Seoul Prosecutors to Establish Dedicated Division to Combat Crypto Crimes

A United Nations (UN) report published on Monday pointed fingers at USDT for its alleged role in money laundering and scams in Southeast Asia, prompting the stablecoin’s issuer, Tether, to respond.Photo by DrawKit Illustrations on UnsplashFighting backThe stablecoin issuer finds itself under the spotlight once again, facing intense scrutiny over its association with illicit activities, according to the UN report. Responding by way of a blog post, Tether expressed disappointment and pushed back against the accusations. The firm asserted that the report disproportionately focuses on USDT's alleged connection to illicit activities, neglecting to acknowledge the positive impact it has had on developing economies in emerging markets. Collaborating with law enforcementTether defended its position by highlighting its collaborative efforts with global law enforcement agencies, such as the Department of Justice (DOJ), the Federal Bureau of Investigation (FBI) and the recently onboarded United States Secret Service (USSS). The company expressed disappointment with the UN's assessment and stressed that its monitoring measures surpass those of traditional banking systems, historically implicated in money laundering cases. Having frozen over $300 million in recent months to combat the criminal use of crypto assets, Tether emphasized the traceability of its tokens and its established track record of collaboration with law enforcement. In its blog post, Tether urged the UN to shift the conversation from concentrating solely on risks to discussing how centralized stablecoins like USDT could contribute to the fight against financial crimes. The UN Office for Drugs and Crime (UNODC) division responsible for Southeast Asia and the Pacific released the report, specifically highlighting USDT as a significant instrument for money laundering in the region, notably on the Tron blockchain. Tether's response came soon after the release of the UNODC report, where the company emphasized the need for a broader discussion with the UN on addressing financial crimes within blockchain platforms. Tether acknowledged that there are still numerous opportunities to combat financial crimes on blockchain platforms and encouraged the UN to engage with the industry to comprehend and implement contemporary strategies. The company expressed a willingness to collaborate on initiatives aimed at enhancing the understanding of blockchain technology and its potential in fighting financial crime. A perennial controversyTether has been the subject of a perennial controversy inside and outside the crypto space over the years. Its critics have long accused the company of not having the asset backing to reflect the U.S. dollar stablecoins it issues. The issue has been compounded by Tether’s inability to produce fully fledged audits as opposed to attestation reports to verify its holdings. Speaking on the edges of the World Economic Forum’s annual meeting in Davos, Switzerland, on Tuesday, Howard Lutnick, CEO of leading global financial services firm Cantor Fitzgerald spoke positively about Tether. He said that his firm has held and managed large quantities of Tether’s assets. Lutnick confirmed that “they have the money they say they have.” Off the back of Lutnick’s comments, Nic Carter, partner at venture capital and private equity firm Castle Island Ventures, outlined that Tether’s critics have been proven wrong. Carter wrote: “Tether truthers spent 6 years trying to convince everyone tether would collapse and drag down the industry. it didn't. . . . Not sure anyone has ever been more wrong about anything.”

