Korea to introduce more effective guidelines for crypto listing and delisting

The crypto space continues to suffer a disproportionate share of hacks and scams that were further exacerbated on Wednesday, with Malaysian crypto data aggregator the latest to succumb to a security breach. Serving as yet another stark reminder of the persistent threats plaguing the sector, a phishing scam targeted CoinGecko's X account, leading to a brief compromise that raised concerns about the safety of user information.Photo by GuerrillaBuzz on UnsplashPhishing scamDuring this incident, hackers posted a phishing link on CoinGecko's X account, falsely advertising a token airdrop for a cryptocurrency named GCKO. The deceptive post claimed that GCKO could be used for API services, including the cryptocurrency ANKR. Swift action by CoinGecko involved the removal of the fraudulent post and a public warning urging users to avoid interacting with any suspicious links or content. In an X post, CoinGecko wrote:”Our Twitter accounts @CoinGecko and @GeckoTerminal have been compromised. We're taking immediate steps to investigate the situation and secure our accounts. Please DO NOT click on any links or engage with suspicious content. Your security is our top priority.” Employee errorThe firm followed up with an update on Thursday, attributing the breach to a team member inadvertently clicking on a fraudulent Calendly link, granting unauthorized access to the hacker. Despite having two-factor authentication (2FA) enabled and employing robust security measures, CoinGecko emphasized that the inadvertent click allowed unauthorized access. The compromised accounts were then exploited to disseminate misleading information and potentially engage in malicious activities. CoinGecko expressed sincere apologies for any confusion or inconvenience caused by the incident. The company reiterated its commitment to platform security and continuous improvement of internal controls, assuring users that corrective measures were promptly implemented. SEC incompetenceCoinGecko's security incident occurred within 24 hours of a similar occurrence involving the U.S. Securities and Exchange Commission (SEC). The SEC's X account was compromised, with scammers posting a false message from Chair Gary Gensler about the approval of spot bitcoin exchange-traded funds (ETFs). While CoinGecko identified a vulnerability in its security regimen, the SEC later confirmed that the breach in its case was far more basic. It was not due to infrastructure attacks but rather the lack of 2-factor authentication (2FA) tied to the SEC's account, the most basic form of operations security. Gensler and the SEC have come in for major criticism from the crypto community in the U.S. due to a policy of regulation by enforcement that has been pursued. With that, the Commission came in for swift and harsh criticism in the immediate aftermath of its X account hack. Many pointed out the irony of Gensler advising consumers to secure their accounts back in October when the SEC itself had failed to do so. Others queried who would be responsible for what some interpreted as an episode of market manipulation, something that the SEC has perennially associated the crypto markets with. During the time that the account was compromised, millions of dollars of value were liquidated in short and long trading positions. CoinGecko's quick response serves as a valuable lesson in the importance of vigilance and proactive security measures amid the growing threats facing the cryptocurrency community.

BitGo CEO Emphasizes Separation of Trading and Custody to Prevent Crypto BankruptciesMike Belshe, Founder and CEO of digital asset trust company BitGo, emphasized the importance of separating cryptocurrency trading and custody to prevent incidents similar to those involving Mt. Gox and FTX in his keynote speech at Impact, the main conference of Korea Blockchain Week (KBW) 2023.Established in 2013, BitGo is currently the world’s largest provider of virtual asset custody services, serving more than 1,500 institutions in over 50 countries, including the US, Switzerland, and Germany. Major exchanges like Bitstamp, Korbit, Bullish, Gate.io, and Crypto.com entrust BitGo with safeguarding their virtual assets.Clear divisionDuring his speech, Belshe repeatedly stressed the need for custody services for the sustainability of the virtual asset ecosystem, asserting that separating trading and custody can enhance trust in the industry and attract traditional financial institutions.Unlike stock markets, where payment institutions and custodians are separate entities, this kind of separation does not exist in the virtual asset market. To steer traditional financial institutions toward the virtual asset ecosystem, this issue needs to be addressed, Belshe said.He went on to cite the Mt. Gox hack in 2014 and the FTX collapse last year as examples that underscored the importance of virtual asset custody. Mt. Gox, once the world’s largest Bitcoin exchange, reportedly lost some 650,000 to 850,000 Bitcoins — worth more than $450 million at the time — due to a hacking incident, leading to its bankruptcy. FTX also faced insolvency after it was revealed that it inflated its assets using its native token FTT and that its management was misusing customer investment funds.Photo by Melinda Gimpel on UnsplashBelshe suggested that when Mt. Gox employees discovered the Bitcoin theft during the hack, it was already too late. If custody had been treated separately, the theft could have been detected much faster. Regarding the FTX debacle, he argued that even with just a few auditors, the problems in that situation could have been apprehended. FTX’s ability to provide custody of customer assets themselves led to unauthorized activities, including cross trading and insider trading, ultimately resulting in the misuse of customer funds.Korea’s favorable conditionsBelshe also assessed that South Korea is well-positioned for the establishment of virtual asset custody systems due to its high trading volume and a solid commitment to drafting crypto-related legislation. Seven such bills are currently underway, reflecting the authorities’ determination to address problems in the ecosystem. Korea thus has the potential to establish itself as a hub in Asia, he said.Indeed, BitGo’s partnership with Hana Bank to establish a joint venture for digital asset custody services in Korea is driven by these factors. Through its entry into Korea, BitGo aims to share its extensive knowledge and experience in digital asset business institutionalization and investor protection. It will also apply the expertise and strategies it has accumulated through close communication with regulatory authorities and supervisory agencies in various countries, including the US, to support the integration of virtual assets into the regulated framework in Korea.Belshe commented that through this partnership, BitGo will seek to enhance its understanding of Korea and utilize its technology and expertise to boost confidence in the Korean cryptocurrency market.

