Asia's weekly TOP10 crypto news (Jan 22 to Jan 28)

1. Hong Kong’s Weekly Summary

1.1 Hong Kong’s First Spot Virtual Asset ETF Expected to Launch Before Mid-Year link

According to the Managing Director and Head of Regulatory Affairs at OSL, a licensed virtual asset trading platform in Hong Kong, they are currently in close communication with many fund companies. About 5 to 10 fund companies are conducting research, with the possibility of launching the first spot virtual asset ETF by mid-year, and progress is expected with the first 5 companies. With only two licensed virtual asset platforms currently available, Chan admits there is pressure to ensure that fees remain reasonable and not excessively high.

1.2 Hong Kong Securities and Futures Commission Releases “Strategic Focus 2024–2026” link

The Securities and Futures Commission of Hong Kong has released the “Strategic Focus for 2024–2026”, outlining four major priorities: maintaining market resilience, enhancing global competitiveness of market capital, leading financial market transformation with technology and ESG, and improving institutional resilience and operational efficiency. In the realm of virtual assets, it aims to provide new regulatory guidelines and advance VASP supervision. While supporting the tokenization of traditional products, it ensures investor protection. Utilizing blockchain and Web3 foundational technologies, it aims to foster the establishment of a responsible and secure financial technology ecosystem. Furthermore, it seeks to establish closer ties with local and international law enforcement agencies to combat crimes.

1.3 Value Partners Group and VSFG Plan to Launch Bitcoin Spot ETF in Hong Kong link

Value Partners Group and VSFG have announced the signing of a Memorandum of Understanding (MoU), outlining their collaboration to provide innovative investment solutions that combine virtual assets with traditional investment tools for retail and institutional investors. Additionally, as the initial step of their partnership, the two Hong Kong enterprises will jointly explore the launch of a Bitcoin spot ETF in Hong Kong.

2. Taiwan’s Weekly Summary

2.1 Taiwan Investment Trust Unable to Issue Bitcoin ETF, Prohibited from Trading ETFs Through Concession Mode link

The announcement from Taiwanese brokerages indicates that Taiwan’s investment trusts are unable to issue Bitcoin ETFs. Regulatory authorities have also prohibited the use of sub-custody arrangements for trading Bitcoin ETFs. Investors can only invest in Bitcoin ETFs through overseas brokerages. Sub-custody allows investors to trade stocks without personally opening a securities account abroad, instead using a sub-custody account opened by a brokerage with overseas securities sub-custody qualifications.

2.2 President Wang Chenhuan of Taiwan’s Mainstream Exchange ACE Arrested link

The current president and head of ACE, a major exchange in Taiwan, Wang Chenhuan, has been urgently arrested. The prosecutor has detained and restricted five suspects, including Wang, from communication. Wang Chenhuan currently also serves as the incumbent managing partner of a well-known legal firm. According to the Taipei District Prosecutors Office, evidence obtained from multiple examinations in a previous case involving fraudulent tokens suggests Wang Chenhuan’s alleged involvement in fraud and money laundering, alongside other current employees of the ACE exchange.

3. South Korean Prosecutor Issued Arrest Warrant for Major Shareholder Bang of B&S Holdings link

The prosecutor in South Korea has issued an arrest warrant for Bang, the major shareholder of B&S Holdings, who is a key figure in the recent incidents of withdrawal suspensions at the virtual asset operating companies Haru Invest (Haru) and Delio. Bang is suspected of committing fraud under the Specific Economic Crimes Aggravated Punishment Act. The police will conduct a 10-day detention investigation until January 28 before transferring Bang to the prosecutor’s office.

4. Indonesia’s Cryptocurrency Tax Revenue Totaled $31.7 Million in 2023 link

The Indonesian Ministry of Finance has stated that the total cryptocurrency tax revenue for 2023 amounted to $31.7 million (4672.7 billion Indonesian rupiahs). Compared to the partial collection period in 2022, when the tax regime was introduced in May 2022, the country’s tax revenue decreased by 62% last year. Currently, cryptocurrency transactions in Indonesia are subject to double taxation: a 0.1% income tax and a 0.11% value-added tax. In addition, local cryptocurrency exchanges are required to pay approximately 0.04% tax to the national cryptocurrency exchange.

5. People’s Bank of China Opens Monetary Policy Toolbox for the First Time in 2024 link

The People’s Bank of China (PBOC) has initiated its first move in the monetary policy toolkit for 2024, announcing in advance a reserve requirement ratio (RRR) cut to be implemented before the Spring Festival. Additionally, it declared a reduction in the interest rates for re-lending and rediscounting for agriculture-related loans and small and micro-sized enterprises. On January 24th, during a press conference at the State Council Information Office, PBOC Governor Pan Gongsheng announced that starting from February 5th, the reserve requirement ratio for financial institutions would be lowered by 0.5 percentage points, expected to inject 1 trillion yuan of medium- to long-term liquidity. Furthermore, Pan Gongsheng revealed that the PBOC would also lower the interest rates for agriculture-related loans and rediscounting by 0.25 percentage points effective January 25th.

6. Binance to Gradually Cease All Russian Ruble (RUB) Services link

Binance has announced its decision to exit the Russian market by selling its operations to CommEX. Consequently, Binance will gradually cease all Russian Ruble (RUB) services. Users are encouraged to convert their RUB assets into other available assets on the Binance platform. Effective from 08:00 (UTC) on February 1, 2024, any remaining RUB balances in users’ Binance accounts will be automatically converted to FDUSD at the real-time exchange rate provided by xe.com.

7. Singapore’s DCS Bank’s Stablecoin DUS Issued on PlatON Mainnet Nears $3 Million in Circulation link

Lilin Sun, the founder of LatticeX, has indicated that the Singapore-based DCS Bank’s stablecoin DUS, issued on the PlatON mainnet, is poised to exceed a circulation of $3 million. He anticipates an increasing number of banking and financial institutions/payment agencies issuing Tokenized Deposit and StableCoin on the PlatON mainnet, initiating various operations such as remittance/acquiring/card issuance/lending, with new products expected in February.

8. South Korea Telecom Giant KT to Shut Down its NFT Platform MINCL on March 4 link

KT, the telecommunications giant in South Korea, has announced the closure of its NFT platform, MINCL, effective March 4th. The company cited changes in the business environment as the reason for this decision. According to the announcement, users holding KT Wiz Rookie Pack NFTs must transfer these NFTs to wallets outside of MINCL. After the service termination date, users will no longer be able to view or download any remaining NFTs. Launched in April 2022, MINCL provided NFT minting, trading, and wallet services for both retail and institutional users.

9. HashKey Group Plans to Apply for Virtual Asset License in Other Global Regions link

Livio, the Chief Operating Officer of HashKey Group, has expressed intentions to apply for virtual asset licenses in other regions globally to attract more overseas retail investors. He also mentioned plans to unveil new developments in April. The institutional market will be a focal point of business this year, with preparations underway with multiple funds for a virtual asset spot ETF. The aim is to achieve the RWA project within six months, with expectations for the landing of security token offerings (STOs) in the second quarter.

10. MtGox Confirms Account Ownership to Users, Will Distribute its Holdings of 142,000 BTC, etc link

Recently, MtGox sent emails to users confirming the ownership of exchange address accounts previously provided as BTC/BCH receiving addresses. In December 2023, some creditors reported receiving yen-denominated compensation to their PayPal accounts. Repayments will continue into 2024, with MtGox distributing its holdings of 142,000 BTC, 143,000 BCH, and ¥69 billion.