Asia's weekly TOP10 crypto news (Oct 16 to Oct 22)

Oct 22, 2023

Author：0xMingyue

Editor：Colin Wu

1. Singapore Attorney-General’s Office Establishes a Task Force for Digital Currencies this Year link

On October 18th, as reported by The Straits Times, the Attorney-General’s Office of Singapore officially established two task forces this year, namely the Technology Crime Task Force and the Cryptocurrency Task Force, which will focuse on various issues raised by cryptocurrencies, including assisting the Singapore Police Force in tracking, seizing and disposing of such assets.

2. South Korea’s Weekly Summary

2.1 South Korean Financial Regulatory Authorities to Establish Protocols for Cryptocurrency Listings, Internal Management, and Circulation Standards link

On October 17th, South Korean financial regulatory authorities, in accordance with the supplementary guidelines of the Virtual Asset User Protection Act established in June of this year, are set to formulate standards for cryptocurrency listing procedures, internal controls, supply/circulation volume, and other criteria. The summary of these standards is expected to be published around January of the coming year. The Financial Supervisory Service has indicated that the ongoing research and service plans take into account international regulatory frameworks and overseas cases of cryptocurrency discipline, and that regulatory requirements will be incorporated as necessary, based on investigations and feedback collected from the cryptocurrency industry.

2.2 The Ministry of Education in South Korea Plans to Formulate Guidelines for Accounting Treatment of Donations in Virtual Assets link

On October 17th, according to Herald, the South Korean Ministry of Education intends to establish guidelines for the accounting treatment of cryptocurrency donations. The Ministry of Education in South Korea has stated that they will promptly create guidelines for universities once the Ministry of Finance confirms the “Virtual Asset Accounting Supervision Guidelines.” The Ministry of Education in South Korea mentions that if universities receive donations in the form of assets other than cash (such as stocks), they can be assessed and recorded at their fair market value at the time of the donation.

2.3 The Head of the Financial Supervisory Service in South Korea Will Investigate SUI for Possible Manipulation of Circulation Through Collateral or Improper Disclosure link

On October 17th, according to South Korean blockchain media blockmedia, Lee Bok-Hyun, the head of the South Korean Financial Supervisory Service, responded to inquiries regarding the SUI token raised by members of the National Assembly. He stated that if there is content equivalent to manipulating circulation through staking or undisclosed practices, it must be corrected, and it will be investigated after confirmation at the level of the Financial Regulatory Authority and the alliance of digital asset exchanges. Previously, KOL DeFi² accused the Sui team of distorting the token’s supply and dumping rewards from “locked” and “non-circulating” staked SUI on Binance.

In response to the allegations of manipulating token supply, the Sui Foundation issued a tweet stating that after the initial Community Access Program (CAP) allocation, the foundation has never sold any SUI tokens. The circulating supply schedule displayed on the Sui Foundation’s public website and obtainable through public API endpoints is accurate. Apart from the above situation, the Sui Foundation has never liquidated any SUI tokens, including staking rewards. Every transfer of SUI tokens by the Sui Foundation is publicly visible and verifiable on the blockchain. The Sui Foundation has maintained consistency and transparency in communicating the schedule of SUI token circulation supply.

3. Hong Kong’s weekly summary

3.1 BC Technology Group in Hong Kong Explores Potential Sale of Its Cryptocurrency Platform OSL link

On October 16th, according to Bloomberg, sources revealed that BC Technology Group in Hong Kong is exploring the sale of its cryptocurrency platform OSL. They have assessed the interest of industry participants and funds as potential buyers, and an estimated valuation of 1 billion Hong Kong dollars (approximately 128 million US dollars) has been proposed. However, BC Technology may decide to sell only a portion of OSL’s business rather than the entire business. Negotiations are currently underway, but there is no guarantee of reaching an agreement. OSL is one of only two exchanges in Hong Kong that obtained licenses under the digital asset regulations introduced in June.

