Asia's weekly TOP10 crypto news (Jun 12 to Jun 18)

Author：Crescent

Editor：Colin Wu

1. Mainland of China’s Weekly Summary

1.1 Shanghai Science and Technology Commission’s Action Plan for Metaverse-related Technology Research link

On June 14th, the Shanghai Science and Technology Commission issued the “Key Technology Research and Development Action Plan for the Metaverse in Shanghai (2023–2025)”. The main focus of the plan is on immersive technology and Web3 technology. The aim is to build a new architecture for blockchain systems that supports multi-chain integration and digital regulatory technology, and to develop middleware and toolchains compatible with underlying blockchain systems. The plan emphasizes research on key technologies such as digital identity, distributed storage, and trusted computing chips, in order to achieve high-performance, scalable, and secure infrastructure. The goal is to promote the development of innovative applications in the metaverse.

1.2 Supreme People’s Procuratorate: Strengthening the Punishment for New Types of Illegal Fundraising in the Blockchain and Other Fields link

On June 13th, according to Pengpai News, the Supreme People’s Procuratorate (SPP) of China stated that it will strictly crack down on new types of illegal fundraising in areas such as online lending, private equity funds, pensions, and blockchain, in accordance with the law. The SPP, in conjunction with relevant departments, has listed 43 major cases for supervisory investigation. Since 2018, more than 110,000 people have been prosecuted for illegal fundraising. There is increased focus on criminal activities related to financial “innovation” and the illicit financial industry, and efforts will be intensified to enforce criminal punishment and recover ill-gotten gains.

1.3 Chengdu Development and Reform Commission SMS Announcement: Cryptocurrency Mining Classified as Illegal Financial Activity link

The Chengdu Municipal Development and Reform Commission recently sent a group text message announcement: According to relevant national regulations, “virtual currency mining activities” belong to the category of “outdated production processes and equipment” to be eliminated by the state. The related business activities are considered illegal financial activities, and individuals involved may face loan cutoffs, power outages, internet disconnections, credit risks, and legal liabilities. The party discipline and government discipline responsibilities of those involved will be investigated together. Civil legal actions related to investing in virtual currencies and their derivatives are considered invalid, and any resulting losses are to be borne by the individuals themselves.

1.4 “Domestic Couple Divorce and Division of Virtual Currency Assets: Huobi Freezes Assets as Required by the Court” Case, Court Upholds Original Verdict in Second Instance link

In the previously reported case of “Division of Virtual Currency Assets in Divorce between Chinese Couples, Huobi Freezes Assets as Ordered by the Court,” the court upheld the original judgment in the second trial. The court stated that the property disputes arising from the divorce between the couple are civil legal relationships protected by Chinese law. The act of purchasing and transferring virtual currency has a substantial impact on the joint property rights of the couple. Therefore, it was required to calculate their jointly held property based on the market price of the transferred virtual currency on the day of the transfer.

2. Hong Kong’s weekly summary

2.1 Bank of China International Announces the Issuance of Hong Kong’s First Tokenized Security on Ethereum link

On June 12th, Zhong Yin International, a subsidiary of China Bank, announced the successful issuance of 200 million RMB worth of fully digital structured notes, becoming the first Chinese financial institution to issue tokenized securities in Hong Kong. The product was developed by UBS and targeted at clients in the Asia-Pacific region. According to the official press release, this transaction marks the first tokenized product of its kind in the Asia-Pacific region, complying with both Hong Kong and Swiss laws and tokenizing regulated securities on the main Ethereum blockchain. UBS stated its intention to further expand its tokenization services through UBS Tokenize, covering structured products, fixed income, and repurchase financing.

2.2 Hong Kong’s Top Financial Regulatory Authority Holds Second Meeting to Encourage Greater Bank Participation link

According to Bloomberg, Hong Kong’s top financial regulatory authority held a meeting on June 12th with industry participants, including banks and cryptocurrency platforms. The discussions primarily focused on addressing the ongoing challenges faced by crypto companies in opening bank accounts. This marks the second meeting since late April aimed at encouraging greater participation from banks. A spokesperson from the Hong Kong Monetary Authority stated that the central bank “maintains close dialogue with the banking industry and relevant stakeholders on various topics on an ongoing basis.”

2.3 Hong Kong Monetary Authority Encourages Banks to Embrace Cryptocurrency Exchanges as Clients link

According to a report by the Financial Times (FT), during a meeting in May, the Hong Kong Monetary Authority questioned why banks such as HSBC, Standard Chartered, and Bank of China were not accepting cryptocurrency exchanges as clients. While Hong Kong banks do not have a ban on serving crypto customers, they are hesitant to onboard exchanges due to concerns of potential legal repercussions if the platforms are involved in money laundering or other illegal activities. The Monetary Authority encouraged banks not to be afraid and stated that due diligence on potential customers should not “impose undue burdens,” especially for those setting up offices in Hong Kong to explore opportunities.

