Hong Kong's spot Bitcoin ETFs experience first daily outflows 

Expanding beyond the Ethereum Virtual Machine (EVM) domain, Malaysia-headquartered Etherscan has officially acquired Solscan, a prominent block explorer within the Solana ecosystem.Photo by Shubham’s Web3 on UnsplashEnhancing cross-chain analysisThe acquisition, announced earlier this week, signifies a noteworthy development within the blockchain industry and is poised to bring about a new interface aimed at enhancing cross-chain analysis. Solscan, based in Singapore with its primary team in Vietnam, was previously majority-owned by TomoChain Lab, a Singaporean blockchain software developer. The deal’s terms were not disclosed and the acquisition places Solscan in the same league as Polygonscan within the family of Etherscan block explorers. Diversifying product offeringEtherscan, established in 2015, stands as one of the earliest crypto projects, initially focusing on the EVM space. The platform offers an explorer-as-a-service product for blockchain explorers, with the acquisition of Solscan marking a significant step in diversifying its offerings. Since its inception in 2021, Solscan has risen as a leading explorer in the Solana ecosystem, catering to over three million monthly users. Providing services such as detailed address, token, transaction information, APIs, dashboards and NFT metadata, Solscan mirrors Etherscan’s services but is tailored for the Solana network. The merger between Etherscan and Solscan is anticipated to bring forth a series of enhancements and innovations, with both platforms benefiting from the integration of additional features. The roadmap for this collaboration outlines improvements in user interfaces, navigation and overall accessibility, promising an enriched user experience. Solscan, in its announcement, assured its commitment to the Solana community, vowing to maintain unparalleled blockchain exploration services. The shared vision of Etherscan and Solscan revolves around providing what Etherscan termed “credibly neutral and equitable access to blockchain data,” underlining their commitment to transparency and fairness in the blockchain space. Matthew Tan, CEO and founder of Etherscan, expressed excitement about the acquisition and highlighted the alignment of Solscan’s expertise in making blockchain data accessible and user-friendly with Etherscan’s mission. The acquisition is expected to contribute significantly to the broader blockchain ecosystem. Solscan serves as a crucial player in the Solana ecosystem, an Ethereum alternative. The platform assists users in viewing information within the Solana blockchain, managing accounts, tracking transactions and exploring investment opportunities across various crypto platforms. Solana resurgenceThis deal comes at a time when Solana’s momentum is evident, ending 2023 on a strong note. In December 2023, NFT sales on the Solana network surpassed those on Ethereum for the first time. Solana has experienced substantial growth in comparison to Ethereum, both in terms of its token’s value and against the U.S. Dollar. The fall of crypto exchange FTX had a large impact on Solana and its ecosystem as FTX had been heavily involved within that community and associated projects. The exchange still holds a sizable amount of locked SOL tokens. Following its collapse, the SOL unit price fell below $10. At the time of writing, it stands at $100. The acquisition of Solscan by Etherscan underscores the resurgence of the Solana ecosystem, with major players in the Web3 space recognizing the value of Solana-based technology. As both platforms collaborate, users can anticipate a more robust and interconnected blockchain exploration experience.  

