March 25, 2022 · 3 min read
The Weekly Wrap-Up - 25th March 2022
Thailand Bans Crypto Payments
Trading and Investment will Still be Permitted
The Securities and Exchange Commission of Thailand has announced that from April 1st onwards, accepting crypto as a form of payment will no longer be considered legal. Platforms and companies which accept crypto payments will have 30 days to cease doing so from the day the law becomes effective. The legislation was reportedly put into effect to prevent damage to the nation’s financial system.
For crypto investment however, the country has added a 7% tax exemption for traders using authorised centralised exchanges. The nation’s central bank is also exploring the possibility of launching its own CBDC (Central Bank Digital Currency).
South Korean Gaming Giant Krafton Partners With Solana
Billion Dollar Company Signs Deal With Solana Labs
On Wednesday, South Korean gaming company Krafton announced a partnership with Solana Labs - the creators of Solana (SOL). The partnership will involve Krafton creating metaverse and NFT-based games on the Solana blockchain. The company will also help Solana Labs direct metaverse gaming investment.
In 2021, Krafton generated $1.5B of revenue - a substantial amount of which was earned by publishing the popular battle royale game Player Unknown Battlegrounds (PUBG). Krafton’s Head of Web 3, Hyungchul Park stated:
Through this collaboration, Krafton will acquire the insight needed to accelerate its investment in and output of blockchain-based experiences.
Bank of England Signals Increased Stablecoin Regulation
UK Central Bank Hints At Tightened Rules
The Bank of England has stated that Stablecoins will likely need to come under increased regulation to avoid undermining public confidence in the pound sterling. Its FPC (Financial Policy Committee) stated that repercussions would be required if a “systemic stablecoin fails to meet its obligations”.
BOE also stated that it believed the risks posed to financial stability by cryptocurrency and DeFi to be relatively small. However, the FPC recommended that any digital asset performing a similar function to existing financial systems should be regulated to the same extent.
Solana Stablecoin Protocol ‘Cashio’ Protocol Hacked
More than $50M Worth of Assets Drained
On Wednesday, the Solana-based algorithmic stablecoin protocol was hacked with more than $50M worth of assets being stolen. The platform allows users to provide collateral in USDA or USDC to mint CASH tokens.
The hackers were able to exploit an ‘infinite mint’ glitch to mint 2 billion CASH tokens. Around half of these CASH tokens were redeemed for USDA and USDC, with the other half being sold on a decentralised exchange for around $25M. The hack has caused the CASH token to lose almost all of its value, with Cashio’s TVL (total value locked) falling from $29M to around $600K.