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Friday, March 4, 2022

Cryptocurrencies not recognised as legal tender in Malaysia

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Cryptocurrency Not To Be Considered 'Legal Tender'; Centre To Treat It Like Stocks & Bonds

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Legal Tender? The Regulation of Cryptocurrencies

Cryptocurrencies will never become legal tender

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Demystifying Crypto: Digital Assets and the Role of Government

 

Cryptocurrencies not recognised as legal tender in Malaysia, says deputy minister

 ‘Cryptocurrencies not recognised as legal tender’ 

Useful assets:Although digital assets are not recognised as legal tender, Yamani added it still has many different usage including as a class asset that can be invested in

 

Cryptocurrencies are still not recognised as legal tender in Malaysia as they do not exhibit characteristics of universal money, says Deputy Finance Minister II Yamani Hafez Musa.

Yamani said cryptocurrencies, also known as digital assets, are also not a payment instrument that is regulated by Bank Negara.
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“Digital assets such as bitcoin and Ethereum are not suitable to be used as a payment instrument as these assets do not exhibit characteristics of money.
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“In general, digital assets are not a store of value and a good medium of exchange.
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“This is due to the state of digital assets which is exposed to volatility as a result of speculative investments,” he said when replying to a question raised by Nurul Izzah Anwar (PH - Permatang Pauh) in Dewan Rakyat on Thursday (March 3).
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Nurul Izzah had asked about the government’s role in monitoring and regulating currency as well as cryptocurrency assets.
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She also asked if the government had any plans to create digital currency taking into account Bank Negara’s involvement in Project Dunbar for international money transfers using blockchain technology.
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In explaining the volatility of cryptocurrency, Yamani said bitcoin hit a peak of US$65,000 (RM272,382.50) in April 2021 but quickly saw a decline of 50% the following week.
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He also said cryptocurrency is exposed to the risk of theft in which statistics from 2011 to 2021 showed that digital assets worth US$12bil (RM50.29bil) have been stolen through cyberattacks and hacking.
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He added that bitcoin is also only able to process 10 transactions per second compared to 65,000 transactions per second on current payment systems such as Visa.
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“Also, what is important is the huge impact on the environment because the electrical power that is used to process one bitcoin transaction can process 1.2 milliob visa transactions.
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In 2020, the bitcoin network used 132 terra-watts per hour which is equivalent to the entire electricity consumption of Argentina,” he said.
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Yamani added that currently, Bank Negara has also not decided to issue a central bank digital currency (CBDC) as the country’s domestic payment systems including the Real-time Retail Payments Platform continues to operate safely and efficiently to support Malaysia’s economic needs and allows real-time digital payments.
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“Additionally, the monetary policy tools and existing finances also remain effective in maintaining monetary stability and the country’s finances,” he said.
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Although digital assets are not recognised as legal tender, Yamani added it still has many different usage including as a class asset that can be invested in.
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As such, he said the Securities Commission (SC) as the market regulator has set digital assets as a security under the law and is responsible to regulate its trading activities.- 

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 China's Bitcoin trading plunges to 10% of global share from 90%: central bank

China's Bitcoin trading has plunged to 10 percent of global share from 90 percent, and the country has effectively curbed the speculation of crypto currency trading as part of an effortto fend off domesticfinancial risks and restore financial order, the central bank said on Thursday.

Tuesday, March 1, 2022

Shocking! MACC officers posed as TNB meter readers were paid in bribes as string cripples Bitcoin syndicates

Sting operation on bitcoin-mining power theft racket nets 18 suspects

Eighteen people have been arrested in relation to the bitcoin mining syndicate busted by a joint sting operation involving Tenaga Nasional Bhd (TNB) and the Malaysian Anti-Corruption Commission (MACC).

