Roger Ver sues Matrixport over frozen crypto funds

Turkey has decided not to tax profits from stocks and cryptocurrencies but is considering implementing a “very limited” tax on transactions, according to Treasury and Finance Minister Mehmet Şimşek. In a recent interview in Ankara, Şimşek stated the government's intention to ensure every financial sector contributes to the national revenue without specifying the size of the potential tax. He emphasized that the approach aims to enhance fairness and effectiveness in the taxation system. Historically, in 2008, Turkey lowered its tax rate on stock market profits from 10% to 0%, promoting investment in the stock market. Despite earlier reports from Bloomberg suggesting new taxes on gains from stock and cryptocurrency trading, the government has clarified its position to only consider transactional taxes.Photo by Engin Yapici on UnsplashCrypto tax regulationsCurrently, Turkey lacks specific regulations for taxing cryptocurrencies but is actively working to establish a comprehensive legal framework for digital assets. A bill introduced by Turkey’s ruling party on May 16 mandates crypto businesses to obtain licenses and adhere to international standards. This includes regulation by capital markets boards and mandatory revenue collection from crypto service providers. The bill also aims to ban foreign crypto brokers, fostering a locally regulated ecosystem and addressing concerns from the Financial Action Task Force (FATF) to remove Turkey from its "gray list." According to a report by Chainalysis, a blockchain analytics firm, Turkey ranks fourth globally in cryptocurrency market activity, with an estimated trading volume of $170 billion between July 2022 and June 2023, surpassing countries like Russia, Canada and Germany. Since 2021, Turkish regulations have prohibited the use of cryptocurrencies for payments, reflecting a cautious approach towards the integration of digital assets into the financial system.   

The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) are charting new regulatory territory with the release of a comprehensive consultation paper outlining their proposal to accept and regulate fiat-referenced stablecoins (FRS) within the Chinese autonomous territory.Photo by Ben Cheung on PexelsConsultation processThe proposal has been published to the FSTB website in the form of a consultation paper titled “Legislative Proposal to Implement the Regulatory Regime for Stablecoin Issuers in Hong Kong.” Separately, the HKMA has published a press release on the topic. This development seeks to establish a regulatory framework for stablecoin issuers and address associated risks. The consultation period is scheduled to conclude on Feb. 29 of next year. At the heart of this legislative proposal is the requirement for companies actively marketing the issuance of FRS to the public of Hong Kong to obtain a specific local license from the HKMA. The proposed criteria for obtaining this license are robust and include key elements such as maintaining reserves “at least equal to the par value” of all circulating stablecoins. This measure ensures that stablecoins remain fully backed, contributing to their stability and reliability. The legislation also places a strong emphasis on the segregation and secure safekeeping of reserve assets, enhancing the protection of users’ funds and preventing misuse. Furthermore, issuers will be mandated to provide transparent disclosure and regular reporting, fostering accountability and transparency within the stablecoin ecosystem. It is noteworthy that the proposed regulations explicitly exclude algorithmic stablecoins from obtaining an HKMA license, underlining a preference for stablecoins with solid reserve backing. No doubt the spectacular collapse of the UST algorithmic stablecoin in 2022 has informed the Hong Kong regulator’s decision to exclude consideration of algorithmic stablecoins in this instance. Need to establish Hong Kong presenceTo underscore their commitment to regulatory compliance, stablecoin issuers seeking an HKMA license will also be required to establish a registered office in Hong Kong. This office must have a chief executive, senior management team and key personnel in place, aligning with Hong Kong’s efforts to ensure that all activities related to stablecoin issuance are conducted responsibly. The proposed licensing regime for FRS aligns with Hong Kong’s broader strategy to foster the growth of the Web3 ecosystem within the region. Christopher Hui, Secretary for Financial Services and the Treasury, highlighted the significance of this move, stating: “With the implementation of the licensing regime for VA trading platforms from June this year, the legislative proposal to regulate FRS is another important measure facilitating Web3 ecosystem development in Hong Kong.” Market competitionBack in February, the HKMA signaled its intent to regulate stablecoins when it issued a discussion paper considering various regulatory approaches. Competition is on an upward trajectory relative to stablecoin issuance and use. In June, Hong Kong-based qualified custodian First Digital Trust announced that it was gearing up to launch "First Digital USD," a U.S. dollar-backed stablecoin regulated in Asia rather than the United States. Leading stablecoin issuer Circle has been active in furthering its product offering in Asia during 2023. It successfully attained licensing approval in Singapore while in Japan, it joined forces with SBI Holdings in an effort to propel further growth of its USDC stablecoin within the Japanese market.

In the aftermath of a substantial security breach in November that resulted in a confirmed loss of over $48 million, Kyber Network, the multi-chain decentralized exchange (DEX) aggregator, has taken decisive steps to restructure its operations.Photo by kate.sade on UnsplashWorking towards recoveryCEO and co-founder Victor Tran posted a lengthy message on the X social media platform on Christmas Eve to announce a 50% reduction in the firm’s workforce. The move marks a pivotal moment in the company’s efforts to recover and rebuild. As part of its strategy to ensure sustainability, Kyber temporarily suspended its liquidity protocol initiatives and KyberAI. Despite these challenging measures, the core aggregator and limit order functions remain fully operational. Tran emphasized the company’s commitment to persist and evolve, highlighting its determination to navigate through recent adversities. Despite these challenging measures, the core aggregator and limit order functions remain fully operational. Tran emphasized the company’s commitment to persist and evolve, highlighting its determination to navigate through recent adversities. Zap API additionIn an effort to enhance its services, Kyber Network disclosed plans to introduce the Zap API. This new offering aims to provide decentralized applications, crypto wallets and other DeFi projects with a seamless means to connect their users to liquidity protocols. Tran also revealed that in an effort to support its workforce during the transition, the firm has established a “voluntary database” to assist departing employees in finding new career opportunities. This initiative seeks to connect these individuals with peer projects in the industry. Exploit fall-outKyber Network took to social media on Nov. 22 to advise its KyberSwap Elastic user base of a security incident. With that notification, it advised users to withdraw their funds immediately. Over the next few days, it became clear that $48 million had been exploited on the platform by a hacker. In the immediate aftermath of the incident, the hacker posted a message on the blockchain, stating: “Negotiations will start in a few hours when I am fully rested.” He/she progressed to issuing unusual demands, including gaining complete operational control of the company and temporary ownership of the KyberDAO governance mechanism. The nature of these demands sets this particular exploit apart from others. The Kyber team, however, chose to reject these demands. It chose to respond with a blockchain message of its own, outlining that it was cooperating with law enforcement in an effort to track the hacker. The company, which operates from offices in Hanoi, Ho Chi Minh City and Singapore, also offered the hacker a carrot of a 10% bounty if the hacker agreed to return 90% of users’ funds. Instead, the firm pledged to compensate affected users through the KyberSwap Elastic Exploit Treasury Grant Program. On Dec. 20, the firm provided further details on that grant program, outlining how affected users would be refunded. Furthermore, Kyber Network is actively collaborating with authorities to identify the hacker and recover the stolen funds.Earlier this month, blockchain security firm CertiK issued an alert on social media, outlining that the hacker had moved BNB tokens to the value of $338,000 into decentralized crypto tumbler Tornado Cash.