Sebastian Sinclair

Auckland-based crypto exchange Dasset has reportedly gone into liquidation, leaving customers unable to access their funds.



Hundreds of customers have been locked out of their accounts, with some having tens of thousands of dollars worth of crypto trapped, local media The Herald reported Monday.



One customer said they had been trying to withdraw $40,000 — their entire life savings — from their account for three months but had been unsuccessful. Another customer said they had been direct-credited by the company&#8217;s CEO, Stephen Macaskill, but were still unable to access their account.&nbsp;



Macaskill said Dasset had been unable to gain a replacement banking provider after its incumbent provider pulled its service in January, per the report.



He said the company had gone into voluntary liquidation and that a liquidator had been appointed. However, a liquidator has not yet been appointed and customers are still unable to access their funds, <a href="https://www.nzherald.co.nz/business/customers-desperate-as-auckland-based-crypto-exchange-dasset-denies-access-to-their-funds/DNBZVIJTLFHJREG4KD3YOKUDTU/">The Herald</a> reported. New users are still able to sign up for the platform despite a halt to withdrawals.



Email addresses and phone numbers have been removed from the Dasset website, though a request form remains. A frequently asked questions page, which remains <a href="https://support.dassetx.com/hc/en-nz/articles/360000206516-Can-I-withdraw-New-Zealand-Dollars-from-Dasset-">live</a>, details how users can withdraw their funds.



Some users have reportedly been unable to access their funds since April — even for amounts as little as $5,000. The website doesn’t say how existing or new customers should handle withdrawals.



Blockworks has reached out to the exchange but has yet to receive a response. New Zealand&#8217;s Financial Markets Authority said it is aware of the situation and is investigating. The regulator <a href="https://www.fma.govt.nz/consumer/investing/types-of-investments/cryptocurrencies/#:~:text=Cryptocurrencies%20are%20high%20risk%2C%20speculative,yourself%20some%20level%20of%20protection.">previously warned</a> that crypto presents a “high-risk, speculative product” and that investors should be mindful of the risks involved.&nbsp;



Auckland-based Dasset exchange first chartered its beginnings during the height of the ICO bubble in 2017. Compared to major rivals <a href="https://blockworks.co/tag/binance">Binance</a> and <a href="https://blockworks.co/tag/bybit">Bybit</a>, Dasset remains a relatively small venue, <a href="https://coincodex.com/exchange/dassetx/">data shows</a>. 



It’s the latest in a series of problems to hit the domestic crypto market in New Zealand. In 2019, the crypto exchange Cryptopia collapsed, leaving customers with millions of dollars in losses.



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bankruptcy

New Zealand crypto exchange Dasset in liquidation, customer funds trapped

Katherine Ross

New Zealand still isn’t ready to commit to crypto regulation, the Reserve Bank of New Zealand said Friday.



It did, however, call for “increased vigilance&#8221; following a submission period that closed in April. The Reserve Bank received 50 submissions — from Ripple to Grant Thornton.



Following a period of submissions, the Bank published a paper to further detail its thinking on digital assets — including central bank digital currencies (CBDCs). According to the Atlantic Council’s stablecoin tracker, roughly 130 countries are exploring a CBDC.



In 2021, the bank <a href="https://www.rbnz.govt.nz/have-your-say/2021/future-of-money-central-bank-digital-currency">announced</a> that it was exploring a CBDC, but the paper reiterates that the bank has “not made any decision about the need for one.” 



On the topic of regulation, the Bank noted that submitters had suggested that crypto startups be allowed to “grow into regulation.” This could allow for “regulatory sandboxes” and a “tiered compliance approach.” The suggestions, though, don’t mean that New Zealand will pursue such a regulatory structure.&nbsp;



“Many submitters also said that RBNZ should err on the side of caution when it comes to regulation. This is because the sector’s growth trajectory remains uncertain, and regulatory developments are ongoing globally,” the paper <a href="https://www.rbnz.govt.nz/-/media/project/sites/rbnz/files/consultations/future-of-money/responses-to-private-innovation-submissions.pdf">said</a>. 



The submitters stressed that regulations must “remain sufficiently open and flexible so that they do not stifle innovation, and that regulators minimize unintended consequences from regulatory measures.”&nbsp;



The bank, in its response, says that it will continue to take a “cautious approach” as it watches global developments. There are “real advantages to harmonizing crypto asset regulation,” which could help the Bank decide on the “optimal regulatory design.”



“The submissions reinforce our view that there are significant risks and opportunities from stablecoins and other private money innovations, but also significant uncertainties about how the sector will develop and where the optimal balance will lie. We agree that caution is needed, which also reinforces the need for enhanced data and monitoring to build understanding,” Reserve Bank of New Zealand’s Ian Woolford <a href="https://www.rbnz.govt.nz/hub/news/2023/06/rbnz-ramps-up-monitoring-of-stablecoins-and-cryptoassets">said</a>. 



