BitKeep Changes Name to Bitget Wallet Following Acquisition

U.S. regulator, the Commodity Futures Trading Commission (CFTC), has fined Seychelles-headquartered crypto prime brokerage Falcon Labs as part of an overall settlement with the company.  The CFTC had found that the company had operated as an unregistered futures commission merchant (FCM) and furthermore, that it had enabled access to digital asset exchanges without the requisite registration.Photo by Joshua Hoehne on UnsplashSettlement termsIn a press release published to its website on May 13, the CFTC set out the nature of its settlement with Falcon Labs. The parties have agreed that Falcon Labs must discontinue its activities in acting as an unregistered FCM, with particular emphasis on it having provided U.S. individuals with access to digital asset derivatives trading.  Furthermore a fine of $1,179,008 has been applied in disgorgement and in addition, Falcon will have to pay a civil monetary penalty of $589,504. These penalties have been significantly reduced by comparison with the CFTCs original ask, on the basis that Falcon Labs cooperated fully with the CFTC’s Division of Enforcement over the course of the regulator’s investigative process into the activities of the company. In its statement the regulator set out its intent relative to enforcement going forward. Ian McGinley, the CFTC’s Director of Enforcement, stated:”The CFTC is taking the fight one step further by, for the first time, charging an intermediary that inappropriately facilitated access to those exchanges. Today’s action highlights that the CFTC will not hesitate to charge any entities—exchanges or intermediaries—who are providing customers access to digital asset products and services that require registration but have failed to appropriately register.” McGinley added that “the CFTC’s enforcement program has made clear it will not tolerate digital asset exchanges that fail to register with the CFTC or comply with the agency’s rules that maintain integrity in the derivatives markets.” No admission of guiltIn responding to the CFTCs original complaint, Falcon Labs tried to up the ante in terms of compliance. It moved to improve customer identification controls. As a consequence of its market position as a trading intermediary Falcon Labs enabled customer trading on a number of digital asset exchange platforms.  That activity included facilitating U.S.-based institutional customers relative to crypto derivatives trading. It allowed its own account with various digital asset trading platforms to be used, through a system of sub-accounts, by its customers, oftentimes without adequate customer information having been sought. In reaching this settlement with the CFTC Falcon Labs has not made any admission of guilt relative to the regulator’s findings. Alongside paying the agreed upon fines, it will voluntarily agree to adhere to the implementation of improved controls and to withhold its services from user groups that are deemed to be restricted, including all U.S. nationals. Taking to the X social media platform to comment on the matter, Mike Sellig, a partner at New York-based law firm Willkie Farr & Gallagher, claimed that the settlement demonstrated that the CFTC was following in the footsteps of the Securities and Exchange Commission (SEC), establishing “a body of widely applicable precedent.”

Leading Chinese gaming company lines up $100M crypto investmentAs yet another indicator of the rising trend of institutional crypto investments, China’s premier board and card game company, Boyaa Interactive, has unveiled plans to invest up to $100 million in cryptocurrency assets, with a focus on Bitcoin (BTC) and Ethereum (ETH).News of Boyaa’s plans emerged following a disclosure from the Hong Kong Exchanges and Clearing Limited, which stated that the company will distribute notices regarding its crypto investment plans during an extraordinary general meeting (EGM). The relevant details are expected to have been supplied to shareholders on or before Nov. 30. The company has emphasized its intention to ensure transparency while adhering to listing rules throughout this process.Photo by Traxer on UnsplashDigital asset acquisition over a 12-month periodThe decision to delve into the world of cryptocurrencies aligns with Boyaa Interactive’s commitment to strengthening its presence in the evolving Web3 landscape, as highlighted by the company’s board of directors. The proposal outlines a comprehensive strategy to acquire the assets over a 12-month period, pending approval at the upcoming EGM.The planned acquisition involves allocating approximately $90 million equally between Ethereum and Bitcoin. The remaining $10 million is earmarked for stablecoins Tether (USDT) and USD Coin (USDC). Boyaa Interactive asserts that the actual acquisitions will depend on open market conditions, with a commitment not to pay premiums exceeding 10% of prevailing market prices. Funding for this initiative will be sourced from the company’s existing cash reserves.The board will play a crucial role in determining the specific cryptocurrencies to acquire, their allocation ratios and the optimal timing for purchase. The emphasis is on prudent risk management, aligning with Boyaa’s business development strategies.Diversification strategyThe company justifies its choice of Bitcoin and Ethereum by citing their alignment with its long-term development goals. In the document, Boyaa Interactive highlights the importance of investing in cryptocurrencies with robust market liquidity and substantial market values. Bitcoin, Ethereum, USDC, and USDT, chosen for their high market liquidity, align seamlessly with Boyaa’s strategic vision.In its stock exchange filing, it justifies these plans on the basis of a desire to diversify its holdings. The document reads:”[The] purchase of cryptocurrencies is also an important arrangement for the Group’s asset allocation, as allocating part of the Group’s idle reserve funds in cryptocurrencies can serve as a diversification to holding cash in treasury management, and a measure to balance investment risks and returns.”Growing asset acceptanceThe move into the cryptocurrency market comes at a time when institutional investors are increasingly flocking to major assets like BTC and ETH. Reports indicate significant inflows of institutional funds into these cryptocurrencies, setting the stage for what appears to be an extended bull market.Boyaa first showed an interest in holding crypto on its balance sheet back in August when it proposed allocating $5 million towards cryptocurrency investment. The company following up with a $100 million investment serves as a testament to the growing acceptance and integration of cryptocurrencies within mainstream business strategies.

Hana Financial and FSS join hands to foster young digital talentHana Financial Group said Sunday that the South Korean financial holding company held a proclamation ceremony for the second Hana Digital Power On Project last Thursday — a program designed to cultivate young digital talent in emerging technologies like blockchain and big data — at the Hana Global Campus in Incheon.Support from tech juggernautsThe program, sponsored by the Korean Financial Supervisory Service (FSS) and several tech giants such as Google, Amazon Web Services, Microsoft, and SK Telecom, was first held last year. This year’s project saw the participation of over 50 individuals forming 16 teams, Hana said.Photo by Marvin Meyer on UnsplashCompetitions and trainingA contest centered around new digital technology was also held on the same day. Participating teams proposed ideas for solving issues that may arise in the financial industry using artificial intelligence, blockchain, cloud computing, and big data technologies.Winning teams will be rewarded up to KRW 10 million (approximately $7,500) in prize money along with the opportunity to visit several information technology companies. They will also have the chance to participate in a hackathon competition organized by SK Telecom to further develop their ideas.They will also undergo a four-week digital education program put together by Google, Microsoft, and Amazon, as well as practical training provided by the Hana Institute of Technology. Notably, graduates of the program will be exempt from going through the initial screening process when applying for positions at Hana Financial Group.Officials including Lee Bok-hyun, Governor of the FSS; Lee Hoon-kyu, Director of Future for Youth Foundation; and Ham Young-joo, Chairman of Hana Financial Group, were in attendance.“We will strive to cultivate young digital talent and create employment opportunities for the youth,” said Hana Chairman Ham. FSS Governor Lee also added that there is a need to secure interdisciplinary talents capable of generating innovative ideas.