Marking its 10th anniversary, Coinone’s cumulative trading volume hits $339B

Japan Set to Tighten Crypto AML RulesJapan is working on tightening anti-money laundering (AML) rules relative to digital assets shortly. That’s according to a report by local media outlet Kyodo News.The stricter enforcement measures will take effect from June 1. The objective is to include the tracing of cryptocurrency asset transactions into the legal framework relative to AML, and in that way, bringing the application of AML in Japan into line with global standards.Photo by Louie Nicolo Nimor on UnsplashTravel ruleIn December of last year, the Financial Action Task Force (FATF), a global money laundering and terrorist financing watchdog based in Paris, France, deemed that the approach taken to crypto-related AML in Japan fell short of international requirements and best practice.Specifically, it’s the FATF’s “travel rule” that the Japanese are about to implement. Otherwise known as FATF Recommendation 16, the travel rule is a set of guidelines devised to prevent both terrorist financing and money laundering.The measure puts an onus on all crypto companies to screen all crypto transactions that exceed the value of $1,000 or a variance of this amount based on implementation by each FATF member state. As an example, in the United States, the FATF travel rule is being implemented with transaction monitoring being applied on transactions to the value of $3,000 and above.Once identified, the crypto firm must record details of the transaction and communicate that information, including both sender and recipient data, to the authorities. That would involve the sender and receiver’s legal names, their account numbers, and addresses. Relevant transaction activity includes exchanges between one or more forms of digital currency and the transfer of virtual assets.G7 alignmentThe move follows a decision taken at a Japanese cabinet meeting on Tuesday, as a direct response to FATFs recommendations. Following discussions earlier this month, the intergovernmental political forum of the G7 group of countries indicated its support for the FATF’s call for the establishment of the travel rule as a global standard. Japan is currently leading the group through its G7 presidency and likely wants to align with the views of its international peers.The country had been moving towards travel rule implementation in the past but in a less decisive way. Two years ago, Japan’s Financial Services Agency (FSA) requested virtual asset service providers (VASPs) to implement the travel rule. In a self-regulatory approach in 2022, the country’s Virtual Currency Exchange Association issued a recommendation for members to apply the rule.Those approaches lacked teeth, leading to a cabinet decision to amend existing legislation late last year and this more recent move to apply and enforce the rule.Regulatory frameworkWhile Japan may not be top of the class in terms of AML regulation relative to crypto, it is a forerunner in terms of crypto regulation generally. It was the first country in the world to suffer a serious crypto-related failure when the Mt.Gox cryptocurrency exchange collapsed in 2014.The fall-out from that collapse led to the Japanese introducing more stringent regulations although it took until 2017 to get them implemented. As a consequence, when the next major collapse occurred, the fall of FTX in November 2022, the Japanese have fared much better than investors located elsewhere. Regulation meant that a separate Japanese entity, FTX Japan, was established. It had to adhere to stricter conditions, meaning that FTX Japan customers have been allowed to withdraw their funds since February while their international counterparts must undergo a much longer process to recover their funds.

