Newsfeed

On 30 July 2024, the Seoul Central District Court made a landmark ruling in favor of Wemade CEO Park Kwan-ho, ordering the now-defunct virtual asset exchange GDAC to return 7.8 million WEMIX tokens, valued at approximately $7.31 million, to Park. This decision brings to light critical issues surrounding exchange operations, regulatory compliance, and investor protection in the unpredictable world of digital assets. The court's decision, which supports Park’s application for a temporary injunction filed on 29 July 2024, requires GDAC to comply within 30 days or face a daily fine of 3 million won after the deadline. The ruling dismisses GDAC’s allegations against Park of market manipulation and money laundering, raising questions about the exchange’s ability to maintain a 100% reserve ratio, contradicting its previous statements. GDAC's troubles began after a hacker attack in April 2022 resulted in losses of about 20 billion won ($14.48 million), which may have compromised the...

On July 30, 2024, the Securities and Exchange Commission (SEC) charged Nader Al-Naji, the founder of the BitClout blockchain protocol now known as Decentralized Social (DeSo), with perpetrating a multi-million-dollar fraudulent crypto asset scheme. Al-Naji, who adopted the pseudonym "Diamondhands" to evade regulatory scrutiny, is accused of defrauding investors through the unregistered offering of BitClout’s native token, BTCLT. According to the SEC’s complaint, Al-Naji began raising funds in November 2020, ultimately amassing over $257 million through unregistered offers and sales of BTCLT. He misled investors by claiming that the proceeds would not be used to compensate him or BitClout employees. Contrary to these assurances, Al-Naji allegedly diverted more than $7 million of investor funds for personal expenditures, including rental payments for a Beverly Hills mansion and extravagant cash gifts to family members. To further obscure his activities and avoid regulatory scrutiny,...

On 29 Jul 2024, the Securities and Futures Commission (SFC) issued a public warning regarding Proxinex, an entity suspected of engaging in virtual asset-related fraud. The alert comes in response to numerous reports from investors who have encountered significant difficulties when attempting to withdraw virtual assets from Proxinex. In many instances, investors were informed that their "accounts did not exist," raising serious concerns about the legitimacy of the platform. The SFC has uncovered troubling evidence that suggests Proxinex recruited an agent to entice investors to deposit funds via dating apps. This agent allegedly fabricated documents, including an income certificate purportedly issued by a financial institution in Hong Kong and a letter purportedly issued by a local financial regulator. These falsified documents were used to bolster the agent’s personal profile, thereby gaining the trust of potential investors and luring them into the fraudulent scheme. In response to...

On July 28, 2024, Moomoo announced it has secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), making it the first digital brokerage in Singapore to obtain a license for digital payment token services. This milestone allows Moomoo to operate as a regulated crypto business in the region. As a broker-dealer and custodian licensed by MAS (License No. CMS101000), Moomoo ensures that all its users can continue to deposit and withdraw in SGD or USD from their local bank accounts with zero fees. Additionally, the first 5,000 clients of Moomoo Crypto will enjoy 0% commission until September 30, 2024. Founded in 2018 as a subsidiary of Nasdaq-listed Futu Holdings, Moomoo debuted in Singapore in 2021, offering low-cost stock trading on its mobile app. Earlier this month, Futu also upgraded its Type 1 license in Hong Kong to include virtual asset dealing services. This upgrade enables Futu Securities to provide virtual asset dealing services to both...

On 29 July 2024, the Monetary Authority of Singapore (MAS) announced that Mr. Chee Hong Tat, the Minister for Transport and Second Minister for Finance, will be appointed Deputy Chairman of the MAS Board of Directors. This appointment, set to take effect from 23 August 2024, will run until 31 May 2027. Mr. Chee was previously appointed to the MAS Board on 1 June 2024, underscoring his rising influence within the organization. Mr. Chee's appointment marks another milestone in his illustrious career. Elected as a Member of Parliament for the Bishan-Toa Payoh Group Representation Constituency (GRC) in 2015 and re-elected during the 2020 General Elections, he has held several key positions. These include serving as Acting Minister for Transport and concurrently as Senior Minister of State for Finance since 12 July 2023. His experience spans various ministries, including Health, Communications & Information, Education, Trade & Industry, and Foreign Affairs. Born in 1973, Mr. Chee...

On 26 July 2024, the Swiss Financial Market Supervisory Authority (FINMA) released its latest guidance, “FINMA Guidance 06/2024,” addressing the burgeoning field of stablecoins. As these digital assets gain prominence, FINMA’s guidelines underscore the legal, financial, and reputational considerations for issuers and banking institutions. This guidance represents a forward-thinking approach, poised to significantly enhance the landscape of stablecoin regulation and cryptocurrency engagement in Switzerland. The guidance builds on FINMA’s 2019 supplement to the ICO guidelines, elucidating the regulatory nuances for stablecoin issuers. Stablecoins, designed to provide price stability through linkage to underlying assets such as national currencies, fall under banking law or collective investment schemes depending on asset management practices. These digital currencies must comply with the Anti-Money Laundering Act (AMLA), reinforcing the need for robust verification processes to...

