CrossAngle undergoes rebranding, shifting focus to ERP solution

Meme coin project Floki Inu has implemented restrictions on users in Hong Kong from accessing its staking programs following a warning from the Hong Kong Securities and Futures Commission (SFC). Last week, the regulatory body labeled Floki's staking initiatives as "suspicious investment products'' and urged caution among investors. On Jan. 26, it specifically cautioned Hong Kong users about the Floki and TokenFi staking programs, emphasizing the promised annualized returns ranging from 30% to over 100%. The Commission expressed concern over investment products that make claims of returns deemed "too good to be true."Photo by Jie Yeu Teoh on UnsplashStaking program access block in Hong KongResponding to the SFC's warning, Floki Inu took proactive steps to prevent users in Hong Kong from participating in its staking programs. In an official blog post which was published on Tuesday, the project's team announced the implementation of "practical measures" to block Hong Kong-based users from joining the staking programs. Additionally, prominent warnings have been placed on the Floki and TokenFi staking websites, clearly stating the ineligibility of Hong Kong users to participate. The SFC emphasized that neither of the mentioned investment products holds authorization in Hong Kong, warning that unauthorized schemes provide limited to no protection under its Securities and Futures Ordinance (SFO). Investors engaging in such unauthorized schemes may face the risk of losing their entire investments. Addressing regulatory concernsFloki Inu's team has responded to the regulatory concerns by actively collaborating with legal advisers to address potential regulatory issues associated with the staking project. The team committed to responsible community practices, while affirming its dedication to implementing measures to prevent Hong Kong users from participating in the staking program until regulatory concerns are resolved. As of Jan. 29, there is no record of Hong Kong users joining the staking programs, according to the Floki team. Furthermore, the team revealed that offline marketing activities in Hong Kong had already been halted before the project's launch in December 2023. Clarifying high yieldAddressing the SFC's primary concern regarding the high annual percentage yield (APY), the Floki team provided explanations. They clarified that the rewards are subject to volatility influenced by market dynamics and the value of staking rewards may fluctuate based on the market valuation of the token rewards. The team attributed the high APY for its staking programs to the allocation of the majority of TokenFi's token supply to token stakers, highlighting that the project had not raised venture capital funds or conducted a presale. They noted that market forces beyond their control had significantly increased the TokenFi price from its initial market cap at launch. In response to potential user confusion, the Floki team emphasized the complete decentralization of the staking programs for Floki and TokenFi, assuring users of a clear understanding of how the programs operate. They concluded by expressing their commitment to ongoing collaboration with regulatory bodies to ensure compliance and foster a responsible and transparent environment for users. Community response has been largely positive with one crypto influencer claiming: “You will not find a more legit team in #Crypto than $FLOKI. I’ve known about them for years and everyday they continue to handle themselves in the most informative, structured, and professional way.”   

China's highest judicial authorities, the Supreme People's Court and the Supreme People's Procuratorate, have released a judicial interpretation that includes the use of virtual assets to transfer illicit funds as a recognized method of money laundering. This move aims to strengthen the legal basis for investigating and prosecuting cases linked to cryptocurrency and money laundering activities.Photo by Vidar Nordli-Mathisen on UnsplashClarifying the legal status of crypto transactionsThe new judicial interpretation classifies virtual asset trading as a potential channel for money laundering. It specifies that using virtual-asset transactions or financial-asset exchanges to transfer or convert the proceeds of crime falls under the act of “disguising or concealing the source and nature of criminal proceeds and their gains by other means” as outlined in the country’s criminal law. Liu Honglin, founder of the Shanghai-based Man Kun law firm, clarified in a social media post that the interpretation does not equate all cryptocurrency trading with money laundering. According to Liu, the directive is not intended to criminalize the possession or trading of cryptocurrencies domestically but to provide clear legal guidelines for prosecuting specific illegal activities linked to crypto transactions. Impact on crypto trading and enforcementShao Shiwei, a fintech lawyer based in Shanghai, suggested that this interpretation could pose challenges for stablecoin merchants and increase legal risks for those involved in receiving illicit funds through crypto trading. The interpretation is part of broader efforts to regulate the virtual asset space, following the comprehensive ban on crypto trading activities by the People’s Bank of China and other authorities in September 2021. Despite the ban, many investors have continued to find ways to engage in crypto trading, sometimes circumventing capital control measures. For example, in May, Chinese police dismantled an underground bank that utilized the USDT stablecoin for foreign currency exchanges involving over 13.8 billion yuan ($1.9 billion). This incident underscores the ongoing challenges in enforcing existing regulations against the backdrop of innovative methods to bypass legal restrictions. 

The Philippines' financial regulator announced that it is implementing what amounts to a ban on Binance in the Southeast Asian nation by blocking local access to the leading global cryptocurrency exchange. This decision, publicized via a press release on March 25, comes as the Securities and Exchange Commission (SEC) raised concerns last November over Binance's operations in the country, citing a lack of necessary licenses for certain investment products. According to the press release, the SEC revealed that it sought assistance from the National Telecommunication Commission (NTC) to enforce the ban, expressing worries about the security of Filipino investors' funds on the platform. In a letter addressed to the NTC, SEC Chairman Emilio Aquino stated:"The SEC has identified the aforementioned platform and concluded that the public's continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos.”Photo by Krisia on PexelsA similar move was taken last December by the Financial Intelligence Unit (FIU) in India, as it acted to block access to what it deemed to be non-compliant global crypto exchanges. Unlicensed servicesThe SEC alleges that Binance offers services like leveraged trading and crypto savings accounts without the required licenses, violating the country's Securities Regulation Code. Consequently, the ban is set to be implemented within three months, allowing investors time to exit their positions held through Binance. Furthermore, the SEC has requested Google and Meta to restrict Binance-related advertisements targeted at Filipino users on their platforms, extending the regulatory measures to online advertising as well. A similar stance was taken by authorities in Thailand last August with the Ministry of Digital Economy and Society (MDES) engaging in talks with Facebook in an effort to curb questionable crypto-related advertising on the platform. Regulatory setbackThis move by the Philippines' financial watchdog marks another regulatory setback for Binance, which has faced increasing scrutiny globally. In December 2023, a U.S. court ordered Binance to pay significant fines to the Commodity Futures Trading Commission (CFTC) for evading federal law and operating an illegal derivatives exchange. As part of the settlement, Binance's former CEO, Changpeng Zhao (CZ), agreed to step down from his position, with Zhao also facing civil and criminal charges related to anti-money laundering laws. The SEC's cautionary stance against Binance dates back to November 2023, shortly after Zhao's legal troubles in the U.S. emerged. At that time, the SEC expressed its intention to ban Binance in the Philippines, though the execution was postponed due to changes in the leadership of the regulatory body. Notably, Kenneth Stern, who headed up Binance's operations in the Philippines, exited the company in July 2023, amidst mounting regulatory pressures and legal challenges. Binance had seen many leading executives part ways with it in the lead-up to the company’s settlement with the U.S. Department of Justice (DoJ) last year. With regulatory actions tightening around Binance globally, the future of the exchange in various jurisdictions remains uncertain. The ban in the Philippines adds to the ongoing regulatory challenges faced by the company and underscores the growing importance of compliance within the cryptocurrency industry.