Korea’s Intragovernment Group Launched to Thwart Crypto-Related Crimes

A United Nations (UN) report published on Monday pointed fingers at USDT for its alleged role in money laundering and scams in Southeast Asia, prompting the stablecoin’s issuer, Tether, to respond.Photo by DrawKit Illustrations on UnsplashFighting backThe stablecoin issuer finds itself under the spotlight once again, facing intense scrutiny over its association with illicit activities, according to the UN report. Responding by way of a blog post, Tether expressed disappointment and pushed back against the accusations. The firm asserted that the report disproportionately focuses on USDT's alleged connection to illicit activities, neglecting to acknowledge the positive impact it has had on developing economies in emerging markets. Collaborating with law enforcementTether defended its position by highlighting its collaborative efforts with global law enforcement agencies, such as the Department of Justice (DOJ), the Federal Bureau of Investigation (FBI) and the recently onboarded United States Secret Service (USSS). The company expressed disappointment with the UN's assessment and stressed that its monitoring measures surpass those of traditional banking systems, historically implicated in money laundering cases. Having frozen over $300 million in recent months to combat the criminal use of crypto assets, Tether emphasized the traceability of its tokens and its established track record of collaboration with law enforcement. In its blog post, Tether urged the UN to shift the conversation from concentrating solely on risks to discussing how centralized stablecoins like USDT could contribute to the fight against financial crimes. The UN Office for Drugs and Crime (UNODC) division responsible for Southeast Asia and the Pacific released the report, specifically highlighting USDT as a significant instrument for money laundering in the region, notably on the Tron blockchain. Tether's response came soon after the release of the UNODC report, where the company emphasized the need for a broader discussion with the UN on addressing financial crimes within blockchain platforms. Tether acknowledged that there are still numerous opportunities to combat financial crimes on blockchain platforms and encouraged the UN to engage with the industry to comprehend and implement contemporary strategies. The company expressed a willingness to collaborate on initiatives aimed at enhancing the understanding of blockchain technology and its potential in fighting financial crime. A perennial controversyTether has been the subject of a perennial controversy inside and outside the crypto space over the years. Its critics have long accused the company of not having the asset backing to reflect the U.S. dollar stablecoins it issues. The issue has been compounded by Tether’s inability to produce fully fledged audits as opposed to attestation reports to verify its holdings. Speaking on the edges of the World Economic Forum’s annual meeting in Davos, Switzerland, on Tuesday, Howard Lutnick, CEO of leading global financial services firm Cantor Fitzgerald spoke positively about Tether. He said that his firm has held and managed large quantities of Tether’s assets. Lutnick confirmed that “they have the money they say they have.” Off the back of Lutnick’s comments, Nic Carter, partner at venture capital and private equity firm Castle Island Ventures, outlined that Tether’s critics have been proven wrong. Carter wrote: “Tether truthers spent 6 years trying to convince everyone tether would collapse and drag down the industry. it didn't. . . . Not sure anyone has ever been more wrong about anything.”

Tiger Brokers (Hong Kong) is gearing up to bring its virtual asset trading platform to professional investors in Hong Kong, with plans to extend the service to retail-level investors in the short to medium term. Unified solution for equities and digital assetsTiger Brokers is an online broker, headquartered in Beijing, with an office and operations in Hong Kong. Additionally, the company has been listed (TIGR) on the Nasdaq stock exchange in the United States since 2019. With this latest plan which it outlined in an announcement shared with Cointelegraph, the company will offer professional investors a single solution for the trading and portfolio management of both securities and digital assets.  In merging traditional securities and crypto assets, the firm has partnered with Hong Kong’s HashKey Exchange, allowing access to 18 digital assets. That offering will include Bitcoin and Ethereum. Alongside these digital assets, the company will offer investors traditional financial products such as equities, options, futures and U.S. Treasury bonds. Integrating traditional and digital assets within the one platform eliminates certain complexities that come with managing multiple accounts across distinct brokers and platforms. As a consequence, investors are being extended greater convenience and flexibility in terms of global asset allocation.Photo by Ansel Lee on PexelsExtending service to retailInvestors with a preference for exposure to the recently approved spot Bitcoin exchange-traded fund (ETF) products will be enabled to purchase those ETFs through the platform.  Tiger will become the first technology-led brokerage in Hong Kong to offer an all-encompassing service supporting both traditional securities and virtual assets. The firm has incorporated competitive rates and a 24/7 trading ability into the offering in an effort to gain traction. Additionally, it has waived digital asset custody fees.  Through the Tiger Trade platform, professional investors will be given access to this array of investment options. Initially, availability of the facility will be confined to professional investors in Hong Kong. Hong Kong residents with an investment portfolio valued above 8 million Hong Kong dollars ($1 million) and corporate entities with assets in excess of 40 million Hong Kong dollars ($5 million) qualify within the definition of accredited investors. Once it gains the relevant regulatory approval, Tiger Brokers intends to extend the service to retail investors. The company also outlined that it is considering adding cryptocurrency spot withdrawals and deposits as features within the new service offering. Zeng Qingfei, Chief Financial Officer of Tiger International, expressed the company's pride in leading the charge in virtual asset trading services. He emphasized Tiger Brokers' commitment to meeting the evolving needs of investors by expanding its product portfolio to include diversified investment opportunities. Through this strategic expansion, the company is aiming to equip investors with the tools they need to navigate dynamic market conditions effectively. The company hasn’t confined its efforts to achieve further growth to Hong Kong. In recent days, it has also enabled 24-hour trading of U.S. stocks and exchange-traded funds (ETFs) in New Zealand. Through extended trading hours, Kiwi investors will have greater opportunity than ever to participate in the market. 

