Bybit Suspends UK Services Due to New Marketing Regulations

China introduces identity verification through RealDID on blockchainThe Chinese government, in collaboration with the Blockchain-based Service Network (BSN), has unveiled plans for the introduction of RealDID, a new digital identity service.Integrating blockchain into public systemsThis platform is set to bring blockchain-based digital identity verification processes into broader use, verifying the digital identities of China’s 1.4 billion people. Such an eventuality would represent a pivotal moment in China’s ongoing efforts to integrate advanced technologies into governance and public administration.The platform is being geared to deliver a spectrum of services, encompassing personal real-name confirmation, encrypted personal data protection and certification. Notably, it will enable private logins, establish business identities and offer personal identification certificate services, coupled with information vouchers on personal identity.Photo by Tamara Gak on UnsplashAnonymous online identityA standout feature of RealDID is its provision for Chinese citizens to register and access online portals anonymously through a Decentralized Identity (DID) address. This feature ensures the privacy of transactions and personal data, addressing global concerns over data security. The introduction of RealDID underscores China’s commitment to harmonizing technological advancement while at the same time, preserving the privacy of the individual.Although the specific roll-out date for RealDID across China’s vast population remains undisclosed, the potential impact of this initiative is monumental. The platform is poised to significantly enhance the security and efficiency of identity verification processes, a critical element in the realm of digital transactions and interactions.RealDID is a strategic component of China’s broader technological vision, aimed at solidifying its position as a global leader in emerging technologies. The nation has been actively investing in and regulating emerging innovations such as artificial intelligence, central bank digital currencies (CBDCs) and cryptocurrencies. In tandem with these endeavors, China is actively working to reduce its reliance on foreign semiconductor chips by boosting domestic production.BSN FoundationBSN, operated by China’s National Information Center, has forged partnerships with major tech players like China Mobile and China UnionPay, illustrating the collaborative nature of this national initiative. The network was co-founded by Hong Kong’s Red Date Technology. With the network originating in China, last month, the BSN Foundation was established in Singapore, featuring five global members.These included Blockdaemon; Zeeve, a Los Angeles-based blockchain infrastructure automation platform; TOKO, a Hong Kong-headquartered digital asset creation platform; Germany’s GFT Technologies; and Red Date Technology. The five will act as a governing body for the BSN Spartan Network.The unveiling of RealDID by the Chinese government signifies a significant stride in integrating blockchain technology into everyday governance and public services. Leveraging blockchain’s inherent decentralization and security features, RealDID aims to provide a more secure and efficient method of identity verification while upholding user privacy.This move aligns with the global trend of governments exploring blockchain technology for diverse public services, highlighting China’s interest in spearheading technological innovation. As the global landscape evolves, China’s strides in the realm of blockchain-based identity verification serve as a testament to its ongoing interest in the future of digital governance.

