Asia's weekly TOP10 crypto news (Oct 2 to Oct 8)

Author：0xMingyue

Editor：Colin Wu

1. Hong Kong’s weekly summary

1.1 Hong Kong Financial Secretary: Retail Trading of Stablecoins Not Allowed Until Official Regulation link

According to Ming Pao, Christopher Hui, the Secretary for Financial Services and the Treasury of Hong Kong, mentioned during a radio program that certain stablecoins in the market are backed by assets like the US dollar or gold to support their value, with the goal of price stability. However, there have been instances in the past where stablecoins experienced price fluctuations or even collapses. The management of reserves by stablecoin issuers can impact price stability and the rights of investors to redeem legal tender. Given these factors, Hong Kong does not currently allow retail trading of stablecoins until they are officially regulated. Additionally, Clara Wong, a spokesperson for the Securities and Futures Commission (SFC), mentioned that licensed platforms in Hong Kong currently only allow retail trading of BTC and ETH. To add new cryptocurrencies, platforms need to submit reports to the SFC and receive approval before trading can commence.

1.2 Six More Suspects Arrested by Hong Kong Police in JPEX Case on Thursday link

On October 5th, according to the South China Morning Post, the Hong Kong police arrested an additional six suspects in connection with the JPEX financial scandal worth 1.55 billion Hong Kong dollars. This brings the total number of individuals detained to 26. According to sources familiar with the matter, the six arrested individuals include the Chief Executive Officer and former directors of the OTC exchange CryptoPARD. Additionally, three others are employees of two other OTC platforms, Coingaroo and Tung Club. The sixth suspect is believed to be a member of the alleged fraudulent group behind the JPEX platform.

1.3 JPEX Reduces USDT Withdrawal Fee to 3 USDT, But Users Report Issues with Withdrawals link

On October 7th, according to the Oriental Daily News, JPEX has currently reduced the withdrawal fee for USDT to 3 USDT. However, a significant number of users have reported that their requests to withdraw USDT are unable to proceed smoothly, or they encounter an official message indicating ‘incorrect withdrawal address.’ Furthermore, various user rights protection groups have started to receive reports from users who claim that their assets have been inexplicably converted into the platform’s currency, JPC, by the platform’s authorities. There is no publicly disclosed exchange rate, resulting in a substantial devaluation of their originally held assets.

1.4 Hong Kong Exchange Launches DAML-Based Settlement Platform HKEX Synapse link

On October 5th, the Hong Kong Exchanges and Clearing Limited (HKEX) announced the launch of a platform called ‘HKEX Synapse’ on October 9th. This platform, based on DAML (Digital Asset Modeling Language), aims to optimize post-trade workflows using smart contracts to enhance operational efficiency, reduce settlement risks, and increase transparency. It is part of the ‘Stock Connect’ program that connects the Hong Kong and mainland China markets.

2. Singapore Government to Establish New Cross-Departmental Committee link

On October 6th, according to Lianhe Zaobao, the Singapore government is set to establish a new inter-agency committee comprising political officeholders from the Ministry of Home Affairs, the Ministry of Law, the Ministry of Manpower, and others. This committee aims to learn from recent money laundering cases, review the anti-money laundering system, and prevent companies from being used for money laundering activities by criminals. The committee will publicize the results of its review. The Minister for Communications and Information denied that this money laundering case investigation was initiated in response to a request from China.

3. Taiwanese Legislators Aim to Propose Cryptocurrency Special Law Draft by Late November link

On October 6th, according to The Block, lawmakers in Taiwan are hoping to introduce a draft special law on cryptocurrency assets for first reading by the end of November to prevent cryptocurrency regulatory arbitrage. Taiwanese legislator Jiang Yongchang stated that it is necessary to enact a dedicated cryptocurrency law to regulate cryptocurrency companies. Today, a public hearing has been held to discuss the draft proposal with virtual asset service providers, legal experts, and scholars.

