Internal Dispute Sees Co-Founder Depart 5ire

Blockchain Firm NEOPLY Rebrands as Neowiz Partners to Focus on InvestmentNeowiz Holdings, a South Korean investment holding company, announced today that its blockchain subsidiary NEOPLY held an extraordinary general meeting of shareholders and rebranded itself as Neowiz Partners, according to local news outlet News1. Upon this name change, the company will participate as a liquidity provider in the industry through strategic partnerships with investment firms such as venture capital firms and private equity funds.Photo by Precondo CA on UnsplashAbu Dhabi’s supportEarlier, it was revealed that Neowiz Partners became a part of the Innovation Programme offered by the Abu Dhabi Investment Office (ADIO) in the United Arab Emirates (UAE). This program offers incentives to various businesses operating in high-growth areas like financial services and technology.Diverse portfolioUnder its new name, Neowiz Partners aims to build a diverse portfolio of investments in promising companies committed to emerging technologies such as artificial intelligence (AI) and robotics. This strategic move is intended to foster future growth and seize the potential offered by these innovative sectors.Neowiz Partners’ global headquarters, known as H-Lab, located in the Abu Dhabi Global Market (ADGM), will oversee investment and management related to its blockchain businesses. Meanwhile, the operations of these blockchain projects will continue to be managed by NEOPIN, a subsidiary of H-Lab and a CeDeFi protocol that operates as a one-stop solution for those seeking a non-custodial wallet.Earlier reports highlighted NEOPIN’s achievement in launching Korea’s first liquid staking products for ETH. This approach enables users to deposit their cryptocurrencies into a staking pool and receive liquidity provider tokens in return. These tokens can then be deposited again to generate additional yields.On the occasion of this renaming, Neowiz Partners will establish itself as a dedicated investment company, while H-Lab will concentrate on serving the blockchain industry and associated ventures.

Chinese Official Gets Life Sentence on Crypto Mining-Related Corruption ChargesA former Chinese government official, Xiao Yi, has been handed a life sentence for engaging in illicit business activities connected to a $329 million Bitcoin mining venture, together with other unrelated acts of corruption, according to Cointelegraph.The Intermediate People’s Court of Hangzhou City declared the verdict on Tuesday, finding Xiao Yi guilty of corruption and abuse of power.Yi, previously associated with the Jiangxi Provincial Political Consultative Conference Party Group and holding the position of Vice Chairman, faced charges stemming from a range of offenses. The corruption allegations dated back to 2008 and extended till 2021, involving instances of bribery.Photo by Tingey Injury Law Firm on UnsplashAdditional abuse of power chargesSimultaneously, the abuse of power accusations spanned from 2017 to 2021 and centered around providing financial and electricity incentives to Jiumu Group Genesis Technology, a company headquartered in Fuzhou that once managed over 160,000 Bitcoin mining machines.Prosecutors contended that Yi took deliberate steps to conceal the extent of the mining operation. He was said to have directed relevant departments to falsify statistical reports and manipulate electricity consumption classifications. During the period between 2017 and 2020, the energy consumption attributed to Jiumu amounted to 10% of Fuzhou’s overall electricity usage.Moreover, Xiao Yi’s involvement in facilitating crypto mining activities as a Party Secretary of Fuzhou city between 2017 and 2021 led to significant losses to public property, national interests, and people’s interests. This underscores the broader consequences associated with his actions and their impact on the community.The court ruling disclosed: “Yi pleaded guilty and repented, actively returned the stolen funds, and all the bribes and their profits have been seized.”Crypto mining and trading prohibitionIn the context of China’s current cryptocurrency regulatory stance, all forms of cryptocurrency transactions, exchange operations, and fiat-to-crypto onboarding, together with crypto mining, are prohibited. However, direct ownership of cryptocurrencies is not explicitly banned. In a recent development on August 3, a Chinese court declared a $10 million Bitcoin lending contract null and void based on the nation’s Bitcoin restrictions, without the possibility of legal debt recovery.Another incident on August 14 led to the sentencing of a Chinese national to nine months in prison for facilitating the acquisition of Tether (USDT) by an acquaintance, earning a profit from the transaction.Xiao Yi’s case reflects the Chinese government’s ongoing efforts to enforce its stringent stance on cryptocurrency-related activities, including Bitcoin mining, which has garnered increasing attention due to its energy consumption and potential economic implications.Bitcoin mining was outlawed in China in 2021. Many of its miners left the country, establishing operations in places like Kazakhstan and in North America. However, it’s understood that there is still a significant level of mining activity ongoing in China despite the ban.The life sentence serves as a stark warning against illegal Bitcoin mining and financial misconduct, aligning with the Chinese government’s intention to maintain control over its financial sector and prevent unauthorized financial activities. The detailed revelations about Yi’s role in facilitating crypto mining activities highlight the broader implications of his actions on the public and national interests.

