South Korean FIU rejects Hanbitco’s bid to become fiat-to-crypto exchange

South Korea’s one of the leading crypto exchanges, Bithumb, has launched a new service dubbed Benefit Zone. Here, users can participate in the platform’s promotional events and earn in-app points, local media outlet Digital Today reported. These rewarded points can be traded for crypto assets through an in-app point shop. The event missions are available either on its mobile app or on PC. Photo by Kanchanara on UnsplashOne of these event missions involves participants predicting Bitcoin prices – BTC Up? Down? – where users can make a bet on whether Bitcoin’s price will rise or fall compared to its closing price of the previous day. The mission is available daily from 10:00 to 22:00 (KST). Winners of the bet are provided with a reward of 100 points and double that amount if they are newly signed-up users of the given month. If the Bitcoin price remains unchanged, all participants are rewarded points.  More promotional events to comeAside from the Benefit Zone, Bithumb is hosting another event targeting new members who joined the platform in March. Those who deposit funds in Korean won into Bithumb deposit accounts are eligible for Bithumb Cash worth around KRW 20,000, or approximately $15. Bithumb’s Service General Manager Moon Seon-il stated that the exchange platform is conducting various promotional events to offer more perks and benefits to users, showing the company’s commitment to introducing more user-friendly services and events in the future.  

OpenAI CEO Sam Altman's Worldcoin project aims to bolster ties with Malaysian officials amid concerns over data privacy. Sam Altman and Alex Blania, key figures behind the Worldcoin project, recently engaged in discussions with Malaysian leaders, including the nation's Prime Minister, to enhance government relations. The move comes as Worldcoin faces scrutiny and seeks to address concerns surrounding data protection.Photo by Esmonde Yong on UnsplashAddressing privacy concernsThe "proof-of-personhood" crypto project has been under scrutiny for its data collection practices. Last month, temporary bans were imposed by Spain and Portugal, halting Worldcoin's data collection activities. The project offers WLD tokens to users in exchange for iris scans to create their personal World ID, prompting privacy advocates' concerns. Government attention and oversightWorldcoin's high-profile nature, coupled with Sam Altman's involvement, has drawn significant government attention. Countries like Germany, France, Argentina, Kenya and South Korea have initiated investigations into the project's data collection practices. Despite challenges, senior government officials continue to engage with Worldcoin amidst growing concerns about artificial intelligence threats like deepfakes. Strengthening government relationsTo address regulatory concerns, Worldcoin's parent company, Tools for Humanity, appointed Trevor Traina, former U.S. ambassador to Austria, as Head of Global Affairs. Traina emphasized the importance of meeting policymakers' expectations regarding data privacy and security. New privacy measuresIn response to regulatory pressures, Worldcoin introduced "Personal Custody," discontinuing the storage of biometric data for new signups. Additionally, users can now request the deletion of their iris codes, and stricter age verification measures have been implemented to prevent minors from signing up. These measures were developed in consultation with privacy experts and data protection authorities. Despite challenges, Worldcoin has assigned over five million World IDs, according to project data. 

The first tranche of spot Bitcoin and Ether exchange-traded funds (ETFs) have been officially approved to start trading in Hong Kong on April 30. Announcement from regulatorHong Kong’s Securities and Futures Commission (SFC) announced the official approval of the first batch of spot Bitcoin and Ether ETFs on April 24 via a press release seen by CoinTelegraph. The regulator first provided outline approval for these products on April 15. Additionally, some of the fund management firms themselves have come out to outline product trading commencement at the end of the month. The first batch of approved Hong Kong-based ETFs include China Asset Management’s (ChinaAMC) Bitcoin and Ether-based ETFs.  In a press release, the firm verified that its products will begin trading on April 30. HashKey Capital and Bosera Asset Management have partnered to offer similar spot products. A spokesperson for HashKey told Bloomberg that they’re ready to commence trading of the product at the end of the month.Photo by Ruslan Bardash on UnsplashIn-kind vs. cash-only approachHarvest Global Investments is the third fund manager that intends to launch such a product offering. The launch of these three spot Bitcoin and Ether-based ETFs on April 30 signals a new era for digital asset investment in Hong Kong. Unlike their counterparts in the U.S., which rely on a cash creation model, these ETFs in Hong Kong embrace an in-kind creation mechanism. This approach holds the potential to significantly boost assets under management (AUM) and trading volume, as highlighted by Bloomberg ETF analyst Rebecca Sin. The unique dynamics of Hong Kong's ETF creation model present an opportunity for market growth and innovation, positioning the region as a key player in the global digital asset landscape. By providing a regulated framework for retail and institutional investors, along with the ease of converting digital assets into fully regulated ETFs, ChinaAMC aims to cater to a growing demand for such offerings. China Asset Management’s Head of Digital Assets, Thomas Zhu, emphasized in the firm’s press release the in-kind creation feature. Potential fee warAs the ETF market in Hong Kong gains momentum, competition could result in downward pressure on fees. With issuers vying to offer the most competitive fees to attract customers, the stage is set for a potential battle of pricing strategies. Harvest, for instance, has already entered the fray with a full fee waiver and the lowest fee at 0.3% after the waiver, Bloomberg ETF analyst James Seyffart outlined on the X social media platform. This competitive landscape bodes well for investors, with fees for the first ETFs proving to be lower than expected, as noted by Eric Balchunas, senior ETF analyst at Bloomberg. All eyes will be on the performance and impact of these financial products relative to the crypto market in the Asian region and further afield.