Public Confidence in Crypto Wanes in Hong Kong Amid JPEX Scandal

Japan’s Hokkoku Bank to Launch Local Digital Currency in SummerEarlier this month, Hokkoku Bank, a Kanazawa-based bank in Japan, announced its collaboration with Suzu City, local community-based credit union Kono Shinkin Bank, and blockchain service provider Digital Platformer to launch a local digital currency in Suzu, Ishikawa Prefecture this summer, according to CNET Japan.Promoting cashless transactionsThe digital payment system aims to promote cashless transactions in the local area and digitize Suzu’s customer rewards program, enhancing capital flow and productivity. The local digital currency service for citizens, Suzu Tochituka, and the retail customer rewards program, Suzu Tochipo, are set to launch in the summer of 2023.By winter 2023, Hokkoku Bank plans to issue the stablecoin Suzu Tochika for use within Suzu. Retail stores will be charged a 0.5% fee for transactions made with Suzu Tochika.Photo by Ivan Samkov on PexelsFrom city to prefectureFollowing its services in Suzu, Hokkoku Bank intends to form an alliance with towns in Ishikawa and leverage blockchain interoperability to introduce Ishikawa Tochika, a digital currency for use across the entire prefecture. This project’s goal is to establish a payment system that encompasses all financial institutions. In Suzu and Okunoto, both Kono Shinkin Bank and Hokkoku Bank will cooperate to distribute and promote the payment system.Other regionsTowns and local financial institutions in other regions are also committed to collaborating on local digital currency promotion to enhance residents’ convenience, streamline administrative work, and boost productivity. To ensure security, Digital Platformer’s new blockchain-powered payment system Shiki will record and manage transaction data, offering high traceability and protection against forgery and counterfeit.

Taiwan police uncover $320M crypto money laundering operationTaiwan police have recently exposed the largest cryptocurrency money laundering case in the nation’s history, involving 320 million USDT (approximately 10.5 billion New Taiwan dollars).Photo by DrawKit Illustrations on UnsplashCross-border laundering operationIt emerged on Tuesday that the Electronic Investigation Team of the Criminal Bureau initiated their probe after uncovering a fraudulent scheme related to a counterfeit Taishin Securities mobile software last year. This led them to a merchant with the surname Qiu, the alleged mastermind behind this operation who was suspected of laundering substantial sums through virtual currency.Qiu is believed to have maintained connections with overseas gambling and fraud groups, engaging in cross-border communication with illicit organizations in countries including Hong Kong, Malaysia and the Philippines.Their investigation revealed that Qiu had been conducting transactions involving 320 million Tether US dollar stablecoins since February of the previous year. In June, law enforcement apprehended Qiu during one of his visits to Taiwan, along with four alleged accomplices.High value goodsDuring the operation, authorities seized high-value assets from Qiu, including a Lamborghini Urus, a Lexus LM and three Audemars Piguet watches, with a combined market value exceeding TWD 13 million. The lavish lifestyle maintained by Qiu, evident from his luxury cars and high-end watches, serves as a stark reminder of the extensive underground economy driven by money laundering.Evidence from the operation suggested Qiu’s involvement in handling illicitly obtained Tether coins worth approximately TWD 70 million. Further investigations uncovered that Qiu regularly sold virtual currency and converted it into cash to effectively obscure the money’s origins, accomplishing the goal of laundering.In piecing the activities of the group together, police determined that victims were instructed to transfer their funds to fictitious accounts. In that way, the money found its way to crypto exchanges and individual crypto traders under the direction and control of the group.Qiu would also retain a 1% profit margin from the laundered amount. Several other individuals were implicated in this extensive operation, including a foreign affairs officer named Liao and two other individuals named Chen and Huang. Each of these individuals is presently under investigation, with varying levels of bail and restrictions imposed.The intricate web of transactions and the substantial amount laundered by Qiu have surpassed previous records held by the Electronic Investigation Team. As investigations continue, law enforcement is determined to uncover the full extent of this operation and trace the entirety of the money flow.Taiwan’s legislators are currently working on producing a regulatory framework for crypto in the country. The only regulatory aspect that is covered right now is oversight relative to anti-money laundering (AML) and know-your-customer (KYC) regulation. In 2018 Yang Chin-long, Taiwan’s central bank Governor, called for a need to regulate crypto on the basis of existing AML rules, with the authorities subsequently following through on that measure.In July 2022, the country’s Financial Supervisory Commission (FSC) penned a letter to the banking sector, banning the purchase of digital assets via credit cards.

South Korean insurance companies, DB Insurance (DB) and DB Life Insurance (DB Life), are hosting the 2024 InsurTech Startup Incubation Program (ISIP) in collaboration with Korea Internet & Security Agency (KISA), local media Daily Korea reported.  Insurtech is a compound word of insurance and technology. This year, the ISIP focuses on recruiting blockchain-based insurtech startups with high potential that can contribute to the insurance business value chain, including activities such as product launch, marketing and customer service. The program is open to any insurtech startup with innovative technologies and services. Photo by Tierra Mallorca on UnsplashLaunched in 2020, the ISIP has been supporting insurtech startups with innovative ideas to expand their business in the insurance industry, aiming to create a robust and collaborative insurtech ecosystem. Over the past four years, the program has served as a mentor for 21 startups, supporting their product release, new technology verification and business pivoting.  Business growth opportunity for insurtch startups Startups selected for the ISIP are provided with the opportunity to receive mentorship – including mentoring services from insurance experts, business strategy advice and IR pitching coaching sessions – that will help facilitate their business growth.  In addition, selected startups will be eligible to apply for surety credit to the Korea Credit Guarantee Fund on favorable terms and gain opportunities to raise funds from venture capitalists. Those deemed profitable enough for commercialization will be able to have a chance to collaborate with DB and DB Life.  Application forms are available on the KISA’s website and can be submitted via e-mail between Feb.27 to March 27. Applicants should undergo document screening and a presentation test to join the ISIP.