Binance VIP traders got sneak peak of US settlement: Report

December 1, 2023 Coin Telegraph

Binance

At an exclusive dinner in Singapore, certain Binance executives reportedly told traders about the pending settlement with U.S. officials, allowing the exchange to stay in business.

Executives of cryptocurrency exchange Binance reportedly gave a heads-up to its top market makers regarding a potential $4.3-billion settlement with authorities in the United States.

According to a Dec. 1 Bloomberg report, Binance traders at an exclusive September dinner in Singapore were informed about a tentative deal the crypto exchange had with U.S. Some Binance executives reportedly told certain traders at the event that the exchange could easily afford the $4.3-billion penalty to stay in business.

Then Binance CEO Changpeng “CZ” Zhao was reportedly not in attendance at the event, but Richard Teng, who succeeded Zhao following the settlement, was mingling with guests.

According to Teng’s posts on X (formerly Twitter) from September, the then head of regional markets was in Singapore for the Token2049 conference, the Milken Institute Asia Summit, the Singapore Grand Prix for Formula 1 and “plenty of side events.” Cointelegraph will release an exclusive interview with the Binance CEO at 6:00 pm UTC on Dec.

Glad to be speaking at Ethereum_sg. Busy week in Singapore with Token 2049, Milken, plenty of side events and rounded up by Singapore F1 night race https://t.co/FBirPWgRLg
— Richard Teng (@_RichardTeng) September 12, 2023

As part of its settlement, Binance must pay $4.3 billion to various U.S. at the time of publication, as a court considered his request to return to the United Arab Emirates before sentencing in February.

OPNX token spikes 50% after Su Zhu unexpectedly posts a ‘gm’ on Twitter

December 1, 2023 Coin Telegraph

3AC

The OX token hit a price high not seen since co-founder Su Zhu was arrested in late September.

Open Exchange Token (OX), the native token of the crypto bankruptcy claims platform OPNX, spiked 50% just 20 minutes after co-founder Su Zhu supposedly posted to X (Twitter) for the first time since his arrest.

On Dec. 29, the same day he was arrested at Singapore’s Changi Airport attempting to leave the country.

gm
— 朱溯 (@zhusu) December 1, 2023

In the 20 minutes after Su’s X post, OX jumped nearly 50% to $0.021 and hit a 63-day high — a price not seen since the day of Su’s Sept. 29 arrest, according to CoinGecko data.

*OX token price with a spike in the minutes after Su’s X post. Source: CoinGecko*

Shortly after the price peak, OX retraced by around 6%.

Su was arrested on Sept.

The order was meant to see Su serve four months’ imprisonment — meaning he wouldn’t be released until next year, though some have speculated he may have been released after a wallet labeled "suzhu.eth" — believed to belong to Su (though unconfirmed) — became active again on Nov.

OPNX, short for Open Exchange, is a platform allowing for the trade of creditor claims from bankrupt crypto companies.

Zipmex proposes to pay creditors 3 cents per dollar

November 29, 2023 Coin Telegraph

Coin Telegraph

The proposal came as a part of a restructuring offer from the embattled Thai crypto exchange, which owes its customers $97 million.

Embattled Thai crypto exchange Zipmex is offering its creditors 3.35 cents per dollar for initial claims, with further payouts in a recovery scenario. The proposal came as a part of the restructuring offer from the company, which owes its customers $97 million.

According to a Nov. 29 Bloomberg report, Zipmex could raise the sum from 3.35 cents per dollar to 29.35 cents per dollar “contingent on the recovery.” However, major creditors are reportedly against the proposed scheme and demand an independent review of the company’s liabilities.

Zipmex CEO Marcus Lim refused to confirm the cited details of a restructuring scheme but mentioned the “inaccuracies” in numbers cited by journalists, the report said.

Zipmex got into trouble in the summer of 2022 when the crypto exchange, operating in Southeast Asia, filed for bankruptcy protection in Singapore. The company demanded time to work out how to address its $53 million exposure to crypto lenders Babel Finance and Celsius.

Zipmex has repeatedly asked the Singaporean court to extend the moratorium on its debt. According to Bloomberg, the creditors’ vote on the current restructuring plan will happen in early December.

In November, the exchange announced that all digital asset trading in Thailand would be suspended by Jan. 31, 2024. The company has been under investigation by Thailand’s Securities and Exchange Commission since early 2023.

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JPMorgan, Apollo plan for enterprise mainnet, execs reveal

November 28, 2023 Coin Telegraph

Banks

The ‘enterprise mainnet’ provides the scalability to add applications to a network that already has a KYC-compliant set of institutional banks, broker-dealers and asset managers.

