Bitget invests in Morph layer 2 network

Israel Freezes Crypto Accounts Linked to HamasIsrael has taken action to freeze cryptocurrency accounts believed to be involved in a fundraising campaign for the Palestinian militant group Hamas on social media, according to a statement by Israeli police on Tuesday.Hamas recently carried out a series of devastating attacks from Gaza into Israel, leading to one of the most severe escalations in the Israel-Palestinian conflict in years.According to the police statement:“With the outbreak of the war, Hamas’ terrorist organisation initiated a fundraising campaign on social networks, urging the public to deposit cryptocurrencies into their accounts.”Photo by Taylor Brandon on UnsplashBinance implicatedIn response, the Police Cyber Unit and the Ministry of Defense, with the cooperation of global crypto exchange Binance, located and froze these accounts, with the intention of diverting the funds to the state treasury.While the statement did not provide specific details about the number of accounts frozen or the value of the cryptocurrencies seized, it emphasized the government’s proactive efforts to counteract these activities.Hamas had been using cryptocurrencies as a fundraising method for some time, but in April, the group announced that it would discontinue receiving donations in Bitcoin, citing an increase in “hostile” activities against its donors.Binance has been cooperating with global law enforcement agencies and regulators to combat illicit activities, including those related to terrorism financing. A spokesperson for Binance stated:“Over the past few days, our team has been working in real time, around the clock, to support ongoing efforts to combat terror financing.”Unwelcome attentionThe exchange also mentioned that the data used to identify individuals and entities associated with specific organizations comes from intelligence provided by law enforcement and investigative tools developed in collaboration with partners.While Binance is cooperating with law enforcement on these matters, such specific attention is likely to be unwelcome. The exchange platform has been the subject of severe regulatory pushback internationally in 2023. Any suggestion of terrorist financing being enabled through the platform, even if unknowingly so, won’t be helpful to the business in overcoming its regulatory challenges.In the lawsuit taken against Binance by the Commodity Futures Trading Commission (CFTC) in the United States earlier this year, the CFTC claimed that Binance was aware that it had facilitated terrorist financing, specifically referring to Hamas-related transactions.Given that all eyes are currently on the activities of the Palestinian terrorist group, there could also be trouble for rival platform Bitfinex. According to a Wall Street Journal report earlier this year, Bitfinex Turkiye was alleged to have facilitated an account that was used by Hamas for money laundering purposes.Previous crypto seizuresThis action by Israel is not the first of its kind. In May, Reuters reported that Israel had seized approximately 190 crypto accounts on Binance since 2021, including two accounts linked to the Islamic State and dozens owned by Palestinian firms associated with Hamas.Binance responded to these developments by affirming its commitment to cooperate with law enforcement agencies and emphasized that it uses information available only to law enforcement to identify individuals involved in activities related to illicit organizations.

South Korea is building payment rails for a tokenized won on two tracks, one led by banks extending a central bank digital currency pilot, the other by card issuers testing stablecoins, with no law yet to govern either. The Korea Internet & Security Agency and the Ministry of Science and ICT said last week they had begun a project to extend the Bank of Korea's CBDC pilot, Project Hangang, into retail payments, according to a report by local outlet Digital Asset.Ilustration generated with ChatGPTThe Korea Financial Telecommunications and Clearings Institute, which operates the country's interbank payment network, will lead the consortium of nine commercial banks, eight payment gateways and two large organizations that will pilot the payments. It will connect existing payment infrastructure to Project Hangang on a 9.6 billion won ($6.6 million) budget. The pilot tested deposit tokens, a tokenized form of commercial bank deposits backed by a wholesale CBDC. The design avoids building anything new. Consumers would pay through bank-issued deposit token wallet apps, with a physical card under consideration, and merchants would keep their existing terminals. The stated aim is faster settlement and lower fees for small merchants. The government also plans to use deposit tokens for public spending, starting with a pilot for official expenses and later a treasury model linked to dBrain, the nation’s digital budget accounting system. Card issuers defend the railsSeparately, Newspim reported the Credit Finance Association and nine card issuers, including Samsung Card, Shinhan Card, KB Kookmin Card and Hyundai Card, on July 22 concluded a joint proof of concept for won-denominated stablecoins. Run on a test network, it examined whether authorization, settlement and cancellation functioned when a won stablecoin was routed through existing card rails, and whether smart contract-based terminals and QR payments could also handle loyalty points and government-issued vouchers. The tests come as the card business faces mounting pressure. Net income at the eight card companies fell 8.9% last year to 2.36 trillion won ($1.6 billion), as merchant fee income declined despite rising card spending. With 3.09 million merchants, or 95.7% of the total, on preferential fee rates in the first half, and wallet-based stablecoin payments raising the prospect of transactions that bypass card networks altogether, issuers have reason to secure a role in whatever comes next. Their pitch is that they already own the hard part. "Issuers would have to build payment infrastructure from scratch to circulate a stablecoin," a card industry official said. Bolting a settlement function onto existing card rails, the industry argues, would also let issuers apply the fraud detection and anti-money laundering systems already running on those networks. Legislation still stalledDigital assets featured in a reform agenda announced last week by Kim Min-seok, a lawmaker and former prime minister running for leadership of the Democratic Party. "I believe we need financial reform, and one of its key aims should be to establish our sovereignty over digital assets," Kim told a news conference, according to another Digital Asset report. His agenda included passage of the Digital Asset Basic Act, a legal framework for won stablecoins, rules for issuing and trading security tokens, and investor protection. The act, covering stablecoin issuance and digital asset service providers, is targeted for passage this year. Work on the bill had been due to start after party and government consultations in March but was postponed indefinitely, with the crisis in the Middle East among the reasons cited.

