Worldcoin executives meet Malaysian leaders 

OKX Enters Final Stages of Securing VASP License in Hong KongSeychelles-headquartered cryptocurrency exchange OKX is on the verge of securing its virtual asset service provider (VASP) license in Hong Kong, with approval expected as early as June 2024.That’s according to Li Zhikai, OKX’s Global Chief Commercial Officer, who, in a recent interview with Infocast, shed light on the exchange’s preparations, including collaborations with banks and other related technological integrations.Photo by Simon Zhu on UnsplashThe Road to a VASP LicenseObtaining a VASP license in Hong Kong is no easy feat. Regulatory requirements impose a 30% cap on investors’ crypto investments, ensuring they do not risk more than one-third of their net income.Furthermore, the Hong Kong regulator has implemented stringent crypto asset storage protocols, mandating that crypto exchanges securely store 98% of their crypto assets in cold wallets. Additionally, they must provide insurance and compensation arrangements to protect clients’ interests.Cost has been another issue. In June it emerged that Web3 businesses have been shelling out anywhere between 20 million and 200 million Hong Kong dollars ($2.55 million and $25.5 million) in order to see out the licensing application process.Alongside these licensing difficulties, Hong Kong’s Securities and Futures Commission (SFC) issued a warning last month aimed at unregistered crypto businesses engaging in “improper practices” within the Chinese autonomous territory.OKX’s remarkable growthWith OKX having reported growth within the Hong Kong market earlier this year, pointing to the onboarding of over 10,000 new users in just one month, it’s likely that licensing is both worthwhile and necessary for the firm despite the difficulties in obtaining it. In March the exchange established OKX Hong Kong, a local entity, with the primary objective of securing a VASP license and operating as a virtual asset trading platform within the city.Hong Kong’s decision to open its doors to retail investors as of June 1 generated significant interest, with more than 80 foreign and Mainland China-based crypto companies expressing their intent to establish a presence in Hong Kong and obtain local licenses. Among these firms are Gate.io, Huobi, CoinEx, and Interactive Brokers.Expanding global reachNotably, OKX has been actively acquiring licenses in various jurisdictions worldwide as part of its strategic expansion plan. The exchange secured a Minimal Viable Product (MVP) license from the Dubai Virtual Assets Regulatory Authority (VARA) in June. This licensing milestone followed the establishment of a new office at the Dubai World Trade Center by OKX.Before venturing into the Middle East, OKX took steps to obtain a French digital asset service provider (DASP) license in May, aiming to position France as its regional hub in Europe. To facilitate this, OKX established a local subsidiary, OKX France. The application and registration process with the French regulator is expected to enable OKX to operate in full compliance with European regulations.Hong Kong embarked on its journey to become a crypto-friendly jurisdiction over the course of the past 12 months, but particularly so when it unveiled its licensing framework for cryptocurrency exchanges catering to retail customers earlier this year. However, only a handful of platforms, such as HashKey and OSL, managed to secure licenses for offering retail crypto trading services. Others, including Huobi and Gate.io, are still awaiting that regulatory nod.

Klaytn Foundation Denies Embezzlement Allegations Involving KLAYThe Klaytn Foundation, the group behind virtual asset KLAY, has denied allegations against the former chairman of Kakao, the South Korean messaging app developer, as well as executives from its subsidiaries, according to local news outlet Digital Asset. These allegations accuse them of embezzlement involving the cryptocurrency.A formal complaint detailing these allegations was submitted on Wednesday by Economic Democracy 21, a civic group, to the joint crypto-crime investigation division of the Seoul Southern District Prosecutors’ Office.Photo by alleksana on PexelsKlaytn’s responseIn response, the Klaytn Foundation has characterized the allegations as arbitrary and unfounded. The foundation is taking the matter seriously and is planning to conduct a comprehensive fact-check to actively address the claims.Civic group’s claimsEconomic Democracy 21 contends that select insiders at Kakao and its subsidiaries have illicitly accumulated hundreds of billions of Korean won. According to the group, this was done by converting KLAY tokens into cash under the pretense of investment and compensation.Ongoing commitmentIn the midst of this legal dispute, the Klaytn Foundation reaffirmed Klaytn’s steadfast dedication to advancing its scheduled initiatives in collaboration with its ecosystem partners.

The People’s Bank of China (PBOC) plans to roll out a new structure for its central bank digital currency (CBDC) operations, moving the digital yuan into a deposit-based role within the commercial banking system beginning Jan. 1, 2026. Lu Lei, a deputy governor of the PBOC, announced the update, marking a new direction after nearly a decade of pilot programs. According to a report by FTChinese, the move fits into Beijing’s broader economic planning, as authorities seek to reinforce China’s role in global finance while containing risks tied to loosely regulated digital activity. The deputy governor said China will continue to run the digital yuan under a two-tier system, with the central bank responsible for rules and infrastructure, while commercial banks manage wallets, payments, and compliance. He added that the arrangement is designed to prevent banks from being sidelined and to limit shadow banking risks associated with digital payment platforms outside the regulated system.Photo by Eric Prouzet on UnsplashDigital yuan transactions top $2.3TThe announcement comes as use of the digital yuan, known as the e-CNY, continues to rise. By late November 2025, the system had handled 3.48 billion transactions with a total value of 16.7 trillion yuan ($2.3 trillion). There are about 230 million personal wallets and 18.84 million corporate wallets. Beyond domestic use, the e-CNY is being positioned for international trade. Lu pointed to progress on mBridge, a cross-border payments project involving multiple central banks. The platform has processed 4,047 transactions worth the equivalent of 387.2 billion yuan ($55.3 billion), with the digital yuan accounting for about 95.3% of the settlement value. The deputy governor also sounded a note of caution on private-sector innovation, saying the rapid growth of digital assets and stablecoins could complicate the conduct of monetary policy. He said central banks need to ensure that new payment tools do not undermine macroeconomic stability or allow money to circulate beyond regulated channels. Hong Kong to license crypto dealers, custodiansAs Beijing moves to strengthen its state-backed currency framework, Hong Kong is also tightening oversight of the crypto market. On Dec. 24, the city’s Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) released their conclusions on proposed legislation to regulate virtual asset dealing and custodial services. Following the implementation of the Stablecoins Ordinance in August, regulators are now moving to require firms offering crypto dealing or custody services in Hong Kong to obtain licenses and operate under regulatory supervision. They also began seeking feedback on whether to extend oversight to virtual asset advisory and management providers, with the proposed framework modeled on existing securities market rules. In a separate development underscoring the contrast between state-backed and decentralized digital currencies in the region, reports this month pointed to a sharp drop in Bitcoin network activity linked to mainland China. BTC hashrate drop seen amid China mining changesKong Jianping, CEO of Nasdaq-listed Web3 infrastructure firm Nano Labs, said on the social media platform X that the global Bitcoin network’s hashrate fell by about 100 exahashes per second, or roughly 8%, around Dec. 15. He attributed the decline to the shutdown of an estimated 400,000 mining rigs, mainly in Xinjiang. A lower hashrate means less computing power is securing the network, reducing competition among miners that validate transactions. China has maintained a broad ban on crypto trading and mining since 2021. Industry outlet Wu Blockchain said the reasons for the latest shutdowns were unclear.