Remitano Struck by $2.7M Alleged Hack

South Korean crypto exchange Bithumb is working with the International Criminal Police Organization (Interpol) to combat global criminal activities involving digital assets. According to Korean media outlet Joseilbo, Yoo Jung-ki, who heads Bithumb's Policy Support Office, met with Tomonobu Kaya, Assistant Director of Interpol's Financial Crime and Anti-Corruption Centre, during a recent meeting in Thailand. The gathering was part of a three-day event held from March 10 to 12, organized under Interpol's Project ViCTOR (Virtual assets-facilitated financial Crime – Trace, Obstruct and Recover), an initiative funded by Japan's Ministry of Foreign Affairs. During their meeting, the two officials explored ways to enhance cooperation while committing to maintaining a close, sustainable working relationship.Photo by rc.xyz NFT gallery on UnsplashExchange shares expertiseDuring his Bangkok visit, Yoo delivered a speech addressing emerging crypto crime trends and necessary regulatory changes to protect users. He also discussed the Financial Action Task Force's (FATF) guidelines and recommendations, along with South Korea's policies on anti-money laundering and combating terrorism financing (AML/CFT). His presentation resonated with the audience, particularly when he emphasized the importance of collaboration between the public sector and crypto exchanges on multiple fronts, including recovering stolen funds from criminals. Regarding the meeting, Yoo stated that he found it meaningful to participate, as a representative of South Korean crypto exchanges, in a gathering focused on developing global countermeasures against money laundering and digital asset crimes. He added that Bithumb is committed to supporting the international cooperative system aimed at preventing and recovering from crypto crimes. Interpol’s effortsThe event also covered recent updates on Interpol's Global Rapid Intervention of Payments (I-GRIP) stop-payment mechanism, launched in 2022, and Singapore's evolving crypto regulatory landscape. In June last year, Interpol reported that police across 61 countries had collectively intercepted approximately $135 million in fiat currency and $2 million in cryptocurrency, with I-GRIP helping authorities track illicit proceeds from both types of currencies.Interpol's involvement in investigating crypto crimes has been expanding recently. According to Cointelegraph, Argentine lawyer Gregorio Dalbon has requested that a prosecutor and judge issue an Interpol Red Notice for Hayden Davis, a co-creator of the LIBRA token allegedly linked to Argentine President Javier Milei. The controversial memecoin, launched last month, briefly reached a $4.5 billion market cap before its value collapsed.

As Hong Kong approaches the culmination of the Securities and Futures Commission's (SFC) deadline for cryptocurrency exchanges to seek licenses, the regulator issued a reminder to investors about the potential risks associated with trading on unlicensed platforms.Photo by Jarrod Erbe on UnsplashUrging cautionIn a notice released on Monday, the SFC emphasized the importance of engaging exclusively with SFC-licensed virtual asset trading platforms (VATPs) to ensure investor protection. With only one month remaining for exchanges to apply for a license under the city's virtual asset regulation, the SFC urged investors to exercise caution when dealing with platforms that have not yet received approval.The SFC suggested that investors check the list of regulated platforms, which it maintains on its website. Within the notice, the regulator outlined that in the past, some platforms have claimed to be regulated entities when they were not compliant platforms and not adhering to existing regulations within the Chinese autonomous territory. The advisory comes after the fallout from a high-profile fraud incident involving the JPEX trading platform last fall, resulting in substantial losses of $192 million. Growing list of VATP license applicantsLast month, four additional crypto exchanges, including the KuCoin-affiliated HKVAEX and Singapore-based Bybit, joined the list of official VATP license applicants. The SFC began publishing this list in response to the JPEX scandal, underscoring the importance of regulatory compliance in the cryptocurrency sector. Hong Kong's virtual asset regulation, enacted as an amendment to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance last year, stipulates that companies engaged in selling or marketing cryptocurrencies to Hong Kong residents must apply for a license by Feb. 29. Those failing to do so must cease business operations in the city by May 31. Currently, OSL and HashKey are the only licensed exchanges in Hong Kong, having received an earlier voluntary license that was later upgraded to include retail investors. These exchanges are operating under an interim solution permitted by the SFC, allowing retail investors to trade on their platforms. Setting a high barWhile 14 companies have formally submitted license applications to date, Patricia Ho, General Counsel for blockchain company Scroll, told the South China Morning Post (SCMP) that the stringent requirements set by Hong Kong have led to a selective process. Ho explained that the city has intentionally set a high bar for application submission, resulting in only the most committed and resourceful entities progressing to the application stage. Last month, it emerged that the SFC had acted to bolster investor protection by introducing a minimum insurance requirement of 50% for licensed crypto exchanges that handle customer funds. It is also planning to introduce a regulatory framework relative to crypto over-the-counter (OTC) trading desks. The SFC is also monitoring individual crypto projects, as last week, the regulator issued a stern warning to those behind the offering of the Floki and TokenFi staking programs. As the deadline approaches, Ho anticipates potential enforcement actions against smaller platforms operating in legal gray areas. Larger platforms, on the other hand, have already begun restricting access from Hong Kong. 

The governor of South Korea's Financial Supervisory Service (FSS) met with the United States Securities and Exchange Commission (SEC) Chair Gary Gensler, according to Korean media outlet Newsis. The meeting took place during FSS Governor Lee Bok-hyun's business trip to the U.S. The meeting with the SEC chair was pre-arranged earlier this year, as previously reported by crypto media CoinNess.  Governor Lee reportedly had high-ranking meetings with officials from the SEC and Commodity Futures Trading Commission (CFTC) between May 14 and May 16. Photo by Daniel Bernard on UnsplashDuring his meeting with the SEC chair, Governor Lee discussed various financial and cryptocurrency regulatory issues including the recent approval of spot Bitcoin ETFs, and reaffirmed the need for close cooperation between two countries in such oversight efforts. In particular, the two regulators came to an agreement to reinforce cooperation in investigation into unfair trading practices associated with securities and virtual assets. He also met with CFTC Chairman Rostin Behnam to share the recent trends regarding virtual asset legislation in the U.S. and agreed to strengthen information sharing between the two countries. The details of the meeting agendas remain confidential, as mutually agreed upon by the two supervisory organizations.   International financial regulatory cooperation Governor Lee’s latest meetings with U.S. financial regulators followed his attendance at the meeting for the Group of Central Bank Governors and Heads of Supervision (GHOS) held in Basel, Switzerland, on May 13. The GHOS is the oversight body of the Basel Committee on Banking Supervision (BCBS).  During the GHOS meeting, participants reached a consensus on the urgency of swiftly implementing Basel III, a set of bank regulation standards. Two-thirds of member countries are set to partially or completely adopt Basel III by the end of this year.  Furthermore, the member countries agreed to postpone the implementation of the Prudential Treatment of Banks' Exposures to Cryptoassets to Jan.1, 2026, considering the regulatory framework is currently under amendment.