Asia's weekly TOP10 crypto news (Feb 26 to Mar 3)

Mar 03, 2024

1. South Korea’s Weekly Summary

1.1 South Korean Regulatory Agency Plans Meeting with Gary Gensler in May to Discuss NFTs and Cryptocurrency ETFs link

Currently, South Korea has not classified NFTs as “virtual assets” and plans to discuss with Gensler whether NFTs should be legally classified as virtual assets. Additionally, there are preparations to discuss the approval of spot Bitcoin ETFs in South Korea. At present, there are restrictions on local institutions launching cryptocurrency-related products, and brokerage firms are prohibited from offering overseas spot Bitcoin ETFs.

1.2 Ruling Party in South Korea Withdraws Commitment to Spot Bitcoin ETF Election link

The ruling party, People Power Party, has “indefinitely postponed” its plan to ease cryptocurrency restrictions in South Korea, including lifting the ban on local spot Bitcoin exchange-traded funds (ETFs). According to local news outlet Chosun Biz’s report on Wednesday, the party’s withdrawal from its commitment may stem from difficulties in coordinating with the government and financial authorities on cryptocurrency policies. Previously, News1 reported that the ruling party was considering incorporating cryptocurrency-related policies into its general election platform.

2. Hong Kong’s Weekly Summary

2.1 Financial Secretary of Hong Kong: Monetary Authority to Launch “Sandbox” in Short Term to Test Stablecoin Issuance link

Hong Kong Financial Secretary Paul Chan is currently presenting the latest fiscal budget in the Legislative Council. He mentioned the government’s proposal at the end of last year to establish a regulatory framework for stablecoin issuers, seeking public feedback. The goal is to establish a regulatory system that not only safeguards financial stability but also fosters innovation without hindrance. The Hong Kong Monetary Authority (HKMA) will introduce a “sandbox” in the short term, allowing institutions interested in issuing stablecoins to test the issuance process, business models, investor protection, risk management systems within a controlled environment, and communicate regarding future regulatory requirements.

2.2 Entities Without Virtual Asset Trading Platform License Application to Cease Operations in Hong Kong by End of May link

Hong Kong Securities and Futures Commission’s CEO, LEUNG Fung Yee Anita, stated that service providers who have not submitted license applications must cease operations in Hong Kong by May 31st. At an event, she emphasized that the SFC issued a circular in November last year regarding tokenized investment products, providing clear guidelines for intermediaries and private funds involved in tokenized securities activities, including due diligence and risk disclosure requirements. She reiterated that the regulatory principles for tokenized securities products are based on “same business, same risks, same rules.”

The deadline for submitting applications for the Hong Kong virtual asset regulatory platform license expired on February 29th. According to the official website of the Hong Kong Securities and Futures Commission, there are currently two licensed exchanges, namely Hashkey and OSL, with a total of 24 companies having submitted applications, including OKX, Bybit, HuobiHK, and others.

3. Official from Indonesia’s Cryptocurrency Regulatory Agency Urges Finance Ministry to Change Digital Asset Tax Rates link

Tirta Karma Senjaya, an official from Indonesia’s cryptocurrency regulatory agency Bappebti, has urged the Finance Minister to reconsider the tax rates on digital assets. Currently, cryptocurrencies are treated as commodities in this Southeast Asian country and are subject to value-added tax and income tax. With cryptocurrency regulation expected to be transferred to the broader financial services regulatory agency OJK by 2025, changes are anticipated.

Senjaya emphasized during Tuesday’s event that considering cryptocurrencies are set to join the financial industry in January 2025, he urges the Director-General of Taxes to review the current tax regulations. He pointed out that these regulations have been in place for over a year, and tax policies are typically reviewed annually.

4. China’s Supreme People’s Procuratorate: Xiao Sentenced to Prison for OTC Trading Outside of Exchange link

On February 24th, the official WeChat account of Chinese prosecutors under the Supreme People’s Procuratorate published an article stating that Mr. Xiao, despite knowing that the cash provided by “Da Shanghai” might be involved in illegal activities, engaged in off-exchange transactions, selling USDT at prices higher than the real-time market rate, and profited more than 6,000 yuan. Xiao’s actions constituted the crime of concealing and disguising criminal proceeds. He was sentenced to 3 years and 3 months in prison and fined 10,000 yuan.

