Aurora Mobile & VMS Group to invest in crypto

During a National Policy Committee audit, South Korean lawmakers pressed financial regulators on their oversight of the domestic crypto market, focusing on Binance’s acquisition of local exchange Gopax, risks from order-book sharing with foreign platforms, and weaknesses in anti–money laundering (AML) controls.Photo by Kanchanara on UnsplashQuestions over Gopax compensationAccording to Kuki News, Democratic Party lawmaker Min Byeong-dug has urged regulators to reach out to Binance for details on its plan to compensate Gopax creditors following its acquisition of the local exchange. One of the nation’s five fiat-to-crypto exchanges, Gopax suspended withdrawals from its GoFi service, a yield-bearing product, in November 2022 after the collapse of the Bahamas-based FTX crypto exchange and the bankruptcy of Genesis, a U.S.-based crypto financial services firm. Citing investor losses estimated at 10 billion to 50 billion won (about $7 million–$35 million), Min said Binance had agreed to cover the shortfall as part of its cashless acquisition of Gopax, but full repayment to Korean users remains unresolved. He noted that the deal had faced delays due to concerns raised by the Financial Services Commission’s (FSC) Financial Intelligence Unit (FIU) over Binance’s eligibility as a major shareholder, and urged the FSC and FIU to ensure a clear and timely resolution for affected investors. Concerns over order-book sharingPeople Power Party (PPP) lawmaker Lee Heon-seung raised additional concerns about order-book sharing tied to the Binance–Gopax deal, warning it could create regulatory blind spots. According to Dailian, he asked the FIU about risks such as possible gaps in AML oversight at foreign exchanges and the potential exposure of Korean user data. FIU head Park Gwang said inadequate AML systems at overseas platforms can hinder fund tracing. He noted that separate approval is required before a domestic exchange can share its order book with a foreign platform, adding that no such request was under discussion. Park said the FIU would closely examine the matter and ensure protection of personal data. Lee also questioned how effectively regulators can supervise the crypto market given its scale, pointing to the Bithumb exchange as an example, where he had raised similar concerns about order-book sharing. Bithumb serves about 3.8 million users and records roughly 605 trillion won (approximately $426 billion) in annual trading volume. He said order-book sharing with major global exchanges such as Binance could complicate AML compliance, data protection, and regulatory oversight, and called for stronger enforcement. In response, Park said that the agency would ensure proper supervision to address these risks. Allegations of AML loopholes and illicit useAnother PPP lawmaker, Kim Jae-sub, flagged a potential AML loophole involving Binance, saying the exchange had allegedly been used by Cambodia’s Prince Group, which is linked to fraudulent schemes to conceal illicit funds. Last week, the U.S. Department of Justice filed a civil forfeiture complaint to seize roughly 127,271 Bitcoin linked to Prince Group’s operations, marking the largest seizure in its history. Kim also cited past allegations connecting Binance to illicit transactions involving Hamas and North Korea, and said the exchange’s founder faces related charges. He urged the FSC to conduct a thorough examination to determine the extent of any involvement if the claims prove accurate. As the parliamentary audit continues, lawmakers from both parties are pressing regulators to clarify standards, tighten oversight, and prioritize investor protection while maintaining fair and predictable rules for market participants. 

