Modhaus attracts $8M in advancing blockchain-based K-pop fan engagement

Bullish Emerges as a Bidder for Bankrupt FTX ExchangeBullish, a Gibraltar-based crypto exchange with strong ties to Asia, has emerged as a prominent bidder for the bankrupt trading platform FTX, which filed for bankruptcy protection in November last year.Photo by Kelly Sikkema on UnsplashValuable customer baseUp until that point, FTX was a thriving player in the cryptocurrency market. However, it is now in the process of seeking new ownership or financial restructuring to resurrect its operations. In a report published on Tuesday, The Block outlined that according to sources familiar with the situation, Bullish is eager to acquire FTX primarily for its valuable customer base.The news follows the filing of a stakeholder brief to the bankruptcy court in Delaware in the United States by the FTX Debtor on Monday. The brief outlined that the Debtor, led by new CEO John Ray, has reached out to more than 75 bidders to evaluate the potential relaunch of the FTX exchange business.Bullish aims to leverage FTX’s existing user network, intending to convert as many of them as possible into Bullish customers. However, it’s worth noting that this complex negotiation process may face challenges and uncertainties along the way.Asian connectionsAlthough it’s incorporated and registered in Gibraltar, only 4% of the company’s staff are Gibraltar-based. Meanwhile, the firm has offices in Singapore and Hong Kong with those locations accounting for 49% of the company’s overall workforce, according to LinkedIn data. Back in November the firm confirmed that it wasn’t one of the many crypto businesses with exposure to the FTX collapse.Bullish was founded by Brendan Blumer, with Bloomer currently acting as the exchange’s Chairman. Blumer previously founded Block.one, the developer behind the EOS blockchain. He also successfully founded and later exited Okay.com, Hong Kong’s largest digital property agency.Other Asia-centric players in the crypto sector had expressed interest in buying the FTX business (or parts of the business) earlier in the year. These included Singapore’s BSQ Capital and Gamepay, India’s CoinDCX, Japan’s 5G networks developer Docomo and e-commerce giant Rakuten, and Hong Kong’s OKC Holdings.Tribe Capital interestThe Block article also outlines that US-based Tribe Capital is another significant bidder in the running. Tribe Capital had FTX within its venture portfolio prior to the exchange’s downfall and subsequent bankruptcy at the close of the previous year. It had also appeared on the list of 363 sales parties back in June, and prior to that still, it had expressed its interest in buying the business.To establish a clear timeline for its business restructuring efforts, the estate has set a deadline for new bids, which falls on September 24. The FTX estate is still at an early stage in trying to resuscitate the business. Even if it’s successful in that endeavor, it’s not expected that a new business will emerge until Q2 2024 at the earliest.Separately, a criminal prosecution against FTX Founder Sam Bankman-Fried is progressing with a trial scheduled to take place in New York in October. Presently Bankman-Fried is incarcerated in a New York City jail while he awaits trial, having been found to have breached his bail conditions on the grounds of witness tampering.

