Naver confirms ad takedowns for unregistered crypto platforms as rules are refined

Suspects emerge in Taiwan in ongoing JPEX scandal falloutIn the ongoing saga surrounding the collapse of Dubai-headquartered cryptocurrency exchange JPEX, Taiwanese prosecutors have identified new suspects, marking a significant development in the case.The Taipei District Prosecutors Office (TDPO) has requested the custody of Chang Tung-ying, chief partner at JPEX’s Taiwan office, over allegations of fraud. That’s according to a report by local TV channel TVBS News on Thursday.Photo by Ricky Zeng on UnsplashMoney laundering and Banking Act violationsThis latest development brings a new twist to the scandal, which has largely been playing out in the Chinese territory of Hong Kong. The TDPO reportedly conducted searches at nine locations linked to the JPEX investigation. Chang, along with three other individuals, including JPEX lecturer Shih Yu-sheng (also known as Shi Yu), was summoned by the authorities. Chang and Shih are being investigated for violations of the Banking Act and the Money Laundering Control Act.During the investigation, JPEX salespersons Liu Chien-fu and Niu Keng-sheng were released, with Liu being granted bail of 50,000 New Taiwan dollars ($1,550). Niu, the registered person in charge of JPEX Taiwan, was released after questioning.Celebrity promoter focusThe report also revealed that Nine Chen, a Taiwanese celebrity and singer who previously served as a brand ambassador for JPEX, was summoned by prosecutors. He has cooperated with law enforcement in the role of a witness to the alleged fraud who has testified to illicit activity carried out by the platform. However, it is now understood that recent events have developed such that Chen is now being treated as a defendant.This action resonates with actions taken by the authorities in Hong Kong some weeks ago in the earlier stages of investigation into this affair. In September, one of the first actions taken by Hong Kong law enforcement was the arrest and detention of social media influencer and former lawyer Joseph Lam, known to followers as “Jolamchok” on the Instagram platform.Alleged liquidity crisisJPEX, once a successful crypto exchange, abruptly halted some services in mid-September, citing a liquidity crisis triggered by alleged “unfair treatment” from institutions in Hong Kong. The sudden implosion led to accusations of misleading investors regarding the application for a crypto trading license and other issues.The scandal surrounding JPEX has escalated into a major industry concern, prompting investigations by Hong Kong authorities. Over 2,000 complaints from JPEX users, reporting losses of nearly $180 million, have triggered significant regulatory attention.As investigations progressed in Hong Kong, the authorities took the decision to block access to the platform, with the platform responding by advising customers to circumvent this restriction through the use of a virtual private network (VPN).As of September 25, law enforcement has arrested at least 11 alleged suspects in the JPEX case, while the alleged masterminds remain at large. At that time, Hong Kong’s Securities and Futures Commission (SFC) pledged to renew its efforts to combat unregulated crypto platforms in Hong Kong.A survey conducted by the Hong Kong University of Science and Technology (HKUST) business school has indicated that the affair has had a negative impact on public sentiment towards crypto more recently.

