Changpeng Zhao denied second request to travel to UAE before sentencing

150 Web3 Firms Emerge via Cyberport Within 12 MonthsHong Kong’s Cyberport, the flagship technology hub of the Chinese autonomous territory, has experienced exceptional growth over the past year, attracting more than 150 companies operating in the Web3 space.Photo by Ruslan Bardash on UnsplashA hotbed of innovationThe latest blog post by Hong Kong Financial Secretary Paul Chan, published on Sunday, sheds light on the remarkable success of Cyberport. It currently houses over 1,900 community enterprises, with a cumulative financing figure surpassing 35.7 billion yuan ($4.98 billion).One of the notable achievements of Cyberport is its portfolio of over 480 intellectual property projects, showcasing its commitment to fostering innovation. Moreover, Cyberport has played a pivotal role in nurturing the growth of several successful ventures, including six “unicorns” that have emerged from within its vibrant community.The Web3 space at Cyberport boasts prominent firms such as Hashkey Group, a licensed cryptocurrency exchange; Animoca Brands, a Web3 venture capital and game developer; and Consensys, the renowned Ethereum software company responsible for the widely-used crypto wallet MetaMask. The presence of these industry leaders further cements Cyberport’s status as a hub for cutting-edge technologies and groundbreaking ideas.Funding allocationRecognizing the immense potential of Web3 technologies, the Hong Kong government has allocated 50 million yuan ($6.9 million) from its financial budget to support Cyberport’s initiatives. This funding injection aims to expedite research and development efforts and foster the creation of innovative applications within the third-generation internet powered by blockchain technology.In addition to its achievements in the Web3 space, Cyberport has made significant strides in virtual asset trading and other sectors. Notably, in 2022, one of Cyberport’s companies became the second licensed virtual asset trading platform approved by the Securities and Futures Commission (SFC) in Hong Kong. This milestone solidifies Cyberport’s position as a driving force in the advancement of the digital asset ecosystem within the city.Emerging start-up successFurthermore, several technology-driven startups incubated by Cyberport have successfully launched initial public offerings (IPOs), showcasing the hub’s effectiveness in propelling ventures towards public market success. Notable examples include a smart logistics company and a travel platform.Hong Kong’s Web3 industry is witnessing a surge in blockchain-based security products, signaling a growing interest among investors. UBS and the Bank of China’s Hong Kong-based investment arm recently unveiled a groundbreaking blockchain-based structured note, marking the city’s first private security product on a public blockchain.The development team behind layer one blockchain, the Internet Computer Protocol (ICP), indicated in April that it planned to develop a hub within Cyberport, following its participation at Hong Kong’s Web3 Festival that month. The event was a success, attracting over 10,000 attendees.This achievement follows the successful launch of a government-backed green bond in February, which utilized a private blockchain platform provided by Goldman Sachs. These developments showcase Hong Kong’s commitment to developing its Web3 industry beyond cryptocurrencies, expanding into new realms of finance and technology.To ensure a regulated and secure environment for investors to participate in the growing sector, Hong Kong introduced licensing regulations on June 1 for cryptocurrency trading platforms catering to retail investors. These regulations demonstrate the city’s proactive approach to embracing innovation while prioritizing investor protection.

