Thai regulator takes action against deceptive crypto ads

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.

Busan BDX Consortium named preferred bidder for Digital Asset ExchangeIn the latest development of Busan’s initiatives in the blockchain industry, the Busan BDX Consortium has been named the preferred bidder for the project aimed at setting up and operating the Busan Digital Asset Exchange (BDX).The South Korean port city of Busan organized a bidding competition for the project, whose application deadline was Nov. 28. This competition saw participation from two companies. Following this, a project proposal evaluation committee was recently assembled to review the presentations of these bidders at the Busan International Finance Center (BIFC).The selection of the Busan BDX Consortium as the preferred bidder was made after an evaluation process where 90% of the assessment criteria were qualitative and the remaining 10% were based on quantitative factors. The consortium is led by Itcen, a Seoul-based tech company that specializes in digital transformation.Photo by Pang Yuhao on UnsplashNegotiations and future stepsBusan City will now promptly enter into negotiations with the consortium, with the goal of finalizing its decision before the end of this year. Following the selection, Busan intends to sign a business agreement with the chosen bidder in January to move forward with the project.BDX is a platform designed to use blockchain technology for the digitization and trading of assets linked to Busan’s infrastructure in logistics, culture and finance. It is planned to be a fully private entity, a decision aimed at fostering freedom and creativity in its operations. Meanwhile, the city will offer administrative and financial support in accordance with its local ordinances.Son Seong-eun, who leads the Finance and Start-up Policy Bureau of Busan City, remarked that the development of BDX is set to establish a solid foundation for the blockchain industry and enhance the region’s economic growth. Aiming to establish Busan as a leading global blockchain hub, the city is committed to providing ongoing support for the new digital exchange, Son added.Blockchain to encourage volunteeringBesides the BDX project, Busan is also leading another blockchain initiative. Starting next year, the city will test a blockchain-based platform designed to manage and track volunteer experience points for its residents.The platform being developed by Busan will facilitate the connection between individuals seeking volunteer assistance and those who participate in volunteer activities. Its goal is to foster a virtuous cycle that contributes positively to society, enhancing the efficiency and impact of volunteer efforts within the community.Citizens will be able to accumulate points on the blockchain platform by participating in socially beneficial activities like distributing staple goods and contributing to carbon emission reduction. These points can then be redeemed for various benefits like attending concerts or accessing public parking lots. This endeavor to encourage volunteering is set for a full-scale launch in 2025.

Bithumb’s No-Trading-Fee Policy Proves Effective in Boosting User EngagementSince the recent introduction of a no-trading-fee policy for select cryptocurrencies, Bithumb, one of the leading cryptocurrency exchanges in South Korea, has experienced extended customer engagement on its platform.Increased user engagement and installationsOver the past week, the Bithumb app has witnessed growth in user engagement and installations. Both the average total time spent on the app and the average time spent per individual user have risen by nearly 20%. Additionally, there has been a 10% rise in the number of new app installs compared to the previous week.Photo by Mike Hindle on UnsplashTen new fee-free tokensIn this positive announcement today, the crypto exchange also revealed the addition of ten new virtual assets to its list of fee-free trading options. These newly added assets are SAND, AXS, BSV, QTUM, TFUEL, ANKR, T, KNC, STPT, and ONG. This brings the total number of fee-free trading assets on the exchange to 20.Customer engagement and trading volumeBithumb has demonstrated its commitment to making customers stay longer on its platform through various initiatives. Notably, the exchange, in late June, introduced Insight, a service that provides crypto investors with metrics to help them make informed decisions. The company believes that bolstering customer engagement will drive growth in the exchange’s trading volume.Bithumb, recognizing the positive impact of its zero trading fee policy on customer retention, internally saw this achievement as a successful step towards delivering tangible benefits to its users through an optimized trading environment.Since the beginning of the month, the exchange has been unveiling a weekly lineup of fee-free tokens, accompanied by a no-fee BTC market. These fee-free tokens are easily identifiable with a blue badge and can be conveniently sorted by clicking the “fee-free” tab at the top of the chart.Moon Sun-il, the Head of Services at Bithumb, emphasized the company’s commitment to noticeable user experience enhancement. Moon highlighted the recent implementation of the no-trading fee policy and the introduction of the trading data service, Insight, as key initiatives driving towards this goal.