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Hong Kong Grants Regulatory Approval for Cryptocurrency Trading to Retail Investors

Hong Kong is set to expand its cryptocurrency trading options to individual investors as at least one exchange has secured regulatory approval to offer its services to retail users.

HashKey, a local digital asset firm, has achieved all the necessary licensing to extend its operations from catering to professional investors to including retail users.

The regulatory green light came from the upgrading of two significant licenses issued by the Hong Kong Securities and Futures Commission (SFC).

The first license, known as Type 1, permits HashKey to operate a virtual asset trading platform under the jurisdiction of Hong Kong’s securities laws.

The second license, Type 7, officially authorizes the firm to provide automated trading services to both institutional and retail users.

Notably, HashKey has become one of the pioneering licensed exchanges to offer retail cryptocurrency trading in Hong Kong.

Moreover, the firm has introduced its crypto over-the-counter (OTC) trading service, HashKey Brokerage, which complies with local securities laws, following the implementation of a new crypto regulatory framework by the SFC.

Livio Weng, the Chief Operating Officer of HashKey Group, expressed confidence in the establishment of licensed trading platforms and the increased clarity of regulatory frameworks in Hong Kong.

He believes that this will result in enhanced transparency and significantly boost investor confidence.

HashKey is not alone in this development, as OSL, another local crypto firm, has also received an uplift to its existing license from the SFC.

This enables OSL to offer Bitcoin (BTC) and Ether (ETH) trading to retail investors immediately. Dave Chapman, OSL’s co-founder, emphasized that the licensing uplift would allow OSL to facilitate digital asset access for retail investors.

This news follows an announcement from a Hang Seng Bank executive who asserted that crypto companies can only open bank accounts after obtaining an approval-in-principle license from the SFC.

As of early August, OSL and HashKey were reportedly the only exchanges to have received such approval.

The expansion of cryptocurrency trading exposure to individual investors marks a significant step in Hong Kong’s evolving crypto landscape, offering increased opportunities for retail participation in the market.

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Binance CEO CZ Unveils Plan to Launch Smaller Algorithmic Stablecoins

BlockFi’s Reorganization Progresses with Conditional Approval from Bankruptcy Court

Crypto News Today/DeFi

BlockFi, the cryptocurrency lender undergoing reorganization, has taken a significant step forward as the United States Bankruptcy Court for the District of New Jersey conditionally approved its disclosure statement.

The company released a joint statement with the Official Committee of Unsecured Creditors on August 2, 2023, urging all eligible parties to vote in favor of the plan before the September 11 voting deadline.

This approval is crucial as it will lead to the resolution of the Chapter 11 cases and the eventual return of client funds.

Once the bankruptcy plan obtains the necessary approval, BlockFi aims to focus on recovering funds from various defunct firms, including Alameda Research, FTX, Three Arrows Capital, Emergent, Marex, and Core Scientific.

The primary objective is to optimize the recovery of client funds while also countering potential claims by third parties that could dilute client assets.

The plan offers clients the option for releases if they don’t opt out of a voluntary third-party release.

This release would exempt them from any claims and causes of action that BlockFi might have against them.

However, this release does not apply to clients who withdrew $250,000 or more from BlockFi Interest Accounts (BIA) or BlockFi Private Client (BPC) Accounts on or after November 2, 2022.

Additionally, the plan stipulates that BlockFi will not reclaim amounts under $250,000 that clients properly transferred from BIAs or BPCs to BlockFi Wallet and subsequently withdrew from Wallet before the platform’s pause on November 10, 2022.

Furthermore, clients with claims under $3,000 or those who choose to reduce their claim to $3,000 will be part of the convenience claim class and receive a one-time cash distribution from the BlockFi estate equal to 50% of their claim.

In another development, the United States Securities and Exchange Commission (SEC) has agreed to postpone the collection of a $30 million fine from BlockFi until creditors are fully repaid.

This fine constitutes the remaining balance of a $50 million settlement reached with the regulator in February 2022.

With the conditional approval of the disclosure statement, BlockFi is inching closer to resolving its bankruptcy cases and ensuring the return of funds to its clients.

The company urges all eligible parties to vote in favor of the plan before the voting deadline to move forward with the reorganization process successfully.

