Haru Invest Considers Server Suspension as Troubles Persist

Korea and Japan Collaborate to Develop Accounting Standards for Virtual AssetsThe Korea Accounting Institute (KAI) announced today that it held a bilateral meeting yesterday with the Japanese Financial Accounting Standards Foundation (FASF) to discuss devising accounting standards for virtual assets. Among the attendees were high-level officials of the FASF, including Yasunobu Kawanishi, Chair of the Accounting Standards Board of Japan.Photo by Shubham’s Web3 on UnsplashConsensus on establishing standardsBoth parties agreed on the importance of establishing accounting standards for virtual assets. These standards should be practical and easy to follow, ensuring that they offer sufficient information to readers of financial statements.Reciprocal sharing of progressKAI is in the process of revising the Korean version of the International Financial Reporting Standards (K-IFRS) to require companies to disclose information related to virtual assets within the annotations of their financial statements. This mandatory disclosure of virtual asset-related details was announced by the Korean Financial Services Commission last month, with implementation scheduled for January of next year. This significant update was a topic of discussion in the meeting. Similarly, the FASF reciprocated by sharing its own progress and advancements.This meeting was arranged in light of the deepening relations between the two nations. The close collaboration between the two groups is poised to give Korea momentum to broaden its global presence. Moving forward, the accounting bodies of both countries are committed to continuing their cooperative efforts.

While cryptocurrencies may be banned in China, crypto trading activity continues in some corners, nonetheless, sometimes through accessing overseas exchanges. With that, authorities recently uncovered a massive underground banking operation that exploited crypto trading platforms to evade local forex regulations.Photo by Manuel Joseph on Pexels$2.2 billion laundering operationOn Sunday, an account on popular Chinese social media platform WeChat run by China’s State Administration of Foreign Exchange (SAFE) published details of the $2.2 billion laundering operation bust. Xu Xiao, the Inspector at the Qingdao Branch of the State Administration of Foreign Exchange, revealed that the scheme involved underground banks who purchased virtual currencies and then sold the virtual currencies through overseas trading platforms to obtain the foreign currency they needed. This process, he explained, completes the conversion of yuan and foreign currencies, constituting the illegal act of buying and selling foreign exchange. Stringent capital controlsChina enforces stringent rules on money transfers outside the country. Citizens are limited to exchanging up to $50,000 in foreign currency and require a permit for transactions beyond that limit. Any transaction exceeding the limit without a permit is considered money laundering. During a recent investigation, authorities seized cryptocurrencies valued at approximately $28,000 in Tether, Litecoin and other digital currencies. However, the operation is estimated to have facilitated the movement of over $2.2 billion, involving more than a thousand bank accounts across 17 provinces and municipalities. Monetary control loopholesChina, once the largest cryptocurrency market, imposed a comprehensive ban on crypto exchanges in September 2017 and subsequently expanded its restrictions to include crypto mining and trading. Despite these measures, reports have surfaced about underground crypto exchange operations. Earlier this year, an investigative report by the Wall Street Journal found that global exchange Binance continues to do thriving business with Chinese customers. Global crypto exchanges are reportedly still onboarding Chinese clients indirectly. The South China Morning Post (SCMP) recently accused Binance of facilitating Chinese crypto trading accounts by falsely claiming they are from Taiwan. While mainland China adopts a hostile stance towards cryptocurrencies, the special administrative region of Hong Kong remains progressive in the sector. Hong Kong’s regulatory authorities have introduced specific rules for cryptocurrencies and are licensing crypto exchanges operating within the jurisdiction. Arthur Hayes, the co-founder of the BitMEX crypto derivatives platform, recently described Hong Kong as the gateway for mainland China to global capital markets. Hayes asserted that wealthy Chinese individuals all bank in Hong Kong and with that, they all have access to crypto exchanges and brokers. In Cambodia, it is understood that illicit Chinese-linked activities oftentimes implicate the use of U.S. dollar stablecoin Tether (USDT) to move funds in and out of China even though Tether is banned in Cambodia. The latest crackdown in China underscores the ongoing challenges faced by authorities in controlling crypto-related activities, highlighting the dynamic nature of such activity within and adjacent to mainland China. As regulatory scrutiny intensifies, the contrast between mainland China’s approach and Hong Kong’s more open stance toward cryptocurrencies becomes increasingly evident. 

Bybit Extends UAE Tendrils via Blockchain ScholarshipDubai-headquartered crypto spot and derivatives trading platform Bybit, the third most popular cryptocurrency exchange globally, has announced a new partnership with the American University of Sharjah (AUS) as part of its ongoing commitment to promote crypto adoption in the United Arab Emirates (UAE).The collaboration was solidified through the signing of a Memorandum of Understanding in Sharjah, the UAE's third largest city. As a testament to this partnership, Bybit has contributed AED 1,000,000 ($272,000) to establish a scholarship fund, facilitating the academic and research endeavors of 20 students pursuing fintech and blockchain studies at AUS. Eligible students enrolled in computer science and computer engineering programs will be able to benefit from the Bybit Scholarship starting from the upcoming fall semester.Photo by Ainur Kamaev on UnsplashHackathon sponsorshipIn addition to the scholarship initiative, Bybit is dedicated to broader industry endeavors and will contribute an extra AED 100,000 ($27,200) to sponsor a hackathon for the UAE blockchain community. The inaugural AUS-Bybit Inter-College Hackathon is scheduled to take place during the 2023–2024 academic year at the AUS College of Engineering.The UAE has recognized the significant role of cryptocurrencies in its trade activities, and the thriving crypto and blockchain industry in the country serves as a testament to the government’s visionary approach. Dubai alone is home to more than 772 crypto companies, solidifying the UAE’s position as a hub for digital asset innovation. Consequently, the demand for blockchain talent is expected to rise in the region.Industry partnershipsDr. Susan Mumm, Chancellor of AUS, emphasized the university’s commitment to excellence in education, attributing its reputation to strong industry partnerships that bridge the gap between academia and the corporate world. Through the collaboration with Bybit, AUS students will gain access to the technical knowledge necessary to stay abreast of the latest developments in the crypto and blockchain industry.The establishment of the Bybit Scholarship further supports students’ education and skill enhancement. Dr. Mumm expressed the university’s goal of producing professionals and lifelong learners who can make a positive impact in a rapidly evolving world.Ben Zhou, co-founder and CEO of Bybit, highlighted the pivotal role of younger generations in propelling the blockchain revolution forward. Zhou expressed his pleasure in establishing the Bybit Scholarship at AUS, enabling talented students to future-proof their knowledge and skills. He extended his gratitude to AUS for providing opportunities to raise awareness about cryptocurrencies and sharing first-hand industry insights with students from one of the most esteemed universities in the region. Zhou eagerly anticipated being inspired by future engineers, blockchain scientists, and Web3 startup founders.Bybit, a prominent player in the crypto space, unveiled its Dubai headquarters in April, solidifying its commitment to the region and its aspiration to contribute to the growth of the digital asset ecosystem. In May the company gained outline approval to operate in Kazakhstan. Demonstrating further progress still, last month the firm confirmed that it was extending its service offering to include crypto lending.