Hong Kong regulators consider opening up crypto ETFs to retail

South Korea’s financial authority is moving to strengthen its ability to intervene early in suspected cryptocurrency price manipulation cases by seeking explicit legal authority to freeze related accounts. According to News1, the Financial Services Commission (FSC) plans to include the measure in the upcoming second phase of the country’s cryptocurrency legislation. Under the proposal, when financial accounts are suspected of being used to manipulate crypto prices, the FSC would be able to coordinate with financial institutions and cryptocurrency exchanges to freeze the funds.Photo by Ethan Brooke on UnsplashClosing gaps in illicit fund recoveryThe initiative is intended to address a long-standing enforcement challenge. Authorities have often struggled to recover illicit gains because funds can be moved elsewhere while investigations and court proceedings—often lasting up to three years—are still ongoing. By allowing accounts to be frozen before a formal investigation is launched, the proposal aims to close a critical gap in illicit fund recovery. An official from the authority cited a recent precedent to illustrate the measure’s potential impact. In September, a government task force disrupted a stock price manipulation case involving roughly 100 billion won ($69 million), of which about 40 billion won was illicitly obtained. It marked the first time the government implemented an early account freeze, preventing additional funds from being transferred beyond its reach. The official added that the same approach could be applied to cryptocurrency price manipulation cases when suspicious transactions are detected through Korean crypto exchanges. However, the measure would not be effective against activity conducted via overseas platforms. The proposal comes as the government continues to refine the second phase of its crypto regulatory framework, which is expected to focus primarily on stablecoin regulations. While authorities had originally planned to submit the bill to the National Assembly by the end of last year, the timeline has been pushed to this year as financial and monetary regulators work through unresolved differences. One point of contention lies between the Bank of Korea and the FSC. The central bank supports allowing only bank-majority consortia to issue stablecoins, while the FSC opposes setting a bank-ownership threshold, arguing for the inclusion of non-bank participants. Alongside enforcement and regulatory reforms, the government is also signaling a broader push to expand investor access to digital assets. A Jan. 9 document from the Ministry of Economy and Finance showed the government plans to permit trading in spot crypto ETFs to improve investor access under its 2026 economic plan. Against this policy backdrop, traditional financial firms are pressing ahead with their own digital asset initiatives, seeking to position themselves within the evolving framework. Life insurer explores blockchain collaborationsKyobo Life Planet Life Insurance, a mobile-only subsidiary of Kyobo Life Insurance, has partnered with Singapore-headquartered crypto exchange Crypto.com. According to South Korean media outlet Financial News, under the agreement, eligible users will receive benefits on Crypto.com, while reward points earned through Kyobo Life Planet’s healthcare platform can be used within the exchange’s ecosystem. The collaboration reflects broader efforts by the parent company to expand into digital assets. Last month, Kyobo Life Insurance joined Circle’s public testnet, Arc, to assess the technical feasibility of stablecoin-related infrastructure. 

OKX and Bybit Exclude Sanctioned Russian Banks from P2P ServicesIn response to the mounting pressure on crypto firms to improve general compliance standards, prominent digital asset exchanges OKX and Bybit, based in the Seychelles and Dubai, have decided to delist sanctioned Russian banks from their peer-to-peer (P2P) services.Photo by Eduardo Soares on UnsplashThe move by the two exchange platforms, brought to light by Russian media reports, comes just days after Binance had done the same.Tinkoff Bank and Sberbank, two significant Russian financial institutions, have been expunged from the P2P platforms of OKX and Bybit. This effectively removes the option for Russian crypto users to exchange their assets for fiat through these banks. The decision sees the exchanges fall into line with Western sanctions imposed on the banks due to Russia’s actions in Ukraine.Enforcement difficultiesWhile the removal of these banks from the platforms is a significant step, the nature of P2P transactions introduces complexities in enforcing such bans comprehensively. Reports indicate that certain users are still engaging in P2P transactions with these banks through private channels, showcasing the challenges in regulating this decentralized method of exchange.In the case of OKX, at the time of publication, the platform still allows Russian users to receive fiat through accounts held with the Russian Standard Bank and the Russian branch of Raiffeisen Bank.This action aligns OKX and Bybit with Binance, which faced a similar scenario last week. Binance came under scrutiny when it continued to list the sanctioned banks as part of its payment methods. Following a report by The Wall Street Journal, Binance eventually removed the banks from its platform.Binance’s compliance effortsA spokesperson from Binance conveyed that while the banks have been delisted, the company remains committed to ensuring compliance by continuously updating its systems.“We regularly update our systems to ensure compliance with local and global regulatory standards,” they said. “When gaps are pointed out to us, we seek to address and remediate them as soon as possible.”Despite this stance and the latest action it has taken, users on Binance’s P2P platform are still posting ads for the sale of crypto using the “green bank,” referring to the sanctioned banks, as the preferred method of payment.Western-imposed sanctions have led to significant economic challenges in Russia, pushing individuals and institutions towards cryptocurrencies as a potential solution. In a country that has previously banned private cryptocurrencies, the attraction of decentralized digital assets has grown stronger as a means to break through the sanctions-induced financial stranglehold.Sanctions impactReports from Russian financial institutions reveal dramatic declines in profits, some as high as 90%, as they find themselves cut off from the global payments network SWIFT. Tinkoff Bank, for instance, reported a substantial decline of 67% in the second quarter of 2022, attributing the drop to escalating global tensions.In April, the Bank of Russia introduced a bill that could potentially allow cryptocurrencies to be used in international trade, a measure aimed at mitigating the impact of sanctions. While this could potentially open doors for cross-border transactions involving cryptocurrencies, the restrictions on local transactions remain intact.

STX Token Debuts on Korean Exchange BithumbSTX, the native token of the Stacks network, made its debut on the KRW market of Bithumb, a renowned Korean cryptocurrency exchange, at noon (Korea Standard Time) on Tuesday. The listing price is 828.5 KRW per unit.Photo by Jonathan Borba on UnsplashBitcoin scalability solutionStacks is a Bitcoin scalability solution that addresses the challenge of transaction latency through the use of microblocks. It utilizes the programming language Clarity and benefits from the security of Bitcoin by employing its unique consensus algorithm called Proof of Transfer (PoX). This mechanism enables Stacks to settle transactions on the Bitcoin network.Stacks is one of the most anticipated projects associated with Bitcoin, and its token was approved by the U.S. Securities and Exchange Commission in 2019.STX token usageThe STX token serves multiple purposes within the Stacks blockchain ecosystem. Users can utilize it for stacking, participating in governance activities, and paying transaction fees.