Malaysia launches operation to clamp down on crypto tax evasion

Venture Smart Financial Holdings Ltd. (VSFG), a Hong Kong-based financial services company, is gearing up to initiate an exchange-traded fund (ETF) directly investing in bitcoin in the first quarter of this year.Photo by Kanchanara on UnsplashThat’s according to a report by Bloomberg on Friday. The move aligns with Hong Kong's strategic efforts to establish itself as a digital asset hub, and with that, the company plans to submit an application to the Securities and Futures Commission (SFC) for ETF approval. Brian Chan, the group head of investment and product at VSFG, expressed optimism about the potential of this market, setting a goal of achieving $500 million in assets under management by the end of the year. Long-term objectiveWhile the firm has taken the decision to focus on spot crypto ETFs amid a backdrop of spot bitcoin ETF approval in the United States earlier this month, it’s an objective the firm has been working on for some time. In June of last year, crypto media reported that VSFG were planning the launch of such a product. Notwithstanding that intention, the recent launch of several high-profile bitcoin funds in the United States, including offerings from BlackRock and Fidelity Investments, will likely assist the company in getting product approval in Hong Kong. Immediately following U.S. approval, a Hong Kong lawmaker suggested that the Chinese autonomous territory should respond proactively. Johnny Ng outlined that Hong Kong had to respond to secure its global position in developing the digital assets space in Hong Kong. Positive soundingsTowards the end of December, there appeared to be positive soundings on the possibility of spot bitcoin ETF approval in Hong Kong emerging from the local regulator. SFC CEO Julia Leung stated that the regulator was open to the notion of retail participation in spot crypto ETF products. Her comment was followed shortly afterwards by a joint announcement from the SFC alongside the Hong Kong Monetary Authority (HKMA) that they were prepared to accept applications for such funds. The approval process for such products typically takes weeks to months, following the precedent of traditional ETFs. Hong Kong presently permits futures-based crypto ETFs, with three already listed: CSOP Bitcoin Futures, CSOP Ether Futures and Samsung Bitcoin Futures. However, these funds have a combined asset value of around $50 million. Samsung Asset Management has not ruled out exploring the launch of a spot ETF, while CSOP Asset Management remains silent on the matter. VSFG is one of Hong Kong's first SFC-approved virtual asset managers, offering both traditional and digital wealth management services. Aegis Custody, a digital asset custodian, is in discussions with four asset managers about listing spot crypto products in Hong Kong. The regulatory requirements in the city may lead issuers to impose higher fees compared to the low management levies seen in many new U.S. spot bitcoin ETFs. Although bitcoin experienced substantial growth in anticipation of these U.S. products, it has seen a 10% decline since their trading commenced on Jan. 11. Nevertheless, many industry commentators expect a stronger bitcoin unit price in the medium to long term as a direct consequence of these products. 

