Asia’s weekly TOP10 crypto news (July 15 to July 21)
1. Hong Kong Regulatory News This Week
1.1 On July 23, HKEX to Launch Asia’s First Inverse Bitcoin Product link
Wu Blockchain exclusively reports that on July 23, the Hong Kong Stock Exchange will list Asia’s first inverse Bitcoin product, officially named the CSOP Bitcoin Futures Daily Inverse (-1x) Product (7376.HK). This product directly invests in the nearest-to-expiry monthly Bitcoin futures traded on the Chicago Mercantile Exchange, with HSBC Institutional Trust Services (Asia) Limited acting as the trustee.
1.2 Hong Kong Monetary Authority Announces Institutions Participating in the Stablecoin Issuer “Sandbox” Program link
The Hong Kong Monetary Authority (HKMA) has announced the list of institutions participating in the Stablecoin Issuers “Sandbox” program. The participants include JD Chain Technology (Hong Kong) Co., Ltd.; Circle Innovation Technology Co., Ltd.; Standard Chartered Bank (Hong Kong) Limited, Animoca Brands Limited, and Hong Kong Telecommunications Limited (jointly). The HKMA stated that these institutions have demonstrated genuine interest and reasonable plans to develop stablecoin issuance businesses in Hong Kong. Launched in March 2024, the “Sandbox” program aims to promote the sustainable and responsible development of Hong Kong’s stablecoin ecosystem. Participants must adhere to the “Sandbox” requirements, initially without involving public funds, and are prohibited from raising funds or offering related products to the public under the “Sandbox” name. The HKMA will announce any new participants as appropriate.
2. South Korea Regulatory News This Week
2.1 South Korea’s First Comprehensive Cryptocurrency Law Takes Effect link
South Korea’s first comprehensive cryptocurrency regulatory framework has come into full effect, focusing on ensuring the safety of cryptocurrency investors. The new law, the Virtual Asset User Protection Act, was officially approved on July 18, 2024, and includes a one-year grace period to refine regulatory details. The act imposes stricter requirements on digital asset exchanges, mandating that service providers store at least 80% of users’ cryptocurrency deposits in cold wallets separate from their own funds. Exchanges must also entrust users’ cash deposits to local licensed banks and maintain cryptocurrency reserves equivalent to the number and type of customer deposits. Additionally, the act requires exchanges to establish real-time monitoring systems and report potentially illegal irregular trading activities.
2.2 South Korea May Postpone Cryptocurrency Tax Implementation to January 2028 link
The South Korean government and ruling party are considering postponing the taxation of cryptocurrency investment gains from January 2025 to January 2028. The Ministry of Finance has not yet made a final decision, and an amendment to next year’s tax laws is expected to be released by the end of this month. The implementation of the cryptocurrency capital gains tax has already been delayed twice, primarily due to concerns about the burden on crypto investors and potential market disruption.
3. Russia Considers Allowing Major Licensed Domestic Exchanges to Offer Digital Currency Trading Services link
The Russian Ministry of Finance has proposed allowing licensed exchanges, such as the Moscow Exchange and the Saint Petersburg Exchange, to offer digital currency trading services to certain qualified investors. Anatoly Aksakov, chairman of the State Duma Financial Markets Committee, believes that Russia’s largest exchanges are ready to handle cryptocurrency trading and emphasized that once the legal framework is established, these exchanges should be able to start crypto trading immediately without any issues. Additionally, the State Duma is considering a bill that would authorize the Central Bank to create an experimental platform for international settlements using cryptocurrency starting from September 1.
4. Yellen Expresses Concerns Over Russia Using Cryptocurrency to Evade Sanctions link
U.S. Treasury Secretary Janet Yellen has expressed concerns about Russia using cryptocurrency to evade sanctions. She noted that the Treasury Department is “very concerned” about Russia’s use of cryptocurrency. Although this is not a significant issue at present, it could become more troubling as sanctions intensify. Recently, the Central Bank of Russia suggested that businesses use cryptocurrency and digital assets to mitigate the impact of Western sanctions.
