Chinese state publication calls for crackdown on crypto

Korean Crypto Exchange Coinone Protects Investors from Fraud Losses of $370K in H1Coinone, one of South Korea’s leading cryptocurrency exchanges, announced its achievement today in the battle against crypto fraud. The company successfully safeguarded 476 million KRW ($370,000) during the first half of this year by effectively countering various fraudulent activities, including voice phishing, as reported by local news outlet Etoday.Photo by Pixabay on PexelsFoiling 21 crimesThis accomplishment can be largely attributed to Coinone’s customer protection center, which has monitored and identified suspicious transactions while taking proactive measures. Since the beginning of the year, the exchange has successfully foiled 21 instances of crypto-related crimes. Among these cases, 18 were investment frauds, including romance scams, resulting in the prevention of potential losses amounting to 152 million KRW ($120,000). Additionally, there were three cases of voice phishing incidents, successfully averting potential losses of 324 million KRW ($250,000). Voice phishing is the use of fraudulent phone calls to extract personal information or deceive people into unwanted financial transactions.Fewer complaintsThe effective prevention of crimes has resulted in a decrease in the number of complaints received. Coinone’s customer center has experienced an average monthly decrease of 31% in requests related to “voice phishing” since March. Furthermore, the customer satisfaction rating for the center recorded an average of 89.1 points over the same period.Recognizing the growing prevalence of crypto crimes, Coinone has taken preemptive measures to address the issue. The exchange’s official website has been providing information on various types of crimes and preventative strategies.Jang Seok-won, the chief of Coinone’s customer protection center, emphasized the criticality of early detection and prevention of criminal activities. While acknowledging the success in countering voice phishing thanks to improved efforts by law enforcement, Jang expressed concern over the rising incidence of romance scams and similar investment frauds. He further highlighted Coinone’s full commitment to protecting investors and ensuring their safety.

China’s leading science foundation has initiated a research program to examine the effects of stablecoins, reflecting concerns that such digital currencies could pose a risk to the nation’s financial system and its fiat currency. According to the South China Morning Post, the National Natural Science Foundation of China (NSFC) is now offering grants for studies focused on stablecoins and the creation of cross-border monitoring frameworks. The foundation expressed that the unmonitored circulation of private stablecoins, particularly those pegged to the U.S. dollar, could weaken capital controls and present a potential challenge to the yuan. This initiative emerges as governments around the world, from the U.S. to regional financial centers, are actively developing rules for the digital asset sector.Photo by  Christian Lue on UnsplashStrategic research and internal debateThe NSFC will fund the projects with grants valued between 200,000 and 300,000 yuan ($28,042 to $42,063). Researchers are expected to complete their work within a year and deliver policy recommendations on how China can manage the challenges posed by global stablecoins and contribute to digital finance governance. The deadline for applications is Oct. 9. This research program is set against a backdrop of internal discussion in China regarding the possible launch of a yuan-backed stablecoin. While some economists support the idea of boosting the yuan's international profile, Bloomberg noted that former central bank governor Zhou Xiaochuan has advised caution. He recently said the high efficiency of China's current payment systems and warned that financial stability could be threatened by speculation in the stablecoin market. Analysts believe any state-sanctioned yuan stablecoin would likely be confined to offshore markets and tied to the offshore CNH. Global regulatory landscapeChina’s examination of stablecoins is part of a broader global trend of increased regulatory focus on the asset class. In Hong Kong, a new ordinance took effect on Aug. 1, creating a mandatory licensing system for stablecoin issuers under the oversight of the Hong Kong Monetary Authority. Other Asian nations are also taking action. South Korea’s government is reportedly exploring a model for a won-pegged stablecoin involving a consortium of banks and non-bank entities. Separately, Cointelegraph reported that Kyrgyzstan has introduced legislation outlining a regulatory framework for such assets. Developments are also accelerating in the U.S., where the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act was signed into law, creating a federal structure for stablecoin oversight. On a commercial level, a Minnesota-based credit union, St. Cloud Financial, intends to introduce its own stablecoin later this year, a move highlighted by Cointelegraph. This token, named Cloud Dollar (CLDUSD), is designed to integrate with the credit union's banking system to facilitate faster and cheaper transactions for its members within a regulated environment.

South Korea’s neobank Kbank has partnered with BPMG, a domestic Web3 developer, to pursue stablecoin initiatives abroad, the Electronic Times reported. The companies are preparing proof-of-concept (POC) trials with firms in Thailand and Dubai as part of a broader push to participate in global financial infrastructure. Following a recent agreement with Kbank, BPMG has begun collaborating with a Thai company on a stablecoin project and is working with an investor in the United Arab Emirates (UAE) on the issuance and operation of stablecoins. Kbank plans to leverage BPMG’s blockchain technology to develop stablecoin business models for remittances, currency exchange and payments, and to support the build-out of related systems. The bank is focusing first on Asia and the Middle East.Photo by Shubham Dhage on UnsplashReducing intermediaries and automating regulatory complianceAnother priority is cutting intermediaries in cross-border transfers to speed up remittances and reduce costs via distributed ledger technology. Drawing on BPMG’s patents in AI and blockchain, Kbank is also developing a tool to automate regulatory analysis across jurisdictions so it can tailor services to local rules. As digital transformation accelerates, stablecoins are gaining traction as a payment method for their low volatility and ability to enable real-time cross-border transactions. In April, Kbank joined the Pax Project, a stablecoin initiative backed by Japan’s three major banks—Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho. Through the project, Kbank is participating in trials for real-time transfers and settlement between South Korea and Japan. The bank has also formed a digital asset task force to advance the commercialization of stablecoin solutions. A Kbank official said combining blockchain with finance can deliver faster, more efficient global services and that the BPMG partnership is expected to demonstrate the practical utility of stablecoins, paving the way for integration into both domestic and international offerings. IPO timing hinges on Upbit renewalThe stablecoin push comes as Kbank is widely expected to submit a preliminary initial public offering (IPO) filing as early as this month, with a listing anticipated in October. A key variable, according to market watchers, is whether Kbank renews its contract with Upbit, South Korea’s largest cryptocurrency exchange, to provide real-name bank accounts—a regulatory requirement for fiat-to-crypto platforms. Kbank has been Upbit’s banking partner for five years, and deposits from the exchange account for roughly 20% of the bank’s total. Kbank is also seeing rising corporate activity around digital assets. As of Aug. 18, the bank had more than 100 corporate accounts dedicated to crypto trading—over double the 49 recorded at the end of last year—momentum widely attributed to its partnership with Upbit. Since launching corporate-focused services in late 2023, Kbank has provided real-name accounts to entities including government bodies, non-profits, and local municipalities. The uptick follows the financial regulator’s earlier decision to allow non-profits and trading platforms to sell crypto holdings, with implementation beginning in June.