NEOPIN Strengthens Japanese Market Strategy for Its Global Expansion

Singapore Takes Lead in Regulating StablecoinsSingapore has taken a proactive step by finalizing regulations for stablecoins, solidifying its position as one of the first jurisdictions to do so on a global scale.The Monetary Authority of Singapore (MAS) has established a comprehensive framework that outlines essential prerequisites for stablecoin operations, according to an announcement made by the central bank on Monday.Key highlights include:Reserve Backing: Stablecoins must be backed by reserves consisting of low-risk and highly liquid assets. The value of these reserves should equal or surpass the circulating stablecoin value at all times.Prompt Redemption: Stablecoin issuers are mandated to return the par value of the digital currency to holders within five business days upon redemption requests.Transparency: Issuers must furnish users with “appropriate disclosures,” including audit outcomes of the backing reserves.These regulations will be applicable to stablecoins issued in Singapore that mirror the value of the Singapore dollar or any G10 currency, such as the US dollar. Stablecoins meeting all the requirements outlined by the regulations will receive recognition from the regulator as “MAS-regulated stablecoins.” This distinct categorization will differentiate them from tokens lacking regulation.Photo by CoinWire Japan on UnsplashKey roleWith a market valuation of approximately $125 billion, stablecoins have rapidly emerged as a significant force within the crypto space. Leading the pack are Tether’s USDT and Circle’s USDC, which together command around 90% of the market’s total value.Stablecoins play a key role in the crypto trading market. They allow traders to move in and out of various cryptocurrencies and back into fiat. However, despite their immense influence, stablecoins have largely remained unregulated across the globe. While their primary use has been in trading, stablecoin proponents assert their versatility in various applications, including remittances.Digital currency hubSingapore has been actively positioning itself as a hub for digital currencies, striving to attract foreign companies seeking refuge from the crypto industry’s apprehensions surrounding the current unwelcoming US regulatory approach.Despite their prevalence, stablecoin issuers have faced criticism regarding the transparency of their reserve holdings. Singapore’s regulatory measures aim to bring increased clarity to this sector.Ho Hern Shin, Deputy Managing Director of Financial Supervision at MAS, expressed that the framework’s purpose is to enable stablecoins to serve as a credible digital medium of exchange and bridge the gap between fiat and digital asset ecosystems.Positive industry responseLeading stablecoin firms, Tether and Circle, have applauded Singapore’s new regulations. Yam Ki Chan, Vice President of Strategy and Policy for APAC at Circle, stated that MAS is at the forefront of forward-looking regulators globally, establishing a transparent regulatory framework for stablecoins and digital assets. Paolo Ardoino, CTO of Tether, hailed the framework for providing a clear structure, accountability, and transparency in stablecoin operations within Singapore.The collapse of algorithmic stablecoin UST last year drew regulatory attention to this category of stablecoins. Unlike traditional stablecoins like USDT and USDC, UST was governed by an algorithm and lacked real-world assets as reserves.Singapore’s stablecoin regulations have placed it in a select group of jurisdictions pioneering such rules. Hong Kong is presently undergoing public consultation on stablecoins and plans to introduce regulations in the coming year.

