Two Asian nations turn down spot bitcoin ETFs

Upbit Launches Campaign for Recovery of Mistakenly Transferred AssetsUpbit, the cryptocurrency exchange operated by Dunamu, announced on Tuesday (local time) that it is launching a campaign where users can get back the digital assets that they have transferred mistakenly as part of heightened efforts to protect investors and minimize their losses due to such errors.Photo by Luis Villasmil on UnsplashRole of secondary identifiersAmong the virtual assets that Upbit allows users to deposit, some require users to accurately input their unique identifiers — like a Destination Tag (D.tag) or Memo — in order to properly process a deposit. A D.tag or Memo is an additional address used to identify a transaction recipient beyond a wallet address, which is often required when trading altcoins like Ripple (XRP) and Monero (XMR). In the case of XRP, both the exchange address and the D.tag must be entered accurately for deposits to be processed properly.Enhancing investor convenienceHowever, misdirected transfers caused by incorrect or missing secondary deposit addresses occur quite frequently. Many users also remain unaware when their virtual assets have been mistakenly transferred.In response to this issue, Dunamu has organized its latest campaign to make it easier for Upbit users to recover the virtual assets that they mistakenly sent. A user can access the campaign page on the official Upbit website and search for the transaction ID (TXID) of the deposit where the secondary address was either not entered or entered incorrectly. If a matching deposit is found, they can click “Apply for Recovery” to submit a one-on-one inquiry.Previously, users were required to manually enter information such as the name and quantity of the cryptocurrency, as well as the TXID in the one-on-one inquiry. Now, this information is automatically filled in through the TXID search, boosting user convenience.In an effort to encourage campaign participation, Dunamu also said that it will waive all fees for the recovery of mistakenly transferred assets until the end of the year.As of July, the exchange has successfully processed over 99.5% of the total 45,474 recovery requests that it has received over the past five years by leveraging its industry-leading technical expertise.“Upbit will continue its efforts to protect user assets and provide convenient services,” Dunamu said.Global recognitionMeanwhile, Upbit has secured 9th place in the Kaiko Exchange Ranking for the third quarter of 2023, ranking first among Korean exchanges. Kaiko is a crypto market data company with offices in Paris, London, New York, and Singapore.The ranking evaluates exchanges based on the following criteria: governance (30%), security (20%), liquidity (15%), business (15%), technology (10%), and data quality (10%). Upbit earned a score of 76 points.Coming in first overall on the list was Coinbase with 90 points, directly followed by Bitstamp and Kraken with 86 and 82 points, respectively. Among Korean exchanges, Korbit ranked 15th worldwide with 72 points, followed by Bithumb in 17th with 72 points, then Coinone in 27th with 59 points.

Polymarket activity under scrutiny in Taiwan due to election contractsTaiwanese law enforcement is currently delving into the activities of online influencers and community members promoting Polymarket contracts related to the upcoming presidential election which is due to be held on Jan. 13.Polymarket is a New York-based Ethereum-centric prediction market. The platform runs on the Ethereum layer-2 scaling solution network Polygon. The project invites platform users to bet on the outcomes of a broad spectrum of events, ranging from politics to entertainment.Users deposit USDC stablecoin, choose an event to bet on and purchase “outcome shares” through USDC. The user has the ability to trade those shares anytime before the resolution of the contract.Photo by Ethan Lin on UnsplashPossible election law violationsThe Taiwanese investigation came to light in a report by Taiwan-based crypto publication BlockTempo, which was published last week. The investigation comes as concerns arose about potential violations of Taiwan’s Presidential and Vice Presidential Election and Recall Act, which explicitly prohibits gambling on election outcomes.Multiple influencers and crypto community members have reportedly been subpoenaed for their involvement in Polymarket contracts, allowing users to place bets on the January election. At present, the betting pool for the election holds over $300,000, with a market prediction favoring the Democratic Progressive Party’s Lai Ching-te, also known as William Lai, with a 78% chance of winning.However, the legality of such betting activities is in question under Article 88–1 of Taiwan’s election law. It stipulates that anyone gambling on the outcome of an election or recall in a public place or a place open to the public may face imprisonment, short-term detention or a fine of up to NT$100,000 ($3,196.85).Sherman Lin, an attorney at Taipei-based Lin & Partners, emphasized the seriousness with which law enforcement views gambling activities related to presidential elections in Taiwan. He explained that broad legal interpretations under the Presidential Election and Recall Act have led to investigations and convictions of gambling website operators targeting Taiwanese gamblers. Lin stated:“Law enforcement agencies in Taiwan are vigilant in investigating any gambling activities related to presidential elections.”“Broad legal interpretations have been applied to gambling crimes under the Presidential Election and Recall Act, leading to investigations and convictions of gambling website operators in Taiwan targeting Taiwanese gamblers,” he added.Prohibited in United StatesComparing the situation to the United States, where gambling on election outcomes is illegal in most states, Lin noted that enforcing such regulations often falls under the jurisdiction of the Commodity Futures Trading Commission (CFTC). Polymarket’s Terms of Use explicitly prohibit usage by U.S. persons.Despite potential legal consequences for gambling activities in Taiwan, including participation, promotion and platform hosting for betting pools like Polymarket, Lin pointed out that enforcing actions against overseas entities poses jurisdictional challenges. Taiwan’s legal reach is primarily limited to domestic actors, creating complexities in addressing decentralized platforms like Polymarket.Lin suggested that law enforcement may focus on online influencers who promoted the Polymarket contract, as seen in previous cases involving the collapse of the unlicensed crypto exchange JPEX in Hong Kong.Moreover, while there are legal precedents for pursuing centralized entities organizing election gambling, Lin highlighted that no established legal precedent in Taiwan currently exists for decentralized platforms organizing election betting.

