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The Hong Kong Virtual Asset Consortium (HKVAC), a digital asset group in China's special administrative region, has announced modifications to its core cryptocurrency index, reshuffling the top contenders to the detriment of XRP, the payment solution token developed by Ripple Labs.Photo by Kanchanara on UnsplashSolana takes top 5 slotEffective as of this Friday, HKVAC will replace XRP with Solana (SOL) in its Top 5 Large Cryptocurrency Index, signaling a shift in the composition of its benchmark index. HKVAC is a collaborative effort between Hong Kong-based industry participants such as crypto exchanges and licensed ratings agencies. Its aim is to optimize the risk management capabilities of the crypto sector and in that way, assisting market participants including local regulatory bodies. Crypto exchange platform HTX, previously known as Huobi, became the first member of HKVAC in 2023. It was joined by iPollo, KuCoin, LK Venture, Nano Labs, Purise, Wealthking Investment, G-Rocket Global Accelerator, Hong Kong Data Infinity Technology and others in making up the organization’s membership. The HKVAC's Top 5 index reflects the global cryptocurrency ranking based on market capitalization, maintaining a pulse on the ever-evolving crypto landscape. However, beyond market cap, the digital asset group considers additional factors such as market valuation, investability and liquidity in its index rebalancing decisions. Solana’s growth and progressionSolana, currently ranked as the fifth-largest cryptocurrency, has been making substantial strides in the market. Despite the 2022 collapse of the FTX crypto exchange, which significantly impacted SOL's price, the cryptocurrency has made an impressive recovery. Over the past year Solana has surged by 315%. Presently, SOL boasts a market cap of $41 billion, securing its position in the top echelons of the cryptocurrency market. In contrast, XRP, the ousted cryptocurrency, has experienced a more modest price growth during the same period. As of the latest data, XRP holds the sixth position in the cryptocurrency ranking, with a valuation of $31 billion. The decision to remove XRP from the Top 5 index was met with a 3.9% decline in its value, settling at $0.57. XRP had moved within the Top 5 index in October of last year. It was added to the index alongside SHIB in 2023. At the time of its formation, HKVAC emphasized that market capitalization was one of the primary criteria incorporated within the evaluation, which extends to 30 cryptocurrencies. A re-evaluation is carried out each quarter on the basis of that market cap criterion. Crypto rating reshuffleThe HKVAC's reshuffling extends beyond the Top 5 index, impacting other leading cryptocurrencies. Notable changes include the removal of Filecoin (FIL), Binance USD (BUSD), Maker (MKR), Hedera (HBAR) and TrueUSD (TUSD) from the Global Large Cryptocurrency Index. These have been replaced by Near Protocol (NEAR), Internet Computer (ICP), Immutable (IMX), Optimism (OP) and Injective (INJ). Additionally, Avalanche (AVAX) is set to replace Tron (TRX) on the HKVAC Top 10 Global Large Cryptocurrency Index, effective this Friday. These adjustments come amid Hong Kong's ongoing efforts to bolster the cryptocurrency industry within the region. In December, the financial regulator in Hong Kong signaled its readiness to accept spot crypto exchange-traded funds (ETFs). This move aligns with the United States Securities and Exchange Commission's review of 11 spot bitcoin ETF applications, ultimately approved on Jan. 10.   

