Korean won overtakes U.S. dollar in Q1 crypto trading dominance

Huobi Aims for Hong Kong License Within 6–12 MonthsAccording to Justin Sun, the founder of layer one blockchain Tron and advisor to Huobi, the cryptocurrency exchange could have obtained a crypto trading license in Hong Kong by the end of the year.Photo by Pixabay on PexelsApplication submissionIn an interview with CoinDesk TV on Friday, Sun revealed that Huobi recently submitted an application to become a virtual asset service provider (VASP) in Hong Kong. While the approval process typically takes up to 18 months, Sun expressed optimism that a decision could be reached within the next six to twelve months.A legacy Chinese cryptocurrency exchange was driven out of the country a few years ago following the implementation of a crypto trading ban, and is now a Seychelles-headquartered company which currently has offices in Singapore, Japan, South Korea, and the United Kingdom.It had been previously understood that at least 10 companies with Chinese founders, including OKX, Bybit, and Huobi, had either announced or were known to be planning to announce their bid for licenses in Hong Kong. Sun’s comments today add clarity to the matter.Sun highlighted that during this grace period, which spans the next 18 months, the specific details of regulations will be developed. This includes guidelines on compliance with customer withdrawals and anti-money laundering requirements. He further explained that with the approval, Huobi Hong Kong will be able to operate, onboard customers, establish banking relationships, and serve its user base effectively.In a strategic move, Huobi relocated its headquarters from Singapore to Hong Kong, driven by the city’s aspirations to become a leading virtual asset hub as early as this summer. The exchange’s decision to establish a presence in Hong Kong positions it favorably to leverage the emerging opportunities in the region.Expectations of more applicantsWhile it’s not entirely clear who else has applied, Sun speculated that five to six other major players could follow suit. Among the potential contenders mentioned were OKX, Gate.io, Bitget, and ByBit. This suggests a potential wave of interest in Hong Kong as a regulatory-friendly jurisdiction for virtual asset trading.When asked about Huobi’s plans to enter the Canadian market and compete with established players like Coinbase and Kraken, Sun made it clear that Huobi has no immediate intentions to operate in Canada. He emphasized the importance of prioritizing friendly jurisdictions, with a specific focus on regions like the Caribbean, Hong Kong, and Japan.Hong Kong’s regulatory approach towards cryptocurrencies and virtual asset service providers has gained attention in recent months. The city’s commitment to establishing a robust framework for digital asset trading and ensuring compliance with international standards has drawn interest from industry players seeking regulatory clarity and stability.As Huobi progresses through the application process and awaits a decision on its VASP license, the outcome will have significant implications not only for the exchange itself but also for the broader crypto ecosystem in Hong Kong. The successful acquisition of a license by Huobi could set a positive precedent, attracting more exchanges to establish a presence in the region and further solidifying Hong Kong’s position as a leading virtual asset hub in Asia.The developments in Hong Kong’s regulatory landscape will be closely monitored by industry participants as they shape the future of virtual asset trading in the city.

Blockchain Mainnet FNCY to Collaborate with Web3 Community Platform GALXENetmarble F&C, a subsidiary of South Korean game developer Netmarble, announced on Tuesday that FNCY, the blockchain mainnet of its subsidiary Metaverse World, has established a strategic partnership with Web3 digital credential network GALXE.Photo by Shubham’s Web3 on UnsplashEmpowering the Web3 communityGALXE is a platform with over 11 million users dedicated to building the Web3 community. In collaboration with some 2,900 partners — including networks like Optimism, Polygon, and Arbitrum, among others — it offers rewards like non-fungible tokens (NFTs) and on-chain achievement tokens (OATs) to users when they contribute to their favorite Web3 community.Strengthening the FNCY chainThrough the new partnership, FNCY and GALXE plan to hold various events and campaigns to bolster the FNCY Chain. In addition, various decentralized applications (dApps) onboarding the FNCY Chain will be able to open channels and hold events themselves.“This partnership will play a significant role in adopting blockchain technology on a global scale and providing users with new experiences,” said Charles Wayn, CEO of GALXE.Seo Woo-won, CEO of Netmarble F&C, also described GALXE as the most suitable partner for forming and expanding the Web3 community and FNCY’s blockchain ecosystem.FNCY, previously called CUBE, is a Web3 entertainment platform where users can enjoy various content, including games, webtoons, and web novels. Users can also view transactions, blocks, wallet addresses, and other on-chain data.

Global crypto exchange Binance has carried out a survey which reveals that the security habits of Asian platform users are evolving positively.Photo by Vadim Artyukhin on UnsplashUsers responding to more sophisticated scamsIn a blog post published by the crypto exchange platform on May 6, Binance revealed that it had carried out a survey of nearly 30,000 platform users across Asia. The company’s takeaway following analysis of the survey data is that “scams are evolving — and so are crypto users.” The firm suggested that users are “stepping up their security game,” with exchanges facing growing demand from their users for real-time protection and smarter security tools. Increasing use of 2FAThe exchange platform found that 80.5% of survey respondents now use Binance two-factor authentication (2FA). While the use of 2FA is definitely a move in the right direction, it doesn’t guarantee the safety of a user’s digital assets.  In an article published by Forbes last month Forbes Contributor Davey Winder warned that infostealer malware can compromise 2FA codes in as little as 10 seconds. In June of last year, an OKX user lost $2 million in crypto to a hacker who utilized AI despite the victim having used Google’s 2FA. Double-checking transfersThe survey found that 73.3% of users double-check transfers before sending digital assets. Due to the nature of decentralized cryptocurrency, crypto transactions are not easily reversed and are usually irreversible. That puts a greater responsibility on crypto users to ensure that they are sending funds to the appropriate wallet address. Double-checking transfer addresses is not only necessary due to human error. Malware is also used by hackers to spoof such addresses, tricking the sender into sending the digital assets to their address rather than the one that was originally intended. It emerged in May 2024 that a Bitcoin trader had lost more than $70 million in Bitcoin in an “address poisoning” scam. Binance itself had warned users last September that “clipper malware,” which intercepts clipboard data on a user’s phone or desktop, replacing copied wallet addresses with alternative addresses under the hacker’s control, is increasingly being employed in hacking attempts. While the survey has revealed a positive evolution in the security habits of Asian platform users, there’s still room for further improvement. Just 17.6% of survey respondents utilize address whitelisting, a measure that restricts account user access to a safe list of pre-defined trusted addresses. Only 21.5% of survey respondents use anti-phishing codes as a security mechanism. The objective of phishing is to steal data, install malware on a user’s device or otherwise gain account access. An anti-phishing code aids the user in verifying the authenticity of emails and texts from a specific service. Security remains a major issue within crypto. Last month, hackers employed social engineering tactics to steal $330 million in Bitcoin from an elderly American victim. Exchange platforms themselves continue to struggle to safeguard user funds. Earlier this year, Binance competitor, Dubai-headquartered Bybit, suffered a $1.5 billion hack believed to have been perpetrated by North Korea’s Lazarus Group. Lazarus is also thought to have been behind a $235 million crypto theft at Indian crypto exchange WazirX in July 2024.