MACC stings bitcoin miners


Open sesame A fireman breaking open a reinforced door at one of the Bitcoin mining centres. The raiding team had to break two more such doors before they could enter the premises.
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Electricity stealing spree comes to an end as Macc finally takes action

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In the three years that MACC officers posed as TNB meter readers, they were paid a whopping Rm2.4mil in bribes. The Bitcoin mining syndicates were raking in much more – about Rm50mil a month – but this is about to end soon. JAYA: It was a sting operation that began three years ago during which time MACC officers disguised as TNB meter readers were paid Rm2.4mil in bribes.
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Some were even offered Bitcoin – a first for graft busters – to turn a blind eye to the power theft by mining syndicates.
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The masterminds could afford this. They were raking in a whopping Rm50mil a month from their 1,000-odd premises nationwide.
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Yesterday, the anti-corruption officers crippled much of their activities by conducting simultaneous raids in Malacca, Negeri Sembilan, Kedah, Penang, Kuala Lumpur and Selangor. But it wasn’t easy.
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“It took us an hour to break open two doors at each premises,” a source close to the investigation revealed.
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“And then, there were three more vault-like doors to cut through before we could enter one of the premises,” the source said.
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“We had to seek the help of the Fire and Rescue Services.”
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Dozens of suspects were arrested, including the heads of the syndicates. More than 200 Bitcoin mining machines were also seized in yesterday’s raids that involved dozens of Tenaga Nasional officers.
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“Some 350 MACC officers were involved in the probe,” said the source.
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While it is not illegal to mine Bitcoin, power theft is.
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This is done because running such an operation requires dozens of computer servers that would be in operation around the clock.
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“This would require huge amounts of electricity,” said the source.
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“The amount of electricity stolen at each premises could amount to RM40,000 per month,” added the source, saying that the syndicates earned around RM50,000 from every premises.
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“If they had paid their electricity bills, they could still make a profit because most of them own dozens of premises each,” the source explained.
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“But, greed got the better of them.”
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Bitcoin mining uses sophisticated computer software to try to solve complex mathematical problems to unlock a “key” that will enable a new Bitcoin to be produced.
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The Bitcoin market is highly volatile. Its value fluctuated from RM160,000 to RM277,000 in a month.
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A MACC spokesman confirmed yesterday’s raids.
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Yesterday, The Star reported that Bitcoin mining operators were reaping in millions at the expense of the public.
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Local communities, including hospitals, that shared the same power source as the mining premises, were being deprived of supply.
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Some buildings located near the Bitcoin mining premises experienced power outages often, with some burning to the ground.
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It is understood that the graft busters began the sting operation following a sharp increase in losses incurred by the country due to electricity theft.
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“Each premises owns around 80 to 120 Bitcoin machines.
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“They bring in these machines from China via Port Klang. They declare it as computer equipment,” the source said.
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Investigations are being conducted under Sections 16 (b) and 17 (b) of the MACC Act 2009 and if convicted, the guilty face a maximum imprisonment of 20 years and can be fined not less than five times the value of the bribe or RM10,000, whichever is higher.
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On Jan 24, Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan said the country lost more than Rm2.3bil in bitcoin mining activities – an increase of 400% over the past four years.
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By ALIZA SHAH alizashah@thestar.com.my

 

Busting bitcoin bribers

 

On the watch: A TNB officer checking on a bitcoin mining premises.

 `MACC zeros in on miners who pay meter readers to look the other way


PETALING JAYA: Bitcoin mining operators running their operations on stolen electricity and bribing electricity meter readers to help them hide their actions will soon have to pay the piper.
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The Malaysian Anti-corruption Commission (MACC) is zooming in on them and their crime which is causing financial losses in the billions of ringgit.
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“Graft-busters have been looking at dozens of such operators and they are expected to make their move anytime now,” revealed sources with knowledge of the investigation.
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It is learnt that these operators, who have branched out to every state in Malaysia, are even willing to pay up to a quarter million ringgit as bribes to meter readers to look the other way and give them a miss.
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While it is not against the law to mine bitcoin, running such operations requires dozens of computer servers working on a 24-hour basis, which requires huge amounts of electricity.
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Many are not paying their dues and are instead stealing electricity by illegally tapping into power sources or tampering with the meter.
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In an interview with The Star, sources said that in addition to cash, these syndicates even offered bitcoin, or cryptocurrency, as bribes.
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The authorities, they added, kickstarted their on-ground investigation a few years ago following the sharp increase of losses incurred by the country due to electricity theft by bitcoin miners.
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It is understood that the investigations are currently being conducted under Sections 16 (b) and 17 (b) of the MACC Act 2009, which stipulates that giving or offering bribes is equal to the offence of accepting bribes.
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If convicted, the person faces maximum imprisonment of 20 years and can be fined not less than five times the value of the bribe or RM10,000, whichever is higher.
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However, enforcers face several challenges in thwarting these illegal activities, especially since these premises are usually as tightly sealed like as a war-time bunker.
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On Jan 24, Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan said the country had lost more than Rm2.3bil in bitcoin mining activities – an increase of 400% over the past four years.
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The number of cases has also drastically increased year-on-year.
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In 2018, there were 610 cases while there were 1,043 cases in 2019, 2,465 cases in 2020 and 3,091 cases in 2021, totalling 7,209 cases.
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By ALIZA SHAH alizashah@thestar.com.my

