South Korea seeks power to freeze crypto accounts in price manipulation cases

Korean Firms Join Forces to Expand the Security Token MarketSouth Korean tech firm AIITONE announced today that it signed a memorandum of understanding (MOU) with real estate developer Korea Asset Development to expand security token businesses, according to a report by news agency Newsis.Photo by Shubham Dhage on UnsplashVentures into fintechAIITONE is renowned for its expertise in applying extended reality (XR) technology to smart defense and metaverse projects. In their latest strategic move, they have hired a blockchain tech group to venture into fintech sectors, with a specific focus on security tokens.Real estate expertiseKorea Asset Development, a real estate developer engaged in multiple projects nationwide, is currently involved in the development of upscale housing in Seoul and Busan, high-end residences in Songdo, as well as luxury resorts in Chungcheong and Gangwon Provinces.Through their collaborative endeavors, AIITONE and Korea Asset Development seek to capitalize on their respective technological expertise and knowledge. They plan to share their know-how and establish a comprehensive cooperation framework, specifically targeting content development associated with security tokens. Furthermore, both parties have committed to consistently exploring new areas of cooperation.Security token opportunitiesIn particular, the two companies have identified real estate due to its relatively easier valuation compared to other assets. The market for real estate security tokens in Korea is projected to reach 34 trillion KRW ($26 billion) by 2024. It is estimated that financial services, including real estate, account for approximately 70% of the total security token market size.AIITONE CEO Lee Jin-yup underlined the importance of cooperation with a range of players that bring diverse resources, considering that the security token market involves high-value tangible assets such as real estate, music, and artworks. He said the partnership with Korea Asset Development will help the company secure a competitive edge in the burgeoning real estate security token market.Development in JapanNot just South Korea, but other East Asian nations too are experiencing significant strides in the security token market. Japan serves as a case in point, with companies like Mitsui & Co. Digital Asset Management (Mitsui & Co. DAM) exploring the potential of this emerging market.Mitsui & Co. DAM last month introduced a platform that allows retail investors to access security tokens backed by real-world assets. This initiative opens up previously inaccessible investment opportunities to a broader range of participants.Moreover, the Tokyo Metropolitan Government has taken an active role in supporting security token businesses within its jurisdiction. From May 31, 2023, to February 29, 2024, the government runs a subsidy program for security token projects based in the capital city. Under this program, eligible businesses can receive subsidies of up to 5 million yen ($36,000) per project.

Yat Siu: Hong Kong’s Crypto Adoption Sanctioned by the MainlandIn a keynote speech at the Ethereum Community Conference (EthCC) in Paris on Wednesday, Yat Siu, Co-Founder of blockchain gaming and NFT firm Animoca Brands, shed light on Hong Kong’s rapid adoption of cryptocurrencies and Web3 technology, emphasizing its connection to developments unfolding in mainland China.Photo by Serey Kim on UnsplashDriven by the Chinese authoritiesSiu argued that the current crypto trend in Hong Kong signifies more than just the actions of the Chinese autonomous area itself, pointing to a larger agenda driven by China’s aspirations.According to Siu, the Chinese government’s release of its Web3 white paper in May, which positioned Web3 as the future of the internet, carries significant weight. Notably, this announcement came only days after Hong Kong revealed plans to allow retail crypto investments. Siu highlighted that even though China’s white paper did not explicitly mention cryptocurrencies, it is key to acknowledging the country’s commitment to advancing Web3 technologies.The news of Hong Kong’s crypto developments resonated throughout China, capturing attention even on China Central Television, the national TV channel. Siu underscored the broader implications of this coverage, suggesting that the developments in Hong Kong bear the imprint of higher authorities. He made it clear that any actions taken by Hong Kong would require the approval of China.Challenging US global hegemonyBeyond Hong Kong, Siu delved into the broader significance of Web3 as a tool to challenge the United States’ technological hegemony. He expressed concerns about the security risks associated with excessive reliance on tech giants such as Google, Apple, and Facebook. Siu argued that countries like Japan, Korea, and China view Web3 as an opportunity to break free from the dominance of US-centric technologies. This motivation is especially pronounced in China, which is actively pursuing de-dollarization.Reducing dependence on the US dollar represents a key factor driving the adoption of Web3 in these countries. Siu pointed out that the global currency’s position affords the United States significant power and influence, making it crucial for China and other nations to seek alternatives. Embracing Web3 technologies serves as a potential avenue for diminishing reliance on the US dollar and challenging the current financial status quo.While mainland China banned nearly all crypto activities in 2021, the country has remained one of the largest crypto-mining hubs worldwide, despite the prohibition. The proactive stance of Hong Kong in implementing crypto-friendly regulations has sparked hope that it could pave the way for China to eventually lift its long-standing ban.However, prominent figures within the Chinese establishment, such as CPIC Investment Management CEO Chenggang Zhou, have recently reiterated the country’s anti-crypto stance.The rapid adoption of cryptocurrencies and Web3 technology in Hong Kong provides a glimpse into broader developments unfolding in mainland China. Web3 is seen as a potent instrument for challenging US technological dominance, although whether that leads to China lifting its crypto ban is something that remains to be seen.