4. Binance Assists the Royal Thai Police in Combating Criminal Networks link

On October 3rd, according to the official blog, Binance played a crucial role in assisting law enforcement agencies in Thailand in two recent operations that led to the dismantling of a criminal network involved in significant cryptocurrency scams. The Thai Cyber Crime Investigation Bureau (CCIB) collaborated with Binance and the U.S. Department of Homeland Security Investigations (HSI) to dismantle a criminal gang involved in a major ‘pig killing plate’ fraud that affected thousands of people in Thailand. With intelligence support from Binance and HSI, the CCIB arrested five key members of this gang and seized assets worth approximately 10 billion Thai Baht (about 277 million USD), including luxury cars, residences, land, and other high-end items. Since then, over 3,200 victims have sought compensation.

5. Former SoftBank Executive Collaborates with DRAM Trust to Launch New Stablecoin Supported by UAE Dirham link

On October 2nd, according to Bloomberg, former SoftBank executive Akshay Naheta has partnered with DRAM Trust, based in Hong Kong, to launch a new stablecoin called DRAM, backed by the local currency of the United Arab Emirates, the Emirati Dirham (AED). It is reported that this coin is pegged to the US dollar, providing greater stability for individuals in high-inflation countries such as Turkey, Egypt, and Pakistan, while also offering an alternative to the SWIFT system.

6. Nomura Securities’ Crypto Division ‘Laser Digital’ Expands to Japan link

On October 2nd, as reported by The Block, Nomura Securities’ crypto division, Laser Digital, has expanded its operations to Japan, opening a new office in Tokyo led by Executive Director Hideaki Kudo. Laser Digital, headquartered in Switzerland, already has offices in London and Dubai and has obtained a crypto operations license in Dubai.

7. The Shexian Public Security Bureau in China Successfully Busts the First Virtual Currency Pyramid Scheme Case in Liaocheng City link

On October 8th, according to the official public account of Liaocheng Public Security, the Shengxian County Public Security Bureau successfully cracked the city’s first pyramid scheme case involving virtual currency. This case involved 6 pyramid scheme ringleaders and key members, and more than 10 million CNY of illegal gains were confiscated. In December 2022, police officers from Shengxian County Public Security Bureau discovered virtual currency pyramid scheme activities on the Binance Smart Chain during online inspections. The project used the ‘token pocket’ wallet and smart contracts to launch decentralized cryptocurrencies DCS and CAR. It enticed participants with high returns, encouraged members to drive up the prices of DCS and CAR, and recruited new members, thus suspected of engaging in pyramid scheme activities.

8. Photos Surface of Three Arrows Capital Founder Zhu Su’s Arrest at Changi Airport link

On October 6th, TheBlock disclosed photos of Zhu Su, the founder of Three Arrows Capital, being arrested at Changi Airport. Due to Zhu Su’s failure to cooperate with the company’s liquidation investigation, a Singapore court sentenced him to four months of imprisonment.

According to Lianhe Zaobao, the arrested founder of Three Arrows Capital, Zhu Su, now resides in a premium bungalow managed by his wife’s company in Singapore. The couple purchased this premium bungalow for SGD 48.8 million through a trust in a transaction completed in March of last year. The bungalow is not counted among the assets listed by the liquidators of Three Arrows. The lawn of the bungalow has been transformed into 36 vegetable plots, where okra, spinach, legumes, mustard greens, sesame, radishes, and other crops are grown. The swimming pool has been converted into a natural pond for swimming, with the removal of chlorine and the addition of aquatic plants, streams, and various fish and shrimp. Zhu’s wife, Evelyn Tao, holds a Ph.D. in Biology from the National University of Singapore.

9. Taiwanese Citizen Wins 10 Million After Paying 2 TWD in Transaction Fee When Buying Cryptocurrency on MaiCoin link

On October 7th, according to blocktempo, a fortunate individual in Taiwan made a cryptocurrency purchase on the local exchange MaiCoin and paid only 2 TWD in fees. They utilized an e-invoice to exempt stamp duty and later discovered that the invoice had won a special prize of 10 million TWD.

10. Bitmain Temporarily Delays Partial Salary Payments for September Due to Cash Flow Issues link

On October 8th, as confirmed by multiple Bitmain employees, Bitmain issued a notice on October 3rd stating that the company’s operating cash flow did not turn positive in September, particularly due to significant delays in the deployment of mining machines (referring to mining machines entering mining facilities). As a result, Bitmain decided to temporarily withhold part of the September salaries for all employees, with the possibility of disbursement after the October 7th holiday. Bitmain had recently held a conference in Hong Kong and released its latest S21 mining machine.