Asia's weekly TOP10 crypto news (Dec 2 to Dec 7)

Dec 08, 2024

1. Putin: “No One Can Ban Bitcoin, Everyone Strives to Lower Costs and Enhance Reliability” link

Russian President Vladimir Putin, speaking at the Russia Calling Investment Forum, stated, “Who can ban Bitcoin? No one can. Who can prohibit the use of other electronic payment methods? No one can, either. These are new technologies. Regardless of the future of the dollar, these tools will evolve in one way or another, as everyone strives to reduce costs and increase reliability.”

2. WikiLeaks Founder Assange Mints Afghanistan War Logs as Bitcoin Ordinals Inscriptions link

Julian Assange, founder of WikiLeaks, and his supporters have launched “Project Spartacus,” minting 76,911 Afghan War Log files as inscriptions on the Bitcoin blockchain using the Ordinals protocol. This initiative aims to ensure the permanent preservation of these records, which document classified details of U.S. military operations, including civilian casualties and interrogation methods. The project is seen as a significant attempt at preserving historical information within the crypto space. Notably, WikiLeaks has been accepting Bitcoin donations since 2010 to counter financial blockades, raising over $30 million to cover legal expenses.

3. Japan’s FSA Proposes Streamlined Legislation for Non-Exchange Crypto Intermediaries link

Japan’s Financial Services Agency (FSA) is exploring a streamlined regulatory framework for cryptocurrency intermediaries. These intermediaries do not directly engage in cryptocurrency transactions but act as traffic drivers for trading platforms, such as gaming applications or self-custody wallets, without handling crypto assets or fiat currency. Under the proposal, such entities would need to register as intermediaries, fulfill information disclosure obligations, adhere to advertising restrictions, and assume potential liability in case of issues. The FSA is also considering compensation mechanisms, including requiring intermediaries to post security deposits or assigning responsibility to their associated cryptocurrency exchanges.

4. South Korea’s Weekly News

4.1 Korean Exchanges Upbit, Bithumb, and Coinone to Pay Regulatory Fees Starting Next Year link

Starting in 2025, South Korea’s virtual asset service providers, including Dunamu (Upbit), Bithumb, and Coinone, will be required to pay regulatory fees. This decision follows the December 3 approval of amendments to the Enforcement Decree of the Financial Services Commission Establishment Act by the State Council. The fees will be calculated based on the providers’ operating revenue. These regulatory fees are akin to those paid by banks, financial investment firms, and insurance companies for “supervisory and inspection services” provided by financial regulators.

4.2 Crypto Investments Surge Among Korean Seniors, with Over 775,700 Accounts for Those Aged 60+ link

According to a report by Maeil Business Newspaper, the number of accounts held by users aged 60 and above on South Korea’s major cryptocurrency exchanges, Upbit and Bithumb, reached 775,700 as of the end of September — a 30.4% increase compared to the end of 2021. This age group collectively holds ₩6.7609 trillion in cryptocurrency assets, with an average investment of approximately ₩8.72 million per person.

At the same time, the balance of demand deposits at South Korea’s five major banks stood at ₩592.67 trillion, down ₩26.95 trillion from the end of June, marking the lowest level since January this year. Analysts attribute this shift to a combination of the “Trump rally effect” and expectations of interest rate cuts, accelerating the flow of funds from banks to riskier assets.

Additionally, South Korea’s ruling and opposition parties have reached a consensus to delay cryptocurrency taxation. The implementation of the cryptocurrency income tax policy, originally scheduled for January 1, 2024, has been postponed to 2027.

4.3 South Korea to Allow Universities and Local Governments to Liquidate Crypto Donations Next Year link

Starting next year, universities and local governments in South Korea are expected to be able to convert donated cryptocurrencies into cash. This development stems from a government plan to gradually permit businesses to open virtual asset-linked KRW accounts.

In the first phase, financial authorities will enable real-name accounts for non-profit organizations such as central government ministries, local governments, public institutions, and universities. In the second phase, KRW accounts will be extended to relevant businesses, including virtual asset exchanges.

The government also plans to evaluate, over the medium to long term, the possibility of allowing corporate accounts for general companies (Phase 3) and financial institutions (Phases 4 and 5).

5. Hong Kong’s Stablecoin Bill Set for First Reading in Legislative Council on December 18 link

Hong Kong’s Stablecoin Bill will be presented for its first reading in the Legislative Council on December 18. The bill seeks to refine the regulatory framework governing virtual asset activities, addressing the potential risks that fiat-backed stablecoins may pose to financial stability, ensuring adequate user protections, and leveraging the advantages offered by virtual assets and associated technologies.

Under the proposed licensing regime, individuals or entities must secure authorization from the Monetary Authority before engaging in any of the following activities:

Issuing fiat-backed stablecoins in the course of business within Hong Kong.

Issuing fiat-backed stablecoins that claim to be pegged to the value of the Hong Kong dollar.

Actively promoting the issuance of such stablecoins to the Hong Kong public.

To ensure the system’s effectiveness, the bill further proposes granting the Monetary Authority comprehensive powers for supervision, investigation, and enforcement.

6. Cambodia Blocks 16 Cryptocurrency Trading Websites link

Cambodia has blocked access to 16 cryptocurrency exchange websites, including Binance and Coinbase, yet has not restricted access to their applications, highlighting the country’s struggle to regulate the illegal yet thriving cryptocurrency market. Facing international pressure to improve its reputation as a hub for online fraud, the Cambodian government has attempted to regulate cryptocurrencies and other digital services. However, this effort has had little impact on the decentralized nature of cryptocurrency trading, while simultaneously disrupting the operations of some established industry participants.

7. Sora Ventures Launches $150M Fund to Emulate MicroStrategy’s Model link

Sora Ventures has launched a $150 million fund aimed at replicating the MicroStrategy model, using Bitcoin as a primary reserve asset to optimize financial strategies. The fund will target companies listed on major stock exchanges in Japan, Hong Kong, Thailand, Taiwan, and South Korea. In 2024, Japan-listed Metaplanet, in collaboration with Sora Ventures, implemented this model, leading to a remarkable surge of over 1,000% in its stock price this year.

8. Robinhood to Enter Asian Markets by 2025 with Headquarters in Singapore link

According to Bloomberg, Robinhood Markets Inc. CEO Vlad Tenev announced that the company will enter the Asian market next year, with Singapore serving as its local hub in the region. “We plan to soon offer services to customers across Asia,” Tenev stated on Wednesday during the company’s Investor Day event in New York. Over the past year, Robinhood has been exploring opportunities to expand internationally, aiming to find growth outside its domestic market.

9. HashKey Group Confirms Completion of Leadership Transition by Year-End link

HashKey Group issued an official statement announcing that its Chief Operating Officer and CEO of HashKey Exchange, Livio Weng, had submitted his resignation several months ago due to personal family reasons. He will complete the transition process and officially depart by the end of this year. HashKey has notified the Hong Kong Securities and Futures Commission (SFC) and made the necessary arrangements for personnel changes.

10. Meitu Sells Approximately 31,000 ETH and 940 BTC link

As of December 4, Meitu Inc. has sold all of its purchased cryptocurrency holdings, including approximately 31,000 Ethereum and 940 Bitcoin, with total cash proceeds of approximately $100 million and $80 million, respectively. Meitu stated that it made a profit of about $79.63 million from the cryptocurrency sale, and it plans to use around 80% of the proceeds to pay a special dividend.

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