Animoca Brands Secures Funding to Expand Web3 Identity Project

Korean Prosecutors Allocate $734K Budget for Crypto Crime InvestigationsThe South Korean Supreme Prosecutors’ Office has earmarked a budget of up to KRW 986 million (approximately $734,000) this year for investigations pertaining to virtual assets, according to data received by the local newspaper Law Times from the Ministry of Justice last Thursday. The significant size of the budget suggests that the prosecution is prioritizing efforts to combat the growing surge in virtual asset-related crimes.Photo by Tingey Injury Law Firm on UnsplashBudget divisionWithin this budget, KRW 778 million has been designated for the purchase of software licenses for virtual asset tracing and analysis equipment, while KRW 280 million has been allocated for an integrated strategic plan to establish a platform for analyzing and tracing unauthorized virtual asset transactions. The budget for this platform consists of preliminary planning costs. Related expenditures are expected to increase as the project is fully implemented.“It is true that our budgets are being concentrated on crimes related to virtual assets due to the fact that they have recently become a social issue,” said a prosecution official. “It may not be a lot compared to our overall budget, but assigning almost KRW 1 billion for one specific field of investigation is still a considerate amount.”Rising crypto crimesIn Korea, crimes associated with virtual assets have been increasing annually. This includes tax evasion, bribery, foreign exchange law violations, and money laundering, as well as cryptocurrency market issues including issuance, listing, and distribution. According to the Supreme Prosecutors’ Office, reported cases of suspicious virtual asset transactions received by the Korea Financial Intelligence Unit (KoFIU) surged from an average of 66 cases per month in 2021 to 900 cases in 2022, then 943 cases in 2023 — a fourteen-fold increase in just three years.Subsequently, the scale of the damages caused by cryptocurrency crimes has also seen a sharp rise. The total value of all reported damages skyrocketed from KRW 467.4 billion in 2017 to KRW 1.02 trillion last year, more than doubling in five years. The cumulative loss over this period exceeds KRW 5.3 trillion.Focused effortsThe prosecution has thus dispatched financial experts from organizations including KoFIU and Korea Exchange to create a joint virtual asset crime investigation unit under the Seoul Southern District Prosecutors’ Office dedicated to investigating cryptocurrency crimes.The prosecution’s Cybercrime Investigation Division has also begun developing a tracking system optimized for the Korean market to trace the flow of virtual assets. The foreign software that is currently being used for tracking comes with considerable expenses and limitations, particularly for tracking flows within the domestic market, where there are many transactions involving smaller, locally-issued cryptocurrencies called “kimchi coins.”“We are dedicating our manpower and technological development to virtual asset investigations,” said a high-ranking official from the prosecution. “We will also strive to secure the budget necessary for these efforts.”

Interactive Brokers Hong Kong secures retail crypto trading licenseInteractive Brokers Hong Kong has successfully obtained the necessary licensing to facilitate retail crypto trading in Hong Kong, marking a pivotal move for the brokerage firm in the rapidly evolving crypto landscape of the region.This announcement was made by David Friedland, the Managing Director for Asia Pacific at Interactive Brokers, on LinkedIn on Friday, solidifying the firm’s position as a significant player in the local crypto market.Photo by Risa Fukunaga on UnsplashOngoing interest in virtual assets in Hong KongThe decision to enter retail crypto trading comes at a time when Hong Kong is experiencing sustained interest and activity within the crypto sector. Interactive Brokers had rolled out BTC and ETH trading services to accredited investors in Hong Kong in February. Major companies are actively seeking local licensing, mirroring similar milestones achieved by entities like HashKey and Swiss crypto bank SEBA.In a parallel development, it emerged last week that Victory Securities, a prominent investment firm in Hong Kong, has also secured regulatory approval from the Securities and Futures Commission (SFC) to offer cryptocurrency services targeting retail clients. This positions Victory Securities alongside Interactive Brokers in the competitive retail crypto space of the region.Significance acknowledged within the industryThis milestone achievement by Interactive Brokers in Hong Kong has not gone unnoticed within the virtual assets sector. Gabor Gurbacs, Head of Digital Asset Strategy at American investment management firm VanEck, took to the X platform, stating:“Hungarians know inflation and the importance of hard money. Thanks to [Interactive Brokers Founder/Chairman Thomas Peterffy] for being a silent Bitcoin advocate. You can count on Hungarians when it comes to important matters.”As Interactive Brokers expands its footprint, recent financial reports reveal impressive growth. In the third quarter, the company reported a remarkable 45% year-over-year increase in net revenue, reaching $1.145 billion. The firm is strategically focusing on European expansion, consolidating operations in Ireland to enhance efficiency and better serve its growing client base.Moreover, Interactive Brokers has extended trading hours for U.S. equities and crypto services in partnership with Zero Hash, a move geared towards providing ever more comprehensive and accessible financial services. The successful entry into Hong Kong’s retail crypto trading arena is expected to contribute significantly to the firm’s overall growth and influence in the region.Fine-tuning regulationThe regulatory environment in Hong Kong has recently undergone adjustments, with the SFC refining its crypto policies. While certain offerings have been restricted to professional investors, there is now an increased emphasis on evaluating clients’ knowledge before allowing them to engage in crypto transactions. Despite these stringent measures, the sector has faced challenges, including the JPEX scandal that shook Hong Kong’s digital asset market.In 2022, Interactive Brokers extended its crypto trading service in the United States on a 24/7 basis, having first commenced with a crypto product offering in mid-2021. With this strategic move, Interactive Brokers, as a TradFi stalwart, has demonstrated adaptability and resilience in the face of ongoing digital asset innovation and evolving market conditions.