Gemini Targets UAE Crypto LicenseGemini, the US-headquartered cryptocurrency exchange owned by the Winklevoss twins, has announced its intention to obtain a cryptocurrency service license in the United Arab Emirates (UAE). The move comes as the exchange seeks to navigate the perceived “hostility and lack of clarity” surrounding cryptocurrency regulations in the United States.In a blog post published on Wednesday, Gemini highlighted the growing interest in cryptocurrencies among UAE citizens and referred to positive interactions with UAE regulators as driving factors behind its pursuit of the license. The co-CEOs of Gemini, Cameron and Tyler Winklevoss, explained in an interview with The National that their decision was influenced by the challenges they faced with crypto regulation in the US. Gemini CEO Tyler Winklevoss expressed optimism about the regulatory environment in the UAE, stating:“We’ve been super encouraged with our conversations here with the regulators. There’s an effort to make the UAE a home and a hub for crypto and, most importantly, to enact thoughtful regulation that connects, that protects both consumers, but also a company’s ability to innovate.”Photo by Nextvoyage on PexelsAbu Dhabi or Dubai — or bothAs of now, the Winklevoss twins have not yet determined the specific location for Gemini’s operations in the UAE. They hinted that the exchange’s headquarters could be established in both Abu Dhabi and Dubai, reflecting the potential for growth and development in both cities.Gemini’s decision to pursue a crypto license in the UAE underscores the country’s growing importance in the cryptocurrency industry. With its efforts to create a favorable regulatory environment and attract crypto-related businesses, the UAE aims to position itself as a crypto hub while safeguarding the interests of both consumers and innovators.Discouraging US outlookAccording to Gemini’s Global State of Crypto Report, which provides insights into cryptocurrency adoption and usage, more than 35% of respondents surveyed in the UAE reported purchasing crypto. In contrast, only 20% of respondents in the United States said they had bought cryptocurrencies.The report also revealed that nearly 32% of non-crypto owners in the UAE expressed their intention to enter the market within the next year. Furthermore, 33% of UAE crypto holders indicated that they plan to use their digital assets for in-person purchases at physical retailers, a significantly higher percentage compared to the global average of 19%.Although still a US-headquartered business, Gemini has been turned off the US market more recently. The Winklevii twins have taken a similar stance to Coinbase’s Brian Armstrong and Ripple’s Brad Garlinghouse. Coinbase has expanded in Singapore, acquired digital asset licensing in Bermuda, and has the intention of establishing a presence in Abu Dhabi.Garlinghouse has matched Armstrong’s outspokenness in criticizing the regulatory approach to digital assets in the United States. Likewise, he has acted to place Ripple on an international footing, establishing a presence in Dubai. In April, Gemini announced the opening of an engineering center in India, together with plans to expand its base in Singapore.As Gemini proceeds with its application for the UAE crypto license, industry observers will be closely monitoring the development, anticipating the potential impact of this expansion on the exchange’s operations and the broader cryptocurrency landscape in the region.