Oman’s Crypto Mining Expansion Signals Further Economic Diversification

Hong Kong Crypto Licensing Yet to Result in Job SurgeWhile Hong Kong has seen a rush for crypto licenses, scrambling for licensing has not yet resulted in a corresponding surge in job opportunities, according to recruiters in the industry.Approximately 150 companies applied for a local crypto license on June 1, allowing them to operate crypto trading platforms, but recruiters have not witnessed a high demand for talent in the field. That’s according to reports received by Cointelegraph from a number of recruiters active in the crypto space in the Chinese autonomous territory.Photo by Simon Zhu on UnsplashBear market hangoverSue Wei, the Managing Director of major recruitment firm Hays, revealed that her firm has experienced a significant decrease in requests for recruiting technical talent since the recent dip in the crypto market. This decline was particularly notable when many talents were laid off en masse, which led to hesitancy among individuals to work for crypto companies due to the volatile nature of the business, heavily reliant on cryptocurrency prices.Neil Dundon, the Founder of crypto recruiter Cryptorecruit, also noted a lack of significant activity in the Hong Kong market. Despite the regulatory changes, venture activity remains low. However, Dundon expressed optimism that the market has reached its bottom and expects an upward trend to emerge soon.Olga Yung, the Managing Director of Michael Page Hong Kong, echoed the sentiment, stating that there hasn’t been a substantial increase in individuals seeking jobs in the Web3 sector, despite the government’s recent efforts to promote it. However, Yung did mention a slight increase in Web3 firms seeking legal and compliance hires in the latter half of Q2 2023.At the time of publication, 85 crypto-related jobs were being advertised on LinkedIn. Meanwhile, Hong Kong’s Cyberport, the city’s flagship technology hub, has attracted more than 150 companies operating within the Web3 space over the course of the past 12 months. Authorities in Hong Kong are also trying to entice Web3 companies based in mainland China to establish bases within Hong Kong.Increased job openings anticipatedAlthough these firms have displayed enthusiasm in entering the Hong Kong market, the recruitment needs of the crypto industry remain relatively light at present, as many Web3 companies are still in their early stages of development. However, recruiters anticipate a rise in job openings as these companies continue to grow and mature.Kevin Gibson, Founder of Proof of Search, a Web3 recruitment specialist, said that it may take six months before current crypto licensing activity in Hong Kong translates into a surge in demand for staff. Gibson maintains that specialist talent in Hong Kong is in short supply due to many such professionals having left the city in recent years.While Hong Kong has witnessed a rush for crypto licenses, the recruitment landscape in the industry has yet to experience a corresponding surge. However, recruiters remain optimistic about future job opportunities as Web3 companies progress and regulatory conditions stabilize.With Singapore-based Matrixport and international banking firm Standard Chartered both predicting a Bitcoin unit price in the region of $120,000 by the end of 2024, the market is expected to trend upward in the coming months. That could potentially lead to increased hiring activity in the crypto sector.

