Ongoing access to crypto market in Russia despite sanctions

OKX Burns $244M $OKB in Record Exchange Token Supply CutSeychelles-headquartered OKX, the world’s second largest cryptocurrency exchange, has conducted its largest-ever burn of its exchange token, $OKB, according to on-chain data.Approximately 5.5 million OKB tokens, equivalent to around $244 million, were removed from circulation. This record-breaking burn represents a significant milestone for OKX, surpassing the previous burns conducted since the monthly program’s inception.The burn was valued at approximately $258 million when calculated based on a 90-day average price, as reported by OKX. Chinese reporter Colin Wu highlighted that this burn marked another significant milestone in terms of the value of OKB tokens burned.Taking to Twitter on Thursday, Wu wrote: “The OKX exchange carried out the 20th OKB repurchase and burning on June 8, with a total of about 5.5 million OKB, or about 244 million US dollars, which once again set a new record for the value of OKB burning. OKX previously stated that it will burn OKX according to the seasonal market and operating performance, but has not disclosed the specific rules.”Photo by Jens Mahnke on PexelsBuy-Back & Burn program$OKB is described by OKX as a “global utility token issued by the OKX Blockchain Foundation,” offering holders various benefits such as discounts and exclusive access. The global exchange initiated the first Buy-Back & Burn program in May 2019. Since then, it has burned a total of 64,042,314.70 tokens as part of that ongoing burning process. Despite this significant development, the price of OKB has remained relatively stable, experiencing a slight increase of 0.29% on OKX. At the time of publication, the token was trading at a unit price of $44.97.Exchange token concernExchange tokens have recently garnered attention following the United States Securities and Exchange Commission’s (SEC) lawsuit against global crypto exchange Binance. The SEC has levied charges related to the sale of unregistered securities, resulting in a steep decline of nearly 15% in the value of Binance’s exchange token, BNB, over the past week.That scrutiny is likely to have followed the collapse of Bahamas-based cryptocurrency exchange FTX in November. At that time, it became apparent that the exchange was using its exchange token, $FTT, to prop up the business. FTX had issued $FTT tokens and used them as collateral, a dangerous act given that exchange tokens have no real-world asset backing and limited token utility.As the crypto market continues to face regulatory scrutiny and legal challenges, the burn of $OKB by OKX stands as a noteworthy event within the industry. The burn not only reduces the supply of $OKB tokens but also underscores OKX’s commitment to managing and enhancing the value of its exchange token. Market participants will undoubtedly monitor the implications of this burn and how it may influence OKB’s future performance in the evolving cryptocurrency landscape.Exchanges like OKX are likely to carefully manage the supply levels of exchange tokens, given market perceptions in relation to the extent of the utility of such tokens, the scrutiny of regulators, and the problems caused in over-extending supply in the case of other exchanges in the past.

