US DOJ Charges Two Russians With Mt. Gox Hack

Paxos gets green light from Singapore regulator for USD stablecoinPaxos, a regulated crypto infrastructure company, has announced that it has received in-principle approval from the Monetary Authority of Singapore (MAS) for its new subsidiary, Paxos Digital Singapore Pte. Ltd.The company outlined in a press release that it published on Thursday that the new entity will be able to offer digital payment token services and issue a USD-backed stablecoin in compliance with Singapore’s upcoming stablecoin laws. Stablecoins are digital tokens that are pegged to the value of fiat currencies or other assets and are designed to minimize price volatility.Photo by Carlos Alberto Gómez Iñiguez on UnsplashRegulatory framework for stablecoinsThe MAS moved to finalize its regulation of stablecoins within the city-state in August. That regulation insists on stablecoin issuers holding reserve backing for a stablecoin in low risk, highly liquid assets. The regulator also puts an onus on the issuer to provide appropriate disclosures including audit results and to process redemption requests within five business days.According to Paxos, there is a strong global demand for the U.S. dollar, but it remains challenging for consumers outside the U.S. to access dollars securely, reliably and under regulatory protections. The in-principle approval from the MAS will enable Paxos to bring its regulated platform to more users around the world.The recently finalized stablecoin regulatory framework will apply to non-bank issued tokens that are linked to the Singapore dollar or G10 currencies, such as the euro, British pound and U.S. dollar. Additionally, it applies to stablecoins whose circulation exceeds five million Singapore dollars ($3.7 million). The framework aims to ensure that stablecoins are subject to appropriate governance, risk management, disclosure and consumer protection standards.Partnering with enterprise clientsPaxos said that once it receives full approval from the MAS, it will be able to partner with enterprise clients to issue the USD stablecoin in Singapore. Paxos already has experience in issuing stablecoins, such as the Paxos Standard (PAX) and the PayPal USD Coin (PYUSD), which are both backed by the U.S. dollar and cash equivalents. Paxos also issues monthly attestations and reserve reports to verify its compliance and transparency.Responding to this latest development, Paxos Head of Strategy, Walter Hessert, stated:“Global demand for the US dollar has never been stronger, yet it remains difficult for consumers outside the US to get dollars safely, reliably and under regulatory protections. This in-principle approval from the MAS will allow Paxos to bring its regulated platform to more users around the world. Because Paxos upholds the highest standards of compliance and oversight, global enterprises partner with us to power stablecoin solutions that drive their businesses and respond to their customers’ needs.”Paxos previously issued the Binance USD (BUSD) stablecoin, but was ordered by the New York Department of Financial Services (NYDFS) to stop issuing the token after the agency declared the stablecoin an unregistered security.The partnership between Paxos and the MAS is a significant step in bridging the gap between traditional finance and the emerging crypto industry. As more institutional clients seek exposure to digital assets, it becomes essential to provide them with secure and reliable solutions that meet their specific requirements.

Data Labs leverages blockchain technology for data-based travel itinerary appFounded in 2021, Data Labs is changing the landscape of travel by leveraging blockchain and NFT technology to offer a wallet service called “MyInfo Market,” where users can store and control their own data, according to an article published by Korean news outlet Data News.In particular, MyInfo Market can be used in tandem with the company’s travel app Yeohaengdaelo, which utilizes users’ travel-related data to recommend travel destinations and organize and share itineraries. Users can directly manage their personal preference information on MyInfo Market and selectively submit the information necessary to receive rewards. “It’s not just a travel itinerary app, it’s also a way for individuals to earn money using their own data,” said Kim Jong-hyun, CEO of Data Labs.Photo by Eva Darron on UnsplashSeamless travel experienceYeohaengdaelo integrates Naver Blog, Instagram and KakaoTalk services into one app, aimed at relieving the stress that comes with travel preparation, Kim explained. It utilizes data such as the region a user is traveling to, their travel companions and information on facilities, as well as their travel preferences and patterns. The app also provides real-life services such as discounts at designated restaurants near the travel site.Building trust and valueThe company explained that it intends to maintain a cyclical data ecosystem where users can willingly provide their data to get travel recommendations and receive suitable compensation for that information in return. Because the ecosystem is blockchain-based, it provides a safe method of personal information management.Since the launch of Yeohaengdaelo in July, Data Labs has been developing a business model that can secure a solid user base and revenue for affiliated businesses. It expects to reach 55,000 members next year and 2.14 million members by 2028. The company also expects to use the business model as a basis for generating KRW 500 million (approximately $386,000) in revenue next year by linking marketing channels, issuing discount coupons for kids’ amenities and providing data royalties.In the future, Data Labs plans to expand Yeohaengdaelo to include not only travel preparation services but also information on various discounts that users can receive based on the location they are in. Efforts like this will be necessary to provide unique user experiences, the company said.Data Labs is also currently receiving support through Y&Archer’s tourism acceleration program. Y&Archer is a Korean investment and acceleration firm known for its AC Program, which discovers, accelerates and supports startups through various projects.“In the past, companies profited from personal data, but Yeohaengdaelo allows individuals to monetize their data. Our goal is to create a world where individuals can regain the rights (to their own data) and be at the center of Web3 content,” Kim said.

