WEMIX Foundation to Sponsor Binance Blockchain Week in Istanbul in November

Chinese Nationals Detained in Crypto Mining Clampdown in LibyaAuthorities in Libya have detained 50 Chinese nationals suspected of involvement in an illicit crypto mining operation in Zliten, a city located 160 kilometers east of the Libyan capital of Tripoli.The attorney general’s office in Libya made the announcement on Friday, revealing that the individuals were caught operating a cryptocurrency mining farm within an abandoned iron factory.Photo by Dmitry Demidko on UnsplashMining operation dismantledPhotos and videos released by the office of Attorney General Siddiq Al-Sour showcased the dismantling process of the extensive mining systems discovered in Zliten.This is not the first instance of Chinese miners being detained for crypto mining activities in the North African country. The development follows the recent arrest of ten other Chinese nationals in the city of Misrata on the Mediterranean coast, as well as at two sites within the capital, Tripoli. The individuals were apprehended on Wednesday while being caught “red-handed” with numerous powerful equipment used for intricate proof of work (PoW) mining calculations. The mining rigs were subsequently confiscated by the attorney general’s office.Mining banDespite the official ban on cryptocurrency mining in the country, Libya has witnessed a high prevalence of such activities, with the nation recording the highest percentage of cryptocurrency mining across the African continent in 2021. It is estimated that Libya accounted for approximately 0.6 percent of global Bitcoin production during that year.Libya’s appeal as a destination for cryptocurrency mining stems from its low electricity costs, which stand at a remarkably low rate of $0.004 per kilowatt hour. This cost is approximately 40 times cheaper than in the United States, making Libya an attractive location for miners.While energy may be cheap, the increased demand for electricity that crypto mining brings puts a strain on what was an already vulnerable power grid in the country. That has resulted in frequent and lengthy power blackouts, particularly during the summer months.A lack of oversight has also encouraged an influx of Chinese miners, albeit with these recent arrests, it appears that the Libyan authorities are stepping up the level of oversight and enforcement. The vast majority of Bitcoin miners were based in China up until a mining ban was enforced in 2021.Global issueThat event led to an exodus of miners internationally. Some established themselves legally in the United States and elsewhere. The first casualty of illegal mining was Kazakhstan. The sudden arrival of miners led to its power grid coming under pressure. As a consequence, the Central Asian country clamped down on the activity, and later regulated it.In response to these illegal activities, Libyan authorities have intensified their efforts to combat cryptocurrency mining operations. They are conducting investigations into alleged mining sites in Tripoli and Misrata, aiming to curtail these activities and mitigate the strain on the country’s electricity infrastructure.The recent arrests highlight the ongoing challenges associated with illegal mining activities in jurisdictions globally where cheap energy can be exploited, giving rise to the need for enhanced regulatory measures to address these issues.

Gate.HK, cryptocurrency exchange Gate.io’s Hong Kong entity, is discontinuing its operations and has retracted its application for a crypto trading platform license with the local regulator. The company announced on Wednesday a planned "major overhaul" of its platform and has ceased new user registrations and deposits immediately. In compliance with local regulations, Gate.HK will delist all tokens—including major ones like Bitcoin, Ether and USDT—on May 28, urging users to withdraw their assets by August 28. The trading platform, which launched officially in May 2023, aims to re-enter the Hong Kong market in the future after securing the necessary approvals and contributing to the virtual asset ecosystem.Photo by Kelly Sikkema on UnsplashRegulatory environment and industry responseThe withdrawal of the license application, initially submitted in February 2023, was noted on the website of the Hong Kong Securities and Futures Commission (SFC) on May 22, without a disclosed reason for the withdrawal. The SFC mandates that crypto trading platforms without a submitted license application by Feb. 29 must shut down by May 31 or within three months upon receiving further notice. This regulation has impacted several platforms, including HKVAEX and Huobi HK, both of which have recently withdrawn their license applications and ceased operations or faced operational uncertainties in the region. Currently, the SFC is reviewing applications from 20 crypto firms, indicating significant interest among global exchanges in securing retail trading licenses in Hong Kong. 

Sony Network Invests $3.5M in Startale Labs to Drive Global Web3 AdoptionSony Network Communications, a prominent Japanese internet service provider, has made an investment of $3.5 million in Startale Labs, an innovative Web3 company based in Singapore. The primary objective of this collaboration is to establish an infrastructure that will promote the global adoption of Web3 technologies.Photo by Bastian Riccardi on UnsplashTelecom meets Web3Sony Network Communications, founded in 1995, offers high-speed fiber-optic broadband services and operates in various sectors of the telecommunications industry. The company is actively involved in advanced technology ventures such as the Internet of Things (IoT) and artificial intelligence (AI). Meanwhile, Startale Labs specializes in the Web3 domain, providing advisory services related to Web3, supporting the creation of layer 1 blockchains and applications, and collaborating with other entities to develop core Web3 functionalities.As part of this partnership, Jun Watanabe, the President and Representative Director of Sony Network Communications, will join Startale Labs as a director. He expressed his gratitude for the collaboration, emphasizing the deepening ties between Sony and Startale Labs. He highlighted the fruitful joint efforts already underway to advance Web3 technologies. Both companies share the objective of fostering an infrastructure that facilitates global Web3 adoption. Jun Watanabe said this initiative will lead to the emergence of revolutionary Web3 applications.Sota Watanabe, the CEO of Startale Labs, acknowledged Sony Group’s remarkable achievements across diverse industries such as gaming, entertainment, and financial services. He believes that Sony holds great potential in the Web3 sector, and Startale Labs is well-positioned to contribute its expertise and knowledge to this domain. With this partnership, Sota Watanabe envisions a collaborative effort that will not only foster the global Web3 infrastructure but also drive the creation of valuable and impactful Web3 applications.Sony’s Web3 expansionSony Group has been actively exploring opportunities in the Web3 field. Earlier this month, Sony Bank, another affiliate of Sony Group, partnered with Mitsui & Co. Digital Asset Management (MDM) to introduce MDM’s security token service, Alterna, to the Tokyo-based online bank’s customers. Through this collaboration, Sony Bank customers can invest in real-world assets, such as large-scale real estate properties, using security tokens provided by Alterna. This platform opens up investment avenues that were previously inaccessible to retail investors due to high capital requirements. Notably, the minimum investment requirement through Alterna is 100,000 yen.Government supportThere’s also been a positive move from the Japanese government for the Web3 and cryptocurrency industry. The Japanese National Tax Agency recently announced the revised corporate taxation rules pertaining to crypto assets. Under the new amendment, companies are exempt from taxes on unrealized gains from cryptocurrencies if the virtual assets were issued by the company and have been continuously held since issuance, or if they have remained subject to certain transfer restrictions since issuance.Startale Labs CEO Sota Watanabe welcomed this development on his Twitter account, stating that Web3 projects like Astar Network can now conduct business in Japan without moving their operations overseas. Meanwhile, he highlighted the importance of addressing the issue of corporate taxes on tokens issued by third parties in the future. He hoped for continuous engagement in constructive discussions with politicians and government agencies.