 

Syndicate’s greed ravaging local communities 

 

Fire hazard: The energy intensive mining activities of bitcoin machines that run 24/7, can lead to power outages, damage to electrical appliances and worse – potential fires. — Photo courtesy of TNB


PETALING JAYA: Bitcoin mining operators running on stolen electricity are reaping in millions at the expense of the public.
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Sources said the syndicates behind the operations were depriving the local communities – including critical sectors such as hospitals which shared the same power source – of their supply.
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The energy intensive mining activities of bitcoin machines that run 24/7, can lead to power outages, damage to electrical appliances and worse – potential fires.
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“Each premises is loaded with mining machines and the operators rely on air conditioning to help cool the equipment.
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“So, their electricity bills can go up to RM40,000 per month for each premises but their profit is just slightly above the amount.


CLICK TO ENLARGE`
CLICK TO ENLARGECLICK TO ENLARGE

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“That is why they have no choice but to operate using illegal sources (of electricity),” the sources told The Star.
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The Star learnt that some buildings located near these bitcoin mining premises had experienced power outages, with some even burning to the ground.
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“These bitcoin mining premises often use fuses that do not adhere to safety standards and load, exceeding the capacity of the cables. So, unfortunately for their ‘neighbours’, when the fire breaks out, they are also affected.
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“There were instances where reports were lodged over power outages at dialysis centres and clinics and upon investigation, authorities found that these were due to bitcoin mining premises illegally tapping into the power,” said the sources.
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It is understood that some of these bitcoin mining operators own hundreds of premises.
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“Bitcoin mining” is a process of using sophisticated computer software to try to solve complex mathematical problems to unlock a “key” to produce a new bitcoin.
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The first bitcoin miner to solve the puzzle is rewarded with a bitcoin.
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Only one miner can add a new block to the blockchain every 10 minutes by solving the puzzle and to maintain a competitive advantage, many operators would scale up or upgrade their equipment to run round the clock.
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A study in the United States suggested that a single bitcoin transaction required 2209.41 kilowatt per hour (kWh), which was equivalent to 75.73 days’ worth of power consumed by an average household in the country.
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The bitcoin market is highly volatile, with its value having fluctuated from more than RM277,000 in October to over RM160,000 this month.

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MACC stings bitcoin miner

 

Tools of the trade: (From left) energy commission ceo abdul razib dawood, azam and Baharin looking at the seized computer hardware at the Macc headquarters in Putrajaya.

 

18 nabbed and rm4.5mil frozen after three-year Op Power

The masterminds behind a multimillion ringgit bitcoin mining syndicate are among 18 individuals arrested by the Malaysian Anti-corruption Commission (MACC), following a threeyear sting operation codenamed Op Power.

MACC chief commissioner Tan Sri Azam Baki said the 18 individuals arrested are all Malaysian males aged between 30 and 60.

“We confiscated 1,157 bitcoin (mining) machines worth Rm2.3mil in total.

“A total of Rm4.5mil was frozen from bank accounts linked to 94 individuals and 29 companies.

“The MACC also seized RM281,180 in cash, RM82,000 in ewallet balances and some US$25,893.46 worth of cryptocurrencies.

“Five vehicles, including a BMW, Toyota Vellfire and an Audi, have also been seized,” said Azam at a press conference at the MACC headquarters here.