Nexon Korea Intensifies its Blockchain Focus with Nexon UniverseSouth Korean gaming giant Nexon Korea is moving its dedicated blockchain division to its recently renamed subsidiary, Nexon Universe. According to local news outlet Newsis, this subsidiary, initially known as Nexon Block and founded last year, will welcome approximately 80 employees from the parent company’s blockchain group. The leader at the helm of Nexon Universe will be Kang Dae-hyun, who serves as the Chief Operating Officer (COO) at Nexon Korea.Photo by Shubham Dhage on UnsplashNFT-powered MapleStory UniverseNexon Korea’s blockchain division has so far been overseeing the MapleStory Universe project, an NFT-powered ecosystem that utilizes MapleStory’s intellectual property.The objective of MapleStory Universe is to establish an environment that facilitates the seamless movement of NFTs, which represent in-game characters and items, throughout its ecosystem. Beyond this, the project is dedicated to forging connections with other NFT initiatives, aiming to become part of the broader global blockchain community.In August of last year, COO Kang participated in a blockchain conference to highlight Nexon’s ongoing transformative endeavors. The transition of offline games to online platforms marked Nexon’s first evolution, while the second ambition revolves around the expansion of its gaming ecosystem using the capabilities of Web3, Kang said.Turning in-game items into NFTsAmong these strategic moves is the development of MapleStory N, the first game within the MapleStory Universe. This desktop-based MMORPG is currently under development and incorporates blockchain technology. MapleStory N will allow gamers to earn items during gameplay, which can subsequently be transformed into NFTs. The fees collected from in-game economic interactions will be distributed as rewards to both contributors within the MapleStory Universe ecosystem and Nexon.Nexon’s blockchain collaborationsAs part of the MapleStory Universe creation, Nexon joined hands with Ethereum scaling blockchain protocol Polygon. In particular, Nexon employs a Polygon Supernet, which empowers developers to tailor a blockchain to suit their gaming requirements.Furthermore, Nexon made its entry into the realm of Japanese gaming blockchain Oasys in April, acting as a validator. Oasys, established in February of last year, aims to popularize play-to-earn (P2E) games. Notable validators include Bandai Namco Research, Sega, Ubisoft, Yield Guild Games, KDDI, and Softbank.Adding to its array of collaborations, Nexon forged a memorandum of understanding (MOU) with blockchain wallet company Haechi Labs in May, within the context of the MapleStory Universe undertaking. Nexon Korea’s strategy includes leveraging Haechi’s “face wallet,” which simplifies the process of establishing and overseeing blockchain wallets for users. This is expected to offer a seamless and user-friendly experience for newcomers to the field.

Report Cites Escalating Crypto Use by Pro-ISIS GroupsA recently published report suggests that pro-ISIS terrorist groups in central and southeast Asia and the Middle East are increasing their use of cryptocurrency.According to the report which was published on Friday by blockchain analytics firm TRM Labs, cryptocurrency has become a favored tool for terrorist organizations, with ISIS affiliates showing an increasing preference for the Tron network’s USDT stablecoin. The report highlights that terrorist groups worldwide, including those linked to ISIS, are actively utilizing cryptocurrencies for fundraising purposes, allowing them to attract supporters and bolster their operations.Photo by David McBee on PexelsOn-chain evidenceTRM Labs has been closely monitoring these activities over the past year and has uncovered a growing amount of on-chain evidence. Pro-ISIS networks in countries such as Tajikistan, Indonesia, Pakistan, and Afghanistan have been observed using crypto assets to facilitate their illicit activities, with Tether (USDT) stablecoin on the Tron network (TRX) being their preferred choice for transactions.The disturbing revelations show how recruited fighters were enticed to join ISIS’ Afghanistan affiliate (ISKP) through the use of cryptocurrency fundraising campaigns. One such campaign operated for over a year and managed an address that received approximately $2 million in USDT on Tron in 2022. TRM Labs played a role in getting the operation dismantled, leading to the arrest of Shamil Hukumatov, a senior ISIS fundraiser allegedly responsible for the scheme.Indonesia & PakistanIn Indonesia, individuals used a crypto platform to transfer over $517,000 in 2022 to addresses linked to pro-ISIS fundraising campaigns in Syria, all using USDT on Tron. This connection demonstrates the global reach and sophistication of the terrorist groups’ crypto operations.Additionally, a media unit associated with ISPP, the Pakistan affiliate of ISIS, ramped up its fundraising efforts in the latter half of 2022. The entity sought to capitalize on natural disasters, such as earthquakes in Turkey and Syria, to raise funds by publicizing various cryptocurrency addresses flagged by TRM Labs as associated with the terrorist organization.SyriaTRM Labs’ investigation ultimately points to pro-ISIS fundraising campaigns in Syria as a central hub for cryptocurrency usage by the terrorist group and its supporters. A significant portion of the donations ends up supporting ISIS families in camps like al-Hol and Roj, as well as funding local cryptocurrency exchanges that facilitate the group’s activities.For TRM Labs, the identification and tracking of these campaigns and their donors are crucial steps in mapping out and potentially disrupting pro-ISIS networks worldwide. Their efforts aim to mitigate the risks posed by the misuse of cryptocurrencies in financing terrorism and illegal activities.The rising adoption of cryptocurrencies by terrorist organizations poses significant challenges to law enforcement agencies and regulatory authorities worldwide. It’s a worrying development for legitimate users of digital assets as it may result in far more heavy-handed regulation as a direct consequence.Under these circumstances, it is crucial for the crypto community, governments, and regulatory bodies to collaborate in implementing effective safeguards against the abuse of digital currencies for nefarious purposes. Only through collective action can this threat be neutralized.