Late Korean artist Lee Jung-seob’s ‘Bull’ NFT on auction at OpenSea

OKX Middle East Fintech FZE, the Dubai-based subsidiary of cryptocurrency exchange OKX, announced on Tuesday that the company has successfully obtained a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA), signaling its entry into the Middle East market.Photo by David Rodrigo on UnsplashNon-operational licenseThis newly acquired license positions OKX Middle East to offer spot services and spot pairs to institutional and qualified retail customers in the region. However, it should be noted that the operational aspect of the license is pending. The company stated that it will remain non-operational until all remaining conditions and select localization requirements are fully satisfied, a process anticipated to conclude in the coming weeks. Once operational, OKX Middle East will have the green light to provide regulated VASP services, facilitate AED deposits and withdrawals and introduce spot trading pairs. The move, outlined in a blog post published by the company, comes months after the subsidiary received a preparatory license from VARA, underlining its commitment to complying with regulatory standards and expanding in the Middle East. Rifad Mahasneh, the general manager for the MENA Region at OKX, expressed optimism about the region's potential, stating: "The MENA region holds immense potential to become a hub of excellence for Web3 and virtual assets. We eagerly anticipate the chance to further enhance the already flourishing ecosystem throughout the region." Global hubThis strategic move aligns with the United Arab Emirates' (UAE) goal to establish itself as a global hub for the cryptocurrency industry. VARA, formed in March 2022, was tasked with regulating the emerging virtual asset sector in Dubai. The regulatory framework gained momentum when Sheikh Mohammed bin Rashid Al Maktoum, Dubai's prime minister and ruler, approved a new virtual assets law in March 2022, providing a legal foundation for the crypto industry in the city. Dubai's proactive stance towards regulating the cryptocurrency industry has attracted several major players, including Crypto.com, Ripple, Binance and Bybit, all securing crypto licenses from Dubai's regulator. OKX Middle East joins the likes of TOKO FZE and Trek Labs Ltd FZE in obtaining a license for exchange services. Tim Byun, the Global Head of Government Relations at OKX, emphasized the significance of this license in the company's journey towards a trustless system. "This license was a crucial step for OKX as we move from a trust-based system to one that is trustless and empowers users to take control of their financial future," he stated. Byun expressed excitement about contributing to the development of Dubai's crypto and Web3 ecosystem, highlighting the importance of the market. It's noteworthy that OKX, already regulated in the Bahamas, currently restricts customers from the United States due to regulatory issues. The expansion into the Middle East represents a strategic move for OKX to tap into the growing crypto market in the region and aligns with the broader trend of cryptocurrency exchanges expanding their global footprint. 

Phemex, a Singapore-headquartered crypto derivatives trading platform, has halted withdrawals following a multi-million dollar hack.Photo by GuerrillaBuzz on UnsplashHot wallet compromisedIn a message to platform users published to social media, the project stated: “To ensure security, withdrawals have been temporarily suspended while we conduct an emergency inspection and strengthen wallet services. We sincerely apologize for the inconvenience. Withdrawals will be restored soon.” In further commentary, the project apologized for the disruption, assuring service users that its mission remains to provide a trusted trading environment, while outlining that it is working on putting together a compensation plan. It added that “Our ongoing business operations are fine,” and that “trading services continue as usual.” The digital assets were removed from the platform over multiple blockchains including Polygon, Arbitrum, the Base network and BNB. Blockchain analytics firm Lookonchain itemized some of the assets that are believed to have been stolen. They include 3.48 million USDC stablecoin, 3.42 million USDT stablecoin, 841 ETH valued at $2.7 million, 110,701 LINK valued at $2.69 million, 142 billion PEPE tokens valued at $2.12 million, 1.19 million FET tokens valued at $1.45 million and 29,509 AVAX tokens valued at $1.04 million. Initial reports put the loss at $31 million. However, Web3 security firm Cyvers later claimed that $37  million covers the full extent of the loss. Following deeper analysis, it found that both Bitcoin and TRON blockchains had also been impacted, resulting in the overall loss being increased by a further $6 million. Cold wallet assets are safeThe company’s CEO Federico Variola, published a post on X advising service users that all of the assets held within the company’s cold wallets remain safe. He included a link to the Phemex proof of reserves, encouraging customers to check it. In a follow-up post, he wrote: “We are currently carefully testing our system to reprise withdrawals as soon as possible. Due to the sophistication of the threat actor we cannot rush this stage. The estimated timeline to reprise full operations is within 24h, thank you for your support.” The XNET Foundation, a non-profit entity that develops decentralized wireless networks, said that it is actively working with the Phemex team on the production of an exploit report following the incident. It added that “It has been confirmed that tokens sent to the exchange for a launchpad pool were compromised as part of this exploit.” Ongoing problemCrypto hacking remains a major concern within the digital assets sector. Blockchain security firm PackShield reported recently that $1.3 billion had been laundered from crypto hacks in 2024. That statistic demonstrates that the problem is worsening as it accounts for a $342 million or 280% increase when compared with 2023. In December a Chainalysis report found that 61% of the hacking losses suffered in 2024 implicated the involvement of North Korean hackers. It estimated crypto hacking losses of $2.2 billion for 2024, based on losses associated with 303 hacking incidents.