Legal analysis: Once individuals are deemed by judicial authorities to have knowingly engaged in transactions with funds believed to be proceeds of crime, they are likely to be implicated in crimes such as aiding and abetting, concealing, and money laundering.

5. Cases Selected for China’s People’s Court Case Database Tend to Affirm the Property Nature of Virtual Currency link

Lawyer Liu Yang has summarized the key points of 11 typical criminal cases in the cryptocurrency circle collected in the People’s Court case database. These cases often involve six types of charges including fraud, robbery, and running gambling operations. The biggest controversial issue revolves around whether virtual currency possesses the property of wealth under criminal law. Currently, the cases selected by the People’s Court database tend to affirm the property nature of virtual currency. This marks a significant departure from previous court judgments and may indicate a shift in future rulings regarding similar cases.

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6. SlowMist Assists Taiwan Police in Cracking Down on Cryptocurrency Fraud Case link

The AML team at SlowMist announced that they recently assisted the Taiwan Criminal Investigation Bureau, the Judicial Reform Foundation, and the XREX trading platform in successfully uncovering a cryptocurrency fraud case. This case may mark a milestone in Taiwan’s judicial history as it is potentially the first instance where advanced blockchain tracking technology was used to trace illegal fund flows and cryptocurrency asset owners without specific suspect information or defendant identities. The team collaborated with law enforcement agencies to freeze and seize assets, ultimately returning the funds to the victims.

7. Canaan Releases Fourth Quarter 2023 Financial Report, Revenue Exceeds Expectations link

Canaan Creative has released its unaudited financial report for the fourth quarter and full year of 2023. According to the report, in the fourth quarter, Canaan’s total revenue amounted to $49.1 million, significantly exceeding the expected revenue of $34 million, marking a 47% increase compared to the third quarter of 2023. The total hash rate sold during the quarter reached 5.5 million TH/s, showing a 191.9% year-on-year increase compared to the fourth quarter of 2022, and a 45.7% increase compared to the third quarter of 2023.

As for the full year of 2023, the key financial figures are as follows: the total hash rate sold amounted to 19.6 million TH/s, representing a 29.6% increase compared to 2022’s 15.1 million TH/s; revenue stood at $2.115 billion, showing a decline from $6.515 billion in 2022; mining revenue reached $34 million, up from $32.5 million in 2022.

8. HSBC Hong Kong Considers Introducing Tokenization Technology to Provide Clients with Virtual Asset Investment Opportunities link

Sami Abouzahr, Head of Wealth Management and Personal Banking Investment at HSBC’s Hong Kong Wealth Management Division, revealed that HSBC is exploring the integration of tokenization technology to offer clients opportunities in both traditional and virtual asset investments. The bank aims to ensure that these products comply with regulatory requirements and may not necessarily target only professional investors. Additionally, HSBC will continue to enhance its digital channel services, enabling clients to manage their finances more conveniently through mobile and other platforms.

9. Binance Becomes Sole Web3 Award Winner in 2023 Hong Kong Network Security Elite Commendation Program link

On February 29th, the “Cyber Security Elite Commendation Scheme,” jointly organized by the Hong Kong Police Force, the Hong Kong Computer Emergency Response Team Coordination Centre, and the Hong Kong Computer Security Incident Coordination Centre, held its 4th award ceremony. Among them, Binance announced that it was honored with an Outstanding Award in the banking and finance category, serving as the sole representative of Web3 enterprises to receive recognition this year. Carlos Mak, a member of the Binance investigative team, remarked, “Binance believes that close collaboration with law enforcement and regulatory agencies is indispensable in combating illicit activities in the industry. We are delighted to contribute to cybersecurity alongside Hong Kong law enforcement officers.”

10. SlowMist Founder Cos Recommends Wallet Signature Security Solutions link

SlowMist founder, Cos, recommends a secure wallet signing solution: utilize secure browser wallet extensions such as Scam Sniffer, Pocket Universe, Wallet Guard, and others. For mobile environments, it’s advisable to pair with Rabby Wallet. Consider using hardware wallets like Keystone, OneKey, or imKey. Preferably, opt for an iPhone for enhanced security. Rabby demonstrates excellent user interaction security and serves as a reliable “firewall.” The core idea revolves around a “firewall” approach. Given the value of your wallet, adding an extra layer of protection is crucial.

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