Worldcoin launches in Singapore post India hiatus

Tether fueling Cambodia’s dark economy despite banDespite being officially prohibited for trade in Cambodia, Tether (USDT), the leading USD stablecoin, has been found to be integrated into the Southeast Asian nation’s shadow economy.That’s according to a report published by the South China Morning Post (SCMP) on Sunday. The publication cites security experts, who it claims have highlighted the pivotal role of USDT, emphasizing its low fees and unrestricted capability to expedite the movement, concealment and laundering of money.Photo by DrawKit Illustrations on UnsplashPig butcheringThe U.S. Department of Justice’s November seizure of nearly $9 million traced to over 70 victims of online scams underscored Tether’s involvement. Collaborating with Tether Holdings and the crypto trading platform OKX, the investigation identified assets linked to “pig butchering” cyber scams in Southeast Asia, freezing an additional $225 million. While specific details regarding the origin of these assets remained undisclosed, Southeast Asia, including Cambodia, has emerged as a hub for money laundering related to online gaming and cyber scams.Cybersecurity expert Ngo Minh Hieu from the Vietnamese government’s National Cyber Security Centre warned of the susceptibility of cryptocurrencies to scams and Ponzi schemes, particularly targeting less informed investors. This heightened risk has spurred a surge in money laundering and online scams, leading to a spike in arrests.Official line versus realityIn many jurisdictions, the official line taken on cryptocurrency and digital assets doesn’t necessarily reflect the reality. China clamped down on crypto trading and mining a number of years ago. Despite that, a Wall Street Journal investigation earlier this year found that global crypto exchange Binance had a thriving China-centric business.The same seems to be true in Cambodia with respect to its official ban on crypto. Owners of both physical and online crypto exchanges in Phnom Penh openly admit to providing a parallel financial service in the developing economy. The prevalence of neon signs advertising exchange rates in Chinese yuan for USDT underscores the widespread usage of Tether in the region, particularly within Cambodia’s dark economy.Critics chime inNews of the illicit use of Tether in Cambodia has prompted a response from long-standing critics of the company. Tether’s harshest critic has been a pseudo-anonymous persona on the X platform with the username “Bitfinex’ed.” That account wrote:”Tether. The choice for organized crime & criminals. Giancarlo Devasini once said, ‘We’re going to have to learn to bank like criminals.’”Despite its role in facilitating illicit activities, the extent of Tether’s penetration into Cambodia’s economy remains challenging to ascertain. Globally, approximately 84 billion USDT is in circulation, with banks, exchanges and platforms flourishing, leveraging social media and encrypted channels to advertise seamless and reliable digital solutions for money flow challenges.One such platform, Huione Pay, operates in a bank-like setting, engaging customers in discussions about USDT exchange options. A closer look at Huione’s publicly available USDT exchange activities reveals insights into Tether’s role in enabling transactions within Cambodia.Some conversations in Chinese seek “pure white assets,” indicating funds from legitimate sources, while others do not request such provenance. These exchanges also advertise products and services crucial to scam operators, such as the sale of SIM cards from different countries.

Banking Difficulties Remain in Hong Kong for Crypto Start-UpsWhile Hong Kong has demonstrated a very clear crypto-friendly stance over the course of the past six months, crypto start-ups are still struggling with banking in the Chinese autonomous territory.Photo by Manson Yim on UnsplashLicensing backlogAll the signs are that Hong Kong is striving to develop itself as a regional hub for crypto and blockchain related business. Encouraged by that stance, against a background of the United States becoming openly hostile to crypto over that very same time frame, applications are streaming in from international firms to be licensed to operate their businesses in the city.In discussion with crypto start-up applicants, CoinDesk has established that the issue extends to firms that have already obtained a license to operate. To compound matters, the Hong Kong regulator, the Securities and Futures Commission (SFC), has a shortage of manpower, with just eight officials currently working on the applications of eighty crypto firms.Speaking to that backlog, Amy Yu, APAC CEO for Swiss crypto financial services company, SEBA Bank, stated: “This probably would have been a different story six or nine months ago.”A known problemIt appears that both the SFC and its regulatory peer, the Hong Kong Monetary Authority (HKMA) were aware of the issue and tried to get out ahead of it. Late last month, both regulators convened a meeting with bank officials and virtual asset service providers (VASPs).The objective was to try to forge a path forward such that banks could amend their approach, enabling greater facilitation and acceptance of crypto businesses such that the banks would be more inclined to approve bank account applications from those fledgling businesses.Arthur Yuen, Deputy CEO of the HKMA addressed the matter in a blog post published to the regulator’s website on April 27. Yuen was clear in calling on the banks to enable banking for VASPs:“With the implementation of the regulatory regime for VA [virtual assets] activities in Hong Kong and the strengthening of supervisory regimes in different jurisdictions according to the international standards, and as the banking industry develops a better understanding of the VA industry over time, we expect that regulated virtual asset service providers (VASPs) will be able to successfully apply for a bank account through a reasonable process.”Banker resistanceElaborating on the matter further, it’s clear that Yuen and his colleagues understand the importance of banking in enabling this nascent business sector such that the broader strategy of a pro-crypto business environment is affected in Hong Kong. “To attract businesses from new markets, it is crucial to have high quality financial services, while enhancing corporate access to bank accounts would be one of the key priorities,”he stated.An attendee at that regulator-organized round-table last month said that “It was more like a wish list from the regulator,” and that “whether the banks fully embrace it is another matter.” The issue remains as a major impediment to the ability of crypto start-up companies to operate, Some are being forced to try and work around the stumbling block, relying instead on overseas banking partners.