Executives of banking giants JPMorgan Chase and Apollo revealed plans for a tokenized ‘enterprise mainnet’ formed during a collaboration on the Monetary Authority of Singapore’s (MAS) Project Guardian pilot project.

On Nov. 15, the MAS introduced five additional industry pilots to Project Guardian to test various use cases around asset tokenization, which saw participation from 17 member financial institutions, including JPMorgan and Apollo. The duo collaborated to test digital assets for more seamless investment and management of discretionary portfolios and alternative assets, automated portfolio rebalancing and customization at scale.

*Members of the Project Guardian. Source: mas.gov.sg*

In a Forbes interview, Christine Moy, partner at Apollo Global Management, explained how production-grade tokenization helped create intraday repo, JPMorgan’s new tradable product. The lender's blockchain head, Tyrone Lobban, revealed that the new system has already processed over $900 billion in assets, adding:

“There was actually no intraday repo market before this, and now we’re settling around $2 billion a day of intraday repo trades through our platform.”

According to Moy, the system performs as an enterprise mainnet, and she sees it as having a first-mover advantage in the race for offering tokenized investment instruments. She said:

“Obviously, we've seen the progress and innovation of Ether (ETH) and how as the first mover, they had the network effects, and now that's where all the next-generation innovation has been created.”

The ‘enterprise mainnet’ provides the scalability to add applications to a network with an existing Know Your Customer (KYC)-compliant set of institutional banks, broker-dealers and asset managers.

Through Project Guardian, financial institutions are working out the ideal software stacks that could accommodate agnostic interoperability across different pools of assets.

On Nov. 24, MAS laid down measures for Digital Payment Token (DPT) service providers to discourage speculation in cryptocurrency investments.

Determining customers’ risk awareness, refusing credit card purchases, and providing no incentives are some of the ways MAS asked DPT service providers to help retail clients avoid price speculation.

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Singapore to restrict retail crypto speculation with new rules

November 24, 2023 Coin Telegraph

Central Bank

According to MAS, speculative cryptocurrency trading is partly fueled by unverified success stories, celebrity endorsements and FOMO on good returns.

In response to the feedback received on its proposed Digital Payment Token (DPT) regulations, the Monetary Authority of Singapore (MAS) laid down measures for DPT service providers to discourage speculation in cryptocurrency investments.

The de facto central bank of Singapore, MAS announced five ways DPT service providers can help retail clients avoid price speculation. DPT service providers must determine their customer’s risk awareness before offering crypto services. In addition, DPT service providers were advised against providing any incentives to trade in cryptocurrencies. Thirdly, DPT service providers cannot offer financing, margin or leveraged transactions.

Refusing locally issued credit card payments is another measure MAS believes will discourage speculation in crypto investments. Lastly, crypto holdings will not be considered in determining a customer’s net worth. Speaking about the decision, Ho Hern Shin, deputy managing director (financial supervision) of MAS, stated:

“While these business conduct and consumer access measures can help meet this objective, they cannot insulate customers from losses associated with the inherently speculative and highly risky nature of cryptocurrency trading.”

According to the MAS, speculative cryptocurrency trading poses “significant risks and consumer harms,” partly fueled by unverified success stories, celebrity endorsements and the fear of missing out on good returns.

On Nov. 15, Singapore’s central bank included five additional industry pilots in Project Guardian to test various use cases around asset tokenization. As explained by MAS:

“These developments under Project Guardian will catalyze the institutional adoption of digital assets, with the aim of freeing up liquidity, unlocking investment opportunities, and increasing the efficiency of financial markets.”

Out of the 17 financial institutions members of Project Guardian, the five pilot projects are distributed among Citi, T. Rowe Price, Fidelity International, Ant Group, BNY Mellon, OCBC, JPMorgan Apollo and Franklin Templeton.

In addition to the five pilots, MAS launched Global Layer One to explore the design of an open digital infrastructure that will host tokenized financial assets and applications.

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3AC co-founder Kyle Davies spotted in Bali, sources claim

November 16, 2023 Coin Telegraph

3AC

Sources claim that 3AC co-founder Kyle Davies has been based in Bali for months as he continues to evade Singaporean authorities over the collapse of his failed hedge fund.

Three Arrows Capital (3AC) co-founder Kyle Davies has reportedly been seen in Bali as he continues to evade authorities over the collapse of the defunct hedge fund.

