Asia's weekly TOP10 crypto news (Aug 28 to Sep 3)

Sep 03, 2023

Author：0xMingyue

Editor：Colin Wu

1. The Mainland of China’s Weekly Summary

1.1 People’s Court Publication Features Article on “Recognition of the Property Nature of Virtual Currency and Issues of Handling Assets Involved in Cases” link

On September 1st, an article titled ‘Recognition of the Property Nature of Virtual Currency and Issues Related to the Disposal of Property Involved in Cases’ was published in the People’s Court Daily. The authors, Wang Zhongyi and Yang Conghui, from the Siming District People’s Court in Xiamen, Fujian Province, contend that virtual currency falls within the legal definition of property under criminal law and is considered legitimate assets. They argue that unless such assets are used for illegal activities or directly originate from unlawful actions, the property rights and interests of virtual currency holders should be protected.

The authors further assert that existing legal policies do not categorize virtual currencies as illegal goods. In cases involving virtual currencies, they emphasize that assets involved should not be uniformly subject to confiscation or return. Instead, they advocate for a differentiated approach within the framework of criminal and civil legal orders, achieving a balanced protection of individual property rights and the public interest.

1.2 Wuhan Court Declares Virtual Currency “Mining” Contracts Invalid link

On September 3rd, according to the Hubei High Court’s official WeChat account, the Wuchang District People’s Court in Wuhan City concluded a dispute case related to a ‘mining’ contract involving virtual currency. In this case, the plaintiff had entered into a contract with a certain technology company worth 179,800 CNY for the purchase of storage servers, intended for mining the virtual currency Filecoin. The court ruled that the essence of this contract was, in fact, for ‘mining’ activities, which contravened the principles of sustainable development and the broader public interest. Consequently, the court declared the contract null and void. The technology company was ordered to refund the plaintiff the contract payment of 120,000 CNY.

2. Hong Kong’s weekly summary

2.1 HashKey Opens Retail Trading on Monday, Plans to Launch HKD Trading Pairs in the Coming Weeks link

On Monday, August 28th, HashKey Exchange, a licensed exchange in Hong Kong, opened BTC/USD and ETH/USD trading pairs to retail investors and started supporting deposits and withdrawals. Currently, users will enjoy zero trading fees across all trading pairs.

The HashKey Exchange platform currently supports deposits and withdrawals in Hong Kong Dollars (HKD), which users can use for KYC verification. HashKey Exchange announced on August 31st that it would temporarily not support trading pairs with Hong Kong Dollars (HKD) but plans to introduce HKD trading pairs in the coming weeks.

2.2 Cryptocurrency Bank SEBA Receives SFC’s In-Principle Approval in Hong Kong link

On August 30th, SEBA Bank, a cryptocurrency bank headquartered in Switzerland, received preliminary approval from the Securities and Futures Commission (SFC) of Hong Kong. This approval will enable SEBA Bank to engage in securities trading, including cryptocurrency-related products, provide advice on securities and virtual assets, and offer asset management for both traditional securities and virtual assets. Amy Yu, the CEO of SEBA in the Asia-Pacific region, expressed confidence that they will obtain formal approval by the end of this year.

2.2 ZA Bank Becomes the First Settlement Bank for HashKey Exchange link

On August 31st, ZA Bank, a Hong Kong licensed virtual bank, announced its partnership with HashKey Exchange, a licensed virtual asset retail exchange, becoming its first settlement bank. ZA Bank will provide fiat currency deposit and withdrawal services for investors holding ZA Bank accounts. Users of ZA Bank can transfer Hong Kong dollars and US dollars through the ZA Bank App to HashKey Exchange for trading purposes. It’s worth noting that ZA Bank does not currently offer virtual asset retail trading services.

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

3.1 South Korean Financial Authorities to Require Exchanges to Establish Reserves link

On August 28th, according to a report by News 1, South Korean financial authorities are set to announce ‘Bank Real-Name Account Issuance Standards.’ Starting from September, South Korean cryptocurrency exchanges that have obtained real-name accounts from banks will be required to establish a minimum reserve of 3 billion Korean won (approximately $2.28 million) and a maximum of 20 billion Korean won (approximately $15.2 million) to compensate users for losses in the event of incidents such as hacking attacks. Exchanges like Upbit and Bithumb have stated that they are prepared to accumulate these reserves.

3.2 Chung Hye’s Husband, Ahn Sung-hyun, and Bithumb CEO Avoid Arrest in Bribery Investigation Related to Cryptocurrency Listing link

On September 3rd, according to The Economist (Korean edition), arrest warrants for professional golfer and actor Lee Young-ryeol’s husband, An Seong-hyeon, and the CEO of Bithumb Holdings, Lee Sang-jun, were rejected by the court. Both individuals faced accusations from prosecutors of being involved in cryptocurrency listing bribery. An Seong-hyeon was accused of receiving billions of Korean won in bribes, while Lee Sang-jun was implicated in accepting these bribes.

3.3 Delio Discloses Platform Deposits of Approximately KRW 90 Billion, Estimated Loss Rate Currently at 30–50% link

On August 30th, as reported by etoday, the South Korean cryptocurrency lending firm Delio disclosed for the first time its platform’s deposit scale and estimated losses, following a suspension of withdrawals on June 14th. Delio’s platform deposit scale is estimated to be around 90 billion Korean won (approximately 67.95 million USD), with current estimates suggesting a loss rate of 30–50%. Prior to this, Delio had transferred virtual assets worth 9.2 billion Korean won (about 7.07 million USD), which were subsequently seized and investigated by the Seoul Prosecutor’s Office.

