NEOPIN works with Japan’s Jasmy to develop RWA-based DeFi products

The cryptocurrency market has come under renewed pressure as escalating global tariff tensions converge with growing stress in the private credit sector, though a South Korean analyst suggests that prospects for a rebound remain intact. According to Etoday, Yang Hyun-kyung, a researcher at iM Securities, noted that risk assets staged a brief rally after the U.S. Supreme Court ruled that President Donald Trump’s reciprocal tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), were unlawful. However, the relief proved short-lived as tariff fears reignited following the announcement of a 10% levy and a subsequent proposal to increase it to 15%.Photo by Markus Winkler on UnsplashLiquidations surge amid private credit jittersYang observed that market volatility intensified as concerns in the private credit market resurfaced after Blue Owl Capital halted redemptions for its Blue Owl Capital Corporation II (OBDC II) fund and initiated a $1.4 billion asset sale. Yang highlighted that $420 million in liquidations hit the crypto market as Asian trading opened on Feb. 23. This included $386 million in long positions and $34 million in shorts, signaling a swift deleveraging. These pressures are reflected in current price levels. According to CoinMarketCap, Bitcoin, the world’s largest cryptocurrency, is trading just below $65,000, down 1.13% over the past 24 hours. The token remains approximately 49% below the all-time high recorded in October. Bitcoin’s decline has widened valuation losses among digital asset treasury (DAT) firms. Yang estimated that Strategy, which holds 717,131 BTC, is sitting on roughly $7.89 billion in unrealized losses. Yang added that a potential shift toward monetary easing ahead of the U.S. midterm elections, combined with reduced regulatory uncertainty from the crypto market structure bill known as the Clarity Act, could serve as short-term catalysts for a rebound. Binance focuses on regulatory alignment in KoreaDespite the market slump, crypto firms are deepening their presence in South Korea. In an interview with ZDNet Korea, Binance Head of APAC SB Seker stated that the company’s focus is not on increasing its ownership stake, but on establishing a compliant, trusted, and sustainable operation in the country. Binance currently holds a 67.45% stake in Gopax, operated by Streami, after securing regulatory approval to become its largest shareholder. Addressing the issue regarding GoFi—Gopax’s DeFi product designed to generate returns for users—Seker said any repayments of unpaid customer funds must comply with Korean commercial law and satisfy relevant legal and administrative procedures. He added that discussions with regulators are ongoing and the company cannot unilaterally set a repayment schedule. Seker also noted that Binance plans to work closely with authorities to advance its business in areas such as institutional investment and stablecoins. Regulators reiterate exchange ownership capsAs the digital asset sector evolves, South Korea is moving to tighten oversight. MoneyToday reported that financial authorities have notified the heads of the country’s five largest crypto exchanges—Upbit, Bithumb, Korbit, Coinone, and Gopax—of their intention to introduce caps on the ownership stakes of controlling shareholders. The notification is widely viewed as a precursor to the government’s release of the Digital Asset Basic Act, often described as the second phase of the country’s crypto regulatory framework. The Financial Services Commission has maintained that a single largest shareholder’s stake in a crypto exchange should be limited to between 15% and 20%. At the meeting, officials outlined key elements of the forthcoming bill and reaffirmed their intention to enshrine the ownership cap in law. Representatives from the five exchanges and the Digital Asset eXchange Alliance (DAXA), the industry body to which the platforms belong, reportedly raised concerns about the proposal. 