2.4 Hong Kong Monetary Authority Seeks Public Consultation on Stablecoins, Aims to Introduce Regulatory Framework by the End of Next Year link

On June 12th, Eddie Yue, the Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA), stated that the HKMA has initiated public consultations regarding the introduction of stablecoins. The authority is working towards gradually establishing a regulatory framework with the aim of launching it before the end of next year. The Hong Kong government is currently focused on developing Internet 3.0 and actively participating in the virtual asset value chain. Earlier this year, they successfully issued tokenized green bonds and will continue to support the industry’s development. They welcome industry players and talent to come to Hong Kong.

3. Bappebti Releases New Regulations on Tradable Cryptocurrencies Asset List in Indonesia link

On June 18th, Bappebti (Indonesian Commodity Futures Trading Regulatory Agency) announced new regulations regarding the list of tradable crypto assets in Indonesia. Users are required to trade on crypto exchanges licensed by Bappebti and use crypto assets registered in the list. The current list includes a total of 501 crypto assets, including BTC, ETH, LTC, SOL, XRP, and others. It is worth noting that the list covers almost all crypto assets determined by the SEC to be securities.

4. Delio, the Cryptocurrency Lending Company, Announces Phased Resumption of Withdrawals link

On June 17th, according to South Korean media Decenter, crypto lending company Delio announced that it would gradually resume withdrawals. However, they did not disclose the specific repayment deadline, method, or the amount of losses. Delio CEO Jeong Sang-ho stated that Delio is currently in an unstable state due to its reliance on Haru Investment and B&S, and they promised to recover some of the losses. Previously, Delio suspended withdrawals amid increased market volatility following Haru Invest’s suspension of deposits and withdrawals.

5. Seoul Southern District Prosecutors’ Office Establishes Joint Investigation Team for Virtual Assets link

On June 14th, according to Chosun Ilbo, the Seoul Southern District Prosecutors’ Office has established a “Virtual Asset Joint Investigation Team” to specifically investigate crimes related to virtual currencies. The investigation team will initially focus on investigating the “Kimchi Coin,” a virtual currency that is exclusively traded in Korean won. In addition, the Seoul Southern District Prosecutors’ Office is also investigating allegations of illegal virtual currency trading by a member of parliament, as well as allegations of embezzlement of public funds by the largest shareholder and executives of the virtual currency exchange Bithumb.

6. Russian Ministry of Finance Estimates Miners’ Annual Cryptocurrency Mining Revenue at Approximately $4 Billion link

On June 16th, Ivan Chebeskov, the Director of the Financial Policy Department at the Russian Ministry of Finance, stated at the St. Petersburg Economic Forum that according to the ministry’s estimates, Russian cryptocurrency miners generate approximately $4 billion in annual income. This means that, under current circumstances, the industry’s tax contributions could provide the budget with around 20 billion rubles (approximately $240 million) in revenue.

7. Fujitsu of Japan Introduces Blockchain Collaboration Technology to Build Web3 Services link

On June 15th, Fujitsu, the largest IT services provider in Japan, announced the successful completion of its proprietary “ConnectionChain” blockchain technology pilot project, which started in January 2022 and lasted for one year. The effectiveness of this technology in simplifying and enhancing cross-border transactions for financial securities was demonstrated in collaboration with the Asian Development Bank, ConsenSys, and other companies. Based on the project’s results, Fujitsu will launch a new blockchain-based cross-border collaboration platform called the “Fujitsu Web3 Acceleration Platform” on June 30th. This platform aims to connect transactions across different economic regions using blockchain technology.

8. Taiwan Mobile Co. Explores Opportunities for Collaboration with Local Cryptocurrency Platforms link

On June 13th, according to Bloomberg, Taiwan Mobile Co., the second-largest telecommunications company in Taiwan, is exploring opportunities to collaborate with local cryptocurrency platforms, including the possibility of investing in one of the businesses. XREX Inc., a blockchain financial company based in Taipei, is reportedly one of the companies involved in the discussions. Taiwan is expected to release a digital asset regulatory handbook later this year.

9. Finblox and OpenEden Partner to Introduce Tokenized US Treasury Bonds to Southeast Asian Market link

Finblox, an encrypted asset management platform, has partnered with OpenEden to launch tokenized US Treasury bonds in emerging markets in Southeast Asia. This collaboration will provide a 24/7 smart contract custodial service, covering customers in the Philippines, Indonesia, India, and Vietnam. OpenEden’s bond custodial service will integrate with Chainlink to ensure tokenization backed by on-chain evidence of actual assets.

10. Jeffrey Huang Files Defamation Lawsuit against ZachXBT link

On June 17th, Jeffrey Huang, a prominent figure in the cryptocurrency industry, filed a defamation lawsuit against “ZachXBT,” accusing him of spreading false accusations on Medium in 2022. ZachXBT had alleged that Huang embezzled millions of dollars’ worth of cryptocurrency. In response, ZachXBT announced the creation of a donation address to cover potential legal expenses, which could exceed $1 million, as a means to protect freedom of speech. Previously, ZachXBT mentioned in the article that Huang had allegedly misappropriated 22,000 ETH from Formosa Financial in 2018 and subsequently launched several unsuccessful token and NFT projects after its collapse.