Azam added that the MACC is looking to arrest another five individuals with links to the case, but this has been put on hold as the suspects have currently tested Covid-19 positive.

The Star on Sunday and Monday reported on a sting operation that began three years ago during which MACC officers posing as TNB meter readers were paid Rm2.4mil in bribes.

Azam said the syndicate operators offered between RM3,000 and RM300,000 to TNB officers to help cover up their operations.

The syndicate was found to have used special devices to manipulate power usage to ensure that their operations used as little electricity as possible.

Azam said that while cryptocurrency mining is not illegal, power theft is a crime.

TNB chief executive officer Datuk Baharin Din, who was also present at the press conference, said the syndicate used sophisticated methods for their illicit operations.

“The quantum of the power volume that this syndicate has stolen is very large, and it was done continuously for 24 hours and 365 days. This went on for over three years.

“The technique the syndicate used to tamper with the power usage is quite sophisticated.

“You come across small households that try to steal power, but these people go way beyond that.

“To do what they did, you have to be very competent.

“So we are very thankful to the MACC for their big help in this operation and because of them, we managed to stop this syndicate,” said Baharin.

 By JOSEPH KAOS Jr joekaosjr@thestar.com.my

 

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Billed RM695,598 for electricity; beware of illegal cryptocurrency/Bitcoin mining operations

 Billed RM695,598 for electricity

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Environmental impact of cryptocurrency

 

Bitcoin, digital currencies rally, caution prevails; virtual currency in property 

 

Bitcoin: Utter pipedream

Corruption & incompetence as a result of corrupt policies that breed corruptions & incpmpetency as Malaysia fails in graft index?

US' human rights situation worsened in 2021: report

 

US human rights 

 

China's State Council Information Office on Monday issued the Report on Human Rights Violations in the United States in 2021. The report said the human rights situation in the US, which has a notorious record, worsened in 2021 as political manipulation led to a sharp surge in COVID-19 deaths, and shooting deaths in the country hit a new record.
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The report revealed that despite having the world's most advanced medical resources, the US has the biggest number of COVID-19 infections and deaths globally. But the US government isn't rethinking its approach and still lacks effective anti-epidemic plans. Instead, it stoked the origins-tracing of COVID-19, and has been keen on passing the buck, shifting the blame and political manipulation.
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The public security situation in the country also deteriorated and violent crimes remained prevalent. There were 693 mass shootings in 2021, up 10.1 percent from 2020. More than 44,000 people were killed in gun violence, according to the report. 

 US human rights violations in 2021. Graphic: GT
US human rights violations in 2021. Graphic: GT

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The report also highlighted the country's growing discrimination against ethnic minority groups, especially people of Asian descent with around 81 percent of Asian American adults saying violence against Asian communities is rising.
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Unilateral US actions created new humanitarian crises across the globe, the report noted. A US drone strike during US' withdrawal of troops from Afghanistan killed 10 members of an Afghan family, including seven children, among which the youngest was only two years old.
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The report pointed out that in 2021, the US public persona of "human rights defender" was totally debunked as the so-called "Summit for Democracy" under the guise of safeguarding human rights became a farce. At the 48th session of the United Nations Human Rights Council, many countries blasted the US for being the "biggest destroyer" of human rights in the world and urged the country to address its own human rights violations.
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It's universally acknowledged that the US has a big human rights problem. The problem is characterized by racial discrimination, the lack of respect for the disadvantaged, the disparity between the rich and the poor, and the number of shooting deaths every year, Li Haidong, professor at the Institute of International Relations of the China Foreign Affairs University, told the Global Times on Monday.
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So when the US talks about human rights issues in other countries, it must have a clear understanding of its own human rights situation, Li urged. But the tragedy is that the politicians in the country always turn a blind eye to US' poor human rights record and pretend to be "teachers on human rights" in the international community, said Li. He added that the US has no qualification and pointed out the fact is that chaos on human rights in other countries and regions have often been brought by the US.
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On the human rights issue, the US should learn to communicate with other countries and regions on an equal footing, instead of imposing its own standards on them, Li urged.
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Chinese observers also criticized the US of weaponizing human rights to smear and attack other countries and regions, saying it is a despicable act.