Davies, who has been embroiled in bankruptcy proceedings following the collapse of 3AC in 2022, has already been sentenced to four months in jail in Singapore for failing to cooperate with investigations into its bankruptcy.

An anonymous source provided Cointelegraph with images that purportedly show Davies with an unknown woman at the Milk and Madu cafe in Canggu, Bali on Nov. 8. Furthermore, separate sources involved with ongoing bankruptcy proceedings in Singapore have confirmed that the 3AC co-founder is based in the Indonesian province.

The images, which have been withheld from publication, bear a stark resemblance to several photographs that Davies has posted online over the past two years.

The witness claims that Davies looks “alive, well and happy” and attempted to conceal his visage once he suspected he may have been recognized. The images supplied showed Davies in a signature pink collared shirt and sunglasses.

“It is 100% him. From the shirt and glasses, I also saw him firsthand without the glasses. He then put the glasses on when he felt we “recognized” him and continued to put the glasses on until we left the place and took this from the cashier's point of view," the source told Cointelegraph.

Davies’ co-founder Su Zhu was arrested in Singapore on Sept. 29 as he attempted to flee the country, after 3AC liquidator Teneo had secured a civil court order that committed both founders to prison earlier in the month.

The New York Times reported that the pair had spent months in Bali instead of cooperating with bankruptcy proceedings in the United States and Singapore.

Cointelegraph's source involved in the ongoing case in Singapore said that Davies' detention depends on the cooperation of Bali authorities.

Davies has since successfully evaded contempt charges in the U.S. over the bankruptcy case in the country, having renounced his American citizenship in 2022 following his marriage to a Singaporean national and taking up citizenship in the country.

Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York ruled that the court could not “exercise jurisdiction over Mr. Davies” following evidence presented by Davies’ legal representatives that proved he was no longer an American citizen.

The judge hinted that the foreign representatives could consider compelling Davies’ compliance through Singaporean courts. He denied the contempt motion and said the U.S. court could largely not “exercise jurisdiction over Mr. Davies.”

Davies' pending arrest and four-month sentence in Singapore is a result of a committal order secured by Teneo for contempt of court.

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Blockdaemon among founders of BSN Spartan Network governing body

November 16, 2023 Coin Telegraph

China

The BSN Foundation’s “non-cryptocurrency” approach aims to create a stable network that would not be as volatile as traditional cryptocurrencies like Bitcoin.

The Singapore-based BSN Foundation, a global blockchain infrastructure organization, officially announced its launch with five international founding members on Nov. 16.

BSN’s founding members include the institutional digital asset wallet Blockdaemon, the blockchain infrastructure automation platform Zeeve, the digital asset creation platform Toko and tech firms GFT Technologies and Red Date Technology.

The newly formed BSN Foundation will serve as the governing body of the BSN Spartan Network, a public infrastructure network based on the open-source BSN Spartan data center software. The foundation’s launch marks one of the most significant milestones on its path to global expansion and its ambitions to establish a new international standard for decentralized IT infrastructure.

“The BSN Foundation launch is a vital step in our global expansion, demonstrating the international recognition and support for the BSN Spartan Network’s concept and goals,” Red Date Technology vice president of global business, Tim Bailey, told Cointelegraph. The foundation is launched with participation from organizations across different regions across the world, including the United States, Germany and Hong Kong, Bailey noted, adding:

“These organizations bring expertise in areas like blockchain-as-a-service, asset tokenization, financial services, and consulting, highlighting the wide applicability and potential of the BSN Spartan Network.”

Bailey stressed that the BSN Spartan Network is designed to significantly shift how the public chain technology is utilized and governed.

“By focusing on non-cryptocurrency public chains and a decentralized governance model, we’re not just innovating in technology but also in how global collaborations can shape the future of IT infrastructure,” the exec said. BSN’s approach ultimately aims to create a “more stable and accessible network” for businesses worldwide, moving away from the volatility associated with traditional cryptocurrencies like Bitcoin (BTC).

Launched in September 2022, the BSN Spartan Network features a non-tradable token (NTT), a digital token issued on the default chain of the BSN Spartan Network. Each BSN Spartan data center has only one registered NTT wallet to manage and hold NTT, which can be purchased with fiat currency, designated stablecoins or acquired through incentive programs.

Despite the BSN Spartan Network launching just about a year ago, its idea originated long before. The network was started in China as the “Blockchain-based Service Network” in early 2020 and was launched with support from the Chinese government.

“BSN was indeed originally initiated in China. However, the BSN Spartan Network, governed by the Singapore-based BSN Foundation, is distinct from the BSN Networks in mainland China,” Bailey stated. He emphasized that the BSN Spartan Network is built using international standards, completely open source and operates separately from the BSN Networks in mainland China.

