Hong Kong Bank to Act as Settlement Bank for Crypto Firms

MEVerse and XPLA forge partnership to herald new era of blockchain gamingMEVerse, the blockchain metaverse platform operated by South Korean gaming company ME2ON Group, and global layer 1 blockchain XPLA have established a partnership to share their respective technologies and create content to popularize Web3 gaming, according to an official announcement on XPLA’s Medium on Wednesday (KST). Their larger goal outlines a commitment to redefining the industry’s landscape by creating a dynamic and engaging metaverse for users worldwide.Photo by Scott Graham on UnsplashHigh hopes“XPLA aims to broaden the horizons of the Web3 industry and contribute to the popularization of blockchain through collaboration with various projects. We plan to work closely with the MEVerse platform, which has secured a high-level lineup of Web3 games, to provide participants with an even richer experience,” said Paul Kim, Team Leader at XPLA.Seamless metaverse experienceMEVerse is known for leveraging its high-speed blockchain technology, which can process 9,000 transactions per second, to help users immerse themselves in the metaverse and enjoy the content it has to offer. Notably, it employs a Proof of Formulation (PoF) consensus algorithm developed by blockchain service platform FLETA — a more eco-friendly alternative to Proof of Work (PoW) that prevents forks by confirming blocks and transactions in real time. The platform also implements cross-chain technology to enhance scalability and interoperability.MEVerse’s blockchain infrastructure includes the Web3 P2E casual game portal MEVerse GameZ, non-fungible token (NFT) marketplace MEVerse DEX, blockchain explorer MEVerse Scan, and more. It also features games like X Heroes: NFT War and Pocket Battles: NFT War.This development is the newest partnership in XPLA’s growing lineup. The platform recently teamed up with Study-to-Earn (S2E) project EDUM and Game and Earn (G&E) platform PERPLAY in an effort to branch out its business.

Bithumb Eliminates Trading Fees to Attract Investors and Gain Greater Market ShareSouth Korean cryptocurrency exchange Bithumb has waived trading fees for all cryptocurrencies available on its platform. Before this change, users were charged trading fees ranging from 0.04% to 0.25%.Photo by Nicholas Cappello on UnsplashKorean won and BTC marketsThe platform’s Korean won market offers trade for 241 cryptocurrencies, whereas its BTC market caters to 24. The no-fee policy will remain in effect until a further announcement is made.Many suggest this move by Bithumb aims to expand its domestic market share. According to local media outlet ZDNet Korea, Upbit dominates with 86% of the Korean crypto market, leaving Bithumb trailing with 11%.Revenue impact and long-term strategyWith its 10th anniversary approaching in January, Bithumb has made this decision, potentially to attract more investors. An official from the exchange highlighted the importance of attracting investors to secure liquidity. While the absence of trading fees, Bithumb’s main revenue channel, may result in a revenue dip, the official believes that a larger user base secured by this move will be beneficial in the long run.

Polymarket activity under scrutiny in Taiwan due to election contractsTaiwanese law enforcement is currently delving into the activities of online influencers and community members promoting Polymarket contracts related to the upcoming presidential election which is due to be held on Jan. 13.Polymarket is a New York-based Ethereum-centric prediction market. The platform runs on the Ethereum layer-2 scaling solution network Polygon. The project invites platform users to bet on the outcomes of a broad spectrum of events, ranging from politics to entertainment.Users deposit USDC stablecoin, choose an event to bet on and purchase “outcome shares” through USDC. The user has the ability to trade those shares anytime before the resolution of the contract.Photo by Ethan Lin on UnsplashPossible election law violationsThe Taiwanese investigation came to light in a report by Taiwan-based crypto publication BlockTempo, which was published last week. The investigation comes as concerns arose about potential violations of Taiwan’s Presidential and Vice Presidential Election and Recall Act, which explicitly prohibits gambling on election outcomes.Multiple influencers and crypto community members have reportedly been subpoenaed for their involvement in Polymarket contracts, allowing users to place bets on the January election. At present, the betting pool for the election holds over $300,000, with a market prediction favoring the Democratic Progressive Party’s Lai Ching-te, also known as William Lai, with a 78% chance of winning.However, the legality of such betting activities is in question under Article 88–1 of Taiwan’s election law. It stipulates that anyone gambling on the outcome of an election or recall in a public place or a place open to the public may face imprisonment, short-term detention or a fine of up to NT$100,000 ($3,196.85).Sherman Lin, an attorney at Taipei-based Lin & Partners, emphasized the seriousness with which law enforcement views gambling activities related to presidential elections in Taiwan. He explained that broad legal interpretations under the Presidential Election and Recall Act have led to investigations and convictions of gambling website operators targeting Taiwanese gamblers. Lin stated:“Law enforcement agencies in Taiwan are vigilant in investigating any gambling activities related to presidential elections.”“Broad legal interpretations have been applied to gambling crimes under the Presidential Election and Recall Act, leading to investigations and convictions of gambling website operators in Taiwan targeting Taiwanese gamblers,” he added.Prohibited in United StatesComparing the situation to the United States, where gambling on election outcomes is illegal in most states, Lin noted that enforcing such regulations often falls under the jurisdiction of the Commodity Futures Trading Commission (CFTC). Polymarket’s Terms of Use explicitly prohibit usage by U.S. persons.Despite potential legal consequences for gambling activities in Taiwan, including participation, promotion and platform hosting for betting pools like Polymarket, Lin pointed out that enforcing actions against overseas entities poses jurisdictional challenges. Taiwan’s legal reach is primarily limited to domestic actors, creating complexities in addressing decentralized platforms like Polymarket.Lin suggested that law enforcement may focus on online influencers who promoted the Polymarket contract, as seen in previous cases involving the collapse of the unlicensed crypto exchange JPEX in Hong Kong.Moreover, while there are legal precedents for pursuing centralized entities organizing election gambling, Lin highlighted that no established legal precedent in Taiwan currently exists for decentralized platforms organizing election betting.