Civic Group Files Embezzlement Complaint Against Former Kakao Chairman Over KLAY Tokens

Bitfinex Forges Strategic Partnership with Zodia CustodyCryptocurrency exchange Bitfinex has formed a strategic partnership with digital assets custodian Zodia Custody to fortify the security of its institutional clients’ assets.The deal struck with Zodia Custody, a subsidiary of the UK multinational banking titan Standard Chartered, aligns with a growing trend within the digital assets sector, one that emphasizes separating asset custody from trading activities. Such a division will result in heightened security measures while better meeting regulatory compliance.Photo by Ketut Subiyanto on PexelsSecuring digital assetsThis collaboration provides an opportunity for institutional clients who maintain accounts with both Bitfinex and Zodia Custody. They can now seamlessly replicate their custodial assets on Bitfinex’s cutting-edge trading platform, all while basking in the security offered by Zodia’s off-exchange settlement solution, aptly named Interchange.With this innovation, the need for actual asset transfers becomes obsolete as the settlement process unfolds periodically on the blockchain. This approach not only ensures efficiency but also provides greater security when interacting with the platform.Industry trendBitfinex’s move towards segregating trading and custodial functions aligns with best practices in the crypto industry but also signifies a wider trend observed among cryptocurrency exchanges as they increasingly adopt a more conventional approach akin to traditional financial institutions.Paolo Ardoino, the Chief Technology Officer (CTO) of Bitfinex, shared the exchange’s perspective, stating:“We are committed to shaping the future of digital market infrastructure and enabling institutional customers to thrive in this space. Working with Zodia Custody is a significant part of that strategy, and together we can look to enable even more institutions to enter or further participate in digital assets.”This partnership serves as a testament to Bitfinex’s continuous efforts to collaborate with reputable custodians, building upon past successful alliances with firms like Koine in 2020 and Digivault in 2022.The significance of segregating asset custody from trading operations has taken on greater importance, primarily in the aftermath of the collapse of FTX, where management gambled with customer’s assets.Zodia’s market expansionZodia Custody, with the backing of Standard Chartered Bank, has recently expanded its footprint into Singapore, offering digital asset custody services to financial institutions in the burgeoning Asian market.Not content with that, in May it launched its crypto custodian service in Dubai. The following month the fledgling firm announced a partnership with blockchain infrastructure firm Blockdaemon relative to crypto staking for institutional clients. There’s been no let up in the firm’s roll-out of services as earlier this month it commenced a yield offering on stablecoins in partnership with Singapore-based DeFi platform OpenEden.Bitfinex’s history includes one of the most infamous hacks in the cryptocurrency sphere, with the pilfering of 120,000 BTC, now valued at over $3 billion. Nevertheless, the exchange has undergone a transformative journey and presently boasts an extensive array of cryptocurrencies and trading pairs.As the regulatory landscape continues to evolve, the practice of separating custody from trading is poised to become a standard procedure, further enhancing the legitimacy and security of the cryptocurrency market.

