AIITONE Launches PoC Platform for Security Token Projects in South Korea

In a press release published by Business Wire on Nov. 20, American crypto custodian BitGo announced the launch of its Singaporean subsidiary company, BitGo Singapore Pte. Ltd. The company has set out the key features that the BitGo Singapore platform intends to offer going forward. These include secure, regulated cold storage. The platform is offering digital asset custody support in respect of over 1,100 digital assets. BitGo claims that the range of assets supported far exceeds that offered by competitors in the digital asset custodian space. Photo by Joshua Ang on UnsplashRegulatory complianceIn January, the company achieved in-principle approval (IPA) relative to a Major Payment Institution (MPI) license from local regulator the Monetary Authority of Singapore (MAS). By August the company had satisfied regulatory requirements sufficiently to be awarded a full MPI license. The company will also offer clients electronic and voice trading, allowing them to access deep liquidity directly through the digital assets held in cold storage. BitGo had deployed its Go Network to effect automated settlement. It claims that the Go Network mitigates counterparty risk through the use of delivery versus payment (DVP) settlement processes, while enabling access to exchange liquidity. Token management is another area that the firm identified in its press release as a feature of its overall service. Back in September, the company rolled out a streamlined token management service for crypto foundations. Broadening APAC service offeringThe crypto asset custodian has launched this separate subsidiary in Singapore with the purpose of broadening its service offering within the Asia-Pacific (APAC) region. BitGo Singapore CEO Youngro Lee stated that BitGo is “thrilled to launch BitGo Singapore and offer the APAC region a best-in-class suite of digital assets solutions and regulated infrastructure services.”  Lee added that the new regional entity is committed to providing its clients “with the highest quality products and services while maintaining strict regulatory standards,” while also looking forward to “further strengthening the APAC digital assets ecosystem.” In expanding the reach of its service offering, BitGo has engaged in a collaborative approach. It has partnered with companies such as Vancouver-headquartered Lightning Network infrastructure provider Neutron Pay, and crypto market maker Wintermute, who announced in July 2023 the planned establishment of a base in Singapore. Taking to X on Nov. 21, Neutron Pay stated: “We're excited to announce a strategic partnership with @BitGo Singapore, paving the way for expansion of our #Bitcoin and #LightningNetwork services across Asia-Pacific (APAC).” The firm’s CEO Albert Buu said that “by leveraging BitGo's robust custodial infrastructure, we aim to enhance our ability to serve businesses throughout Southeast Asia.”  Wintermute Co-Founder Yoann Turpin offered his own thoughts on the BitGo Singapore announcement, stating: “Having recently expanded our own footprint in the region, we see strong potential for collaboration in addressing the sophisticated needs of institutional players. By working together, we aim to build a more robust environment for institutions and drive meaningful growth across APAC’s digital asset markets.” At the time of writing, 29 crypto-sector firms, including the likes of Circle, Coinbase and Blockchain.com, have acquired full MPI licenses to trade in the city-state of Singapore. 