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MOST VIEWED
 

Sunday, February 27, 2022

US’ real strategic color of selfishness, hypocrisy revealed in Ukraine crisis

Illustration: Liu Rui/GT 


 

 Click here to stay tuned with our live updates on Ukraine tensions.

 

Since dramatic changes took place in Ukraine, the US, which had repeatedly promised to protect Kiev at critical moments and continued to "add fuel to the fire" of the situation, has once again come into the spotlight. Ukrainian President Volodymyr Zelensky in a video speech complained that Western countries have abandoned Ukraine and left it to defend itself alone. Some Western netizens even asked: Where has the US been which provoked the war and said it "stands with Ukraine?"
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However, has the US really disappeared? On the contrary, it is quite busy gaining more "strategic interests" from the flames of war in Ukraine. The latest remarks by the US on the Ukraine situation released by the White House have underlined two points: First, turning Russia into "a pariah on the international stage" through sanctions and other measures; second, NATO has been "more united and more determined than ever" and this is "good news."
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As for Ukraine, which Washington uses as a pawn, in addition to reiterating that the US wouldn't send troops there, Washington only simply said it "will support the Ukrainian people as they defend their country," and "will provide humanitarian relief to ease their suffering." Washington has once again displayed its selfishness and hypocrisy to the world. People have seen that after the US pushed Ukraine into the fire, it stood aside, pretending to care about the country and saying "I support you, keep fighting!"
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It is fair to say the evolution of the situation in Ukraine until today is a geopolitical tragedy. From the very beginning, it's a bitter result of the US' strategic selfishness and shortsightedness. As early as 1998 when the US Senate approved NATO's eastward expansion plan, the late senior US diplomat George Kennan had foreseen today's tragedy. He said then, "This expansion would make the Founding Fathers of this country turn over in their graves."
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However, the arrogant American elites always think they can profit from crises. For years, the US has incited conflicts, manipulated the situations from offshore and reaped benefits. It is accustomed to be the one who adds the fuel to the fire without paying any cost. What it wants is to realize its instant interests. The US shows no consideration for the suffering of the locals pushed into the forefront. When there is a real crisis, the so-called commitments it initially made will only become empty diplomatic rhetoric. Those politicians don't care about the suffering of local people at all, but attempt to attract attention under the guise of "humanitarianism."
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This reminds people of when it abandoned the former Afghan regime last year, the US also said on multiple occasions it would provide "humanitarian" assistance to Afghanistan. But shockingly, the reality is that the so-called US "humanitarian" assistance hasn't been provided to the Afghan people, but the US carved up the $7 billion in frozen funds that Afghanistan's central bank had deposited in New York. As the culprit of the Afghan issue, after satisfying its own strategic interests, the US only left the locals "an avalanche of hunger and poverty," leading to the severe malnutrition of millions of children in Afghanistan.
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The US often talks about humanity, justice and morality, but what it really does is calculating interests. Washington's strategic selfishness and hypocrisy have been laid bare again and again in international political practices. Reports indicate that at least 37 million people have been displaced in and from Afghanistan, Iraq, Pakistan, Yemen, Somalia, the Philippines, Libya and Syria as a direct result of the wars fought by the US since September 11, 2001. There is even a saying that wherever the US "intervenes," conflicts, chaos and terrorism will appear.
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A country is called a major power not because of how strong its ability to form cliques or to realize its own self-interests is. What matters is its responsibility and ability to safeguard international peace. If a country only cares about its own interests, fuels the flames everywhere and constantly exports chaos to others, no matter how powerful it is, it is inevitable its credibility will go bankrupt and its hegemony will come to an end.
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For countries and regions that still have fantasies or act as pawns of the US, the Ukraine crisis is a good reminder: A "partner" who announces "good news" when you are in difficulties is untrustworthy

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Checkmated over Ukraine; Is Ukraine a metaverse nightmare?