South Korea’s Financial Services Commission (FSC) is set to exclude stablecoins from the list of digital assets corporations will be permitted to trade under forthcoming corporate crypto trading guidelines, according to a report by Herald Business.Photo by DrawKit Illustrations on UnsplashThe guidelines will outline the conditions under which listed companies and registered professional investment firms can buy and sell digital assets for investment or treasury management purposes. As regulators move to prevent speculative or indiscriminate investment in the early stages of opening the market to corporations, they have opted to limit the scope of permitted assets. Consequently, U.S. dollar-pegged stablecoins such as USDT and USDC are expected to be excluded from the approved list. Authorities plan to release the trading guidelines after the Digital Asset Basic Act is finalized. This move partly reflects regulatory constraints: stablecoins are not currently classified as cross-border payment instruments under South Korea’s Foreign Exchange Transactions Act. The law requires payments and receipts involving such instruments to be processed through authorized foreign exchange banks, leaving stablecoins outside the regulated framework. Companies seek stablecoins for FX hedgingThis exclusion, however, does not entirely prevent companies from trading stablecoins. Firms can still access them through overseas channels, including external wallets like MetaMask or over-the-counter platforms operated by exchanges such as Coinbase. Currently, South Korean companies cannot open corporate crypto accounts domestically, making it difficult to use digital assets for formal trade settlement. Nevertheless, payments in stablecoins are sometimes still handled through individual or offshore accounts. Given these workarounds, some listed companies with large international trade exposure have petitioned regulators to allow stablecoins under the proposed corporate investment guidelines, according to people familiar with the matter. Advocates argue that stablecoins like USDC can be easily traded on exchanges and track the U.S. dollar in real time, making them a highly effective tool for managing foreign-exchange risk. As the industry awaits this regulatory clarity, the impact is already rippling into the traditional financial sector. Kbank—the banking partner of Upbit, Korea’s largest crypto exchange—recently debuted on the KOSPI benchmark index after two previously failed attempts to go public. According to Bridgenews, Korea Investment & Securities initiated coverage on March 6 with a “neutral” rating, noting that regulatory uncertainty and rising lending competition could limit the bank's near-term growth. However, the brokerage added that the lender’s valuation could improve if it successfully expands its crypto business alongside clearer regulations. Baek Doo-san, an analyst at Korea Investment & Securities, noted that Kbank’s valuation could see re-ratings if the Digital Asset Basic Act and policies promoting the stablecoin industry are implemented quickly. He said that despite potential overhang risks, faster policy progress could drive multiple expansion, adding that the bank could then be valued in line with its peers’ price-to-book ratios. Survey shows persistent market fearThese shifting regulatory sands come at a time when the broader crypto market remains under pressure. According to a weekly survey of South Korean investors conducted by CoinNess and Cratos last week, 24% of respondents expect Bitcoin to rise or surge this week, up from 10.3% in the previous survey. Another 28.1% expect the market to move sideways, compared with 25.5% a week earlier, while 47.9% predict a decline or sharp drop, down from 64.2%. Although bullish sentiment has ticked upward from the previous week, bearish expectations still dominate the overall landscape. When asked about broader market sentiment, 43.4% of respondents said they felt fearful or extremely fearful. About 35.4% described sentiment as neutral, and only 21.2% reported feeling optimistic or extremely optimistic. With safe-haven markets facing renewed uncertainty amid geopolitical tensions between the U.S. and Iran, the survey also explored how a potential correction in South Korea’s stock market might affect cryptocurrencies. The largest share of respondents, 39.7%, believed it would be negative for crypto. Meanwhile, 23.6% said it would benefit Bitcoin exclusively, 23.4% felt it would be positive for the broader crypto market, and 13.3% expected it to have no impact.