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IRS Issues New Ruling: U.S. Crypto Investors Must Report Staking Rewards as Gross Income

OKX Wallet Launches Account Abstraction-Powered ‘Smart Account’ Feature, Enabling USDT and USDC Gas Fee Payments on Multiple Chains

Crypto News Today/DeFi/Press Releases

Singapore, Singapore, August 2nd, 2023, Chainwire

OKX, a leading Web3 technology company, today announced the launch of a new account abstraction-powered Smart Account feature on its OKX Wallet, enabling users to pay for transactions on multiple blockchains using USDC or USDT.

OKX Wallet will soon launch additional account-abstraction powered features, including social recovery functionality. This will enable users to select trusted “guardians” from their social network to help them recover their Smart Account if they lose their keys.

OKX Wallet is one of the first wallets in Web3 with multi-chain account abstraction support. With Smart Account, users can now interact with multiple contracts in a single transaction. This enhances composability for advanced users and adds convenient features for beginners, creating a more user-friendly and intuitive wallet experience.

OKX Chief Innovation Officer Jason Lau said: “Our aim is to provide our users with the most accessible, secure, and powerful Web3 gateway. The Smart Account feature will play a significant role in achieving this goal. Account abstraction technology is a game-changer for the broader adoption of Web3 and enables new use cases and user experiences. We are excited to share more as we continue to build on top of this feature.”

Account abstraction simplifies crypto transactions by enabling the creation of Web3 wallet accounts that conceal the more technical details of their on-chain interactions behind a more accessible and user-centric interface. This is achieved by combining users’ smart contracts and Externally Owned Accounts (EOAs) into a single “smart” account, providing a more unified Web3 experience.

The account abstraction-powered Smart Account simplifies some of the complexities of blockchain transactions; for example, one of the biggest painpoints that users face is the need to navigate the complex transaction process and decipher technical terms such as ‘gas fees’ and ‘Gwei.’ Smart Account addresses this painpoint by reducing the number of steps required to complete a token swap or trade to just one click.

OKX Chief Marketing Officer Haider Rafique said: “We promised our customers and the larger DeFi community that we would prioritize security and interoperability as we build our Web3 wallet and apps. We support 60+ cross-chains, Multi-Party Computation (MPC), and now with Smart Account, we offer a stablecoin account that can interact with transactions on multiple blockchains without the need for a specific blockchain’s native token, with a social recovery feature coming soon. This is a game-changer, and we believe it has the ability to make transactions between chains a lot more seamless.”

Additional benefits of OKX Wallet’s Smart Account feature include:

Gas fee-related

The option to pay for gas on any of the supported chains using stablecoins USDC and USDT.
Users can also conduct gasless transactions if third-party dApps choose to sponsor their on-chain interactions.
Elimination of the need for users to pay gas fees with each individual chain’s native token.

Simplified token swaps and staking

Smart Account combines multiple stages of the swap and staking process into a single step. Users can exchange tokens and earn interest by staking crypto with just one click.

OKX Wallet currently supports account abstraction technology on seven blockchains: Ethereum, Polygon, Arbitrum, Optimism, BNB Chain, Avalanche and OKT Chain. It is also the first Web3 wallet to utilize multi-party computation (MPC) technology across 37 blockchains, eliminating the need for traditional written down keys and seed phrases by splitting a user’s private key into three parts, greatly improving security and eliminating a single point of failure.

About OKX

A leading global technology company driving the future of Web3, OKX provides a comprehensive suite of products to meet the needs of beginners and experts alike, including:

OKX Wallet: The world’s most powerful, secure and versatile crypto wallet which gives users access to over 50 blockchains while allowing them to take custody of their own funds. The wallet Includes MPC technology which allows users to easily recover access to their wallet independently, removing the need for traditional, ‘written down’ seed phrases
DEX: A cross-chain decentralized exchange which aggregates nearly 200 other DEXs, with 200,000+ coins on more than 10 blockchains available.
NFT Marketplace: A multi-chain, zero-fee NFT marketplace that gives users access to NFT listings across seven top-tier marketplaces including OpenSea, MagicEden, LooksRare and Blur.
Web3 DeFi: A powerful DeFi platform that supports earning and staking on 80 protocols across 15 chains.

OKX partners with a number of the world’s top brands and athletes, including: English Premier League champions Manchester City F.C., McLaren Formula 1, The Tribeca Festival, Olympian Scotty James, and F1 driver Daniel Ricciardo.

As a leader building innovative technology products, OKX believes in challenging the status quo. The company recently launched a global brand campaign entitled, The System Needs a Rewrite, which advocates for a new paradigm led by Web3 self-managed technology.

