Asia's weekly TOP10 crypto news (May 20 to May 26)

May 26, 2024

1. Bitcoin Reaches All-Time Highs in Local Currencies in Japan, Argentina, and the Philippines link

According to CMC data, BTC reached an all-time high of 11.2 million yen during early trading on May 21 in Japan, surpassing 11 million yen for the first time. In Argentina, Bitcoin prices also peaked, reaching 63.8 million Argentine pesos (ARS), slightly above the mid-March peak. Additionally, Bitcoin prices in the Philippines hit a record high of 4.18 million pesos (PHP).

2. Hong Kong Regulatory News This Week

2.1 Hong Kong Securities and Futures Commission in Talks to Allow Ethereum ETF Issuers to Stake link

The Hong Kong Securities and Futures Commission (SFC) is currently in discussions to allow Ethereum ETF issuers to engage in staking. In contrast, recent 19b-4 filings by U.S. Ethereum ETF issuers have indicated that they will not participate in Ethereum staking. However, trading volume for Ethereum ETFs in Hong Kong remains quite lackluster.

2.2 Hong Kong Police Arrest Over 100 in HK$180 Million Fraud Case link

Hong Kong’s Sham Shui Po Police District launched Operation “Broad Summit” to combat fraud and money laundering, resulting in the arrest of 100 individuals, most of whom were puppet account holders. The operation uncovered proceeds from 82 fraud cases amounting to HKD 180 million. The largest case involved over HKD 20 million in a cryptocurrency investment scam.

2.3 Office Rules Worldcoin’s Operations in Violation of Hong Kong Privacy Ordinance link

The Office of the Privacy Commissioner for Personal Data (PCPD) has completed its investigation into the Worldcoin project. Privacy Commissioner Ada Chung Lai-ling determined that Worldcoin’s operations in Hong Kong violated the Personal Data (Privacy) Ordinance. The PCPD issued an enforcement notice requiring Worldcoin to cease collecting citizens’ iris and facial images using iris scanning devices. The PCPD conducted ten undercover operations at Worldcoin’s six operating points in Hong Kong from December last year to January this year. At the end of January, they entered the relevant operating points with court warrants to investigate further. After two rounds of inquiries, the investigation was completed. Worldcoin confirmed that during its operations in Hong Kong, it conducted facial and iris scans on 8,302 individuals.

3. Reserve Bank of India Warns Retail Investors About the Lack of Responsibility and Stability in Cryptocurrencies link

The Reserve Bank of India (RBI) has released its monthly bulletin for May 2024. The bulletin addresses the significant impact and inherent risks of decentralized finance (DeFi) and cryptocurrencies on the financial system. It states that interest in cryptocurrencies is driven by speculative motives rather than their use as a means of payment for real economic transactions. The bulletin emphasizes that the lack of accountability and stability within the crypto ecosystem, coupled with unclear regulatory frameworks, necessitates greater caution from retail investors. Previously, the RBI had asserted that private virtual assets pose macroeconomic risks.

4. Malaysian Police Uncover Crypto Money Laundering Scam link

Recently, Malaysian law enforcement officers arrested ten suspects involved in money laundering using cryptocurrency, seizing assets valued at over $7.7 million, including cars, and freezing bank accounts holding approximately $10.8 million. Malaysian Inspector-General of Police, Tan Sri Razarudin Husain, disclosed that the arrested individuals, consisting of eight men and two women aged between 28 and 51, utilized unregistered money exchangers and cryptocurrency exchanges to transfer illicit funds from abroad into Malaysia.

5. Taiwanese Man Arrested in the U.S. for Operating Dark Web Drug Market, Traded Over $100 Million in Crypto link

U.S. authorities have arrested a 23-year-old Taiwanese national, Rui-Siang Lin, who is accused of operating the dark web drug market known as “InvisiMarket.” Lin is alleged to have facilitated over $100 million in cryptocurrency transactions through the market, involving illegal drugs such as fentanyl. He reportedly earned millions of dollars by taking a 5% commission on each sale. According to the indictment, Lin created and operated InvisiMarket while pursuing his undergraduate studies at National Taiwan University.

