Thailand’s SEC moves to block five exchanges to protect investors

Thailand’s capital markets supervisory agency, the Securities and Exchange Commission (SEC), is preparing to launch a trading system, built on distributed ledger technology (DLT), to enable securities firms to trade tokenized securities.Photo by allPhoto Bangkok on PexelsTokenized investments gaining tractionThat’s according to a report published on Feb. 3 by Bangkok-based English language newspaper, the Bangkok Post. Jomkwan Kongsakul, deputy secretary-general of Thailand’s SEC, said that tokenized investments are gaining traction. With that, the development will give the regulator experience in supervision of the latest digital-era markets. The move is also seen as an indication to securities firms of the acceptability of DLT-based tokenized trading from a regulatory perspective in Thailand. The regulator plans to sign off on permitting securities firms to trade digital tokens, bootstrapping digital token trading through accessing the large investor bases of these firms. Commenting on the initiative, Jomkwan Kongsakul stated: “The SEC is leveraging technology to enhance efficiency in the capital market by promoting an electronic securities ecosystem,” while “new regulations will be launched to facilitate the issuance of electronic securities and online purchases of debentures.” Debentures are unsecured debt instruments issued by companies to raise funds. Efficient primary & secondary market tradingThe proposed system will incorporate primary and secondary market trading of fully digitized bonds. Other features will include investor registration and multiple blockchain support with the inclusion of blockchain interoperability capabilities. It is as yet unclear which blockchains the platform will be built around. Speaking on that topic, the SEC executive stated: “In the future, there may be multiple chains for trade. Trading through DLT on all systems is connected by a shared ledger, which is expected to be completed soon.” In its preparations to launch the system, the Thai SEC has approved four digital token projects thus far. Two more projects are understood to be at the review stage. The focus is being placed on green tokens and investment-based projects. The regulator believes that through tokenization, greater efficiency and liquidity can be achieved. There’s a delay of between seven and 14 days before bonds, which have been bought on the primary market, can be traded on a secondary market. Tokenization can help to resolve this issue.  Furthermore, where bonds are too expensive for investors or too illiquid, tokenization can help in both cases, broadening access to the range of products available to the investing public. In addition to this latest news, a number of positive signs have arisen from Thailand with respect to digital assets in recent weeks. It emerged last month that the SEC is considering approving spot Bitcoin exchange-traded funds (ETFs) within the Southeast Asian nation.  Related to that development, SEC Secretary-General Pornanong Budsaratragoon said that the agency has “to adapt and ensure that our investors have more options in crypto assets with proper protection.” Last month, comments made regarding cryptocurrency by Thailand’s former Prime Minister, Thaksin Shinawatra, were quite positive. He called on the SEC to enable the trading of stablecoins. Since then, Thailand’s Minister of Finance, Pichai Chunhavajira, discussed plans to issue a stablecoin that would be based on the Thai Baht and backed by government bonds.

OPNX Makes a Play for Struggling Crypto Lender HodlnautIn a strategic move OPNX, the crypto claims trading platform associated with the founders of failed Singaporean crypto hedge fund Three Arrows Capital (3AC), is eyeing the acquisition of Hodlnaut, a beleaguered crypto lender currently undergoing court-supervised restructuring in Singapore.Photo by Meriç Dağlı on UnsplashCompelling offerThat’s according to a person familiar with the matter cited by Bloomberg News on Sunday, together with a term sheet seen by Bloomberg. It’s understood that OPNX has presented a compelling offer to infuse Hodlnaut with a much-needed capital injection of approximately $30 million worth of FLEX digital tokens.These tokens are closely tied to CoinFLEX, a trading platform that ran into difficulty in 2022, co-founded by Mark Lamb and Sudhu Arumugam. The Seychelles-based company rebranded and relaunched as OPNX earlier this year with the 3AC founders on board. The FLEX token holds a current market valuation of around $647 million, according to CoinGecko data.Partial creditor payoutThe OPNX proposal aims to fund a partial creditor payout to facilitate the resolution of pending claims. This proposal comes on the heels of efforts by Hodlnaut’s directors to reach out directly to its users, a move that was met with objections by the interim judicial managers overseeing Hodlnaut’s restructuring. A letter dated July 29 from the administrators confirms this development.Under the terms of the deal outlined in a term sheet, OPNX’s capital injection through FLEX tokens would translate into a 75% ownership stake in Hodlnaut. The restructuring plan, if approved by creditors, would see these creditors receiving 30% of their claims in FLEX and other tokens. Alternatively, they would be entitled to a pro-rata payment of up to 95% of the total available corporate assets, whichever is more favorable to them.Hodlnaut, headquartered in Singapore with operations also in Hong Kong, got caught up in crypto market turbulence, leading to a suspension of withdrawals a year ago. Subsequently, it embarked on a court-monitored restructuring journey in Singapore. Neither Hodlnaut nor its judicial managers have provided immediate comments on the OPNX bid.The founders of Hodlnaut, Simon Lee and Zhu Juntao, had earlier proposed a business sale as a preferable alternative to liquidation. This proposal aimed to provide better outcomes for creditors, who had initially expressed preference for liquidation over a proposed restructuring plan earlier in the year.OPNX reprimandThe journey of both OPNX and Hodlnaut is also marked by legal and regulatory challenges. In April, authorities in Dubai reprimanded Su Zhu, Kyle Davies, Mark Lamb, OPNX’s CEO Leslie Lamb, and Sudhu Arumugam for operating and promoting OPNX without the required local license. Meanwhile, the liquidators of 3AC have alleged a lack of cooperation by Zhu and Davies, as they seek to recover $1.3 billion from the duo, reflecting the losses preceding the fund’s downfall.The 3AC founders recently claimed that they would donate OPNX profits to 3AC creditors. However, Kyle Davies is fighting the efforts of the 3AC liquidator to reclaim funds from the founders.

