Asia's weekly TOP10 crypto news (Jun 19 to Jun 25)
Author：Crescent
Editor：Colin Wu
1. President Tokayev of Kazakhstan Attends Binance Kazakhstan Signing Ceremony link
On the 22nd of June, CZ showcased a signed photograph with Bagdat Mussin, the Minister of Information Technologies in Kazakhstan, in the presence of President Tokayev. Binance emphasized that Kazakhstani users are able to engage in cryptocurrency transactions using fiat currency, and the global platform remains accessible to users from that country. Binance expressed its ongoing collaboration with five regulatory institutions in Kazakhstan, including the AIFC Financial Services Authority, the Ministry of Digital Development, Innovation and Aerospace Industry, and the National Bank.
2. Monetary Authority of Singapore Releases Whitepaper Outlining Standards for Digital Currencies link
On the 21st of June, the Monetary Authority of Singapore (MAS) released a technical white paper on Purpose Bound Money (PBM), introducing a universal protocol for specifying the conditions of use for digital currencies such as CBDCs, tokenized bank deposits, and stablecoins on the blockchain. The white paper was developed in collaboration with the International Monetary Fund, the Bank of Italy, the Bank of Korea, financial institutions, and fintech companies.
3. Japan’s Weekly Summary
3.1 Japanese Cryptocurrency Exchanges Pushing for Easing Restrictions on Margin Trading link
On the 20th of June, according to Bloomberg, Japanese cryptocurrency exchanges are pushing for relaxed restrictions on margin trading and may submit a proposal to the Financial Services Agency (FSA) next month. The Japan Virtual and Crypto Assets Exchange Association stated that many industry participants are hoping to allow retail investors to use leverage of 4 to 10 times, whereas currently, clients can only increase their risk exposure by doubling it through borrowing. In the past, Japanese cryptocurrency platforms offered leverage ratios as high as 25 times, leading to an annual margin trading volume of approximately $500 billion in 2020 and 2021. However, by 2022, the FSA introduced a limitation of double the exposure to curb excessive speculation and protect investors from amplified losses.
3.2 Mitsubishi UFJ Financial Group (MUFG), Japan’s Largest Bank, in Talks to Issue Global Stablecoin link
On June 23rd, according to Bloomberg, Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank, is in talks to issue a global stablecoin. Tatsuya Saito, the Product Deputy General Manager at MUFG, stated that the company is discussing with multiple parties the use of their blockchain platform, Progmat, to mint stablecoins anchored to foreign currencies for global usage. The Japanese Stablecoin Act came into effect on June 1st, which means that only licensed banks, registered money transfer agents, and trust companies in the country are eligible to issue tokens.
3.3 National Tax Agency of Japan Releases Partially Revised Tax Rules for Virtual Currency Businesses link
On June 25th, according to Coinpost, the National Tax Agency of Japan issued a notification regarding the legal interpretation of certain amendments to corporate tax rules. The notification states that if a company’s self-issued virtual currency meets certain criteria, it can be excluded from market valuation. The criteria include the implementation of technical measures that restrict the transfer of the currency since its issuance or the fulfillment of requirements as a qualified trust property. Under the previous law, companies were subject to taxation on unrealized profits at the end of the period if they held virtual currencies. This provision increased the burden on companies and was criticized for hindering innovation in virtual currencies and blockchain.
4. Hong Kong’s weekly summary
4.1 HKMA Chief Executive Eddie Yue: Regulatory Consistency Emerging Globally, Beneficial in Reducing Regulatory Arbitrage Resulting from Different Standards in the Future link
On June 19th, Eddie Yue, the Chief Executive of the Hong Kong Monetary Authority (HKMA), expressed that the United States has recently strengthened its regulation on virtual assets. Regarding whether Hong Kong would relax its regulations while the US tightens, he mentioned that in the past, Hong Kong had strict regulations on virtual asset supervision, almost to the point of prohibition, whereas regulations in other jurisdictions were relatively vague. However, currently, regulatory standards across different jurisdictions are starting to converge, which is beneficial in reducing regulatory arbitrage caused by differing standards.
Yue pointed out that in the past, the United States did not have clear regulatory requirements for virtual assets, while places like Singapore and Dubai had regulations in place for certain functionalities of virtual currencies, such as anti-money laundering measures. Hong Kong, after learning from experiences such as the collapse of FTX, gradually shifted from the strictest criteria to a more open approach, implementing regulations that are both rigorous and clear.
