Bitzlato co-founder to pleads guilty in US to illicit funds processing

Ribbon Finance Enables Altcoin Options TradingSingapore’s Ribbon Finance, a project that offers a suite of DeFi protocols that help users access crypto-structured products, has enabled altcoin options trading via its Aevo decentralized exchange (DEX).The Ethereum-based platform has begun offering options relative to cryptocurrencies beyond the top two of Ethereum and Bitcoin. Examples of coins that users of Ribbon Finance’s Aevo DEX can access as options include Lido’s LDO, Sui’s SUI token, APT, the token of high throughput proof of stake-based blockchain Aptos, the ARB token of layer two Ethereum scaling network, Arbitrum and Litecoin (LTC).Trading options on-chainThe Aevo DEX project took to Twitter on Monday to announce the development. The project has named the options product “Aevo OTC,” terming it as “the best place to trade altcoin options on-chain.” The firm claims that it’s the first platform to allow users “to trade altcoin options on-chain, in size, with institutional grade liquidity providers.”To kick things off, users will be enabled in trading these altcoin options across weekly, bi-weekly and monthly maturities relative to thirteen crypto tokens. The project plans to rotate the list of coins available for options trading every month depending upon what it deems to be the most popular coins on the market at a given time.Early service adoptersAs Aevo is a DEX, it will utilize on-chain margin systems. When a user buys an option the counterparty is required to post margin of approximately 30% of the notional trade size in the form of US dollar stablecoin, USDC. That procedure is all on-chain and transparent, enabled via smart contracts.Although officially launching the product today, Aevo OTC has been used in production for a number of weeks already. Both digital assets firm Galaxy Digital and crypto-native investment firm CoinFund have already been using the product to trade options.Other early adopters of the product include DeFi R&D and liquid crypto investment strategies firm Re7 Capital and crypto options and structured derivatives firm, OrBit Markets. In fact, Galaxy and OrBit Markets, alongside GSR, are acting as market makers for the product, enabling users to get instant quotes.Developing the crypto options marketThe development means that market participants can now strategize and take advantage of trading altcoins relative to specific events that may be fundamental to a project, such as Litecoin’s halving, for instance. At a later stage, the project intends to enable users in writing options contracts to include customized margins and a specified counterparty.The crypto options market is still at a very early stage of development. Deribit has been the dominant crypto options platform. Ribbon Finance’s service rollout broadens that market, extending options trading beyond the current limited offering of bitcoin, ethereum and solana.The product is more capital efficient for market participants as its portfolio margin system calculates real-time margin requirements, in that way offsetting money-making and losing positions relative to a particular portfolio.Photo by Shubham Dhage on Unsplash

Gyeonggi-do Province Mandates Senior Officials to Report Crypto HoldingsSouth Korea’s most populated province which encircles Seoul has taken a proactive step towards regulating virtual assets by notifying the legislation of an amendment to the code of conduct for public officials. As reported by local news outlet Yonhap News Agency, the Gyeonggi-do province will gather public comments on the amendment until July 25.Photo by Ryoo Geon Uk on UnsplashProvincial levelUnder the revised code of conduct, Gyeonggi-do officials will be prohibited from engaging in property transactions or investments related to virtual assets, using any virtual asset information acquired during the course of their duties. Provincial officials are also forbidden from providing virtual asset information to others to aid their property transactions or investments.Implementation next monthThe amendment compels public officials whose duties involve crypto-related projects, as well as high-ranking officials with an obligation to report their wealth, to declare their virtual assets. Once reviewed by the Ordinance and Rules Review Committee early next month, the amendment will be implemented immediately.National levelA Gyeonggi-do official explained that the decision to preemptively amend the code of conduct regarding virtual assets was made in anticipation of the implementation of the revised Public Service Ethics Act. This act, passed during the National Assembly’s plenary session in May, mandates high-level government officials to report their virtual assets and is set to become effective on December 14.Gyeonggi-do’s crypto surveyGyeonggi-do has been active in taking measures related to crypto assets. In a recent announcement, the province revealed its plan to conduct a survey among residents, aimed at hearing their experiences with unfair virtual asset trading practices. The survey is scheduled to run from August to November and was prompted by a growing number of residents suffering unfair losses from crypto investments amidst an economic slowdown.

Taiwan Aims to Propose Special Crypto Law by Late NovemberIn a bid to address growing concerns surrounding offshore crypto exchanges and prevent regulatory arbitrage, Taiwan is actively working towards proposing a draft special crypto law for its first reading by the end of November.Yung-Chang Chiang, a member of the Legislative Yuan, the Taiwanese parliament, emphasized the need for a dedicated crypto asset act to effectively regulate crypto businesses in discussion with The Block on Friday. Chiang believes that cryptocurrencies, as an asset class, significantly differ from traditional financial products and require oversight through a separate, specialized legal framework.Photo by Ian Chen on UnsplashPublic hearingThe Taiwanese politician recently organized a public hearing within the parliament to discuss the draft proposal with key stakeholders, including virtual asset service providers, legal experts, and academics. He argued that while Taiwan’s Financial Supervisory Commission (FSC) had released guidelines for the crypto sector to establish self-supervisory rules through a potential industry association, these measures lack legal enforceability.Chiang pointed out:“In this case, under the authority of this special law, regulatory authorities can impose administrative penalties on operators who violate these self-regulation rules. Without such a special law, the regulators would lack the ability to impose penalties.”Under the proposed special law, all crypto platforms operating in Taiwan would be required to obtain a permit. Failure to do so could result in regulatory orders to cease operations. Presently, Taiwan mandates that virtual asset service providers comply with anti-money laundering (AML) laws, which were introduced by the FSC in July 2021. However, the broader crypto industry in Taiwan remains largely unregulated.It is unlikely that the special law will pass through all three readings during the current legislative session, which is expected to conclude by the end of this year. Chiang noted: “An election is coming up, and the current legislative session focuses more on reviewing the government’s budget.”Chiang also mentioned the possibility of Taiwan’s FSC proposing its version of the special crypto law, but this is not anticipated until at least mid-2024. He explained: “It’s hard to say exactly when the special law will be enacted, but it should likely occur sometime after the middle of 2024.”Binance, the world’s largest crypto exchange, is understood to be in the process of registering in Taiwan for AML compliance, despite not currently being regulated in the country. The exchange has formed a local entity named “Binance International Limited Taiwan Branch (Seychelles),” as indicated in the Taiwanese Ministry of Economic Affairs’ database.Banking difficultiesDuring the public hearing, Damien Ho, Representative of Global Partnerships at Binance, raised concerns about the challenges faced by crypto platforms in Taiwan in securing suitable banking services. Despite the FSC’s efforts to discourage banks from treating crypto platforms as high-risk entities, crypto platforms still encounter difficulties in their interactions with banks. Ho suggested that the Taiwanese government should encourage private or public banks to become more crypto-friendly, facilitating the regulated and effective development of crypto businesses.At the public hearing, Winston Hsiao, Co-Founder and Group CRO of Taipei-based crypto exchange XREX, suggested a step-by-step approach to regulation, with smaller entities adhering to self-supervisory rules formulated by the industry association after registration. For larger entities, he proposed obtaining a permit under the special law and potentially applying for other relevant financial licenses.