Phoenix Group strikes $380M deal with MicroBTPhoenix Group, a Dubai-headquartered Bitcoin (BTC) mining company, has sealed a $380 million deal with Chinese mining equipment manufacturer, MicroBT.The deal comes just days after Phoenix’s stock made its debut on the Abu Dhabi Securities Exchange (ADX). The miner announced on Thursday that it would promptly receive mining equipment valued at $136 million, with an additional option for equipment worth $246 million.Phoenix asserts that this transaction stands as the most substantial order for MicroBT’s Whatsminer equipment in the past two years. Whatsminer is a brand of mining hardware and chip design which has been developed by MicroBT.Photo by Traxer on UnsplashGreen mining equipmentAs outlined in a press release published by the company, the Middle East-based miner is taking a step towards sustainability by incorporating hydro-cooling miners, a collaborative effort with MicroBT aimed at establishing world-class high-performance computing (HPC) data centers. The move highlights Phoenix Group’s interest in pursuing eco-friendly crypto-mining practices, something that will help to position the company as a leader in furthering efficient and responsible mining solutions.Munaf Ali, co-founder of Phoenix Group, emphasized the significance of partnering with MicroBT and advancing hydro-cooling technologies in achieving the company’s vision for sustainable and innovative mining operations. Ali stated:“Our partnership with Whatsminer and the development of hydro cooling technologies are key components of our vision for sustainable and innovative mining operations. These advancements are not only a leap in our technological capabilities but also align with our commitment to environmental responsibility.”While Phoenix did not disclose further specifics about the type of mining machines it is acquiring, the move signifies a broader trend among mining companies making substantial investments in cutting-edge hardware. Texas-based Bitcoin miner Riot Platforms recently spent $290 million to acquire over 66,000 mining machines from MicroBT.GCC distribution agreementPhoenix has an ongoing business relationship with MicroBT. In November 2022 the firm signed a deal with MicroBT that enabled it to act as a distributor of MicroBT’s Whatsminer brand of mining equipment. Under the terms of that partnership, Phoenix distributes Whatsminer products across Gulf Cooperation Council (GCC) countries such as the United Arab Emirates (UAE), Oman, Saudi Arabia, Bahrain, Qatar and Oman.Phoenix Group’s recent accomplishments extend beyond hardware acquisitions. Following its historic debut on the ADX on Tuesday, where it raised $370 million from its initial public offering in November, the company has experienced positive market performance.Data from ADX’s website reveals that Phoenix Group’s stock has propelled its market capitalization to over $4 billion (15.1 billion AED) within the first two days of trading. The initial public offering (IPO) price of 1.50 dirhams had been set earlier this week. Immediately, the shares increased by 50% to 2.25 dirhams.Bijan Alizadehfard, co-founder and group CEO of Phoenix Group, expressed the company’s success on the ADX as a catalyst for forging significant partnerships with major mining firms like MicroBT. Alizadehfard highlighted that the listing has bolstered the company’s capabilities in the blockchain and cryptocurrency sector, contributing to its ongoing advancements in the industry.