Korean Investment Firm Partners with Open Asset to Build Security Token System

Terraform Labs fails to halt class action lawsuitThe High Court in Singapore has dismissed an appeal filed by Terraform Labs and its co-founders, marking a significant step forward for the plaintiffs behind a class action initiated against the company.That’s according to a report published by Singaporean publication, the Business Times, on Thursday. The legal development follows the collapse of TerraUSD (UST) tokens in May of 2022, resulting in the loss of billions of dollars in market value. The collapse, in turn, has led to several lawsuits against Terraform, its founders and affiliated entities, with those court actions playing out in courtrooms in Singapore, South Korea, Montenegro and the United States.Photo by Wesley Tingey on UnsplashFraudulent misrepresentation allegedThe class-action suit, initiated in September 2022 by Julian Moreno Beltran and Douglas Gan on behalf of 375 others, alleges fraudulent misrepresentation by Terraform, Co-Founders Do Kwon and Nikolaos Alexandros Platias and the Luna Foundation Guard (LFG). The claimants argue that these misrepresentations induced them to purchase UST, stake the tokens and retain them as their value plummeted.UST had been designed to be pegged to the U.S. dollar with a 1:1 ratio. However, flaws in the tokenomics behind that digital asset meant that it faced a loss of confidence in May 2022, trading at around $0.05 when the court’s decision was released. The claimants collectively suffered losses of nearly $57 million.Terms of use cited in attempt to dismissTerraform attempted to have the lawsuit dismissed by invoking an arbitration clause in its website’s terms of use, asserting that users had waived their rights to a jury trial or participation in a class action. However, the Assistant Registrar (AR) rejected this application, stating that the defendants failed to establish an arbitration agreement.The AR highlighted that the terms of use were inconspicuous on the website, and there was insufficient effort to draw users’ attention to those clauses. Terraform, Kwon and associated entities appealed this decision, which was heard by Justice Hri Kumar Nair on Sept. 25.Despite establishing a prima facie case for an arbitration agreement, the court ruled that Terraform’s participation in the legal proceedings, including filing a defense and counterclaim, meant it could no longer seek a stay in favor of arbitration.Multiple actionsIt’s a busy time for all stakeholders relative to the Terraform collapse. Playing out within the same timeframe is a lawsuit in the United States taken by the Securities and Exchange Commission (SEC) against Terraform and Do Kwon, where the SEC claims that crypto asset securities fraud has been carried out.The latest installments in that saga in recent weeks have seen both parties file to seek summary judgment. Last week, a court in New York approved the confidential treatment of specific documentation which had been produced by Jump Crypto, a division of proprietary trading firm Jump Trading.There are also criminal actions underway. In a South Korean court in October, Terraform Labs Co-Founder Daniel Shin denied wrongdoing in the Terra/Luna collapse. Meanwhile, a court in Montenegro has approved the extradition of Do Kwon, with a final decision to be made shortly as regards whether he should be extradited to the United States or South Korea.

Emerging as one of the world’s major crypto hubs, the United Arab Emirates (UAE) is set to host Abu Dhabi Finance Week, described as the region’s largest financial and investment event, in the capital next month. Scheduled to take place from Dec. 8 to 11, the conference will feature leading figures from both traditional finance and the crypto industry. Notable speakers from traditional finance include Bridgewater founder Ray Dalio, Morgan Stanley International CEO Clare Woodman, and Franklin Templeton CEO Jennifer Johnson. Representing the crypto sector will be Binance CEO Richard Teng, Solana Labs CEO Anatoly Yakovenko, Circle CEO Jeremy Allaire, among others.Photo by Saj Shafique on UnsplashHashed, ADGM host Web3 policy talksAmong the partners for the four-day event is Seoul-based venture capital firm Hashed, which opened its Abu Dhabi office last year. The expansion followed its partnership with Hub71, the city’s global tech ecosystem, which aims to help more Korean startups expand into the Emirates. According to South Korean news outlet News1, Hashed, jointly with Abu Dhabi Global Market (ADGM) Emerging Tech, will host the Web3 Leaders Roundtable. The event will feature two sessions: one exploring next-generation digital infrastructure, where artificial intelligence and blockchain converge with the real economy, and another focusing on digital asset regulations, particularly how policies can be designed to balance innovation with oversight. Bybit courts UAE talentAbu Dhabi’s growing appeal as a hub for digital asset businesses is also underscored by crypto exchange Bybit’s recent participation in the annual NYU Abu Dhabi Career Fair. Concluding on Oct. 30, the event marked the trading platform’s first talent outreach initiative in the UAE. The participation comes after Bybit obtained a full virtual asset platform operator license from the Securities and Commodities Authority (SCA) last month. The occasion gave Bybit an opportunity to engage with students and recent graduates. The growing adoption of cryptocurrency in the country is reflected in Du’s launch of a crypto mining service aimed at individual users. As one of the UAE’s two major telecom operators, Du is leveraging its nationwide data centers to allow residents to rent the necessary computing power on a subscription basis to mine digital assets, according to a report by the Emirates-based newspaper The National. Du’s cloud platform powers user miningJasim Al Awadi, Du’s chief information and communications technology officer, said the new service is powered by Cloud Miner, a platform introduced last year under the company’s sub-brand Du Tech. He explained that as the service evolves, users will gain access to a calculator that estimates their potential monthly Bitcoin earnings. Du also intends to continue enhancing and expanding its mining-as-a-service offering. The launch coincides with a period of volatility in the crypto market. On Nov. 5, Bitcoin fell below the $100,000 mark for the first time since June 23, dropping to $99,992.01 against USDT on Binance before recovering to above $103,000. 