 Cornered: Ukrainian armoured vehicles blocking a street in Kyiv as Russian troops stormed toward Ukraine’s capital on Saturday. – AP Nato's actions have made it's Western allies incapable of doing better for Ukraine than Ukraine can do its own relations with Russia

WHEN the wilfully unstoppable force of Nato expansion hits the steadfastly immovable object of Russian national security, war erupts.
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By February 24 when Russian tanks rolled into Ukraine, Moscow’s challenges became exposed and grew more acute.
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Russia cannot hold Ukraine in any sense as resentment to its incursion swells. There can be no assurance Russia can succeed in whatever it seeks to do to Kiev.
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As in all military interventions, moving in is always easier than pulling out – which must eventually happen. And then what?
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All disputes must conclude in negotiations, especially between neighbours, and it is now harder to negotiate. Meanwhile Russia is cast as the sole villain, so an invasion could not have been its preferred option.
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As a power play it is a tragedy of Shakespearean proportions and superpower dimensions. Ukraine and Nato may have top billing but the US and Russia are the key actors.
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The 1947 Dunkirk Treaty between Britain and France was a contingency agreement against German or Soviet aggression. This grew to include the Benelux countries and then the US and six others to become today’s North Atlantic Treaty Organisation.
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By 1955 Nato expanded to include WWII foe Germany, leaving the Soviet Union out in the cold. Moscow then established its Warsaw Pact alliance in trying to achieve some balance.
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Since then, Moscow stayed in Nato’s sights on the other side of the fence. Nato’s first Secretary-General Hastings Ismay described its role as “keeping the US in, Germany down, and Russia out.”
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Nato is a Cold War device that was not dismantled after the Cold War but has instead grown. But the official rhetoric in the early 1990s was of consolidation with a few contemplating dissolution.
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As the Soviet Union was collapsing in 1991, Nato officials from the US, Britain, France and Germany repeatedly assured Moscow that Nato would not expand. Nato had become the most serious organised challenge to Russian national security.
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US Assistant Secretary of State Raymond Seitz said expansion of membership would not happen “either officially or unofficially.” His British counterpart added that expansion was “unacceptable”.
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German Chancellor Helmut Kohl and Foreign Minister Hans Dietrich Genscher agreed and said so. Then Nato’s expansion happened.
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When Russia complained, Nato stalwarts said any agreement was only verbal and not written down, implying that what they said could not be trusted. Later Nato claimed there had not even been a verbal agreement.
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Earlier this month Germany’s Der Spiegel newspaper reported that Prof Joshua Shifrinson of Boston University had found a declassified document confirming that a pledge on Nato’s non-expansion had been made. Elsewhere it is reported that President Bill Clinton broke that pledge.
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In 1999, Nato expanded by including former Soviet bloc countries Poland, Hungary and Czechia. Russia seethed but could do little.
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In 2004, Nato expanded further by admitting former Soviet republics Estonia, Latvia and Lithuania. Russia complained again but once more its security concerns were ignored.
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As Nato missiles aimed at Russia moved closer to its borders, Moscow protested but Nato said they were only there because of Iran. Russia was unconvinced.
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After Ukraine’s independence its government continued friendly relations with Russia. But the US engineered the 2004-05 Orange Revolution that toppled the government and replaced it with one closer to the West.
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France and Germany invaded Russia in the 19th and 20th centuries with each attack ending in disaster. Napoleon’s and Hitler’s forces nonetheless made damaging incursions into the Russian heartland and national psyche.
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Today France and Germany are among European nations careful in managing relations with Russia. However, a US-led Nato with less experience and less sensitivity to Russian security concerns has acted with less care.
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Russia remains the world’s largest country by area rich in natural resources like oil and gas. It is not a threat to Europe or even Ukraine if agreements made can be honoured, but provoking it can produce a different result.
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Using Nato to challenge and undermine Russian interests will not end well for anyone. US interests are protected with the Atlantic Ocean as buffer, but European members of Nato share a continent with Russia and would have different priorities.
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The UN wants Russian forces to withdraw from Ukraine and return to base almost as much as Russia wants Nato to withdraw from its eastward momentum and return to the 1997 Nato-Russia Founding Act. Although neither may happen soon, Moscow has no interest or expressed desire to occupy Ukraine so the former is more likely than the latter.
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Ukraine for now is trapped in a vicious cycle of violence and disintegration beyond its control. It is a familiar plight of pawns caught between incompatible great powers.
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Ukraine wants urgent negotiations with Russia while Russia wants Belarus to host talks on the Minsk accords for a ceasefire and phased measures towards a compromise. Even if talks are possible it will be an uphill task since Moscow and Kiev have different interpretations of the 2014-15 terms.
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Among Biden’s errors is targeting Putin personally as if another Russian leader would have acted differently. Even Boris Yeltsin would have done the same over Ukraine, while a nationalist like Vladimir Zhirinovsky would have acted tougher and earlier.
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For the West to dump the Nord Stream 2 deal supplying Europe with Russian gas punishes only Europe which now has to pay many times more for US supplies. On Feb 4 Russia signed a new US$117.5bil oil and gas deal to supply China instead.
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Western observers worry that China may learn unsavoury lessons from Russia’s actions in Ukraine to further its disputed claims in Asia. Any lessons would be more akin to Nato’s gradual encroachment on Russian territory.
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The apparent beneficiary from Ukraine’s crisis is China, being a distraction for the West which also increases Moscow’s dependence on Beijing. But China is also awkwardly positioned as it wants to maintain good ties with all parties.
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The only unqualified beneficiary of the crisis is China-Russia relations, which must count as another major strategic blunder for Nato and the West.
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Bunn Nagara is a political analyst and Honorary Research Fellow of the Perak Academy. The views expressed here are solely the writer’s own.