Taiwan Proposes New Crypto Business CategoryWith regulation having trailed the crypto innovation, more recently it seems like every day brings further developments, with the latest installment seeing Taiwan take a significant step forward. Officials in Taipei are proposing the classification of crypto regulations within their own novel business category.Photo by Jack Brind on UnsplashFostering self-regulationThe move aims to potentially allow cryptocurrency-related companies to establish industry associations, ultimately fostering the creation of self-regulatory guidelines. The Ministry of Economic Affairs, in a recent announcement, unveiled its draft amendment to the Standards of Classification of Commercial Group regulations. This proposed amendment centers on the inclusion of a distinct category for digital asset services.An official from the economic ministry informed The Block that the freshly introduced business category outlines the scope of operations within the cryptocurrency sector. This encompasses various activities, such as cryptocurrency to fiat or digital token exchanges, facilitating cryptocurrency transfers, offering services for crypto storage and management, and providing assistance related to cryptocurrency issuance or sales.The official further elaborated that cryptocurrency firms will be permitted to form industry associations once the proposed business category is successfully incorporated into the relevant regulations. Seeking public input, the ministry anticipates finalizing the amendment in collaboration with the Ministry of the Interior in either mid- or late-October.Encouraging trade associationsBy allowing the establishment of industry associations, cryptocurrency companies can proactively devise self-supervisory rules that address industry-specific challenges and concerns. This move is anticipated to bolster transparency, security, and responsible conduct within the cryptocurrency ecosystem.Taiwan’s approach to virtual asset services providers (VASPs) has mandated compliance with anti-money laundering laws since the implementation of anti-money laundering regulations by the Financial Supervisory Commission in July 2021. However, the overall industry remains relatively unregulated within the country.Binance, the world’s largest cryptocurrency exchange, has recently embarked on the process of obtaining registration for anti-money laundering compliance under the FSC.Regulatory guidelines being draftedAs the regulatory landscape evolves, Taiwan’s FSC, which assumed its role as the principal regulator overseeing the crypto industry in March, is actively formulating comprehensive guidelines. These guidelines will cover trading and payment aspects associated with cryptocurrencies for VASPs.An FSC official revealed that the agency plans to unveil the VASP guidelines by the end of September. It’s understood that the guidelines will comprise thirteen regulatory principles. It’s believed that the issuance of crypto assets will be permitted but that stablecoin issuance will be prohibited. One prerequisite for the issuance of digital assets will be a requirement to accompany that issuance with a comprehensive whitepaper, detailing fundamental and necessary information that investors can review, relative to the token offering.Taiwan’s proposition of a novel business category signifies a pivotal move towards enhanced self-regulation and industry cohesion within the cryptocurrency sector. As the regulatory framework takes shape, the introduction of self-regulatory guidelines is poised to contribute to the responsible growth of the cryptocurrency industry in Taiwan.