South Korean police boost crypto team in fight against drug trade

Hana Bank to Establish Joint Digital Asset Custody Venture with BitGoSouth Korean commercial bank Hana Bank announced on Tuesday at Impact, the main event of Korea Blockchain Week (KBW) 2023, that it has signed an agreement with US-based digital asset trust company BitGo to undertake a joint venture for digital asset custody services in Korea.Photo by Chris Liverani on UnsplashBitGo’s Korean branch aims to kick off full-fledged operations for the venture in the second half of next year after obtaining Information Security Management System (ISMS) certification and completing registration as a virtual asset service provider (VASP).Fostering transparency and securityThe two entities will collaborate through multiple approaches, such as considering equity investments in the joint venture, working together on BitGo’s security solutions and digital asset custody technology, and leveraging Hana Bank’s expertise in financial services, security, and compliance. The scope of the partnership will expand as time goes on, they said.“By working with a global leader, we will contribute greatly to the enhancement of confidence in the Korean digital asset market as well as consumer protection,” Hana Bank said.BitGo’s ongoing global expansionBitGo has been offering digital asset custody services to institutional clients since 2013, serving over 1,500 institutions in more than 50 countries, including the US, Switzerland, and Germany. It also provides custodial services for over 700 different digital assets, including Bitcoin.“We aim to establish a long-term foundation in the Korean market, in line with the expected growth of the security token market there,” said Mike Belshe, CEO and Co-Founder of BitGo.

Crypto.com Complies with UK FCA’s New Digital Asset RulesWhile some Asian crypto platforms are struggling to comply with the United Kingdom’s Financial Conduct Authority (FCA) regarding new marketing-related rules that took effect on October 8, Singapore’s Crypto.com has confirmed its successful compliance. The firm is registered as FORIS DAX UK LIMITED on the FCA website.Photo by Paul Fiedler on UnsplashContinuing support for UK customersAs a result, UK customers can continue to access Crypto.com’s products and services without disruption. The company emphasized its commitment to strengthening its platform and presence in the UK market. Crypto.com stated that it fully supports measures aimed at enhancing consumer safety and security in the cryptocurrency industry. The company also expressed its ongoing cooperation with UK and international regulators to foster consumer confidence in the crypto sector.Effective from October 8, the FCA’s updated guidelines mandate that all crypto firms marketing their services to UK consumers must register with the FCA and adhere to relevant standards concerning risk disclosures and marketing practices.Regulatory compliance challengesWhile Crypto.com has managed to remain compliant, that’s not the case for all large and well-known crypto platforms. The FCA recently expanded its scrutiny of digital currency exchanges by adding Huobi and KuCoin to its list of unapproved and unregistered firms.The FCA alerted clients to the fact that these service providers were offering various crypto services in the UK without obtaining regulatory approval. This development follows a recent warning from the FCA, which highlighted several other crypto-focused companies.Binance’s compliance difficulties2023 has seen global crypto platform Binance struggle with regulatory compliance in various markets worldwide. In some jurisdictions where it has either decided to withdraw from the market or been asked to leave, the firm has taken the approach of still maintaining exposure to that market by establishing a partnership with a locally registered firm.In the UK, Binance has partnered with Rebuildingsociety.com, a peer-to-peer lending platform. However, its local partner has fallen foul of the UK's FCA. On Tuesday, the UK regulator issued a notice clarifying that Rebuildingsociety.com was not authorized to “approve the content of any financial promotion for a Qualifying Cryptoasset for communication by an unauthorized person.”Dubai-headquartered crypto exchange Bybit is another crypto business that has struggled with the FCA's new regulatory requirements. Last month the exchange denied reports that it was preparing to leave the UK market due to the new strict marketing rules. The following week the exchange confirmed that it would be leaving the UK market, ahead of the introduction of the new crypto marketing regulations.Crypto.com had received registration approval from the FCA in August 2022. At the time, CEO Kris Marsazalek stated:“We are committed to the UK market and we look forward to developing our platform and presence in the UK further by expanding our offering to customers, while continuing to work with regulators.”In June, the firm acquired a Major Payment Institution (MPI) license in its home market of Singapore from the Monetary Authority of Singapore (MAS). Around the same timeframe, the firm received a minimum viable product (MVP) license from the Virtual Assets Regulatory Authority (VARA) in Dubai.

Laos targets crypto operators’ unpaid feesIn a bid to enhance state revenues, Laos has turned its focus to the cryptocurrency sector, revealing that operators in the country owe a total of $20 million in fees. The announcement, reported on Thursday by Chinese state news agency Xinhua News, references information from the Lao People’s Army News.Photo by Alessio Roversi on UnsplashLoss-making mining activityLaos had previously granted authorization to 15 blockchain companies to engage in crypto mining or operate as exchanges as part of a strategy to diversify government income sources. However, Prime Minister Sonexay Siphandone disclosed that two of these companies showed no progress in their operations, while others lagged behind in meeting their financial obligations to the state.It emerged in August that the national electricity supplier, Electricité du Laos, had decided to suspend the supply of energy to crypto miners amid a perfect storm of challenges. Laos has ample hydro electric resources and is a net exporter of electricity. However, a drought this year has challenged it to honor contracts for supply of electricity to the Electricity Generating Authority of Thailand.To deal with this issue, power supply to Laotian crypto miners was suspended. To compound matters, many mining operators have been struggling financially and were unable to pay their bills.Debt reliefSiphandone mentioned that since the government initially set the tax obligations, the overall value of cryptocurrencies has experienced a 50% decline. Consequently, Laos has decided to alleviate the burden on crypto companies by reducing the outstanding balance by an equivalent 50%.Following this decision, the affected companies have commenced the settlement of their fees, and it is anticipated that all outstanding amounts will be fully resolved by the year’s end, according to the country’s Prime Minister. However, he issued a cautionary note, stating that companies failing to make satisfactory progress would face consequences, including the suspension of their operations, imposition of fines or even the revocation of their licenses.Digital transformationIn May, Laos outlined key aspects of its digital transformation strategy, emphasizing the use of digital technology to generate new fiscal revenue, strengthen foreign exchange reserves, control inflation, and promote sustainable economic growth. The move to reduce crypto companies’ tax burdens amid market volatility underscores Laos’ adaptability to the challenges presented by the dynamic cryptocurrency landscape.As part of its digital transformation strategy, the Laotian government signed a cooperation agreement with Singapore’s MetaBank. Partnering with another overseas entity, the country has also relied upon the expertise of Japanese fintech developer Soramitsu with regard to a central bank digital currency (CBDC). Soramitsu has played a pivotal role in enabling the issuance of Laos’ Digital Lao Kip.Early last year, the landlocked Southeast Asian country authorized trading licenses for two crypto platforms. These included Lao Digital Assets Exchange (LDX), a joint venture between Phongsupthavy Group and AIF Group, and Bitqik, a subsidiary company of Simuong Group.