China Mobile Establishes Metaverse Industry AllianceChina Mobile, one of the leading telecommunications companies in China, has taken a significant step forward in the development of the metaverse by announcing the establishment of an industry alliance during the 2023 Mobile World Congress in Shanghai.News of the development broke via a state-backed media outlet, the Shanghai Securities Journal, in its reporting from the event on Wednesday.Photo by julien Tromeur on UnsplashA trillion yuan marketAt the forefront of this endeavor is Zhao Dachun, Deputy General Manager of China Mobile. Dachun emphasized the metaverse’s potential as a trillion-yuan level market. Recognizing its significance, China Mobile has unveiled the first batch of 24 members of the metaverse industry alliance. Among them are renowned companies such as iFlytek, a leading AI company, HTC, a prominent manufacturer of VR goggles, and MGTV, a popular video streaming platform.The establishment of the alliance serves multiple purposes. It provides a platform for industry partners to engage in discussions and collaboratively shape the future of the metaverse industry. This cooperative effort will contribute to the development of industry standards, facilitating a shared vision for the metaverse ecosystem.More effective metaverse collaborationAdditionally, the alliance aims to foster resource sharing, encouraging deeper integration and collaboration among its members. By adopting a win-win mindset, the alliance members seek to collectively benefit from the new opportunities that arise within the digital economy.Further supporting the metaverse vision, Migu, the digital content unit of China Mobile, has taken significant steps by establishing its metaverse headquarters in Xiamen, a city located in the Fujian province of China.Regional government partnershipIn a promising partnership, Migu has entered into a strategic cooperation agreement with the Xiamen government to spearhead the development of a metaverse within the city. The metaverse, a digital world created through advanced technologies such as virtual reality and augmented reality, holds great potential for transforming Xiamen into a “high-quality, high-value, modern, and international” city that thrives on digital intelligence.Migu’s plans extend beyond theoretical concepts, as they outline concrete steps to realize the metaverse vision. Key application scenarios, such as the development of a metaverse version of Gulangyu Island, a renowned tourist destination celebrated for its natural beauty and historical significance, will be a primary focus. By bringing this iconic location to the metaverse, visitors will have the opportunity to experience its charm in a new digital dimension.Moreover, Migu is dedicated to accelerating research on digital governance within the metaverse. With the metaverse expected to have a profound impact on society, understanding how to effectively manage and regulate this emerging digital landscape becomes paramount. Migu aims to lead the way in establishing best practices and frameworks for responsible and inclusive digital governance.Through collaborative efforts, the promotion of industry standards, and strategic investments in key application scenarios, China Mobile is likely to play an important role in unlocking the vast potential of the metaverse. In turn, the initiative is likely to fuel the growth and transformation of the digital economy.

Leading global crypto exchange platform OKX has officially launched OKX TR, a specialized crypto exchange tailored to meet the needs of users in Turkey. This unveiling, announced on Feb. 27, marks a significant stride in the company’s efforts to offer Turkish users greater access to cryptocurrency trading and decentralized finance (DeFi).Photo by Engin Yapici on UnsplashOKX Wallet integrationOKX TR has integrated OKX's Web3 wallet, providing Turkish users with access to a wide array of features. The wallet offers a user-friendly portal for trading non-fungible tokens (NFTs), utilizing decentralized applications (dApps). Noteworthy features of the OKX Wallet include multi-party computation (MPC) technology and account abstraction (AA), enhancing accessibility for users with varying levels of technical expertise.OKX TR introduces localized features designed to cater specifically to Turkish users, including direct deposits and withdrawals in Turkish Lira, facilitated through strategic partnerships with banking institutions such as Fibabanka, VakıfBank, Ziraat Bankası, İş Bankası, Şekerbank and Türkiye Finans. The platform offers a range of major cryptocurrency pairs for trading, including USDT/TRY, BTC/TRY and ETH/TRY.  Moreover, OKX TR prioritizes user experience by providing round-the-clock customer support in both Turkish and English, attempting to provide prompt assistance and comprehensive guidance whenever needed. Crypto adoption backdropThe platform’s arrival should contribute further towards the burgeoning crypto ecosystem in Turkey, a market boasting a close to 50% adoption rate for cryptocurrencies. A report by OKX rival platform KuCoin back in August of last year found that there had been a significant increase in crypto users in Turkey over the course of the previous 18 months.  It’s believed that crypto adoption in Turkey is being driven partly by its role as a financial lifeline amid economic challenges. The country’s sovereign currency, the lira, has suffered from runaway inflation in recent years. On social media OKX Chief Marketing Officer (CMO) Haider Rafique wrote that the new service offers “lightning fast signup and funding,” alongside the “lowest fees in the market.” Mehmet Çamır, Chairman of OKX TR, outlined that the company had first announced expansion into Turkey in May 2023. Çamır set out the company’s intentions within the Turkish market, stating:"The launch of OKX TR represents more than just an expansion; it signifies our pledge to equip users with a transparent, compliant and user-friendly gateway to the world of blockchain. . . . We can unlock the vast potential of the Turkish crypto community and pave the way towards a future where finance is more inclusive and transparent.” Turkey is in the process of introducing a raft of crypto regulations, primarily with the intention of enabling it to be removed from the Financial Action Task Force’s (FATF) “grey list.” In December, Turkish President Recep Tayyip Erdogan appointed blockchain and cryptocurrency expert Fatma Ozkul to the Turkish central bank’s rate-setting committee.Those moves demonstrate some positive progress from the point of Erdogan’s statement in 2021 when he declared “a war on crypto.”