The following day, BC Technology Group in Hong Kong issued an announcement stating that the report by Bloomberg about them considering the sale of their cryptocurrency platform OSL contains misleading content and statements that are not consistent with the facts.

3.2 Subsidiaries of Tiger Brokers and Futu Holdings Seek to Apply for VASP Licenses in Hong Kong link

On October 20th, according to Nikkei Asia, subsidiaries of Tiger Brokers and Futu Securities are attempting to apply for a Virtual Asset Service Providers (VASP) license in Hong Kong. In April, the head of the Institutional Business Department of Tiger Brokers (Hong Kong), Chen Jixian, expressed the bank’s intention to apply for a cryptocurrency trading license in response to customer demand for cryptocurrency trading services.

3.3 Hong Kong Regulatory Authorities Update Policies on Virtual Asset Activities, Introducing Two New Investor Protection Measures link

On October 20th, the Securities and Futures Commission of Hong Kong updated its policy on virtual asset activities, introducing two additional investor protection measures. Firstly, sales restrictions: virtual asset-related products deemed to be complex should only be sold to professional investors. Secondly, virtual asset knowledge assessment: intermediaries should assess the relevant knowledge of customers who are non-professional investors, and if lacking, provide sufficient training.

3.4 The Hong Kong Securities and Futures Commission Focuses on the Tokenization Potential During FinTech Week link

On October 19th, according to Ming Pao, Huang Lexin, the Deputy Chief Executive Officer and Executive Director of the Intermediaries Division and the head of the Fintech Group at the Securities and Futures Commission (SFC) of Hong Kong, mentioned that during Fintech Week, the SFC will focus on tokenization, as they recognize its potential to enhance efficiency in the insurance and settlement product lifecycle. She also noted that financial institutions have been conducting pilot projects related to tokenization and traditional assets, which are expected to help the industry make progress in scalable and interoperable tokenization solutions.

4. Taiwanese Virtual Asset Platforms Prepare to Establish an Association, With Plans to Submit Their Application in Mid-November link

On October 19th, as reported by United News Network, Taiwan’s Ministry of Economic Affairs announced a 60-day advance notice for the establishment of the “virtual currency business” category, which will be submitted to the Ministry of the Interior for further approval. The preparatory group for the Virtual Asset Service Provider (VASP) Association in Taiwan is actively discussing the association’s structure and planning to submit their application in mid-November. The 13 items of preliminary consensus include categorizing exchanges, wallets, and other businesses, as well as the association’s fee structure, annual fees, and more. Both domestic and foreign companies are required to join the association after submitting their anti-money laundering declarations.

5. The Japan Cryptocurrency Business Association Proposes Relaxing Leverage Limits for Cryptocurrency Margin Trading link

On October 17th, as reported by Coinpost, the Japan Cryptocurrency Business Association (JCBA) submitted a proposal for amending the leverage rate for cryptocurrency margin trading to the Japan Virtual Currency Exchange Association (JVCEA). The JCBA pointed out that the current regulatory leverage rates are excessive compared to other derivative (financial derivative) markets. They proposed changing the calculation method based on past price fluctuations and requested that the JVCEA cooperate in implementing the revised proposal. The JCBA stated that the modified leverage rates aim to attract users who moved to overseas exchanges in search of higher leverage to return to Japan.

Initially, the maximum leverage for individual cryptocurrency margin trading was set at 25 times, which was later reduced to 4 times and then further lowered to 2 times. The association proposes introducing a leverage rate based on price volatility calculations, raising it to 4–9 times.

This post is sponsored by oracle project Supra. Supra tokens are about to go on public sale. Supra said it received investment from prominent VCs such as Coinbase Animoca Hashed. https://supraoracles.com/public-sale/

WuBlockchain does not provide any financial advice. Readers are requested to strictly abide by local laws and regulations.