Bill Winters, the American banker who heads the British financial group Standard Chartered, appeared at the Hong Kong FinTech Week conference earlier this week, where he predicted a future in which cash will give way to blockchain-based systems for everyday transactions. According to Cointelegraph, Winters’ view aligns with that of Hong Kong regulators. At the same time, he stressed the importance of continued experimentation, noting that it remains uncertain how this transformation will ultimately take shape. Winters also commended Hong Kong’s leadership in exploring the potential of digital finance. Tech-driven finance has certainly been one of the key initiatives Hong Kong has been exploring. Recently, the Hong Kong Monetary Authority (HKMA) released its e-HKD Pilot Programme Phase 2 Report, which showed public support for tokenized deposits.Photo by Shubham Dhage on UnsplashReal-world assets gain ground on the blockchainOn-chain data also underscores the rapid growth of the tokenization sector. According to RWA.xyz, the total value of real-world assets (RWAs) deployed on-chain has climbed to $35.63 billion, up 7.8% from a month ago. A study by Ripple and Boston Consulting Group (BCG) estimates that tokenized assets could be worth $19 trillion by 2033, about 530 times their current value. Among RWA assets, the BlackRock USD Institutional Digital Liquidity (BUIDL) Fund, Tether Gold (XAUT), and Paxos Gold (PAXG) currently lead the market in terms of value. Over the past 30 days, BlackRock’s BUIDL Fund slipped 0.06%, while the two tokenized gold products, XAUT and PAXG, jumped 46.65% and 14.19%, respectively. These gains mirror gold’s bullish run in October, when its price surpassed $4,000 per ounce for the first time on Oct. 7. The momentum has since eased slightly, with gold now trading at around $3,969.55 per ounce. Tokenization brings 24/7 markets and P2P flexibilityIndustry experts point to the convenience of tokenization as a key advantage. Speaking to Yahoo Finance, Will Peck, head of digital assets at WisdomTree, explained that tokenized gold allows for around-the-clock trading and direct peer-to-peer (P2P) transactions. He added that gold and Bitcoin act as complementary stores of value, both serving as deflationary assets. Ian Kane, CEO of fintech company Firepan, said tokenized gold appeals to investors as it enables them to retain ownership, leverage their holdings for loans, and generate extra yield, while preserving their principal against debasement or devaluation. These views are not new. Earlier this month, Robinhood Markets CEO Vlad Tenev described tokenization as “a freight train” that “can’t be stopped,” predicting it will eventually transform the global financial system. Similarly, in his annual letter to investors in April, BlackRock CEO Larry Fink said the tokenization of assets could fundamentally reshape the way people invest. By digitizing ownership, tokenized venture capital funds could move beyond their closed circles, giving ordinary investors a stake in early-stage innovation and greater control over their capital. Venture capital faces hurdles in tokenization pushWhile tokenization promises greater accessibility and liquidity, not all market segments are ready for it. According to TheStreet, tokenized venture capital (VC) funds could open a traditionally closed market to more investors, but the process is more complex than it appears. In an interview with TheStreet, Elena Obukhova, founder of Supermoon Ventures, said that liquidity, not technology, is the main obstacle. Unlike tokenized company shares that can be traded freely on public markets, VC funds invest in private startups whose value may take years to materialize through an exit or acquisition. Allowing such funds to trade freely could increase volatility and pressure founders, as interim valuations might distort perceptions and weaken confidence in early-stage ventures. Still, the promise of tokenized venture finance remains within reach. Firms are testing models that limit trading periods, protect investor data, and refine valuation methods to better reflect the illiquid nature of startup investments. Since liquidity events such as initial public offering (IPOs) or acquisitions typically occur only every one to two years for early-stage startups, the path forward will depend on creating systems that can maintain stable and accurate valuations in the interim. Tokenization is rapidly emerging as a transformative force in the financial world, offering greater accessibility, liquidity, and efficiency. As more assets, from gold to venture capital, make their way onto the blockchain, the potential to reshape investment and trading markets grows. While challenges remain, particularly around liquidity and valuation in sectors like venture capital, the continued advancements in tokenization demonstrate its key role in the future of finance.