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All the emerging market web3 news you need in less than 5 minutes
In This Issue
Asia
•CYBERSECURITY: Iranian hackers infiltrated US government computers to mine crypto
•BLOCKCHAIN: Offshore yuan added to HSBC and Wells Fargo blockchain-based foreign exchange system
Africa
•FTX SAGA: Nigerian web3 startup loses funds held on FTX, lays off staff
•FUNDRAISING: VC platform launches $75 million Africa blockchain fund
Latin America & The Caribbean
•CBDC: Brazil’s digital real will be the bridge between TradFi, crypto, and DeFi
•FTX SAGA: The company wasn’t hacked, regulators seized their assets
Eastern Europe
•METAVERSE: Your next Ukrainian wedding (and divorce) may be in the metaverse
•SANCTIONS: Russia and Cuba considering mutual settlement in cryptocurrencies due to US sanctions
Asia
CYBERSECURITY: Iranian hackers infiltrated US government computers to mine crypto (4 minute read)
Nemesis Kitten, an Iranian government-affiliated hacking group, infiltrated the systems of the US Merit Systems Protection Board (MSPB) and installed cryptocurrency mining software. The hackers exploited the Log4Shell vulnerability in an unpatched VMware Horizon server that the Cybersecurity and Infrastructure Security Agency (CISA) warned about late last year. CISA issued an alert last week saying that MSPB computers were compromised as early as February 2022.
BLOCKCHAIN: Offshore yuan added to HSBC and Wells Fargo blockchain-based foreign exchange system (2 minute read)
Banking giants HSBC and Wells Fargo announced last week that their blockchain-based system to bilaterally settle foreign exchange will include offshore yuan (CNH). The offshore yuan is the 5th currency to be settled between the two banks that also includes the US dollar, Canadian dollar, British pound, and the euro. Since December 2021, the shared distributed ledger technology system has settled over $200 billion in transactions between the two banks
Want more Asia news?
•The global ambitions of Partior, the JP Morgan, DBS blockchain payment system
•ADGM Academy Launches School of Digital Assets With Binance Academy to Expand Blockchain Education in the Region
•Terra cofounder Daniel Shin’s Chai Corp. raided by S.Korean authorities
•Metaverse Could Contribute to $1.4tn a Year to Asia GDP
•SBI, ICICI, IDFC, HDFC, Yes Bank in RBI’s list for digital currency pilot
Africa
FTX SAGA: Nigerian web3 startup loses funds held on FTX, lays off staff (3 minute read)
Nestcoin, a Nigerian web3 startup, has lost about $4mm of its stablecoin investment held on FTX that was used for day-to-day operations, representing nearly all of the remaining funds the company raised. Nestcoin will cut at least half of its staff, remaining employees will take a 40% pay cut, and its CEO will receive no compensation. The company said that they never held customer funds and the FTX collapse had no impact on their customers financially.
FUNDRAISING: VC platform launches $75 million Africa blockchain fund (3 minute read)
Middle East and North Africa focused venture platform, Modus, has launched a $75mm sustainable development goal-focused fund that will invest in Africa-based startups. The fund will close in Q1 2023 and will invest in 45 startups at the seed+ stage. Although the fund is sector agnostic, Modus said it will focus primarily on early-stage blockchain and AI startups.
Want more Africa news?
•Crypto Sees the Lowest KYC Fraud in Africa in H1 2022, Reveals Latest KYC Report
•Adverse effects and challenges the Metaverse brings to Africa
•The Capital Markets Authority of Kenya Highlights Key Reasons Why Crypto Startups Struggle to Scale in Kenya
Latin America & The Caribbean
The Director of Regulation at the Central Bank of Brazil, Otavio Damaso, provided an update last week that the first digital real tests will begin in 2023. The Director also emphasized the importance of Brazil’s CBDC will play in its economy, stating that “it will be the main link between traditional finance and decentralized finance.” Brazil’s central bank has been bullish on cryptocurrencies, blockchain, and DeFi, believing that the technologies will be able to expand financial inclusion and create new opportunities for the Brazilian financial system.
FTX SAGA: The company wasn’t hacked, regulators seized their assets (2 minute read)
What was initially believed to be a hack, it was the Securities Commission of the Bahamas that had seized the digital assets of FTX’s Bahamas unit and ordered the transfer of assets to a digital wallet it controlled. During the hacking investigation, it was revealed that co-founders Sam Bankman-Fried and Gary Wang made “unauthorized” transfers at the direction of the Bahamian government. FTX’s US restructuring team will challenge the Bahamian liquidators in court this Tuesday to get clarity on which courts should control FTX’s bankruptcy.
Want more Latin America & Caribbean news?
•Bitcoin Cash Could Be Legal Tender in St. Kitts by March, Prime Minister Says
•Itaú will offer custody service for Bitcoin, cryptocurrencies and tokens (Portuguese)
•Singapore-Based Crypto Exchange Bitget Opens Operations in Brazil
•El Salvador to Start Buying 1 Bitcoin Every Day Says President Bukele
•Banco do Brasil announces strategic investment in Bitfy (Spanish)
Eastern Europe
Ukraine’s Ministry of Digital Transformation is exploring the possibility of allowing marriages and divorces in the metaverse. During the Kyiv International Economic Forum, Deputy Prime Minister and Minister of Digital Transformation of Ukraine, Mykhailo Fedorov, said, “Our mission is to make the most convenient country in the world in terms of public services…We already have several MVPs (Minimum viable products) in the direction of the metaverse where we want to start providing services…[including] the possibility of getting married [and] divorced.”
SANCTIONS: Russia and Cuba considering mutual settlement in cryptocurrencies due to US sanctions – State Media (2 minute read, original article in Russian)
During the 38th International Diversified Exhibition and Fair in Havana, Boris Titov, Russian Commissioner for the Protection of the Rights of Entrepreneurs, announced that Russia and Cuba will consider settling trade in both cryptocurrencies and rubles. Both countries are under US sanctions. The International Diversified Exhibition and Fair is the largest trade and industrial forum in the Caribbean and was attended by representatives of companies from more than 60 countries, including Brazil, Venezuela, Spain, Italy, Canada, China, Mexico, Russia, and France.
Want more Eastern Europe news?
•A program for the implementation of Web3 technologies was presented in Ukraine (Russian)
•Turkey’s financial authority investigates FTX’s collapse
•Gate.io Debuts GateTR at Istanbul Blockchain Week 2022, Accelerating Global Expansion
•Ukrainian Web3 charity fund is auctioning off “Woman Yelling at a Cat” meme as an NFT
•Bill to allow miners to sell cryptocurrency in Russia under special regime
Thanks for reading and have a great week ahead!
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Written by Jon Lira. Connect with him on LinkedIn and Twitter.
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