BitGo secures in-principle MPI license approval in Singapore

HTX experiences $258 million outflow post-hackHTX, the digital-asset trading platform associated with Chinese-born crypto mogul Justin Sun, has witnessed a substantial net outflow of $258 million since resuming operations after a significant security breach.According to Bloomberg, data from DefiLlama indicates that the outflow occurred between the exchange’s restart on Nov. 25 and Dec. 10, signaling unease among some clients following last month’s cyberattack. In November, HTX reported a loss of $30 million in crypto tokens due to the breach, prompting a temporary suspension of withdrawals and deposits.Towards the end of last month, the platform re-enabled withdrawal services for major cryptocurrencies, gradually bringing the exchange back to full service, supporting withdrawal of all digital assets.Photo by Amritanshu Sikdar on UnsplashMultiple hacksJustin Sun is also associated with the Poloniex exchange and the HECO Bridge, a network established by HTX for blockchain transfers. Both Poloniex and HECO fell victim to hacks in November, resulting in the theft of approximately $200 million in crypto. It’s worth noting that hackers had previously stolen $8 million from the HTX platform in September.HTX, which was formerly known as Huobi up until a business rebrand in September, boasts an average trading volume of $1.5 billion in the past 24 hours, securing its position as the fifteenth largest exchange when measured in terms of trading volume.Increased vigilanceIn the wake of several high-profile crypto platform failures in 2022, digital-asset investors are increasingly vigilant about monitoring flows and reserves at virtual currency exchanges. In particular, that trend gained momentum after the FTX platform’s collapse last year due to fraud.November turned out to be the most damaging month this year so far in terms of platform digital asset theft. Exit scams and exploits encountered during the month totaled a staggering $363 million in losses.In October, the UK’s Financial Conduct Authority (FCA) included HTX, alongside KuCoin, on a warning list, due to their promotion of services in the UK, without having obtained the required regulatory approvals.A third of reserves in BitcoinDefiLlama data reveals that Bitcoin constitutes the largest portion of HTX’s reserves, accounting for approximately 33%. Tron’s TRX token, launched by Sun in 2017, represents around 32% of the reserves. HTX’s native exchange coin, HT, makes up 14%, followed by a Sun-backed token named stUSDT at 12%.In August, Travis Kling, Founder of Ikigai Asset Management, had this warning relative to Sun and HTX:”Justin Sun is a criminal. There’s a hole in Huobi, a hole in TUSD and a hole in Tron DeFi. Act accordingly.”TRX, at the center of U.S. fraud allegations against Sun, prompted a March lawsuit by the Securities and Exchange Commission (SEC), accusing him and his firms of market manipulation to inflate the token’s trading activity. Sun dismissed the suit on the X social media platform back in March, stating that it “lacks merit.” On Sunday, Sun claimed that the Tron blockchain network which he founded had reached a new milestone of 200 million users.Despite security firm BlockSec reporting the recovery of the $8 million stolen in September, hackers still appear to control the $30 million taken last month. The ongoing situation raises concerns about the security measures and resilience of HTX in the face of persistent cyber threats.

South Korea is weighing a fiat-backed stablecoin, balancing monetary sovereignty against the fact that global stablecoins are dominated by the U.S. dollar while domestic payments are already near-instant.Photo by DrawKit Illustrations on UnsplashThin domestic need despite sovereignty aimsThe case for a won-pegged token is facing challenging headwinds. As a recent Korea Economic Daily report highlighted, skeptics argue the won's limited global demand and lack of reserve currency status would curb its adoption internationally. Domestically, the need is even less apparent. A study by NH Investment & Securities noted that with retail payments settling in seconds via biometrics or passwords, and with world-leading credit card and bank account penetration, the efficiency gains from a stablecoin are marginal at best. Despite this, the appeal of digital currencies is growing. Transactions in dollar-backed stablecoins USDT and USDC on Korea’s five main exchanges totaled nearly $71 billion between January and August, according to CryptoQuant. This rising adoption presents both an opportunity and a threat. While some analysts believe stablecoins could smooth exchange-rate volatility, the Bank of Korea (BOK) has expressed concern. In a recent working paper, Son Min-kyu of the central bank commented that the widespread use of dollar-backed stablecoins could entrench the dollar's dominance, while also amplifying run risk and market volatility in Treasuries during periods of stress. Scarce short-term collateralSeoul also faces a unique structural hurdle: a shortage of short-term government bonds to use as collateral. Unlike the U.S., where stablecoin issuers rely on a deep market for Treasury bills, Korea’s bond market is dominated by long-dated paper. Kim Pil-kyu of the Korea Capital Market Institute (KCMI) described short-term sovereign bills as vital for a stablecoin’s value preservation, a resource Korea currently lacks. As South Korea deliberates, other major economies are forging ahead on divergent paths. Japan is moving to authorize privately issued stablecoins this fall, while the European Union has brought them under its comprehensive Markets in Crypto-Assets (MiCA) regulation. UK’s cap plan clashes with pro-innovation pushThis regulatory balancing act is also playing out in the U.K., where a policy rift is emerging. According to the Financial Times, the Bank of England has proposed capping individual holdings of widely used stablecoins at £10,000–£20,000, with a £10 million limit for businesses. Industry groups argue the plan would be expensive to implement and could blunt the U.K.’s competitive edge in digital finance. The central bank's caution also contrasts with the government's pro-innovation stance, with finance minister Rachel Reeves recently pledging to promote the use of stablecoins and tokenized securities. For Seoul, the global shift toward tokenized money is undeniable. With seemingly limited domestic demand and various structural challenges, a won-backed stablecoin is, for now, an idea worth watching as the broader financial landscape evolves. 

The Turkish Lira (TRY) has become the third largest fiat currency by volume in the cryptocurrency market, according to a report by Kaiko. This milestone was reached as TRY's share of the crypto market hit an all-time high of 19% in early June. The increase in volume is attributed to the country's economic challenges, notably its high inflation rate, which has surpassed 70%, making the lira one of the most volatile fiat currencies globally.Photo by Afdhallul Ziqri on UnsplashFactors influencing the increaseThe shift in the Turkish lira's position in the crypto market is partly due to increased foreign exchange volatility and currency devaluation, common catalysts for cryptocurrency adoption in developing economies. Additionally, geopolitical factors such as a record number of elections and diverging monetary policies have intensified market fluctuations. This environment has favored cryptocurrencies like Bitcoin, which reached new highs against the lira in recent months. For instance, Bitcoin escalated to 2.3 million TRY in March from 979,000 TRY in October 2023. The recent adjustments in cryptocurrency trading platforms, particularly Binance's delisting of certain fiat trading pairs due to banking issues, have also increased the dominance of TRY in crypto transactions. This series of events underscores the growing interconnection between traditional and digital finance markets, highlighting the increasing role of cryptocurrencies in regions facing economic instability.