Bullish Emerges as a Bidder for Bankrupt FTX Exchange

SC Ventures Exits Digital Asset Custody Infrastructure InvestmentSC Ventures, the Singapore-headquartered corporate venture capital arm of Standard Chartered Bank, has announced its decision to divest its stake in Metaco, a Swiss-based digital asset custody firm. As one of Metaco’s early adopters, SC Ventures played a crucial role in supporting the company’s growth and development.Photo by Pixabay on PexelsDissolving a partnershipHaving been the largest institutional investor in the digital custody infrastructure firm, SC Ventures contributed significantly to the enhancement of Metaco’s award-winning custody product. The partnership between the two entities facilitated valuable contributions in various areas, including corporate governance, business strategy, institutional use cases, and access to SC Ventures’ extensive ecosystem. Through their collaboration, SC Ventures aimed to provide institutions with a secure and compliant ecosystem for operating digital assets.Ripple acquisitionIn a recent development, enterprise blockchain company Ripple acquired Metaco for $250 million. Ripple’s acquisition of Metaco signifies its diversification into custody solutions, expanding its business opportunities within the blockchain sector. With this move, Ripple aims to offer its customers technology that enables custody, issuance, and settlement of various types of tokenized assets. Further evidence of Ripple’s interest in this area emerged last week with the news that the company is collaborating with authorities in Hong Kong to showcase real world asset tokenization.Despite the acquisition, Metaco will continue to operate as an independent brand and business unit, under the leadership of its founder and CEO, Adrien Treccani. This decision ensures continuity and stability for Metaco’s existing clients and partners while benefiting from the resources and support provided by Ripple.Ongoing linkWhile the divestment of a division of an international banking behemoth like Standard Chartered from a digital asset infrastructure firm may seem like a bad news story, it’s likely not that straightforward. It’s worth noting that Zodia Custody, itself a digital assets custody venture incubated by SC Ventures, continues to maintain a strategic partnership with Metaco.The ongoing collaboration between Zodia Custody and Metaco focuses on matters related to compliance and risk management. This partnership ensures that both companies can leverage their respective expertise to address the increasing demand for safe and compliant access to cryptocurrencies and digital assets from institutional investors.Despite this divestment, it appears that SC Ventures still recognizes the importance of supporting emerging technologies on the cusp of adoption through its continued involvement with Zodia Custody, continuing advancements in the digital asset space.SC Ventures’ exit from its stake in Metaco marks a significant milestone in the ongoing evolution of both companies. While SC Ventures has played a vital role in Metaco’s growth, the acquisition by Ripple opens up new opportunities for Metaco to expand its offerings and cater to a broader customer base. Meanwhile, the collaboration between Zodia Custody, Metaco, and SC Ventures ensures that institutional investors have access to secure and compliant solutions as the demand for digital asset services continues to rise.

In a widening crackdown on overseas crypto exchanges operating illegally in India, the Financial Intelligence Unit (FIU) has issued “compliance show-cause” notices to some of the leading global crypto platforms. In a statement published by the FIU on Thursday, the agency outlined that it has issued compliance show-cause notices to nine offshore virtual digital assets service providers. These include Bitfinex, Bittrex, Binance, Bitstamp, Gate.io, Huobi, Kraken, Kucoin and MEXC Global.Photo by Naveed Ahmed on UnsplashRequest to block URLsThe FIU has also called on the information ministry to block the URLs of these entities, citing their non-compliance with Anti Money Laundering (AML) and Counter Financing of Terrorism (CFT) frameworks. The FIU is a national agency tasked with receiving, analyzing and disseminating information to enforcement agencies where suspect financial transactions are concerned. The move comes as part of India’s broader efforts to tighten oversight of the digital asset sector. Earlier this year, the government imposed money-laundering provisions on the crypto industry, aligning its regulations with those of other nations. In 2022, local crypto exchanges were dealt a significant blow with the introduction of a transaction tax, leading to a sharp decline in trading volumes. Unregistered platformsAccording to the FIU statement, offshore entities, despite serving a substantial number of Indian users, were operating without proper registration under AML and CFT frameworks. To address this, the FIU issued show-cause notices — a formal request for entities to demonstrate compliance with Indian laws when suspected of misconduct. It emerged earlier this month that in excess of 28 crypto platforms had registered with the FIU. Those compliant platforms were largely native Indian businesses. If the FIU’s recommendation is followed and in due course, URL access to the cited overseas exchanges is blocked, this could potentially be a boon for complaint platforms like WazirX, CoinDCX and ZebPay, at least in the short term. India’s actions against Binance, in particular, are not new. In 2021, the country’s anti-money laundering agency was reportedly investigating Binance’s potential involvement in a case related to betting apps. Binance, the world’s largest crypto exchange, has faced increasing regulatory pressure globally. In November, the company agreed to a $4.3 billion settlement, pleading guilty to anti-money laundering and U.S. sanction violations. As part of the settlement, CEO Changpeng Zhao agreed to step down. Community reactionNews of this development has caused some disquiet among Indian crypto advocates. However, taking to social media, Web3 marketer Abhinav Kumar wrote: “This isn’t a sign that crypto trading is suddenly going to be banned. . . . It’s a routine thing. The government wants to make sure foreign companies play by the same rules as Indian ones. That’s fair enough! Also remember India has over 20 million crypto investors now.” Leading crypto adoptionDespite regulatory challenges, India has emerged as a significant player in the global crypto market. Chainalysis’ 2022 global crypto adoption index ranked India as the top country by raw estimated transaction volume, second only to the United States. Responding to the growing crypto adoption, India is actively working on a regulatory framework based on joint recommendations from the International Monetary Fund and the Financial Stability Board. The government’s actions underscore its commitment to ensuring compliance within the crypto sector and aligning with international standards.  

Zkrypto Partners with LG CNS to Develop Blockchain-Powered Business ModelsZkrypto, a South Korean startup specializing in zero-knowledge proof technology, has entered into a memorandum of understanding (MOU) with tech solutions firm LG CNS, an affiliate of the nation’s conglomerate LG Group. The partnership aims to develop blockchain-powered business models.Photo by Shubham Dhage on UnsplashFrom academia to industryFounded in 2020 by Oh Hyun-ok, a professor of Information Systems at Hanyang University, and Kim Ji-hye, a professor of Electrical Engineering at Kookmin University, Zkrypto has been involved in a variety of projects. These range from enhancing privacy features for the Bank of Korea’s central bank digital currency (CBDC) to building a blockchain-based voting system for the National Election Commission.Meanwhile, LG CNS has been actively engaged in multiple blockchain initiatives, including a decentralized identity (DID)-enabled mobile employee ID system, a Token as a Service (TaaS) offering, and its own blockchain platform, Monachain. The company’s latest projects include the development of a platform designed for security token offerings.For corporate and retail customersBy pooling their respective expertise, Zkrypto and LG CNS strive to create new value and offer innovative services to both corporate and retail customers.Emphasizing the promising horizon of blockchain technology, an official from Zkrypto stated that the collaboration between the two companies is poised to explore new markets and opportunities.