HTX and Heco Chain exploited with $115 million loss

India has once again emerged as the global leader in cryptocurrency adoption for the second consecutive year, according to the latest Chainalysis Global Crypto Adoption Index for 2024. Despite strict regulations, including high taxes and restrictions on foreign exchanges, India continues to see widespread participation in digital assets, showcasing resilience in the country’s growing cryptocurrency ecosystem.Photo by Jovyn Chamb on UnsplashIndia leads in crypto adoptionIndia ranked first out of 151 countries in the 2024 Chainalysis report, maintaining its top position from 2023. Indian investors have continued engaging with both centralized and decentralized finance (DeFi) platforms despite regulatory challenges such as the 30% capital gains tax and a 1% tax deducted at source (TDS) on crypto transactions. This activity highlights the country's strong interest in digital assets. India received $143 billion in crypto inflows from July 2023 to June 2024, placing second in the Central and Southern Asia and Oceania (CSAO) region behind Indonesia, which received $157 billion. CSAO as a whole accounted for $750 billion in crypto assets over the same period, making up 16.6% of global crypto activity. Offshore exchange restrictions and workaroundsIn December 2023, India’s Financial Intelligence Unit (FIU) issued show-cause notices to nine offshore cryptocurrency exchanges, including Binance, Kraken and KuCoin, for non-compliance with anti-money laundering laws. The FIU also blocked access to these platforms for Indian users. However, many investors found ways to bypass these restrictions, continuing to access these exchanges via pre-downloaded apps. Despite these regulatory hurdles, Binance and KuCoin have since re-entered the Indian market after paying fines and complying with local laws. Binance settled a $2.25 million fine in June 2024, while KuCoin resolved a $41,000 penalty in March 2024. Indonesia’s rapid growth in cryptoIndonesia on the other hand has emerged as the fastest-growing crypto market in the CSAO region, climbing four places to third in the global rankings. The country experienced a nearly 200% year-over-year increase in crypto activity, driven primarily by retail investors seeking alternative investments such as meme coins. Indonesia received $157.1 billion in crypto inflows during the 12-month period, reflecting strong engagement with decentralized finance services. Broader regional trendsSeven of the top 20 countries in Chainalysis’ adoption index come from the CSAO region, including Vietnam, the Philippines and Pakistan. This growth is fueled by investment opportunities and an embrace of digital assets as new financial tools. Countries with lower purchasing power tend to have higher adoption rates, with retail-sized transactions making up a significant portion of activity.India’s resilient crypto marketDespite regulatory challenges, India’s crypto market continues to thrive. The government's strict policies have done little to dampen enthusiasm for digital assets. Chainalysis found that investors remained committed to crypto, even as the country enforces strict tax policies. India’s high adoption rate reflects strong demand and adaptability in the market. Future outlook for India’s crypto ecosystemIndia’s leadership in crypto adoption is expected to continue. The FIU is reviewing applications from more foreign exchanges, with at least two expected to be approved by the end of 2025. As the regulatory landscape evolves, clearer guidelines could encourage further growth and innovation in the digital asset space.

Korea Exchange sets the stage for security token tradingStarting next year, South Koreans may have the opportunity to trade security tokens, as the Korea Exchange (KRX), the sole securities exchange operator in the country, has officially begun preparations to establish a security token market. The Busan Digital Asset Exchange (BDX), slated for launch next year, is expected to play a pivotal role in spearheading the growth and development of this emerging security token market.Photo by Tierra Mallorca on UnsplashSeeking approval from financial regulatorsAs reported by local news outlet Busan Ilbo, KRX applied to the FSC last month for registration as an innovative financial service under the financial regulatory sandbox scheme. On Nov. 19, the FSC approved the creation of pilot markets for investment contract securities and non-cash trust beneficial certificates. KRX’s recent initiative is a follow-up to this development. The financial regulator is set to make a final decision after holding a main committee meeting to review KRX’s application.Investment contract securities and non-cash trust beneficial certificates represent two distinct types of security tokens. Investment contract securities provide a means for fractional investments in real-world assets (RWAs). This can include a diverse range of assets such as artworks, music copyrights, beef and carbon credits, allowing investors to own a portion of these assets. On the other hand, non-cash trust beneficial certificates function as secondary investment instruments. These certificates enable individuals to invest in financial products that themselves have invested in security tokens, offering an indirect pathway to participate in the security token market.Fractional investments on the horizonVarious industries are poised to benefit from the emerging digital market, especially platforms focused on fractional investment in artworks. Companies like Yeolmae Company, Art Together and Seoul Auction Blue are keen on this opportunity and have applied to the FSS for permission to register security tokens. Upon receiving regulatory approval, these platforms plan to accept subscription requests, enabling investors to participate in the art market in a more accessible way.The development of security token markets is expected to positively impact BDX, which is currently seeking an operator. Initially, when BDX’s operation plan was unveiled in September, it excluded security tokens due to regulatory constraints. However, with KRX now involved, it’s more probable that the Busan exchange will feature security tokens as major trading assets. Experts believe the success of these token exchanges will largely depend on the quality and appeal of the underlying assets.A local securities industry official emphasized the significant role of the security token market in enhancing the stature of Busan as a blockchain hub. The growth of this market is seen as pivotal in boosting the value and utility of BDX. The official noted that BDX’s appeal to investors would increase if it offered a diverse range of underlying assets or unique security tokens. This development could mark a significant turning point for Busan in the blockchain industry.

Com2uS Platform, a blockchain subsidiary of South Korean game company Com2uS Holdings, announced today that it will sell NFTs to fund subway advertisements celebrating the upcoming fan meeting of Choushinsei Flashman, a Japanese live-action superhero series produced by Toei Animation. This year marks the 35th anniversary of the show’s introduction to Korea. Photo by Choong Deng Xiang on UnsplashSpecial event for South Korean fansThis “Cosmo Sword NFTs” campaign has been launched by Com2uS Platform, backed by local fans’ voluntary participation and their enthusiasm towards the series. It has a special meaning for the fandom as it is the first time that the stars of Choushinsei Flashman are visiting Korea. The entire proceeds will be used to put advertisements on subway stations. This promotion is expected to attract a lot of fans as they can take selfies against the advertisement display or put paper notes containing messages for Flashman actors on the board.  Fan meeting to take place in April The Flashman fan meeting is planned to be held on April 20 at Sky Art Hall located in Gangseo-gu, Seoul. The event will feature seven actors and actresses from Flashman, including Tarumi Tota who starred as “Red Flash,” a main protagonist, and Hagiwara Sayoko who performed as the villain “Ray Nefel.” Participants will be able to enjoy on-site giveaway events and collective exhibitions.  Blockchain-enabled event tickets Fan-meeting NFT tickets can be exclusively purchased from X-PLANET, an NFT marketplace. VIP seats have already been sold out. The NFT tickets utilize blockchain technology which allows only ticket buyers to enjoy the show. They are resistant to forgery or counterfeiting since every process from purchasing to admission is recorded onchain, keeping scalpers at bay.  Run by Com2uS Platform, X-PLANET strives to showcase various artworks in the realms of games and K-pop to NFT enthusiasts in the global Web3 market. The platform is committed to producing high-quality NFT content in collaboration with skillful artists and various organizations.