4.2 Summary of the Development of Selected Localities in Web3.0 Technologies Released by the Legislative Council Secretariat of Hong Kong link
The Research Department of the Legislative Council Secretariat in Hong Kong recently released a summary of materials titled “Development of Selected Localities in Web3.0 Technology.” The summary focuses on the development experiences of Japan, Singapore, South Korea, and the United Arab Emirates in the field of Web3.0. It states that Hong Kong is currently in the early stages of Web3.0 development, with the government taking the lead in driving development through policy formulation. In the 2023–2024 budget proposal, the government emphasizes the need for Hong Kong to seize the “golden opportunity” of developing Web3.0.
4.3 CEO of Hong Kong Securities and Futures Commission: Jurisdictions Previously Welcoming Cryptocurrencies Now Tightening Regulatory Oversight link
According to Hong Kong Radio, Leung Fung-yee, the CEO of the Securities and Futures Commission (SFC) in Hong Kong, stated that the regulatory landscape has tightened for jurisdictions that previously welcomed cryptocurrency assets since the collapse of FTX. As mainland China still prohibits cryptocurrency trading, Hong Kong’s new licensing regime serves as a clear demonstration of the “one country, two systems” principle. She emphasized that the SFC’s goal is not to make Hong Kong a cryptocurrency trading hub, but it recognizes the importance of cryptocurrency trading as part of the virtual asset ecosystem. The SFC welcomes the application of related technologies in the financial services sector, including tokenization of bonds and investment funds. It is acknowledged that there is still a long way to go in establishing a virtual asset ecosystem in Hong Kong, but with the gathering of the virtual asset fintech community, the pace of development is expected to accelerate.
5. South Korea’s Weekly Summary
5.1 South Korean “Blockchain Wrinkle Detection for Dogs” Scam Project Defrauds Investors of $12.7 Million link
On June 25th, according to The Korea Times, the Anti-Corruption and Economic Crimes Investigation Unit of the Gyeonggi Southern Provincial Police Agency in South Korea uncovered a case of cryptocurrency fraud. A Korean company attracted investors with a blockchain application that claimed to recognize dogs by analyzing their wrinkled noses. The company promised a return on investment of up to 150% within 100 days and raised approximately 166.4 billion Korean won (approximately $127 million) from around 22,000 people. The majority of the victims were aged 60 or above and lacked expertise in cryptocurrency. The project also issued an Ethereum-based token that was traded on decentralized exchange platforms and the centralized Korean exchange, Bithumb. The investigation revealed that the company’s claimed dog nose recognition technology was fake and did not involve the use of blockchain technology.
5.2 South Korean Prosecutors Ban B&S, Delio, and Haru Invest Top Executives from Leaving the Country link
On June 25th, according to Digital Asset, South Korean prosecutors have imposed travel bans on key personnel from B&S Holdings (B&S), Delio, and Haru Inves (Haru), who are suspected to be involved in the “chain halt of withdrawals” incident related to a cryptocurrency asset management company. The major shareholder of B&S, representatives and executives of Delio, as well as executives of Haru, have been prohibited from leaving the country. It is reported that another major shareholder of B&S is currently abroad. Delio is currently under investigation by financial authorities for allegations including fraud and misappropriation.
5.3 South Korean Cryptocurrency Investment Platform Sandbank Temporarily Suspends New Deposit and Investment Functions link
On June 20th, the South Korean cryptocurrency investment platform Sandbank issued a notice to its users, stating that the withdrawal and asset management functions are operating normally. However, due to increased market risks, the platform has temporarily suspended new deposits and investment functions. Ongoing investment projects will no longer be updated, and users will be able to withdraw their funds upon maturity.
5.4 Korea Blockchain Association Sends Inquiry Letters to 12 Banks That Have Not Signed Real-Name Account Contracts for Virtual Asset Transactions link
On June 20th, according to Digital Today, the Virtual Asset Exchange Association (VXA) of South Korea announced that it has sent due diligence application forms to 12 banks that have not yet signed real-name account contracts with virtual asset exchanges. The request includes the investigation of real-name account contracts with virtual currency exchanges to ensure fair trading practices and enhance consumer rights. VXA is a negotiating body composed of representatives from 10 domestic cryptocurrency exchanges in South Korea. Previously, on the 13th, they made similar requests to five banks that had already signed real-name account agreements with domestic virtual asset exchanges, urging them to adhere to the same standards as the existing Korean won market exchanges.