To learn more about OKX, download our app or visit: okx.com

Disclaimer

The information displayed is strictly for educational and informational purposes only. It does not constitute and shall not be considered as an offer, solicitation or recommendation, to deal in any products (including any NFT or otherwise), or as financial or investment advice. Both OKX Web3 Wallet and OKX NFT Marketplace are subject to separate terms of service at www.okx.com.

Contact

OKX
Media@okx.com

Terminal 3 Raises Pre-Seed Funding for Decentralized User Data Infrastructure

Crypto News Today/DeFi/Press Releases

Hong Kong, Hong Kong, August 2nd, 2023, Chainwire

Terminal 3, a Hong Kong-based Web3 startup, has successfully raised an oversubscribed pre-seed round to build user data infrastructure for a decentralized future. The company announced today a world-class investor group comprising 500 Global, CMCC Global, Consensys Mesh, Bixin Ventures, BlackPine, DWeb3, Hard Yaka, Bored Room Ventures, Mozaik Capital, and others.

The company aims to replace centralized data storage that deprives users of privacy and saddles enterprises with compliance and security issues and their associated costs. Terminal 3 leverages decentralized storage and zero-knowledge proofs to empower an equitable Web3, where user data is freely composable while remaining fully private and secure.

“The continued growth in blockchain allows us to reimagine digital data ownership and security,” said Gary Liu, CEO of Terminal 3. “We believe that data should flow freely between applications to drive innovation and improve user experience, but not at the expense of personal privacy and control.”

Terminal 3 was co-founded by Gary Liu alongside his partners Malcolm Ong (CPO) and Joey Liu (COO). All three were former entrepreneurs and business leaders who have built, scaled, and transformed some of the world’s leading technology companies. The co-founders previously worked together at the South China Morning Post, where they led the historic newspaper’s successful digital transformation. Gary was the Post’s CEO, while Malcolm and Joey were SVP of Product and Head of Strategy respectively.

Malcolm was also the Co-founder and CTO of Skillshare, the world’s largest online learning community for creativity, while Gary and Joey co-founded Artifact Labs, a Web3 startup backed by Blue Pool Capital and Animoca Brands that is preserving historical assets on the blockchain. Gary is also the Founding Chair of Web3 Harbour, an association in Hong Kong serving Web3 builders, investors, users, and leaders.

“I believe Gary, Malcolm, and Joey are perfectly suited to address data privacy problems that plague the internet,” said Vishal Harnal, Managing Partner at 500 Global. “Their mix of consumer startup success and expertise in enterprise technology could help bridge a critical gap between the old world of centralized data and the new world of decentralized identity.”

Growing Need for Alternative Data Infrastructure

Over the past five years, new regulations on data privacy have created a stringent environment for the storage and use of personal information worldwide. Led by Europe’s General Data Protection Regulation (GDPR) and China’s Personal Information Protection Law (PIPL), global regulators and lawmakers are increasingly holding enterprises accountable for the protection of individual privacy. This trend is set to continue with the approval of the Digital Market Act in Europe and upcoming GDPR-inspired laws in the United States and around the world.

US and UK corporations have spent over US$9 billion on GDPR compliance since 2018, with those investing incurring average costs of US$1 million annually. However, over 40% of companies still lack any budget for such compliance while GDPR fines continue to grow, with Meta alone sustaining over US$2.3 billion in penalties.

Data security is also a costly enterprise concern as data breaches accelerate in frequency. Global spending on data security and risk management products is projected to exceed US$188 billion in 2023. However, in a world where 90% of companies rely on multi-cloud environments, data privacy and security issues will grow regardless of investment.

Blockchain technology is increasingly viewed by corporate executives as a solution for user data privacy and security. In a recent survey of US Fortune 500 companies, Coinbase found that 51% of enterprises that use or plan to use blockchain employ the technology for ‘Data Collection and Management’.

“Terminal 3 is a compelling alternative to the non-compliant and unsecured data infrastructure that enterprises rely on today,” said Shawn Cheng, Partner at Consensys Mesh. “Data regulations and security laws are becoming more stringent around the world, and companies are finally realizing that self-sovereign data is a great solution for both users and enterprises. We are excited to be involved in this important project.”

“Scaling Web3 will require the re-invention of core enterprise technologies,” added Gary Liu. “Terminal 3 is building solutions that serve both corporations and individuals, to enable this critical shift in our digital world.”