6. DeSpread Releases Report on South Korean Crypto Community link

DeSpread released a report on the South Korean crypto community, highlighting that Telegram is the most commonly used platform, unlike Twitter, which is more popular in China and Japan. The report also notes that in South Korea, token search volume exceeds that of stocks by 25%, whereas in the United States and Japan, stock searches outnumber token searches by 20 times and 7 times, respectively. Research on the 110 most active Telegram channels revealed that the top four high-frequency keywords are Bitcoin, NFT, airdrop, and Ethereum. CoinNess, Naver, and Blockmedia are identified as the most common sources of cryptocurrency information in South Korea.

7. Montenegro Court Revokes Order to Extradite Terraform Labs Founder Do Kwon to South Korea link

The court in Montenegro revoked the extradition order for Do Kwon, founder of Terraform Labs, to South Korea on Friday. Previously, both the United States and South Korea had requested Do Kwon’s extradition. The Montenegro Court of Appeals stated in a declaration that the case would be returned to the first-instance court for reconsideration and decision. Montenegro’s Minister of Justice discussed the Do Kwon case with representatives from the U.S. SEC on Wednesday. Currently, Do Kwon remains in Montenegro.

8. Bitcoin World Virtual Asset Trading Platform License Approved by Hong Kong SFC link

Hong Kong-listed company Bit Universe (08645.HK) has announced that the Securities and Futures Commission of Hong Kong has accepted the license applications submitted by its wholly-owned subsidiary, Bitcoin World Technology Limited. These applications pertain to conducting Type 1 (dealing in securities) and Type 7 (providing automated trading services) regulated activities. The board of directors of Bit Universe believes that obtaining regulatory approval for Bitcoin World’s operation of a virtual asset trading platform aligns with the company’s strategy to offer more diversified services to investors. It is expected to create opportunities for synergies among the various business lines of the group, thereby exploring new sources of revenue.

9. OKX HK and Gate HK Withdraw VASP License Applications link

OKX HK has announced the withdrawal of its VASP license application, citing a careful consideration of its business prospects. As per regulatory requirements, OKX will cease to provide centralized virtual asset trading services to Hong Kong users after May 31. However, withdrawals for Hong Kong users will still be supported. OKX’s Web3 (self-hosted wallet) product services remain unaffected.

Gate HK also withdrew its virtual asset trading platform license application submitted to the Hong Kong Securities and Futures Commission on May 22. In their announcement, Gate HK stated that they voluntarily withdrew the application for the virtual asset trading platform license. The company listed as the operator of the virtual asset trading platform in the application was “Gate Digital Limited”. Gate HK initially submitted its application for the virtual asset trading platform license to the Hong Kong Securities and Futures Commission on February 28, 2024.

The transition period for Virtual Asset Service Providers (VASPs) in Hong Kong is set to end at the end of this month. The Securities and Futures Commission will decide whether existing service providers can continue operations beyond June. Recently, several platforms have withdrawn their Hong Kong license applications. Former Chairman of the Hong Kong Computer Society and Convener of the WebX Industry Alliance, Hui Kin Sang, believes that operating a trading platform in Hong Kong is costly, including license fees and hiring personnel. Existing platforms in Hong Kong have not seen significant growth in trading volume compared to overseas platforms, which have better liquidity and attract international clients. Additionally, the local market may not accommodate numerous license applicants. Large international platforms may have mature overseas operations but could face profitability issues in the local market, prompting them to withdraw their applications.

10. NFT Project 2426C Led by Edison Chen Allegedly Collapses, Remains Inactive for an Extended Period link

According to Superme Intelligence Network, the NFT project 2426C, led and planned by Edison Chen in February 2022, appears to have collapsed and has been inactive for an extended period. Both the official Twitter account and Instagram of 2426C have not posted any updates since April 6, 2023. Some users have inquired on Edison Chen’s personal Twitter and Instagram accounts but have not received any responses. Several NFT series under 2426C have zero liquidity, with reports indicating that a rare type of NFT was once purchased for 18.88 ETH, but the current highest bid is only 0.025 ETH.

Superme Intelligence Network noted that the total revenue from NFT sales promoted by Edison Chen in the past amounted to approximately 38 million RMB. Additionally, besides Edison Chen, NFT projects endorsed by other celebrities such as Shawn Yue are also nearing negligible activity levels.

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