Japan moves to curb unregistered crypto operators amid speculative concerns

Japan’s HashPort Group Raises $8.5M in Funding RoundHashPort, a leading blockchain developer based in Japan, has successfully raised 1.2 billion Japanese yen (approximately $8.5 million) in a Series C funding round.The funding was secured through key investors, including Sumitomo Mitsui Banking Corporation (SMBC), The University of Tokyo, Edge Capital Partners, and Japanese billionaire entrepreneur Yusaku Maezawa. With this latest infusion of capital, HashPort’s total funding has now reached an impressive 2 billion yen (about $14.2 million).Global expansion plansThe announcement, which was made on Friday, revealed that these fresh funds will be instrumental in driving HashPort’s global expansion plans, particularly in the face of complex regulatory environments. The company aims to fortify its business operations and establish a robust compliance management system, essential for navigating the intricate web of global regulations.At the core of HashPort’s ecosystem are two significant components. The first is its namesake blockchain-related consulting and system solution, which has gained substantial recognition in Japan. The second is HashPalette, a public chain specially designed for non-fungible tokens (NFTs), tapping into the booming NFT market. Additionally, HashPort is set to unveil an exciting metaverse game called The Land Elf Crossing in the upcoming fourth quarter.Coincheck collaborationHashPort’s previous collaboration with Japanese cryptocurrency exchange Coincheck garnered considerable attention. Together, they launched Japan’s first initial exchange offering (IEO), which raised an impressive 22.45 billion yen (approximately $160 million) in commitments for the Palette (PLT) token. As a testament to the success of this venture, PLT Place, the official NFT marketplace of Palette Chain, now boasts over 370,000 users.President Seihaku Yoshida expressed HashPort’s future ambitions, revealing plans to cooperate with Expo 2025, a highly anticipated event scheduled to take place in Osaka. HashPort aims to develop digital wallets and digital passports linked to soulbound tokens (SBTs) for Expo 2025. With an estimated 28 million visitors expected to attend the expo, the company sees this as a historic opportunity to introduce Web3 technology to a broader audience.Soulbound tokensIn December 2022, one of HashPort’s current investors, SMBC, joined forces with the company to explore the potential applications of SBTs. Proposed by Ethereum Co-Founder Vitalik Buterin, SBTs represent the characteristics or reputation of individuals or entities, much like the concept of soulbound items in the popular massively multiplayer online role-playing game (MMORPG), World of Warcraft.As part of that collaboration, SMBC and HashPort were discussing the possibility of creating a “safe and secure Web3 economic zone.” No further details were given beyond that, but the idea may have been along the lines of creating something like Cyberport, an innovative digital community which has been created in Hong Kong, featuring over 1,900 start-ups and technology companies.The successful funding round marks a significant milestone for HashPort, providing the necessary financial resources to accelerate its expansion plans and drive innovation in the Web3 space. As the company continues to pioneer advancements in the blockchain and NFT sectors, its collaboration with Expo 2025 and ongoing exploration of SBTs showcase the company’s efforts in attempting to contribute towards shaping the future of decentralized technologies.

