Sebastian Sinclair

<div id="highlights-block_6347bca2547e7" class="highlights">
 <ul>
 <li>Singapore is fast becoming a hub for crypto exchanges looking to gain a foothold across Southeast Asia</li>
 <li>Blockchain.com’s conditional approval is the second of its kind this week following Coinbase on Monday</li>
 </ul>
 
</div>



Crypto exchange Blockchain.com has become the second platform this week to receive approval in-principle for a crypto payments license from Singapore’s central bank.



Blockchain.com said its Major Payment Institution License, allows it to offer Digital Payment Token services under Singapore’s Payment Services Act, would allow it to grow its office in the Southeast Asian economy and expand its institutional base.



The move marks an <a href="https://cms.blockworks.co/https-blockworks-co-crypto-com_receives_approval/" target="_blank" rel="noreferrer noopener">increasing trend</a> for the city-state to green light exchanges looking to establish a foothold in the region. Blockchain.com became the second crypto exchange this week to get the nod following <a href="https://cms.blockworks.co/coinbase-secures-crypto-payments-license-in-singapore/">Coinbase’s approval on Monday</a>.



Singapore’s Monetary Authority (MAS), also its financial regulator, gave its blessing despite increased scrutiny against <a href="https://cms.blockworks.co/singapore-says-crypto-ban-for-retail-not-likely-to-work/" target="_blank" rel="noreferrer noopener">retail trading</a> of digital assets.&nbsp;



MAS has signaled its intention to continue working with businesses and larger industry players, while remaining wary of risks to retail investors.



The regulator is particularly interested in gauging whether or not DeFi can be used to improve wholesale borrowing and lending processes via <a href="https://cms.blockworks.co/singapore-central-bank-ready-to-try-defi-after-crypto-giants-leave-for-dubai/" target="_blank" rel="noreferrer noopener">public blockchains</a>, including Ethereum. The hope is to retain and attract industry talent as well as budding blockchain and crypto businesses.



Blockchain.com said it would use its license to continue servicing institutional and high-net-worth investors, as well as project teams and operators in the crypto ecosystem.



Conditional approval under the PSA allows the exchange to offer larger clients its services and products, including its institutional custody services.



In January 2020, the PSA ratcheted regulatory requirements for payment services operating in the city-state, including electronic payments and crypto-related exchange services.



As part of a list of 54 other entities granted exemption from licensure, Blockchain.com had been allowed to operate as a Digital Payment Token service provider prior to its approval.



While 160 entities are currently awaiting approval as Digital Payment Tokens under the PSA, a further 100 have been denied. Just <a href="https://eservices.mas.gov.sg/fid/institution?sector=Payments&amp;category=Major%20Payment%20Institution&amp;activity=Digital%20Payment%20Token%20Service" target="_blank" rel="noreferrer noopener">seven entities</a> have received a digital payment token license from MAS.



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Blockchain.com Scores Singapore License

Ornella Hernandez

<div id="highlights-block_630f9b55eda23" class="highlights">
 <ul>
 <li>Licenses provide open source codified versions of intellectual property rights</li>
 <li>Murky IP licensing has recently caused confusion regarding rights of NFT buyers</li>
 </ul>
 
</div>



Venture capital firm Andreessen Horowitz’ crypto arm, a16z, released six NFT-specific copyright licensing frameworks on Wednesday as part of a free and public set of “Can’t Be Evil” Licenses, in the style of <a href="https://creativecommons.org/">Cr</a><a href="https://creativecommons.org/" target="_blank" rel="noreferrer noopener">e</a><a href="https://creativecommons.org/">ative Commons</a>.



A blog post from Miles Jennings, general counsel at a16z, and Chris Dixon, a managing partner who founded a16z, <a href="https://a16zcrypto.com/introducing-nft-licenses/" target="_blank" rel="noreferrer noopener">stated</a> that the firm is addressing the existing ambiguity and confusion around NFT licensing.



