Xangle and CryptoTimes partner to advance Web3 adoption in Korea and Japan

Beijing-based cryptocurrency mining firm Bitmain has reportedly violated tax regulations in China, with local authorities imposing major fines. According to the reports, Bitmain has failed to pay personal income taxes amounting to $2.4 million, which has led to a penalty of $3.7 million from the Beijing Municipal Office of the State Administration of Taxation. Leading mining equipment manufacturerBitmain Technologies is one of the biggest cryptocurrency mining equipment firms in the world, established in 2013. The company is renowned for its reputation as a manufacturer of crypto mining equipment and solutions. Reports suggest that Bitmain was compelled to end its operations in China in October 2021 as a direct result of the blanket ban on cryptocurrencies that was issued by the Chinese government in September 2021.However, despite these regulatory challenges and the bear market in the cryptocurrency industry in 2022, the company has reportedly continued to achieve success in its business. Bitmain’s latest Antminer product sold out within a minute in December, despite the declining profitability of cryptocurrency mining. On Tuesday, it emerged that North American crypto miner CleanSpark had acquired 45,000 Bitmain Antminers, doubling its mining capacity.The company’s founder, Jihan Wu, established a $250 million fund in September 2022 to help the mining industry during the difficult crypto winter. Following his departure from Bitmain in 2021, Wu established Bitdeer, a new cryptocurrency mining company that served as a spin-off of Bitmain. Crypto crackdownThe fine imposed on Bitmain highlights the continued scrutiny of the crypto industry in China. The country has taken steps to crack down on the crypto market, particularly going after the mining industry. China has banned crypto mining, though it still takes place via underground operations. One major headline in recent weeks related to the fact that a former Chinese Communist Party (CCP) secretary helped a crypto mining operation operate. One China court also ruled that cryptocurrency mining affects the climate negatively.Despite the crackdown, China is making headway with its digital yuan, a central bank digital currency (CBDC). The country continues to run pilots for the CBDC, each more extensive than the last. As China’s digital yuan gains momentum, it has been speculated that the country may use it as a tool to further restrict the use of decentralized cryptocurrencies.Companies operating in China will have to keep a close eye on their operations, especially since the country does not take a favorable stance towards crypto. Hong Kong hubHowever, Hong Kong is opening up to the crypto industry and is attempting to become a crypto hub. The Hong Kong government recently launched a regulatory framework for crypto exchanges, making it easier for crypto businesses to operate within the city. This move has attracted a significant number of crypto firms to relocate to Hong Kong from mainland China.Bitmain’s $3.7 million fine imposed for violating tax regulations in China is a clear sign that the scrutiny of the crypto industry in the country is still prevalent. Despite the challenges and uncertainties, the company has continued to achieve success in its business, and the industry’s regulatory landscape is continuously evolving. Companies in China will have to ensure compliance with all relevant regulations, while also exploring opportunities to operate in crypto-friendly jurisdictions like Hong Kong.

