Coinbit suspends operations, marking second crypto exchange shutdown this month

Yunfeng Financial Group has purchased 10,000 Ethereum (ETH) on the open market for $44 million, the Hong Kong–listed fintech said in a Sept. 2 statement. The company described the move as part of a broader plan to increase exposure to digital assets, joining firms such as Bitmine Immersion Technologies and SharpLink Gaming that have incorporated ETH into corporate treasuries.Photo by DrawKit Illustrations on UnsplashETH backs RWA strategy, inflation hedgeThe acquisition follows Yunfeng’s July outline to expand into Web3, real-world asset (RWA) tokenization, artificial intelligence, and ESG-linked assets aimed at net-zero goals. Yunfeng said ETH could support its Web3 and RWA businesses, help optimize assets, and provide a hedge against traditional currencies. It is also exploring ways to incorporate ETH into insurance products. The RWA market has grown in recent months, with on-chain RWAs totaling $28.19 billion at the time of publication, up 7.37% from a month earlier, according to data from RWA.xyz. Yunfeng noted it may adjust the size of its ETH reserves in line with market conditions, regulation, and its financial position. The company said the purchase falls below Hong Kong Stock Exchange disclosure thresholds: all five percentage ratios—assets, profits, revenue, consideration, and equity capital—remain under 5%. It stated it will meet disclosure requirements if future transactions push holdings beyond the relevant limits. Institutions drive ETH momentumThe announcement comes amid heightened interest in ETH. CryptoRank data show a 30% year-to-date price increase, and Tom Lee, Fundstrat’s head of research and chair of BitMine, has forecast a near-term range of $4,000 to $5,450. He argued that Ethereum is well placed to serve institutional use cases, pointing to its role in hosting more than half of the roughly $250 billion stablecoin supply and its prominence in asset tokenization. Hong Kong continues to position itself as a regional hub for blockchain and digital assets despite Mainland China’s 2021 ban on crypto trading. In a separate development, Fosun Wealth Holdings launched tokenized shares of Sisram Medical, an Israeli med-tech company listed in Hong Kong. The tokens, representing about $328 million in market value, were deployed across Vaulta, Solana (SOL), Ethereum, and Sonic. Fosun said it plans to tokenize additional corporate bonds and shares, without naming issuers or setting a timeline. Other local companies have also disclosed crypto exposure. Linekong Interactive Group reported holdings of 92.07 BTC, 943.63 ETH, and 6,091.7 SOL as of June 30 after purchases in the first half of the year, with cumulative unrealized gains of roughly $7.5 million. Linekong said it views crypto as a long-term investment and may increase its holdings pending board and shareholder approval. 

