Pakistan appoints crypto advisor to PM & allocates 2K MW to Bitcoin mining

Rotonda holds blockchain hackathon at GBIC 2023Rotonda, the operator of the digital asset wallet platform Bithumb Buritto Wallet, hosted a hackathon on Monday (local time) at this year’s Global Blockchain Incheon Conference (GBIC), centered around the theme of addressing a variety of local issues, such as carbon reduction, industrial and urban issues and public services using Web3 technology. Contestants from across the country gathered to create blockchain-based prototypes aimed at addressing such issues.Photo by Marvin Meyer on UnsplashOther blockchain and Web3 companies like Roa Core, Ret Games and ReFi Korea also participated as sponsors for the competition, which was held at Songdo Convensia, an international conference complex located in Songdo International Business District.Innovative solutions recognizedThe ten teams that made it to the finals presented a range of ideas related to the theme, which were judged based on how applicable, feasible and influential they are, as well as their potential for development and social contribution.“Through this year’s hackathon, we were introduced to innovative ideas and high-quality technologies to address various local problems. Discovering and supporting passionate entrepreneurs is in line with the values that we uphold within our ecosystem at Bithumb Buritto Wallet,” said Lee Sang-ho, Vice President at Bithumb Burrito Wallet.The grand prize of KRW 5 million (approximately $3,600) was awarded to DIY, a team that developed a project to promote cultural resources, tourism experiences and sports industries in Incheon using dynamic non-fungible tokens (dNFTs). dNFTs can be adapted or changed based on external events and data. The hackathon judges praised the team for adding gamification elements to increase citizen participation and streamlining administrative procedures through smart contracts. The team also won additional benefits like office space in Incheon’s Jemulpo Smart Town.“We are delighted to be recognized for the in-depth discussions we had amongst our members to develop a highly usable and differentiated platform,” the team said in a statement. “We will strive to leverage blockchain technology to create various success stories.”Additional winnersTwo runner-up prizes went to the Caffeine Addiction team, which developed a platform for motivating coffee drinkers to dispose of used coffee grounds, and the Datayo team, which developed dBus, a smart mobility platform with token-based crowdfunding processes. They received KRW 3 million and KRW 2 million, respectively, in prize winnings.

Singapore proposes additional rules to safeguard retail crypto investorsSingapore announced on Thursday its intention to implement new regulations aimed at protecting individuals by limiting their ability to trade cryptocurrencies.Photo by Daniel Welsh on UnsplashRules follow public consultation processIn a press release published to its website on Thursday, the Monetary Authority of Singapore (MAS), the city-state’s central bank and financial regulator, finalized these measures following a yearlong public consultation and review of cryptocurrency platforms, also known as digital payment token (DPT) service providers.Effective in phases from mid-2024, one key measure will prevent operators from accepting purchases through locally issued credit cards. Along the same lines, the regulator wants operators to discourage the use of margin and leverage transactions, or borrowing to facilitate trading activity. Market commentators, such as Custodia Bank Founder and CEO Caitlin Long, have long warned of the havoc that leverage has played in the crypto sector. Last year Long commented:”SO MUCH of the garbage in #crypto during this cycle was just leverage dressed up as tech innovation.”Additionally, incentives that encourage individuals to trade digital tokens will be banned. Such incentives could include providing free trading credits or digital assets as rewards during sign-ups or referrals.Curbing speculationWhile the MAS acknowledges the speculative and highly risky nature of cryptocurrency trading, it asserts that these regulations aim to help cryptocurrency operators protect customer interests. However, the MAS emphasizes that the regulations “cannot insulate customers from losses associated with the inherently speculative and highly risky nature of cryptocurrency trading.”Ho Hern Shin, the Deputy Managing Director for Financial Supervision at the MAS, urged consumers to exercise caution, stating:“We urge consumers to remain vigilant and exercise utmost caution when dealing in DPT services and to not deal with unregulated entities, including those based overseas.”The MAS expanded the scope of these measures to include all retail customers, regardless of their residency, following public feedback. This includes individuals who are not accredited investors or institutional investors. Accredited investors are those with over $1 million in net financial assets, among other criteria.Responding to crypto platform failuresThese regulatory steps come in response to the increasing access of individuals to the risky asset class, driven in part by the collapse of several unlicensed cryptocurrency companies in Singapore such as Hodlnaut and Vauld last year. The resulting calls for greater oversight prompted the MAS to initiate a feedback-gathering exercise in October, seeking input from industry players on proposed measures and other framework-establishing proposals.The bankruptcy filing of cryptocurrency group FTX the following month further accelerated the need for regulatory action globally, including in Singapore. In July, the MAS published the initial set of measures based on the consultation, requiring operators to keep customer assets in a trust and limiting their lending and “staking” of digital payment tokens.Staking, a process enabling investors to earn yields by depositing crypto assets for use in blockchain transactions, is among the activities facing restrictions. MAS Managing Director Ravi Menon criticized cryptocurrencies recently, stating that they have “failed the test of digital money,” citing poor performance as a medium of exchange or store of value and susceptibility to sharp speculative swings, leading to significant losses for many investors.