Despite the Reserve Bank’s caution on crypto regulation, <a href="https://blockworks.co/news/binance-charts-regulated-course-to-new-zealand">Binance expanded into New Zealand</a> in September 2022 after successfully registering with the business ministry.



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cbdcs

Reserve Bank of New Zealand taking ‘cautious approach to crypto,’ watching global developments

<div id="highlights-block_6336995d93f67" class="highlights">
 <ul>
 <li>New Zealand, with a population of 5 million, is considered a fintech pioneer by the exchange and its move there makes sense, Binance said</li>
 <li>Its expansion to the country follows its successful registration as a financial service provider with the country’s business ministry</li>
 </ul>
 
</div>



Binance has expanded its operations to New Zealand following a successful registration with the country’s business ministry earlier this month.



Binance New Zealand will join existing entities operating under the company’s name, including in Australia, Italy and more recently France. General manager Ben Rose, formerly of local software development firm CodeHQ will lead operations within the island nation.



The exchange and crypto infrastructure provider said the move to become a registered financial service provider with the Ministry of Business, Innovation and Employment made sense despite the country’s lower population and small domestic markets.



“A lot of major tech firms are slow to open a New Zealand office,” Binance founder and CEO Changpeng Zhao said in a statement. “I guess for some, it’s easy to overlook … but we see significant value in having a serious New Zealand presence.”



The island nation, situated east of Australia within the South Pacific Ocean, has a population of roughly 5.1 million, according to the latest national <a href="https://www.stats.govt.nz/information-releases/national-population-estimates-at-31-march-2022/" target="_blank" rel="noreferrer noopener">estimates</a>. Of that, roughly 268,000 Kiwis own crypto, with a 69% and 31% split between men and women, a <a href="https://www.finder.com/nz/finder-cryptocurrency-adoption-index#:~:text=Adoption%20Index%20Embed-,Age%20trends%20for%20crypto%20ownership%20in%20New%20Zealand,just%2016%25%20of%20crypto%20owners." target="_blank" rel="noreferrer noopener">Finder survey</a> shows.



<h3 class="wp-block-heading">A measured approach</h3>



Binance is looking to do things by the book after suffering multiple regulatory setbacks last year across varying jurisdictions.&nbsp;



Britain&#8217;s financial watchdog barred Binance’s UK arm from conducting any regulated activity in July 2021 while regulators across Europe also moved heavily against the exchange’s derivatives operations, forcing it to <a href="https://www.reuters.com/technology/crypto-exchange-binance-wind-down-futures-derivatives-offerings-europe-2021-07-30/" target="_blank" rel="noreferrer noopener">wind down</a> that section of its business across the region.



Germany, Hong Kong, Italy and Malaysia simultaneously ratcheted pressure last year over concerns Binance had not registered with appropriate authorities or otherwise, at the time, possessed weak anti-money laundering procedures.



It was revealed in a late 2020 request by the Justice Department&#8217;s money laundering section that it had asked Binance and its executives to hand over messages relating to the exchange&#8217;s detection of illegal transactions and recruitment of US customers, <a href="https://www.reuters.com/technology/exclusive-us-sought-records-binance-ceo-crypto-money-laundering-probe-2022-09-01/" target="_blank" rel="noreferrer noopener">Reuters reported</a> earlier this month.



Still, following the success of its early days, its infusion of cash and growth from trading activity has all but helped it expand to become one of the largest crypto companies in the world.



The measured entrance into New Zealand, as elsewhere, marks a somewhat different approach for the exchange hoping to move forward beyond doubts over its regulatory compliance.



And for locals on the ground, the move could translate into cheaper fees denominated in local currency.



“This is an exciting development for Kiwi investors and those with an interest in the future of Web3,” Rose said in the statement. “Kiwis can expect to have access to many exciting global product and service innovations happening in this space.”



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Binance

Binance Charts Regulated Course to New Zealand

Jacquelyn Melinek

<div id="highlights-block_615edee6cebe5" class="highlights">
 <ul>
 <li>Cameroon-based financial services platform Ejara has raised a seed round of $2 million led by Coinshares Ventures and Anthemis Group to help African people protect their money</li>
 <li>Easy Crypto’s funding will be used to expand into new customer markets in Southeast Asia and other Southern Hemisphere countries that have a need for products and services, she added. Janine Grainger, co-founder and CEO of the company told Blockworks</li>
 </ul>
 
</div>



<h3 class="wp-block-heading">Cameroon-based Ejara raises $2M&nbsp;</h3>



Cameroon Financial services platform <a href="https://www.youtube.com/watch?v=XHXEr13fdXQ">Ejara</a> has raised a seed round of $2 million led by Coinshares Ventures and Anthemis Group, the company said Thursday.&nbsp;



Other investors include Mercy Corps Ventures, Lateral Capital, LoftyInc Capital Management and NetX Fund, and a group of angel investors including CEO of Ledger Pascal Gauthier, Blockworks Co-founder Jason Yanowitz, and AngelList’s Socially Financed Fund.



