Bithumb Eliminates Trading Fees to Attract Investors and Gain Greater Market Share

Kuwait Implements Full Ban on Crypto ActivitiesIn a significant move to combat money laundering and terrorist financing, Kuwait has taken a decisive step by announcing a complete ban on all crypto-related activities.Photo by Jan Dommerholt on Unsplash“No legal status”According to a circular issued by the Capital Markets Authority (CMA), Kuwait’s top financial regulator, earlier this week, cryptocurrencies are deemed to have “no legal status” and lack the support of any government or any asset. As a result, the prices of these digital assets are vulnerable to speculative swings, exposing investors to potential substantial losses. Consequently, the CMA asserts that engaging in crypto activities can lead to adverse consequences and financial risks for individuals and businesses alike.The ban extends beyond trading and mining. It also prohibits public companies from offering any cryptocurrency-related services. The CMA emphasized that it has never granted approval for crypto services in the past, and this outright ban reinforces the country’s commitment to curbing illicit financial activities facilitated by cryptocurrencies.Aligning with FATFThe decision comes in the wake of Kuwait’s determination to align with the Financial Action Task Force’s (FATF) global requirements for handling crypto assets. The country is attempting to demonstrate its compliance with international anti-money laundering guidelines by clamping down on digital assets.Kuwait’s approach towards cryptocurrencies diverges significantly from other Gulf states that have embraced the nascent industry with more openness. The likes of the United Arab Emirates (UAE), Saudi Arabia, and Bahrain have previously engaged with crypto assets in various ways.For example, Bahrain granted approval to global crypto exchange platform Binance to provide digital asset services within the country. It’s keen to embrace digital assets as it pivots away from an oil-based economy. The Kingdom recently welcomed plans by Singapore-based private equity firm Whampoa Group to establish a crypto-friendly digital bank there.Meanwhile, Saudi Arabia’s sovereign wealth fund has also invested in several US-based venture capital funds which are focused on crypto and blockchain technologies.Dubai, in particular, has been actively working on establishing a regulatory framework for digital assets, aiming to position itself as a digital hub in the region. The UAE as a whole has recognized crypto assets as securities for several years, fostering a favorable environment for crypto businesses.CriticismNews of the ban also provoked criticism, including commentary from Alex Gladstein, Chief Strategy Officer with the Human Rights Foundation. Gladstein, taking to Twitter, stated: “ Not surprising. I expect all authoritarian regimes (especially gulf tyrannies like the UAE and Saudi Arabia) to follow in Kuwait’s footsteps and eventually pass severe restrictions on citizen use of Bitcoin.” While the UAE trends in the opposite direction, Gladstein is not optimistic about the free use of decentralized cryptocurrencies in the UAE over the longer term.As the global crypto landscape continues to evolve, each country in the Gulf region is adopting unique approaches to address the opportunities and challenges posed by digital assets. While there may be opposition to the technology, decentralized digital assets will benefit from jurisdictional arbitrage in efforts to get this innovation rolled out for the benefit of ordinary people around the world.

Flybit Achieves Top Score in FIU’s Anti-Money Laundering AssessmentSouth Korean virtual asset exchange Flybit said Monday that it has received the highest rating in the comprehensive anti-money laundering (AML) evaluation conducted annually by the Financial Intelligence Unit (FIU) under the Financial Services Commission for all financial companies in Korea.Photo by REDioACTIVE on PixabayRanking among top-performing financial institutionsThe comprehensive AML evaluation is aimed at facilitating the optimal establishment and implementation of strong AML systems. It is operated under a control system where financial authorities assess and oversee a given company’s AML risk management, and the company receives verification on the adequacy of its risk management levels.In this year’s evaluation, Flybit achieved a score of 89.70, scoring in the highest ranks among all financial institutions, including virtual asset service providers (VASPs). This places Flybit among the upper echelons of financial companies that received an “Excellent” rating, which make up only 15% of all evaluated firms.Robust and varied effortsThe exchange explained that it has taken a risk-based approach (RBA) to control and manage its AML risk factors that were found in the results from the FLYBIT Enterprise-Wide AML Risk Assessment (FARA) — an AML risk assessment model developed in-house — and the FIU’s semi-annual AML system compliance evaluation, where FLYBIT was deemed as a “self-monitoring” company.Notably, Flybit operates customized AML education programs for different ranks and job roles within its corporation, which leverages both external and internal resources, including the Korea Banking Institute. It also conducts over 40 hours of advanced-level training — three times longer than the FIU recommendation — for employees directly involved in AML-related tasks.“The basis for this [evaluation] result was the active interest and support of the management, as well as the operation of a specialized AML control system for VASPs,” said Seol Ki-hwan, a compliance officer in charge of AML reporting at Flybit. “In the future, we will continue our efforts, not only in AML compliance but also in fulfilling our responsibilities and roles as a model VASP.”

Bit Origin, the Nasdaq-listed (BTOG) pork processor turned crypto mining infrastructure firm, has acquired 40.5 million Dogecoin (DOGE), the company’s first purchase of the world’s largest memecoin by market cap since it announced that it was establishing a Dogecoin treasury. In a press release published on July 17, the Singapore-headquartered company with operations in the United States, Canada and China, set out that it would become the “first publicly listed company on a major US exchange to accumulate Dogecoin as a core asset.”Photo by Kanchanara on Unsplash$500 million treasury fundingThe firm outlined that it had entered into agreements with accredited investors, implicating the sale of $400 million in Class A ordinary shares in the company. An additional $100 million unlocked via convertible debt brought funding for its Dogecoin treasury to $500 million. Jinghai Jiang, Bit Origin’s CEO and Chairman, asserted that “what started as a joke has evolved into a globally liquid asset with a payments utility.” Jiang asserted that very few digital assets match the settlement speed and scale of community that Dogecoin offers. X Money potentialIn particular, he singled out the potential use of DOGE for X Money, a new payment system that is in the process of being established by Elon Musk’s X social media platform. Alongside many proponents of the cryptocurrency, Bit Origin is hoping that Musk will implement the use of DOGE to power X money. Jiang added:“In an age of broken institutions, Doge embodies a shared culture of optimism and resilience that transcends existing political and financial systems.” On social media, the company outlined that it believes in “Dogecoin not just as a meme, but as a future payments backbone.” Having utilized the services of Chardan Capital Markets as a placement agent, the company has already completed an initial closing of $15 million under the convertible debt facility that has been established.  On July 21, Bit Origin published another press release, detailing the acquisition of 40,543,745 DOGE with the memecoin holding having been purchased at an average acquisition cost of $0.2466 per DOGE.  Nearing inflection point for paymentsCommenting on the development, Jiang stated:“From our experience in mining, we understand the tradeoffs that define proof-of-work systems. We see Dogecoin’s utility potential for micropayments nearing an inflection point, driven by renewed developer activity and broader institutional interest in tokenization.” Dogecoin emerged in December 2013 having been developed by Jackson Palmer and Billy Markus as a joke. The project borrowed much of its code from Bitcoin. Despite having originated as a joke, the project has developed a sizeable community. The digital asset currently holds a market capitalization of $40.5 billion, according to CoinMarketCap data.  Bit Origin rebranded from China Xiangtai Food Co., Ltd. in April 2022. Up until that point, it had been involved in the pork processing business. The company pivoted to crypto mining, partnering with MineOne on a Wyoming mining facility in the United States. The facility was ordered to be shut down by the former Biden administration on the basis of it being a national security risk to have a Chinese project located within a mile of a U.S. Air Force base that houses nuclear intercontinental ballistic missiles.