UAE strengthens regulatory oversight of virtual asset service providersThe Central Bank of the United Arab Emirates (CBUAE) and other relevant authorities in the Middle Eastern country have issued new joint guidance for virtual asset service providers (VASPs) operating within the UAE.Photo by Thomas Drouault on UnsplashPushing back against unlicensed VASPsThese guidelines aim to prevent VASPs from operating without proper licenses in the jurisdiction, demonstrative of the country’s efforts in fighting financial crimes and maintaining the integrity of its financial system.The document outlines the penalties for VASPs operating in the UAE without a valid license. They will face civil and criminal sanctions, including financial penalties against the entity, its owners and senior managers. Moreover, the guidance cautions that licensed financial institutions (LFIs), designated non-financial businesses and professions (DNFBPs) and licensed VASPs that engage with unlicensed VASPs will be subject to law enforcement actions.The National Anti-Money Laundering and Combating Financing of Terrorism and Financing of Illegal Organizations Committee (NAMLCFTC) is the specific entity responsible for having issued the guidance in conjunction with the central bank.VASP ‘red flags’As part of those guidelines, a list of “red flags” for VASPs has been included. Through reliance on these indicators, it’s hoped that bad acting VASPs can be identified by consumers and other industry stakeholders. The document refers to red flags such as the lack of regulatory licensing, no physical presence in the UAE, pressure being applied by a platform to invest quickly and a lack of regulatory disclosure as items to look out for.Otherwise, the guidance encourages stakeholders to be suspicious of unsolicited contact being employed as a means of operation by a platform, the lack of a record of compliance, poor website and communications and the offer of unrealistic promises.Lastly, the document suggests that people should be observant of any illicit use of virtual currency, the use of fake wallets, engagement in terrorist financing and a lack of consumer protection as red flag items.The new guidance instructs all LFIs, DNFBPs and licensed VASPs to report transactions involving suspicious parties. The guidance also emphasizes that information related to unlicensed virtual asset activities can be reported through whistleblowing mechanisms.Exiting FATF ‘grey list’The release of these guidelines is part of an effort by the UAE to be removed from the Financial Action Task Force’s (FATF) “grey list.” The grey list indicates deficiencies in a country’s anti-money laundering (AML) and counter-terrorist financing (CTF) regimes.Improving control mechanisms relative to crypto has been a theme for several countries who are similarly looking to exit the FATF grey list. Last week, it emerged that Turkey is crafting new regulations governing crypto in an effort towards “grey list” removal. Earlier this year, Pakistan announced a renewed ban on cryptocurrency, as part of its efforts to remain off the grey list it had been listed on over an extended period.The UAE was placed on the FATF’s grey list in March 2022 due to AML and CTF deficiencies. However, the country made a commitment to work with the global watchdog to improve its regulatory frameworks in these areas.

Bitcoin Miners Likely Selling at $28K Level, Says MatrixportAccording to a report by Singapore-headquartered digital asset financial services provider Matrixport, Bitcoin (BTC) is facing selling pressure at the $28,000 price level, possibly due to miners offloading their newly mined coins.The report, cited by CoinDesk on Friday, suggests that miners are being compelled to liquidate their inventory as profit margins have contracted in recent weeks.Photo by Pixabay on PexelsHashrate all-time highMining has become an intensely competitive and often unprofitable endeavor due to the ongoing rise in Bitcoin miner difficulty. The hashrate, or measure of how easily miners can discover a new block of Bitcoin reached an all-time high earlier this week. Markus Thielen, Head of Research at Matrixport, noted that given the current input cost and potential revenue expectations, most machines produced before 2022 appear to be unprofitable.“At the current input cost and potential output revenue expectations, most of the machines produced before 2022 appear to be unprofitable,” Thielen wrote.Forced sellingConsequently, miners are forced to sell their inventory at the current level rather than holding out for higher prices, which Matrixport anticipates. The report highlights the significant upside potential for miners if Bitcoin prices were to increase by 10% or more, as profitability could quadruple.The narrowing profit margins for miners reflect the challenges they face in a highly competitive market. As mining difficulty continues to rise, miners must allocate more resources and computing power to mine new coins, reducing their profitability. The situation is particularly tough for miners operating older machines, which are less efficient and more costly to run.The selling pressure exerted by miners can have a short-term impact on Bitcoin’s price. However, Matrixport’s analysis suggests that if Bitcoin experiences a notable price increase, miners could see a substantial improvement in their profitability. This potential upside convexity creates an incentive for miners to continue their operations and withstand the current market conditions.Ordinals bring increased feesOn the other hand one recent development that is assisting miners is the increase in transaction fees, with the development of Bitcoin Ordinals and BRC-20 tokens over the course of the past six months. That interest seems to be ongoing, and if anything we’re likely to see further development of tokens running on top of the Bitcoin blockchain. On Thursday, Seychelles-based crypto trading platform OKX proposed a new BRC-30 token standard which would enable staking of those tokens, alongside staking of bitcoin.Singapore-based Matrixport is a portfolio company of crypto investment venture capital firm Foresight Ventures, which is also headquartered in Singapore. The firm provides a suite of products that it is positioning to be innovative and easy to use, offering an all-in-one crypto financial services platform, enabling users to earn, invest, loan, and trade digital assets.The Matrixport report indicates that miners are likely selling their Bitcoin at the $28,000 level due to squeezed profit margins. While this selling pressure may affect short-term price dynamics, the potential for increased profitability if Bitcoin prices rise significantly provides miners with an optimistic outlook for the future.