Hong Kong regulator increases scrutiny of unlicensed VASPs and OTC venues

SK Planet Teams Up with T1 for LoL NFT Event: ‘The Hero’s Journey’SK Planet, the data and tech subsidiary of South Korean conglomerate SK Group, announced last week that it is conducting a non-fungible token (NFT) event called “The Hero’s Journey.” This event is a collaborative effort with T1 Entertainment and Sports, the company behind League of Legends (LoL) team T1. T1 Entertainment and Sports is a global esports joint venture established by American company Comcast Spectacor and SK Telecom, the telecommunications subsidiary of SK Group.This event coincides with the 2023 League of Legends World Championship (Worlds 2023), taking place in Korea from October 10 to November 19 (local time).Photo by RDNE Stock project on PexelsMission-based adventureThe NFT promotion, running until December 3, promises a unique and rewarding experience for users. LoL and NFT enthusiasts are encouraged to complete five missions and earn NFTs at various physical locations related to T1, a participant in Worlds 2023.These locations include T1’s headquarters, Base Camp, Café & Arena, and HiKR Ground. To complete their missions, visitors can collect stamps from each site, sign up for a T1 membership, and either attend a Worlds 2023 game at the stadium or join the viewing party.Anyone who has downloaded UPTN Station, the digital wallet launched in June by SK Planet, can join this promotional event, with the chance to receive rewards for each completed mission. Rewards include NFTs of LoL players like Lee “Faker” Sang-hyeok and Choi “Zeus” Woo-je, discounts on T1 memberships, vouchers for the T1 HQ SHOP, and free drink coupons.Upon completing all five missions, participants will automatically be entered for a chance to win various prizes. These include AVAX tokens, player-signed jerseys, tickets to T1 CON — a fan meet-up with T1 players — and a T1 Bap invitation, which gives fans the opportunity to tour the T1 headquarters and enjoy a meal on-site.SK Planet’s NFT commitmentLately, SK Planet has been actively undertaking NFT endeavors. In June, it introduced an NFT membership program named “Road to Rich,” capitalizing on OK Cashbag, which is the popular customer rewards program of SK Planet. This was followed by the debut of a blockchain-centric ticketing service, developed in partnership with layer 1 blockchain protocol Avalanche. Looking ahead, SK Planet aims to provide an even broader range of practical utility NFTs.Commenting on their latest project, Kim Kyo-soo, who leads the customer experience division at SK Planet, shared his excitement about collaborating with T1, one of the world’s most popular esports teams. He sees the use of NFTs in this event as a meaningful way to connect with fans in person. Kim anticipates a strong response and active participation from the esports community.

Komainu and Crypto Garage partner to bring about institutional crypto adoptionKomainu, the crypto custodian and portfolio company of Japanese financial services conglomerate Nomura, has partnered with Crypto Garage to work towards enabling institutional crypto adoption in Japan.The digital asset custodian made the announcement of the partnership in a press release published to its website on Wednesday. The collaboration builds upon the investment by Crypto Garage's parent company, Digital Garage, in Komainu, aimed at fortifying Komainu’s market presence in Japan. The investment also unites Digital Garage with other prominent Japanese stakeholders in Komainu, including Laser Digital, the digital asset subsidiary of Nomura, alongside the Nomura Research Institute.Photo by Agathe on UnsplashCapitalizing on growing institutional interestCrypto Garage, a company that provides custody, over-the-counter (OTC) trading and settlement services in both the Japanese and international markets, has seen a growing interest from Japanese institutions in digital assets. This has spurred Komainu and Crypto Garage to develop advanced digital asset custody solutions tailored specifically to meet institutional demands, with a strong focus on security and compliance.The partnership harnesses the diverse expertise of both entities, laying the foundation for what both firms hope will be a robust and dependable digital asset management platform throughout the lifecycle of these assets. Speaking to that notion, Crypto Garage CEO Masahito Okuma suggested that the firms share a common vision, adding:“By combining forces, we will leverage our collective expertise to deliver solutions that satisfy the unique needs of Japanese institutions.”Nicolas Bertrand, CEO of Komainu, expressed his optimism regarding the collaboration and the Japanese market, stating:“Japan is a key jurisdiction for digital assets and continues to be an important part of our plans to be the most coveted institutional-grade custodian globally.”This partnership represents a significant leap forward in advancing the institutional crypto landscape in Japan. With the support of established financial entities such as Nomura Holdings Inc. and Digital Garage Inc., this venture is poised to instill confidence among Japanese institutions by demonstrating a strong commitment from the traditional financial sector.This collaboration not only demonstrates the evolving dynamics of institutional crypto services in Japan but also underscores the broader acceptance and integration of digital asset management solutions within traditional financial frameworks. It signifies a matured understanding and approach to digital asset custody and management.Komainu, established as a joint venture between Nomura, CoinShares and Ledger, operates in full compliance with regulatory standards, offering a fusion of traditional financial services with state-of-the-art security measures for institutional custody in the digital age. Earlier this year, the firm entered into a partnership with crypto exchange platform OKX, providing the company with digital asset custody services.In August, Komainu secured a trading license from the Virtual Assets Regulatory Authority (VARA) in Dubai. Meanwhile, Crypto Garage extends its services to crypto asset businesses, both within Japan and internationally, covering custody, over-the-counter (OTC) trading and settlement services for digital assets.