Bybit Suspends UK Services Due to New Marketing RegulationsDubai-based crypto exchange Bybit has taken the proactive decision to suspend services in the UK market ahead of the impending implementation of new cryptocurrency marketing regulations by the Financial Conduct Authority (FCA).Photo by Nick Fewings on UnsplashNew marketing rulesThe FCA is set to enforce these rules starting next month, marking a significant shift in the regulatory landscape for crypto businesses operating in the United Kingdom. In an official announcement published on its website on Friday, Bybit stated: “In light of the UK Financial Conduct Authority’s introduction of new rules regarding marketing and communications by crypto businesses as outlined in the June 2023 Policy Statement (PS23/6) entitled ‘Financial Promotion Rules for Crypto assets,’ Bybit has made a choice to embrace the regulation proactively and pause our services in this market.”Efforts to remainLast week, there had been speculation that the crypto exchange platform would be exiting the UK market. However, Bybit responded on September 14, stating that it intended to maintain its presence in the UK over the long term.Clearly these new rules are proving to be an insurmountable challenge for the exchange platform, given its more recent decision to pause its services. The new rules aim to introduce a cooling-off period for first-time investors, with the ultimate goal of enhancing the transparency and accuracy of crypto product marketing.Their implementation has drawn criticism from within the industry. On Thursday, Nic Carter, Co-Founder of blockchain data aggregator Coinmetrics.io and Partner at Web3-focused venture capital firm Castle Island Ventures, shared his thoughts on the new regulations via X (formerly Twitter): “I have a hard time taking the UK seriously as a domicile for crypto companies based on their completely ludicrous advertising law — clown country.”Withdrawal timelineBybit has outlined a timeline for its withdrawal from the UK market. Starting from October 1, the exchange will no longer accept new user account applications from UK residents.Subsequently, on October 8, coinciding with the enforcement of the new regulations, existing UK users will no longer be able to “make any new deposits, create new contracts, or increase any of their existing positions for all products and services.” However, users will retain the ability to reduce or close their positions and withdraw their funds from the platform.Bybit has set a final deadline of January 8, 2024, for UK customers to manage and wind down their remaining positions. Any positions left open after this date will be automatically liquidated, with the resulting funds made available for withdrawal.While the duration of Bybit’s suspension in the UK remains uncertain, the exchange has expressed its commitment to aligning with UK regulatory requirements in the future. Bybit stated: “The suspension will allow the company to focus its efforts and resources on being able to best meet the regulations outlined by the UK authorities in the future.”Bybit is not the only crypto exchange affected by the UK’s regulatory changes. Other major platforms, including OKX and Binance, are reassessing their strategies in response to the FCA’s stringent guidelines. The new rules have broad implications, with even having a website accessible to UK customers potentially being considered a promotional activity.

Abu Dhabi Puts Forward Legal Framework for Decentralized TechAuthorities in Abu Dhabi, the capital of the United Arab Emirates (UAE) as well as an individual emirate within it, have published a proposed legislative framework for distributed ledger technology.©Pexels/redouan khoulassiThe consultation paper, titled “Proposal for a legislative framework for distributed technology foundations” was published earlier this month by the Abu Dhabi Global Market’s (ADGM) Registration Authority.Promoting investor protectionThe document covers a broad spectrum of aspects relative to digital assets and crypto entities, including corporate governance, insolvency and restructuring considerations, and data protection. The ADGM’s objective with the proposed policy is to advance investor protection, improve market integrity and efficiency, and build towards a comprehensive regulatory framework.Specific proposalsMore specifically, the policy would implicate an enhancement in the protection of whistle-blowers who report misconduct relative to ADGM-regulated companies. Under the proposal, new rules would be introduced to ensure that digital asset platforms operate in a fair and transparent manner. A requirement would be placed on regulated companies to disclose detailed information in relation to beneficial ownership and control structures. Furthermore, the policy seeks to bring about an improved dispute resolution process between the stakeholders involved in ADGM-regulated transactions.Building upon an existing frameworkThe Abu Dhabi regulator’s current legal framework is built upon English common law. It has its own financial services regulator, the Financial Services Regulatory Authority (FSRA) which operates independently and is responsible for supervising and licensing financial institutions and market participants. The FSRA takes a principles-based approach, regulating those market actors attempting to maintain financial stability and integrity, promote market competition and innovation and ensure customer protection.ADGM has sought to act on an international basis by signing agreements with regulatory bodies in the UK, Hong Kong and Singapore, in an effort to enable information sharing and cross-border cooperation.Regulatory activityAt a national level, earlier this year the UAE enacted a digital assets regulatory framework. Earlier this week, the UAE also revealed a federal licensing system for crypto companies. In February, work began on a $2 billion initiative to nurture blockchain and Web3 startups via Hub71, the emirate’s tech ecosystem. The initiative provides startups with access to a broad range of support services as well as potential collaborations with government and investment partners.According to the document, “this Consultation Paper is of interest to any persons operating or planning DLT projects, persons engaging in digital asset-related activities and their legal advisors, as well as DLT participants, associations, and stakeholders.”With that, the ADGM is inviting comments and feedback from members of the public on the proposed changes contained within the consultation paper. To aid public comment, the policy document includes a number of questions that it invites stakeholders to consider as they work towards submitting their feedback.Those interested have until May 12 to take the opportunity to submit their comments and views relative to the Abu Dhabi regulator’s proposed framework.