Monthly Active Users of Binance in South Korea Surpasses 230,000

Bill Winters, the American banker who heads the British financial group Standard Chartered, appeared at the Hong Kong FinTech Week conference earlier this week, where he predicted a future in which cash will give way to blockchain-based systems for everyday transactions. According to Cointelegraph, Winters’ view aligns with that of Hong Kong regulators. At the same time, he stressed the importance of continued experimentation, noting that it remains uncertain how this transformation will ultimately take shape. Winters also commended Hong Kong’s leadership in exploring the potential of digital finance. Tech-driven finance has certainly been one of the key initiatives Hong Kong has been exploring. Recently, the Hong Kong Monetary Authority (HKMA) released its e-HKD Pilot Programme Phase 2 Report, which showed public support for tokenized deposits.Photo by Shubham Dhage on UnsplashReal-world assets gain ground on the blockchainOn-chain data also underscores the rapid growth of the tokenization sector. According to RWA.xyz, the total value of real-world assets (RWAs) deployed on-chain has climbed to $35.63 billion, up 7.8% from a month ago. A study by Ripple and Boston Consulting Group (BCG) estimates that tokenized assets could be worth $19 trillion by 2033, about 530 times their current value. Among RWA assets, the BlackRock USD Institutional Digital Liquidity (BUIDL) Fund, Tether Gold (XAUT), and Paxos Gold (PAXG) currently lead the market in terms of value. Over the past 30 days, BlackRock’s BUIDL Fund slipped 0.06%, while the two tokenized gold products, XAUT and PAXG, jumped 46.65% and 14.19%, respectively. These gains mirror gold’s bullish run in October, when its price surpassed $4,000 per ounce for the first time on Oct. 7. The momentum has since eased slightly, with gold now trading at around $3,969.55 per ounce. Tokenization brings 24/7 markets and P2P flexibilityIndustry experts point to the convenience of tokenization as a key advantage. Speaking to Yahoo Finance, Will Peck, head of digital assets at WisdomTree, explained that tokenized gold allows for around-the-clock trading and direct peer-to-peer (P2P) transactions. He added that gold and Bitcoin act as complementary stores of value, both serving as deflationary assets. Ian Kane, CEO of fintech company Firepan, said tokenized gold appeals to investors as it enables them to retain ownership, leverage their holdings for loans, and generate extra yield, while preserving their principal against debasement or devaluation. These views are not new. Earlier this month, Robinhood Markets CEO Vlad Tenev described tokenization as “a freight train” that “can’t be stopped,” predicting it will eventually transform the global financial system. Similarly, in his annual letter to investors in April, BlackRock CEO Larry Fink said the tokenization of assets could fundamentally reshape the way people invest. By digitizing ownership, tokenized venture capital funds could move beyond their closed circles, giving ordinary investors a stake in early-stage innovation and greater control over their capital. Venture capital faces hurdles in tokenization pushWhile tokenization promises greater accessibility and liquidity, not all market segments are ready for it. According to TheStreet, tokenized venture capital (VC) funds could open a traditionally closed market to more investors, but the process is more complex than it appears. In an interview with TheStreet, Elena Obukhova, founder of Supermoon Ventures, said that liquidity, not technology, is the main obstacle. Unlike tokenized company shares that can be traded freely on public markets, VC funds invest in private startups whose value may take years to materialize through an exit or acquisition. Allowing such funds to trade freely could increase volatility and pressure founders, as interim valuations might distort perceptions and weaken confidence in early-stage ventures. Still, the promise of tokenized venture finance remains within reach. Firms are testing models that limit trading periods, protect investor data, and refine valuation methods to better reflect the illiquid nature of startup investments. Since liquidity events such as initial public offering (IPOs) or acquisitions typically occur only every one to two years for early-stage startups, the path forward will depend on creating systems that can maintain stable and accurate valuations in the interim. Tokenization is rapidly emerging as a transformative force in the financial world, offering greater accessibility, liquidity, and efficiency. As more assets, from gold to venture capital, make their way onto the blockchain, the potential to reshape investment and trading markets grows. While challenges remain, particularly around liquidity and valuation in sectors like venture capital, the continued advancements in tokenization demonstrate its key role in the future of finance.

