Editor：Colin Wu
1. Hong Kong’s Weekly Summary
1.1 Hong Kong SFC: JPEX Listed on Unlicensed Firms and Suspicious Websites List Since July Last Year link
On September 19th, the Hong Kong Securities and Futures Commission (SFC) stated that on July 8, 2022, they had already included the JPEX platform on their list of unlicensed companies and suspicious websites. Despite continuous warnings to the public not to use unregulated platforms, JPEX not only persisted but also escalated its promotion efforts. They continued to use various media, social platforms, and Key Opinion Leaders (KOLs) for promotion, emphasizing low risk and high returns, all while operating illegal over-the-counter (OTC) trading. The Hong Kong police reported that they have frozen bank accounts with HKD 15 million and properties worth HKD 44 million. Most victims are inexperienced cryptocurrency investors who fell prey to the lure of “investment authorities” and were impulsive in their investments. The SFC mentioned that due to the current regulatory framework, there is no regulation of OTC operators, so the exact number of OTC coin exchange shops is unclear, but they are aware of their existence.
1.2 Three Legislative Council Members Jointly Request Hong Kong Finance Committee to Discuss JPEX Incident on the Agenda link
On September 21st, according to Ming Pao, Starry Lee, Chairperson of the Democratic Alliance for the Betterment and Progress of Hong Kong (DAB), along with Election Committee member Chen Chung-nin and Accountancy functional constituency legislator Wong Chun-shuk, jointly wrote a letter to the Hong Kong Financial Affairs Committee. They stated that the JPEX incident is a serious matter and requested that the JPEX incident be added to the agenda for the meeting on October 9th. They also intend to have the Hong Kong Securities and Futures Commission (SFC) attend to provide further explanations. Legislator Wu Kit-ching, who has been closely monitoring the event, mentioned that he has received assistance requests from nearly 100 JPEX investors, all of whom were unable to withdraw their funds.
1.3 Animoca Brands CEO Invites Vitalik to Hong Kong, Offers to be His Guide and Provide Airfare link
On September 19th, Animoca Brands’ Chairman, Yat Siu, reached out to Vitalik Buterin, offering to provide him with a plane ticket and serve as his guide during a trip to Hong Kong. Siu stated that Hong Kong is, in fact, one of the most stable and free economies in the world. He emphasized that China relies heavily on Hong Kong’s international perspective, and it would be impossible for Hong Kong to succeed if it were to fully adopt China’s ways. While Hong Kong has undoubtedly been influenced by some negative political factors, it remains freer than other places that claim to be free.
2. South Korea’s Weekly Summary
2.1 South Korean Regulatory Agency Pushes for Qualification Review of Major Shareholders in Crypto Exchanges link
On September 22nd, according to Newsis, the Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) of South Korea is planning to review the qualifications of major shareholders of cryptocurrency exchanges through a recently established task force (TF). This move aims to prevent illegal activities by major shareholders that could significantly impact cryptocurrency exchange operations and harm users. At the same time, South Korean National Assembly member Yoon Chang-hyun has recently proposed amendments to the Special Financial Services Act to introduce a review system for major shareholders of cryptocurrency businesses.
2.2 South Korea National Tax Service Report Shows Cryptocurrencies Account for Over 70% of Overseas Asset Declarations link
On September 20th, the latest report from the South Korean National Tax Service revealed that virtual assets account for more than two-thirds of the value of registered overseas accounts this year. The tax agency had previously included virtual assets in its list of mandatory registration assets, with the total value of virtual assets holdings reaching 130.8 trillion Korean won (approximately 98.3 billion US dollars). Among these holdings, 73 companies reported ownership of foreign virtual assets worth 120.4 trillion Korean won, while the remaining 10.4 trillion Korean won was registered as being held by 1,359 individuals, averaging approximately 7.66 billion Korean won per person. South Korean authorities have postponed taxing virtual asset gains, with taxation now scheduled to begin in January 2025.
2.3 Busan City, South Korea Releases Digital Asset Exchange Business Plan, Establishes 100 Billion Korean Won Blockchain Innovation Fund link
On September 21st, according to News1, the city of Busan in South Korea officially unveiled its business plan for a digital asset exchange. The exchange is expected to launch in the first half of 2024 and will initially not support virtual assets or security tokens (STOs). Instead, it will focus on blockchain-based trading of commodities such as precious metals and raw materials. Busan city claims to be a “fourth-generation blockchain exchange,” distinguishing itself from existing virtual asset exchanges, which it considers third-generation exchanges. Furthermore, Busan city plans to establish a blockchain mainnet at the municipal level, compatible with blockchain mainnets like Ethereum and Cosmos. This will enable blockchain-based services that utilize different mainnets to operate on a single platform. Additionally, Busan city intends to create a Blockchain Innovation Fund (BBF) with contributions from financial public institutions within Busan, with a budget of over 100 billion Korean won.
3. Bank of Japan: Will Persistently Continue Implementing Monetary Easing Policy link
On September 23rd, according to Kyodo News, the Bank of Japan held its second day of the monetary policy meeting on the 22nd and decided to maintain its large-scale monetary easing policy, which includes keeping short-term interest rates at -0.1% and guiding long-term rates to around 0%. The Governor of the Bank of Japan, Haruhiko Kuroda, held a press conference on the afternoon of the 22nd and stated that they would “steadfastly continue to implement monetary easing policies.”