New York Bans CoinEx While Seizing Crypto AssetsCoinEx, a Hong Kong-based cryptocurrency exchange, has been banned from operating in the US state of New York by Attorney General Letitia James. The ban comes after the exchange allegedly failed to register as a securities and commodities brokerage and falsely represented itself as an exchange.Photo by Jan van der Wolf on Pexels$1.7 million seizureThat’s according to a statement published by the Office of the New York State Attorney General on Thursday. As part of an agreement reached between the parties, over $1.7 million worth of CoinEx’s funds have been seized.Under the terms of the agreement, approximately $1.1 million will be returned to 4,691 investors from New York, and an additional $600,000 will be paid in penalties to the state. To prevent access by New York IP addresses, CoinEx must implement geo-blocking. Moreover, the exchange is forbidden from creating new accounts for customers based in the United States.Trade prohibitionThis recent development resolves a lawsuit filed against CoinEx in February by the New York state. The state accused the exchange of misleading investors and failing to register with local authorities. In accordance with the consent order, CoinEx is now prohibited from offering, selling, or purchasing securities and commodities in New York and cannot make its platform available in the state.James emphasized the consequences for crypto companies that disregard New York’s laws and put investors at risk. The agreement serves as a warning that her office will continue to crack down on such companies. CoinEx users have a 90-day period to recover their crypto funds directly from the exchange.After this period, eligible investors can request fiat currency refunds by emailing coinexrefund@ag.ny.gov. Refunds will be provided in cryptocurrency or cash equivalents held in accounts as of April 25.CoinEx faced a lawsuit in the New York Supreme Court on February 22, where Attorney General James alleged that the exchange engaged in fraudulent practices and violated the state’s Martin Act, known for its strict anti-fraud provisions. The complaint included tokens such as Amp, LBRY Credits (LBC), Rally (RLY), and Terra.Harsh stanceThe banning of CoinEx in New York highlights the regulatory scrutiny surrounding cryptocurrency exchanges and the importance of compliance with local laws and regulations. On the one hand, the enforcement actions taken by authorities aim to protect investors and ensure the integrity of the financial system.However, the state of New York has been particularly harsh in its dealings with crypto companies. As today’s statement reveals, the New York Attorney General has taken action previously against crypto exchange Kucoin, crypto lending platform Nexo, and USDT stablecoin issuer Tether.These actions tie in with the current anti-crypto regulatory pushback that prevails in the United States right now. Other state agencies, including the Securities and Exchange Commission (SEC) who last week sued global crypto exchanges Coinbase and Binance, the Federal Reserve, the Department of the Treasury, and the Federal Deposit Insurance Corporation (FDIC), have all conspired to crack down on the industry in the US in recent months.

UK Watchdog Adds Crypto Exchanges to Warning ListThe UK’s Financial Conduct Authority (FCA) has expanded its warning list to include nearly 150 digital asset companies, including crypto exchanges HTX and KuCoin.Photo by Maxim Hopman on UnsplashPromotion without approvalThese firms have been added to the list due to their promotion of services in the UK without obtaining the necessary regulatory approvals. The move comes as the FCA strengthens its oversight of the cryptocurrency sector.The FCA recently broadened its rules on financial promotions, effective from October 8, to encompass crypto-asset service providers, regardless of their geographical location. This means that all crypto platforms are now obligated to display clear risk warnings to UK-based consumers and adhere to more rigorous technical standards. Additionally, they must implement a mandatory 24-hour cooling-off period for new customers.Exchanges respondIn response to the inclusion of their platforms on the FCA’s warning list, both HTX and KuCoin issued statements. A spokesperson for HTX, known until recently as Huobi, clarified that the firm does not operate or market its services in the UK. KuCoin, on the other hand, acknowledged that it doesn’t operate in the UK but expressed its commitment to adapt its products and services to ensure compliance with the relevant laws and regulations in each country.Another exchange, OKX, alongside global exchange Binance, have both indicated that they are working towards complying with the FCA’s regulatory requirements in respect of marketing.The FCA issued a generic warning message for both HTX and KuCoin, stating:“This firm may be promoting financial services or products without our permission. You should avoid dealing with this firm.”Non-compliance with the FCA’s regulations can result in severe penalties, including takedown requests for websites and apps, substantial fines, and potential legal action, which could lead to imprisonment.It’s worth noting that HTX Advisor, Justin Sun, has encountered regulatory challenges in the past. In March, the US Securities and Exchange Commission (SEC) accused Sun of fraud and market manipulation related to TRX, the native cryptocurrency of his Tron blockchain. Despite holding licenses to operate in various jurisdictions, HTX’s website does not specifically mention the UK as a prohibited venue.KuCoin has its platform restricted in several countries, including the US, Singapore, Hong Kong, mainland China, Thailand, Malaysia, and Canada’s Ontario province. Notably, the UK is not listed among these restricted locations.The FCA’s decision to rapidly identify and publicize crypto firms violating the expanded rules underscores increasingly stringent regulatory requirements. The regulator is continuously updating its list of violators as new infractions are uncovered. In August, the UK regulator published data that demonstrated that only 13% of crypto businesses who have applied to trade in the UK have been offered permits to do so.Lucy Castledine, the FCA’s Director of Consumer Investments, emphasized the dynamic nature of the list, which is constantly evolving to keep pace with emerging issues within the crypto sector.As the FCA takes a more proactive stance in overseeing crypto businesses, the warning list serves as a tool for consumer protection, signaling the importance of adherence to regulatory standards in the cryptocurrency ecosystem.