Dubai Regulator Hits OPNX With $2.7M PenaltyCrypto bankruptcy claims trading platform OPNX and its founders have been hit with a hefty fine, imposed by Dubai’s Virtual Assets Regulatory Authority (VARA). The penalty, amounting to AED 10 million ($2.7 million), was levied on the newly established exchange in accordance with a notice published by the regulator on Wednesday.Photo by Agnieszka Stankiewicz on UnsplashPayment outstandingVARA’s recent announcement highlighted that the fine had been imposed in May and remains outstanding. The regulatory body disclosed that individual fines of AED 200,000 ($54,451) each were imposed on Su Zhu and Kyle Davies, the controversial founders of failed Singapore-based crypto hedge fund, Three Arrows Capital (3AC). Additionally, fines were also imposed on two other co-founders of OPNX. The penalties were attributed to failures in adhering to regulations governing marketing, advertising, and promotions.OPNX, established earlier this year by Su Zhu and Kyle Davies in collaboration with Mark Lamb and Sudhu Arumugam, positioned itself as a trading platform for crypto claims following the collapse of their Three Arrows Capital (3AC) fund last summer. The duo has since made Dubai their primary operational base.Further action“In light of the company’s unpaid fine, VARA shall determine consequential actions warranted against OPNX, which may include further fines, penalties, and/or taking any actions necessary to recover payment and definitively remedy the behavior,” stated VARA in an official statement.Dubai is making a concerted effort to nurture the development of crypto-related business, implementing various initiatives in order to bring that about. However, as part of that strategy, Dubai’s regulatory landscape for cryptocurrencies has taken a more stringent turn this year, with the introduction of a new regulatory framework mandating that companies catering to retail investors must secure full licensing from VARA.Concerns arose in February when regulatory authorities discovered that OPNX was actively seeking customers for its platform and collecting personal data without proper authorization.Formal reprimandsIn April VARA issued an investor alert, outlining that OPNX was not a regulated entity although it was operating from Dubai. Shortly afterwards, formal reprimands followed for the two 3AC founders, alongside Mark Lamb, Sudhu Arumugam, and OPNX’s CEO Leslie Lamb.Leslie Lamb, in a previous interview with Bloomberg, emphasized that OPNX had not actively marketed itself toward Dubai or the broader UAE market. She stressed the company’s full cooperation with VARA’s ongoing investigation, asserting that no regulatory guidelines had been breached.“While Kyle and I contributed the initial ideas for OPNX, Leslie is very much the CEO, and we aren’t involved in day-to-day operations,” stated Su Zhu, clarifying their roles.Despite the regulatory setback, both Su Zhu and Kyle Davies continued to promote OPNX on the X platform (formerly known as Twitter).It emerged recently that the claims trading platform has been eyeing the acquisition of failed crypto lender Hodlnaut, which is currently undergoing court-supervised restructuring in Singapore. Zhu and Davies have come in for a lot of criticism within the crypto sector, having left a long list of unpaid creditors as a consequence of the failure of 3AC. The duo recently suggested that they would contribute profits from OPNX to 3AC creditors despite the fact that they have been uncooperative with the 3AC bankruptcy process.