On July 27, 2024, former U.S. President Donald Trump delivered the keynote address at the Bitcoin 2024 conference in Nashville, Tennessee, sending ripples through the cryptocurrency community and igniting a wave of bullish sentiment. With a packed audience and millions watching online, Trump passionately declared his ambition to transform the United States into the “crypto capital of the world.” His speech, filled with bold promises and visionary statements, significantly influenced social media and market reactions, positioning Bitcoin (BTC) as the focal point of positive speculation and optimism. By outlining a strategic plan that includes creating a national Bitcoin reserve and appointing a dedicated advisory council for cryptocurrency regulation, Trump vowed his commitment to integrating digital assets into the national economic framework, further solidifying Bitcoin's role in the financial landscape. Furthermore, declaring that Bitcoin would one day overtake gold, he highlighted...

As of 26 July 2024,  Japan is set to join the global trend of Bitcoin exchange-traded funds (ETFs) following the partnership between Japanese financial giant SBI Holdings and American investment powerhouse Franklin Templeton. According to a recent report by Nikkei Asia, the two firms are gearing up to introduce cryptocurrency management services to the world's third-largest economy, pending regulatory approval. On 25 July 2024, it was revealed that SBI Holdings and Franklin Templeton will establish a digital asset management company as early as this year. This joint venture, with SBI holding a 51% stake and Franklin Templeton the remaining 49%, is strategically positioned to launch a Bitcoin ETF in Japan once the Financial Services Agency (FSA) grants approval. Franklin Templeton, managing approximately $1.6 trillion in assets, has been a pioneer in digital assets, having been one of the first to introduce spot Bitcoin ETFs in the U.S. The timeline for launching Bitcoin ETFs in Japan...

On 25 July 2024, the Securities and Futures Commission (SFC) issued a stern warning to the public regarding an unlicensed virtual asset trading platform known as CoinUnited.io. The platform, which claims to provide trading services across a range of assets including cryptocurrency, stocks, indices, forex, and commodities, has also previously advertised having a flagship store in Hong Kong and being active in local hiring. Despite these claims, CoinUnited.io has neither obtained a license from the SFC nor applied for one, rendering its operations illegal under the Securities and Futures Ordinance (SFO) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. The SFC's action against CoinUnited.io is driven by several critical factors such as the platform's lack of licensing, its false claims about having a physical presence and recruitment efforts in Hong Kong, and the overarching need to protect investors. By operating without a license, CoinUnited.io is evading...

Revolut announced on 20 July 2023 that it has received a preliminary banking license from the UK’s Prudential Regulation Authority (PRA), marking a significant milestone in the fintech firm’s journey. This approval, which follows a rigorous three-year application process, represents a crucial step towards Revolut’s ambition to become a leading bank in the UK. "We are incredibly proud to reach this important milestone in the journey of the company and we will ensure we deliver on making Revolut the bank of choice for UK customers," said CEO Nik Storonsky in a statement. The approval from the PRA comes with certain restrictions during a "mobilization" stage before Revolut can obtain a full banking license. During this period, the fintech firm is limited to a £50,000 ($64,000) cap on total customer deposits. Revolut informed its UK-based customers, stating, "We are now entering a 'mobilization' period, a common regulatory stage for many new banks. During this period, we will complete...

On 24 July 2024, the Bank of Ghana (BoG) and the Monetary Authority of Singapore have completed a groundbreaking proof of concept (POC) demonstrating the viability of Ghana's central bank digital currency (CBDC), the e-cedi, for cross-border payments. This successful experiment has shown that many intermediaries and associated costs typically involved in international transactions can be eliminated, thus streamlining the process. Giesecke+Devrient (G+D), the technology partner for the Ghanaian central bank, announced that the POC confirmed the effectiveness of utilizing digital credentials for international trade and cross-border payments. The initiative is part of the Project Digital Economy Semi-Fungible Token (DESFT) and has proven that the e-cedi can be instrumental not only for domestic transactions but also for transforming cross-border payments. Earlier this year, in April, the Ghanaian and Singaporean central banks completed their first cross-border transaction using the...

CSOP Asset Management on 22 July 2024 announced the launch of Asia's first inverse Bitcoin exchange-traded fund (ETF), the CSOP Bitcoin Futures Daily (-1x) Inverse Product, set to debut on Hong Kong’s stock exchange on Tuesday. This innovative financial product allows investors to profit from declines in the value of Bitcoin, offering a new strategic option for those looking to navigate the volatile cryptocurrency market. Ding Chen, CEO of CSOP Asset Management, highlighted the potential of this product to attract investors seeking to capitalize on Bitcoin’s downside movements. "The first futures-based inverse bitcoin product listed in Hong Kong creates opportunities for investors to gain from downside movements in bitcoin," Chen stated. Bitcoin, known for its significant volatility, experienced a 12% drop in the second quarter following the debut of the first batch of spot crypto ETFs in Hong Kong in April. Despite recent rebounds driven by political developments in the U.S.,...