Abu Dhabi’s Venom Ventures Fund faces market challengesA report by The Block on Friday suggests that Abu Dhabi’s ambitious Venom Ventures Fund, heralded earlier this year with promises of $1 billion investment in Web3 startups, is facing challenges in following through on its mission.Photo by Nazar Skalatsky on UnsplashWhat is Venom?Venom is a collaboration between the Venom Foundation and Iceberg Capital, an alternative asset management company also based in Abu Dhabi. The venture was conceived by Peter Knez, former Co-Chief Investment Officer of BlackRock’s fixed income division and Mustafa Kheriba, Iceberg’s Executive Chairman.In a tweet thread published back in August, the firm described the fund as “old money meets new, the perfect platform for leading the next iteration of blockchain development.” The fund outlined that its approach incorporated venture capital, the offering of a project incubator and a specialist advisory service.Knez has set out lofty ambitions for the fund, stating:“The vision is to drive billions of users into our layer one Blockchain technology by being institutional quality and regulated, and by being such we can actually partner with the government and institutions to help them develop framework for stable coins, for cross-border payment system for tokenization of real world assets and thereby help web2 businesses and citizens move to web3.”At the time of its announcement, Venom Ventures boasted a $20 million investment in Nümi Metaverse and a $5 million strategic investment in Layer 1 blockchain Everscale.Unexpected silenceFurther details on deals struck since January have been scarce, although the fund was reported back in August to have been involved in a blockchain-based carbon credits project, backed by the United Arab Emirates (UAE) Ministry of Climate Change and Environment (MOCCAE).According to The Block, there has been an unexpected silence from the venture as its first year in business comes to a close, despite the initial buzz in the crypto community that greeted the launch of the fund.Venom Ventures positioned itself to cover the entire venture spectrum, from seed to late-stage investments, even offering grants ranging from $25,000 to $200,000. However, a closer look reveals a stark contrast between the fund’s ambitious promises and its current progress. The fund’s website lacks a portfolio section, displaying only a “coming soon” notice.Blockchain mainnet yet to launchThe venture fund has yet to launch its Venom blockchain mainnet, according to Christopher Louis Tsu, CEO of the Venom Foundation. The lack of updates and communication has raised concerns among industry observers about the fund’s overall progress and its ability to fulfill its investment commitments.The broader context of the crypto market adds to the challenges faced by Venom Ventures. Q4 2023 is expected to see a significant drop in venture funding for Web3, down to approximately $2.7 billion from the peak of $13.5 billion in Q1 2022. Market events have left VCs cautious, with notable instances of significant investments being marked down to zero.Amidst these challenges, crypto startups have turned to the Middle East for capital. However, some industry insiders caution that the perceived ease of accessing capital in the Middle East might be a mirage. With that, it remains to be seen whether the fund can revive its initial momentum and deliver on its promise to fuel the growth of Web3 startups in the ever-evolving crypto landscape.

The Turkish government is on the verge of finalizing comprehensive regulations for the cryptocurrency market. It has been known for a number of months that Turkey had been working towards the production of a regulatory framework for crypto, with the primary objective of securing the country’s removal from the Financial Action Task Force’s (FATF) "grey list." According to revelations from Minister of Treasury and Finance Mehmet Simsek, who participated in an interview with the Anadolu Agency on Wednesday, those regulations are now nearing completion.Photo by Emre on UnsplashFramework in advanced stagesSimsek disclosed key elements of the forthcoming regulations, emphasizing the government's commitment to legally defining critical concepts in the crypto space, licensing trading platforms and aligning with the standards set by FATF. The crypto framework tailored for the Turkish market is in the advanced stages of development, with a meticulous evaluation of its technical aspects underway, noted Simsek. The overarching goal is to mitigate the risks associated with crypto trading, especially for ordinary investors, aligning with international standards to facilitate the country's removal from the FATF's grey list. Licensing and defined termsSimsek outlined the forthcoming guidelines, stating that crypto platforms will be mandated to acquire licenses from Turkey's Capital Markets Board (CMB). A number of months ago, Bora Erdamar, the director of the BlockchainIST Center, an Istanbul-based university research and development center for blockchain technology, had underscored the importance of establishing licensing standards as part of the new crypto framework. Erdamar claimed that would be necessary in order to “prevent abuse of the system.” Erdamar is of the view that any such regulatory framework may include digital security protocols, advanced custody services, compulsory proof of reserves and capital adequacy requirements. It’s understood that the regulations will provide legal definitions for essential terms such as "crypto assets," "crypto wallets," "crypto asset service providers," "crypto asset custody service" and "crypto asset buying and selling platforms." As an example, Simsek clarified the definition of crypto assets as "intangible assets that can be created and stored electronically using distributed ledger technology or a similar technology, distributed over digital networks, and capable of expressing value or rights." While emphasizing the reduction of risks in crypto trading, Simsek clarified that the regulations would not encompass the specific tax regime for virtual assets. The proposed regulations have long been under consideration as Turkish authorities aim to bring clarity to the crypto market. The Minister assured that the crypto legislative proposals would be finalized this month, preceding the FATF evaluation scheduled for February. Notably, between July 2022 and June 2023, Turkey ranked fourth globally in raw crypto transaction volumes, recording approximately $170 billion in activity, trailing behind the United States, India and the United Kingdom, as reported by the blockchain analytics firm Chainalysis. A report by KuCoin last year identified a marked increase in adoption in Turkey.  It’s believed that wayward inflation over recent years relative to the Turkish lira is playing a large part in that trend. In recent weeks the Turkish president took the step of appointing an expert in blockchain and crypto assets to the central bank’s rate-setting committee.