Snapshot Web3

November 15, 2023

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Regulatory and Legal Updates

Crypto custodian Hex Trust receives Dubai VASP license

Hex Trust, a Hong Kong-founded institutional cryptocurrency asset custodian, has received a full Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA). This license, granted on November 15, enables Hex Trust to offer virtual asset custodial services to institutional clients and investors in Dubai. The firm had previously received a minimal viable product operations license in February 2023. Additionally, Hex Trust also received regulatory approval in France in August 2023. The company operates in multiple locations, including Hong Kong, Singapore, Vietnam, Dubai, Italy, and France. This announcement follows the recent granting of a VASP license to the Dubai entity of crypto exchange Crypto.com, which is still awaiting operational approval

Bim Afolami takes the reins on UK crypto policy as new Economic Secretary

Bim Afolami has been appointed as the UK's new Economic Secretary to the Treasury, tasked with overseeing digital asset and central bank digital currency policies. His appointment, part of a government restructuring, was approved by King Charles II. CryptoUK intends to brief Afolami on crypto's role in the UK economy and regulatory challenges. The UK government is currently focusing on policies related to AI, fintech, and the metaverse, in preparation for the next general election expected before 2025​​​​.

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Innovation and Launches

Uniswap launches Android wallet app with built-in swap function

Uniswap Labs has released a new Android mobile wallet app on the Google Play store, featuring a built-in swap function. This app enables users to conduct swaps directly through the decentralized exchange (DEX) from within the app itself, removing the need for a separate web browser extension. Initially released in a closed beta on October 12, the Android version is now available to the general public, following the release of an iOS version in April. Uniswap, which has over $3 billion of crypto locked in its contracts, is governed by the Uniswap decentralized autonomous organization (UniswapDAO). Responding to user feedback, Uniswap made modifications to the app, including changing the location of the wallet address display for easier use and adding support for multiple languages. The Android app had been one of the most requested items by the Uniswap community, and high demand is anticipated.

OKX joins Komainu and CoinShares for institutional segregated asset trading

OKX, a crypto exchange, has joined forces with custody provider Komainu and asset manager CoinShares to offer institutional segregated asset trading. This partnership aims to mitigate counterparty risks and boost institutional adoption of digital assets. CoinShares will trade on OKX, while Komainu handles collateral asset custody, providing additional security for institutional traders and aligning with evolving regulatory frameworks in the crypto space​​​​​​​​​​.

OKX launches Ethereum layer-2 testnet using ZK-based Polygon CDK

OKX has launched a testnet for "X1," an Ethereum layer-2 network using the Polygon chain development kit (CDK), featuring zero-knowledge proofs for enhanced transaction validation. This network is part of the broader Polygon ecosystem and aims to scale Ethereum efficiently. OKX plans to use its token, OKB, for gas fees on the network. The development focuses on improving Ethereum scaling solutions and facilitating Web3 user onboarding with interoperable, user-friendly applications​​​​​​​​.

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NFT and Metaverse

Disney launches NFT platform with Dapper Labs

Disney, in collaboration with Dapper Labs, has developed an NFT platform named Disney Pinnacle. This platform will tokenize various iconic Disney and Pixar characters, as well as Star Wars heroes and villains, as collectible and tradable digital pins. Disney Pinnacle, built on the Flow blockchain created by Dapper Labs, is set to launch later this year on the Apple App Store, Google Play Store, and web. Currently, the platform is available for waitlist registration. This launch comes after Disney's earlier decision to shut down its metaverse division as part of a restructuring plan to reduce operating expenses and staff​​​​.

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Scams and Hacks

OpenSea NFT users report massive email phishing campaign

OpenSea users and developers are facing a large-scale email phishing campaign, with attackers sending emails containing malicious links and posing as OpenSea. This follows a security breach involving a third-party vendor that exposed user emails and API keys. OpenSea had previously experienced a phishing attack in February 2022 and has urged users to avoid clicking on suspicious links​​​​​​.

Cybersecurity team claims up to $2.1B in crypto stored in old wallets is at risk

The cybersecurity firm Unciphered has discovered a vulnerability named "Randstorm" in crypto wallets created using web browsers between 2011 and 2015. This issue could affect wallets from BitcoinJS and similar projects, potentially impacting $2.1 billion in assets across various cryptocurrencies, including Bitcoin, Dogecoin, Litecoin, and Zcash. Users with wallets from this period are advised to transfer their assets to newer wallets. The vulnerability is exploitable, but specific details have not been disclosed to avoid aiding malicious actors​​​​.

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Interesting Reads

IMF head: CBDCs can replace cash, help financial inclusion

IMF Managing Director Kristalina Georgieva advocates for the adoption of Central Bank Digital Currencies (CBDCs) to replace cash and boost financial inclusion. Speaking at the Singapore FinTech Festival, she highlighted the role of CBDCs in providing a resilient and low-cost alternative to private money, particularly in underbanked communities. Georgieva emphasized the need for robust technological infrastructure, including cross-border payment support and data protection, in CBDC implementation. The IMF is actively involved in developing crypto regulations and has released a CBDC virtual handbook, highlighting the sector's potential risks and opportunities​​​​​​.

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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.