Shanghai’s Blockchain Development Plan Paves the Way for Web3 InnovationShanghai has set its sights on a global leadership role in blockchain technology by 2025. This commitment comes following the recent unveiling of an action plan by the Shanghai municipal government, designed to accelerate the city’s blockchain technical development.The plan, published on Wednesday, places emphasis on several critical aspects of the blockchain ecosystem, reaffirming Shanghai’s dedication to advancing Web3 technologies.Photo by Vin Jack on UnsplashTargeting key areas in blockchainUnder this comprehensive plan, Shanghai aims to achieve significant breakthroughs in multiple key areas within the blockchain realm. These include enhancing blockchain system security, advancing cryptographic algorithms, developing specialized blockchain processors, refining smart contract capabilities, achieving cross-chain interoperability, optimizing storage solutions, enhancing privacy computing, and establishing robust regulatory frameworks.These advancements will serve as pillars supporting the city’s digital transformation across various sectors, such as government affairs, cross-border trade, supply chain management, finance, the metaverse, and data element circulation.Human capital development stands as a central pillar of Shanghai’s blockchain strategy. To ensure a well-rounded and skilled workforce in the blockchain industry, the plan encourages research institutes and companies to leverage China’s foreign talent recognition standards to attract blockchain professionals.Furthermore, the city aims to guide educational institutions and businesses in nurturing young talents within the blockchain sector. Interdisciplinary and cross-industry platforms will be created to facilitate talent exchange and provide opportunities for growth and leadership.Zeroing in on ZK proofsOne notable objective within the plan is the advancement of zero-knowledge proofs, a cryptographic technique enabling parties to validate the authenticity of statements without disclosing specific information. Shanghai is committed to improving the efficiency and usability of zero-knowledge proof protocols, with a clear target of doubling efficiency by 2025.Major Chinese tech giants, including Alibaba and Tencent, have been actively developing their consortium blockchains while contributing significantly to the country’s leadership in blockchain innovation. Additionally, Beijing released a white paper in May with a strong emphasis on fostering growth and innovation in the Web3 industry. This positions the city as a global hub for digital economic advancements.Building upon 3-year action planShanghai’s determination to excel in blockchain development is not a recent occurrence. In June, the city unveiled a comprehensive document outlining its ambitious plans to enhance blockchain infrastructure by 2025. It also explored potential collaborations with international cities like Hong Kong and Singapore to test cross-chain applications. Despite China’s strict measures against cryptocurrency transactions in September 2021, the country remains optimistic about the potential of domestic blockchain technology.Shanghai’s ambitious blockchain development plan underscores China’s determination to lead in the blockchain space and reinforces its commitment to technological innovation and digital transformation. Leveraging its strengths in research, talent cultivation, and strategic partnerships, the city “on the sea” is positioning itself to make substantial contributions to the evolving landscape of Web3 technologies. By 2025, it aims to emerge as a global leader in blockchain innovation, setting a precedent for other cities worldwide.