South Korea is tightening its grip on the cryptocurrency sector, with courts handing down the first prison sentence under an investor protection law enacted last year. The ruling comes just as financial authorities signal a comprehensive overhaul of digital asset governance, ranging from ownership caps to the tokenization of real-world assets. The Seoul Southern District Court sentenced the head of a crypto management firm to three years in prison for manipulating virtual asset prices and amassing roughly 7 billion won in illegal profits, according to Yonhap News Agency. The court also imposed a fine of 500 million won ($340,000) and ordered the forfeiture of approximately 846 million won ($580,000). Photo by Daniel Bernard on UnsplashFirst sentence under 2024 protection lawThis marks the first conviction under the new investor protection law, which took effect in July 2024. It was also the first case fast-tracked directly from the Financial Supervisory Service (FSC) to prosecutors under the new legal framework. The conviction coincides with a broader regulatory debate involving Financial Services Commission (FSC) Chairman Lee Eog-weon. According to MoneyToday, in testimony before the National Assembly’s National Policy Committee on Feb. 5, Lee outlined an agenda covering anti-money laundering (AML) enforcement, stablecoin regulation, and digital innovation. However, he cautioned lawmakers against enacting blunt, one-size-fits-all rules that could stifle competition. Ownership cap rules trigger debateLee pushed back against a proposal to cap major shareholder stakes at 15%, pointing out that the exchange market is already a monopoly where smaller players hold less than 3% combined. He warned lawmakers that forcing firms with negligible market share to dilute ownership would effectively choke off investment. He argued that such restrictions would stifle innovation, advocating instead for a tiered regulatory approach that accounts for new entrants starting with no market share. Lee also addressed a separate policy direction that would recognize bank-led consortia—in which banks hold more than 50% plus one share—as eligible stablecoin issuers. He said the approach was not intended to favor any particular corner of the financial industry. On the enforcement side, the commission announced plans to strengthen its response to cross-border crime and money laundering involving digital assets, as reported by Digital Asset. A key measure under consideration is the expansion of the travel rule, which requires exchanges to share sender and recipient information for transactions. The rule currently applies to transfers of 1 million won ($680) or more, and regulators want to extend it to smaller transactions as well. The commission also pledged to support AI-driven transformation across the financial sector and to build a comprehensive regulatory framework for digital assets. STOs near legalizationIn a related development, South Korea has cleared a major legislative hurdle for the tokenization of real-world assets (RWAs). Amendments to the Capital Markets Act and the Electronic Securities Act passed the National Assembly last month, roughly three years after financial authorities first issued guidelines on security token offerings (STOs), according to another Digital Asset report. The legislation allows securities to be digitized on blockchain-based distributed ledgers and creates a new class of issuer account management institutions, enabling qualified companies to issue and manage security tokens directly. The bill now requires only Cabinet approval and official promulgation before it takes effect.

Bitmain to Launch Filecoin Token Mining MachinesBitmain, the well-known Chinese manufacturer of Bitcoin mining machines, has made a significant announcement that marks its entry into the Filecoin ecosystem.FIL token miningAccording to that announcement made by the company on social media on Friday, the company is set to launch FIL token mining machines, which are expected to have a hash rate of up to 4,300T each and will be available for purchase at $38,888 per unit.Filecoin, created by Protocol Labs, was originally designed as a blockchain-based collaborative digital storage and data redemption solution. As an open-source, public cryptocurrency and digital remittance system, Filecoin has garnered significant attention in the market.Photo by Traxer on UnsplashDelegated stakingAlong with the mining machine development, Bitmain has introduced a delegated staking service with a low monthly fee of 0.5%. This service offers traders an opportunity to earn more through staking with minimal computational energy. Delegated staking allows users to delegate their staking rights to validators or staking pools, enabling them to partake in the rewards generated by these validators.According to a recent report by crypto market intelligence firm Messari, Filecoin’s data storage market continued to grow in Q2, 2023. Active data storage deals grew 64% when compared with the previous quarter. That deal flow resulted in increased revenue from fees, which was up 91%. Further development of the Filecoin protocol resulted in the recent introduction of the Filecoin Virtual Machine (FVM). That runtime environment for smart contracts has enabled new use cases, including liquid staking, decentralized computing, and perpetual storage.Bitmain’s venture into the Filecoin ecosystem not only supports the development of FIL token mining machines but also offers hope for FIL token holders who experienced losses. The FIL unit price peaked at $190 during the 2021 crypto bull market. The company’s involvement has positively influenced Filecoin’s price.Meanwhile Bitmain continues to be a major player in the crypto mining equipment space. 2021 has not been without its blemishes for the company though, as in April the Beijing-based company was fined $3.7 million by the Chinese authorities for a violation of Chinese tax regulations.Bitmain hashrate dominanceEarlier this month, US bitcoin miner TeraWulf purchased 18,500 mining machines from Bitmain, with a view to deploying them at its 43 MW Lake Mariner mining facility in New York State in the US. The deal had a value of $75 million.A recently published report by crypto intelligence firm Coinmetrics outlined that the majority of the Bitcoin hashrate is being processed by Bitmain’s S19 miner model. Three Bitmain miner models are responsible for 76% of the entire Bitcoin network’s hashrate, the report states.