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Paxos to issue USD stablecoin in Singapore, wins initial approval

November 16, 2023 Coin Telegraph

Coin Telegraph

The USD-backed token will comply with Singapore’s upcoming stablecoin laws and be issued through a new local Paxos entity that’s received initial approval.

Crypto infrastructure firm Paxos has secured in-principle approval from Singapore’s regulator for a new entity that’s planning the launch of a U.S. dollar-backed stablecoin.

In a Nov. 15 statement, Paxos said it received an initial nod from the Monetary Authority of Singapore (MAS) for its new entity Paxos Digital Singapore Pte. Ltd. The new firm can offer digital payment token services and plans to issue a USD stablecoin cleared under the MAS’ proposed stablecoin regulations.

Upon receiving full approval, Paxos said it will be able to partner with enterprise clients to issue the stablecoin in Singapore.

“Global demand for the U.S. dollar has never been stronger, yet it remains difficult for consumers outside the U.S. to get dollars safely, reliably and under regulatory protections,” said Paxos head of strategy Walter Hessert. “This in-principle approval from the MAS will allow Paxos to bring its regulated platform to more users around the world.”

On Aug .15, MAS announced its final framework for regulating stablecoins aimed at non-bank issued tokens pegged to the value of the Singapore dollar or G10 currencies such as the euro, British pound and U.S. dollar and whose circulation exceeds 5 million Singapore dollars ($3.7 million).

@MAS_sg has announced the features of a new regulatory framework that seeks to ensure a high degree of value stability for #stablecoins regulated in #Singapore. https://t.co/j12QambGIJ pic.twitter.com/LBUoOGY16P
— MAS (@MAS_sg) August 15, 2023

On Aug. 7, PayPal launched its USD-backed stablecoin — PYUSD — issued by Paxos.

Paxos formerly minted Binance’s now-defunct BUSD stablecoin but was ordered by the New York Department of Financial Services to cease issuance of the token after the agency declared the stablecoin an unregistered security.

Paxos clarified that all of its stablecoins are fully backed by the U.S. dollar and cash equivalents, adding that it issues monthly attestations and reserve reports to ensure compliance.

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Nearly 50 Jurisdictions Partner To Enable Automatic Info Exchange Between Crypto Trading Firms and Tax Agencies

November 11, 2023 The Daily Hodl

Singapore startup dtcpay launches retail crypto payments system with Chinese partners

November 10, 2023 Coin Telegraph

China

Dtcpay, formerly Digital Treasures Center, is MAS-registered and already provides some point-of-sale and online crypto payment services.

Singapore-based dtcpay is launching a payment system that will use fiat and cryptocurrencies for in-store and online payments. The company mentioned Tether (USDT), Ether (ETH) and Bitcoin (BTC) in its announcement.

The company is partnering with open-source blockchain PlatON for privacy-protected digital infrastructure and Allinpay International to create smart terminals and a digital interface. Both PlatOn and Allinpay are based in China. Dtcpay and Allinpay are registered with the Monetary Authority of Singapore (MAS) as major payment institutions.

A spokesman for Allinpay parent company Tonghua International said:

“This cooperation will […] Help merchants better adapt to the modern payment trend and meet the needs of young consumers.”

Dtcpay will exchange fiat and crypto and onboard new cryptocurrencies in the new service. It already provides point-of-sale and online checkout. In September, dtcpay concluded a deal with London-based Sumsub to provide Know Your Customer services for the dtcpay digital wallet and entered into an agreement with Singapore POS provider Jeripay to provide crypto payment services on its 8,000-terminal network.

Founded in 2019 and originally known as Digital Treasures Center, dtcpay was selected to participate in Mastercard’s Mastercard Start Path program for crypto and blockchain startups in November 2022. It received backing by the Pontiac Land Group real estate conglomerate in a pre-seed funding round in June.

Dtcpay last month raised $16.5 million in a pre-Series A round led by Kwee, the chairman of Pontiac Land. The investment will see some of Pontiac Land’s hotels soon accept payments in crypto: by @zinnialee23 https://t.co/D5vdnHBtYL
— Forbes Crypto (@ForbesCrypto) July 17, 2023

Electronic payment is common in Singapore, which is considered to have progressive cryptocurrency regulation, including consumer protection. Coinbase and Ripple received major payment institution licensing from MAS in October. The city-state is also experimenting with central bank digital currency, but the MAS has stated that it sees “no urgent use case” for a retail CBDC.

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