Korean Crypto Wallet Joins Forces with Kick Scooter Sharing Platform

Korean Financial Authority Orders Suspension and Levies $1.4M Fine on Crypto Lender DelioDelio, a cryptocurrency lending company based in South Korea, has received a directive from the financial regulatory authority to cease its operations for a duration of three months, according to local news agency Yonhap. Additionally, the company has been levied with a fine amounting to KRW 1.896 billion ($1.4 million).Photo by Riva Ferdian on UnsplashExecutive dismissal recommendedThis announcement was made on September 1 by the Financial Intelligence Unit (KoFIU) under the South Korean Financial Services Commission. In addition to the measures mentioned above, the KoFIU advised the company to remove one of its executives.As a virtual asset service provider (VASP) registered with the financial regulatory authority, Delio offered deposit services with an annual yield reaching up to 10.7%. However, in June of this year, the company abruptly halted its withdrawal services, prompting investigations conducted by both the KoFIU and public prosecutors.Involvement with unregistered VASPsThe KoFIU saw that Delio had engaged in trading activities with unregistered VASPs and had also breached the restrictions on the trading of affiliate-issued virtual assets. These actions are prohibited under the Financial Transaction Information Act.The financial authority identified a total of 171 instances in which Delio facilitated the transfer of its customers’ virtual assets to unregistered VASPs located outside the country. Additionally, the authority also uncovered the company’s engagement in storing the virtual assets of unregistered VASPs.It was also discovered that Delio had not only neglected to assess the risks of money laundering before introducing new products or services but had also failed to fulfill Know Your Customer (KYC) obligations.

The blockchain network underpinning Bitcoin, the world’s largest cryptocurrency, requires an energy volume comparable to the annual consumption of Thailand. According to Digiconomist’s Bitcoin Energy Consumption Index, the protocol utilized roughly 204.44 terawatt-hours (TWh) of electricity between Nov. 18, 2024, and Nov. 18, 2025.Photo by Fré Sonneveld on UnsplashFiscal losses drive Malaysian oversightAmid these intense energy demands, Malaysia’s primary electricity utility has recorded substantial financial impairments attributed to illicit activities. Tenaga Nasional Bhd (TNB) reported losses totaling 4.57 billion ringgit ($1.1 billion) from illegal crypto-mining operations over a five-year span. In a Nov. 19 report by The Edge Malaysia, the Ministry of Energy Transition and Water Transformation (Petra) disclosed these figures to parliament, specifying that the unauthorized mining occurred at 13,827 locations between 2020 and August of this year. To counter these infractions through regulatory channels, Petra has formed a special committee scheduled to convene before year-end. This body aims to recommend enhancements to the Electricity Supply Act, which currently delineates penalties based on the offender's classification. Domestic violators face fines ranging from 1,000 to 50,000 ringgit ($240 to $12,000), imprisonment of up to one year, or both. Penalties escalate for non-domestic entities, involving fines between 20,000 and one million ringgit ($480 to $240,000) and potential prison terms of up to five years. Despite these provisions regarding electricity theft, a specific legal code regulating the act of crypto mining remains absent, creating a jurisdictional void. International bans and grid reallocationStrategies to curtail electricity usage by crypto miners are becoming evident elsewhere in Southeast Asia as well. Laotian Deputy Energy Minister Chanthaboun Soukaloun told Reuters last month that the nation intends to suspend electricity supplies to crypto miners by early 2026. He cited the sector's minimal economic contribution and low job creation as primary factors. Consequently, the state plans to redirect power to high-priority sectors, including AI data centers, metals processing, and electric-vehicle manufacturing. Parallel restrictions are emerging globally. In October, the government of British Columbia enacted a permanent prohibition on new BC Hydro connections for crypto miners to safeguard the Canadian province’s energy reserves. Officials pointed to the industry’s "disproportionate energy consumption and limited economic benefit" as the rationale for the policy. The debate over thermal innovationConversely, some enterprises are exploring methods to capture thermal output from Bitcoin mining to heat residential and commercial properties. If viable, such repurposing could utilize the considerable thermal byproducts of mining. A K33 Research study cited by CNBC indicates the industry generates roughly 100 TWh of heat annually, a figure sufficient to warm the entirety of Finland. However, industry consensus on the feasibility of these applications remains elusive. Proponents suggest that mining infrastructure could be situated in proximity to heat consumers. Skeptics, however, contend that the reliance on application-specific integrated circuit (ASIC) chips makes this impractical, arguing that the technical difficulty of mining a block renders household participation unfeasible. Despite these differing views, the concept continues to attract attention as a potential avenue for innovation in energy distribution. As jurisdictions like Malaysia and British Columbia tighten regulatory oversight, the cryptocurrency sector faces mounting pressure to address its energy footprint. The divergence between government restrictions and industry-led efficiency proposals underscores the complex relationship between digital asset infrastructure and global energy resources. Given the shifting landscape of policy and technology, the outlook for sustainable large-scale crypto mining remains uncertain, as governments weigh energy demands against economic benefits and the industry searches for more efficient ways to operate.

