India tops global crypto adoption despite regulatory hurdles: Chainalysis report

Wemade has agreed to onboard Ritmi – a blockchain-based, Free-to-Play dance and rhythm mobile game built by UAE-based game developer Ritmi Games – onto its blockchain gaming platform WEMIX PLAY, according to an official Medium announcement on Friday (KST). It will be the first game of its kind in the WEMIX ecosystem.Photo by Kelli McClintock on UnsplashRhythmic funIn Ritmi, players can earn points by following the motions displayed on the screen in time with the music playing in the background. The game offers engaging and entertaining content like customizable avatars, personal music collections and dance battles. “We are pleased to partner with Wemade as pioneers in the gaming industry. We believe that together Wemade and Ritmi can sound harmonious in the gaming market,” said Ritmi Games CEO Kate Koroleva. Wemade’s global expansionThis rides on the coattails of Wemade’s recent efforts to expand its presence in the UAE. Last month, it became the first South Korean gaming company to form a partnership with the Dubai International Financial Centre’s (DIFC) Innovation Hub, where it plans to establish a WEMIX Play Center. It also partnered with the Dubai Chambers to contribute to advancements in the global Web3 and gaming industry.  On a broader scale, Wemade has been consistently securing partnerships with various developers in other regions as well, including North America, Europe and Asia. 

In the ongoing legal tussle over cryptocurrency assets, the High Court of Singapore has rejected a plea by the bankrupt crypto hedge fund Three Arrows Capital (3AC) to dismiss a lawsuit filed by Arthur Cheong, the founder of Web3 investment firm DeFiance Capital. This ruling represents a pivotal moment in the $140 million dispute, shedding light on the ownership and control of assets, while building upon DeFiance Capital’s previous success back in August of last year in having its preference for jurisdiction in Singapore endorsed.Photo by Tingey Injury Law Firm on UnsplashRecognizing assets held in trustOn Jan. 26, a Singapore judge ruled against 3AC's request to have Cheong’s claim thrown out, stating that DeFiance Capital has adequately demonstrated the existence of a Singapore-based trust safeguarding its assets. This revelation could potentially shield DeFiance Capital from 3AC's liquidators, marking a crucial juncture in the legal battle. The dispute traces back to an agreement where Cheong was set to launch an independent fund on the 3AC Group platform, with ownership and control vested in DeFiance Capital. This fund, leveraging 3AC's infrastructure, faced disagreements over the transfer of certain assets, whose undisclosed value became a point of contention in court documents. The downfall of the $10 billion 3AC hedge fund, responsible for the "Super Cycle" thesis predicting perpetual crypto price increases, had widespread repercussions in the crypto industry. DeFiance Capital bore the brunt of this collapse and the recent court ruling brings the firm closer to resolving the aftermath favorably. The ongoing argument holds strategic importance for DeFiance Capital, as the investment firm challenges any legal obligation for its shareholders to compensate 3AC creditors. "Wassielawyer," a pseudonymous restructuring attorney advising DeFiance Capital's founder Arthur Cheong, highlighted the significance of this stance on social media. Positive signThe judge's acknowledgment of the trust, while not conclusive, is viewed as a positive sign for DeFiance Capital. In a series of posts on the X social media platform, Wassielawyer outlined on Thursday that he sees this as "much-needed vindication" for Cheong, signaling a potential turn in favor of the investment firm. Wassielawyer emphasized that DeFiance Capital merely utilized 3AC's legal structure, without commingling operations. This distinction becomes crucial as carefully drafted legal documents form the basis for 3AC creditors attempting to seize DeFiance Capital funds. The restructuring professional added:”[DeFiance Capital] have on the basis of the substantive facts, ran an argument that the assets of DCs should not be used to pay back 3AC creditors. This eventuality would be manifestly unjust, enriching the creditors of 3AC at the expense of innocent DC investors.” Once a major player in the crypto hedge fund arena, 3AC's demise resulted from exposure to Terra, staked Ethereum and Grayscale's Bitcoin Trust. The bankruptcy filing on June 30, 2022, marked the end of an era for the once-mighty fund. Established in 2020, DeFiance Capital specializes in crypto investments, focusing on decentralized finance and GameFi. It has supported projects such as dYdX, Aave and Lido. This decision establishes a precedent for similar cases, particularly in jurisdictions like Singapore, emerging as pivotal hubs for cryptocurrency and blockchain-related activities. The outcome holds implications for how such legal disputes will be handled in the future, shaping the landscape of crypto-related legal proceedings. 

bitFlyer Moves to Comply With Travel RulebitFlyer, a Tokyo-based Bitcoin exchange and marketplace, has taken steps to comply with the travel rule, an anti-money laundering measure promoted by Paris-based global financial crime watchdog, the Financial Action Task Force (FATF).The rule necessitates the exchange to pass on customer data to a recipient exchange where the crypto transaction involves a value of greater than $3,000.Photo by Ivan Babydov on PexelsImplementing TRUST technologyThe company announced on Tuesday that these measures, which went into effect in the afternoon local time, include restrictions on transfers from the exchange to platforms that do not comply with the Travel Rule Universal Solution Technology (TRUST). This technology was initiated by Coinbase, the US-based crypto exchange, to ensure that firms adhere to FATF’s requirements. The mechanism is a product of the collaboration of Coinbase alongside leading crypto exchanges such as Kraken, Gemini, BitMEX, Bittrex, Okcoin, and others.To enforce these measures, bitFlyer has established notification requirements for receiving and sending crypto to TRUST-compliant platforms in a list of 21 countries. The list includes Japan, Israel, Gibraltar, Hong Kong, the Bahamas, and Switzerland. Additionally, bitFlyer has limited transfers to compliant platforms in these countries to TRUST-compatible crypto assets such as bitcoin (BTC), ether (ETH), and several ERC-20 tokens.On the other hand, transfers to and from countries not on the list, as well as transfers to private self-custodied wallets, can be conducted using any crypto asset available on the bitFlyer platform.Compliance with Japanese legislationWhile the exchange refers to travel rule compliance relative to 21 countries, it’s unlikely to be a coincidence that the Japan-headquartered company has implemented this compliance measure a couple of days before Japan is set to introduce a FATF travel rule compliance requirement which comes into effect on June 1.These measures align with Japan’s recent commitment to implementing FATF’s travel rule, which requires the sharing of crypto transaction information between platforms. The watchdog had urged advanced economies in the G7 to take the lead in combating money laundering through digital assets.Increasing regulatory demandsIt is worth noting that bitFlyer’s US unit recently faced a fine from US financial regulator, the New York State Department of Financial Services (NYDFS), due to its failure to meet cybersecurity requirements. The incident highlighted the increasing scrutiny and regulatory demands placed on crypto exchanges to ensure the security and compliance of their operations.By aligning itself with the FATF Travel Rule and implementing these restrictions, bitFlyer aims to enhance its anti-money laundering efforts and contribute to global efforts to combat financial crimes in the crypto space, helping to steer itself clear of potential issues with global regulators.As the crypto industry continues to evolve, regulatory frameworks and standards are being established to address concerns regarding money laundering and illicit activities. Compliance with such regulations is essential for crypto exchanges to foster trust among users, attract institutional investors, and contribute to the overall maturation and legitimacy of the crypto ecosystem.