Study Places Hong Kong as Leader in Crypto Readiness

SEC Seeks to Question Co-Founder of Singapore’s Terraform LabsThe United States Securities and Exchange Commission (SEC) has taken a step forward in its ongoing case against Singapore’s Terraform Labs by seeking to question Daniel Shin, the Co-Founder of the company.The SEC's intention is to gather evidence related to Chai Corporation, a payments company associated with Terraform and the Terra blockchain. District Judge Jed Rakoff granted the SEC’s request earlier this week, which is part of the regulatory body’s efforts to build a case against Terraform Labs and its Co-Founder, Do Kwon. The decision was based upon a motion originally filed in July.Photo by Bermix Studio on UnsplashRequesting South Korean assistanceThe motion, which was granted on Tuesday, allows the SEC to reach out to South Korea for assistance in questioning Shin and obtaining documents related to Chai Corporation. The regulatory body aims to gain insights into Kwon’s role at Chai, the utilization of the Terra blockchain by Chai, and the disclosures made by Chai regarding its relationship with Terraform.Additionally, the SEC is interested in understanding the reasons behind Chai’s separation from Terraform, as the two companies shared offices and staff until their split in 2020.No opposition filedOn a previous occasion, Kwon unsuccessfully challenged the SEC's attempt to access company records on the basis of a lack of jurisdiction given that Terraform is a Singapore-domiciled company. In June, both Terraform and Kwon attempted unsuccessfully to have the entire action thrown out.On this occasion neither Terraform Labs nor Kwon have opposed the SEC’s motion. In fact, they have even included their own set of questions and document requests. Both the Singaporean firm and its Co-Founder have denied the SEC’s allegations, which were filed earlier this year.The SEC’s lawsuit claims that Terraform’s cryptocurrencies, specifically Terra Luna Classic (LUNC) and Terra ClassicUSD (USTC), were involved in fraudulent activities. The US regulatory body further alleges that Kwon and Terraform falsely promoted the use of the Terra blockchain by Chai for processing and settling transactions.The SEC’s lawsuit also accuses Terraform and Kwon of fabricating transactions involving TerraKRW (KRT), a Korean won-pegged stablecoin, to give the impression that Chai was actively utilizing the Terra blockchain.Collapse falloutTerra, an interconnected crypto ecosystem, faced a collapse in May 2022, resulting in the loss of approximately $40 billion in value and impacting the wider cryptocurrency market. The aftermath of this collapse led to legal actions against individuals associated with Terraform Labs. South Korean prosecutors, for instance, charged Shin with multiple fraud offenses in April, alleging that he had concealed the risks of investing in Terraform’s cryptocurrencies.Kwon’s legal situation is equally complex. He is currently serving a prison sentence in Montenegro for attempting to leave the country using a fake passport. He faces criminal charges in both the United States and South Korea, and both countries have requested his extradition.The ongoing investigation sheds light on the intricate relationships within the Terra ecosystem, having an impact across different jurisdictions. As legal proceedings unfold, the outcome will likely have implications for the regulation and oversight of cryptocurrency and blockchain projects internationally.

