Illicit Crypto Activities Estimated to Have Surpassed $100 Billion in S.E. Asia

Research Center Highlights Overvaluation in Overseas Crypto Holdings Reported to Korean Tax AgencyThe Korbit Research Center, affiliated with one of South Korea’s leading cryptocurrency exchanges, Korbit, has raised questions about the size of overseas cryptocurrency holdings reported by Korean individuals and businesses to the National Tax Service.Photo by REDioACTIVE on PixabayThe issue of market-making activitiesThe center noted that following the 2017 initial coin offering (ICO) boom, many enterprises that issued cryptocurrencies through offshore entities might still be holding onto their native tokens. This would have resulted from their inability to distribute these tokens to the market after the speculative bubble burst. The center believes these reported values could have been influenced by the issuers’ market-making activities, possibly inflating their worth.According to the National Tax Service, Korean individuals and corporations hold a total of KRW 130.8 trillion (around $98 billion) in overseas crypto accounts. Notably, 73% (KRW 120 trillion) of this sum is held by 73 corporate entities.Highlighting a critical aspect of cryptocurrency valuation, the Korbit Research Center pointed out that when tokens are priced based on market-making activities, they may be overvalued. They further underscored that even if the true value of overseas holdings by these entities is only a tenth of the reported sum, a figure like KRW 12 trillion is still substantial.Retail investors seeking overseas optionsFurthermore, the center touched on retail investors, noting that the KRW 10 trillion in their offshore accounts indicates a gap in services offered by Korean crypto enterprises. It suggests that individual investors might be exploring foreign markets due to domestic limitations like the absence of derivatives and lending options.Given the borderless nature of the crypto industry, Korean individuals readily turn to overseas services that cater to their needs. The Korbit Research Center estimates a KRW 10 trillion unmet demand in the domestic crypto sector, suggesting that stringent local regulations might be driving capital outflows.

Upbit Operator Doubles Down on ESG ManagementDunamu, the operator of the popular Korean crypto exchange Upbit, issued a press release on Friday stating it will donate 500 million KRW (~$385,000) to the Korean Red Cross in support of recovery efforts for the recent wildfire damage in Gangneung, a city located east of Seoul.©Pexels/Matthias ZomerESG managementThis is part of its efforts to double down on its environmental, social, and governance (ESG) management, according to Korean economic media Biz World.Wildfire recovery effortsLast year, Dunamu also donated 3 billion KRW (~$2.3 million) to Hope Bridge, a disaster relief association in Korea, to support the swift recovery from wildfires that ravaged areas near the cities of Uljin and Samcheok.Metaverse and NFTs for plant conservationUnder the slogan “climate change action,” Dunamu is engaging in various projects. Last month, the exchange operator launched the 2nd foRest campaign in collaboration with the Korea Forest Service and the Korea Forest Welfare Institute.The purpose of this campaign was to encourage citizens to participate in recovering wildfire-affected areas. Every tree planted in Dunamu’s metaverse platform 2nd Block led to the actual planting of two trees in the ravaged areas. More than 30,000 trees were planted through the project, and moreover, 10,000 of the participants were rewarded with coupons that can be exchanged for saplings.Dunamu has also made endangered plant conservation efforts with the Korea Arboreta and Gardens Institute. Upbit NFT Marketplace showcased ten endangered plants in NFT editions.Veronica Star Light, one of the editions revealed during the first airdrop, sold out within a day, reflecting its popularity. Dunamu will use the fees collected from these transactions to establish a fund for endangered plant conservation.Protecting plant diversityDunamu Chairman Song Chi-hyung said the company has been studying various means to utilize its technology and resources to contribute to society, and that it will continue to make multifaceted efforts to protect plant diversity.

Miracle Play and HAVAH team up to expand Web3 ecosystemWeb3 e-sports tournament platform Miracle Play has signed a business agreement with the interchain platform HAVAH to exchange technologies and build a joint ecosystem, according to an official announcement on Miracle Play’s Medium page on Monday (KST).“With our interchain technology, we expect to play a pivotal role in the expansion and organic interoperability of the Web3 e-sports ecosystem, and we will actively cooperate with Miracle Play in building a leading ecosystem and infrastructure,” said Lim Young-kwang, CEO of HAVAH.Photo by Mateo on UnsplashNavigating the interchain landscape and blockchain gamingLaunched in January, HAVAH is an L1 interchain platform that allows users to freely move their digital assets across multiple blockchains. It features multiple decentralized applications (dApps) such as HAVAH Wallet and HAVAH Scan, and houses some 500,000 users.Miracle Play uses smart contract technology to ensure that anyone and everyone can hold various types of gaming tournaments in the form of PC, mobile and console games. It is currently in the open beta phase, with a cumulative participation rate of about 30,000 players. Although it is only supported on Polygon as of now, it will eventually be available on a total of nine major networks including Avalanche, XPLA, Solana and more, to facilitate cross-network gaming tournaments.Collaborative synergyThe two companies plan to collaborate on multiple fronts. Miracle Play will adopt HAVAH’s various mechanisms including the Mitter Protocol, which will allow the platform to implement one-click bridging services on the Miracle Play website and mobile app; as well as its interchain mechanism to bring multi-chain services to Miracle Play.HAVAH also aims to provide technical support for distributing and utilizing in-game rewards across networks on Miracle Play. Miracle Play tournaments will also be available via GameFi dApps in HAVAH’s ecosystem.“We will continue to work with companies in various fields to strengthen the interconnection of the blockchain ecosystem and expand the base of WEB3 Esport by making it conveniently accessible to everyone,” said Kim Hyun, CEO of Miracle Play.