Hong Kong–listed companies are stepping up digital-asset bets as the city sets out a clearer rulebook, a sign that tighter oversight and new market rails are starting to unlock institutional demand.Photo by Ruslan Bardash on UnsplashCorporate moves signal rising appetiteBoyaa Interactive International has been adding Bitcoin (BTC) to its treasury, with the latest acquisition of 411 BTC bringing its total holdings to 4,091 BTC. The gaming company has said it will direct 90% of a planned $56.3 million rights issue into Bitcoin. Yunfeng Financial raised HKD 1.17 billion, or about $150 million, through a new share issuance and plans to use part of the proceeds to launch cryptocurrency trading and investment management services. The firm is associated with Yunfeng Capital, which was co-founded by Alibaba founder Jack Ma, and has previously outlined plans to accumulate BTC, Ethereum (ETH), and Solana (SOL). These moves land alongside a policy reset from the top. In his annual address on Sept. 17, Chief Executive John Lee reaffirmed Hong Kong’s goal of cementing its position as an international hub in finance, including digital assets, while pairing that ambition with stronger investor safeguards. Tokenization and blockchain testbedThe centerpiece is Project Ensemble, run by the Hong Kong Monetary Authority (HKMA). The initiative is building infrastructure for a tokenized market and operates a sandbox where institutions can test blockchain systems in live business settings. Priorities include tokenized bank deposits, settlement of tokenized assets such as money market funds, and standardized issuance of government tokenized bonds. Regulation is advancing in parallel. The government is preparing legislation for a licensing regime that covers stablecoin issuers as well as digital-asset dealing and custody providers. The Securities and Futures Commission is studying an expansion of products for professional investors, with tougher protections baked in. The regulator plans to use automated reporting and data surveillance to curb misconduct. Authorities also intend to deepen cross-border cooperation to combat tax evasion. Banking rules are set to shift as well. The HKMA has circulated draft guidance that would ease capital requirements for certain crypto exposures in line with Basel standards through a new policy module called CRP-1. Under the proposal, assets issued on permissionless blockchains could qualify for lower capital charges when issuers demonstrate effective risk management. Hong Kong aims to implement the international rules by early 2026.Publicly traded BTC treasury firms in China Source: BitcoinTreasuries.NETAdoption amid constraintsNot every institution will join the build-out. Mainland policies may constrain participation, according to Caixin. Chinese digital platforms, state-owned enterprises (SOEs), and financial entities operating in Hong Kong could face limits on stablecoin and other crypto activity. Branches of several SOEs and Chinese banks are also unlikely to seek a Hong Kong stablecoin license. Corporate adoption remains broad despite those headwinds. Publicly traded Bitcoin treasury companies in China and Hong Kong hold a combined 19,280 BTC, according to BitcoinTreasuries.net. Several appear among the top 50 public corporate holders worldwide, including Next Technology Holding (16th), Cango (18th), Boyaa (24th), Nano Labs (48th), and Ming Shing Group (50th). The tally points to rising regional interest in digital assets. Publicly traded BTC treasury firms in Hong Kong Source: BitcoinTreasuries.NET