Hana Securities to Accelerate Security Token Platform Development

Indian cryptocurrency investment platform Mudrex has unveiled plans to provide access to U.S. spot Bitcoin exchange-traded funds (ETFs) for investors within the world’s most populous country. Serving Indian institutional investorsThis initiative, as disclosed by CEO and co-founder Edul Patel in discussion with local media, marks a particularly significant milestone for Indian institutional investors who previously lacked direct access to spot Bitcoin ETFs, which were predominantly available to retail investors through U.S. stock investing firms. In its initial phase, Mudrex intends to list the top four BTC ETFs from prominent entities including BlackRock, Fidelity and Franklin Templeton. While eleven BTC ETF products currently exist in the United States, most commentators agree that there will be a consolidation with the majority unlikely to survive in the long run. Mudrex will ensure compliance by being registered with the Financial Intelligence Unit (FIU) of India. The company already provides clients with access to a diverse selection of over 350 cryptocurrencies and crypto baskets, coupled with the provision of actionable insights to help clients reach investment decisions effectively. Patel outlined the rationale behind the product offering, stating:“Seeing the increasing demand for Bitcoin spot ETFs and user requests on our platform in the past few months, we have decided to launch it for Indian investors.”Photo by rupixen on UnsplashPurchased under Liberalized Remittance SchemeMudrex ensures actual transactions are processed through broker partners in the U.S., while its Indian subsidiary facilitates the spot Bitcoin ETF service. This development unfolds amidst a nuanced regulatory environment in India, where regulatory bodies such as the Reserve Bank of India (RBI) and the Finance Ministry's Intelligence Unit hold varying stances on cryptocurrency. While the RBI remains cautious about crypto, the Finance Ministry's Intelligence Unit has registered numerous Indian crypto service providers and imposed rigorous taxation policies. Patel expanded on the alignment of spot Bitcoin ETFs with the Liberalized Remittance Scheme (LRS), a framework that simplifies overseas investments for Indian investors. The Reserve Bank of India (RBI) prescribes a limit of $250,000 per year for overseas investments by Indians under the LRS. In line with that, Mudrex is facilitating a minimum investment of $5,000 and a maximum of $250,000. Accessing spot Bitcoin ETFs through Mudrex under the LRS framework offers a more tax-efficient avenue compared to domestic crypto exchanges in India. Among Mudrex's clientele, comprising approximately 350 institutions, Patel reveals that around 20 have initiated the process of joining the platform for spot BTC ETF investments. With an anticipated average ticket size of $110,000, this demonstrates a growing appetite among institutional investors for exposure to Bitcoin ETFs facilitated through Mudrex's platform. This move by Mudrex is interesting when contrasted with recent comments made by RBI governor Shaktikanta Das, who suggested that the central bank wasn’t in favor of the offering of such products in India despite the decision by the U.S. authorities to permit spot Bitcoin ETFs. Hong Kong is working towards the approval of such products while hoping to get out in front of the competition by being the first to launch a similar Ethereum-based product. Meanwhile, the London Stock Exchange announced on March 11 that it intends to commence accepting applications for Bitcoin and Ether exchange-traded notes (ETN).