India tightens control with 3,000 police officials trained in crypto investigationsAs the crypto sector continues to develop, authorities continue to get to grips with the new crypto innovation, with India’s law enforcement being the latest entity to look to clamp down.Photo by Naveed Ahmed on UnsplashCrypto forensics and investigation trainingAccording to the Ministry of Home Affairs (MHA) annual report, a comprehensive training initiative was undertaken during the financial year 2022–2023. The initiative, spearheaded by the Narcotics Control Bureau and the Indian Cyber Crime Coordination Centre (I4C), equipped over 2,900 officials with essential skills in cryptocurrency forensics and investigation.Under the aegis of the Narcotics Control Bureau, India’s central law enforcement and intelligence agency, 141 officers underwent specialized training in the investigation of darknet activities, cryptocurrencies and other pertinent areas such as digital footprints.The report stated that workshops were set up that covered techniques for gathering intelligence and evidence from open sources and social media platforms, reflecting a commitment to staying ahead in the ever-evolving landscape of cybercrime.There’s clearly a need for this level of expertise, given an uptick in crypto-related scams in India and the broader Asia region as a whole in recent times. Earlier this week, it emerged that the Indian authorities had arrested eight individuals in relation to a $300 million cryptocurrency scam.Raj Kapoor, the founder of the India Blockchain Alliance (IBA), recently called for greater control when it comes to crypto-related illicit financing. Kapoor stated:”It is a kick on the backside for most governments. All regulatory bodies will take a closer look at crypto regulation. Governments will need to start implementing new rules and regulations.”I4C played a pivotal role in training over 2,800 cyber police officials. The training encompassed crypto forensics, investigations and emerging technologies like anonymization networks. The focus extended to addressing the misuse of mobile applications in the cyberspace realm.Ongoing blockchain tech adoptionAs India proactively prepares to combat potential crypto-related crimes amidst increased adoption, the nation is also delving into mainstream blockchain applications. In a recent stride towards digital transformation, Hindustan Petroleum (HPCL), the state-run oil and gas company, partnered with blockchain software firm Zupple Labs. Together, they launched a blockchain system designed to automate the verification of purchase orders (POs).HPCL’s spokesperson outlined the significance of this implementation to Cointelegraph, stating that the integration helps automate the verification of HPCL POs to external parties, utilizing the blockchain system alongside HPCL’s internal e-PO. This generates tamper-evident, verifiable POs, enhancing efficiency and transparency within industry processes.In a separate development, it emerged on Thursday that India’s Central Bureau of Investigation has appointed Singapore-headquartered digital asset market intelligence outfit Liminal to manage seized digital assets.This holistic approach, combining advancements in law enforcement training and embracing blockchain applications, underscores India’s commitment to navigating the evolving landscape of digital technologies while looking to ensure a secure and transparent future.

Crypto fund manager secures capital markets license in SingaporeDigital asset fund manager HashKey Capital Singapore celebrated a significant milestone on Tuesday as it secured a regulatory license from the local regulator and central bank, the Monetary Authority of Singapore (MAS).Photo by Mike Enerio on Unsplash‘Pivotal development’HashKey announced its regulatory success by way of a press release published to its website. This achievement, described by the company as a “pivotal development,” positions the firm to offer regulated fund management services primarily in connection with capital markets products from its Singapore base.Deng Chao, Chief Executive of HashKey Capital Singapore and Head of HashKey Singapore, expressed the company’s commitment to the local blockchain community, stating:“As a licensed fund management company, we are committed to contributing to the local blockchain community and playing our part in shaping its future.”Enabling product launchHaving initiated the licensing process in late 2021, HashKey Capital Singapore now plans to leverage its new status to launch a regulated fund and provide capital market products to local customers. The company envisions connecting blockchain experts and global capital to the local market, contributing to the advancement of the blockchain community in the region.Chao emphasized the company’s excitement about propelling blockchain-related capital markets products and investments further into the mainstream. This move is expected to open new possibilities for institutional and accredited investors in Singapore.Hong Kong presenceHashKey Capital falls under the overarching umbrella of Hong Kong-headquartered parent company HashKey Group. Company colleagues in Hong Kong have been busy in 2023, with a number of milestones having been achieved during the year.HashKey and OSL became the first digital asset exchange platforms to be licensed by the Hong Kong Securities and Futures Commission (SFC) as part of a new regulatory approach that allowed such platforms to offer their services to retail investors from June 1 onwards.A few months on from that and the company has been working towards increasing platform liquidity and trading volumes through a token rewards program and partnerships with market makers.At the end of October, the firm launched an exchange app, having received approval for the product from the local regulator. The firm has also bolstered customer deposit protection by way of a deal struck with fintech firm OneDegree to provide insurance cover for digital assets held on the platform.In April, a separate entity, HashKey Wealth, was formed, offering a wealth management service to both institutional and individual investors looking for exposure to digital assets.HashKey Singapore, inclusive of HashKey Capital Singapore, boasts a team of approximately 40 professionals covering various areas such as venture capital investment, fund management and over-the-counter trading of digital assets. The development follows HashKey Capital’s successful conclusion of a $500 million funding round, reinforcing its position as one of the largest crypto asset managers.Founded in 2015, HashKey Capital has played a pioneering role as an institutional investor in Ethereum, managing over $1 billion in client assets and making investments in more than 500 projects across infrastructure, tools and applications.During a funding round which the HashKey Group pursued earlier this year, it emerged that the company was being valued at $1 billion.