About Terminal 3

Terminal 3 is a Hong Kong-based Web3 startup building user data infrastructure for a decentralized future. The company’s solutions are an alternative to centralized data storage that deprives users of privacy and saddles enterprises with compliance and security concerns. Terminal 3 leverages decentralized storage and zero-knowledge proofs to empower an equitable Web3 where user data is freely composable while remaining fully private and secure. The company’s founders are successful corporate executives and entrepreneurs, who have built, scaled, and transformed some of the world’s most important companies. Terminal 3 is also backed by world-class investors including 500 Global, CMCC Global, Consensys Mesh, Bixin Ventures, BlackPine, DWeb3, Hard Yaka, and Bored Room Ventures.

For more information about Terminal 3, please visit Terminal 3’s: Official Website | Twitter | LinkedIn

Contact

Joey Liu
Terminal 3
joey@terminal3.io

Binance CEO CZ Unveils Plan to Launch Smaller Algorithmic Stablecoins

Crypto News Today/DeFi

Binance CEO Changpeng “CZ” Zhao is planning to introduce smaller algorithmic stablecoins to provide investors with alternatives to the existing dominant stablecoin giants in the market.

During a recent Twitter “ask me anything” (AMA) session on July 31, CZ expressed concerns about the risks associated with large stablecoins like Tether (USDT) and Binance USD (BUSD).

He highlighted the lack of transparency with Tether, which is the largest stablecoin by market cap, as there have been no audit reports available to verify its reserves.

Even supposedly well-regulated stablecoins like Binance USD come with unforeseeable risks, as evidenced by Paxos Trust Company’s termination of its partnership with Binance and the New York Department of Financial Services’ order to cease minting new BUSD stablecoins.

To mitigate these risks, CZ revealed that Binance is actively working on developing algorithmic stablecoins.

Additionally, the company aims to diversify its stablecoin partnerships to spread potential risk across multiple assets. CZ emphasized the importance of not placing all their bets on a single stablecoin, given the inherent risks involved.

Binance has plans to launch the First Digital USD in Hong Kong and is exploring new stablecoin options in Europe.

First Digital USD is a programmable stablecoin pegged to the U.S. dollar and managed by First Digital Group, licensed in Hong Kong. It was recently listed on the Binance platform.

However, Binance is facing regulatory uncertainty, as evidenced by the $1 billion lawsuit brought against CZ and the company by the Commodities Futures Trading Commission, which CZ seeks to dismiss, alleging overreach of jurisdiction.

Additionally, the U.S. Securities and Exchange Commission filed a lawsuit against Binance, CZ, and affiliated entities on June 5, accusing them of involvement in the sale of unregistered securities, fraud, and conflicts of interest.

In conclusion, CZ’s strategy to introduce smaller algorithmic stablecoins and diversify stablecoin partnerships aims to offer investors more options and reduce potential risks associated with dominant stablecoins in the market.

Despite facing regulatory challenges, Binance is forging ahead with its stablecoin initiatives and expansion plans into different regions.

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Decentralized Exchange on Coinbase’s Base Network Pauses Trading Amidst Concerns of Exploit

Crypto News Today/DeFi

Decentralized exchange LeetSwap, which runs on Coinbase’s Base network, has declared a temporary halt on trading activities due to concerns over a possible exploit.

The exchange made this announcement via a tweet on August 1st, after discovering potential compromises in some of its liquidity pools.

As a precautionary measure, LeetSwap suspended trading to conduct a thorough investigation into the matter.

To aid in resolving the issue, the exchange has enlisted the assistance of on-chain security experts in an attempt to recover the locked liquidity.

Although LeetSwap did not divulge detailed information about the incident, a number of blockchain experts have offered their insights into how the exploit might have occurred.

According to Igor Igamberdiev, the head of research at algorithmic market maker Wintermute, the attacker may have taken advantage of an exposed smart contract function.

By leveraging this vulnerability, the attacker would have been able to artificially increase the price of a token, thereby draining wrapped Ether (ETH) worth $1,828 from LeetSwap’s liquidity pools.

Igamberdiev estimated that the attacker gained approximately 342.5 ETH, equivalent to over $630,000.

Several blockchain security firms, including PeckShield, Beosin, BlockSec, and CertiK, have corroborated Igamberdiev’s theory about the exploit and the amount that was siphoned.

LeetSwap subsequently provided an update approximately an hour and a half after the trading halt, stating that they are actively collaborating with security experts to explore options for recovering the locked liquidity on their platform.

This incident marks the second controversy related to the Base network on the same day. Earlier, a developer of a memecoin called BALD, which was inspired by Coinbase CEO Brian Armstrong, removed liquidity for the token, causing its price to plummet.