6. Filipino Cryptocurrency Exchange Coins.ph Falls Victim to a Cyberattack, Suffering Losses Exceeding 12 Million XRP link

On October 20th, according to a report by TheBlock, the Philippine cryptocurrency exchange Coins.ph appeared to have suffered an attack on Tuesday, resulting in the loss of over 12 million XRP tokens (approximately 6 million USD). The hacker transferred the stolen tokens through exchanges such as OKX, WhiteBIT, OrbitBridge, SimpleSwap, ChangeNOW, and Fixed after the theft.

7. HTX Records Approximately $24.75 Million in Revenue for the Third Quarter link

On October 19th, HTX(Huobi) announced that they burned a total of 2,062,217 Huobi Tokens (HT) in the third quarter of 2023. Huobi allocates 20% of its overall revenue for HT token burns. This suggests that Huobi’s revenue for the third quarter was approximately $24.75 million. In the first two quarters, Huobi’s revenue was $16.55 million and $26.91 million, respectively.

8. The Mainland of China’s Weekly Summary

8.1 Central Bank Governor Asserts Firm Stance Against Speculative Trading of Virtual Currencies in the Country link

On October 21st, in the “Report on the Work of the Government,” the Governor of the People’s Bank of China, Pan Gongsheng, mentioned that over the past year, they have taken strict measures against illegal financial activities. They have intensified efforts to address risks such as “pseudo exchanges” and third-party wealth management companies, cracked down on illegal fundraising, and resolutely curbed domestic virtual currency trading speculation. They will continue to increase their efforts to investigate money laundering cases. In the next steps, they plan to further intensify efforts against illegal financial activities, strengthen monitoring and early warning, enhance financial education, and maintain a high-pressure crackdown on money laundering and underground banks.

8.2 Legal Experts: China’s Blockchain Industry Encounters Three Principal Regulatory Boundaries link

On October 16th, Attorney Liu Honglin from Shanghai Mankun Law Firm stated that in his opinion, there are three main red lines in the Chinese blockchain industry. First, it involves illegal fundraising under the guise of virtual currencies, including fundraising through virtual currencies or traditional fiat currencies. Second, it pertains to virtual currency exchange businesses. Third, it involves engaging in virtual currency mining operations within the context of current environmental protection and carbon reduction goals. Engaging in these three types of businesses in China may carry significant risks.

9. Employment Law Counsel Explores Potential Labor Law Liabilities in Recent Bitmain Events link

On October 18th, a labor law expert provided an interpretation of recent events involving Bitmain. They pointed out that in cases of delayed wage payment, there should be a formal procedure involving the approval of the labor union, and there’s a 30-day limit for such delays. If Bitmain didn’t follow this procedure internally, the delayed wage payment could potentially be considered unjustified, leading to legal labor risks. Regarding the dismissal of employees, it should comply with the requirements that “the content of the rules and regulations is legal, reasonable, and specific.” If the law doesn’t specify, and the behavior doesn’t fall under the category of serious violations or misconduct according to social norms, the employer cannot terminate an employment contract on the grounds of serious rule violations. On October 18th, Bitmain’s co-founder Micree Zhan posted on his WeChat Moments, “When salaries are paid is a normal business management decision, and there’s no need for outsiders to intervene,” but he later deleted this post. Earlier, Bitmain had delayed September salaries and terminated the contracts of employees who were spreading news about it.

10. Senior Executive at Meitu: AI Emerges as a Catalyst for Growth, No Immediate Plans for Cryptocurrency Portfolio Adjustments link

On October 16th, according to Sing Tao Daily, Meitu previously reported a turnaround in its performance, and Kang Yicong, Meitu’s Senior Investor Relations Manager, stated that the company’s growth is being driven by its AI business. As for the market’s focus on cryptocurrency investments, she disclosed that the company would consider selling them at the appropriate time, but there are currently no specific plans for disposal. With the recent recovery in the cryptocurrency market, Meitu has reversed approximately 190 million Chinese yuan in devaluation losses from its cryptocurrency holdings. The company has essentially refrained from making additional cryptocurrency purchases since 2021, as those purchases were made for strategic reasons, and no further actions have been taken since then.

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