Report Cites Escalating Crypto Use by Pro-ISIS GroupsA recently published report suggests that pro-ISIS terrorist groups in central and southeast Asia and the Middle East are increasing their use of cryptocurrency.According to the report which was published on Friday by blockchain analytics firm TRM Labs, cryptocurrency has become a favored tool for terrorist organizations, with ISIS affiliates showing an increasing preference for the Tron network’s USDT stablecoin. The report highlights that terrorist groups worldwide, including those linked to ISIS, are actively utilizing cryptocurrencies for fundraising purposes, allowing them to attract supporters and bolster their operations.Photo by David McBee on PexelsOn-chain evidenceTRM Labs has been closely monitoring these activities over the past year and has uncovered a growing amount of on-chain evidence. Pro-ISIS networks in countries such as Tajikistan, Indonesia, Pakistan, and Afghanistan have been observed using crypto assets to facilitate their illicit activities, with Tether (USDT) stablecoin on the Tron network (TRX) being their preferred choice for transactions.The disturbing revelations show how recruited fighters were enticed to join ISIS’ Afghanistan affiliate (ISKP) through the use of cryptocurrency fundraising campaigns. One such campaign operated for over a year and managed an address that received approximately $2 million in USDT on Tron in 2022. TRM Labs played a role in getting the operation dismantled, leading to the arrest of Shamil Hukumatov, a senior ISIS fundraiser allegedly responsible for the scheme.Indonesia & PakistanIn Indonesia, individuals used a crypto platform to transfer over $517,000 in 2022 to addresses linked to pro-ISIS fundraising campaigns in Syria, all using USDT on Tron. This connection demonstrates the global reach and sophistication of the terrorist groups’ crypto operations.Additionally, a media unit associated with ISPP, the Pakistan affiliate of ISIS, ramped up its fundraising efforts in the latter half of 2022. The entity sought to capitalize on natural disasters, such as earthquakes in Turkey and Syria, to raise funds by publicizing various cryptocurrency addresses flagged by TRM Labs as associated with the terrorist organization.SyriaTRM Labs’ investigation ultimately points to pro-ISIS fundraising campaigns in Syria as a central hub for cryptocurrency usage by the terrorist group and its supporters. A significant portion of the donations ends up supporting ISIS families in camps like al-Hol and Roj, as well as funding local cryptocurrency exchanges that facilitate the group’s activities.For TRM Labs, the identification and tracking of these campaigns and their donors are crucial steps in mapping out and potentially disrupting pro-ISIS networks worldwide. Their efforts aim to mitigate the risks posed by the misuse of cryptocurrencies in financing terrorism and illegal activities.The rising adoption of cryptocurrencies by terrorist organizations poses significant challenges to law enforcement agencies and regulatory authorities worldwide. It’s a worrying development for legitimate users of digital assets as it may result in far more heavy-handed regulation as a direct consequence.Under these circumstances, it is crucial for the crypto community, governments, and regulatory bodies to collaborate in implementing effective safeguards against the abuse of digital currencies for nefarious purposes. Only through collective action can this threat be neutralized.

Web3 Security Startup Blockaid Raises $33M in FundingIsraeli enterprise Blockaid, a Web3 security startup founded by two former Israeli military cyber intelligence personnel, has secured a total of $33 million in funding.The recent Series A round of $27 million was led by Ribbit Capital and Variant and saw participation from Cyberstarts, Sequoia Capital, and Greylock Partners. This funding totals $33 million when consolidated with an initial $6 million seed round.Photo by Shubham’s Web3 on UnsplashSecuring Web3 against threatsBlockaid offers comprehensive Web3 security solutions designed to combat crypto fraud, phishing, and hacks. Its approach involves the examination of both on-chain and off-chain transactions. In this way, the firm is seeking to set itself apart from competitors like CertiK and Cyvers.The company’s decentralized application (dApp) Scanning Engine simulates and validates blockchain transactions before they are executed. This process takes place within Blockaid’s dApp Scanning Sandbox, which also assesses the potential maliciousness of interactions and dApps.Since its inception in September 2022, Blockaid claims to have successfully scanned over 450 million transactions, preventing over 1.3 million attacks and safeguarding more than $7.1 billion in assets. Furthermore, the Israeli startup’s efforts have averted losses of over $500 million in the Web3 ecosystem.Recent success storiesOne notable success story involves the prevention of a phishing attack targeting Ethereum co-founder Vitalik Buterin’s X (formerly Twitter) account. Due to Blockaid’s security measures, users’ wallets remained protected, though unsecured wallets with approximately $700,000 in assets, including valuable NFTs, suffered losses in the attack. Blockaid has been involved in enhancing security for prominent platforms, including MetaMask, OpenSea, Zerion Wallet, and Rainbow Wallet.With the newly acquired funds, Blockaid aims to expand its client base and meet an increasing demand for its security solutions. Ido Ben-Natan, co-founder and CEO of Blockaid, expressed confidence in their ability to support both existing and new customers during these market conditions. Blockaid operates from New York and Tel Aviv and plans to bolster its workforce by hiring additional personnel across various functions.Addressing the Web3 security challengeThe significance of Blockaid’s work becomes even more apparent when considering the current challenges in the Web3 space. In recent years, the Web3 sector has faced a rising tide of fraud, phishing attempts, and hacks. As noted by Ben-Natan, Web3 has experienced staggering losses, with $14 billion stolen in just one year, surpassing losses in all non-crypto cyber-crime combined. Additionally, one in ten decentralized applications (dApps) has been identified as malicious, making even crypto-savvy users susceptible to malicious actors.Furthermore, there is a growing concern about nation-state actors actively targeting and stealing user funds for their economic gain. In this adversarial and uncertain environment, the usability and security of Web3 must be enhanced to unlock its full potential. Blockaid’s innovative security tools aim to provide the necessary protection for Web3 builders and users.There’s no doubt that Web3 has to become more seamless and far more secure if it is to appeal to the mass market. In its blog post announcing the funding round, the project stated:”We believe that users shouldn’t have to know they’re interacting with crypto. We believe that web3 should just work, and work securely.”