Asia's weekly TOP10 crypto news (Jan 8 to Jan 14)

Author：0xMingyue

Editor：Colin Wu

1. Hong Kong’s Weekly Summary

1.1 Caixin: About Ten Fund Companies are Planning to Launch Virtual Asset Spot ETFs in Hong Kong link

HashKey Group’s Chief Operating Officer, Livio Weng, revealed in an interview with Caixin that around ten fund companies are currently preparing to launch virtual asset spot ETFs in Hong Kong, with seven or eight of them already in the practical implementation stage. As the basic regulatory mechanism for virtual asset spot ETFs is still being explored, it is not expected that the products will be approved and launched quickly. The formal listing of the funds is estimated to take at least 3–6 months. HashKey Exchange is involved in the virtual asset trading and custody related to the funds.

1.2 Hong Kong Virtual Asset Rating Agency HKVAC Announces Index Adjustment Results link

Hong Kong Virtual Asset Class (HKVAC), a virtual asset rating agency, has announced the results of its index adjustment, which will take effect from January 19. The Global Large Cryptocurrency Index has added ICP, NEAR, OP, INJ, and IMX, while removing TUSD, BUSD, HBAR, FIL, and MKR. The top 5 index has added SOL and removed XRP. The top 10 index has added AVAX and removed TRX.

1.3 Hong Kong Legislator Johnny Ng: The SAR Government Should Promptly Promote the Implementation of Virtual Asset Spot ETFs link

On January 11th, Johnny Ng, a National Committee member of the Chinese People’s Political Consultative Conference (CPPCC) and a member of the Legislative Council of the Hong Kong Special Administrative Region, expressed on Twitter that with the approval of the SEC for a Bitcoin spot ETF, he believes that Hong Kong should also dare to take the lead in the field of virtual assets. He urged the SAR government to expedite the implementation of a spot ETF, hoping that Hong Kong could quickly seize a position globally, especially in Asia, to implement relevant policies and products, solidifying Hong Kong’s opportunity to become a global center for virtual assets. He also emphasized the need to enhance education on virtual assets, raising public awareness and reducing opportunities for criminals to exploit virtual assets for fraud.

2. South Korea’s Weekly Summary

2.1 South Korean Regulatory Agency: Financial Institutions Comply with Regulations on Launching Cryptocurrency ETFs, Not Affected by U.S. Approval link

On January 11, the highest financial regulatory authority in South Korea stated that it will adhere to regulations restricting financial institutions from launching cryptocurrency exchange-traded funds (ETFs). An official from the Financial Services Commission (FSC) of South Korea told local media Kyunghyang that the approval of a spot Bitcoin ETF in the United States will not prompt Korean regulatory authorities to lift the ban or reconsider. South Korea’s Capital Market Act currently limits the scope of underlying assets for investment contract securities like ETFs to financial investment tools, currencies, and common commodities, excluding cryptocurrencies. South Korea does not recognize cryptocurrencies as financial assets and has prohibited financial institutions from investing in cryptocurrencies since 2017.

2.2 South Korea’s Samsung Securities and Mirae Asset Securities Suspend Overseas Bitcoin Spot ETF Services Due to Regulation link

On January 12, several major securities companies in South Korea temporarily suspended brokerage services for Bitcoin spot ETFs. The list of companies that halted services includes Samsung Securities and Mirae Asset Securities. Mirae confirmed that the company, along with several others, has ceased new transactions of overseas Bitcoin spot ETFs on its platform. A Mirae spokesperson cited an announcement from the Financial Services Commission (FSC) of South Korea as the primary reason for the suspension, adding that local brokerages are concerned that the issuance of existing overseas Bitcoin spot ETFs may be interpreted as illegal. Earlier, South Korea prohibited domestic brokerages from providing brokerage services for overseas Bitcoin spot ETFs.

2.3 Financial Supervisory Service of South Korea is Drafting Comprehensive Guidelines on Virtual Asset Issuance, Circulation, Listing Standards, etc link

According to hankyung, the Financial Supervisory Service of South Korea is preparing comprehensive guidelines on virtual asset issuance, circulation, listing standards, and more. An Byeong-nam, head of the Digital Asset Research Group at the Financial Supervisory Service, stated that they have been working with exchanges for almost half a year and have made significant progress. As this legislation is being drafted for the first time, the guiding principles must take into account various market characteristics, such as the presence of multiple markets due to various exchanges and differences between the domestic and global markets in South Korea.

3. People’s Bank of China Shanghai Headquarters 2024 Work Conference: Preventing and Handling Risks of Speculative Trading in Virtual Currency link

The 2024 work conference of the People’s Bank of China Shanghai Headquarters highlighted the key tasks for 2023, including: preventing and addressing the speculative risks of virtual currency transactions. Vigorously cracking down on financial illegal activities. Deepening the governance of “financial chains” involved in gambling and fraud. Enhancing the efficiency of anti-money laundering supervision. The fourth key task for 2024 includes: strengthening the monitoring of risks in key areas, steadily advancing the resolution of institutional risks. Effectively implementing additional supervision for systemically important financial institutions. Advancing the governance of “financial chains” involved in gambling and fraud. Conducting assessments of money laundering risks and continuing to promote the three-year action plan to combat and govern money laundering and illegal financial activities without further mention of virtual currencies in the key tasks for 2024.