South Korea’s GDAC Suffers $13M hackSouth Korean cryptocurrency exchange, GDAC, has suffered a significant hacking incident that has resulted in the loss of approximately 23% of its custodial digital assets.©Pexels/PixabayThe hack occurred on Sunday when some of the exchange’s hot wallets were breached, and the stolen assets were transferred to an unidentified wallet. GDAC reported the incident on Monday and disclosed that the exchange lost over $13.1 million in Bitcoin, Ether, Wemix, and USDT, with more than $10 million in Wemix.According to blockchain analytics firm Arkham Intelligence, the hacker has since swapped the USDT for ETH, sending 461 ETH to cryptocurrency tumbler, Tornado Cash. The hacker used three separate wallets to take funds from two of the exchange’s hot wallets. Arkham has labeled the wallets as follows:GDAC Hacker 1: 0x244615D99684175d31369332039b2D84ce925EC5GDAC Hacker 2: 0x62B5eb2cb925Ce2898f9327B235b3228e7Cac1C2GDAC Hacker 3: 0x87597bDB421482190e223aCa0A4DEAd75AB0a98DGDAC deposits/withdrawals suspendedGDAC has suspended its withdrawal and deposit services and reported the incident to the Korea Internet and Security Agency and the Financial Intelligence Unit. The exchange has also requested other cryptocurrency exchanges to block incoming transactions from suspicious addresses.In a notice posted on its website, GDAC CEO Seunghwan Han apologized for the suspension of deposits/withdrawals and concern relative to the hack, adding that the firm will be working towards investor protection and safe withdrawal of funds in due course. GDAC also posted the breakdown of the digital asset quantities lost in the hack, with the hacker stealing 60.80 BTC, 350.5 ETH, 10,000 WEMIX and 220,000 USDT.Crypto hacks increasingThis hacking incident comes at a time when cryptocurrency hacks have been on the rise. According to blockchain analytics firm Chainalysis, illicit actors stole $3.8 billion worth of assets last year, the largest one-year loss in crypto’s history. In addition, other crypto platforms have also suffered notable hacks and exploits in the past 15 to 18 months. Axie Infinity’s Ronin bridge, for example, suffered a $625 million hack last year, and decentralized-finance protocol Sushi was exploited for $3.3 million on Sunday.GDAC is not the only South Korean cryptocurrency exchange to suffer a significant hacking incident. In 2018, Coinrail was hacked, resulting in the loss of approximately $40 million worth of assets, and in 2021, Upbit suffered a $50 million hack.In response to these incidents, South Korea has taken steps to tighten regulations around cryptocurrency exchanges. In March 2021, the country’s Financial Services Commission issued a revised regulation that requires cryptocurrency exchanges to maintain stricter anti-money laundering measures and report suspicious transactions.The GDAC hack is a stark reminder of the risks associated with cryptocurrency investing and the importance of implementing robust security measures. Investors and cryptocurrency exchanges should take note of this incident and ensure that they have adequate security measures in place to protect against potential hacks and exploits.

Bithumb Shuts Down Crypto Research Center Amid Trading Volume SlumpBithumb, a cryptocurrency exchange based in South Korea, is shutting down its research center less than a year after its launch, according to a report by news agency Newsis. The closure is seen as a strategic move to enhance business performance in response to the recent decline in trading volume.Photo by Kelly Sikkema on UnsplashCostly research centersEstablished on June 8 last year, the Bithumb Economic Research Institute is reportedly ceasing operations tomorrow. Research centers are often perceived as costly endeavors, particularly when the company is experiencing poor financial performance. In the traditional financial sector, small and medium-sized securities firms typically prioritize restructuring their research divisions when dealing with profitability challenges.Relevance of research hubsAn official from a Korean cryptocurrency exchange told Newsis that research centers can be a financial burden during times of low trading volumes and subpar performance. Nonetheless, the official underscored the need to furnish investors with refined information through these research hubs, encouraging exchanges to cultivate an environment conducive to informed decision-making based on high-quality data.Since its inception, Bithumb’s research organization has published 55 reports aimed at forecasting cryptocurrency market trends using comprehensive macroeconomic and crypto data analysis. These reports have contributed to drawing investors to the sector.Global restructuring trendThe wave of workforce reductions in the crypto industry isn’t isolated to South Korea; it’s a global phenomenon. Chinese reporter Colin Wu, known for his crypto news platform Wu Blockchain, shared via Twitter that Binance, the world’s largest cryptocurrency exchange, is planning to lay off roughly 20% of its staff, totaling about 8,000 employees.In response to these concerns, Binance CEO Changpeng Zhao, also known as CZ, wrote a tweet yesterday. According to CZ, employee layoffs are a weekly occurrence within the company, based on considerations such as alignment with corporate culture. As an example, he mentioned the remote work environment and how it may not be suitable for everyone. However, CZ reassured that Binance remains engaged in hiring, with a focus on enriching its talent pool.