Bitmain Fined by Chinese Authorities for Tax Irregularities

SK C&C to provide ChainZ Security Token service for Hana SecuritiesSK C&C, a comprehensive digital solutions provider and the affiliate of South Korean conglomerate SK Group, announced Tuesday (local time) that it will provide the blockchain-based ChainZ Security Token service to Hana Securities for the securities firm’s construction of a security token system.Security tokens enable the conversion of assets such as real estate, art and carbon credits into digital tokens. These digital representations open up opportunities for retail investors to make fractional investments in assets that were previously beyond their reach due to high minimum investment requirements.Hana Securities’ involvement in security tokens emerged when its parent company, Hana Financial Group, joined a consortium called the Next Finance Initiative (NFI) in June to expand the security token ecosystem. In this collaborative effort, Hana Securities is set to develop infrastructure that will enable the establishment of extensive security token services. This infrastructure will support functions such as the issuance, distribution and procurement of security tokens.Photo by Shubham Dhage on UnsplashSecurity tokens on EthereumThe ChainZ platform allows the creation, issuance and trading of tokenized assets on the Ethereum network by simply calling an application programming interface (API). The company explained that being compatible with several Ethereum standards, including ERC-20, ChainZ enables users to create diverse token-related services with just a few clicks.SK C&C will leverage the ChainZ platform, which supports distributed ledger services, to manage token offerings and allocations. Additionally, the company will offer security token-related services, which will include processing investor orders and facilitating the buying and selling of tokens.Choi Cheol, Head of SK C&C’s Web3 and Convergence Group, said that the security token system of Hana Securities will lay a foundation for securities firms to adopt security token services and engage in business collaborations with each other. According to Choi, SK C&C is committed to providing secure trading services for security tokens, catering not only to securities companies but also to a broader range of enterprises and general investors. The tech company is also planning to take an active role in NFI and other consortiums with securities firms as a part of its strategy to enhance these efforts further.

Kronos Research experiences significant cybersecurity breachKronos Research, a Taipei-based crypto trading, market making and venture capital firm, has found itself in the crosshairs of a cyber attack.Photo by FLY:D on Unsplash$25.6 million lossHackers gained unauthorized access to the company’s API keys, resulting in losses exceeding $25.6 million spread across various cryptocurrencies, prompting a concern within the crypto community.The breach was detailed by the company in a social media post on the X platform on Saturday. That post read:“In the interest of transparency Around 4 hours ago, we experienced unauthorized access of some of our API keys. We paused all trading while we conduct an investigation. Potential losses are not a significant portion of our equity and we aim to resume trading as soon as possible.”On-chain sleuthingInvestigations by crypto community members have followed, led by blockchain researcher ZachXBT. ZachXBT is a well-known anonymous persona in the crypto space, having earned a reputation for uncovering hacks, scams and unethical practices within the crypto sector.In this instance, ZachXBT uncovered a trail of transactions originating from a Kronos Research account. The meticulous execution of the cyber attack was evident in six transactions involving 2,780 ETH, 2,540 ETH (repeated twice), 2,636 ETH, 4.93 ETH and 2,507.52 ETH, all directed to addresses controlled by the hacker.Kronos Research has followed up with a tweet thread on X, acknowledging the gravity of the situation and confirming losses of approximately $25.65 million in crypto assets. Despite the alarming figures, the company sought to reassure stakeholders by emphasizing that the losses represent a relatively small fraction of its total equity. In a commendable display of accountability, Kronos Research pledged to absorb all losses internally, shielding its partners from the financial ramifications of the breach.The Taiwanese firm posted:“Our team has been working round the clock to minimize the impact and resume trading operations, following a hacking incident that involved unauthorized access to our API Keys.”Implications for Woo XThe operational repercussions were swift and impactful, with Kronos Research opting for a temporary suspension of all trading operations. This decision rippled through to Woo X, the affiliated Taipei-based exchange and liquidity provider created by Kronos, which temporarily blocked specific asset combinations due to liquidity concerns. Importantly, Woo X assured users of the security of their funds and later announced the resumption of spot and perpetual trading.Looking forward, Kronos Research outlined its intention to resume trading operations in the coming days, contingent on favorable conditions.The cyber attack on Kronos Research occurred against the backdrop of heightened cybersecurity concerns within the crypto space. According to blockchain security firm Certik, approximately $173 million was lost to crypto attacks in November alone. The Kronos Research breach follows on the heels of Poloniex’s $131 million hack, highlighting the persistent challenges faced by crypto platforms in securing user assets.

Nomura’s Crypto Subsidiary Secures Dubai VARA LicenseLaser Digital Middle East FZE, the digital asset subsidiary of Japanese global financial services group Nomura, has successfully obtained an operating license from Dubai’s Virtual Asset Regulatory Authority (VARA).This significant development, announced via a statement published to Laser Digital’s website on Tuesday, comes as part of Nomura’s strategic efforts to make a strong presence in the digital asset space.Photo by Paul MARSAN on UnsplashOpportunity to expand servicesThe newly acquired Virtual Asset Service Provider (VASP) license empowers Laser Digital to offer broker-dealer services and provide virtual asset management and investment solutions within the emirate. Additionally, the license will enable the company to carry out trading and asset management operations in the near future. This could potentially include the provision of over-the-counter (OTC) services, together with a diverse range of digital asset investment products.Jez Mohideen, the CEO of Laser Digital, expressed his confidence in VARA’s meticulous and collaborative process, which assures institutional investors looking to get involved in this emerging asset class. “We are very grateful to VARA for approving our Operating License. VARA’s thorough and consultative process provides institutional investors with the assurance they require to engage in this asset class. With the license now in place, we are looking forward to Laser’s growth over the coming years,” he stated.Established in September 2022 under the guidance of Nomura, Laser Digital was the brainchild of Steven Ashley, the former head of Nomura’s wholesale division, alongside Mohideen, who served as the firm’s former Chief Digital Officer and Co-Head of Global Markets for Europe, Middle East, and Africa (MENA). The company is headquartered in Switzerland, with sub-offices located in Dubai and London.Dubai’s rapidly growing crypto ecosystem has garnered global attention, especially after the establishment of its own virtual asset rules and the formation of VARA in March 2022. In February, the regulatory body issued the “Full Market Product Regulations,” comprising four compulsory rulebooks and activity-specific guidelines that delineate the framework for Virtual Asset Service Providers (VASPs).Following in Binance’s footstepsLaser Digital’s recent achievement coincides with Binance’s continuous efforts to solidify its presence in the United Arab Emirates. Its license award comes hot on the heels of Binance having achieved the same milestone. On Monday, Binance’s Dubai subsidiary, Binance FZE, received an operational Minimum Viable Product (MVP) from VARA, granting it permission to operate cryptocurrency exchange and virtual asset broker-dealer services locally.Apart from Binance, only two other entities, digital asset custodians Komainu MEA and Hex Trust MENA FZE, currently hold operational MVP permits in the region. Notably, crypto exchange BitOasis also secured a conditional license but it has faced a suspension from VARA for non-compliance with mandated conditions.Laser Digital’s successful licensing and entry into Dubai’s crypto landscape further enrich the diversity of players in the region’s digital asset market. The involvement of reputable financial institutions like Nomura contributes to the establishment of a robust and well-regulated ecosystem in the United Arab Emirates. The license paves the way for Laser Digital to serve institutional investors and individual clients alike, offering innovative digital asset solutions while complying with the region’s regulatory standards.