Gemini Opening Engineering Center in India

HashKey Enhances User Security with Exchange Insurance PartnershipHong Kong-based cryptocurrency exchange HashKey has taken a step towards bolstering its users’ security by signing a memorandum of understanding (MOU) with fintech firm OneDegree to provide insurance coverage for digital assets held on the platform.Photo by Manson Yim on UnsplashIndustry-wide significanceThat’s according to a report in local news media on Wednesday. The move represents a positive development not only for HashKey users, as it extends protection to both hot wallets and cold storage addresses, but for the overall crypto space.After the trail of destruction left by a series of high-profile crypto collapses in 2022, the overarching crypto space has been crying out for adequate solutions that reassure crypto market participants that their funds are safe when placed on centralized crypto platforms. In the traditional banking world, in most jurisdictions there are insurance-based schemes that guarantee a certain percentage or level of depositors funds. In many cases, these schemes are backed by the central government.Asian crypto market participants have been hit harder than most due to these collapses having nothing in place in terms of deposit safeguards. In Singapore, crypto lenders Vauld and Hodlnaut failed, leaving deposit shortfalls. The city-state’s residents were particularly hard hit when it came to FTX as many Singaporeans had opted to use the exchange given that the authorities had banned Binance from trading there.Xiaoqi Weng, the Chief Operating Officer of HashKey, emphasized the company’s commitment to fortifying its financial, technical, and service infrastructure to offer customers comprehensive protection. The goal is not only to enhance user security but also to contribute to the overall development of Hong Kong’s digital asset ecosystem.Mitigating riskYanlin Guo, Co-founder of OneDegree, underscored the importance of establishing a robust framework for cryptocurrencies that includes insurance to identify and mitigate potential risks effectively. This collaboration between HashKey and OneDegree aims to provide added peace of mind to cryptocurrency investors who entrust their assets to the exchange.HashKey achieved a significant milestone on August 3 when it became the first cryptocurrency exchange to receive regulatory licensing from the Hong Kong Securities and Futures Commission, enabling it to offer services to retail investors. Subsequently, on August 28, the exchange launched its trading services, albeit with relatively low trading volumes.Currently, HashKey Hong Kong supports the trading of Bitcoin and Ethereum, with no options for margin trading or cryptocurrency derivatives. Nevertheless, the exchange accepts fiat deposits in both US dollars and Hong Kong dollars from authorized financial institutions worldwide.The issue of user insurance has been a contentious topic in the cryptocurrency industry, with various exchanges offering different levels of protection. Some exchanges provide no insurance beyond a contractual claim to users’ assets in the event of bankruptcy. Others offer insurance solely for fiat deposits, while a select few, such as Binance and Bitget, extend coverage to crypto-related incidents.HashKey has answered a market need by integrating this insurance product into its trading service. It’s likely that other platforms will follow suit in the not-too-distant future.

NFT Artists Coming to Seoul in September for The Gateway: KoreaThe Gateway: Korea, the world-renowned annual Web3 event held to celebrate the NFT community and digital artists, is set to take place next month as part of the sixth annual Korea Blockchain Week 2023. It will be held on September 7 to 8 at SFactory, a culture and arts hub in Seongsu-dong, Seoul.The Gateway has been organized by the Web3 digital media platform nft now since 2021. This year, it will be co-hosted by the blockchain community FactBlock, which is also the co-host of Korea Blockchain Week.Bringing realms togetherCentered around the theme of convergence — specifically, the convergence of man and machine, East and West, and URL and IRL — The Gateway: Korea aims to connect Web3 technology and Korean culture. It will feature activities such as interactive experiences and immersive galleries.Photo by fabio on UnsplashExploring digital art and visionary voicesThe event will also include various programs, including keynote speeches and fireside chats. Most notably, there will be an exhibition of works by famous digital artists like Beeple, who famously sold his NFT art piece titled “Everydays — The First 5000 Days” for a record-breaking $69 million two years ago at an online auction held by auction house Christie’s.Other invited artists include DeeKay, Emonee LaRussa, and Krista Kim, among others.“I am delighted that we are able to achieve global expansion through the September event in Seoul,” said Matt Medved, Co-Founder, CEO, and Editor-in-Chief of nft now.“Korea is experiencing an unprecedented moment where cultures from around the world intersect. This event will welcome leading creators and innovators in the Web3 field.”

Crypto Exchange Loss Deters Temasek from Investing in Crypto FirmsSingapore’s state-owned investor Temasek has ruled out investing in crypto companies for now, following a $275 million loss in the bankrupt US crypto exchange FTX.Photo by Plato Terentev on PexelsRegulatory uncertainty concernsTemasek’s Chief Investment Officer Rohit Sipahimalani said in a CNBC interview on Tuesday that the regulatory uncertainty in the crypto sector made it very difficult for the fund to make another investment in an exchange.“There’s a lot of regulatory uncertainty in this environment. And I do think that it will be very difficult for us to make another investment and exchange in the middle of all this regulatory uncertainty,” Sipahimalani said.He added that Temasek was not interested in investing in cryptocurrencies, but rather in exchanges that could generate fee-based revenue without taking balance sheet or trading risks. In May, it was reported that Temasek had invested in algorithmic currency system, Array. However, the global investment company was quick to deny those reports.“We’ve never been looking to invest in cryptocurrencies. Even the investment in FTX, we’ll be talking about investing in an exchange, which allowed us to get fee-based revenue without thinking [of] balance sheet risk or any trading risks,” he said. However, he said that Temasek would not be comfortable investing in exchanges given the way things are right now, and that it would depend on the right regulatory framework and investment opportunity.“If you have the right regulatory framework, and we are comfortable with it, and you have the right investment opportunity, there’s no reason for us to not to look at it,” he said. Temasek’s FTX investment was part of its early-stage investment strategy, where it invests in new disruptive technologies and tries to find the next winners, Sipahimalani said.But the strategy backfired when FTX filed for bankruptcy in November, with more than 1.4 million creditors and billions of dollars in liabilities, according to bankruptcy filings.Reputational damageTemasek wrote down its $275 million investment in FTX to zero soon after the collapse of the exchange. However, the bigger concern for the company is the posting of its worst returns since 2016 amid macroeconomic and geopolitical challenges. In the financial year ending in March 2023, the investing behemoth posted a $7.3 billion loss.The FTX loss sparked criticism from Singapore’s Deputy Prime Minister and Finance Minister Lawrence Wong, who called it “disappointing” and damaging for Singapore’s reputation. And that is the greater issue for Temasek relative to FTX.The amount of that particular loss is not that significant, given the size of the company and the scale of losses incurred elsewhere. The issue has been the reputational damage that the company has experienced as a direct consequence. Temasek maintains that it carried out competent due diligence, as have all of the venture capital investors who have all had their FTX investments wiped out.Further details on that due diligence are likely to emerge as Temasek, alongside many other leading investors in FTX, is being sued by creditors on the basis that they gave credence to what transpired to be a fraud. Temasek announced in May that it would cut the salaries of the staff responsible for the FTX investment, after conducting an internal review of the deal.