Binance Initiates Registration Process for AML Compliance in TaiwanGlobal crypto exchange Binance has set in motion the process of registering under Taiwan’s Money Laundering Control Act, the sole crypto-related regulatory framework currently established in Taiwan.In a confidential gathering on Tuesday, Taiwan’s Financial Supervisory Commission (FSC) conveyed to numerous domestic crypto service providers that Binance is in the process of applying for registration to ensure compliance with anti-money laundering (AML) regulations, according to a local media report.Photo by Thomas Tucker on UnsplashImportance of AML complianceTaiwan has mandated that virtual asset service providers (VASPs) adhere to its anti-money laundering statutes since the FSC introduced AML rules in July 2021. Outside of these measures, the cryptocurrency industry in the country remains largely unregulated.Speaking to The Block on Friday, an FSC official refrained from confirming whether Binance had already submitted the necessary documentation to register with the regulatory body. However, the official did emphasize the importance of offshore crypto platforms operating in Taiwan abiding by the local AML regulations.While Binance is not yet regulated in Taiwan, it has established a local entity named “Binance International Limited Taiwan Branch (Seychelles),” as per records from the Department of Commerce’s database. The registration particulars indicate that the Taiwanese government endorsed Binance’s company registration on May 12, 2023, with a registered capital of NT$30 million ($944,000) within Taiwan.Cooperation with law enforcementBinance has taken steps to cooperate with local law enforcement agencies to combat cybercrime in Taiwan. In June, the exchange revealed its collaboration with Taiwan’s Criminal Investigation Bureau, leveraging its expertise to assist over 200 Taiwanese law enforcement officers in addressing digital asset-related criminal activities.Damien Ho, Head of Global Partnerships at Binance, remarked in a blog post at the time:“As an increasing number of individuals in Taiwan show interest in cryptocurrency, ensuring a secure and comfortable crypto ecosystem for users becomes crucial.”Growing Asian influenceBinance’s influence is growing across Asia. This month, it officially launched operations in Japan after its acquisition of the local exchange Sakura Exchange BitCoin in November 2022, paving the way for regulatory oversight by the Japan Financial Services Agency (JFSA). Earlier this month, an investigative report carried out by the Wall Street Journal revealed that Binance is thriving in China in spite of the fact that crypto trading is a banned activity there.Regulatory guidelines anticipatedTaiwan’s FSC, which assumed the role of the primary regulator overseeing the crypto industry in March, is currently formulating comprehensive guidelines for trading and payments involving cryptocurrencies for VASPs.The FSC has disclosed plans to release the VASP guidelines by the end of September. Kevin Cheng, a Director at the Taiwan Fintech Association, revealed that the FSC intends to implement a stringent regulatory approach for crypto platforms in Taiwan, similar to its oversight of traditional financial institutions.Cheng noted: “The FSC plans to require VASPs to keep their own crypto assets separate from the clients’ crypto assets and to have accounting firms audit such assets every year.” However, Cheng highlighted the potential difficulty of this requirement, as many accounting firms might hesitate to serve crypto clients due to the specialized nature of crypto-related information.