The move sparked accusations of an exit scam, which the project developer vehemently denied.

In response to the exploit, LeetSwap has taken swift action and has engaged with industry experts to ensure the safety and integrity of its platform.

Users and the broader cryptocurrency community are keenly monitoring the situation as the investigation unfolds, awaiting further updates from the exchange and security teams involved.

As the decentralized exchange space continues to evolve, the incident serves as a stark reminder of the importance of robust security measures to protect user funds and assets.

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IRS Issues New Ruling: U.S. Crypto Investors Must Report Staking Rewards as Gross Income

Crypto News Today/DeFi

The United States Internal Revenue Service (IRS) has recently issued a significant ruling impacting crypto investors in the country.

According to Revenue Ruling 2023-14, crypto investors must report their earnings from staking digital assets as gross income in the year they receive them.

Gross income includes any form of income, be it in money, property, services, or even staking rewards.

This ruling applies to cash-method taxpayers who receive crypto as compensation for validating transactions on proof-of-stake blockchains, regardless of whether they stake cryptocurrency directly or through a centralized crypto exchange.

The ruling clarifies that the fair market value of the staking rewards should be added to the investors’ annual income and determined at the time they gain control over the rewards.

“Dominion” is defined as the moment when the investor gains control and can sell, exchange, or otherwise dispose of the cryptocurrency rewards.

Notably, the IRS previously subjected crypto-mining rewards to both income and capital gains tax, but staking rewards were not covered until now.

The crypto tax firm Koinly acknowledged the lack of provisions for staking rewards until this new ruling.

Messari founder Ryan Selkis praised the ruling for taxing staking rewards only when they become accessible for sale.

This means that rewards that are accrued but locked will not be taxable until the investor gains “dominion and control” over them.

Selkis also highlighted that the IRS is treating crypto staking similarly to stock dividends.

However, some experts expressed their disappointment with the ruling. Jason Schwartz, tax partner and digital assets co-head at Fried Frank, stated that the ruling was unsurprising but disappointing.

He argued that tax law traditionally required the existence of a payer, such as an employer or counterparty, for income to be taxable, making this ruling a departure from that norm.

This ruling comes amidst increased regulatory scrutiny in the crypto space. U.S. federal regulators, including the Securities and Exchange Commission (SEC), have been targeting crypto-staking service providers and exchanges, alleging that they are engaging in illegal securities sales.

In conclusion, the IRS’s latest tax bulletin requires U.S. crypto investors to report staking rewards as gross income in the year they receive them.

This move aims to clarify the treatment of income earned from staking digital assets for taxation purposes and brings staking rewards into the fold of taxable crypto earnings.

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July Records Catastrophic $486 Million Losses Amid High-Profile Hacks and Exploits

Crypto News Today/DeFi

The cryptocurrency market experienced its most challenging month in 2023, as revealed by a report from Web3 outlet De.Fi, shared with Cointelegraph.

Losses in July amounted to a staggering $486 million, surpassing the total losses from the entire year of 2022 by more than six times.

This alarming trend followed a series of high-profile hacks and exploits that occurred during the month, accompanied by a flurry of legislative activity surrounding the regulation of cryptocurrency and digital assets.

Unfortunately, the recovery efforts for the stolen funds proved insufficient, with only $6.15 million, representing a mere 1% of the total stolen amount, successfully reclaimed.

Researchers at De.Fi expressed their concern over the lack of effective measures to quickly recover lost funds.

They emphasized the critical role played by the cryptocurrency sector in recuperating stolen or lost assets, stating that it is vital in mitigating the adverse effects of such unfortunate incidents.

The report highlighted that the majority of the losses originated from the Ethereum network, accounting for $447 million lost across 36 cases.

Notable incidents included the Multichain hack, which resulted in $231 million in losses, and the Alphapo exploit, causing approximately $100 million in damages.

Following Ethereum, the network with the next highest losses was Base, where a single case led to $23 million being lost.

Binance took third place, reporting a loss of nearly $11 million across 18 cases.

The report attributed the primary cause of the losses in July to “access control issues,” accounting for a significant portion of the funds lost at $364 million.

Additionally, there were over 38 reported cases of “rugpulls,” resulting in approximately $36 million in losses, and reentrancy attacks led to around $78 million in damages.

Despite the concerning statistics, there was a glimmer of positive news in the report:

July saw no reports of exit scams, providing a ray of hope amidst the otherwise bleak scenario.

The De.Fi team’s report underscored the urgency for improved security measures, regulatory efforts, and robust recovery strategies within the cryptocurrency space.