KuCoin affiliate applies for license in Hong Kong amid identity mix-upIn a recent development on the Hong Kong crypto scene, VAEXC Limited, a cryptocurrency exchange, has submitted an application for a crypto trading license. The move had sparked a misunderstanding as some reports suggested the application was submitted by a Binance-linked company when in fact, it turns out to be a KuCoin-affiliated entity.Photo by Stella P on UnsplashReporting confusionA report published in October by the South China Morning Post (SCMP) asserted that a newly established crypto exchange named HKVAEX appeared to be connected with global crypto platform Binance.In the meantime, it emerged more recently that an application for a trading license had been submitted by the similarly named VAEXC Limited. While many reports confused this entity with what is believed to be a Binance-linked company, subsequent reports have emerged to confirm that the application pertains to an entity associated with the Seychelles-incorporated cryptocurrency exchange, KuCoin.In response to these initial wayward reports, a HKVAEX spokesperson confirmed that the company is in the process of preparing a licensing application in Hong Kong but that it has yet to do so. The spokesperson stated:“We are still in the preparatory stages for the application” . . . “VAEXC is an entirely separate applicant, and our operations are completely independent.”Leveraging KuCoin technologyThe SFC updated the list of virtual asset trading platform applicants on Nov. 27, disclosing that Hong Kong VAEXC Limited submitted its application on Nov. 25. Operating under the name VAEX, the exchange places a strong emphasis on security and regulatory compliance, positioning itself as a next-generation, trusted virtual asset exchange.Backed by a team with extensive industry expertise and leveraging KuCoin Tech, VAEX aims to offer a secure, reliable, stable and user-friendly platform for crypto asset trading and management. In celebration of VAEX’s launch, KuCoin conducted a public testing campaign, featuring a 15,000 USDT prize pool for eligible KuCoin users and participants.Despite the recent scandals in Hong Kong’s crypto scene — including an alleged fraud at the JPEX crypto exchange and more recently still, an alleged Ponzi scheme orchestrated by unlicensed crypto exchange Hounax — the regulatory stance in Hong Kong remains unwaveringly positive where digital assets are concerned.Introduced in June, regulations in Hong Kong mandate cryptocurrency exchanges to apply for a Virtual Asset Service Provider (VASP) license from the SFC by June 2024 or face de-registration. Notably, unregistered exchanges are permitted to operate during the interim transition period.KuCoin’s investment arm, KuCoin Ventures, has also been active in Hong Kong. In March, the firm led a $10 million investment in CNHC, a Hong Kong-based stablecoin issuer. Three months later, amid a changing regulatory environment in 2023, the platform confirmed a tightening of its compliance procedures with the introduction of mandatory know-your-customer (KYC) identity checks.Meanwhile, it’s unclear as to what plans Binance has to expand in Hong Kong if any. The leading global exchange is facing very challenging legal issues in the United States currently. That could have a bearing on its plans in Hong Kong, while it remains unclear as to what level of involvement it has with HKVAEX.