Uzbekistan Revamps Crypto Mining with New Regulatory FrameworkUzbekistan is ushering in a reset on its approach to cryptocurrency mining with the implementation of a new regulatory framework by the central Asian country’s National Agency of Perspective Projects (NAPP).Photo by Farhodjon Chinberdiev on UnsplashFocusing on solar powerThese freshly endorsed rules were announced earlier this week. They establish stringent guidelines for cryptocurrency mining operations within the country, reserving mining exclusively for registered legal entities and mandating the use of solar power.Under the sweeping regulations, individual miners are barred from participating in cryptocurrency mining activities, a move aimed at bringing structure and oversight to the expanding crypto mining sector within Uzbekistan’s borders.A key feature of the framework is the requirement for cryptocurrency miners to harness electricity generated by solar photovoltaic means. This environmentally conscious approach mirrors global endeavors to promote sustainability and clean energy sources in the crypto mining sector. Miners are also permitted to connect to the national electrical power grid, but only under specific conditions as outlined in the legislation.Safeguarding the power gridIn this respect, Uzbekistan is likely to be learning from the experiences of its northern neighbor, Kazakhstan. Following a ban on crypto mining in China in 2021, Kazakhstan suddenly became the second largest global center for Bitcoin mining. Unprepared for this eventuality, this mining activity caused major problems for the country’s power grid, resulting in blackouts and unrest.The NAPP underscores the necessity for mining operations and service providers to adhere to these newly established rules. To engage in cryptocurrency mining legally, entities must secure the requisite permits and licenses. These permits, valid for five years, come with strict reporting obligations, ensuring transparency and regulatory compliance.Moreover, cryptocurrency miners must prioritize the technical integrity of their electrical supply systems, emphasizing safety and reliability to prevent electrical accidents and maintain secure operating environments.In a bid to nurture a controlled and regulated cryptocurrency ecosystem, Uzbekistan’s crypto watchdog has already issued licenses to several entities, including a cryptocurrency exchange, a crypto depository, and ten other crypto trading platforms. Encouragingly, discussions have taken place with global exchanges like Binance, Huobi, and Bybit, signaling Uzbekistan’s ambitions to establish itself as a cryptocurrency hub.Ban on individual minersThe NAPP’s latest framework also outlaws the mining of anonymous cryptocurrencies designed to enhance transaction privacy, such as Monero (XMR). This measure aligns with international efforts to combat illicit activities linked to anonymous digital currencies.It’s worth noting that these new regulations represent the latest in a series of decrees by the Uzbek government, reiterating the ban on individual miners and the use of cryptocurrencies for domestic payments. Consequently, the full impact of these recent regulations on the nation’s cryptocurrency mining landscape remains to be seen.Uzbekistan’s decision to confine cryptocurrency mining to legal entities employing solar power reflects a growing understanding of the opportunity the activity provides to effectively exploit excess renewable power. In July, the President of eastern neighbor Kyrgyzstan put forward an ambitious project to use crypto mining to exploit the country’s hydro-electric power resources.

JPEX Exchange Scandal Sees Crypto Regulation Under Scrutiny in Hong KongWhile Hong Kong has been developing steadily as a crypto sector hub, the focus in the Chinese autonomous territory has turned towards regulation after a recent scandal involving an unlicensed cryptocurrency exchange.Photo by Ihor Saveliev on UnsplashOngoing investigationYesterday we reported on some arrests relative to problems experienced at crypto exchange JPEX. The fallout continues on Tuesday, with the Hong Kong police now understood to have arrested eight individuals, including social media influencers who promoted the exchange and JPEX employees, on allegations of fraud. This illicit activity in and around the JPEX exchange has affected over 1,600 investors, implicating more than $150 million in assets.JPEX, in response to mounting pressure, announced the suspension of trading on its platform. In a statement, the exchange mentioned ongoing negotiations with third-party market makers to address liquidity shortages. However, JPEX also accused an unidentified third-party market maker of maliciously freezing funds, further complicating the situation.Politicians and regulators speak outResponding to the incident via a press conference on Tuesday, Hong Kong’s Chief Executive, John Lee, emphasized the significance of investing in virtual assets through licensed platforms. Lee stated:“This incident highlights the importance that when investors want to invest in virtual assets, then they must invest on platforms that are licensed.” He also pledged that the Securities and Futures Commission (SFC) would closely monitor the situation to ensure investor protection.Elizabeth Wong, the Head of the SFC’s fintech unit, revealed that an investigation was underway to determine whether JPEX had violated anti-money laundering laws. The SFC had already declared JPEX unlicensed, prompting numerous complaints from investors who were unable to withdraw their virtual assets or experienced unexplained reductions in their balances.Assets frozenHong Kong authorities have taken decisive action against those involved in the scandal. They have frozen bank accounts valued at 15 million Hong Kong dollars ($1 million) and seized three properties valued at 44 million Hong Kong dollars. The police have reported receiving 1,641 complaints related to JPEX, involving a staggering $1.2 billion Hong Kong dollars. By last Wednesday, the SFC had received in excess of 1,000 complaints and at that point, they notified the general public.The JPEX scandal has drawn attention to the need for stronger cryptocurrency regulations in Hong Kong, a region that has become attractive to cryptocurrency firms since mainland China banned cryptocurrency transactions in 2021. In mainland China, trading cryptocurrencies on foreign exchanges from within the country remains illegal.Hong Kong’s response to cryptocurrency regulation has evolved. Beginning on June 1, the SFC started accepting applications from cryptocurrency exchanges, allowing licensed operators to serve retail investors, provided they understand the associated risks. Previously, only professional investors had access to such exchanges. Currently, only two exchanges in Hong Kong, OSL Exchange and Hashkey Exchange, have received approval to operate.As Hong Kong reevaluates its approach to cryptocurrency regulation, the crypto sector will hope that it strikes a balance between fostering innovation and protecting investors from fraud and market manipulation.