Binance Thriving in China Despite Crypto BanWhen China cracked down on cryptocurrency trading in 2021, it seemed like Binance, the world’s largest crypto exchange, would have to leave the country behind. However, nearly two years later, an investigative report carried out by the Wall Street Journal finds that business is thriving for Binance in China.Photo by Hanson Lu on Unsplash$90 billion in monthly tradingThe report, which was published on Wednesday, reveals that users managed to trade a staggering $90 billion worth of cryptocurrency-related assets in China within just one month.Internal data, shared with The Wall Street Journal and corroborated by current and former employees, unveils this underground activity. Remarkably, these transactions propelled China to become Binance’s largest market, accounting for a massive 20% of global trading volume, excluding trades by a subset of major traders.Almost one million active Chinese usersDespite the supposed ban, Binance’s internal discussions highlight the pivotal role China still plays for the exchange. Current and former employees indicate that Binance’s investigations team collaborates closely with Chinese law enforcement. This partnership aims to identify potential criminal activities among the 900,000+ active users in China, underscoring Binance’s efforts to maintain oversight.However, Binance now faces regulatory challenges tied to its secretive global operations. In June, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its Founder, Changpeng Zhao (CZ), alleging illegal operations and misuse of customer funds.Meanwhile, the Justice Department is conducting its own investigation. A report by Semafor on Wednesday suggests that authorities are considering fraud charges but they’re concerned that such an eventuality may lead to a run on the exchange. This regulatory onslaught has seen Binance’s market share among US users plummet, leading to a reduction of over 1,000 jobs out of its 8,000-strong workforce.Circumventing regulationThe clandestine existence of Binance’s footprint in China offers insights into the exchange’s ability to function surreptitiously in unwelcoming environments. To circumvent restrictions, Binance directed Chinese users to visit local websites with domain names before rerouting them to the global exchange. This tactic allowed Binance to keep a foothold in China, even after the government blocked direct access to its website in 2017.China’s central bank, responsible for imposing the crypto ban, remained silent when questioned about these developments. Binance’s official stance is that its website is blocked in China and inaccessible to users there.Holding on to its China-based users is crucial for Binance as it navigates a treacherous regulatory landscape that threatens its future. The company’s history with China is intricate. CZ established the firm in Shanghai in 2017, only for the government to initiate a series of regulatory attacks on crypto exchanges soon after. This led to concerns about money being illicitly moved out of the country, and Zhao eventually relocated Binance’s operations to Japan.Despite this move, Binance retained a significant workforce in China, a decision that raised concerns among its US arm regarding data control. Binance’s Chinese heritage also attracted attention, with Zhao addressing the company’s challenge of being labeled both a “criminal entity” in China and a “Chinese company” in the West.Binance’s relationship with China remains complex. As the exchange navigates these murky waters, its ability to operate under the radar and maintain its foothold in markets like China will undoubtedly play a significant role in determining its future trajectory.

HashKey Group, the operator of one of Hong Kong's two licensed crypto exchanges, declared its newfound unicorn status on Tuesday, having successfully raised nearly $100 million in a recent funding round.Photo by Markus Winkler on UnsplashSeries A funding roundThe term "unicorn" denotes privately held companies valued at $1 billion or more, reflecting the remarkable achievement for HashKey in the rapidly evolving crypto landscape. With a valuation now surpassing $1.2 billion, HashKey positions itself as a major player in the crypto space within East and Southeast Asia. It’s leveraging its activities that span trading platforms, venture funding, wealth management and asset management in key locations like Hong Kong and Singapore. Its Singapore arm was awarded a capital markets license by the local regulator in December. Undisclosed investorsThe fundraising initiative was first reported in May of last year and later announced by HashKey in August. It attracted contributions from both existing and new investors. While the company refrained from divulging specific investor names, it referred to them as "prominent institutional investors" and "leading Web3 institutions," signaling a mix of established entities and those already at the forefront of Web3 innovation. It was previously disclosed that the company has been backed by the support of OKX Ventures, the investment arm of the well-known OKX digital asset exchange. The funds secured will serve a dual purpose – fostering the development of a robust Web3 ecosystem and supporting licensed products in Hong Kong. HashKey's diverse business arms, including asset management, a blockchain node validation service, a tokenization service, and a Web3 incubation arm, are set to benefit from the fresh capital infusion. The allocation of funds towards these ventures aligns with HashKey's strategic vision to contribute significantly to the evolving crypto ecosystem. Hong Kong hubHong Kong, eager to establish itself as a digital asset hub, has been the backdrop for HashKey's growth. The city's dedicated virtual-asset regulatory framework, introduced in June, aims to attract companies while prioritizing investor protection. Under this framework, retail investors can trade major tokens such as Bitcoin and Ether on licensed exchanges, with HashKey Exchange and BC Technology Group Ltd.’s OSL currently leading the way. Despite the optimism surrounding Hong Kong's potential as a crypto hub, uncertainties linger. The city's ability to support multiple crypto exchanges and the long-term commitment of officials to the sector remain open questions, given its susceptibility to occasional scandals. Since commencing its retail trading service in late August, HashKey Exchange has garnered over 155,000 registered users. The platform's 24-hour spot trading volume is estimated at approximately $11 million, according to CoinMarketCap data as of this writing. While this figure may pale in comparison to Binance, the world's largest crypto platform, HashKey's focus on building a resilient and user-friendly ecosystem positions it as a strong contender in the crypto industry's ongoing evolution. The successful funding round and unicorn status attained by HashKey underscore the renewed optimism in the crypto venture capital landscape. Following a market slump in 2022 and various challenges faced by crypto startups, the recent resurgence in token prices has reignited hopes for a more favorable venture capital outlook.