4. Thailand Plans to Tax Overseas Income of Cryptocurrency Traders link
On September 19th, according to BeInCrypto, the Thai government is planning to impose taxes on the overseas income of cryptocurrency traders. The proposed tax regulations would apply to both Thai nationals and foreign citizens who reside in Thailand for more than 180 days in a year. Under these new regulations, individuals who earn income from work or assets abroad would be required to pay personal income tax. A spokesperson from the Ministry of Finance stated, “The principle of taxation is that you have to pay tax on your income earned abroad, no matter how you earn income and regardless of which tax year that income is earned.”
5. Singapore’s Weekly Summary
5.1 MAS Singapore: Will Prioritize Enforcement Against Improper Behavior in Strengthening the Digital Asset Ecosystem for the Next Two Years link
On September 19th, the Monetary Authority of Singapore (MAS) released its fourth enforcement report. The report covers enforcement actions taken for violations of MAS regulatory requirements during the period from January 2022 to June 2023. This includes actions taken against four financial institutions in connection with Wirecard-related persons and high-profile actions against individuals related to Noble Group Limited and Three Arrows Capital. MAS’s enforcement focus for 2023 and 2024 includes enhancing its ability to address misconduct in the digital asset ecosystem, including cooperating with foreign regulatory and enforcement authorities to obtain and share information about errant entities and individuals.
5.2 At Least 10 Local and International Banks in Singapore Involved in Largest-Ever ‘Fujian Gang’ Money Laundering Case in Singapore’s History link
On September 21st, according to The Business Times Singapore, at least 10 local and international banks in Singapore have become embroiled in the city-state’s largest-ever money-laundering case involving the “Fujian Clan.” Singaporean banks are now intensifying their scrutiny of Chinese clients holding “investment-related” passports. Currently, at least one international bank in Singapore is reported to be closing some customer accounts for citizens of countries including Cambodia, Cyprus, Turkey, and Vanuatu.
6. Ant Group Plans to Withdraw Investment in VC A&T Capital, Its Former Cryptocurrency Subsidiary link
On September 18th, according to Bloomberg, Ant Group is planning to withdraw its investment from VC A&T Capital, which was previously under its umbrella. It’s currently unclear whether this venture capital firm will continue to operate or attract new investors. A&T Capital was once one of China’s most active cryptocurrency capital firms and had invested in ConsenSys, the parent company of MetaMask. Its partners faced allegations by multiple women at one point.
7. GMO Media Collaborates with Game Blockchain Oasys to Launch ‘GESOTEN Verse’ link
On September 21st, the gaming blockchain Oasys announced a collaboration with GMO Media, a subsidiary of the Japanese internet giant GMO Internet Group, to launch “GESOTEN Verse” (tentative name) on Oasys. As part of the partnership, three games have been confirmed to be released alongside the new Verse in December 2023. “GESOTEN Verse” will allow users of the “GESOTEN by GMO” gaming platform to seamlessly play blockchain games using their existing IDs on the platform.
8. South Korean Entertainment Company Dreamus Launches Avalanche NFT Event for the First Time link
On September 21st, SK Planet’s subsidiary, the South Korean entertainment and event company Dreamus, is now offering NFT ticketing services through SK Planet’s OK Cashbag rewards app, allowing fans to purchase tickets for K-pop concerts and other performances in the form of Avalanche NFTs. Justin Kim, the Head of Ava Labs Korea, stated that NFT tickets can help address the rampant issues of bots and scalpers in the live events ticketing industry.
9. Former Alibaba CSO, Ming Zeng, Gives Speech: AI and Cryptocurrency are a Match Made in Heaven, Promising Future link
On September 19th, at the Ninth Annual Global Blockchain Summit hosted by the Wanxiang Blockchain Lab, former Chief Strategy Officer of Alibaba, Ming Zeng, delivered a keynote speech titled “The Future of Web3.” Wu Shuo provided the following synopsis: In the context of our expectations for the next billion users, it is essential to recognize that cryptocurrency, while significant, may not directly enhance the consumer experience, nor does it function as a tool for productivity improvement. Artificial General Intelligence (AGI) and cryptocurrency are, in many ways, a match made in heaven. Cryptocurrency primarily signifies a revolutionary shift in production relations, whereas AGI represents a technological breakthrough in productivity. AGI is poised to create a plethora of new digital assets. The critical questions at hand include how to facilitate improved collaboration among numerous AI entities, address incentive mechanism challenges, and resolve asset transaction and distribution issues. AI, AGI, and cryptocurrency collectively pave the way for the future of the digital economy and define the essence of Web3. For the complete discourse, please visit the Wu Shuo official website.
10. IOSG Founder 2049 Reflects: Many Teams Are Running Out of Funds, Testing Founder Resilience link
On September 19th, Jocy, the founder of IOSG, shared insights on Singapore 2049. She expressed, “In 2049, it serves as the last hope for many teams seeking funding, possibly their final chance to showcase their brand. Under the intensified regulatory pressure in the United States, fundraising for funds has become increasingly challenging. Clearly, the bear market is expected to persist for some time, testing the adaptability, endurance, and resilience of founding teams. The emergence of applications on Layer 2 is an inevitable trend in the industry’s innovation.” For the complete discussion, please visit the Wu Shuo official website.
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