Kronos Research experiences significant cybersecurity breach

Beijing Municipal Government Unveils Web3 White PaperIn what is being perceived by many as a significant development, the Beijing Municipal Science and Technology Commission, also known as the Administrative Commission of Zhongguancun Science Park, has released a white paper titled “Web3 Innovation and Development.”Photo by zhang kaiyv on PexelsThe “inevitable trend” of Web3This announcement, as reported by local news outlet, The Paper, was made during the Zhongguancun Forum. The Forum is an event focused on technological advancements and innovation. The white paper acknowledges Web3 technology as an “inevitable trend for future Internet industry development.”The objective of the Beijing Municipal Government is to establish the city as a global innovation hub for the digital economy. To support this ambition, the government plans to allocate a minimum of 100 million yuan (approximately $14 million) annually over the next two years.Enhanced policy supportThe white paper points towards Beijing’s intention to enhance policy support and accelerate technological advancements to foster the growth of the Web3 industry. This strategic move aligns with what appears to be China’s evolving stance toward the crypto industry, as the government aims to leverage the potential of emerging technologies.The timing of the white paper release coincides with the upcoming implementation of new digital asset regulations in Hong Kong. At the beginning of next month, the Securities and Futures Commission (SFC) of Hong Kong will introduce new rules for the cryptocurrency sector, permitting retail investors to engage in crypto trading. This stands in stark contrast to the current regulatory environment in the United States, where authorities have been tightening their control over cryptocurrencies.Second guessing China’s approach to cryptoChina had previously banned the use of cryptocurrencies in 2021. Notwithstanding that, the release of the Web3 white paper may suggest a potential shift in the country’s approach. Notably, on May 23, China Central Television, a state-owned media outlet, aired a segment focused on cryptocurrencies, prominently featuring the Bitcoin logo and a Bitcoin ATM in Hong Kong.This coverage holds significance, but the fact that the video was quickly taken down from the broadcaster’s website casts doubt on just how far down the crypto rabbit hole China is willing to go.Changpeng Zhao (CZ), the Founder and CEO of global crypto exchange Binance, tweeted out that the timing of the publication of the paper is apt given other blockchain and crypto-related initiatives taken on by various Chinese entities. A recent study suggested that Hong Kong is emerging as a leading jurisdiction when it comes to its crypto readiness.It remains to be seen how these developments will unfold and whether Beijing’s proactive approach will pave the way for further integration of blockchain technology and cryptocurrencies in China’s digital economy.For the time being, with the release of the white paper, Beijing appears to have taken a significant step forward in shaping its future as a leading player in the global Web3 landscape. However, to what extent Beijing is ‘all in’ on crypto remains imponderable.

Crypto.com Complies with UK FCA’s New Digital Asset RulesWhile some Asian crypto platforms are struggling to comply with the United Kingdom’s Financial Conduct Authority (FCA) regarding new marketing-related rules that took effect on October 8, Singapore’s Crypto.com has confirmed its successful compliance. The firm is registered as FORIS DAX UK LIMITED on the FCA website.Photo by Paul Fiedler on UnsplashContinuing support for UK customersAs a result, UK customers can continue to access Crypto.com’s products and services without disruption. The company emphasized its commitment to strengthening its platform and presence in the UK market. Crypto.com stated that it fully supports measures aimed at enhancing consumer safety and security in the cryptocurrency industry. The company also expressed its ongoing cooperation with UK and international regulators to foster consumer confidence in the crypto sector.Effective from October 8, the FCA’s updated guidelines mandate that all crypto firms marketing their services to UK consumers must register with the FCA and adhere to relevant standards concerning risk disclosures and marketing practices.Regulatory compliance challengesWhile Crypto.com has managed to remain compliant, that’s not the case for all large and well-known crypto platforms. The FCA recently expanded its scrutiny of digital currency exchanges by adding Huobi and KuCoin to its list of unapproved and unregistered firms.The FCA alerted clients to the fact that these service providers were offering various crypto services in the UK without obtaining regulatory approval. This development follows a recent warning from the FCA, which highlighted several other crypto-focused companies.Binance’s compliance difficulties2023 has seen global crypto platform Binance struggle with regulatory compliance in various markets worldwide. In some jurisdictions where it has either decided to withdraw from the market or been asked to leave, the firm has taken the approach of still maintaining exposure to that market by establishing a partnership with a locally registered firm.In the UK, Binance has partnered with Rebuildingsociety.com, a peer-to-peer lending platform. However, its local partner has fallen foul of the UK's FCA. On Tuesday, the UK regulator issued a notice clarifying that Rebuildingsociety.com was not authorized to “approve the content of any financial promotion for a Qualifying Cryptoasset for communication by an unauthorized person.”Dubai-headquartered crypto exchange Bybit is another crypto business that has struggled with the FCA's new regulatory requirements. Last month the exchange denied reports that it was preparing to leave the UK market due to the new strict marketing rules. The following week the exchange confirmed that it would be leaving the UK market, ahead of the introduction of the new crypto marketing regulations.Crypto.com had received registration approval from the FCA in August 2022. At the time, CEO Kris Marsazalek stated:“We are committed to the UK market and we look forward to developing our platform and presence in the UK further by expanding our offering to customers, while continuing to work with regulators.”In June, the firm acquired a Major Payment Institution (MPI) license in its home market of Singapore from the Monetary Authority of Singapore (MAS). Around the same timeframe, the firm received a minimum viable product (MVP) license from the Virtual Assets Regulatory Authority (VARA) in Dubai.

