SK C&C Issues Voluntary Carbon Offsets on Blockchain-Based Credit Platform

Crypto.com Complies with UK FCA’s New Digital Asset RulesWhile some Asian crypto platforms are struggling to comply with the United Kingdom’s Financial Conduct Authority (FCA) regarding new marketing-related rules that took effect on October 8, Singapore’s Crypto.com has confirmed its successful compliance. The firm is registered as FORIS DAX UK LIMITED on the FCA website.Photo by Paul Fiedler on UnsplashContinuing support for UK customersAs a result, UK customers can continue to access Crypto.com’s products and services without disruption. The company emphasized its commitment to strengthening its platform and presence in the UK market. Crypto.com stated that it fully supports measures aimed at enhancing consumer safety and security in the cryptocurrency industry. The company also expressed its ongoing cooperation with UK and international regulators to foster consumer confidence in the crypto sector.Effective from October 8, the FCA’s updated guidelines mandate that all crypto firms marketing their services to UK consumers must register with the FCA and adhere to relevant standards concerning risk disclosures and marketing practices.Regulatory compliance challengesWhile Crypto.com has managed to remain compliant, that’s not the case for all large and well-known crypto platforms. The FCA recently expanded its scrutiny of digital currency exchanges by adding Huobi and KuCoin to its list of unapproved and unregistered firms.The FCA alerted clients to the fact that these service providers were offering various crypto services in the UK without obtaining regulatory approval. This development follows a recent warning from the FCA, which highlighted several other crypto-focused companies.Binance’s compliance difficulties2023 has seen global crypto platform Binance struggle with regulatory compliance in various markets worldwide. In some jurisdictions where it has either decided to withdraw from the market or been asked to leave, the firm has taken the approach of still maintaining exposure to that market by establishing a partnership with a locally registered firm.In the UK, Binance has partnered with Rebuildingsociety.com, a peer-to-peer lending platform. However, its local partner has fallen foul of the UK's FCA. On Tuesday, the UK regulator issued a notice clarifying that Rebuildingsociety.com was not authorized to “approve the content of any financial promotion for a Qualifying Cryptoasset for communication by an unauthorized person.”Dubai-headquartered crypto exchange Bybit is another crypto business that has struggled with the FCA's new regulatory requirements. Last month the exchange denied reports that it was preparing to leave the UK market due to the new strict marketing rules. The following week the exchange confirmed that it would be leaving the UK market, ahead of the introduction of the new crypto marketing regulations.Crypto.com had received registration approval from the FCA in August 2022. At the time, CEO Kris Marsazalek stated:“We are committed to the UK market and we look forward to developing our platform and presence in the UK further by expanding our offering to customers, while continuing to work with regulators.”In June, the firm acquired a Major Payment Institution (MPI) license in its home market of Singapore from the Monetary Authority of Singapore (MAS). Around the same timeframe, the firm received a minimum viable product (MVP) license from the Virtual Assets Regulatory Authority (VARA) in Dubai.

While the Web3 sector seemed to be hamstrung by litigation and regulatory scrutiny in 2023 following multiple platform failures, it's going out with a bang in China with news of a $10 billion fund in Shenzhen to support Web3 startups.Photo by 李大毛 没有猫 on UnsplashFueling Web3 startup growthGBA Capital, a Chinese venture capital (VC) firm, made a significant announcement during the Guangdong-Hong Kong-Macao Greater Bay Area Digital Economy Development Conference on Tuesday. The firm, backed by China's state-owned National Engineering Laboratory, unveiled plans to launch a substantial $10 billion Web3 fund. The conference also served as an educational platform, enlightening investors and attendees unfamiliar with the intricacies of the Web3 industry. Luo Jinhai, founder of Huoxun Finance and creator of the "Yuan Asset" concept, elucidated on the unique attributes of specific forms of digital assets, including independence, privacy, security, scarcity and liquidity. Metaverse focusThis initiative aims to fuel the growth of startups specializing in virtual reality, the metaverse and non-fungible tokens (NFTs), ultimately transforming the Guangdong-Hong Kong-Macao economic region into the global "meta-asset capital."  Meta-assets are virtual objects that serve as key components within the make-up of the metaverse. Haolong Li, the chairman of GBA Capital, outlined the ambitious vision, stating that the conference would facilitate "meta-asset global tours" in key international hubs such as Japan, Singapore, Dubai, Silicon Valley and Europe. The objective is to enhance the visibility of meta-assets and position the economic area as a leading force in the emerging Web3 landscape. Previous developments that have played out over the course of 2023 suggest that China is placing a particular focus on embracing metaverse technology, with a view towards integrating the metaverse with existing systems in the country.   The Ministry of Industry and Information Technology of China, in response to a proposal about promoting the development of the Web3 industry, emphasized ongoing research in areas such as the Metaverse, NFTs and decentralized identity management. In September the Ministry set out an action plan for the cultivation of a domestic metaverse. As part of that plan, it aspires to nurture three to five metaverse companies of global significance. GBA Capital, established by China Europe International Financial Group in Hong Kong, boasts strategic partnerships with key financial institutions, including the Asia Pacific Investment Bank and China's state-owned National Engineering Laboratory. The firm's focus on investment and incubation in the digital economy aligns with its goal of integrating industrial clusters, capital resources, corporate resources and policy advantages to offer comprehensive support and services to enterprises. In a related development, GBA Capital's subsidiary Zhongrong Global successfully raised an angel funding round at a valuation of 100 million Chinese yuan ($14 million) back in May. The funds will be allocated to Web3 project incubation and industrial services in the artificial intelligence sector. The Guangdong-Hong Kong-Macao Bay Area has experienced a surge in Web3 startups and overseas corporate relocations since the beginning of the year, setting the stage for GBA Capital's substantial Web3 accelerator fund.