Compliance and Cooperation — A Necessary Formula for Combatting Crypto CrimesFrom common scams like voice phishing to threats of violence, the involvement of cryptocurrencies in crimes against the general public is steadily on the rise both in South Korea and abroad.Photo by Bermix Studio on UnsplashAccording to blockchain data analysis firm Chainalysis, the scale of cryptocurrency-related crimes and hacking on a global scale has decreased by 45.2% and 23.5%, respectively, compared to last year. However, financial losses resulting from smaller ransomware attacks, including phishing scams, are showing an upward trend.Authorities and industry figures alike are increasingly emphasizing the need for close cooperation to combat this growing issue, as existing regulations and legal frameworks remain insufficient to do so.Chainalysis and crypto exchange Binance co-hosted a policy summit in Seoul on Tuesday called “Securing the Future of Crypto,” where experts gathered at the Courtyard Marriott hotel to discuss compliance and cooperation between the public and private sectors in fighting crypto crimes.Challenges and complexities in crypto investigations“The Korean National Police Agency receives dozens of reports of financial losses and urgent requests for account freezes every day, with 80% of them pertaining to Binance,” said Kim Min-jae, an investigator at the National Police Agency’s International Cyber Cooperation Division.Citing a recent case of a voice phishing scam targeting a woman in her 60s, Kim said that authorities were able to proceed with the investigation within 30 minutes after receiving information from the exchange. However, addressing crimes beyond large cryptocurrency exchanges like Binance, such as those involving decentralized finance (DeFi) systems or foreign exchanges, poses a more difficult challenge due to the lack of proper measures to deal with them.Lee Soo-pyeong, a cybercrime investigator at the Korean National Police Agency’s Cyber Investigation Division, also noted that although domestic cases are relatively easier to investigate, there have been many cases — such as the appalling Nth Room case that caused an uproar throughout Korea in 2020 — that involved overseas accounts and exchanges.Steps for effective crime controlWhat measures, then, should authorities and corporations take in order to deal with such issues? Lee stressed the importance of cooperation among international judicial bodies and adherence from businesses to enhance the response to increasingly sophisticated crypto crimes.Know Your Customer (KYC) standards — the guidelines used in investment and financial services to verify customers’ identities and assess their risk and financial profiles — play an important role in this regard. However, “There are no platforms yet, including major exchanges like Binance, that provide us with personal information through KYC measures when funds are laundered,” Kim explained. He expressed hopes for a system jointly established by relevant entities, including local exchanges, that will enable swift criminal investigation.Lee also highlighted the importance of compliance from foreign companies, stating, “While it’s possible to request mutual legal assistance in criminal matters from the International Criminal Police Organization (Interpol), active cooperation from foreign companies is essential.”From an international point of view, Jarek Jakubcek, Head of Intelligence and Investigations APAC at Binance, pointed out that upholding international standards and standardized processes is important, given the fact that crypto crimes transcend borders. While some countries excel in compliance and enforcing anti-money laundering (AML) policies, others fall short, leading criminals to exploit these disparities.Recently, there have been criminals who move their funds through blockchain networks. The development of bridge technology, which facilitates cross-chain asset transfers, has led to laundering techniques becoming more and more sophisticated. However, he assured that tracing funds is still possible, although doing so has become harder than before.The amalgamation of these circumstances has thereby ushered in the era of Know Your Transaction (KYT). While exchanges have traditionally been obligated to perform Know Your Customer (KYC) procedures to prevent money laundering, they must now go beyond verifying user information and analyze customer transaction data in order to understand where money is coming from and how it flows, Jakubcek said. To achieve this, he argued, they must request information from users and work with on-chain data analysis solution companies like Chainalysis to secure real transaction data. Alec Zebrick, Manager of Investigations in the Asia-Pacific region at Chainalysis, added that leveraging on-chain data allows the verification of most transactions.In the rapidly evolving crypto landscape where crimes are still a force to deal with, experts agree that reinforcing compliance and cooperation between exchanges and authorities is imperative.

South Korea is holding a joint two-day conference with the Organization for Economic Co-operation and Development (OECD) on Monday to discuss digital finance in the member countries of the Association of Southeast Asian Nations (ASEAN).  Held in partnership with Korea’s Financial Services Commission (FSC) and the Korea Institute of Finance (KIF), the event was titled “OECD-FSC-KIF Roundtable on Digital Finance in ASEAN.” The roundtable intends to bring together many financial experts and high-ranking regulators worldwide, sharing the trend of digital financial frameworks in the ASEAN region while seeking solutions to emerging risks following financial digitalization.  Photo by Evangeline Shaw on UnsplashTwo-day event focusing on digital assets and AI The first day focused on the global market trend relative to digital assets such as central bank digital currency (CBDC) and virtual assets. FSC Vice Chairman Kim So-young, KIF Chairman Lee Hang-yong and OECD Director for Financial and Enterprise Affairs Carmine Di Noia delivered opening remarks, followed by discussion sessions joined by expert panelists. Among the first day’s roundtable agendas were: “Digital assets, CBDCs, tokenization and DLT-based finance: the Asian perspective,” “The limits of DeFi in terms for financial inclusion: Lessons from ASEAN,” “DeFi and crypto assets in ASEAN and beyond” and “Cyber-security in the financial sector.”  The second day focuses on leveraging artificial intelligence (AI) in financial sectors, with sessions titled “Artificial intelligence in Finance: the Asian perspective” and “Generative Artificial Intelligence in Finance in Asia and ASEAN.”  South Korea’s commitment to bolstering global financial cooperation During the roundtable, the FSC Vice Chairman Kim vowed to strengthen global financial cooperation with ASEAN countries. “(We) will continue strengthening our cooperation with other global partners, including ASEAN countries and international organizations, to share latest trends in finance and maintain our system in line with the international regulation norms,” said Kim.