5. UN Report: North Korean Hackers Infiltrate Crypto Industry Through Fake Job Applications, Earning $600 Million Annually link
A UN report reveals that North Korean hackers are infiltrating the cryptocurrency industry by impersonating job seekers. These fraudulent recruitment schemes reportedly earn North Korea up to $600 million annually, with approximately 4,000 North Koreans attempting to conceal their identities to enter Western tech sectors, including the crypto industry. Over the past seven years, North Korean hackers have stolen cryptocurrency assets worth $3 billion through 58 cyber thefts. Experts warn that this trend might be in its early stages, posing new security challenges for the crypto industry. Taylor Monahan, Chief Security Researcher at MetaMask, noted that North Korea generates revenue through illegal activities such as resource sales, IT jobs, manual labor, and hacking. With the rise of Bitcoin ETFs, Wall Street has recognized cryptocurrency as an asset class, leading to a surge in recruitment demands in the crypto sector. However, the influx of fraudulent job applicants has complicated hiring processes.
6. Chinese OTC Operator Sentenced to Three Years, Fined 5 Million RMB for Illegal Operations link
According to Huoxiaolu, the defendant, Mr.He, was sentenced to three years in prison and fined 5 million yuan by the Chongqing Yubei District People’s Court for illegally engaging in funds payment and settlement services on a virtual currency trading platform, making profits through arbitrage. The Chongqing First Intermediate People’s Court recently upheld this ruling, rejecting the appeal. Huoxiaolu noted that Chongqing has been relatively aggressive in handling cryptocurrency cases, and it is anticipated that other regions may follow this precedent.
7. Bitrace: Address with 29.62 Million USDT Frozen Linked to Cambodia’s Huione Guarantee Group link
On July 13, Tether froze over $29.62 million USDT in the Tron address TNVaKW. According to blockchain data analysis firm Bitrace, this address was used by Cambodian Huione Guarantee Group starting from July 9 for collateral-related activities. The freezing was likely due to involvement in fraudulent activities and money laundering. Huione Guarantee has since activated a new business address, TQuFSv, and transferred $114,800 USDC from the frozen TNVaKW address.
Beosin reported that the frozen address TNVa…4Ug8 on July 13 was a hot wallet address used by Huione Guarantee for payments on July 14. The group operates several businesses involved in criminal activities, including Huione Guarantee, Huione Payments, and Huione Gambling. After activating the new hot wallet address TQuF…5RSa, Huione Payments experienced a surge in user withdrawals, leading them to draw significant funds from address TYCD…PPPP.
ZachXBT reported that $35 million from the DMM Bitcoin hack was laundered through Huione. Due to similarities in laundering methods and off-chain indicators, there are suspicions that the Lazarus Group might be behind the attack. Huione Guarantee has become a major center for illegal funds in Southeast Asia, used by scam organizations such as pig-butchering gangs, with Elliptic reporting an involvement amounting to $11 billion.
8. Trip.com Announces Termination of Its First NFT Series, Trekki, Effective August 1, 2024 link
Trip.com’s inaugural NFT series, Trekki, will officially conclude as of August 1, 2024. Development of all functionalities in the second phase of Trekki NFTs will cease, and all associated community operations and collaborative activities will be terminated. Launched in 2023, the Trekki series features 10,000 NFTs themed around cartoon dolphins.
9. ZA Bank Provides Exclusive Reserve Banking Services for Stablecoin Issuers link
Hong Kong’s digital bank ZA Bank has announced the introduction of exclusive reserve banking services for stablecoin issuers, positioning itself as one of the first banks in Hong Kong to offer such services. Yuan Coin is the inaugural stablecoin issuer to benefit from ZA Bank’s reserve banking services. ZA Bank is currently negotiating partnerships with nearly ten stablecoin firms and is committed to supporting the development of Web3. The bank will continue to align with government policies, launching additional services and products to bolster Hong Kong’s standing as an international virtual asset hub.
10. Bloomberg Issues Apology for Article Titled “Changpeng Zhao’s Ponzi Scheme” link
Bloomberg Businessweek/Chinese Edition has issued a statement acknowledging a serious error in its 250th issue (dated July 6, 2022). The magazine had published a false and unfounded cover headline, “Zhao Changpeng’s Ponzi Scheme.” The publication has unequivocally retracted and apologized for this offensive statement, extending its apologies to Mr. Zhao Changpeng and Binance. It remains uncertain whether this statement from Bloomberg is related to any legal proceedings.
Follow us
Twitter: https://twitter.com/WuBlockchain
Telegram: https://t.me/wublockchainenglish