“By 2030, Africa will represent one of the world’s largest economic regions, and despite having nearly 25% of the continent’s population, Francophone African startups have attracted less than 1% of the venture capital in the African tech scene,” Meltem Demirors, chief strategy officer at CoinShares said in a statement.&nbsp;



The company was founded in 2020 and is based in Francophone-Africa, specifically Cameroon, and tailors its platform for African markets. The name “Ejara” derives from Bambara dialect and means “lion,” which coincides with their mission to put the power in people’s hands, the company said.&nbsp;



The funding will be used toward expansion and growth strategies, Nelly Chatue-Diop, founder of <a href="https://www.ejara.io/">Ejara</a> said to Blockworks in an interview. Since its launch, the platform has grown 25% month over month for its user base and increased transaction volume by 35% during the same period, Chatue-Diop added.&nbsp;



“We want to expand as quickly as possible,” Chatue-Diop said. “We started with crypto but aim to add stocks and fractionalized stocks, commodities and bonds and US foreign ones. So we can grow quickly, we need more tech, growth and focus on support,” she said.&nbsp;



Ejara started out in Cameroon, but has diversified across the Ivory Coast, Burkina Faso, Mali, Guinea, and Senegal as well as the Francophone diaspora in Europe &amp; North America through its partnership with Moonpay, the company said.&nbsp;



The mission is all about protecting the African people’s money, Chatue-Diop said.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“It’s about protecting their wealth, diversifying their savings and growing their wealth. Historically, when you have savings in Africa, where do you invest? Banks give you 1% maybe, but you&#8217;re at the mercy of them closing and going away with your money,” she added.&nbsp;</blockquote>



A lot of Africans invest in real estate as a way to store their wealth, but when someone needs to abandon their homes and fly quickly out of their zone, they can’t take their real estate with them, Chatue-Diop noted. But, with platforms like Ejara, people can take their bitcoin and digital assets anywhere, she said.&nbsp;



“We are at the mercy of inflation, but diversifying into bitcoin and other assets will protect people against the debasement of their currency,” Chatue-Diop said.&nbsp;



<h3 class="wp-block-heading">Easy Crypto raises $12M to expand into Southern Hemisphere</h3>



New Zealand-based Easy Crypto closed its $12 million Series A round led by Nuance Connected Capital, the company announced Wednesday.



The lead investor in this round is sovereign-backed, meaning that the New Zealand government supports and funds Nuance Connected Capital and in turn, is indirectly supporting the crypto ecosystem, Janine Grainger, co-founder and CEO of Easy Crypto said in an interview with Blockworks. This was the company’s first fundraise and prior to this Series A, Easy Crypto was fully bootstrapped, she added.



The round was oversubscribed by fifty percent and includes investment from others, including a pension provider Pathfinder and Indonesia-based GDP Venture. Additionally, US-based Hutt Capital, Icehouse Ventures, Even Capital and Seven Peaks Ventures also participated in the round.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="946" height="635" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/2021-10-07-Easy-Crypto-co-founders-Janine-and-Alan-Grainger.png" alt="" class="wp-image-9068" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/2021-10-07-Easy-Crypto-co-founders-Janine-and-Alan-Grainger.png?w=946 946w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/2021-10-07-Easy-Crypto-co-founders-Janine-and-Alan-Grainger.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/2021-10-07-Easy-Crypto-co-founders-Janine-and-Alan-Grainger.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/2021-10-07-Easy-Crypto-co-founders-Janine-and-Alan-Grainger.png?w=383 383w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/2021-10-07-Easy-Crypto-co-founders-Janine-and-Alan-Grainger.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/2021-10-07-Easy-Crypto-co-founders-Janine-and-Alan-Grainger.png?w=326 326w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/2021-10-07-Easy-Crypto-co-founders-Janine-and-Alan-Grainger.png?w=80 80w" sizes="auto, (max-width: 946px) 100vw, 946px" /><figcaption>Easy Crypto co-founders Janine and Alan Grainger</figcaption></figure>



Easy Crypto is a retail platform founded three years ago by siblings Janine and Alan Grainger. The platform provides customers the ability to trade over 150 cryptocurrencies and has recorded over $750 million in sales and has multiplied its users over five times in the past year, the company said.&nbsp;



Currently, it is available in New Zealand, Australia, South Africa and Brazil, Grainger said. But the funding will be used to expand into new customer markets in Southeast Asia and other Southern Hemisphere countries that have a need for products and services, she added.