Conflict Identified as Crypto.com Trading on its Own Platform

Zipmex proposes creditor repayments of 3 cents on the dollarBeleaguered Singaporean crypto exchange Zipmex has unveiled a restructuring proposal aimed at repaying creditors. According to a report published by Bloomberg on Wednesday, the initial offer stands at 3.35 cents for every dollar of the creditors’ claims.Photo by Alexander Grey on UnsplashRestructuring challengesThis restructuring proposal unfolds against the backdrop of a challenging period for Zipmex, triggered by the aftermath of last year’s crypto price downturn. The crypto exchange, which operates in Thailand, Indonesia, Australia and Singapore, is currently undergoing a court-supervised restructuring process based in Singapore.In its efforts to restructure the business, Zipmex is grappling with a debt of $97.1 million. That total debt level is contingent upon the eventual recovery of assets. Bloomberg cited sources familiar with the matter, suggesting that depending on the success of these recovery efforts, the repayment figure could potentially surge to 29.35 cents per dollar.Creditor dissatisfactionHowever, not all major creditors are on board with Zipmex’s proposed plan. Expressing reservations, they are pushing for an independent review to scrutinize recent changes in the company’s assets and liabilities, as outlined in an Oct. 4 court document. This external examination is deemed crucial to ensuring transparency and fairness throughout the restructuring process.In response to these developments, Marcus Lim, the Group Chief Executive Officer of Zipmex, refrained from providing detailed comments due to the confidentiality of the ongoing arrangement. While acknowledging inaccuracies in information sourced from external outlets, he chose not to elaborate on them further.Investor deal failureA previous attempt to sell Zipmex to V Ventures, a subsidiary of Thoresen Thai Agencies, fell through. To add to the struggling company’s woes, it emerged earlier this week that Thailand’s securities regulator, the Securities and Exchange Commission (SEC) recently instructed Zipmex to halt operations in the country due to insufficient net capital.The company had been fined 11 million baht ($315,000) by the SEC earlier this year. The SEC cited the co-mingling of corporate and customer funds as one regulatory breach. Furthermore, the Thai regulator claimed that between May and July 2022, Zipmex “did not have in place a system to effectively prevent conflicts of interest in such matters and the business operation does not have an adequate risk control system.”In response to this recent regulatory directive, Zipmex Limited issued a statement to its customers, expressing its commitment to ensuring proper and compliant business operations in line with the criteria set by the Thai SEC. Consequently, the temporary suspension of digital asset trading and deposit of all types was deemed necessary.The intricacies of Zipmex’s financial restructuring will be closely watched by market observers, especially considering the volatility in the crypto market and the regulatory challenges faced by the company in multiple jurisdictions. The success of the proposed repayment plan, contingent upon asset recovery, remains uncertain, leaving creditors and industry stakeholders on edge.As Zipmex grapples with these multifaceted challenges, its future trajectory hinges on navigating both the demands of the bankruptcy process alongside regulatory requirements.

Hana Securities to Accelerate Security Token Platform DevelopmentHana Securities, the securities arm of South Korean financial holding company Hana Financial Group, said Monday it will build a security token platform starting next month to expand its network and capabilities in digital assets in line with the ever-changing financial landscape.Photo by Shubham Dhage on UnsplashPursuing market dominanceThe company revealed that it will choose an external firm by this month to commission the construction of the platform. It also plans to dominate the market by applying to get the platform approved as an innovative financial service by the end of this year. The Innovative Financial Services system, operated by the Fintech Center Korea, is a system that offers special exemptions from regulation for unique and innovative financial services.This strategic move is poised to position Hana Securities as a pioneering force in offering financial services that circumvent conventional regulations, exemplifying its dedication to fostering innovation and originality.Cultivating collaborative synergiesHana Securities is also pursuing partnerships with digital asset enterprises to work on security token projects and platforms that allow for fractional investment in underlying assets. The firm has already entered into business agreements with key companies such as art gallery Print Bakery, tech solution provider ITCEN, and content distributor DANAL Entertainment to collaborate in various sectors, including art, precious metals like gold and silver, and mobile content.This multifaceted approach not only underscores Hana Securities’ versatility but also its commitment to fusing traditional and modern assets in the realm of security tokens.It will also expand collaboration models with companies running new asset platforms, such as those related to real estate funding for small businesses and digital content distribution.“Companies with various underlying assets are showing high interest in the issuance and distribution markets for security tokens,” said Choi Won-young, Head of Hana Securities’ Digital Division.“Through the enhancement of our business model and rapid platform development, we aim to connect various assets to security token products, supply them to the market, and provide customers with new investment experiences.”

Bitcoin's global merchant acceptance witnessed a substantial surge, growing by 174% throughout 2023, with the Philippines proving itself in leading the way within the Asian region.Photo by rc.xyz NFT gallery on UnsplashRegion facing regulatory restrictionsThat’s according to BTC Map, a provider of bitcoin merchant mapping services. The data, derived from BTC Map's open-source mapping data via OpenStreetMap, revealed that the number of venues accepting bitcoin payments surged from 2,207 at the beginning of the year to 6,126 by the year's end. This diverse array of businesses included restaurants, bars, shops and various services. The expansion of bitcoin vendors is a global phenomenon, with concentrations notably observed in Europe, the United States and Latin America. The Philippines stands out in Asia with hundreds of vendors, while regulatory restrictions in East Asia, especially China, have limited adoption. While it's great to see a high level of direct adoption among Filipino merchants, it's easy to understand why this level of adoption hasn’t been matched within Asia’s largest market. China has had a long-standing ban on cryptocurrency trading, mining or its use as a means of payment. Despite the ban, it appears that crypto trading is still alive and well in China, although beneath the surface. With mining too, while the sector shrank considerably once a ban was imposed, there is believed to be a significant ongoing level of bitcoin mining occurring still within China’s borders. However, when it comes to vendors, this is likely to be an activity that is far too visible to the authorities and with that, China’s 1.4 billion citizens are not getting the opportunity to buy goods and services with the world’s leading cryptocurrency. Compounding matters, the Chinese authorities have been working diligently on a myriad of projects to bring about day-to-day retail use of the country’s central bank digital currency, the digital yuan. Those efforts are not likely to be aligned with an accommodation of or tolerance of bitcoin payments. The increase in merchant listings showcased a slight decline from the peak in September, which reached 6,590 merchants. BTC Map's platform allows businesses and users to tag locations accepting bitcoin payments, with the rise in numbers potentially attributed to increased user contributions to the database. This surge in bitcoin adoption globally occurred against the backdrop of the cryptocurrency's price volatility throughout the year. Despite potential limitations in data collection due to its reliance on volunteer contributions, the overall trend indicates a growing acceptance of bitcoin. Ongoing challenges to adoptionA panel of bitcoin leaders at the Plan B conference in October discussed the challenges and opportunities of global bitcoin adoption. Notably, they highlighted the difficulty of onboarding new users and merchants, particularly in diverse cultural contexts. In El Salvador, where bitcoin is legal tender, obstacles persist in convincing merchants to accept bitcoin payments. Geographically, concentrations of bitcoin-accepting vendors were more prevalent in Central and South America, while Africa and Asia demonstrated fewer such establishments. The United States and Europe led in the global count of crypto-friendly merchants. The panel stressed the importance of education in overcoming these challenges, emphasizing the need for user-friendly applications to facilitate mainstream adoption, moving away from complex technologies. As bitcoin continues its global expansion, the industry recognizes the vital role education and user-friendly solutions play in fostering broader acceptance.