North Korea becomes major nation-state holder of Bitcoin following hack

SEC Lawsuit Stalls Binance’s Gopax Acquisition Deal in South KoreaNothing exists in a vacuum, and on that basis, it appears that ripples emanating from the recent lawsuit filed by the Securities and Exchange Commission (SEC) in the United States against global crypto exchange Binance have resulted in the company struggling to complete the acquisition of South Korea’s Gopax.Photo by Daniel Bernard on UnsplashSuspended pending reviewThe acquisition deal between Binance and South Korean crypto trading platform Gopax has hit a roadblock as a direct consequence of the lawsuit. The Financial Services Commission (FSC), the financial watchdog in South Korea, has put the acquisition on hold as it reviews the situation.Binance had acquired a majority stake in Gopax in February, with plans to re-enter the South Korean crypto market after a two-year absence. Gopax is a top five cryptocurrency exchange in South Korea, alongside Upbit, Bithumb, Coinone, and Korbit. However, according to a report by local news media, the FSC has suspended Gopax’s executive change report filed on Tuesday in light of the SEC lawsuit. The report outlined the nomination of three Binance members, including Leon Singh Poong, as inside directors of Gopax.The FSC cited the allegations of securities law violations against Binance and the SEC’s request to freeze Binance.US assets as the reasons for its cautious approach.Gopax revivalThe significance of Binance’s acquisition of Gopax goes beyond its re-entry into the South Korean market. It also aimed to revive the struggling local crypto trading platform. In November 2022, Gopax faced challenges when it suspended withdrawals of principal and interest payments from its decentralized finance service, GoFi, following the collapse of the Bahamas-based FTX crypto exchange and the bankruptcy of Genesis, a US digital assets financial services firm.Digital Currency Group, the parent company of Genesis, was reportedly the second-largest shareholder of Gopax and a key business partner providing the GoFi product. Binance’s acquisition deal intended to inject new capital into Gopax to facilitate customer withdrawals and interest payments for GoFi.The SEC lawsuit against Binance alleges the exchange’s commingling of customers’ funds and violations of various securities laws. The SEC has filed 13 charges against Binance, its subsidiaries, and its CEO, Changpeng Zhao.Acquisition strategyBinance appears to have been pursuing an acquisition strategy in attempting to carve out a greater market share in Asian markets. Binance entered the Japanese market via acquisition in November 2022 when it purchased local crypto platform, Sakura Exchange BitCoin. At the end of last month, Binance announced that it was rebranding the business as Binance Japan and launching it as a stand alone bespoke platform dedicated to the Japanese market.In Thailand, the global crypto exchange has varied its approach, entering into a joint venture rather than a full acquisition. It has partnered with Gulf Innova, with the new entity, Gulf Binance, recently having been awarded a trading license by the Thai regulator.The outcome of the SEC lawsuit and its impact on Binance’s operations in South Korea remains uncertain. The FSC’s review process will consider the allegations against Binance and the implications of the SEC’s actions before making a decision on the Gopax acquisition. The crypto industry will closely monitor the developments as they unfold, as no doubt the saga will have broader implications for Binance and its expansion plans.

