OKX Ventures invests in Web3 infrastructure startup

Shares in Moon Inc. (formerly HK Asia Holdings Limited), a publicly listed Hong Kong-based firm that acts as an investment holding company while engaged in activities such as wholesale and retail sales of prepaid products such as SIM cards, have surged following the company’s symbolic purchase of one Bitcoin (BTC).Photo by Thought Catalog on Unsplash93% share price increaseThe stock (1723.HK), which is listed on the Hong Kong Stock Exchange (HKEX), closed at HKD 5.50 following Monday’s trading. That represents a 93% increase compared to the closing share price following the previous day’s trading. The share price has settled somewhat following Tuesday’s trading, pulling back 16% to HKD 4.60. However, it jumped again on Feb. 21, closing at HKD 6.48. Bitcoin adoptionIt’s believed that the stock has been influenced by a decision taken by the company to adopt Bitcoin. The firm bought just one Bitcoin. However, the move has led to speculation as to whether Moon Inc. will become the MicroStrategy (now rebranded as “Strategy”) of China.  Michael Saylor’s Strategy has pioneered the use of Bitcoin as a corporate treasury asset. The company has positioned itself as the frontrunner in terms of the corporate adoption of Bitcoin. The company has amassed 471,000 Bitcoin within its reserves. This accounts for 2% of all Bitcoin. With Strategy’s Bitcoin playbook having been well documented, other companies now appear to be following its lead.  In recent weeks, Metaplanet, a Japanese Bitcoin treasury company, has demonstrated that it is pursuing the same strategy, outlining its ambition to build a reserve of 21,000 Bitcoin by 2026. On Feb. 18, it announced a 10-to-1 stock split in an effort to improve liquidity while executing on that overall Bitcoin treasury goal. Metaplanet shares have surged 3,900% over the course of the past 12 months on the back of its Bitcoin treasury pivot. On Feb. 16, Moon Inc. announced the purchase of its first Bitcoin at a unit price of $96,150. In a statement, the company said that the purchase was financed by way of the firm’s “internal resources.” An evolving global financial landscapeThe company’s board noted the increasing popularity of cryptocurrencies in the commercial world, with particular emphasis on the use of Bitcoin as an investment portfolio asset. It believes that Bitcoin acts as a dependable store of value. It added: “The Board believes that this initial investment is symbolic in scale, and marks a significant step toward aligning with the evolving global financial landscape, and would diversify the Group’s investment portfolio and enhance its asset value.” The company’s stock rose significantly last month when details emerged of a 70% stock position in the firm, taken by UTXO Management, in collaboration with Sora Ventures and other investors. Recently appointed board member John Riggins of BTC Inc. said that this recent Bitcoin purchase by Moon Inc. “is more than a transaction.” He stated, “It’s a bold step toward creating a vision for the future of the company.”

A Hong Kong-based entity has emerged as the largest new shareholder of BlackRock’s spot Bitcoin exchange-traded fund (ETF), according to a recent regulatory filing.Photo by Kanchanara on UnsplashAs of Dec. 31, the firm held roughly 8.79 million shares of the iShares Bitcoin Trust ETF (IBIT), valued at $436 million, per a Form 13F disclosure filed with the U.S. Securities and Exchange Commission (SEC). The filing identifies the shareholder as "Laurore" and the reporting individual as Zhang Hui. While the entity is listed as Hong Kong–based, the document provides no further details regarding the company’s background or sources of capital. Because Form 13F filings disclose institutional equity holdings only at the end of each quarter, the specific timing of Laurore's accumulation of the IBIT stake remains unclear. Workaround for Chinese Bitcoin restrictionsJeff Park, Chief Investment Officer at ProCap Financial, noted on X that the entity appears to lack a public footprint. He observed that the filer’s name is common in China, suggesting limited traceability, and added that the “Ltd.” designation may indicate an offshore structure often utilized to access U.S. markets. Park further suggested that because IBIT is the firm's sole disclosed holding, Laurore likely functions purely as a $436 million Bitcoin exposure vehicle rather than a diversified fund. He theorized that this structure might reflect Chinese capital seeking regulated Bitcoin exposure via a U.S.-listed ETF, potentially signaling early indications of institutional capital flight. This disclosure arrives amidst a prolonged downturn for Bitcoin. The cryptocurrency is currently trading near $67,000, representing a decline of about 47% from its Oct. 7 peak of $126,000. Analysts split as BTC trades 47% below peakMarket analysts have offered diverging outlooks on Bitcoin’s next move. According to CoinDesk, Bloomberg Intelligence analyst Mike McGlone stated on X that he has raised his downside target for Bitcoin to roughly $28,000, up from a previous $10,000, arguing that this revised level better aligns with historical price distribution. This update follows McGlone's earlier warning that a continued crypto selloff could signal broader financial stress, and that Bitcoin could fall toward $10,000 if U.S. equities peak and a recession ensues. Conversely, Chase Guo, a former Binance executive, predicts Bitcoin will reach a new all-time high this year. As reported by BeInCrypto, Guo argues that this move will be driven by liquidity dynamics rather than fundamentals, with capital flows, market positioning, and consensus playing decisive roles. Guo believes a liquidity squeeze, fueled by derivatives exposure and capital rotation, could push prices beyond previous highs. Against the backdrop of Bitcoin’s fixed supply, he suggests that even modest institutional or sovereign inflows could exert an outsized impact on price. 

