Terraform Labs claims bankruptcy protection will help SEC lawsuit appeal

Rotonda holds blockchain hackathon at GBIC 2023Rotonda, the operator of the digital asset wallet platform Bithumb Buritto Wallet, hosted a hackathon on Monday (local time) at this year’s Global Blockchain Incheon Conference (GBIC), centered around the theme of addressing a variety of local issues, such as carbon reduction, industrial and urban issues and public services using Web3 technology. Contestants from across the country gathered to create blockchain-based prototypes aimed at addressing such issues.Photo by Marvin Meyer on UnsplashOther blockchain and Web3 companies like Roa Core, Ret Games and ReFi Korea also participated as sponsors for the competition, which was held at Songdo Convensia, an international conference complex located in Songdo International Business District.Innovative solutions recognizedThe ten teams that made it to the finals presented a range of ideas related to the theme, which were judged based on how applicable, feasible and influential they are, as well as their potential for development and social contribution.“Through this year’s hackathon, we were introduced to innovative ideas and high-quality technologies to address various local problems. Discovering and supporting passionate entrepreneurs is in line with the values that we uphold within our ecosystem at Bithumb Buritto Wallet,” said Lee Sang-ho, Vice President at Bithumb Burrito Wallet.The grand prize of KRW 5 million (approximately $3,600) was awarded to DIY, a team that developed a project to promote cultural resources, tourism experiences and sports industries in Incheon using dynamic non-fungible tokens (dNFTs). dNFTs can be adapted or changed based on external events and data. The hackathon judges praised the team for adding gamification elements to increase citizen participation and streamlining administrative procedures through smart contracts. The team also won additional benefits like office space in Incheon’s Jemulpo Smart Town.“We are delighted to be recognized for the in-depth discussions we had amongst our members to develop a highly usable and differentiated platform,” the team said in a statement. “We will strive to leverage blockchain technology to create various success stories.”Additional winnersTwo runner-up prizes went to the Caffeine Addiction team, which developed a platform for motivating coffee drinkers to dispose of used coffee grounds, and the Datayo team, which developed dBus, a smart mobility platform with token-based crowdfunding processes. They received KRW 3 million and KRW 2 million, respectively, in prize winnings.

Chinese authorities are gearing up for a significant amendment to the country's anti-money laundering (AML) regulations, with a specific emphasis on cryptocurrency-related transactions. Growing concerns about cryptoThe move, reported by Chinese business and financial news media outlet Jiemian on Wednesday, comes in response to growing concerns among policymakers in China about the need for heightened scrutiny within the burgeoning crypto industry. This marks the first substantial update to China's AML rules since their introduction in 2007. In 2021, China took a decisive step by imposing a comprehensive ban on cryptocurrency use, which included prohibiting offshore exchanges from offering services and putting a stop to all forms of mining. However, despite these restrictions, mainland users have managed to find avenues to access the crypto market. The upcoming amendment to AML regulations aims to introduce more stringent guidelines to address and mitigate these activities effectively. Prime Minister Li Qiang chaired an executive meeting of the State Council on Jan. 22 to deliberate on the revised AML law. The initial draft of the AML regulations was proposed in 2021. The revised version is set to become law by 2025 after being included in the legislative agenda of the State Council for 2023.Photo by Max van den Oetelaar on UnsplashDigital assets not clearly definedUrgency was stressed in addressing cryptocurrency money laundering at the legal level, as the current laws lack a clear definition of digital assets. Although the revised draft includes measures to prevent digital asset money laundering, concerns were raised about the absence of operational guidance on subsequent actions such as asset seizure, freezing, deduction and confiscation in money laundering cases involving digital assets. Experts noted that there is room for improvement in combating digital asset-related money laundering. China's existing AML law is designed not only to deter money laundering but also to protect fiscal order and combat related crimes. As a country with a deep understanding of money laundering and terrorist financing risks, China is not included in the Financial Action Task Force's (FATF) list of AML-deficient countries. However, a 2019 FATF report suggested that China should focus more on addressing the laundering of crime proceeds and expand its resources for national risk assessment. Circumventing the banDespite the formal ban on cryptocurrency circulation and mining by Chinese authorities, there are still avenues for Chinese nationals to access the digital asset ecosystem. BitMEX founder Arthur Hayes recently indicated that wealthy Chinese individuals have access to banking in Hong Kong, serving as the gateway for mainland China to global capital markets, including the cryptocurrency markets. While many crypto miners left the jurisdiction following the ban in 2021, Chinese companies account for a significant proportion of mining equipment manufacturing. Major exchanges like Binance and OKX have Chinese roots, underscoring the nation's influence in the global crypto landscape. Before the cryptocurrency trading ban in China, trading volumes on yuan-denominated crypto exchanges surpassed those of dollar pairs. As China prepares to fortify its AML regulations, the crypto industry awaits further clarity on how these changes will shape the landscape and influence the conduct of cryptocurrency-related activities within the country.  

North Korea Using DeFi for Money LaunderingThe United States Treasury issued a warning on Thursday where it identifies North Korea as a user of DeFi services for money laundering. According to the Treasury, both North Korea and criminal organizations have been using DeFi platforms to launder dirty money.©Pexels/PixabayWhile DeFi has been praised for its potential to democratize finance and provide greater financial freedom to users, it has also been criticized for its lack of regulatory oversight. According to the Treasury, this lack of oversight has made DeFi platforms an attractive target for money launderers and other criminal organizations.In its warning, the Treasury noted that North Korea has been using DeFi platforms to launder money and evade international sanctions. The country is believed to have developed a sophisticated system for laundering money through cryptocurrency exchanges, and it is now turning its attention to DeFi platforms.Illicit money movementCriminal organizations are also using DeFi services for money laundering, according to the Treasury. These groups are said to be using DeFi platforms to move money around the world, in order to avoid detection and to launder the proceeds of their illicit activities.The use of DeFi for money laundering poses a significant challenge for law enforcement agencies, as these platforms operate outside of the traditional banking system and are often difficult to track. The Treasury has urged DeFi platforms to implement strong anti-money laundering (AML) and know-your-customer (KYC) policies, in order to prevent their services from being used for criminal activities.The warning from the Treasury comes at a time when DeFi is becoming increasingly popular among investors and users. According to data from DeFi Pulse, the total value locked in DeFi protocols recently surpassed $100 billion, indicating a significant level of interest and investment in the sector.Calls for greater regulationHowever, the lack of regulatory oversight and the potential for DeFi to be used for money laundering and other criminal activities have raised concerns among regulators and policymakers. Some have called for greater regulation of the sector, in order to prevent its abuse by criminal organizations.Despite these concerns, many proponents of DeFi argue that the sector has the potential to transform the financial industry and provide greater financial freedom to users. They point to the benefits of decentralized systems, such as greater transparency, lower fees, and faster transaction times.The use of DeFi for money laundering is a complex issue that requires a multifaceted approach. While regulators and policymakers must work to implement strong AML and KYC policies, users and investors must also take responsibility for ensuring that they are using DeFi platforms in a responsible and legal manner.Ultimately, the future of DeFi will depend on how the sector is able to balance innovation and regulation. While DeFi has the potential to transform the financial industry, it must also be subject to appropriate oversight and accountability in order to prevent its abuse by criminal organizations.By working together, regulators, policymakers, and industry stakeholders can help to ensure that DeFi is used for its intended purpose — to provide greater financial freedom and empowerment to users around the world.