China has inaugurated a new center in Shanghai dedicated to the international operation of its central bank digital currency (CBDC), the e-CNY, the People's Bank of China (PBOC) recently announced. The hub also launched three specialized platforms for cross-border digital payments, blockchain services, and digital assets, according to state-run Xinhua News Agency. The initiative is a key part of China's strategy to promote the digital yuan's adoption beyond its domestic borders. This effort aligns with a broader trend among BRICS nations, which have increased their use of the Chinese yuan for trade settlements. A Crypto Briefing report indicates that yuan-denominated payments accounted for roughly 24% of the bloc's trade transactions in early 2025.Photo by Edward He on UnsplashDifference between digital yuan and stablecoinsThe e-CNY, which functions without needing a bank account, is designed for daily uses like retail shopping, salary distribution, and transportation fares. While it cannot be converted into foreign currencies, its cross-border capabilities are being explored through the mBridge project, a multinational effort coordinated by the Bank for International Settlements. In contrast to the state-controlled e-CNY, privately issued stablecoins, blockchain-based tokens pegged to fiat currencies like the U.S. dollar, are also gaining traction. These digital assets, backed by reserves such as U.S. Treasury bills, are widely used for faster and cheaper cross-border payments and remittances. Hong Kong established a clear regulatory framework for stablecoins on Aug. 1, setting high standards for potential issuers. However, the Hong Kong Monetary Authority (HKMA) has stated that it does not expect to grant the first licenses until early next year. Yuan stablecoin in KazakhstanRecently, the HKMA had to clarify the status of stablecoin issuance in the region. According to the South China Morning Post, the monetary authority issued a statement refuting social media reports that the first offshore yuan-pegged stablecoin had been launched in Hong Kong. The company involved, AnchorX, later clarified on X that its yuan-pegged digital asset, AxCNH, was launched in Kazakhstan under a license from the Astana Financial Services Authority (AFSA). Despite its launch outside of Hong Kong, the AxCNH stablecoin is seen by some as part of Beijing's broader ambitions. Yang Guang, the CTO of Conflux, which provides technical expertise to AnchorX, told Reuters that the Sept. 17 launch represents an effort to leverage blockchain technology for international trade. Yang suggested that Beijing would likely support such initiatives if they facilitate commerce, noting that offshore yuan stablecoins could be issued without direct sign-off from China's central bank. Market analysts view China’s latest initiatives as part of a broader, multi-pronged strategy. Augustine Fan, head of insights at digital asset platform SignalPlus, described the stablecoin project as “another venue or trial to push the use of the offshore yuan,” adding that it also reflects the government’s cautiously positive stance toward blockchain technology. China’s stablecoin ambiguityAt the policy level, signals remain mixed. A Caixin report indicated that Chinese digital platforms, state-owned enterprises (SOEs), and financial institutions in Hong Kong may face restrictions on stablecoin and broader crypto activity. In addition, branches of SOEs and major banks are unlikely to seek stablecoin licenses in the region. The English version of the Caixin article remains accessible, but Cointelegraph observed that the Chinese-language version has since been taken down.At the same time, official engagement is visible. The National Natural Science Foundation of China (NSFC), a vice-ministerial institution under the Ministry of Science and Technology that oversees the National Natural Science Fund, earlier announced grants for research on stablecoins and the development of cross-border monitoring frameworks. According to the South China Morning Post, the foundation launched the study in response to concerns that unregulated circulation of private stablecoins, particularly those pegged to the U.S. dollar, could weaken capital controls and pose risks to the yuan. A clearer policy direction is expected once the results of this research are available.