Asia's weekly TOP10 crypto news (Aug 21 to Aug 27)

Aug 27, 2023

Author：Crescent

Editor：Colin Wu

1. The Mainland of China’s Weekly Summary

1.1 China Court Network Releases “Characterization of Illegal Acquisition of Virtual Currency Activities” link

On the 24th of August, the China Court Network published an article titled “Qualification of Illegal Acquisition of Virtual Currency Activities.” The article examines three perspectives on the legal qualification of illegal acquisition of virtual currency activities. These perspectives include categorizing it as a crime of illegally obtaining computer information system data, considering it as a theft crime, or potentially involving both charges, where one heavy offense could be chosen.

The legal characterization of the unlawful acquisition of virtual currency depends on the time when the actions occurred. If it took place before September 2017, virtual currency was regarded as property within the context of criminal law. This might lead to charges of both theft and illegal acquisition of computer information. In this case, a single severe penalty could be selected. However, if the actions occurred after September 2017, virtual currency is no longer considered property within the scope of criminal law, and the regulations concerning property crimes no longer apply.

1.2 Former Fuzhou City Committee Secretary Xiao Yi Sentenced to Life Imprisonment in First Instance link

On the 22nd of August, the Intermediate People’s Court of Hangzhou, Zhejiang Province, publicly announced the verdict in the case of Xiaoyi, former member of the Party Group and Deputy Chairman of the Jiangxi Provincial Committee of the Chinese People’s Political Consultative Conference (CPPCC), for charges of bribery and abuse of power. The defendant, Xiaoyi, was sentenced to life imprisonment for the crime of bribery.

The court found that from 2017 to 2021, while serving as the Secretary of the Fuzhou Municipal Party Committee, Xiaoyi violated the principles of new development and national regulations. He provided assistance to enterprises engaged in virtual currency mining business in terms of fiscal subsidies, funding support, and electricity guarantee, causing significant losses to public property, national interests, and the people. The severity of the circumstances was exceptionally serious, and the impact was particularly grave.

2. Hong Kong’s weekly summary

2.1 Hong Kong Monetary Authority: Exploring Regulatory Framework for Digital Hong Kong Dollar or Stablecoin link

On August 25th, as reported by Hong Kong Radio Website, the Hong Kong Monetary Authority (HKMA) has indicated that they are actively studying the establishment of a regulatory framework for digital Hong Kong dollars or stablecoins. They are also fostering the adoption of Distributed Ledger Technology (DLT) within the industry, with the intention of tokenizing bank deposits. In the upcoming quarter, the HKMA is planning to organize seminars in collaboration with the industry to introduce DLT technology. However, it’s important to note that there is no specific timeline for the implementation of tokenized deposits, and it won’t be mandatory for all banks to adopt this practice. The research and development of tokenized deposits will proceed concurrently alongside the exploration of digital Hong Kong dollars.

2.2 HashKey Group Chairman Xiao Feng: Many Regulations in Hong Kong Have Yet to Be Enacted link

According to Meta Era, on August 25th, Chairman Xiao Feng of HashKey Group mentioned that there are still many regulations pending in Hong Kong, such as Security Token Offerings (STOs). It is anticipated that by the end of this year, the Securities and Futures Commission (SFC) of Hong Kong will release regulatory guidance on STOs. The promotion of STO financing for technology companies could establish a connection between the cryptocurrency financial sector and the real economy. The SFC can provide clear rules in the regulatory guidance, ensuring that the industry comprehends how to utilize tokenization for financing purposes.

2.3 Hong Kong Victory Securities Launches First Compliant Virtual Asset Trading App link

On August 25th, Hong Kong listed company Victory Securities Limited claimed to have launched the first compliant virtual asset trading app in the Hong Kong financial market. In its initial phase, the app will enable professional investors to experience virtual asset trading provided by licensed institutions, with the aim of extending compliant virtual asset trading services to retail investors in the near future.

3. South Korea’s Hong Kong’s weekly summary

3.1 Dunamu, the Parent Company of Upbit, Publishes Q2 2023 Financial Report link

On August 25th, according to Yonhap News Agency, Dunamu, the parent company of South Korea’s largest cryptocurrency exchange Upbit, released its financial report for the second quarter of 2023. The consolidated net profit for the quarter amounted to 108 billion Korean won (approximately 82.08 million US dollars), a significant improvement from the net loss of 37.8 billion Korean won in the same period last year. The second-quarter revenue was 142 million US dollars, representing a year-on-year decrease of 47.9%; operating profit was 65.82 million US dollars, marking a decline of 68.9% compared to the previous year.

3.2 Bithumb Data: Investors in Their 20s in South Korea Prefer XRP the Most link

On the 23rd of August, as per the data provided by Bithumb, a virtual asset exchange in South Korea with 6 million domestic users, the proportion of Bitcoin and Ethereum purchases among investors in their twenties accounts for only 17.5% of the total investment

This proportion ranks the lowest among various age groups, and only investors in their twenties have a lower investment proportion in Bitcoin and Ethereum compared to altcoins. Among investors in their twenties, the investment proportion in altcoins is as high as 82.5%, indicating their preference for more volatile altcoins relative to Bitcoin and Ethereum.

Among these, the most favored altcoin by investors in their twenties is XRP (Ripple), accounting for 20.7%. In contrast, Bitcoin and Ethereum have the highest investment proportion among investors in their thirties, reaching 28.2%.

