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Analysts expect crypto market cap to triple or more next yearThe Korbit Research Center, affiliated with South Korean cryptocurrency exchange Korbit, published a report last Friday that provides projections for the crypto market in 2024.The paper includes contributions from its team, notably head of research Peter Chung, as well as research analysts Choy Yoon-young, Kang Dong-hyun and Kim Min-seung.Peter Chung predicts that the total market capitalization of cryptocurrencies could soar to $5 trillion, more than three times greater than its current level of $1.6 trillion. He attributes this potential growth to three key factors: the possibility of the U.S. Federal Reserve easing its monetary policy, the potential approval of spot bitcoin and ether exchange-traded funds (ETFs), and the anticipated Bitcoin halving event expected in April 2024.Photo by Pierre Borthiry — Peiobty on UnsplashFactors driving crypto market growth in 2024Peter Chung suggests that the growth of the crypto market will be driven by the expanding utility of virtual assets. He believes that once ETFs for bitcoin and ether are approved, these cryptocurrencies will become more versatile as investment options. This, in turn, is expected to enhance their reputation and foster wider adoption, having a significant influence on the broader crypto ecosystem beyond the two most dominant cryptocurrencies.Real-world assets and financial firmsChoy anticipates that the U.S. Securities and Exchange Commission (SEC) will approve spot bitcoin and ether ETFs by the first half of next year. On a different note, Kang focuses on the importance of blockchain technology, particularly emphasizing real-world assets (RWAs) and roll-up solutions. Kang highlights that since RWAs are closely linked with traditional financial institutions, an influx of capital from these entities is likely to boost the RWA market. This interaction between traditional finance and blockchain technology could be a key driver of growth in the sector.Regulatory changes and landscape shiftKim Min-seung, another analyst from the team, forecasts that upcoming regulatory developments could alter the dynamics of the cryptocurrency market. A notable development in this regard is the forthcoming implementation of the Virtual Asset User Protection Act in South Korea, set for July next year. According to Kim, these changes might result in a scenario where only competitive cryptocurrencies survive.Kim elaborates that the perception of virtual assets is poised for a shift. Currently, crypto investors tend to base their decisions on expectations of arbitrary cryptocurrency inflation. However, once new regulations are implemented, investors are likely to start assessing the actual value of virtual assets more critically. This shift in approach could lead to a more value-driven and stable cryptocurrency market, as speculative tendencies might decrease and a focus on intrinsic value increases.According to local news outlet website The Asia Business Daily, Peter Chung anticipates further growth in the cryptocurrency market next year, following its rebound this year. He suggests that this growth trajectory will not only continue but also attract increased attention from the public.

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.

The Thai Securities and Exchange Commission (SEC) has issued a directive mandating Zipmex, a Singapore-based digital asset trading and brokerage platform, to temporarily suspend its operations. This decision is driven by the SEC's call for significant changes in Zipmex's management structure and an improvement in its financial position. The regulator outlined that the cryptocurrency exchange can resume normal operations if it addresses these concerns.Photo by Dan Freeman on Unsplash15 days to rectify issuesIn an official announcement last Friday, the SEC conveyed that Zipmex has a specified period of 15 days to rectify its financial position and operational deficiencies, aligning with the prior orders from the financial regulator. The SEC emphasizes that once the crypto exchange fulfills the regulator's requirements, users should be able to resume fund withdrawals. The securities watchdog had initially issued an order to Zipmex on Jan. 12, instructing the exchange to adjust the maintenance of its net liquid capital and modify its business administration structure and personnel to enhance efficiency and protect customer interests. Anek Yooyuen, Deputy Secretary General of the SEC, explained the legal process involved, stating: "According to the process specified by law, if the digital asset business operator is unable to comply with the SEC’s orders within the specified period, the SEC may propose that the Minister of Finance consider revoking the order." Implementation of robust system to protect investorsIn addition to implementing the SEC's orders regarding its financial operation and operational deficiencies, the exchange is required to establish a robust system protecting investors' deposited assets against exploitation. Once these objectives have been achieved within the required timeframe, Zipmex is obligated to submit a report on these implementations for SEC approval, paving the way for the resumption of operations. The Thai regulator stated that “Zipmex will be able to resume normal business operations upon receiving permission from the SEC.” Longstanding regulatory scrutinyZipmex has been under the regulatory microscope since 2023, facing scrutiny following the company’s struggles off the back of the last crypto market downturn. The SEC's investigation includes a probe into an acquisition by V Ventures and whether Zipmex operated in Thailand without regulatory approval. V Ventures canceled its $100 million buyout of the company in 2023, which would have included the return of customer deposits. The Thoresen Thai Agencies subsidiary company deemed the entire deal terminated on the basis that Zipmex had not fulfilled its contractual obligations relative to the buyout. The platform suspended trading in November 2023, citing regulatory compliance as the reason. Despite the operational suspension, user withdrawals will remain accessible to facilitate an exit from the platform. The initial freeze of withdrawals in July 2022 due to Terra's ecosystem collapse, coupled with crypto lender bankruptcies, led Zipmex to seek court protection and legal assistance to raise capital for creditor payouts. The platform presented a reorganization plan last year, proposing creditor payouts of up to 30 cents on the dollar, subject to asset recovery. However, the initial offer was set at 3.35 cents, with the potential for a higher repayment figure based on the firm's eventual asset recovery.