Philippine Police Warns of Play-To-Earn Dangers

Safeheron, a Singapore-based provider of digital asset self-custody solutions for institutions, has released the world’s first open-sourced trusted execution environment (TEE) related to Intel Software Guard Extensions (SGX).  The Intel SGX is a hardware-based security technology integrated within some Intel processors. It enables application developers to run application code within a secure isolated environment, while preventing access to that code or modification of it by other applications or by the operating system running on that hardware.Photo by Shubham Dhage on UnsplashAddressing Web3 security & scalability challengesThe Intel SGX enables a TEE, creating a black box for computation. In a blog post published by Safeheron on May 6, the company claimed that its open-source framework “addresses fundamental security and scalability challenges within blockchain and Web3 ecosystems, offering broad potential for deployment across critical scenarios.” The company asserted that the enabling of off-chain TEEs as achieved by its framework, provides for robust blockchain layer-2 scaling, together with privacy-preserving computation. In this way, layer-1 blockchain load can be minimized while enhancing network throughput and verifiability. Safeheron further claimed that this all paves the way for the evolution of a trusted “second execution layer” for decentralized applications. Overcoming Intel SGX complexitySafeheron developed the TEE framework using C++, a high-level object-oriented programming language. The firm open-sourced the SGX framework due to the significant challenges that developing with Intel SGX poses, arising from its complexity and its engineering overhead. On X, the company claimed that the new framework reduces SGX TEE development complexity, enabling developers to build applications securely for blockchain, cloud security and privacy computing. The framework optimizes advanced cryptographic support, enhanced testing capabilities, high-level API design and secure and encrypted file input and output. Moving beyond closed and opaque systemsSafeheron added that it open-sourced the framework as it had seen concern expressed within the Web3 sector regarding the development of closed and opaque systems, with that concern elevated in relation to ongoing security failures related to Web3 platforms. Safeheron CEO Wade Wang told Cointelegraph that in open-sourcing the framework, the firm is “not threatened by competitors,” but that it is concerned about “slow innovation due to closed systems.” The Singaporean firm was established in 2021. It counts HashKey Capital, Bixin Ventures, Antalpha Ventures, M77 Ventures and Kryptos among its investors. Back in 2022, it raised $7 million in a pre-Series A funding round. At the time, the project’s mission was to make private keys, which individuals use to control and self-custody their digital assets, safer. In terms of products offered, the company markets its MPC Node Suite, a white-label solution that allows clients to build out multi-party computation (MPC) wallet-based applications. It also offers Keyless Wallets that facilitate the development of wallets that don’t require traditional keys.  In February crypto exchange platform BYDFi partnered with Safeheron, leveraging its MPC technology and TEE to build out a key management system.

India’s WazirX Partners with TaxNodes to Simplify TaxesIndia’s largest cryptocurrency exchange by trading volume, WazirX, has integrated with TaxNodes to enable platform users to calculate and file their crypto-taxes with greater ease.TaxNodes is a platform that provides users with the ability to calculate taxes on their cryptocurrency transactions. The start-up company has built a product for the retail crypto investor and trader that’s accessible on a global basis.Photo by Julian Yu on UnsplashEase of calculationThrough the partnership, TaxNodes will enable WazirXs expansive user base to calculate and file taxes on their crypto trades and crypto investments accurately. Furthermore, it will extend its service to provide updates on any developments in Indian taxation relative to the digital assets sector.Avinash Shekhar, Founder and CEO of TaxNodes, commented on the partnership: “We are looking forward to embarking on a journey with WazirX. We believe that our solutions will help WazirX’s customer base get clarity on the taxes levied on their investment. We think that our users will be able to leverage our plans to not only compute but also file their taxes, thereby, enabling us to simplify the taxation journey of crypto investors in the country.”From its perspective, Rajagopal Menon, Vice President at WazirX, said that the company has always prioritized compliance with regulations in the country to set an example of fair practice in the virtual digital asset industry. The partnership between WazirX and TaxNodes will be beneficial in enabling an ecosystem of regulatory abidance and mainstream adoption of crypto without the challenges of tax miscalculation or default.”High taxesIndia has chopped and changed its position on digital assets many times, and its tax treatment of cryptocurrencies has also undergone changes in tandem with that. Currently, Indian investors who trade digital assets, inclusive of NFTs, are under the obligation to declare their income if the assets are held as investments.Income tax return (ITR) forms for the 2022–2023 tax year have been amended to include a section dedicated to digital assets. A section called “Schedule — Virtual Digital Assets (VDA)” is now included. Income from the sale of virtual assets is currently taxed in India at a rate of 30%. One inequitable feature of the Indian crypto tax treatment is the fact that losses incurred from digital assets cannot be offset against other income.Additional taxes are to be applied in the form of tax deducted at source (TDS) of 1%, applicable on all sell transactions of digital assets and NFTs. That measure was first applied as of July 1, 2022. The world’s largest democracy has taken a very repressive stance in taxing digital assets, and added to that, non-compliance in the case of TDS can be sanctioned by way of a fine or jail time.With those high stakes, it’s appropriate that service providers like TaxNodes are collaborating with Indian crypto exchanges like WazirX. Crypto market participants can’t afford to miscalculate their taxes given the sanctions that could potentially be applied.