Korean crypto firms relocating for cheaper rent amid prolonged crypto winterAs the prolonged crypto winter continues to affect the industry, blockchain and cryptocurrency firms in South Korea are under pressure to economize. Faced with a deteriorating business and investment climate, numerous companies are reducing their office space and relocating to areas with cheaper rent, according to a Wednesday (local time) report by local media outlet Bizwatch.Photo by Nastuh Abootalebi on UnsplashReducing operating costsBizwatch reported, citing industry sources, that Parameta (previously Iconloop), a blockchain enterprise, has relocated its headquarters from Seoul’s upscale Signature Towers to a more economical shared office space this year. This strategic move is interpreted as an effort to slash operating costs by choosing a location with significantly lower rental expenses. A Parameta representative confirmed that the relocation was part of measures to reduce costs.Binance-backed Streami, which runs the Gopax cryptocurrency exchange, is also reportedly contemplating an office relocation after downsizing its staff. The company’s workforce has dwindled from over 100 employees earlier in the year to approximately 60 by September. A Streami spokesperson has indicated that they have yet to reach a decision regarding the relocation. Streami’s situation is particularly significant due to its ongoing challenges in securing approval from financial regulators for changes to its executive representatives since Binance acquired a majority stake. Recently, Streami appointed a new CEO from the domestic tech firm CityLabs, which has also purchased an 8.55% stake in Streami and intends to further increase its investment in the exchange operator.Similarly, Korea Digital Exchange, the operator of cryptocurrency-only exchange Flybit, has listed for sale one of its two floors of office space in Seoul’s Seocho district. This move comes nearly a year and eight months after the company expanded into the current premises.Changes in workforce sizesBefore the crypto winter, when the Korean crypto market witnessed unprecedented growth, numerous companies expanded their offices to make room for the growing workforce, bolstered by rising revenues. For instance, Dunamu, which runs Upbit — Korea’s largest crypto exchange — garnered attention for acquiring pricey real estate in Gangnam to construct a new office.However, the boom was short-lived. With the onset of the crypto downturn, numerous companies found themselves having to shut down. Blockchain technology firms are facing similar challenges, with many developers steering away from the sector due to persisting market instability. For many of these firms, the workforce has diminished as they’ve either undergone restructuring or struggled to recruit replacements for departing employees.An industry insider remarked that reducing operating costs is a logical step for companies facing a lack of investment and revenue. They noted that this only applies to those resilient enough to weather the hardship, adding that many cryptocurrency-only exchanges are likely to shut down completely in these challenging conditions.In fact, Cashierest, a crypto-only exchange, recently announced the cease of operations. Concerns about the company had been growing after staff layoffs and the departure of its CEO in July. A thorough analysis by the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) found that, of the 21 Korean crypto-only exchanges, 18 are operating with negative shareholder equity as of the first half of this year. Moreover, 10 did not earn any revenue from transaction fees during the same period.Crypto-only exchanges typically see lower trading volumes as they cannot facilitate trades in Korean won. In South Korea, only five trading platforms — Upbit, Bithumb, Coinone, Korbit and Gopax — are officially registered with the financial regulator to conduct fiat-to-crypto transactions.