Gnosis Plans Crypto Visa Card Launch for Singapore and Hong Kong

Gyeonggi Officials with Cryptocurrencies Clear of Professional Conflicts in Virtual AssetsGyeonggi Province, South Korea’s most populated province surrounding the national capital of Seoul, announced on October 26 (local time) that the duties of all crypto-holding officials ranked 4 or higher in the provincial government are not associated with virtual assets. In Korea, public officials are ranked from nine to one, with one being the highest position.In anticipation of the amended Public Service Ethics Act coming into effect on December 14, the Gyeonggi provincial government introduced a revised employee code of conduct in August. This required officials of rank 4 or higher to report their crypto holdings within 10 days starting from August 21.Photo by Nattu Adnan on UnsplashReported crypto ownershipThe result indicated that out of 228 officials, 23 reported owning virtual assets. Among these, 15 officials held cryptocurrencies valued at less than KRW 1 million ($738), while the remaining 8 had holdings exceeding that amount.To determine any potential involvement with cryptocurrencies in their official duties, the Gyeonggi government examined the roles and responsibilities of these officials within their respective departments. Following this review, the matter was forwarded to the Gyeonggi Public Service Ethics Committee for further scrutiny.Ethics committee reviewOn October 20, the committee convened to assess the relationship between the officials’ duties and their crypto holdings. They unanimously concluded that none of the 23 officials had any ties to crypto in their official roles.The newly revised code of conduct elaborates on the conditions under which a public official’s responsibilities are associated with virtual assets. Specifically, an official’s duties are considered linked to virtual assets if they are involved in formulating or implementing crypto-related policies or laws; conducting related investigations, inquiries, or inspections; engaging in the registration and oversight of cryptocurrency exchanges; or if they are involved in supporting or overseeing the development of crypto technologies.In light of these definitions, officials who engage in any of the above roles are strictly prohibited from capitalizing on any crypto-related information they encounter during their professional duties for personal trading or investment. Furthermore, officials who either currently shoulder or have previously carried out such responsibilities are required to disclose any crypto holdings they acquire.In the future, once the revised Ethics Act is implemented, the Gyeonggi government will remain fully committed to preventing conflicts of interest among public officials. To bolster these efforts, Gyeonggi will introduce additional measures, including a thorough verification process for the accuracy of their cryptocurrency holdings reports.In situations where a public official with cryptocurrency holdings is assigned a position related to virtual assets, Gyeonggi will issue individualized instructions. These directives may entail either the liquidation of their cryptocurrency holdings or their removal from the specific role in question.Meanwhile, Gyeonggi will enhance its endeavors to furnish educational resources pertaining to virtual asset reporting. Moreover, the local government will restrict officials from holding virtual assets if they fall under financial disclosure obligations and are deemed to possess information about or exert influence on virtual assets.

