserted in his keynote speech at TOKEN2049 in Singapore last week that he wasn’t enthusiastic about rate cuts driving crypto.  “While I think a lot of people are looking forward to a rate cut, meaning that they think the stock market and other things are going to pump up the jam, I think the markets are going to collapse a few days after the Fed’s rates,” he stated. Markets didn’t collapse subsequently although it seems that they are responding to this latest monetary stimulus introduced by China.