Thai SEC Implements Measures to Protect Crypto InvestorsIn response to the crypto lending crisis that unfolded in 2022, prompting companies like BlockFi and Celsius to declare bankruptcy, Thailand’s Securities and Exchange Commission (SEC) has introduced new regulations aimed at safeguarding investors in the digital assets space.Photo by Jakob Owens on UnsplashDisclosing risk warningsThe guidelines, issued on Monday, require digital asset service providers to provide comprehensive warnings that emphasize the risks associated with cryptocurrency trading. All platforms must prominently display a message stating: “Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly, because you may lose the entire investment amount.” Prior to utilizing the service, users must consent to and acknowledge the risks.Crypto lending prohibitionIn addition to the risk disclaimer, the new guidelines explicitly forbid service providers from using customer funds for lending or investment purposes. This ban on crypto lending services prevents platforms from offering any returns on deposited crypto to customers. By implementing these measures, the Thai SEC aims to enhance investor protection and shield investors from the risks posed by lending services. The regulations are scheduled to take effect at the end of the month.Today’s guidelines are the product of months of deliberation. Discussions surrounding investor protection regulations commenced on September 1, 2022, when the SEC acknowledged the necessity for security warnings by cryptocurrency businesses to disclose the risks associated with trading digital assets. The prohibition on digital asset operators offering deposit-taking and lending services was deliberated during meetings held on December 1, 2022, and May 11, 2023.Response to crypto platform failuresThe introduction of these investor protection rules follows a significant crisis in the crypto lending sector that unfolded during the bear market of 2022. Several crypto lending firms, which had collected billions of dollars in customer deposits by promising substantial returns, collapsed during this period. Prominent lending companies such as Celsius and BlockFi filed for bankruptcy, resulting in investors’ funds being trapped in lengthy bankruptcy proceedings.The Thai SEC’s proactive approach in implementing these regulations reflects the growing concern for investor welfare within the cryptocurrency industry. By requiring clearer risk disclosures and prohibiting the use of customer assets for lending and investment, the SEC aims to instill greater confidence and transparency in the digital asset service sector.Crypto academyThailand’s SEC has run other initiatives in efforts to better protect investors. In January the Commission launched the SEC Crypto Academy, an e-learning course. The objective of that initiative was to provide investors with a basic understanding of the digital assets space prior to investing. At the time of the launch of the course, the SEC said that “the more you know your investments, the less risk you will have.”These latest regulations not only serve as a protective measure for Thai investors but also set an example for other jurisdictions to evaluate and enhance their own regulatory frameworks. As the crypto industry continues to evolve, prioritizing investor protection becomes crucial in fostering a more sustainable and responsible ecosystem.