4. Japan’s Weekly Summary

4.1 Japan’s Financial Services Agency Releases Financial Policy Guidelines for the 2023 Administrative Year, Aiming to Achieve the Goal of a Digital Society link

On August 30th, as reported by Coinpost, the Japanese Financial Services Agency (FSA) released its financial policy guidelines for the 2023 fiscal year. These guidelines include the objective of realizing a digital society, specific policies for advancing Web3, and the establishment of a registration review system to support the smooth issuance and circulation of stablecoins, along with the encouragement of self-regulatory organizations.

4.2 Binance Japan Announces Market Strategy with the Aim to Increase the Number of Tradable Cryptocurrencies to 100 link

On August 30th, Binance Japan unveiled its market strategy, with a focus on ‘widespread adoption of Web3 and stablecoin business.’ Currently, Binance Japan offers trading for 34 types of tokens, with a target to increase this number to 100. Additionally, they will actively promote plans to collaborate with private companies and the Japanese government within the Binance ecosystem, highlighting a policy centered around stablecoins to facilitate integration with the existing financial system.

5. India’s Weekly Summary

5.1 OKX Plans to Enter India and Recruit Local Staff link

On September 1st, according to Coindesk, the Chief Marketing Officer of OKX stated to CoinDesk that the company is planning to enter India and recruit local staff to explore potential Web3 applications. Currently, OKX has around 200,000 wallet users in India, accounting for only 5% of the country’s Web3 users. India has not yet introduced any legislation in parliament regarding Web3 or cryptocurrencies but has imposed strict taxation on transactions and implemented anti-money laundering rules.

5.2 Indian Cryptocurrency Exchange CoinSwitch Lays Off 44 Employees from the Customer Support Team link

On August 29th, according to Coindesk, the Indian cryptocurrency exchange CoinSwitch has laid off 44 employees from its customer support team due to the market downturn. Since April, the exchange has hired about 60 employees, primarily in product technology and compliance roles, bringing the total number of employees to around 640 before the layoffs. Currently, its customer support team still has 82 employees.

6. Binance Considering a Full Exit from the Russian Market link

On August 29th, according to The Wall Street Journal, Binance is currently reevaluating its operations in Russia, which includes the possibility of completely exiting the market. A spokesperson told The Wall Street Journal, ‘All options are on the table, including a complete exit.’ Previously, Binance had ceased providing P2P services to sanctioned Russian banks.

7. Electricite Du Laos (EDL) Announces It Will No Longer Provide Electricity to Cryptocurrency Mining Operations in Laos link

On August 28th, as reported by local media, the Laos Electricité Du Laos (EDL) announced that it would no longer provide electricity for cryptocurrency mining operations in Laos. A notice issued by EDL on August 24th stated that Laos experienced high electricity demand in the first six months of 2023 due to a severe drought and heatwave, making it difficult for hydropower plants to generate sufficient electricity. According to EDL, 95% of the country’s electricity is generated by hydropower plants within its system.

8. Uzbekistan: Developing Regulations for Cryptocurrency Miner Registration Procedures and Mining Pool Operations link

On August 29th, as reported by ForkLog, Vyacheslav Pak, the Deputy Director of the National Project Administration of Uzbekistan (NAPP), revealed in an interview that the organization is in the process of developing regulations concerning cryptocurrency miners and mining pool operators, while also assisting entrepreneurs in token issuance. Key legal developments include: establishing a licensing regime for cryptocurrency asset trading and mining; updating mining conditions to incorporate more alternative energy sources; and setting legal liabilities for illegal cryptocurrency circulation. The organization has also approved five special legislative acts, covering everything from cryptocurrency exchange licenses to the registration of participants in special regulatory regimes.

Currently, the country has issued licenses for the operation of one cryptocurrency exchange and nine cryptocurrency shops. Negotiations took place between representatives of several companies, including Binance, Huobi, and Bybit, during 2022–2023 regarding the establishment of companies in Uzbekistan and obtaining licenses. Presently, nearly half a million citizens own cryptocurrencies. The number of active users on trading platforms is expected to reach 50,000, with a total weekly trading volume ranging from $25 million to $180 million.

9. Turkish Lira Stablecoin TRYB Becomes the Second-Largest Non-US Dollar Stablecoin by Market Capitalization link

On September 1st, as reported by Coindesk, the Turkish company BiLira launched the stablecoin TRYB, which is pegged to the Turkish Lira (TRY), on the Ethereum network. TRYB has become the second-largest non-USD stablecoin by market capitalization, with the largest being the Euro stablecoin. According to data from Coingecko, TRYB has a market capitalization of $136.1 million, experiencing a remarkable 325% surge in just three weeks, placing it 17th in terms of stablecoin market capitalization.

10. Omani Government Announces Nearly $800 Million in New Investments in Cryptocurrency Mining Operations link

In August, the Omani government announced a new investment of nearly $800 million in the cryptocurrency mining industry. This includes a $300 million deal with Abu Dhabi’s Phoenix Group to develop a 150-megawatt cryptocurrency mining facility, as well as a $370 million investment to launch a new cryptocurrency mining center in the Salalah Free Zone and deploy 15,000 mining machines in October.

Wu Blockchain

Discussion about this post