SC Ventures and Deutsche Bank Execute Stablecoin Payments via UDPNSC Ventures, the Singaporean disruptive technology investment subsidiary of UK banking conglomerate Standard Chartered, has partnered with Deutsche Bank in completing the first successful proof of concept (PoC) for the Universal Digital Payments Network (UDPN).Photo by Conny Schneider on UnsplashConnecting blockchain networks with CBDCsThe UDPN is a brainchild of Hong Kong’s Red Date Technology, which in turn is a co-founder of the Chinese Blockchain-Based Service Network (BSN). The PoC was aimed at facilitating seamless connections between central bank digital currencies (CBDCs) and various blockchain networks through message-based transactions.News of the successful PoC emerged via a report by India’s English-language business newspaper Financial Express earlier this week. In conventional finance and international payments, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) is the foremost, dominant financial messaging service. Notably, UDPN distinguishes itself from SWIFT as it operates on a permissioned blockchain, ensuring heightened security and regulatory compliance.As part of the PoC, several real-time transfers and swaps of synthetic USDC and EURS (Stasis Euro stablecoin) were executed between the two banks. While SC Ventures utilized code that leveraged UDPN software development kits (SDKs) and APIs, Deutsche Bank employed a graphical user interface. Rafael Otero, CTO and CPO of Deutsche Bank’s Corporate Bank division, emphasized the significance of this trial, stating that it provides an opportunity to explore how clients can actively engage in the decentralized global economy. Otero sees this as the logical next step in the evolution of financial transactions.Overcoming digital currency adoption challengesUDPN has been under development in collaboration with consultancy firm GFT Technologies and DLA Piper’s Hong Kong-based digital asset creation platform, TOKO, with further governance provided by the UDPN Alliance.The primary goal of UDPN is to overcome the hurdles that hinder the broader adoption of digital currencies, especially in the face of the surging number of CBDCs, stablecoins, and deposit tokens. The lack of interoperability among these digital assets necessitates innovative solutions.Currently, interoperability among stablecoins primarily relies on centralized cryptocurrency exchanges. However, due to the absence of proper oversight and regulatory framework in these exchanges, this method is not a sustainable solution for achieving interoperability between CBDCs and deposit tokens.UDPN takes a unique approach by providing a decentralized identity infrastructure. The actual currency transactions occur on their respective native blockchains or infrastructures. This means that UDPN enables users to seamlessly swap a USDC stablecoin on one network for a Euro stablecoin on another or even a bank deposit token.Improving upon financial messaging systemsAs UDPN incorporates an element of financial messaging for digital currencies, this hybrid approach streamlines transactions, eliminates the need for reconciliations, and enables atomic settlement. Therefore, UDPN ensures that either both sides of a transaction succeed or both fail. In contrast, purely messaging-based systems can result in one side of the transaction failing.SWIFT recently experimented with a messaging solution to connect CBDCs, and other conventional integration methods are being explored, involving APIs and routing networks, such as finP2P. It has collaborated with the central banks of Hong Kong and Kazakhstan recently in testing CBDC connectors.A report by Nikkei Asia last week suggested that Standard Chartered is venturing further into the world of digital currencies, particularly so in Asia, via SC Ventures.

OKX Follows Path Towards Dubai LicensingSeychelles-headquartered OKX, one of the world’s largest cryptocurrency exchanges, has expressed its intention to seek regulatory approval for operating in Dubai as part of its expansion strategy in the Middle East.With that objective, the company has obtained a Minimum Viable Product (MVP) preparatory license, an interim step on its path towards full licensing. That’s according to a press release published on Thursday.Tim Byun, OKX’s Global Head of Government Relations, emphasized the growing trend of regulation within the industry. In an interview with Reuters, Byun stated: “We would like to get ahead of that curve and be regulated in a sound manner.” The move comes in the wake of recent legal action taken by the Securities and Exchange Commission (SEC) in the United States against Binance and Coinbase, two of the largest crypto exchanges, for alleged breaches of SEC rules.Photo by Marcus Herzberg on PexelsSwitching to DubaiByun believes that the SEC’s actions will compel more market participants to seek out innovative regulators such as Dubai’s Virtual Asset Regulatory Authority (VARA).To support its expansion plans, OKX intends to hire 30 staff members following the opening of an office last month in the Dubai World Trade Center, strategically located in the business and financial hub of the United Arab Emirates.Byun further explained that by expanding its services from Dubai to jurisdictions like Saudi Arabia or Bahrain, where no domestic regulatory framework is in place, the local populations would benefit significantly from OKX’s regulation under an international regulator.Following Bahamian regulationCurrently regulated in the Bahamas, OKX does not allow customers from the United States to utilize its platform due to regulatory concerns. Following the collapse of FTX in November of last year, the Bahamas has suffered reputationally.It’s seen as a jurisdiction with much looser regulation and as the FTX debacle demonstrated, one that proved to be totally ineffective in preventing the epic fraud that occurred in that instance.Effective regulatory frameworkIn contrast, Dubai and the United Arab Emirates (UAE) in general seem to be making a much better effort towards a workable yet effective regulatory framework. Established in March 2022, VARA serves as the regulatory authority overseeing the burgeoning virtual asset sector in Dubai, excluding the Dubai International Financial Centre financial free zone. The United Arab Emirates has been actively working towards positioning itself to become a global crypto industry hub.No company has yet obtained a license for VARA’s full market product (FMP) stage, which would grant permission to serve retail clients. Byun revealed that OKX intends to apply for such a license.Byun concluded by expressing OKX’s willingness to be regulated and licensed in jurisdictions that adopt a balanced, clear, and transparent approach to the industry. The exchange is committed to operating within frameworks that prioritize investor protection and promote market integrity.