Korean Crypto Exchange Coinone Protects Investors from Fraud Losses of $370K in H1

While Russia had previously ruled out adding Bitcoin to its national reserves, the latest soundings from officials within the world’s largest country call for the creation of a crypto fund to hold and manage confiscated cryptocurrencies. According to a report published by Russian state-owned news agency TASS, Evgeny Masharov, a member of the Civic Chamber of the Russian Federation, has put forward a proposal for the formation of a special fund that would hold and manage cryptocurrencies that had been confiscated as the proceeds of crime by the Russian authorities.Photo by Artem Beliaikin on UnsplashMasharov told TASS: "Cryptocurrency confiscated in criminal proceedings should work for the benefit of the state. For these purposes, a special fund can be created, on the balance sheet of which these cryptocurrencies would be located, the capitalization of which will significantly increase over time.” In the future, Masharov proposes that the funds could eventually be used for educational, social and environmental projects. Enabling asset confiscationMasharov supported moves to define digital assets as property within the realm of criminal procedure legislation previously. Since 2021, legislation has been proposed to lay out a properly defined framework to enable the confiscation of such assets in criminal cases. As of last month, Russia’s Supreme Court is currently working towards establishing this. The Civic Chamber official expressed his willingness to discuss his proposal with other stakeholders such as crypto industry representatives and officials from Russia’s Federal Taxation Service. If this proposal was to be implemented, it would match a position taken in the U.S. with regard to a Bitcoin reserve. Earlier this month, U.S. President Donald Trump signed an executive order creating a strategic Bitcoin reserve which will be funded mainly by confiscated Bitcoin. Central bank resistanceRussia’s central bank has been largely opposed to the use of cryptocurrencies within Russia in recent years. Last December, central bank governor Elvira Nabiullina stated that the bank had no plans to invest in cryptocurrencies. Earlier that month, Anton Tkachev, a member of Russia’s State Duma, had put forward a proposal to establish a national Bitcoin reserve. With the onset of sanctions as a consequence of the conflict in Ukraine, the Russian government has softened its position with regard to cryptocurrencies. Digital assets such as Bitcoin are now seen as a mechanism to enable cross-border trade and cross-border payments, circumventing the international banking system. It was reported last year that Russia’s central bank had changed course and with that, it was leading efforts to assist Russian companies to use cryptocurrency for international trade, bypassing Western sanctions. Earlier this month, Reuters reported that Russian oil firms are now using leading cryptocurrencies such as Bitcoin, Ethereum and Tether in oil trade deals with their counterparts in China and India. In another development earlier this month, it emerged that the central bank is now allowing a limited level of crypto investment by investors. Faced with sanctions and current geopolitical realities, it’s understood that Russia had been considering the use of Bitcoin for reserve purposes, but for the time being, it has opted to concentrate on adding gold and the Chinese yuan to its sovereign wealth fund. 

With Kazakhstan having recently indicated that it would create a national crypto reserve, the administrators of Kazakhstan’s existing sovereign fund now want to invest in crypto assets as well. According to a report published by Kursiv, a business media outlet covering Central Asia, the Kazakhstani authorities are planning to invest a portion of the country’s existing gold and foreign exchange reserves in crypto assets. The publication outlined that this was conveyed by Timur Suleimenov, governor of the National Bank of Kazakhstan, in a recent press conference. Photo by ANSAR ARCHITECTS on UnsplashFollowing an international investment trendHe stated that the country has a portfolio of alternative investments, which includes gold and foreign exchange reserves. Within that particular portfolio, more aggressive investment strategies are pursued in an effort to generate higher investment returns. He added: “We looked at the experience of the Norwegian fund, the American experience, and the experience of Middle East funds. They have certain investments in either crypto assets directly, or in ETFs and shares of companies that are closely related to crypto assets. They are very small.” In 2024, it emerged that Norway’s sovereign wealth fund had indirect exposure to 2,446 Bitcoin. By January of this year, the sovereign fund had increased its indirect exposure further through an investment in pioneering American Bitcoin treasury firm Strategy (formerly MicroStrategy). In the Middle East, the Abu Dhabi Investment Authority (ADIA), which manages the Abu Dhabi sovereign wealth fund, has been exposing the fund to Bitcoin indirectly through investments in BlackRock’s spot Bitcoin exchange-traded fund (ETF), IBIT. Considering asset volatilityWhile moving towards a crypto investment within the alternative investments portfolio, Suleimenov struck a cautious note, stating: “This is not an easy question, so there is no need to rush here. Yes, such assets can bring high returns, but at the same time they are characterized by high volatility.” This latest development in Kazakhstan coincides with the release of a report by German multinational investment bank, Deutsche Bank. The research report has found that Bitcoin has reached a new all-time-high unit price amid a dramatic drop in the volatility of the leading digital asset when compared with times past.  The bank explained that this was a sign of a maturing market, while suggesting that Bitcoin’s volatility is likely to decline further as adoption grows. Reduced volatility is making crypto assets like Bitcoin more appealing to long-term capital allocators like sovereign wealth funds and pension funds. In an interview with Bloomberg back in May, Mike Novogratz, founder and CEO of American digital assets firm Galaxy Digital, said that he has had conversations with heads of large sovereign wealth funds that have said “if America is buying Bitcoin, we’re buying Bitcoin.”In March, U.S. President Donald Trump issued an executive order setting out the establishment of a strategic Bitcoin reserve in the United States. In moving to establish a crypto reserve in Kazakhstan recently, Suleimenov suggested that international practice demonstrates that such a reserve may include confiscated crypto-assets, with Kazakhstan planning to proceed with the formation of the reserve on that basis.

North Gyeongsang Province Recruits Youth for Metaverse Content CompetitionNorth Gyeongsang Province has announced that it is recruiting participants for the Youth Metaverse Content Development Competition, which will provide young people with an opportunity to showcase their ideas and technical skills in the metaverse.Photo by GuerrillaBuzz on UnsplashThe competition is part of the Youth Metaverse Creation Festival, which aims to push young individuals to participate directly in policymaking, prepare for their crucial role in the oncoming metaverse era, and strengthen their digital capabilities.Participation requirementsParticipants are required to complete an assignment in the form of their choice related to fields that the youth are interested in. Young people from high schoolers up to those aged 34 are eligible to participate. Both Korean nationals and foreigners are invited to sign up either individually or as a team.Eight teams will be selected in the first round of document evaluation this month. Afterward, a second round of presentations will take place in October to choose the three final participating teams.Winning rewardsThe first round of selected teams will receive 3 million KRW (approximately $2,300) for their assignment and a head-mounted display, among other benefits. The finalists will not only be awarded 6 million KRW but also be given the chance to participate in various startup support programs throughout North Gyeongsang Province through expert consultations.