HashKey OTC scores in-principle approval in Singapore

Hong Kong Takes Steps to Enhance Crypto Platform OversightIn the wake of the ongoing JPEX scandal, the Securities and Futures Commission (SFC) of Hong Kong has pledged to intensify its efforts to combat unregulated cryptocurrency trading platforms operating within the Chinese autonomous territory.Photo by Ruslan Bardash on UnsplashPublic registry plannedAs of Monday, the SFC has announced a comprehensive plan to address these concerns. One key initiative includes the publication of a publicly accessible list encompassing all licensed, deemed licensed, closing down, and application-pending virtual asset trading platforms (VATPs). The purpose of this list is to empower the public with the information needed to identify potentially unregulated VATPs conducting business in Hong Kong.Ongoing JPEX falloutThese new measures arrive in the aftermath of the ongoing JPEX crypto exchange scandal, which local media outlets have characterized as one of the most significant financial fraud cases to ever impact the region. JPEX, a Dubai-headquartered platform, stands accused of offering its services to Hong Kong residents without having applied for a license in the country.The SFC pointed directly to the issues at JPEX in its most recent announcement, stating: “The JPEX incident highlights the risks of dealing with unregulated VATPs and the need for proper regulation to maintain market confidence. It also shows that dissemination of information to the investing public through the Alert List, warnings and investor education can be further enhanced to help members of the investing public better understand the potential risks entailed by suspicious websites or VATPs.”Christopher “Kit” Wilson, the Director of Enforcement at the SFC, discussed these developments at a press briefing held on Monday, alongside addressing the JPEX scandal. Wilson revealed that, due to evasive behavior from stakeholders and unsatisfactory responses to information requests, JPEX was placed on the regulator’s alert list in July 2022.It emerged last week that Hong Kong police had taken social media influencer Joseph Lam into custody related to the scandal. More arrests followed later in the week while authorities indicated that they were looking to tighten up regulation in light of the unfolding JPEX saga. By Friday, access to the web and mobile platforms of JPEX had been blocked with JPEX encouraging users to use VPN to circumvent the measure.Wilson further elaborated that a complex investigation, involving multiple parties across various jurisdictions, was initiated by the SFC, which escalated following the receipt of the organization’s first official investor complaint in April 2023. This coincided with the full implementation of the Anti-Money Laundering Ordinance (AMLO) in June 2023, prompting the commencement of a formal fraud investigation.Wilson stated: “As a result of that investigation, we issued a formal warning on Sept. 13 and referred the matter to the police.”As it stands right now, the financial ramifications of the JPEX scandal are estimated to have reached approximately $178 million. Local law enforcement agencies have received over 2,200 complaints from affected exchange users.

As cryptocurrencies increasingly position themselves as a recognized asset class and potential hedge against fiat inflation, illicit activity tied to digital tokens is becoming more visible. A recent high-profile case in the UK has brought this issue into sharp focus, centering on a fraud scheme originating in China. According to BBC News, the case involves Qian Zhimin, a woman who raised funds from more than 100,000 investors in China by claiming to operate a crypto mining company that also develops health products. Instead, she laundered the proceeds and fled the country. On Nov. 11, Qian was sentenced to 11 years and eight months in prison by a UK court.Photo by Vasilis Chatzopoulos on Unsplash$6B fraud and lavish lifestyle​Qian entered Britain on a forged passport in September 2017 and proceeded to live an extravagant lifestyle, renting a mansion in Hampstead for over £17,000 ($22,700) per month. She was arrested in northern England in April 2024, and it was found that she held roughly 61,000 Bitcoin, valued at roughly £5 billion ($6.6 billion), having converted portions of her holdings to cover her substantial living expenses. ​The sheer scale of her wealth was revealed after police searched her rented residence, discovering the Bitcoin reserves on hard drives and laptops. It marks the largest crypto seizure ever recorded in the UK. During the raid, officers also found four other individuals at the property illegally employed to handle household tasks such as shopping, cleaning, and security. ​Since Qian’s arrival in the UK, the value of her Bitcoin holdings has appreciated more than 20-fold. With the fraudster now sentenced, victims are seeing a glimmer of hope for restitution. A civil case scheduled for early next year will determine the fate of the seized assets. However, while many defrauded Chinese investors are reportedly preparing to file claims, establishing a clear paper trail may prove difficult. Many victims routed funds through local intermediaries rather than transferring them directly to Qian’s firm. ​U.S. Bitcoin forfeiture and Beijing’s allegationsWhile the UK courts grapple with the aftermath of Qian’s fraud, a separate crypto controversy is brewing between the U.S. and China, highlighting Beijing's continued vigilance over the sector despite its 2021 ban on trading and mining. According to Cointelegraph, the state-supported National Computer Virus Emergency Response Center (CVERC) has alleged that American authorities are connected to the disappearance of roughly 127,000 Bitcoin, valued at around $14.5 billion, from the LuBian mining pool. ​These allegations surfaced after the U.S. filed a civil forfeiture claim in October against Chen Zhi, the Cambodia-based founder of the Prince Group, who is believed to have owned the assets prior to the breach. At the time of the filing, the U.S. Treasury Department noted that the funds were already under its control. ​CVERC contends that Washington hasn't explained how it accessed the assets. Citing data from analytics firm Arkham, the Chinese agency suggested the funds had been under U.S. control for over a year. They argued that the prolonged inactivity of the Bitcoin before the formal seizure is inconsistent with the typical behavior of hackers seeking quick profit, implying state-level involvement. Economic chess between Washington and BeijingThis matter of Bitcoin control adds a new layer of complexity to U.S.–China relations, even as a trade truce between the two countries took effect on Nov. 10. In a report by CNBC, Washington cut tariffs on China’s fentanyl-linked imports to 10% and extended a reciprocal rate reduction under that agreement. In exchange, Beijing is said to have eased certain restrictions on rare earth exports. Analysts at Morgan Stanley suggest that China is maintaining its export-control regime, implemented in April, to retain strategic leverage. They caution that recurring negotiations and strategic divergence will remain defining features of the evolving bilateral relationship. 

Lotte Data Communication, the IT service management unit of South Korean conglomerate LG Group, brought its hyperrealistic metaverse platform Caliverse and electric vehicle charging platform EVSIS to the stage at CES 2024, attracting great interest from stakeholders from around the world, according to an article by South Korean news outlet KG News.Photo by GuerrillaBuzz on UnsplashExploring tomorrow's technologyCES is one of the biggest annual tech conventions in the world organized by Consumer Technology Association, where companies and other industry leaders gather in Las Vegas to showcase their innovations and visions for a future led by advanced technology. This year’s event was held from Jan. 9 to 12.  AI takes the spotlightIn particular, user-engaging technologies such as generative AI received much attention at the convention, such as AI mobile scanning, which allows anyone to take a picture of their product with a mobile device and virtually create their own digital object in less than five minutes. Another new technology called metaverse live streaming allows users to interact with each other in the virtual space in real-time by replicating their appearance. Standing at the forefront of the IT industryLotte’s Caliverse platform provides deeply immersive content based on world-class technologies such as ultra-high-definition VR shots, image synthesis and real-time rendering graphics. It can also be experienced through a head-mounted display (HMD) as well as most other electronic devices such as 3D monitors, PCs and smartphones, maximizing user accessibility. The company also showcased various EV chargers and digital platforms that are used in its other new product EVSIS, gaining popularity among visitors at the event. Lotte aims to further establish itself as a global market leader in the IT industry based on these cutting-edge platforms.