Hong Kong Lawmaker Explores Digital Asset Links With Mainland

Korean Prosecutors Say Do Kwon and His Colleagues Knew Terra Was Unviable from the BeginningKorean prosecutors claimed that Terraform Labs founder Do Kwon and the key members behind the Terra-LUNA crash were aware of the project’s unviability from the beginning, according to a file issued by the Seoul Southern District Court.©Terraform LabsTerraform Labs founders misleading Korean investorsTerraform Labs founders Do Kwon and Daniel Shin attracted 280,000 investors in Korea alone, claiming that the Terra stablecoin is a means of transaction, even though the company leaders had been notified by the financial authority that Terra-accepting businesses were impermissible. It is reported that during a search and seizure of the company, Korean prosecutors collected evidence that its employees shared such knowledge on their internal messaging system.Terra’s cross trading on crypto exchangesKnowing their cryptocurrency’s unviability, Terra executives registered its sister token LUNA for listing on major Korean crypto exchanges in May 2019. According to the Korean prosecution, they used a bot to create a trade volume of more than 800 million won in three domestic crypto exchanges by cross trading between 2019 and early last year.Cross trading is illegal in the stock market, as it is considered as an act of price manipulation, but LUNA was traded in crypto exchanges and it hasn’t been determined whether their token is a security or not. Under current Korean law, the court has to accept it as a security to punish those behind the Terra collapse.Shin’s denial of allegationsMeanwhile, Daniel Shin denied the prosecution’s allegations and argued that they had never received such a notice from the financial regulator.

South Korea’s second-largest cryptocurrency exchange Bithumb held a ceremony on Monday at the Bithumb Customer Center in Seoul to celebrate the commencement of the exchange’s supporter group, Thumbs Up, according to an article published by local news site Digital Daily on Tuesday (KST). The group consists of 20 university students interested in crypto and crypto exchanges who were recruited after a two-week application period starting on Dec. 13.Photo by charlesdeluvio on UnsplashPushing towards advancements in crypto"The open-mindedness and unconventional outlook of Bithumb's college student supporters will have a positive impact on Bithumb and the blockchain industry," said Kim Young-jin, Head of Business Support at Bithumb. "We look forward to the Thumbs Up supporters and Bithumb working together to create great projects." Cultivating young innovative mindsThe supporters will have a total of three months until the deadline on April 29 to propose ideas for improving Bithumb and create social media content related to the exchange's services and companies. Bithumb stated that it would award prizes of KRW 5 million and KRW 2 million to one team and five individuals, respectively, based on their dedication and performance. The winners will also get the opportunity to become interns or official Bithumb ambassadors.

Bybit Suspends UK Services Due to New Marketing RegulationsDubai-based crypto exchange Bybit has taken the proactive decision to suspend services in the UK market ahead of the impending implementation of new cryptocurrency marketing regulations by the Financial Conduct Authority (FCA).Photo by Nick Fewings on UnsplashNew marketing rulesThe FCA is set to enforce these rules starting next month, marking a significant shift in the regulatory landscape for crypto businesses operating in the United Kingdom. In an official announcement published on its website on Friday, Bybit stated: “In light of the UK Financial Conduct Authority’s introduction of new rules regarding marketing and communications by crypto businesses as outlined in the June 2023 Policy Statement (PS23/6) entitled ‘Financial Promotion Rules for Crypto assets,’ Bybit has made a choice to embrace the regulation proactively and pause our services in this market.”Efforts to remainLast week, there had been speculation that the crypto exchange platform would be exiting the UK market. However, Bybit responded on September 14, stating that it intended to maintain its presence in the UK over the long term.Clearly these new rules are proving to be an insurmountable challenge for the exchange platform, given its more recent decision to pause its services. The new rules aim to introduce a cooling-off period for first-time investors, with the ultimate goal of enhancing the transparency and accuracy of crypto product marketing.Their implementation has drawn criticism from within the industry. On Thursday, Nic Carter, Co-Founder of blockchain data aggregator Coinmetrics.io and Partner at Web3-focused venture capital firm Castle Island Ventures, shared his thoughts on the new regulations via X (formerly Twitter): “I have a hard time taking the UK seriously as a domicile for crypto companies based on their completely ludicrous advertising law — clown country.”Withdrawal timelineBybit has outlined a timeline for its withdrawal from the UK market. Starting from October 1, the exchange will no longer accept new user account applications from UK residents.Subsequently, on October 8, coinciding with the enforcement of the new regulations, existing UK users will no longer be able to “make any new deposits, create new contracts, or increase any of their existing positions for all products and services.” However, users will retain the ability to reduce or close their positions and withdraw their funds from the platform.Bybit has set a final deadline of January 8, 2024, for UK customers to manage and wind down their remaining positions. Any positions left open after this date will be automatically liquidated, with the resulting funds made available for withdrawal.While the duration of Bybit’s suspension in the UK remains uncertain, the exchange has expressed its commitment to aligning with UK regulatory requirements in the future. Bybit stated: “The suspension will allow the company to focus its efforts and resources on being able to best meet the regulations outlined by the UK authorities in the future.”Bybit is not the only crypto exchange affected by the UK’s regulatory changes. Other major platforms, including OKX and Binance, are reassessing their strategies in response to the FCA’s stringent guidelines. The new rules have broad implications, with even having a website accessible to UK customers potentially being considered a promotional activity.