OSL Parent Company Denies Sale PlansBC Technology Group, a Hong Kong-based investment holding company, has firmly denied recent reports suggesting it is exploring the sale of its licensed digital asset business, OSL, for up to HK$1 billion (US$137.3 million).Photo by Nextvoyage on PexelsCompany stock plummetsThis comes in response to a report that emerged via Bloomberg on Monday. The news of the possible sale had a significant impact on the company’s stock, which plummeted by over 22% to HK$3.35 the following day.BC Technology Group, which has been listed on the Hong Kong stock exchange since 2012, is the parent company of OSL. The reports hinted at the possibility of selling off parts of the business, citing undisclosed sources.In response to these rumors, BC Technology Group issued a formal statement to clarify the situation, deeming the article “factually inaccurate and highly misleading.” It vehemently refuted any intention to sell OSL, a key player in the cryptocurrency exchange sector.First licensed exchangeOSL was the first cryptocurrency exchange to be licensed by the Securities and Futures Commission (SFC) in Hong Kong in 2020, initially operated under a voluntary scheme and was limited to serving professional investors. However, the recent licensing requirement broadened its scope, allowing it to cater to retail investors as well, including popular cryptocurrencies like Bitcoin and Ethereum.Both OSL and HashKey had their licenses upgraded this year, enabling them to serve retail investors as per the new policy. However, the reception to this new regulatory framework has been somewhat lukewarm, with only five local exchanges applying for the new virtual asset trading platform (VATP) license. The SFC had to publish a list of applicants following a financial scandal involving the JPEX crypto exchange, which led to over 2,500 complaints and losses totaling approximately HK$1.5 billion.The backdrop of this unfolding situation is Hong Kong’s efforts to establish itself as a significant virtual asset hub. The city announced its ambition to transform into a hub for digital assets a year ago, drawing considerable attention from cryptocurrency exchanges. These efforts included implementing new regulations in June that mandated licensing for cryptocurrency exchanges.Several companies with connections to Hong Kong and mainland China have expressed their intent to obtain a license, potentially taking advantage of Hong Kong’s favorable stance toward virtual assets when compared to mainland China’s strict regulations.High compliance costsNonetheless, high compliance costs in Hong Kong continue to pose a barrier, potentially preventing the city from becoming the primary base of operations for crypto businesses. Industry insiders estimate that the cost of compliance from start to finish can be as high as HK$60 million for a company. Firms have reported that obtaining a trading license in Hong Kong can involve an outlay of between HK$20 million and HK$200 million.As per BC Technology Group’s mid-year report, the company reported a net loss of HK$94.7 million in the first half of 2023. This marked a notable improvement compared to the HK$312.1 million in losses during the same period the previous year. OSL remains a significant source of income for the company.

Singapore High Court Recognizes Cryptocurrency as Personal PropertyIn a significant ruling on July 25, Judge Philip Jeyaretnam of the High Court of Singapore declared that cryptocurrency is capable of being held in trust and should be recognized as property.The judge’s decision came in response to a case brought by Dubai-headquartered crypto exchange Bybit against its former employee, Ho Kai Xin, who was accused of transferring approximately 4.2 million Tether (USDT) from the crypto exchange to her private accounts without authorization.Photo by Tingey Injury Law Firm on UnsplashNo fundamental differenceIn his ruling, Judge Jeyaretnam emphasized that there is no fundamental difference between cryptocurrencies, fiat money, or even physical objects like shells when it comes to their status as property. He argued that as long as these objects hold value and are based on mutual faith, they can be considered property. The judge’s verdict is seen as a crucial step in establishing the legal status of digital assets within the Singaporean jurisdiction.Addressing the argument that cryptocurrencies lack physical presence and therefore cannot be considered property, Judge Jeyaretnam drew an analogy, stating: “We identify what is going on as a particular digital token, somewhat like how we give a name to a river even though the water contained within its banks is constantly changing.” By equating cryptocurrencies to named entities, the judge made it clear that physical tangibility is not a prerequisite for something to be classified as property.Cryptocurrencies have valueFurthermore, the ruling challenges the perception that cryptocurrencies have no “real” value. Judge Jeyaretnam firmly refuted this notion, highlighting that the value of any asset, whether physical or digital, is ultimately determined by collective human belief and judgment.One critical classification made by the judge is grouping cryptocurrencies under the category of “things in action” within British common law. This categorization means that cryptocurrencies are considered a form of property, over which personal rights can be claimed and enforced through legal actions, rather than requiring physical possession.The judge’s decision also referenced the Monetary Authority of Singapore’s (MAS) consultation paper, which proposes implementing segregation and custody requirements for digital payment tokens. By taking cues from the MAS’s stance on digital assets, the court emphasized the legality of holding cryptocurrencies on trust, as long as practical methods for identification and segregation are in place.Cues taken from existing lawSingapore’s legal framework for property also played a crucial role in the ruling. Judge Jeyaretnam pointed to Order 22 of Singapore’s Rules of Court 2021, which defines “movable property” to include various assets, such as cash, debts, bonds, shares, and cryptocurrency or other digital currency. This inclusion reinforces the recognition of cryptocurrencies as a valid form of property within Singaporean law.In April of this year, a Hong Kong court reached a similar conclusion, recognizing cryptocurrency as property. In the High Court of Justice in London the following month, non-fungible tokens (NFTs) were recognized as “private property.”Overall, Judge Jeyaretnam’s ruling represents a significant milestone in the legal recognition of cryptocurrencies in Singapore. By acknowledging cryptocurrencies as property, the court provides greater clarity and certainty for crypto users and investors while affirming the importance of embracing digital assets within the nation’s legal framework.