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Is Ukraine a metaverse nightmare?


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The Russian pipe-laying ship 'Akademik Tscherski' which is on deployment for the further construction of the Nord Stream 2 Baltic Sea pipeline, is moored at the port of Mukran on the island of Ruegen, Germany, on Sept. 8, 2020. The gas is still flowing from Russian even as bullets and missiles fly in Ukraine. But the war is raising huge questions about the energy ties between Europe and Russia. The conflict is helping keep oil and gas prices high due to fears of a possible reduction in supplies, and consumers will continue to face financial stress from that. 

 


The real-life cost of war: People walk at the border crossing between Poland and Ukraine, in Medyka, Poland, on February 24, 2022. Photo: Reuters

 Moving from a unipolar world to a multipolar world was always likely to be messy and risk-prone. But few saw how fast we moved from beating war drums to actual armed conflict between the Great Powers, the latest being in Ukraine. Are we on a march of folly to World War III, or have key players lost sight of reality?

`Lest we forget, World War I (1914-1918) and World War II (1939-1945) were fought to keep down rising powers—Germany and later Japan.
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Russia and China suffered the most casualties in WWII, and both were allies against German Nazis and Japanese militarists.
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The United States became the real winner, but decided after WWII to contain communism in both the Soviet Union (USSR) and China.
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Fifty years ago, in 1972, US President Nixon set aside enmity against China, restored US-China relations, and in one strategic stroke, isolated the Soviet Union, leading to its collapse two decades later.
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The great achievement during the Cold War was the avoidance of nuclear conflict, with the Cuban missile crisis being a live test of brinkmanship.
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Both sides climbed down when the USSR removed missiles from Cuba, and the US quietly removed missiles from Turkey.
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President Kennedy understood that grandstanding on moral issues should be restrained, because in a nuclear war, mutually assured destruction is madness.
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After seven decades of peace, the Western media has been painting the multipolar world as a black-and-white conflict between good vs evil, democracy vs autocracy—without appreciating that the other side may have different points of view that need to be heard.
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By definition, a multipolar world means that liberal democracies will have to live with different ideologies and regimes.
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Today, YouTube and the Web provide a wealth of alternative views than mainstream media, such as CNN or BBC.
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Prof John Mearsheimer, author of the influential book "The Tragedy of Great Power Politics," offers the insight that the Western expansion of the North Atlantic Treaty Organization (Nato) was the reason why Russia felt threatened.
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The more the Nato allies try to arm Ukraine, the more insecure Russia gets.
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In essence, Russia wants a buffer zone of neutral countries like Austria, which are not members of Nato, but that does not exclude trade with all sides.
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Carnegie Moscow Center analyst Alexander Baunov described how "the two sides appear to be negotiating over different things.
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Russia is talking about its own security, while the West is focusing on Ukraine's."
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What he is describing are two sides that are each in their own social bubble or virtual reality (VR) Metaverse, deaf to the other side's views.
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The term "Metaverse" came from a 1992 dystopian sci-fi novel titled "Snow Crash," where the Metaverse is the virtual refuge from an anarchic world controlled by the Mafia.
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Today, Metaverse is an online virtual world where the user blends VR with the real, flesh-and-blood world through VR glasses and software augmented reality (AR).
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In other words, in Metaverse, your mind is colonised by whatever algorithm and virtual information that you get—real or fake news.
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Metaverse is escapism from reality, and will not help us solve real world problems, especially when we need to talk eyeball to eyeball.