6. Terra Founder Do Kwon’s Latest News
6.1 Do Kwon was Sentenced to 4 Months in Prison for Using a Forged Passport link
On June 19, according to DL News, a Montenegrin court today handed down a verdict in the case of Do Kwon forging passports, sentencing Do Kwon and Han Chang-Joon to four months in prison. Earlier, the court re-approved their bail requests and ordered Do Kwon and Han Chang-Joon to continue their detention for another six months, both of whom pleaded not guilty in court.
6.2 Do Kwon is Held Incommunicado in a Solitary Confinement Cell in the Pre-trial Detention Section of a Dilapidated Prison in Montenegro link
On June 22, according to DLNEWS, Terra founder Do Kwon was held incommunicado in a solitary confinement cell in the pre-trial detention section of a dilapidated prison in Montenegro, where guards opened his cell twice a day to vent; Gang violence in prisons is so high that authorities have stepped up surveillance to ensure that warring members do not cross; At the beginning of the year, the 292-seat pre-trial detention facility held 380 prisoners and several members of mafia families in the Balkans.
6.3 Swiss Prosecutors Froze About $26 Million in Assets of Do Kwon and Others link
On June 25, Swiss prosecutors recently froze about $26 million in assets of Terraform Labs (TFL) CEO Do Kwon and others, which are stored in Signum, a digital asset bank in Zurich, Switzerland, according to Digital Asset. The assets involved were owned by Do Kwon, former CEO of Chai Corporation Chang Joon Han, former head of TFL’s research team, Nicholas Platias, and TFL, and the frozen assets were nearly double the size of those previously disclosed by South Korean prosecutors. Earlier, the director of financial securities crime joint prosecution of the Seoul Southern District Court said in an interview with the media: “Do Kwon et al. have more than 13 million US dollars (about 16.9 billion won) in Signum.”
7. Guangdong Shaoguan Qujiang District Court Handles a Case Involving “Illegal Fundraising of Over 5 Million Yuan Using Virtual Currency” link
On June 20th, according to Qujiang Rongmei, in a case heard by the People’s Court of Qujiang District, Shaoguan City, Guangdong Province, involving illegal fundraising through virtual currency, a man named Deng attracted over 400 investment members with the promise of “risk-free high returns” and “guaranteed profits” through virtual currency. The total investment amount exceeded 5 million yuan. Deng collaborated with a Korean company and conducted transactions through the introduction of MZC virtual currency investment and the FCOIN online investment platform. He promoted it in various ways in cities such as Shenzhen and Changsha, enticing members to purchase MZC virtual currency. In late 2019, the MZC virtual currency funding chain collapsed, and the FCOIN trading platform was shut down, leaving many participants unable to withdraw their virtual currency. During the trial, Deng’s family returned a portion of the illegal proceeds and raised funds to the court. Ultimately, the Qujiang Court sentenced Deng to three years and six months of imprisonment and ordered the repayment of the remaining outstanding raised funds.
8. Crypto-Friendly Bank Xapo Bank to Expand in India and Other South Asian Regions link
On June 22nd, Xapo, a cryptocurrency-friendly private bank based in Gibraltar, announced its expansion into India and other South Asian regions, signaling significant growth in cryptocurrency services in the area. According to the announcement, Xapo will start accepting members from various South Asian countries, offering services such as offshore savings accounts in USD and bitcoin wallets, with an interest rate of 4.1% for fiat deposits and 1% for BTC deposits.
9. Gemini Exchange Plans Expansion in the Asia-Pacific Region, Increases Investment in Personnel and Infrastructure in Singapore link
On the backdrop of intensified regulatory measures in the United States, Gemini exchange has announced its expansion plans in the Asia-Pacific region. Over the next 12 months, they intend to augment their workforce in Singapore by over 100 personnel and establish Singapore as the hub for their expansion in the Asia-Pacific region. This endeavor also encompasses the establishment of an engineering base in India.
10. Pillow Plans to Cease All Services and Applications in the Coming Weeks Due to Regulatory Uncertainty link
On June 23rd, Pillow, a cryptocurrency management platform based in Singapore, has announced its plan to cease all services and applications in the coming weeks due to regulatory uncertainties. They have informed their customers through Telegram to withdraw all funds from the Pillow application and stated that all current services will be terminated by July 31, 2023. Pillow had previously raised $18 million in Series A funding led by Accel and Quona Capital in October last year.
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