Japan’s Financial Services Agency (FSA) plans to ban insider trading in the cryptocurrency market, according to an Oct. 15 report in Nikkei, cited by CoinPost. The forthcoming rules would amend the Financial Instruments and Exchange Act to explicitly bar trading based on nonpublic information, with violators subject to administrative fines.Photo by Louie Martinez on UnsplashTightening oversight through the SESCThe FSA intends to hammer out the details through a working group by year’s end and aims to submit a bill amending the securities law during the 2026 ordinary session of the Diet. Under the proposal, the Securities and Exchange Surveillance Commission (SESC) would gain authority to investigate suspected violations and could recommend fines or criminal charges in cases of alleged insider trading. Experts say Japan’s system of self-regulation, led by cryptocurrency exchanges and the Japan Virtual and Crypto Assets Exchange Association (JVCEA), lacks sufficient data monitoring. The government hopes that granting the SESC oversight of crypto transactions will help ensure fairer trading and make the market more attractive to investors. The new rules would target the use of confidential information, such as advance knowledge of a token listing or a major security flaw. Yet applying insider-trading standards to crypto may prove difficult. Many tokens have no clear issuer, making it harder to determine whose information could move markets or who should be held accountable. Crypto investing has surged in Japan, with domestic trading accounts quadrupling in five years. The FSA now aims to update its rules to reflect that digital assets are traded mainly as investments, not as payment instruments. Leadership transition brings policy uncertaintyJapan’s plan to strengthen oversight of cryptocurrencies coincides with a period of political transition. Prime Minister Shigeru Ishiba has announced his intention to step down but remains in office for now. According to CNBC, Sanae Takaichi, newly elected president of the ruling Liberal Democratic Party (LDP), would typically be expected to assume the premiership, but the coalition’s collapse has upended what would otherwise be a routine transition. The parliamentary vote to choose Japan’s next leader, initially slated for Oct. 15, has been postponed to Oct. 21. In the wake of the split, the main opposition Constitutional Democratic Party (CDP) is reportedly seeking Komeito’s support for a joint prime ministerial candidate. Yuichiro Tamaki, leader of the Democratic Party for the People (DPP), is seen as a potential consensus choice. The ruling LDP currently holds 196 seats in the lower house, but a united opposition could command a larger bloc. Tamaki has also drawn attention in crypto circles. About a year ago, he proposed cutting taxes on cryptocurrency gains to 20%, a flat rate similar to that on stock profits, during his campaign against Ishiba. At present, crypto gains in Japan are classified as miscellaneous income and taxed at progressive rates that can exceed 50% when local levies are included. Metaplanet’s Bitcoin strategy tested amid market shiftsAgainst that backdrop, Metaplanet, often dubbed Japan’s answer to the U.S. firm Strategy for its aggressive Bitcoin (BTC) accumulation, is under pressure as its valuation slips below the value of its crypto holdings. The company’s market-to-BTC net asset value (mNAV) ratio fell to 0.99 on Oct. 14, dropping below 1 for the first time. The metric compares the company’s market value with its BTC holdings, and a reading below 1 means the stock is trading at a discount to its BTC reserves. The decline comes after Metaplanet paused BTC purchases for the past two weeks. As of Oct. 1, the company held 30,823 BTC on its balance sheet. 

HKX management has advised Hong Kong resident users of the platform to withdraw assets following the company’s decision to halt operations in Hong Kong.  The company publicized its decision on July 18, making the following statement on its website: “We would like to inform you that our management team has, after careful consideration, decided to withdraw our application for the Type 1 and Type 7 licenses under the Securities and Futures Ordinance (Cap. 571) and the virtual asset service provider license under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615).”Photo by Zhe ZHANG on UnsplashCompliance strugglesHKX’s exit from Hong Kong is the latest in a series of crypto exchange withdrawals from the Chinese autonomous territory. Other exchanges such as OKX, KuCoin, Gate.io and Binance had all bowed out back in May.  HKX initially applied for a Hong Kong license in February. However, like many others, the exchange failed to comply with Hong Kong’s regulatory requirements. While Hong Kong has been making a concerted effort to establish a regulatory framework and licensing system in order to create the conditions for it to become a crypto hub, it has also been grappling with making regulations strict enough to stamp out fraud in the wake of the JPEX exchange scandal. With that, it appears that many exchanges are finding the regulatory requirements difficult to live with. Originally, 24 exchanges had applied for a virtual asset trading platform (VATP) license. As it stands today, 12 of those original applicants have dropped out, with one more having its application returned with no clarity emerging as to the reason why. HKX has suspended new user registrations. The company’s management has not suggested that they will reapply for a license and reboot the service at a later stage. The company had flagged its intentions back in May, suspending trading and deposit services on May 29. OKX announced on May 24 that it was withdrawing from the Hong Kong market, citing a review of its business strategy. Around the same timeframe, Gate.io withdrew from the market in Hong Kong having failed to achieve compliance in accordance with the new licensing requirements.  Notwithstanding that outcome, the firm suggested that it planned to revamp its platform in line with the Chinese autonomous territory’s licensing requirements, and return to the market once that had been achieved. In a notice posted to its website on May 22, it stated: “Gate.HK is actively working on the aforementioned overhaul. We plan to resume our business in Hong Kong in the future and contribute to the virtual asset ecosystem after obtaining the relevant licenses.” That overhaul has yet to be completed as right now, the platform only allows the withdrawal of funds by its previous Hong Kong-based customers. Back in May 2023, Eddie Yue, the CEO of the Hong Kong Monetary Authority, suggested that there would be no light touch regulation in Hong Kong. HashKey Exchange, alongside OSL, was the first business to secure licensing under the new framework. In April, HasKey CEO Livio Weng told the Financial Times that these regulations block access to overseas investors while the local market in Hong Kong isn’t very big. It emerged in recent weeks that Hong Kong regulators are reviewing whether crypto regulation is “excessively stringent.”