US DOJ Charges Two Russians With Mt. Gox HackTwo Russian nationals have been charged by the US Department of Justice (DOJ) for their involvement in hacking of the Japanese cryptocurrency exchange Mt. Gox, and in causing the collapse of the infamous exchange.Photo by Tingey Injury Law Firm on UnsplashCulpable for collapseThe indictment, which has been unsealed, was originally filed on June 7, and identifies the individuals as Alexey Bilyuchenko, 43, and Aleksandr Verner, 29. They are accused of not only hacking the exchange but also conspiring to launder approximately 647,000 bitcoins, which is valued at around $17.1 billion based on Bitcoin’s unit price on Friday.Additionally, Bilyuchenko has been charged with collaborating with Alexander Vinnik to operate the illicit exchange known as BTC-e between 2011 and 2017. BTC-e was shut down by U.S. law enforcement in 2017, and Vinnik was later extradited from Greece to the U.S. in 2022 on charges of running BTC-e and engaging in money laundering.Mt. Gox, which experienced a major theft, declared bankruptcy and closed its operations in 2014. Bilyuchenko and Verner played a significant role in the theft, leading to the exchange’s insolvency, according to Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. The indictment states that “in or about September 2011, [the defendants] and their co-conspirators gained and caused others to gain unauthorized access to the Mt. Gox server in Japan.”BTC-e exchange money launderingFurthermore, it is alleged that Bilyuchenko utilized his ill-gotten gains from the Mt. Gox theft to establish the BTC-e exchange, which facilitated global money laundering activities for criminals. US Attorney Ismail J. Ramsey for the Northern District of California stated that Bilyuchenko and his co-conspirators operated a digital currency exchange that enabled criminal entities, including hackers, ransomware actors, narcotics rings, and corrupt officials, to launder billions of dollars.In March, there were reports from CoinDesk about movements of BTC-e funds on the blockchain. An exchange wallet linked to BTC-e made its first transaction since 2017, transferring approximately 3,299 bitcoins to a crypto wallet in November 2022. Additionally, six years ago, the exchange wallet sent around 10,000 bitcoins to two unidentified recipients. However, the recent DOJ filing does not specify whether these recipients were Bilyuchenko and Verner.Slow processMeanwhile, the long-suffering creditors of the hacked exchange are only beginning to reach the final stages of the bankruptcy process. Japan’s bankruptcy process is incredibly slow and it’s taken the best part of ten years for it to reach the distribution phase. It became apparent in April that the bankruptcy estate was moving to distribute $4.5 billion in cash and digital assets to creditors. It’s understood that the process will be completed in October.While creditors are taking a haircut in bitcoin terms, on a US dollar basis, they are not fairing out badly given that the leading cryptocurrency has seen massive dollar price appreciation in the intervening years.

Kazakhstan setback for Coinbase as government blocks website accessIn alignment with the Law on Digital Assets legislation which was enacted in February, Kazakhstan’s Ministry of Culture and Information has officially confirmed that access to the Coinbase website has been blocked within the country.The development follows the enforcement of regulations prohibiting the issuance and trading of unsecured digital currencies, according to local news media.Photo by Kai Pilger on UnsplashAccusation of regulatory violationThe authorities in Kazakhstan initiated the blocking of local IP addresses from accessing Coinbase as early as September. The action was taken in response to a request from the Ministry of Digital Development. The Ministry of Digital Development accused Coinbase of violating the Law on Digital Assets, resulting in the restriction of access to the platform.The Law on Digital Assets, introduced earlier in 2023, stipulates that the issuance and circulation of unsecured digital assets are prohibited. The exception to this rule is within the Astana International Financial Center (AIFC), a designated economic zone in Kazakhstan. Permits to operate crypto trading platforms within the AIFC are issued by the Astana Financial Services Authority (AFSA).Several cryptocurrency exchanges have already received approval from the AFSA. Notable names among these approved exchanges include Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit and Xignal&MT.Reports of access issues to the Coinbase website initially emerged in September, with the local Telegram media outlet Finance.kz referring to it as the “great Kazakh investment firewall.” This firewall was not limited to Coinbase. It also affected access to other major international crypto exchanges such as Kraken.Stringent regulationKazakhstan’s approach to crypto regulation has been notably stringent, particularly concerning its significant mining sector, which ranks among the world’s largest. In October, eight leading cryptocurrency mining operators wrote an open letter to President Kassym-Jomart Tokayev, expressing concerns about the challenging conditions faced by the crypto-mining industry.Those entities included BCD Company, TT Tech Limited, Green Power Solution, Kinur Invest, KZ Systems, AI Solutions and VerCom. High energy prices for miners were cited as a significant issue, leading to what was described as a “very distressful situation” in the sector.Mining got off on the wrong footing in Kazakhstan. Following the banning of crypto mining activities in China in May 2021, there was a sudden influx of miners into Kazakhstan. As that development wasn’t planned for, it led to major stresses being placed on the country’s electricity grid. As a consequence, blackouts occurred.While this development in Kazakhstan is unwelcome news for Coinbase, the company has experienced more positive outcomes elsewhere. Last week it emerged that the U.S. crypto exchange had outperformed Q3 revenue estimates. That said, it also emerged that the exchange’s trading volumes had declined for the second consecutive quarter in a row.Kazakhstan’s move to block Coinbase access underlines the country’s determination to enforce its digital asset regulations, contributing to a growing trend of governments worldwide seeking to bring crypto-related activities under regulatory oversight.