Coinbase Affirms Commitment to India Despite Disabling Sign-UpsLeading US-based cryptocurrency exchange Coinbase announced on Monday that it has temporarily disabled new user sign-ups for its exchange platform in India.A report emerged via India’s English-language business daily The Economic Times on Monday which stated that Coinbase was stopping “all services” for Indian users.Photo by Big G Media on UnsplashClarification of a misunderstandingIt appears that Coinbase sent emails to a subset of its Indian customers, notifying them of the cessation of exchange operations in the country by September 25. However, a more recent report by TechCrunch outlined that Coinbase has provided further clarification that these emails were sent exclusively to customers who did not meet the updated standards set by the company.On that basis, these messages do not affect and are not relevant to the majority of Coinbase users in India. The email further advised affected users to transfer their funds from the platform by the specified date.A Coinbase spokesperson communicated to TechCrunch via email, stating:“We stopped allowing new user sign-ups on our exchange product in India back in June of this year. We maintain a robust tech hub in the country and offer live products, including our Coinbase Wallet. We are committed to India over the long term.”Coinbase’s proprietary exchange app in India reportedly boasts fewer than 50,000 monthly active users, as indicated by data from Sensor Tower, shared by an industry executive.Difficulty in cracking Indian marketDespite its aspirations, Coinbase has been unable to make headway with local authorities since launching its exchange in India over a year ago. The lack of progress with local officials has proven frustrating for company executives, including Durgesh Kaushik, who joined Coinbase last year as the Senior Director for Market Expansion, only to leave the company within a couple of months.Coinbase’s CEO, Brian Armstrong, made a visit to India last year to launch the exchange service by adding support for India’s popular payment instrument, the Unified Payments Interface (UPI). Unfortunately, the body overseeing UPI immediately denied Coinbase’s recognition, leading Coinbase to suspend support for the payment system shortly thereafter.UPI has proven to be a runaway success in India. Consequently, being able to access and integrate with it would be very important in providing Coinbase’s Indian customers with the means of on-ramping and off-ramping between the exchange and fiat currency. Coinbase affirmed its commitment to collaborating with the National Payments Corporation of India (NPCI) relative to UPI but these efforts simply have not borne fruit.RBI pushbackIn May of the same year, Armstrong disclosed that Coinbase had to halt its trading service in India due to “informal pressure” from the Reserve Bank of India (RBI), the nation’s central bank. Armstrong pointed out that cryptocurrency trading isn’t illegal in India — in fact, the country had recently imposed taxation on it. However, there were elements within the government, including the RBI, that appeared less enthusiastic about cryptocurrencies and were exerting “soft pressure” behind the scenes.Notably, other Indian cryptocurrency exchanges like CoinDCX and CoinSwitch remain operational, but they’ve had their own struggles in their own local market. In August CoinSwitch downsized its headcount, citing a 30% tax on crypto gains and a 1% tax deducted at source (TDS) on transactions as contributing factors. That same month, CoinDCX cut its headcount by 12%.

LINE NEXT, the U.S.-based Web3 subsidiary of LY Corporation, has launched its global stablecoin wallet, Unifi. The service is now publicly available through the LINE messaging app.Photo by Shubham Dhage on UnsplashThe platform consolidates core stablecoin operations—including deposits, storage, payments, and transfers—into a single interface. Users can onboard using existing social logins from LINE, Google, Naver, or Apple. At launch, Unifi only supports USDT, with plans to integrate additional stablecoins in the future. The service currently offers an annual percentage yield of 4% to 5% on deposited assets.  Non-custodial wallet integrates stablecoins into LINEDesigned as a non-custodial wallet, Unifi enables users to retain control over their private keys and manage their own assets. The platform also supports direct fiat conversions. Through a partnership with fintech firm SentBe, Unifi utilizes an off-ramp solution from Triple-A, a Singapore-licensed Digital Payment Token provider, enabling users to convert and withdraw stablecoins directly to personal bank accounts. To expand the wallet's utility, LINE NEXT has integrated its existing Dapp Portal and Mini Dapps into the Unifi ecosystem. This allows users to spend stablecoins across various gaming, social, and content applications, as well as earn rewards through in-app activities. The rollout follows a January memorandum of understanding (MOU) between LINE NEXT and JPYC Inc., the issuer of the yen-pegged stablecoin JPYC, to explore broader stablecoin integration and regional use cases. PayPay seeks U.S. IPO after Binance betLY Corporation is expanding its presence in financial services through another subsidiary, PayPay, which has been moving into the crypto sector. According to a report cited by CoinDesk, PayPay is preparing for a listing on the Nasdaq and is seeking a valuation of more than $10 billion. The company plans to price its shares between $17 and $20 and issue 55 million shares, potentially raising up to $1.1 billion. The proposed ticker symbol is PAYP. In October last year, PayPay acquired a 40% stake in Binance Japan, expanding its presence in the digital asset market. The initial public offering had been scheduled for March 9 but was postponed amid market volatility linked to developments in Iran. Separately, Japanese-listed firm Metaplanet, which has been accumulating Bitcoin, has not purchased additional BTC for eight weeks, according to an X post by SoSoValue. According to its fiscal 2025 earnings report, the Japanese company posted a net loss of 95 billion yen ($605 million) for the year, while generating revenue of 8.9 billion yen ($58 million). The firm currently holds 35,102 BTC at an average purchase price of $107,716 per coin. With Bitcoin trading slightly below $70,000, the holdings imply an unrealized loss of about $1.32 billion, or roughly 35% below the average acquisition cost.