U.S.-sanctioned Huione Group suspected of supporting crypto transactions in Korea

HashKey Launches Wealth Management Service Amid High DemandHong Kong-based HashKey Group, a leading financial technology company in Asia, has launched Hashkey Wealth, a wealth management service in response to significant demand from investors looking for exposure to the digital assets market.©Pexels/Tima MiroshnichenkoPortfolio diversificationWith the increasing adoption of cryptocurrencies and digital assets, many investors are seeking ways to diversify their portfolios and gain exposure to this emerging asset class. HashKey’s wealth management service provides investors with access to a wide range of digital assets, including Bitcoin, Ethereum, and other cryptocurrencies, as well as alternative investments such as non-fungible tokens (NFTs) and decentralized finance (DeFi) projects.The wealth management program is designed to meet the needs of both institutional and individual investors. It offers a variety of investment strategies, ranging from passive to actively managed portfolios, with different risk profiles to suit investors’ preferences. The program also provides a range of services, including custody, trading, and portfolio rebalancing, to ensure that investors can manage their investments with ease.Established track recordHashKey has a strong track record in the digital asset market, having launched its own cryptocurrency exchange in 2018 and a blockchain accelerator program in 2019. The company has also established partnerships with leading players in the industry, such as Huobi, to expand its reach and provide investors with access to a wider range of investment opportunities.In a statement, HashKey Group CEO, Deng Chao, said, “We are excited to launch our wealth management service and provide investors with access to the emerging digital asset market. Our goal is to provide investors with a range of investment options and strategies to meet their needs, while also providing them with the tools and services they need to manage their investments effectively.”Growing interest in digital assetsThe launch of HashKey’s wealth management service comes at a time of increasing interest in digital assets from both institutional and individual investors. With the market for cryptocurrencies and other digital assets expected to continue to grow in the coming years, it is likely that demand for wealth management services in this space will also continue to increase.Additional servicesThe company also gained approval from Hong Kong’s Securities and Futures Commission (SFC) for a Type 9 asset management license which allows it to manage portfolios that are entirely invested in digital assets.Hashkey PRO, its regulated virtual asset exchange, is due to launch in Q2, 2023. In order to facilitate this, the firm has gained SFC approval for both a Type 1 license which covers dealing in securities and a Type 7 license which enables the provision of automated trading services.Overall, the launch of HashKey’s wealth management service and its virtual assets exchange is a positive development for the digital asset market, as it provides investors with a range of investment options and strategies to suit their needs. With the company’s strong track record in the industry and its commitment to providing investors with high-quality services and solutions, it is well-positioned to capitalize on the growing demand for digital asset investments.

OKX Entering Indian Market With a Focus on Web3Cryptocurrency exchange OKX is gearing up to make its presence felt in the Indian market.Local recruitmentThat’s according to a discussion between a company executive and CoinDesk, as explained by the publication in a report published on Friday. The firm plans on recruiting local employees in its endeavor to conquer the market within the world’s most populous nation.OKX intends to rely on local employees who will spearhead its initiatives in the country. Haider Rafique, Chief Marketing Officer at OKX explained:“We’re trying to identify who’s who in the zoo and what is their contribution. There’s a large developer community. How do we help them? Build a relationship with them.”He believes that adopting a community-centric approach will pave the way for a successful entry into the local market. Rafique emphasized:“We’re going to learn about the community. We’re going to work with local folks — figure out where we can add value.”Photo by Naveed Ahmed on UnsplashFocusing on Web3 applicationsThe company also intends to take on the challenge by placing emphasis on the use of Web3 applications. Rafique revealed the company’s ambitious plans to scale up its wallet services “exponentially” by engaging with India’s developer community. Currently, there are approximately 200,000 OKX Wallet users in India, accounting for just 5% of the country’s Web3 user base.In a recent collaboration, OKX partnered with the blockchain platform Neo for an APAC Hackathon held in Bengaluru, a city in southern India. Rafique described this move as a strategic test to validate assumptions, understand the local culture, and support the burgeoning Web3 ecosystem.The global exchange already has a physical presence in world centers such as Hong Kong, Singapore, Dubai, and the Bahamas.Indian crypto environmentTrading cryptocurrencies is currently legal in India, albeit with no established regulatory framework by a central authority. Ironically India has been very active in working towards the establishment of global regulatory standards relative to crypto while coming in for criticism from its Supreme Court recently for the government’s failure to provide regulatory clarity at home.Cryptocurrencies are used and traded at the investor’s risk in India and do not hold legal tender status for banking purposes. Additionally, a 30% tax is imposed on cryptocurrency transactions in the country.Rafique believes that Indian regulators are gradually distinguishing Web3 from centralized finance (CeFi). He remarked: “They’re more concerned about venues that have fiat on-ramps, which we do but don’t offer it in India.” He expressed a readiness for the company to become a front-runner once India establishes a regulatory framework for cryptocurrencies.It’s interesting to note that while OKX embarks on expanding its footprint within the Indian market, Indian crypto market incumbents have been looking to downsize. Indian cryptocurrency exchanges like CoinSwitch and CoinDCX have faced layoffs amid the current market downturn.Notwithstanding current market conditions, it’s likely that OKX is taking a long-term view and positioning itself for future success in what should be a very important crypto asset marketplace in the future.Ryan Selkis, CEO and Founder of crypto market intelligence firm Messari expressed this view, stating: “I love to see companies like OKX expanding in India. The largest democracy in the world should be a haven for crypto innovation in the years to come.”

Korea’s FSC Embarks on Developing Regulatory Framework for VASPsThe South Korean Financial Services Commission (FSC) has taken a step towards the development of a virtual asset regulation system by seeking external parties to undertake a research project in this area, according to local news agency News1.Photo by Joshua Miranda on PexelsSecond phaseEarlier this month, the National Assembly passed the Virtual Asset User Protection Bill, aimed at protecting investors and preventing unfair trading practices. This legislative accomplishment, scheduled to go effective in July next year, is referred to as the “first phase” of virtual asset regulations. Building upon this foundation, the FSC has now shifted its focus to the “second phase,” which involves the regulation of virtual asset service providers (VASPs).Regulating VASP operationsOne primary concern regarding VASPs is the potential for conflicts of interest arising from their involvement in the issuance and distribution of virtual assets. In response, the FSC is determined to design a regulatory framework that covers a wide range of virtual assets, including stablecoins, security tokens, and utility tokens.In addition to this, the FSC intends to establish a system that governs advisory and disclosure businesses, which will play a crucial role in disseminating information about asset prices and disclosures.Moreover, the regulatory system will include guidelines for holding parties accountable in case of incidents and for overseeing the operations of VASPs to maintain a safe and fair market environment.The FSC acknowledges the significance of aligning policies with international standards. To achieve this, the commission will conduct an examination of virtual asset regulatory approaches taken by different countries and international organizations. Through this study, the FSC aims to integrate global best practices and approaches into Korea’s own regulatory framework for virtual assets.Once the study is complete, the FSC has to report the result to the National Policy Committee of the National Assembly by July 2024 before the Virtual Asset User Protection Bill goes into effect.