US Sanctions Chinese for Enabling Crypto Money LaunderingIn a press release published earlier this week, the Office of Foreign Assets Control (OFAC) within the Department of the Treasury in the United States, stated that it had sanctioned two Chinese nationals and a Hong Kong British national for allegedly having aided the North Korean government in crypto money laundering activities.©Pexels/RODNAE ProductionsThe Americans claim that the funds are the proceeds of cyber crime with the laundered money in turn being used to support the Democratic People’s Republic of Korea (DPRK) regime, including its ballistic missile and weapons programs.Illicit OTC crypto tradesThe three OFAC-sanctioned individuals are Wu Huihui (Wu), Cheng Hung Man (Cheng) and Sim Hyon Sop (Sim). Wu is an over the counter (OTC) cryptocurrency trader based within China. OFAC claims that he has facilitated the conversion of millions of dollars worth of stolen digital assets into fiat currency at the behest of a North Korean cyber-crime syndicate.In 2009 OFAC sanctioned a small North Korean bank, Korea Kwangson Banking Corp. (KKBC). At the time, the agency claimed that KKBC had extended financial services to previously designated North Korean banks including Tanchon Commercial Bank and Korea Hyoksin Trading Corporation. Fourteen years on, OFAC has now identified Sim as a facilitator of KKBC money laundering schemes. OFAC claims that Sim represented the sanctioned bank, and in the process, he was the recipient of millions of dollars worth of cryptocurrency.Overseas earningsThe agency claims that the source of this money was the earnings of North Korean IT workers who had worked overseas, including within the United States. The North Korean regime has pursued a strategy of sending workers into employment overseas in an effort to raise capital in harder currency.Like Wu, Cheng was also identified as an OTC cryptocurrency trader. It’s understood that Cheng collaborated with Wu, and employed a series of shell companies in order to convert cryptocurrency into fiat money.Blockchain data analysis firm Chainalysis has researched the topic based upon the OFAC and Department of Justice data and information. That analysis has revealed that the North Korean hackers and cyber-crime facilitators make use of cryptocurrency mixers such as Tornado Cash and Sinbad. While other illicit entities utilize these crypto mixers which attempt to obfuscate the origin of digital assets, Chainalysis’ research suggests that the North Korea-affiliated actors use mixers to a far greater extent than others.Reward offeredIt’s understood that the US authorities indicted a fourth person who remains unknown beyond his/her online moniker, “live:jammychen0150.” Properties in the United States connected with the three known individuals have been frozen. The State Department has also outlined its willingness to provide a reward of up to $5 million for any information that leads to the arrest or conviction of Sim. Furthermore, rewards of $500,000 each are being offered relative to the apprehension of two of Sim’s associates, Han Linlin and Qin Gouming.In a statement, Department of Justice Criminal Division Assistant Attorney General Kenneth Polite Jr. said that “the North Korean operatives have innovated their approach to evading sanctions by exploiting the technological features of virtual assets to facilitate payments and profits, and targeting virtual currency companies for theft.”