South Korean retail investors are pulling back from cryptocurrencies after months of falling prices, rotating capital into domestic equities in a sharp reversal from last year’s trading boom, according to a report by Bloomberg.Photo by Timothy Ries on UnsplashCrypto prices have declined since October, leaving many individual traders nursing heavy losses. In January, trading volumes on local exchanges have dropped roughly 65% year-on-year. By contrast, trading value on the KOSPI, the primary benchmark index of Korea's stock market, has surged 221% over the same period, reflecting a decisive shift in retail risk appetite. Korean investors—who had heavily favored volatile altcoins—are now reallocating funds into domestic and overseas equities, particularly artificial intelligence and robotics stocks. Brokerage margin balances have surpassed 30 trillion won ($20.8 billion), suggesting speculative capital has migrated rather than disappeared. South Korea has long been one of the world’s most retail-driven crypto markets, with individual investors playing an outsized role in price formation and trading volumes. The recent downturn, however, has exposed the risks of a market concentrated in smaller tokens. The rotation back to equities has also coincided with political momentum around boosting the stock market, including President Lee Jae-myung’s pledge to push the KOSPI toward 5,000. Ownership limits spark debateAs retail enthusiasm cools, regulatory questions are moving to the forefront. A debate has emerged over potential limits on major shareholders’ stakes in crypto firms—a proposal that has stirred controversy over governance and competitiveness. According to MoneyToday Broadcasting MTN, Democratic Party lawmaker Min Byoung-dug recounted a recent dinner conversation in Seoul in which Eric Trump, the second son of U.S. President Donald Trump, reportedly reacted skeptically to the idea. Trump was said to have questioned whether such ownership restrictions would be conceivable in the United States. Supporters argue that ownership caps could strengthen oversight and reduce excessive concentration of control in crypto firms. Critics warn they could deter investment and weaken Korea’s position in an increasingly competitive global market. Innovation continues despite slowdownEven as crypto volumes shrink, financial innovation tied to digital assets is pressing ahead. Decentralized exchange Lighter said on X that it will support perpetual futures contracts linked to major Korean equities. The products include exposure to Samsung, SK Hynix, and Hyundai, as well as a KOSPI index-based contract with 10x leverage. The move reflects a broader convergence between crypto platforms and traditional financial assets.  Regional competition intensifiesKorea’s regulatory direction is also being watched across Asia. Speaking at the Consensus Hong Kong, lawmaker Johnny Ng said the city could draw lessons from South Korea and the United Arab Emirates in shaping its crypto framework. According to CoinDesk, he noted that the UAE has established a robust regulatory structure with dedicated oversight, while Korea operates a government body tasked with supervising crypto activities. As financial centers compete to attract crypto businesses, clarity in regulation has become a strategic differentiator. For now, Korea’s crypto market appears to be recalibrating rather than collapsing—with retail traders retreating, policymakers debating guardrails, and new leveraged products testing the boundaries of innovation. Whether this marks a transition toward a more mature phase or merely a pause in speculative fervor may depend on how the country balances investor protection with growth. 

Former FTX COO Finds New Role at Sino GlobalConstance Wang, previously known for her executive roles at FTX, has recently joined crypto venture capital firm Sino Global Capital.That’s according to sources Bloomberg cited in a recent report as being familiar with the matter. Wang held the role of Chief Operating Officer at FTX and was also the Co-Chief Executive Officer of FTX Digital Markets, the affiliate of the now-defunct crypto exchange, which was based in the Bahamas. Her responsibilities at FTX included overseeing global business expansion, token listings, and public relations and marketing.Following the collapse of FTX and its sister trading firm Alameda Research, Wang has reportedly spent a significant amount of time in China, according to an undisclosed source.Sino Global Capital, founded in 2015 by Beijing-based American investor Matthew Graham, had revealed its early investment in FTX after the exchange’s collapse. The management team stems from a background in consulting, Wall Street, private equity, government, and corporate spheres. A year prior, the venture capital firm launched a $200 million fund with FTX as a key investor. Sam Bankman-Fried, the Founder of FTX, expressed gratitude for Sino Global’s support, stating that they believed in the FTX vision from the beginning and assisted in making it a reality.Photo by Henry Kobutra on UnsplashLawsuitGraham was quite public in his support of FTX and Sam Bankman-Fried. He appeared frequently on podcasts, always explaining that the FTX founder was a genius. On investing in FTX and in projects in general, Graham stated repeatedly that Sino Global maintained a high level of due diligence. Most of the leading venture capital investors in FTX (including Sino Global) have been subject to class action lawsuits filed by creditors. It’s claimed that many of these investors didn’t simply invest capital but also got involved in actively marketing what turned out to be a fraud.In January, the court-appointed management team overseeing the FTX bankruptcy proceedings sought permission to subpoena Wang and other former executives of the company. Court filings indicate that Wang has not been accused of any wrongdoing in relation to the collapse of FTX or Alameda.Prior to her tenure at FTX, Wang briefly worked at the crypto exchange Huobi in Singapore as a Business Development Manager. She also spent two years as an analyst at Credit Suisse.New rolesIn recent months, other former FTX employees have also reappeared in new roles. Amy Wu, who left Lightspeed Venture Partners to lead FTX Ventures, announced her joining Menlo Ventures, one of the oldest venture firms in Silicon Valley. Brett Harrison, former President of FTX US until his sudden resignation in September 2022, has founded a startup with plans to provide a “GPT-4-powered trading algorithm code generator.”The transition of Constance Wang and her fellow FTX alumni into new positions at face value seems like a logical progression. However, all of the FTX c-suite executives remain under ongoing scrutiny. Having brought charges against Bankman-Fried, Caroline Ellison, and Nishad Singh some months ago, Southern District of New York (SDNY) Attorney Damian Williams stated clearly that more arrests would follow.