Their aim is to clarify an NFT creator, buyer or seller’s rights regarding the artwork of digital assets in order to “democratize access to high quality licenses and encourage standardization across the web3 industry.”&nbsp;



The “Can’t Be Evil” set is meant to serve as a template for NFT projects to consider when creating and selling NFTs, <a href="https://a16zcrypto.com/wp-content/uploads/2022/08/Cant-Be-Evil-Licenses.pdf" target="_blank" rel="noreferrer noopener">according</a> to its Terms and Conditions.&nbsp;



The slate of open source licenses are based on US law and relate to copyright only, excluding other forms of intellectual property, including personality rights, stated the document. US copyright laws do not automatically grant buyers of both traditional and digital assets the right to reproduce, adapt or publicly display the artwork without a license.



The six options each outline different degrees of freedom intended to help creators protect or release their intellectual property (IP) rights, especially those enabling buyers to modify the artwork or create derivative works.



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="411" src="https://cms.blockworks.co/wp-content/uploads/2022/08/Screenshot-2022-08-31-at-19.40.25-1024x411.png" alt="" class="wp-image-29747" srcset="https://cms.blockworks.co/wp-content/uploads/2022/08/Screenshot-2022-08-31-at-19.40.25-1024x411.png 1024w, https://cms.blockworks.co/wp-content/uploads/2022/08/Screenshot-2022-08-31-at-19.40.25-300x120.png 300w, https://cms.blockworks.co/wp-content/uploads/2022/08/Screenshot-2022-08-31-at-19.40.25-768x308.png 768w, https://cms.blockworks.co/wp-content/uploads/2022/08/Screenshot-2022-08-31-at-19.40.25-1536x617.png 1536w, https://cms.blockworks.co/wp-content/uploads/2022/08/Screenshot-2022-08-31-at-19.40.25-2048x822.png 2048w, https://cms.blockworks.co/wp-content/uploads/2022/08/Screenshot-2022-08-31-at-19.40.25-428x172.png 428w, https://cms.blockworks.co/wp-content/uploads/2022/08/Screenshot-2022-08-31-at-19.40.25-470x189.png 470w, https://cms.blockworks.co/wp-content/uploads/2022/08/Screenshot-2022-08-31-at-19.40.25-389x156.png 389w, https://cms.blockworks.co/wp-content/uploads/2022/08/Screenshot-2022-08-31-at-19.40.25-80x32.png 80w, https://cms.blockworks.co/wp-content/uploads/2022/08/Screenshot-2022-08-31-at-19.40.25-50x20.png 50w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: <a href="https://a16zcrypto.com/introducing-nft-licenses/">a16zcrypto</a></figcaption></figure>



The Licenses were developed in partnership between a16z Crypto and the law firms Latham &amp; Watkins LLP and DLA Piper LLP. Available on GitHub, NFT projects are able to add a reference to a specific license directly into a smart contract.&nbsp;&nbsp;



The “Can’t Be Evil” title was inspired by Google’s “don’t be evil” slogan and puts the trust in the code, according to a16z



<blockquote class="wp-block-quote">“Instead of trusting people or corporations to not be evil, we can ensure through code that they “can’t be evil,” the company stated.&nbsp;</blockquote>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">can’t be evil &gt; don’t be evil&mdash; cdixon.eth (@cdixon) <a href="https://twitter.com/cdixon/status/1470223992757927936?ref_src=twsrc%5Etfw">December 13, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Creative Commons licenses have lately been put in the spotlight by NFT projects such as Moonbirds, whose founders recently <a href="https://cms.blockworks.co/from-moonbirds-to-cryptopunks-terms-of-service-are-changing/" target="_blank" rel="noreferrer noopener">moved to a Creative Commons Zero (CC0) license</a> and rescinded its holders’ commercial art rights without warning.&nbsp;



Yuga Labs-owned CryptoPunks and Meebits have also updated their terms and conditions to allow NFT holders to use the image of their NFT however they want, without permission from Yuga Labs, which legally still owns the rights and title of the art.