A Cambodia-headquartered financial group recently cut off from the U.S. financial system is suspected of having operated in South Korea, raising fresh questions about cross-border crypto and currency flows tied to the group. According to the Dong-A Ilbo, which cited data from the Korea Customs Service (KCS), Huione Group—now sanctioned by the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN)—appears to have run a currency exchange in Seoul from 2018 to July 2024. The outlet reported that a banner on the premises displayed a logo identical to Huione’s, prompting suspicions about its ownership and control.Photo by Aleksandar Pasaric on PexelsTies to North Korean hackersThe exchange reported conducting roughly $20,000 in annual currency conversions during that period, excluding cryptocurrency transactions. The timeline overlaps with a period in which Huione Group reportedly received $150,000 in cryptocurrency from the North Korean hacking group Lazarus.  Connections also extend to Cambodia. Panda Bank—a local lender that shares a building with Huione subsidiaries—supports USDT transactions originating from South Korea. Panda Bank director He Yanming is listed as the owner of Huione Crypto, a virtual asset service provider (VASP), suggesting potential links between operations in Seoul and Phnom Penh. These developments come against the backdrop of a U.S. investigation disclosed in May, in which FinCEN said Huione’s business networks, including payments arm Huione Pay, collectively laundered at least $4 billion in illicit proceeds between August 2021 and January 2025. Crypto used in $2.6B illegal conversionsMeanwhile, recent KCS data also shows a rise in illegal currency conversions involving cryptocurrency by foreign nationals. The Korea Economic Daily reported conversions totaling 432 billion won ($302 million) in 2021, climbing to 836 billion won ($584.5 million) in 2023 and 956 billion won ($668.4 million) last year. Over the past eight years, the total amount involved in such cases reached 3.7 trillion won ($2.59 billion) across 28 instances. By value, Chinese nationals accounted for 84.1% of the total, followed by Australians (11.1%), Vietnamese (3.2%), and Russians (1.6%). The growing prevalence of cryptocurrency in illicit activity parallels a broader surge in crypto investment within the country. Many South Koreans have turned to digital assets, often with home ownership as a long-term goal. Trading on local exchanges, Bloomberg reported, is heavily skewed toward more volatile altcoins, which make up more than 80% of total volume.  That stands in contrast to global markets, where investors largely focus on Bitcoin and Ethereum, which together make up more than half of overall trading. The momentum in local crypto investment intensified after Donald Trump’s U.S. presidential victory, with crypto trading in Korea reaching $27 billion in December 2024, about 80% of turnover on the KOSPI stock index. The investigation underscores the growing challenge for regulators in tracking and containing cross-border financial networks that rely on cryptocurrency and informal money transfers. As crypto adoption deepens in South Korea and scrutiny widens abroad, authorities find themselves navigating an increasingly intricate intersection of financial opportunity, enforcement, and risk. 

Korean Conference Captures Interest of NFT and Blockchain Game EnthusiastsNews of the upcoming NFT and Blockchain Game Conference is sure to excite gaming enthusiasts with a keen interest in these technologies. Organized by ZDNet Korea, a tech news outlet, the conference is scheduled to take place on June 27 in the Pangyo Techno Valley, located on the outskirts of Seoul, Korea.Photo by Mateo on UnsplashPolicy and future strategiesThe event will delve into various aspects of the gaming industry, including policy and future strategies, with a specific focus on innovative technologies such as non-fungible tokens (NFTs), cloud computing, and cryptocurrency wallets. Attendees can expect valuable insights and engaging discussions on how these advancements are shaping the future of gaming.Prominent firms to share insightsHosted by the Korea Game Media Association (KGMA), the conference will kick off with a keynote speech by Jae Park, the Korea Country Manager of the global crypto exchange XT.COM. Park will share his expertise on the NFT gaming industry and discuss success strategies. Following Park’s speech, representatives from prominent companies at home and abroad, including Nexon, Marblex, NPIXEL, Polygon Labs, and Alibaba Cloud, will take the stage.Hwang Sun-young, Production Director at Korean game publisher Nexon, will explain Nexon’s implementation of blockchain technology in their projects. Hwang previously attended the Game Developers Conference (GDC) 2023 in San Francisco, where Nexon unveiled the blockchain gaming ecosystem “MapleStory Universe” in partnership with Polygon, a layer 2 scaling solution on Ethereum. MapleStory is Nexon’s blockbuster side-scrolling massively multiplayer online role-playing game (MMORPG).Jake Moon, COO of Marblex, will discuss the endeavors of the Marblex Web3 game ecosystem. Park Sung-mo, Head of Business Development at Polygon Labs, will shed light on the role of the mainnet in the blockchain industry.Ko Jeong-hwan, Head of Web3 at NPIXEL, will provide insights into how Web3 enhances the gaming experience. Lim Jong-jin, Tech Team Lead in Korea at Alibaba Cloud, will introduce the Alibaba Cloud ecosystem and platform that supports Web3.Kim Oh-joong, CEO of Find The Gap, will review incidents related to NFT and game hacking, along with potential solutions. James Kwak, Director of the Business Development Department at BPMG, will deliver a talk on Web3 and wallets.KGMA President Lee Taek-su told ZDNet Korea that NFTs and the blockchain have emerged as important concepts in the global gaming industry. He highlighted that the conference would provide an opportunity to review the efforts undertaken by Korean game companies in the blockchain sphere and raise awareness of the need to embrace the changing paradigm in the sector.