As cryptocurrencies continue to captivate South Korea, the world of ordinary digital asset investors is set for its primetime debut. Today, major broadcaster MBC is scheduled to premiere “To the Moon,” a new television drama that explores the risks and rewards of crypto investing. In crypto slang, “to the moon” refers to expectations of a sharp price surge, a phrase often used by traders to signal bullish sentiment. The series, airing Fridays and Saturdays, is an adaptation of Jang Ryujin’s 2021 novel of the same name, with an English edition released on June 19 of this year. It chronicles the lives of three young women who, despite landing what most would consider solid positions at a confectionery company, find their ambitions stifled by economic realities. Confined to small studio apartments and seeing little room for advancement, they turn to the volatile world of cryptocurrency as their pathway to upward mobility. The publisher describes these burnt-out protagonists’ journey as one that oscillates between humor and despair.Photo by Kanchanara on UnsplashEthereum’s rally and rising optimismIn the original novel, the plot is ignited when one of the women achieves a significant windfall by investing in Ethereum (ETH), inspiring her colleagues to join the fray. What follows is a familiar tale for many investors. They experience a period of wild price swings and respectable profits, only to see their winning streak abruptly halted by a severe market downturn. At the time the book was published in April 2021, ETH traded at roughly $2,100. Today, by contrast, CoinMarketCap data shows the asset trading at $4,543.14, more than doubling since the book’s release. Support for this bullish outlook comes from well-known market voices. Tom Lee, Fundstrat founder and chairman of ETH treasury firm Bitmine, told CNBC that Ethereum (ETH), Bitcoin (BTC), and the Nasdaq 100 would benefit most if the Federal Reserve cut rates, predicting a strong rally in the next three months. He made these comments before the Fed’s actual move, a quarter-point rate cut announced at its Sept. 17 Federal Open Market Committee (FOMC) conference. In a separate Fox Business interview, VanEck’s CEO echoed this view, saying ETH will emerge as the leading asset as banks adopt blockchain for stablecoin transactions. Data also points to growing strength. According to Token Terminal, the supply of Ethereum-based stablecoins has recently reached an all-time high of $168 billion. This milestone is largely attributable to the fact that over half of the entire stablecoin supply now operates on the Ethereum network, underscoring its foundational role in the digital economy. Talent drain and security risksStill, there are headwinds that could slow Ethereum’s ascent. A recent survey by Protocol Guild, an independent funding group for Ethereum core developers, revealed a compensation gap that threatens the network's long-term health. The survey found that Ethereum core developers are receiving external job offers with a median salary of $300,000—more than double the $140,000 median they currently earn for maintaining and upgrading the network. Protocol Guild has noted that this disparity could precipitate a talent exodus, potentially slowing future development. Security has been an ongoing concern, with ETH often targeted by hackers. In a reminder of the sector's vulnerabilities, the crypto exchange Bybit reported a theft of 401,000 ETH in February, an amount valued at roughly $1.5 billion at the time. The U.S. Federal Bureau of Investigation later identified the exploit, one of the largest in crypto history, as the work of the North Korean hacker known as “TraderTraitor.” "To the Moon" is set to air at a time when its themes of innovation and risk are playing out in the real world of crypto. The industry is riding a wave of institutional adoption and high valuations, but it's also facing a talent crunch and security concerns. These dynamics continue to keep digital assets on investors’ radar in South Korea and beyond.