Circle CEO Sees Role for Yuan-Backed Stablecoins in Hong KongJeremy Allaire, the Co-Founder and CEO of Circle, the USDC stablecoin operator, expressed his acceptance of mainland China’s ban on cryptocurrencies. However, he remains optimistic about the development of Web3 technology in Hong Kong and the city’s monetary authority’s move towards regulating stablecoins.Photo by Mitchell Luo on UnsplashYuan internationalizationAllaire believes that Hong Kong must embrace digital assets to remain relevant in the global financial market. While he acknowledges that China is unlikely to open up its markets to cryptocurrencies, he sees potential for stablecoins to contribute to Beijing’s goal of yuan internationalization.During an interview with the South China Morning Post (SCMP), Allaire highlighted that major financial markets worldwide are embracing digital assets and that the biggest financial institutions are adopting them. He mentioned that there is Chinese government support for stablecoins, but he clarified that it doesn’t imply opening up crypto trading on the mainland. Allaire emphasized that stablecoins could be a more immediate solution to the Chinese government’s aim of internationalizing the yuan compared to the central bank digital currency (CBDC) e-CNY.Allaire cited the example of a stablecoin pegged to the offshore yuan (CNH) as a potential tool to facilitate the RMB’s use in global trade and commerce. He mentioned the existence of CNH Coin, a stablecoin team that also offers HKD Coin, pegged to the Hong Kong dollar.Virtual asset hubHong Kong is positioning itself as a global virtual asset hub by focusing on the regulation of stablecoins. The Hong Kong Monetary Authority (HKMA) has committed to implementing stablecoin regulations by 2024, recognizing the potential impact of such assets on financial markets. Additionally, the Securities and Futures Commission (SFC) is working on complementary regulations for stablecoins following the recent implementation of licensing rules for sellers of other cryptocurrencies.Circle’s USDC, the second-largest US dollar-backed stablecoin by market capitalization after Tether (USDT), is considered a “stored-value instrument” in the United States. Allaire expressed Circle’s encouragement regarding the HKMA’s plans and highlighted the positive motivation to expand their business in Hong Kong.While central banks worldwide have expressed concerns about stablecoins’ impact on financial stability, the HKMA has proposed that the value of reserve assets should match the outstanding stablecoins at all times. The HKMA has also been researching the possibility of a digital Hong Kong dollar and is part of a cross-border trial for the e-CNY using a blockchain known as the mBridge.CBDCs alongside stablecoinsRegarding the future role of stablecoins in a well-regulated environment alongside CBDCs, Allaire believes that CBDCs and private coins are complementary. He sees CBDCs as an upgrade to central banks’ systems and views the private sector’s work on innovation in distributed ledger technology as distinct and valuable.Allaire noted that Circle conducts significant business activity in Asia, particularly in Hong Kong, which is its largest non-US market, employing around 125 individuals.While mainland China maintains its ban on cryptocurrencies, Allaire remains optimistic about Hong Kong’s regulatory stance on stablecoins and believes they could contribute to the internationalization of the yuan. Allaire emphasized the importance of digital assets in the global financial market and expressed Circle’s support for Hong Kong’s initiatives.