China deepens crackdown on crypto and real-world asset tokenization

As cryptocurrencies continue to captivate South Korea, the world of ordinary digital asset investors is set for its primetime debut. Today, major broadcaster MBC is scheduled to premiere “To the Moon,” a new television drama that explores the risks and rewards of crypto investing. In crypto slang, “to the moon” refers to expectations of a sharp price surge, a phrase often used by traders to signal bullish sentiment. The series, airing Fridays and Saturdays, is an adaptation of Jang Ryujin’s 2021 novel of the same name, with an English edition released on June 19 of this year. It chronicles the lives of three young women who, despite landing what most would consider solid positions at a confectionery company, find their ambitions stifled by economic realities. Confined to small studio apartments and seeing little room for advancement, they turn to the volatile world of cryptocurrency as their pathway to upward mobility. The publisher describes these burnt-out protagonists’ journey as one that oscillates between humor and despair.Photo by Kanchanara on UnsplashEthereum’s rally and rising optimismIn the original novel, the plot is ignited when one of the women achieves a significant windfall by investing in Ethereum (ETH), inspiring her colleagues to join the fray. What follows is a familiar tale for many investors. They experience a period of wild price swings and respectable profits, only to see their winning streak abruptly halted by a severe market downturn. At the time the book was published in April 2021, ETH traded at roughly $2,100. Today, by contrast, CoinMarketCap data shows the asset trading at $4,543.14, more than doubling since the book’s release. Support for this bullish outlook comes from well-known market voices. Tom Lee, Fundstrat founder and chairman of ETH treasury firm Bitmine, told CNBC that Ethereum (ETH), Bitcoin (BTC), and the Nasdaq 100 would benefit most if the Federal Reserve cut rates, predicting a strong rally in the next three months. He made these comments before the Fed’s actual move, a quarter-point rate cut announced at its Sept. 17 Federal Open Market Committee (FOMC) conference. In a separate Fox Business interview, VanEck’s CEO echoed this view, saying ETH will emerge as the leading asset as banks adopt blockchain for stablecoin transactions. Data also points to growing strength. According to Token Terminal, the supply of Ethereum-based stablecoins has recently reached an all-time high of $168 billion. This milestone is largely attributable to the fact that over half of the entire stablecoin supply now operates on the Ethereum network, underscoring its foundational role in the digital economy. Talent drain and security risksStill, there are headwinds that could slow Ethereum’s ascent. A recent survey by Protocol Guild, an independent funding group for Ethereum core developers, revealed a compensation gap that threatens the network's long-term health. The survey found that Ethereum core developers are receiving external job offers with a median salary of $300,000—more than double the $140,000 median they currently earn for maintaining and upgrading the network. Protocol Guild has noted that this disparity could precipitate a talent exodus, potentially slowing future development. Security has been an ongoing concern, with ETH often targeted by hackers. In a reminder of the sector's vulnerabilities, the crypto exchange Bybit reported a theft of 401,000 ETH in February, an amount valued at roughly $1.5 billion at the time. The U.S. Federal Bureau of Investigation later identified the exploit, one of the largest in crypto history, as the work of the North Korean hacker known as “TraderTraitor.” "To the Moon" is set to air at a time when its themes of innovation and risk are playing out in the real world of crypto. The industry is riding a wave of institutional adoption and high valuations, but it's also facing a talent crunch and security concerns. These dynamics continue to keep digital assets on investors’ radar in South Korea and beyond. 