3AC Liquidators Pursue $1.3 Billion from FoundersLiquidators appointed for Three Arrows Capital (3AC), the failed Singaporean cryptocurrency hedge fund, are seeking to recover $1.3 billion from the fund’s co-founders.That’s according to an unidentified source cited by Bloomberg in a report published on Tuesday. The requested amount represents losses incurred by the founders during the months leading up to the firm’s collapse, according to a source familiar with the liquidators’ claims.Photo by Giorgio Trovato on UnsplashLiability allegationsDuring a meeting with the hedge fund’s creditors on Tuesday, the liquidators discussed the allegations against Three Arrows co-founders Su Zhu and Kyle Davies. The co-founders are accused of causing the hedge fund to accumulate significant leverage between May and June 2022, despite already suffering substantial losses from ill-fated Luna tokens and other investments.The liquidators argue that the firm was insolvent at that time. Consequently, they have taken legal action against Zhu and Davies in a British Virgin Islands court to recover the losses on behalf of the fund’s creditors.Lawyers representing Zhu and Davies have not yet responded to requests for comment. However, in a Twitter post last June, Zhu mentioned that their attempts to cooperate with the liquidators were met with resistance.Crypto failure catalystThe failure of Three Arrows Capital coincided with a downturn in the digital currency market, impacting platforms that had exposure to the hedge fund, including crypto lenders BlockFi and Voyager Digital. These platforms subsequently filed for bankruptcy in the weeks following the liquidation of the hedge fund.The liquidators’ allegations against the co-founders represent an escalation of actions taken against Zhu and Davies, whom they have accused of non-cooperation during the investigation. The liquidators, who are partners at the consulting and advisory firm Teneo, were appointed by a British Virgin Islands court last year to recover funds for Three Arrows Capital’s creditors, who are collectively owed approximately $3.3 billion.Earlier this month, the liquidators urged a New York bankruptcy judge to impose a daily fine of $10,000 on Davies. They argue that this substantial fine is warranted because he has failed to respond to a subpoena requesting business records and other relevant information.While the liquidators do not currently know the whereabouts of Davies or Zhu, court documents from earlier this month referenced a New York Times article reporting that Davies had traveled to Bali after the collapse of Three Arrows Capital.Restraining orderIn May Zhu had secured a restraining order against BitMEX Co-Founder Arthur Hayes in a Singaporean court. Hayes believes that he is owed $6 million by the 3AC co-founders. Despite significant adverse publicity within the crypto space, the 3AC co-founders have proceeded to do business within the industry.They’ve established a crypto claims trading platform, OPNX, and alongside that Dubai-based business, they’ve also established a new venture capital fund, 3AC Ventures.The Dubai regulator, the Virtual Assets Regulatory Authority (VARA), has reprimanded OPNX and the business's founders for operating an unregistered digital assets business within the territory.

Japan Tops Crypto Losses to North Korean HackersHackers affiliated with the North Korean regime have been responsible for the theft of $721 million in digital assets from Japan.That’s the finding of a recent report by UK-based crypto compliance analysis firm Elliptic. Elliptic had produced the report on behalf of Japanese news media group, Nikkei. It leaves Japan at the top of the table when considering the distribution of digital asset losses suffered due to North Korean hackers on a country by country basis.Photo by FLY:D on UnsplashIncreasing lossesElliptic has the wherewithal to track and identify blockchain-based transfers. As part of its analysis, it grouped by region and by country those businesses that it identified as having cryptocurrency holdings that later were transferred to digital wallets held by the Lazarus Group, the most notorious hacker group connected with the North Korean government. It’s the first such analysis to break down crypto-related hacking losses on a country by country basis.The study included a consideration of both hacking and ransomware attacks. The loss associated with Japanese-based entities represents in excess of 30% of the global recorded loss. This latest analysis follows a recent report submitted to the United Nations which found that North Korea stole more digital assets in 2022 than any other year. That report had been submitted to the 15 members of a North Korea sanctions committee, finding that between $630 million and $1 billion worth of digital assets had been stolen.Lax securityElliptic’s analysis and subsequent report point to lax security being employed within Vietnamese and Japanese cryptocurrency marketplaces. Nikkei referred to an unnamed source who asserts that at least three Japanese cryptocurrency exchanges had been compromised by hackers between 2018 and 2021.One of those instances involved Zaif, a company that lost $51.4 million in 2018 and subsequently shut down operations. Overall, Elliptic estimates a global loss of $2.3 billion to hackers between 2017 and 2022 in digital assets, as suffered by crypto firms. It also estimates such losses suffered in the United States at $497 million, while Hong Kong-based losses have been calculated at $281 million.International responseIn April, the Office of Foreign Assets Control (OFAC) within the Department of the Treasury in the United States stated that it had sanctioned two Chinese nationals and a Hong Kong British national for allegedly having aided the North Korean government in crypto money laundering activities.On Saturday, a joint statement was issued by the Group of Seven finance ministers and central bank governors, following a meeting in Japan, outlining the “growing threat from illicit activities by state actors.” It’s widely believed that the proceeds of these hacks are contributing towards the funding of North Korea’s missile program and other such activities that threaten stability within the region.The Japan External Trade Organization (JETO) has estimated that the estimated $721 million stolen from Japan amounts to 8.8 times the value of North Korea’s exports in 2021.