Matrixport Bullish Despite Bitcoin’s Price StandoffThe crypto market, with a total capitalization of around $1.08 trillion, finds itself in a tense state of anticipation towards October, which has been historically the most robust month for Bitcoin with average returns of over 20%, according to Singapore-based digital assets ecosystem firm Matrixport.Photo by Dmytro Demidko on UnsplashTechnical strugglesMeanwhile, Bitcoin (BTC) has been unable to breach the $27,400 mark, facing formidable resistance and failing to surpass its 50-day moving average. From a purely technical standpoint, the situation for Bitcoin appears bearish. The corrective rebound in BTC has concluded, with prices falling below key moving averages and short-term oversold conditions correcting themselves.This technical analysis reflects the cautious stance adopted by financial markets globally ahead of pivotal monetary policy decisions in countries like the US, Switzerland, the UK, and Japan.Mining difficulty increaseAnother notable development in the world of Bitcoin is the recent 5.48% increase in mining difficulty, bringing it to 57.12 T. This surge in mining difficulty is indicative of the ongoing robustness of the Bitcoin network, with the 7-day moving average reaching a substantial 423.4 EH/s, as reported by Glassnode.The leading cryptocurrency has a number of challenges and regulatory uncertainties that it must wrestle with currently.The regulatory issues at leading global crypto exchange Binance represent one of those challenges. Trading volumes on the Binance exchange have plummeted by 57% over the past week, driven by users seeking refuge on platforms yet to be subjected to regulatory crackdowns. Meanwhile, a court decision opted against ordering Binance’s US unit to provide the Securities and Exchange Commission (SEC) in the United States with further customer fund information, encouraging collaboration between the parties.Spot Bitcoin exchange-traded funds (ETFs) are another area where the market anticipates a resurgence in the cryptocurrency space, driven by a wave of applications to launch spot Bitcoin ETFs. This development, according to Matrixport, has the potential to be a catalyst for Bitcoin’s growth should a spot BTC ETF be approved. The leading digital currency’s market dominance is currently approaching 50%.Meanwhile, the announcement of a new Bitcoin fund by Laser Digital Asset Management, a subsidiary of Japan’s largest investment bank and brokerage group, Nomura, has been interpreted as bullish news. Laser Digital has introduced a Bitcoin fund targeting long-term institutional investments, further demonstrating the growing institutional interest in cryptocurrencies.Further good news has emerged via Citigroup in the United States, which has launched Citi Token. The offering leverages blockchain technology and smart contracts for business-to-business payments and trade finance, reinforcing the adoption of blockchain within the financial industry.Divergent PredictionsAlthough Matrixport’s outlook is bullish, it comes amidst a backdrop of regulatory developments and technical challenges, with analysts offering contrasting outlooks for Bitcoin’s future. Matrixport projects a bullish fourth quarter for Bitcoin, citing historical trends of strong performance during this period. It anticipates potential gains of up to $37,000 by year-end.Mike Novogratz, the Founder of crypto-focused financial services firm Galaxy Digital, envisions Bitcoin reaching $500,000 by 2024, fueled by increased adoption and maturation of the crypto market.

A recent survey in South Korea found that 20.3% of crypto investors have fallen victim to financial losses. Conducted by the Korea Financial Consumers Protection Foundation in late December, the survey polled 2,500 adults aged 19-69, with respondents able to select multiple loss categories. Investors in their 60s were most vulnerable, reporting a 25.3% loss rate. Exchange-related problems constituted the majority of incidents (72.8%), followed by online chat room scams (44.7%) and investment fraud (35.5%).Photo by Growtika on UnsplashExchange failures lead lossesAmong exchange-related losses, 40.6% of users couldn't sell assets due to system failures, while 11.5% lost digital assets through exchange hacking. Overall, exchange technical issues accounted for 52.1% of reported losses, with another 20.7% losing assets when exchanges closed completely. Chat group scam victims experienced various forms of fraud: 23.2% paid for worthless or false information, while 21.5% suffered financial losses through market manipulation or proxy trading schemes. Investment scams included fake crypto projects or fraudulent firms (18.0%), deceptive exchanges (10.3%), and other scams (7.2%). Most victims (75.1%) reported losses under 10 million won (approximately $6,945), with 34.6% losing less than 1 million won. Due to these relatively small amounts, 67.7% took no action following their losses. Of the 32.3% who sought help through various channels, 73.9% were unable to fully recover their funds. Problem worsening across Asia and beyondThis problem extends beyond South Korea. In neighboring Japan, police reported 19,038 crypto fraud cases in 2023, with damages totaling 45.26 billion yen (about $300 million), according to Chainalysis, citing Japanese National Police Agency data. These figures surpass 2022 numbers, indicating continued growth in fraudulent activities. A recent case highlighted by the Fukushima Minyu Shimbun involved a Soma City woman in her 50s who lost approximately 116.6 million yen ($780,000) to scammers impersonating police officers. The fraud began with a fake customer service call, followed by deceptive claims about fraudulent accounts and threats of arrest, which led her to create cryptocurrency accounts and transfer funds before eventually reporting the scam. Elderly at highest risk as fraud surgesThe FBI's Internet Crime Complaint Center's 2024 report further confirms this trend, documenting 149,686 crypto fraud complaints in the U.S. with $9.3 billion in reported losses—66% higher than in 2023. Notably, people over 60 were the most affected demographic, consistent with the Korean study's findings.