A crypto wallet reportedly tied to the multinational banking giant DBS Bank holds over 170,000 Ether, valued at nearly $650 million. Reporting on the matter subsequently prompted DBS to make a denial of any links to the wallet.Photo by Kanchanara on UnsplashClaim asserted, claim deniedOn May 30, blockchain analysis firm Nansen caused some excitement when it took to X, flagging a particular wallet address, identifying it as belonging to an Ethereum whale, taking matters a step further in asserting that the wallet belonged to Singaporean bank, DBS Bank. The submission of securities reports to the Securities and Exchange Commission (SEC) recently by many large corporates led to disclosures from some within traditional finance in the United States of Bitcoin holdings via the spot Bitcoin exchange-traded fund (ETF) products which had been approved earlier this year. A substantial holding of ETH by Singapore’s biggest bank would have been a significant boost for proponents of Ethereum. However, DBS Bank promptly refuted these claims. A spokesperson for the bank subsequently issued a statement to Cointelegraph and Decrypt, stating: "In relation to the post, DBS does not have this position on our books."  Claim not retractedFor its part, Nansen has not retracted its claim. In response to Decrypt, Nansen analyst Edward Wilson stated:"We have it under good authority, via several independent sources, that DBS owns the private key of this wallet and these assets are most likely a part of their custody solution." Wilson told Cointelegraph that it had obtained this information from “a good source,” going on to state: “This is similar to how we see institutions, both crypto-native like exchanges such as Binance or Coinbase custody funds on behalf of their users and non-crypto-native custody funds. The institution is the custodian and is responsible for managing the security of the funds.” The Nansen analyst expressed even more confidence in the claim in response to CryptoSlate. Wilson stated:“Nansen is 100% sure this belongs to DBS – DBS owns the private key of this wallet and these assets are most likely a part of their custody solution.” DBS’s foray into crypto servicesIn 2020, DBS Bank unveiled a crypto trading and custody service, including a platform for conducting security token offerings. At that time, DBS Exchange clarified that while the exchange itself would not hold any assets, it would provide custody services to investors. Since launching its crypto division, DBS Bank has seen significant success. In 2023, DBS reported an 80% growth in Bitcoin trading volume, attributing this surge to the crypto market turmoil of 2022. In February of this year, the Singaporean bank moved to integrate its digital asset exchange business into a new global financial markets unit. In April 2023, DBS opened a branch of the bank on the metaverse. It demonstrated its Web3 credentials further in August 2023 by introducing a metaverse game to tackle the issue of global food waste.

One of South Korea's prominent cryptocurrency exchanges, Bithumb, has doubled down on its effort to solidify its position as a leading crypto trading platform in the country. Bithumb has recently announced its policy to offer the lowest withdrawal fees among all local crypto exchanges, while enhancing its user experience by upgrading the user interface (UI) and adding more features to its app, according to the local media outlet Kyunghyang Games.  Already one of the few qualified fiat-to-crypto exchanges in Korea and a member of Digital Asset eXchange Alliance (DAXA) – a consultation group of the top five local crypto exchanges – Bithumb aims to further strengthen its competitiveness in the market. Photo by Traxer on UnsplashLower withdrawal fees with trading fees already at 0.04%According to the press, Bithumb has announced to offer the lowest withdrawal fees in the local crypto scene to win the hearts and minds of investors. Under the updated fee policy, users are now charged 0.0008 BTC for withdrawing Bitcoin and 0.009 ETH for Ether. The exchange has also been known for offering one of the lowest trading fees at 0.04%.  Making the deposit limit increase easierBithumb has long been getting complaints from users over its relatively unfavorable user experience and cumbersome processes required to increase the deposit limit of their real-name accounts. In response, Bithumb has introduced a new in-app feature that simplifies such procedures, so that users can raise their deposit limit with ease.  Among users who joined Bithumb in March, those whose initial deposits have passed 30 days and who purchased crypto assets valued at over KRW five million ($3,700), are now eligible for the deposit limit raise, allowing them to deposit and withdraw up to KRW 500 million per day.  Enhanced user interface and user experience One of the newly added features is the "Even Faster Chart," which provides users with four times faster response times following its transition from "Web view" to "Native view."  Bithumb's Chief Operating Officer (COO), Moon Seon-il, stated that the exchange is improving its service in multiple ways, including offering the lowest fees, supporting multichain transactions and enhancing UI for users.