4. Taiwan Central Bank Statement: NFT Craze Has Subsided and Appears to be Facing a Critical Moment of Survival link

The article released by the Taiwan central bank, titled “The NFT Craze Has Subsided and Appears to Face an Existential Crisis,” mentions that after reaching its peak trading volume in January 2022, the NFT market has experienced a decline, with some studies indicating that about 95% of NFTs are currently nearly worthless. Mainstream media has even suggested that NFTs are on the verge of death. However, it’s important to note that the data in the article mainly focuses on the period between 2022 and 2023 and may have a significant lag. At present, the NFT market has shown signs of recovery with the arrival of the bullish market.

5. Japan’s Largest Second-hand Trading Platform Mercari to Accept Bitcoin Payments from June this Year link

On January 8th, Mercari, Japan’s largest second-hand trading platform, announced that it will start accepting BTC payments from June this year. Mercari will process BTC payments through its crypto subsidiary, Melcoin, which will convert all BTC payments into Japanese yen. This means that while buyers can choose BTC as a payment option, sellers will receive the legal tender currency.

Bitget Releases the Fourteenth Asset Reserve Proof link

Bitget has released the fourteenth edition of its Asset Reserve Proof (snapshot date 1–4). According to the disclosed data, user BTC assets amount to 3,302.9 coins, showing a growth of 2.33% compared to the previous period (12–6), an increase of 75 BTC. User ETH assets amount to 27,100 coins, showing a growth of 9.36% compared to the previous period, an increase of 2,323 ETH. User USDT assets amount to 505 million coins, showing a growth of 3.29% compared to the previous period, an increase of 16 million USDT.

(Sponsored by Bitget)

6. Do Kwon Requests Delay in SEC Lawsuit against Terraform Labs Until Mid-March to Personally Appear in Court link

According to Inner City Press, Do Kwon has requested the U.S. court to postpone the trial with the U.S. Securities and Exchange Commission (SEC) regarding him and his former company Terraform Labs. He seeks the delay to allow his attendance and requests to reschedule the trial to mid-March 2024. His lawyer indicated that Kwon is expected to arrive in the U.S. no earlier than February or March.

7. Hurun Rich List Includes Several Cryptocurrency Leaders but Contains Numerous Errors link

Hurun has released the 2023 Hurun Rich List, in which Wu Jihan ranks 9th among Peking University alumni with a wealth of 10 billion yuan, Li Lin ranks 3rd among Tongji University alumni with a wealth of 7 billion yuan, and Star Xu, the founder of OK, ranks 16th among Renmin University alumni with a wealth of 5 billion yuan. It is worth noting that the data in this ranking list is significantly flawed. For example, Justin Sun is also from Peking University, Yang Zuoxing is from Tsinghua University, and Zhan Ketuan is from Shandong University, but they are not included. Moreover, Star Xu’s wealth is far more than 5 billion yuan.

8. BC Technology Group’s Extraordinary General Meeting Approves BGX Subscription Agreement and Will Rename to OSL Group link

BC Technology Group, the parent company of the licensed virtual asset trading platform OSL, announced through a shareholder vote the approval of various resolutions, including: Approval, confirmation, and ratification of the Subscription Agreement entered into by BGXGroup Holding Limited (as the subscriber) on November 13, 2023. The subscriber has conditionally agreed to subscribe for a total of 187,600,000 subscription shares at a subscription price of HKD 3.80 per subscription share, along with the transactions contemplated therein. The directors are granted special authority to exercise all powers of BC Technology Group to issue and allot the subscription shares based on the terms and conditions of the Subscription Agreement and within its limits; Upon obtaining approval from the Registrar of Companies in the Cayman Islands, the company’s English name will change from “BC Technology Group Limited” to “OSL Group Limited,” and its Chinese dual foreign name will change from “BC Technology Group Ltd.” to “OSL Group Ltd.”.

OSL announced the appointment of Zhiyong Pan as Chief Executive Officer on January 12, with a 2024 blueprint focusing on four strategic pillars: global business expansion, service innovation, collaborative development in digital finance, and commitment to regulatory compliance.

9. Non-custodial Wallet Imtoken Added to Singapore MAS Investor Alert List in December link

Imtoken, a non-custodial wallet, was added to the Investor Alert List (IAL) by the Monetary Authority of Singapore (MAS) in December, as discovered by the community. The IAL is a warning list indicating that a company “may or may be mistaken for having been granted a license or authorized or regulated in any other way by MAS.” In 2021, MAS had previously included Binance in this warning list.

ImToken responded, stating that since its headquarters are in Singapore and it has not applied for a Singapore financial business license, MAS has included ImToken in the Investor Alert List (IAL). ImToken provides decentralized wallet services to users worldwide, including those in Singapore. Emphasizing its decentralized wallet service model, ImToken distinguishes its business from centralized custodial services. ImToken is actively engaging with MAS to clarify the distinctions between its business and traditional financial services and is seeking removal from the IAL. It’s important to note that due to the decentralized nature of ImToken’s wallet, users’ assets are not affected by being listed on the IAL.

10. Nike’s Web3 Wearable Platform .Swoosh to Launch Video Game Wearable Device link

Nike’s blockchain and digital wearables division, Swoosh, has announced plans to further expand into the video game industry within the next year. However, it is currently unclear whether this expansion will involve more NFTs. The upcoming product line, “Nike In-Game Wearables,” will distinguish itself from digital collectibles, such as OF1. These products will be available for purchase and wearable directly within players’ favorite video games. Unlike traditional digital collectibles, these future in-game wearables will not require a crypto wallet, as players can link them directly to their game accounts.