Without prompt and effective action, the market’s vulnerability to hacks and exploits may continue to exacerbate losses and hinder its overall growth and stability.

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Curve Finance’s CRV Token Holders Worried Over Potential Massive Dump

Crypto News Today/DeFi

Curve Finance, the decentralized finance (DeFi) protocol, is facing another challenge in addition to recovering from a recent $47-million hack. Concerns have arisen among holders of the protocol’s token regarding a potential massive dump.

On August 1, Delphi Digital, a crypto research firm, revealed in a Twitter thread that Curve Finance founder Michael Egorov had taken loans backed by a significant portion of the circulating supply of Curve DAO (CRV).

These loans amount to around $100 million and are secured by 427.5 million CRV tokens.

One of the loans, on Aave, involves 305 million CRV supporting a 63.2-million Tether (USDT) loan.

Delphi Digital noted that if the CRV token’s price were to drop by 36%, the position could be liquidated at $0.3767, which is below the current trading price of CRV at approximately $0.5975.

On Frax Finance, Egorov holds 59 million CRV supporting a debt of 15.8 million Frax (FRAX).

The loan carries additional risks due to Fraxlend’s time-weighted variable interest rate, which doubles every 12 hours when the loan is at 100% utilization.

The interest rate can reach an alarming 10,000% in just 3.5 days, making liquidation a possibility regardless of the CRV token’s price.

To mitigate these risks, Egorov has been working to reduce the debt and utilization rate by paying 4 million FRAX in the last 24 hours.

However, users have been quick to withdraw their liquidity as soon as Egorov makes payments.

To address this liquidity issue, Egorov implemented a Curve pool to incentivize liquidity in the lending market.

Within four hours of its launch, the pool attracted $2 million in liquidity and decreased the utilization rate from 100% to 89%.

The situation has drawn comparisons to FTX founder Sam Bankman-Fried using FTX Token (FTT) as collateral and raised concerns within the community, with some fearing that it could hinder the DeFi industry’s progress and discourage potential investors.

Cointelegraph attempted to reach out to Egorov for comment, but there was no immediate response.

In summary, Curve Finance’s CRV token holders are now facing worries about a potential massive token dump due to the significant loans taken by the protocol’s founder, backed by a substantial amount of CRV tokens.

Efforts are being made to manage the risks, but the situation has drawn attention and concern from the crypto community.

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Ukrainian Government Demands Financial Information from Crypto Firms

Crypto News Today

The Ukrainian government has made a recent request to obtain financial information from local cryptocurrency companies.

The National Bank of Ukraine (NBU) has reached out to four crypto firms, including Kuna, CoinPay, GEO Pay, and Qmall, demanding financial statements for the first two quarters of 2023.

These crypto businesses have been asked to provide the required financial data within seven days of the request.

The NBU’s demand for information goes beyond just financial statements; they have also requested data on the operating volumes of these crypto firms and information about the receipt and transfer of funds.

Additionally, the NBU has asked the companies to issue statements for all accounts starting from the beginning of 2023.

Michael Chobanyan, the founder and CEO of Kuna exchange, shared this news with the public. He referred to a document distributed by the Ukrainian Telegram news channel, Politics of the country, as the source of the information.

Chobanyan confirmed the authenticity of the NBU’s request on his own Telegram channel, but he expressed uncertainty about the reasons behind the latest action from the NBU.

Chobanyan criticized the NBU’s actions, claiming that there was no precedent for such actions in Ukraine.

He also mentioned that Kuna exchange had previously left the business-to-customer market in Ukraine due to what he described as “predatory actions” by the NBU.

These actions caused a significant drop in exchange volumes for the company.

Despite the Ukrainian government’s apparent hostility towards the crypto industry, Chobanyan sees a silver lining in the situation.

He stated that Kuna would now focus on the European market, particularly the business-to-business (B2B) sector.

He pointed out that Kuna recently launched a crypto-acquiring service called KunaPay, which might have influenced the NBU’s actions.

However, the NBU has not yet provided any clarifications or comments regarding its recent request for financial information from the crypto firms.

As the situation develops, this article will be updated to include any new information or statements from the NBU.

In summary, the Ukrainian government’s National Bank has requested financial information from several local cryptocurrency companies, raising questions about its motives and impact on the crypto industry in the country.

While there are concerns about the NBU’s actions, some companies like Kuna see this as an opportunity to focus on the European B2B market.

The NBU’s response to these developments remains pending.

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