U.S. authorities seize crypto tied to Asian ‘pig butchering’ scam

Korea to introduce more effective guidelines for crypto listing and delistingThe South Korean cryptocurrency industry is expected to see standardized guidelines for listing and delisting cryptocurrencies on trading platforms by the first half of next year, according to a report by local news outlet ETnews. This move is a response to the current self-regulatory guidelines among cryptocurrency exchanges, which have been found inadequate in effectively managing the listing and delisting of digital currencies.Photo by Mathew Schwartz on UnsplashA dedicated task forceThe Financial Supervisory Service (FSS) in South Korea has reportedly initiated a task force dedicated to creating standardized rules and regulations for cryptocurrency listing and delisting. This team includes both government officials and experts from the private sector.An official from the FSS noted that the task force is aiming to present the final version of the guidelines to the National Assembly before the implementation of the Virtual Asset User Protection Act in July of next year. Operating under the oversight of the financial regulator, these standardized guidelines are expected to enhance their effectiveness and aid crypto businesses in maintaining self-regulation.Frequent listing and delistingThe decision by the Korean financial authorities to formulate these guidelines was prompted by the frequent listing and delisting of cryptocurrencies on trading platforms, which pose risks and cause confusion for customers. An earlier report from the Financial Services Commission’s Financial Intelligence Unit (FIU) highlighted that the number of tokens listed in the first half of 2023 increased to 169, up from 95 in the first half of 2022, while the number of delisted tokens rose from 78 to 115.The WEMIX controversyThe cycle of listing, delisting, and relisting cryptocurrencies has sparked controversies, with WEMIX serving as a notable example. WEMIX is the native token of blockchain gaming company Wemade’s Wemix blockchain network. In December, WEMIX was collectively delisted by the Digital Asset eXchange Alliance (DAXA), which includes South Korea’s top five crypto exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax. The reason cited was Wemade’s breach of disclosure rules regarding token distribution.However, in a turn of events, Coinone relisted WEMIX on its platform in February this year. Following this, DAXA established self-regulatory guidelines concerning the relisting of tokens. Despite these guidelines, Gopax also proceeded to relist WEMIX earlier this month. As a result of this move, DAXA criticized Gopax for not complying with the self-regulatory guidelines. Gopax faced a restriction on its voting rights within the alliance for three months, and a cautionary note was issued against them.An industry insider noted that despite the efforts of DAXA, their self-regulation measures for cryptocurrency trading services, including the listing process, have not been particularly effective. However, the upcoming rules are expected to be more impactful as they will be in line with the forthcoming Virtual Asset User Protection Act.

Over 3,700 participants flock to Upbit D Conference to explore insights in blockchainThe sixth annual Upbit D Conference (UDC), a major blockchain event in South Korea hosted by the country’s biggest cryptocurrency exchange Upbit, commenced on Monday (local time) at the Grand Walkerhill Seoul Hotel. Touting the theme “All That Blockchain,” the conference gathered some 3,700 participants — including 39 blockchain experts from 29 countries — both online and offline.Aimed at contributing to the blockchain ecosystem, UDC has gained acclaim as a non-profit event featuring in-depth lectures by experts from around the globe. While it initially focused on industry and technology alone, the conference has since expanded its scope to cover areas such as policy, finance, business, culture and trends.Photo by Gerd Altmann on PixabayLively guest discussionsHighlights of the event included a session led by Roger Ver, the founder of Bitcoin.com, who discussed the trajectory of the blockchain industry and the current status of Bitcoin. Korean telecommunications giant SK Telecom’s Executive Vice President, Oh Se-hyeon, also shared insights into the prospects of Web3 and blockchain services in Korea.Other speakers included Emily Parker, Executive Director of CoinDesk; Howard Fischer, former Senior Trial Counsel at the US Securities and Exchange Commission (SEC); Nizam Ismail, former Founding Chairman of the Regulatory and Compliance Sub-Commitee at Blockchain Association Singapore; and Kim Kab-lae, Senior Research Fellow at the Korea Capital Market Institute. Together, the four experts discussed country-specific perspectives and current issues regarding the rapidly changing regulatory landscape of the global virtual asset industry.“As blockchain’s influence expands across the economy, culture and society, UDC has evolved into a comprehensive conference capable of encompassing all aspects of blockchain. We hope it serves as a place that sparks positive inspiration and valuable connections,” said Song Chi-hyung, Chairman of Dunamu, the operator of Upbit.Growing recognitionOver the past five years, UDC has seen participation from over 1,190 companies and nearly 19,100 individual attendees. As of this month, the cumulative number of views on the conference’s official YouTube videos has reached 1.12 million. Videos of all of this year’s sessions can be viewed on the UDC YouTube channel and website.

The launch of Hong Kong's inaugural spot crypto exchange-traded funds (ETFs) is expected to occur by mid-2024, according to one of Hong Kong’s leading crypto executives. Gary Tiu, the executive director and head of regulatory affairs at OSL, a licensed cryptocurrency exchange based in Hong Kong, made that assertion in discussion with The Hong Kong Economic Journal. Tiu provided the publication with insights into the accelerating pace of negotiations between cryptocurrency exchanges and fund companies in the region.Photo by Stella P on UnsplashUp to ten firms contemplating ETF launchOSL is actively engaged in discussions with multiple fund companies, with five to ten firms contemplating the introduction of spot crypto ETFs. Tiu revealed that certain firms have made notable progress, raising the possibility of the debut of these ETFs in Hong Kong by the middle of the year. Additionally, the OSL executive emphasized the significance of maintaining reasonable fees in collaborations between OSL and fund companies, given the limited presence of licensed crypto exchanges in the city – a total of two at present. This suggestion from Tiu aligns with similar recent soundings emanating from HashKey, another licensed crypto exchange in Hong Kong, which recently disclosed its ongoing discussions with asset managers exploring the potential launch of spot crypto ETFs. Livio Weng, the CEO of HashKey, indicated that approximately ten fund companies are considering the introduction of such ETFs in the city. VSFG’s ETF plansAligned with Tiu’s thoughts on the matter, according to a Bloomberg report last week, Venture Smart Financial Holdings Ltd (VSFG), a Hong Kong-based financial services firm, expressed plans to potentially launch a spot bitcoin ETF within the first quarter of this year. Bloomberg reported the company's goal of growing the ETF's assets under management to $500 million by the end of 2024. The regulatory landscape in Hong Kong is actively adapting to accommodate spot crypto ETFs, with the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) announcing in December that they have reviewed their existing policies. Two circulars were published, outlining the requirements for spot crypto ETFs, with the SFC stressing that transactions should be conducted through SFC-licensed crypto platforms or authorized financial institutions. Currently, Hong Kong has listed several futures-based crypto ETFs, including the Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF and CSOP Ether Futures ETF. Hong Kong venue for Bitcoin conferenceIn a related development, local lawmaker Johnny Ng revealed on social media on Monday that Hong Kong will host The Bitcoin Conference this year. Earlier this month Ng urged the local administration in Hong Kong to swiftly follow the United States' approval of spot bitcoin ETFs and position the city as a leading hub in the cryptocurrency space. With Hong Kong and Singapore vying for hub status in the Asian region relative to the digital assets space, the launch of ETF products would give the Chinese autonomous territory a competitive head start given that Singapore doesn’t appear to be close to accommodating crypto ETFs for the time being.