JPEX Exchange Scandal Sees Crypto Regulation Under Scrutiny in Hong KongWhile Hong Kong has been developing steadily as a crypto sector hub, the focus in the Chinese autonomous territory has turned towards regulation after a recent scandal involving an unlicensed cryptocurrency exchange.Photo by Ihor Saveliev on UnsplashOngoing investigationYesterday we reported on some arrests relative to problems experienced at crypto exchange JPEX. The fallout continues on Tuesday, with the Hong Kong police now understood to have arrested eight individuals, including social media influencers who promoted the exchange and JPEX employees, on allegations of fraud. This illicit activity in and around the JPEX exchange has affected over 1,600 investors, implicating more than $150 million in assets.JPEX, in response to mounting pressure, announced the suspension of trading on its platform. In a statement, the exchange mentioned ongoing negotiations with third-party market makers to address liquidity shortages. However, JPEX also accused an unidentified third-party market maker of maliciously freezing funds, further complicating the situation.Politicians and regulators speak outResponding to the incident via a press conference on Tuesday, Hong Kong’s Chief Executive, John Lee, emphasized the significance of investing in virtual assets through licensed platforms. Lee stated:“This incident highlights the importance that when investors want to invest in virtual assets, then they must invest on platforms that are licensed.” He also pledged that the Securities and Futures Commission (SFC) would closely monitor the situation to ensure investor protection.Elizabeth Wong, the Head of the SFC’s fintech unit, revealed that an investigation was underway to determine whether JPEX had violated anti-money laundering laws. The SFC had already declared JPEX unlicensed, prompting numerous complaints from investors who were unable to withdraw their virtual assets or experienced unexplained reductions in their balances.Assets frozenHong Kong authorities have taken decisive action against those involved in the scandal. They have frozen bank accounts valued at 15 million Hong Kong dollars ($1 million) and seized three properties valued at 44 million Hong Kong dollars. The police have reported receiving 1,641 complaints related to JPEX, involving a staggering $1.2 billion Hong Kong dollars. By last Wednesday, the SFC had received in excess of 1,000 complaints and at that point, they notified the general public.The JPEX scandal has drawn attention to the need for stronger cryptocurrency regulations in Hong Kong, a region that has become attractive to cryptocurrency firms since mainland China banned cryptocurrency transactions in 2021. In mainland China, trading cryptocurrencies on foreign exchanges from within the country remains illegal.Hong Kong’s response to cryptocurrency regulation has evolved. Beginning on June 1, the SFC started accepting applications from cryptocurrency exchanges, allowing licensed operators to serve retail investors, provided they understand the associated risks. Previously, only professional investors had access to such exchanges. Currently, only two exchanges in Hong Kong, OSL Exchange and Hashkey Exchange, have received approval to operate.As Hong Kong reevaluates its approach to cryptocurrency regulation, the crypto sector will hope that it strikes a balance between fostering innovation and protecting investors from fraud and market manipulation.