Busan Hosts Blockchain Conference with Aim to Become Digital Financial Hub

Authorities in China have disclosed that Yao Qian, a prominent figure in the country's blockchain industry and former head of China's central bank digital currency institute, is under investigation by the nation's anti-graft watchdog. The announcement was made on Friday, revealing that Yao is "suspected of serious violations of discipline and law." However, specific details regarding the nature of the investigation were not provided.Photo by Max van den Oetelaar on UnsplashCareer and recent roleYao Qian currently holds the position of head of the technology regulation department at the China Securities Regulatory Commission. Earlier in the month, he authored an opinion piece titled “Warnings Mount Over Novel Bitcoin ETFs That Have Taken the U.S. by Storm” on Caixin, a prominent Chinese financial news platform. Born in 1970, Yao initially served as the inaugural head of China's central bank digital currency research institute in 2017 before transitioning to the securities regulator in 2018. Contributions to blockchain discourseThroughout his career, Yao Qian has been actively involved in discussions surrounding blockchain technology. In 2022, he published a book covering various topics within the blockchain space, including DAOs, DeFi, NFTs and X-to-earn models. In the foreword of his book, Yao emphasized the growing significance of Web3 innovation, noting it as a development direction of high importance and value for nations. Lack of specifics surrounding investigationThe announcement of Yao Qian's investigation has left many observers in the blockchain industry with questions, as authorities did not provide clear reasons for the probe. Despite his past contributions and current role in technology regulation, the investigation raises uncertainties about Yao's future involvement in the blockchain sector and his standing within Chinese regulatory circles. As developments unfold, stakeholders within the blockchain community will continue to monitor the situation surrounding Yao Qian's investigation and its potential implications for China's blockchain policies and initiatives. 

Singapore Elects Crypto Skeptic as PresidentGarnering 70.4% of all votes cast on Saturday, Singaporeans chose to elect Tharman Shanmugaratnam as their next president, a move that may have implications for Singapore’s outlook when it comes to digital assets.While many had hoped that he would be the nation’s first non-Chinese prime minister, the crypto industry has greeted his rise to this largely ceremonial role with mixed feelings. Shanmugaratnam’s previous stances on cryptocurrency and digital assets have been predominantly critical.Photo by Justin Lim on UnsplashFormer MAS ChairmanIn the past, the president-elect has referred to cryptocurrency as “slightly crazy” and “purely speculative.” His ascent to the presidency comes after a distinguished career that includes serving as the former finance minister, deputy prime minister, and chairman of the Monetary Authority of Singapore (MAS), the country’s central bank, from 2011 to 2023.Crypto platform collapsesIt was during his tenure at MAS that two prominent crypto companies, Three Arrows Capital (3AC) and Terraform Labs, faced catastrophic collapses.The demise of Terraform Labs, along with its TerraUSD (UST) stablecoin, triggered a severe “crypto winter” in May 2022, from which the industry is still struggling to recover. This downfall wiped out a staggering $500 billion in value over just two weeks, devastating the portfolios of numerous retail investors.The ripple effect of TerraUSD’s fall also engulfed 3AC, a significant cryptocurrency hedge fund headquartered in Singapore. The contagion spread across the cryptocurrency market, leading to the downfall of other major entities like crypto lending platforms Celsius Network and Voyager Digital, alongside Singapore-based Hodlnaut.Given that these catastrophic events unfolded during Shanmugaratnam’s tenure at MAS, it’s plausible that he bore the brunt of the consequences. That might explain why in speaking on the subject in 2021, he appeared to be more accommodative, suggesting that there may be a useful role that crypto could play and highlighting that Singapore had allowed crypto businesses to develop within the city-state.In June of last year, MAS reprimanded 3AC for providing misleading information and exceeding the allowed assets under management (AUM) threshold, thereby breaching its status as a registered fund management company.In January, Shanmugaratnam said that regulating the crypto sector would give credibility to speculation and on that basis, it would be best to leave it unregulated. He went on to suggest that crypto should be subject to existing regulation as laid down for traditional finance.Early stage concernsBack in 2018, when he was Singapore’s finance minister, Shanmugaratnam questioned the wisdom of broad regulation potentially legitimizing a speculative and “slightly crazy” market. During the 2018 World Economic Forum, he emphasized the importance of anti-money laundering measures and advocated for educating consumers about the risks inherent in the unregulated crypto sector.Although he acknowledged blockchain’s potential to enhance global payment systems, Shanmugaratnam favored integrating existing traditional payment mechanisms as an alternative to blockchain innovations.Singapore’s new president brings with him a history of skepticism towards cryptocurrency and digital assets. However, with a largely ceremonial role relative to day-to-day governance, he’s not in a position to take direct action that could hold the sector back although he will have the power to initiate corruption investigations upon the advice of the Singaporean cabinet.

Bithumb achieves top score in FIU anti-money laundering compliance evaluationSouth Korean cryptocurrency exchange Bithumb revealed today (local time) that it received the highest score in its evaluation group during the anti-money laundering (AML) compliance evaluation conducted by the Financial Intelligence Unit (FIU) under the Financial Services Commission for the first half of the year.Photo by okaybuild on PixabayInternal control improvementsThe exchange received high marks for improving its AML internal control system, expanding the number of employees, boosting employee training measures and properly reporting suspicious transactions.In response to the evaluation results, Bithumb reaffirmed its dedication to implementing improvements in these areas. It also said that it would provide AML-related training for employees in other departments by encouraging them to obtain professional certifications in AML compliance standards.Plans for further system reinforcementThe exchange is also set to introduce a next-generation AML system early next year that applies machine learning techniques to analyze transaction patterns, thus enabling it to respond to money laundering activities — which have recently become more elaborate and sophisticated — faster and more effectively.“The results of this compliance system assessment are proof of the efforts and consideration of Bithumb’s employees,” said Choi Hee-kyung, a compliance officer at Bithumb. “With the next-generation AML system that we plan to implement next year, we look forward to establishing an advanced AML internal control system that thoroughly abides by domestic and international AML laws while effectively preventing and examining money laundering cases and risks of terrorist funding.”This comes after Flybit, another Korean crypto exchange, also recently revealed that it has received top ratings in a comprehensive AML evaluation by the FIU.