Crypto infrastructure, mining and investment firm Phoenix Group, a company based in the United Arab Emirates (UAE) and publicly listed on the Abu Dhabi Securities Exchange (ADX), has established a $150 million crypto treasury.Photo by Jievani Weerasinghe on UnsplashFirst ADX-listed firm to establish crypto treasuryThe development emerged as the company released its results for Q2 2025. Phoenix Group explained in a press release that its activities in Q2 led to it becoming the first ADX-listed company to establish a strategic crypto treasury with Bitcoin (BTC) and Solana (SOL) holdings valued at $150 million. Phoenix asserted that unlike its competitors which are burdened by debt, it has a healthy balance sheet, with debt of just $16 million. This has enabled it to pursue the establishment of a strategic crypto reserve. The company is also expanding into AI-related activities, with plans to repurpose part of its U.S. infrastructure. That adjustment will allow the firm to establish a multi-use compute facility, enabling it to build out its AI vertical. Phoenix Group Co-Founder and CEO Munaf Ali said that Phoenix is working towards building out one gigawatt of hybrid infrastructure by 2027. Ali also commented on the pursuit of a crypto treasury, stating:“Holding Bitcoin and other strategic digital assets isn’t just about exposure. It’s about alignment. We believe in the long-term value these networks represent, and our treasury strategy reflects that belief.”DWF Ventures, the ventures arm of crypto market maker DWF Labs that relocated its headquarters from Singapore to Abu Dhabi earlier this year, released a report in June revealing that publicly-listed companies that have adopted a crypto treasury strategy have amassed holdings of $76 billion in crypto. Phoenix Group has disclosed that to date, it has accumulated 514 Bitcoin and over 630,000 Solana with a view towards holding these digital assets in the long term. Earlier this year, American digital asset investment firm Sarson Funds outlined that the UAE is playing a significant role in advancing Bitcoin adoption at a corporate level in the context of the ongoing trend towards the pursuit of a Bitcoin corporate treasury strategy. Miners accumulatingPhoenix Group isn’t the only company involved in crypto mining to establish a crypto corporate treasury recently. In June, American miner BitMine Immersion Technologies disclosed that it was raising $18 million through a public share offering to buy Bitcoin. Since then, it has been accumulating Ether (ETH). As of July 24, the firm held over 300,000 ETH, with plans to raise $4.5 billion to fuel further ETH purchases. MARA Holdings, a publicly-listed American Bitcoin miner, has also confirmed that its treasury now extends beyond Bitcoin that it mined itself. Phoenix Group confirmed that it mined 336 BTC in Q2, with 689 BTC mined over the course of H1 2025. Founded in 2017, the firm debuted on the ADX in December 2023 with its stock immediately surging by 50% from its initial public offering (IPO) launch price. The firm’s share price has also performed well in 2025, surging 72% from April to June.

Japanese financial conglomerate SBI Holdings has announced plans to issue security token (ST) bonds targeted at individual investors, marking the firm’s first foray into this bond format. The instruments will be issued and managed on the “ibet for Fin” blockchain platform led by BOOSTRY, bypassing the conventional management system operated by the Japan Securities Depository Center (JASDEC). Trading is scheduled to commence on March 25 via the proprietary trading system (PTS) operated by the Osaka Digital Exchange. As an incentive, Japanese investors—both individuals and corporations—who acquire the ST bonds will receive XRP tokens corresponding to their subscription amounts. These benefits will be offered to Japanese bondholders whose subscriptions are confirmed by SBI Holdings and who hold an account with SBI VC Trade, where they must complete the necessary procedures by noon on May 11.Photo by Kanchanara on UnsplashBitcoin lendingIn a parallel move within the Japanese digital asset sector, Remixpoint, a publicly listed energy management firm, has begun lending its 1,411 Bitcoin holdings through SBI Digital Finance. Positioning Bitcoin as a strategic asset to bolster its financial base, Remixpoint aims to generate yield from the cryptocurrency rather than relying solely on capital appreciation. The lending program is set to launch on Feb. 24, with interest rates determined by market conditions and loan terms. Despite these corporate initiatives to expand into digital assets, the broader market continues to face significant headwinds. Asian investors remain wary amid the current downturn, and expectations for a near-term recovery remain subdued. Bearish mood dominatesA weekly survey of South Korean investors conducted by CoinNess and Cratos last week showed that bearish sentiment remained entrenched. Only 15.5% of respondents said they expected Bitcoin to rally this week—down from 18.3% in the prior survey—while 52.8% anticipated a decline or steep drop. The share forecasting sideways consolidation rose to 31.7%. Sentiment indicators further reflect this caution, with 57.4% of respondents describing the market mood as “fearful” or “extremely fearful,” compared with just 14.2% expressing optimism. Regarding potential support levels, the largest group of respondents (33.6%) projects that Bitcoin could retest the $50,000 range, while 21.2% anticipate a drop below that threshold. According to CoinMarketCap, XRP is trading at $1.33, down 6.47% over the past 24 hours. Since July, the token has declined 62.54% from $3.55. Bitcoin is trading near $65,070.83, down 4.29% over the same period. It remains 48.21% below its all-time high of $126,198.07, recorded in October.