Nomura’s Crypto Subsidiary Secures Dubai VARA LicenseLaser Digital Middle East FZE, the digital asset subsidiary of Japanese global financial services group Nomura, has successfully obtained an operating license from Dubai’s Virtual Asset Regulatory Authority (VARA).This significant development, announced via a statement published to Laser Digital’s website on Tuesday, comes as part of Nomura’s strategic efforts to make a strong presence in the digital asset space.Photo by Paul MARSAN on UnsplashOpportunity to expand servicesThe newly acquired Virtual Asset Service Provider (VASP) license empowers Laser Digital to offer broker-dealer services and provide virtual asset management and investment solutions within the emirate. Additionally, the license will enable the company to carry out trading and asset management operations in the near future. This could potentially include the provision of over-the-counter (OTC) services, together with a diverse range of digital asset investment products.Jez Mohideen, the CEO of Laser Digital, expressed his confidence in VARA’s meticulous and collaborative process, which assures institutional investors looking to get involved in this emerging asset class. “We are very grateful to VARA for approving our Operating License. VARA’s thorough and consultative process provides institutional investors with the assurance they require to engage in this asset class. With the license now in place, we are looking forward to Laser’s growth over the coming years,” he stated.Established in September 2022 under the guidance of Nomura, Laser Digital was the brainchild of Steven Ashley, the former head of Nomura’s wholesale division, alongside Mohideen, who served as the firm’s former Chief Digital Officer and Co-Head of Global Markets for Europe, Middle East, and Africa (MENA). The company is headquartered in Switzerland, with sub-offices located in Dubai and London.Dubai’s rapidly growing crypto ecosystem has garnered global attention, especially after the establishment of its own virtual asset rules and the formation of VARA in March 2022. In February, the regulatory body issued the “Full Market Product Regulations,” comprising four compulsory rulebooks and activity-specific guidelines that delineate the framework for Virtual Asset Service Providers (VASPs).Following in Binance’s footstepsLaser Digital’s recent achievement coincides with Binance’s continuous efforts to solidify its presence in the United Arab Emirates. Its license award comes hot on the heels of Binance having achieved the same milestone. On Monday, Binance’s Dubai subsidiary, Binance FZE, received an operational Minimum Viable Product (MVP) from VARA, granting it permission to operate cryptocurrency exchange and virtual asset broker-dealer services locally.Apart from Binance, only two other entities, digital asset custodians Komainu MEA and Hex Trust MENA FZE, currently hold operational MVP permits in the region. Notably, crypto exchange BitOasis also secured a conditional license but it has faced a suspension from VARA for non-compliance with mandated conditions.Laser Digital’s successful licensing and entry into Dubai’s crypto landscape further enrich the diversity of players in the region’s digital asset market. The involvement of reputable financial institutions like Nomura contributes to the establishment of a robust and well-regulated ecosystem in the United Arab Emirates. The license paves the way for Laser Digital to serve institutional investors and individual clients alike, offering innovative digital asset solutions while complying with the region’s regulatory standards.