3.3 South Korea’s Second-Largest App Store ONE Store Partners with Polygon Labs to Support the Web 3.0 Market link

On the 23rd of August, the second-largest app marketplace in South Korea, ONE Store, signed a memorandum of understanding with Polygon Labs, aimed at endorsing the Web 3.0 market. This memorandum signifies a comprehensive endorsement for Web3.0 games and decentralized global applications, known as DApps. Under this agreement, ONE Store will extend marketing support to Web 3.0 games built on the Polygon protocol.

4. FBI: Traces the 1580 BTC Stolen by North Korean Hacker Group “TraderTraitor” link

North Korea may attempt to liquidate this batch of Bitcoins worth over $40 million. The incidents involving TraderTraitor and several cryptocurrency thefts are linked, including the one on June 22, 2023, where Alphapo lost virtual currencies valued at $60 million; on the same day, CoinsPaid was hacked, resulting in the loss of $37 million worth of virtual currencies; and on June 2, 2023, Atomic wallet was breached, leading to the theft of $100 million worth of virtual currencies. Additionally, the attacks on Harmony’s Horizon bridge and Sky Mavis’ Ronin Bridge might also be related to TraderTraitor. The FBI advises private entities to scrutinize blockchain data associated with these addresses and remain vigilant to prevent any direct transactions or derivative transactions from these addresses.

5. Thailand Threatens to Hold Facebook Accountable for Cryptocurrency Fraud and Other False Advertisements link

On the 22nd of August, as reported by Cointelegraph, Thailand is planning to seek a court order for the shutdown of Facebook unless the platform takes measures to address the alleged investment and cryptocurrency scam advertisements on its platform. The Ministry of Digital Economy and Society (MDES) of Thailand has stated that over 200,000 individuals have been deceived by deceptive Facebook ads promoting cryptocurrency scams, false investment opportunities, and fictitious government entities like the SEC.

6. Singapore’s Weekly Summary

6.1 Singapore Court Approves Vauld’s Debt Restructuring Plan link

On August 25th, Darshan Bathija, the co-founder of the bankrupt cryptocurrency lending institution Vauld, announced through a tweet that the debt restructuring plan of Vauld has been approved by the Singapore court. As part of this plan, the current board of directors will be replaced by the newly appointed CEO, representatives of creditors, and scheme managers. Customers are currently in the process of resubmitting their Know Your Customer (KYC) information. Previously, Vauld rejected a acquisition proposal from its competitor Nexo.

6.2 DBS Bank Introduces “DBS BetterWorld,” a Metaverse Experience, in The Sandbox link

On August 24th, Singapore’s largest bank, DBS Bank, launched its metaverse experience “DBS BetterWorld” within The Sandbox. It is anticipated to be accessible to the public by the end of this year. DBS Bank has stated that once The Sandbox’s Alpha Season 4 launches later this year, it will introduce BetterWorld. In September 2022, DBS Bank acquired a 3x3 parcel of LAND within The Sandbox for development purposes.

7. Binance Suspends P2P Services to Sanctioned Russian Banks link

On August 26th, according to a report by WSJ, Binance has halted its P2P services to sanctioned Russian banks. A spokesperson for Binance stated, “We regularly update our systems to ensure compliance with local and global regulatory standards. When deficiencies are pointed out to us, we seek to address and remedy them as quickly as possible.” Prior to this, a detailed article by WSJ highlighted how the cryptocurrency giant assisted Russians in transferring funds abroad, involving transactions with sanctioned banks Rosbank and Tinkoff Bank.

8. Indian Exchange CoinDCX Lays Off 12% of Its Workforce link

On August 22nd, one of India’s most prominent cryptocurrency exchanges, CoinDCX, announced that due to the prolonged bear market affecting its revenue, the company will be reducing its workforce by approximately 12%, resulting in the termination of 71 employees. With around 590 employees in total, multiple teams within the company will be affected by the layoffs.

9. Israeli Police Accuse Israeli Crypto Giant Moshe Hogeg of $290 Million Cryptocurrency Scam link

On August 23rd, as reported by Bloomberg, the Israeli police have charged Moshe Hogeg, a prominent figure in the Israeli cryptocurrency industry, and his partners with defrauding investors of $290 million through cryptocurrency scams. In a statement released on Wednesday, the Israeli police stated that after a two-year investigation, Moshe Hogeg is accused of fraud, theft, money laundering, forgery, and tax crimes. The Israeli police have submitted their recommendations to the prosecutor, who will decide whether to press charges and review the evidence of these alleged crimes.

Reportedly, Hogeg and his several partners (whose identities were not disclosed in the documents) are suspected of diverting millions of dollars raised from Israeli and foreign investors in 2017 and 2018 for personal use, funneling these funds into four cryptocurrency startups.

10. FIBA Launches NFT Collectibles for the 2023 Basketball World Cup link

On August 24th, the International Basketball Federation (FIBA) partnered with blockchain technology provider Venly to introduce NFT collectibles for the 2023 Basketball World Cup. This NFT collection will be minted on the Polygon blockchain and includes four sets of NFT series with varying levels of rarity: Fan’s Frenzy, National Pride, Ultimate Courtside, and Golden Glory. Currently, this NFT collection has been made available on the official website of the International Basketball Federation.

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