JD.com, one of China’s largest business-to-consumer (B2C) online retailers, is understood to have registered “JCOIN” and “JOYCOIN” ahead of Hong Kong’s Stablecoins Ordinance going live on Aug. 1. According to a report published by the Hong Kong Economic Times, in its trademark registration application, JD.com described the services associated with the two brand names as implicating the provision of electronic fund transfers and cryptocurrency-related financial transactions achieved via blockchain technology.Photo by tommao wang on UnsplashHKD-pegged stablecoinThe trademark registrations were filed by JD.com's subsidiary company, JD Coinlink Technology. The company was announced as a participant in the Hong Kong Monetary Authority’s (HKMA) stablecoin issuer sandbox last year. Around that timeframe, it also unveiled plans to launch a stablecoin pegged to the Hong Kong dollar (HKD).  That move was followed by British multinational bank Standard Chartered in February, with it announcing the launch of a HKD-pegged stablecoin in Hong Kong alongside local partners. Standard Chartered and its partners have also been participants in Hong Kong’s stablecoin issuer sandbox. Liu Peng, CEO of JD Coinlink Technology, provided an update in May, outlining that its stablecoin was entering phase two of sandbox testing. He stated that he hopes the project “contributes to payment efficiency not only within JD’s ecosystem but also for businesses and individuals worldwide.” On its website, JD Coinlink Technology describes its “JINGDONG Stablecoin” as a stablecoin backed 1:1 by the Hong Kong dollar, with the goal of meeting regulatory compliance and becoming “one of the leading digital currencies for businesses and individuals seeking for efficient, cost-effective, and secure payment solutions.” In a press briefing in Beijing in June, Peng outlined that the company was making preparations to apply for stablecoin issuer licensing in several markets. The JD Coinlink Technology CEO asserted that stablecoins “can reduce payment costs by 90% and complete transactions within 10 seconds.”  Ant Group, a subsidiary of another Chinese e-commerce giant, Alibaba, has also been following a similar track, preparing to apply for stablecoin licensing in both Hong Kong and Singapore. Push for yuan-pegged stablecoinsBoth Ant Group and JD.com have been lobbying the authorities in China for permission to issue a yuan-pegged stablecoin. Mainland China continues to impose a prohibition on crypto trading and mining, although more recently there have been signs that it may be considering accommodating stablecoins. Behind closed doors, it is understood that JD.com has urged officials at the People’s Bank of China to permit the issuance of offshore yuan-pegged stablecoins as a means to promote use of the yuan internationally and to enable more efficient cross-border trade. Hong Kong is perceived by many commentators as a testing ground for the digital assets sector in China. However, regulators in the Chinese autonomous territory have expressed caution around approving fiat-backed stablecoins tied to foreign currencies, noting that such issuances would require prior “discussions with the relevant authorities.” With Hong Kong’s Stablecoins Ordinance going live on Aug. 1, the HKMA published further guidelines for licensed stablecoin issuers on July 29. The regulator disclosed that it intends to publish a public registry of licensed stablecoin issuers for the benefit of the general public.

Dunamu’s Legal Team Recognized by Korean Police for Cyber Security ContributionsDunamu, the blockchain and fintech company behind South Korea’s largest cryptocurrency exchange Upbit, recently announced a noteworthy security achievement. At the 16th Cyber Security Awards organized by the Korean National Police Agency (KNPA), the leader of Dunamu’s Legal Team 3 was recognized with the KNPA Commissioner General’s Certificate of Appreciation. This accolade was in acknowledgment of the legal officer’s pivotal role in fostering collaboration between the private sector and police to combat the rising tide of cryptocurrency-linked crimes.Photo by Franck on UnsplashSupport guides and educational resourcesDunamu stands out as the only Korean virtual asset service provider (VASP) to have an employee distinguished in this manner this year. It’s worth noting that Dunamu’s legal teams have been proactively cooperating with law enforcement, providing them with investigation support guides and educational resources.A representative from Dunamu’s legal teams expressed gratitude to all team members for their collaborative efforts in combating virtual asset-related crimes and appreciated the recognition for their achievement. The official further emphasized Dunamu’s ongoing dedication to maintaining close cooperation with police and investigative bodies, aiming to cultivate a healthy virtual asset ecosystem.Awards since 2008The Cyber Security Awards were established in 2008 to recognize and honor those making significant contributions to cyberspace security. The awards not only motivate cyber police officers but also aim to bolster collaboration between the police and the private sector.This year, 27 distinguished individuals — including police officers, civil servants, and ordinary citizens — were recognized at the ceremony held on October 19 in Songdo Convensia, Incheon. They received commendations and certificates of appreciation for their contributions in areas ranging from cybercrime investigation and prevention to digital forensics.