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The Metaverse designer is more interested in controlling or influencing our minds, feeding us what we want to hear or see, rather than what information we need to have to make good decisions. The risk is that we think VR conflict is costless, whereas real war has real flesh-and-blood costs.
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.In short, the more we look inward at our own Metaverse, the more we neglect the collective costs to the world as it lurches from peace to war
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Surprisingly, I found the right-wing influential Fox commentator Tucker Carlson asking better questions than CNN or BBC commentators.
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In his show Tucker Carlson Tonight, in the segment "How will this conflict affect you?" he asked bluntly why Americans should hate Putin and what the war will cost every American.
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Carlson asked some really serious questions, even though his views are partisan—have the Democrats, with their moral concern to hate Putin, forgotten the big picture of war costs?
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First, would Americans be willing to go into a winter war with Russia?
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Second, would they pay much higher gas prices as oil prices have already hit above USD 100 per barrel?
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Although economic sanctions are applied, even Europe will not be willing to risk cutting off gas supplies from Russia, since Russia accounts for 35 percent of European gas supplies.
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Third, is Ukraine a real democracy?
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Carlson's 2018 book "Ship of Fools: How a Selfish Ruling Class Is Bringing America to the Brink of Revolution" is well worth reading to understand how conservative Americans think about elites who care about themselves more than society at large. 

Carlson asked some really serious questions, even though his views are partisan—have the Democrats, with their moral concern to hate Putin, forgotten the big picture of war costs?
`
First, would Americans be willing to go into a winter war with Russia?
`
Second, would they pay much higher gas prices as oil prices have already hit above USD 100 per barrel?
`
Although economic sanctions are applied, even Europe will not be willing to risk cutting off gas supplies from Russia, since Russia accounts for 35 percent of European gas supplies.
`
Third, is Ukraine a real democracy?
`
Carlson's 2018 book "Ship of Fools: How a Selfish Ruling Class Is Bringing America to the Brink of Revolution" is well worth reading to understand how conservative Americans think about elites who care about themselves more than society at large.
`
In sum, the decade of 2020s may face a tough period of escalating conflicts at local, regional and global levels, with proxy wars that disrupt each other's economies and social stability.
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If states fail, and poor and hungry people migrate at a larger scale, even more border conflicts are likely, since most will want to go to the richer countries in the North, such as Europe and America.
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There is no ideal world where everyone is good and the other side is bad.
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In a multipolar world, there will be all kinds of people that we don't like, but we have to live with them.
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A negotiated peace is better than mutual destruction.
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In Metaverse, virtual life can be beautiful, moral and perfect, but the real world is lurching towards a collective nightmare.
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We should not kid ourselves that the Metaverse VR of self-deception is the real world.

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We either sleepwalk to war, or have the courage to opt for sustainable peace.
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The real question is: Who is willing to climb down and eat the humble pie for the sake of peace?
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By Andrew Sheng is adjunct professor at Tsinghua University, Beijing and the University of Malaya. He was formerly the chairman of the Securities and Futures Commission, Hong Kong. 

Andrew Sheng | South China Morning PostTan Sri Andrew Sheng (born 1946) is Hong Kong-based Malaysian Chinese banker, academic and commentator. He started his career as an accountant and is now a distinguished fellow of Fung Global Institute, a global think tank based in Hong Kong.[1] He served as chairman of the Hong Kong Securities and Futures Commission (SFC) before his replacement by Martin Wheatley in

Andrew Sheng comments on global affairs from an Asian perspective. The views expressed here are his own.

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