Hong Kong last week entered the pilot phase of Project Ensemble, an initiative focused on developing infrastructure for a tokenized market and creating a sandbox where institutions can test blockchain systems in real business environments. Set to run through 2026, the pilot involves the Hong Kong Monetary Authority (HKMA), several banks, and other industry participants. Its early work will examine how tokenized deposits can be used in money market fund transactions and how these tools might support real-time liquidity and treasury management. Interoperability key to tokenizationCommenting on the development, Hong Kong Securities and Futures Commission (SFC) CEO Julia Leung said, “To scale tokenisation of investment products, interoperability is key.” She added that the measure announced on Nov. 13 by the HKMA “will gradually allow interbank settlement of tokenised deposits in real time 24/7.”Photo by Ibrahim Rifath on UnsplashFollowing the HKMA’s announcement, Ant International, the global arm of Ant Group, revealed that it is joining Project Ensemble’s Architecture Community. As part of this digital finance effort, Ant International will help design and advance the tokenization ecosystem in the special administrative region, contribute to defining industry standards, and support broader industry adoption. Corporate initiatives in digital financeSeparately, Ant International also signed a memorandum of understanding with Swiss bank UBS to explore new opportunities in tokenized deposits, leveraging Ant’s blockchain platform Whale. Under this partnership, UBS Digital Cash, a blockchain-based payment solution developed by UBS, will be used to support Ant International’s global treasury operations. Young Jin Yee, Co-Head UBS Global Wealth Management Asia Pacific and Country Head UBS Singapore, said the collaboration with Ant aims to achieve “a real-time, multi-currency payment solution that sets standards for transparency and efficiency.” Hong Kong has been seeing a noticeable pickup in crypto-related activity more broadly. According to a post on X by Unfolded, AMINA, a Swiss-regulated institution, is now the first international banking group to roll out full crypto trading and custody services in Hong Kong. Adding to this momentum, companies are stepping up their Bitcoin accumulation. In its third-quarter results announcement, Boyaa International, a Hong Kong–listed firm specializing in online card and board games, reported a quarter-over-quarter increase of 738 Bitcoin. As of Sept. 30, its total holdings stood at 4,091 Bitcoin at an average cost of about $68,114 per coin. Adoption trends and market contractionThis push into the crypto sector aligns with broader digital asset adoption across Asia. A recent survey by CoinDesk and Protocol Theory of 4,020 individuals aged 18 to 64 in 10 Asian countries found potential crypto ownership of around 25% among respondents with internet access. The survey also noted that roughly half of adults familiar with crypto plan to use it within the next year or so. Despite the uptick in activity and interest, the market itself is currently in a downturn, with Bitcoin falling below the $90,000 mark on Nov. 18 for the first time since April 22. Analyzing the move, CoinDesk’s Omkar Godbole said Bitcoin looks oversold, as the 14-day relative strength index (RSI) has slipped under 30, indicating the drop may be steep enough to trigger a pause or a possible rebound. Godbole drew a parallel with price action earlier in the year, noting that February was the last time the RSI fell below 30, when Bitcoin was trading under $80,000. After that decline, the market bottomed out at around $75,000 in April, a pattern that traders may be watching closely as they assess the current pullback. At the time of publication, Bitcoin was trading around $90,400 against USDT on Binance.