NFTs are, at their core, a piece of software code. It is quite common for the actual image or artwork to be stored off-chain on a remote server, while only the metadata is on-chain.&nbsp;



When an NFT is bought and transferred to a crypto address, the purchaser is only acquiring the metadata associated with the remote image, and not the actual content file. That’s why intellectual property rights are a murky subject.



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A16z Creates NFT Licensing Framework to Standardize Collectors’ Rights

<div id="highlights-block_622ffd7b3d87c" class="highlights">
 <ul>
 <li>FTX has been granted approval to operate crypto derivatives products to large clients within the emirate of Dubai</li>
 <li>The exchange provider is also looking to set up a headquarters within the emirate&#8217;s capital city of Dubai</li>
 </ul>
 
</div>



Major cryptocurrency exchange FTX has been granted a license to operate within the United Arab Emirates (UAE) and will now seek to establish a regional headquarters within the city of Dubai.



FTX is now clear to begin offering crypto derivative products to institutional clients in the city, leveraging a progressive virtual asset licensing regime overseen by the Dubai Virtual Assets Regulatory Authority.



Bloomberg first <a href="https://www.bloomberg.com/news/articles/2022-03-14/crypto-exchange-ftx-wins-license-and-plans-regional-hq-in-dubai#:~:text=Crypto%20Exchange%20FTX%20Wins%20License%2C%20Plans%20Regional%20HQ%20in%20Dubai,-By&amp;text=FTX%2C%20a%20major%20cryptocurrency%20exchange,the%20Dubai%20World%20Trade%20Centre." target="_blank" rel="noreferrer noopener">reported</a> the news Monday. In a statement published by the news outlet, FTX CEO Sam Bankman-Fried said his company would offer “complex crypto-derivatives products&#8221; with &#8220;centralized counterparty clearing to institutional markets.&#8221;



It&#8217;s another major win for the exchange provider which is attempting to broaden its services outside the US. Last week, FTX consolidated its European operations under its <a href="https://cms.blockworks.co/ftx-europe-launches-in-switzerland-emphasizing-regulatory-compliance/" target="_blank" rel="noreferrer noopener">FTX Europe</a> umbrella to serve clients on the continent and across the Middle East.



At the same time, the emirate of Dubai, which is one of seven others within the UAE, adopted its <a href="https://www.reuters.com/world/middle-east/dubai-adopts-first-law-governing-virtual-assets-ruler-2022-03-09/" target="_blank" rel="noreferrer noopener">first piece of crypto legislation</a> — the Dubai Virtual Asset Regulation Law — and established a watchdog to monitor the budding sector.



That law seeks to establish crypto governance throughout the emirate and its free zones with the exception of the Dubai International Financial Center, which is overseen by another regulator, the Dubai Financial Services Authority.



Previously, obtaining a license for crypto services in Dubai required filing an application to the government entity Dubai Multi Commodities Centre (DMCC). Established in 2002, the DMCC is a free zone aiming to boost commodity trade flows into the city.



Certain <a href="https://prifinance.com/en/cryptocurrency-license/uae/" target="_blank" rel="noreferrer noopener">benefits</a> for setting up shop within the DMCC include zero corporate income tax for the first 50 years, no limits on the transfer of income of a company and no limits on foreign employment. It is unclear where the proposed headquarters will be established in the city. FTX did not immediately respond to a request for comment.



Rival exchange Binance, the world&#8217;s largest crypto platform by trading volume, has also been pushing to establish a foothold in the Middle East and has reportedly been <a href="https://www.bloomberg.com/news/articles/2022-03-14/binance-wins-exchange-s-first-gulf-crypto-license-from-bahrain" target="_blank" rel="noreferrer noopener">green-lit</a> to begin offering its products under the newly established law.



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