Korean FSS Governor meets U.S. SEC Chair Gensler to cooperate on crypto regulations

Hong Kong–listed companies are stepping up digital-asset bets as the city sets out a clearer rulebook, a sign that tighter oversight and new market rails are starting to unlock institutional demand.Photo by Ruslan Bardash on UnsplashCorporate moves signal rising appetiteBoyaa Interactive International has been adding Bitcoin (BTC) to its treasury, with the latest acquisition of 411 BTC bringing its total holdings to 4,091 BTC. The gaming company has said it will direct 90% of a planned $56.3 million rights issue into Bitcoin. Yunfeng Financial raised HKD 1.17 billion, or about $150 million, through a new share issuance and plans to use part of the proceeds to launch cryptocurrency trading and investment management services. The firm is associated with Yunfeng Capital, which was co-founded by Alibaba founder Jack Ma, and has previously outlined plans to accumulate BTC, Ethereum (ETH), and Solana (SOL). These moves land alongside a policy reset from the top. In his annual address on Sept. 17, Chief Executive John Lee reaffirmed Hong Kong’s goal of cementing its position as an international hub in finance, including digital assets, while pairing that ambition with stronger investor safeguards. Tokenization and blockchain testbedThe centerpiece is Project Ensemble, run by the Hong Kong Monetary Authority (HKMA). The initiative is building infrastructure for a tokenized market and operates a sandbox where institutions can test blockchain systems in live business settings. Priorities include tokenized bank deposits, settlement of tokenized assets such as money market funds, and standardized issuance of government tokenized bonds. Regulation is advancing in parallel. The government is preparing legislation for a licensing regime that covers stablecoin issuers as well as digital-asset dealing and custody providers. The Securities and Futures Commission is studying an expansion of products for professional investors, with tougher protections baked in. The regulator plans to use automated reporting and data surveillance to curb misconduct. Authorities also intend to deepen cross-border cooperation to combat tax evasion. Banking rules are set to shift as well. The HKMA has circulated draft guidance that would ease capital requirements for certain crypto exposures in line with Basel standards through a new policy module called CRP-1. Under the proposal, assets issued on permissionless blockchains could qualify for lower capital charges when issuers demonstrate effective risk management. Hong Kong aims to implement the international rules by early 2026.Publicly traded BTC treasury firms in China Source: BitcoinTreasuries.NETAdoption amid constraintsNot every institution will join the build-out. Mainland policies may constrain participation, according to Caixin. Chinese digital platforms, state-owned enterprises (SOEs), and financial entities operating in Hong Kong could face limits on stablecoin and other crypto activity. Branches of several SOEs and Chinese banks are also unlikely to seek a Hong Kong stablecoin license. Corporate adoption remains broad despite those headwinds. Publicly traded Bitcoin treasury companies in China and Hong Kong hold a combined 19,280 BTC, according to BitcoinTreasuries.net. Several appear among the top 50 public corporate holders worldwide, including Next Technology Holding (16th), Cango (18th), Boyaa (24th), Nano Labs (48th), and Ming Shing Group (50th). The tally points to rising regional interest in digital assets. Publicly traded BTC treasury firms in Hong Kong Source: BitcoinTreasuries.NET

Korean Crypto Exchange Alliance Reveals Standardized Regulation GuidelinesThe Digital Asset eXchagne Alliance (DAXA), consisting of five leading cryptocurrency exchanges in South Korea, today revealed standardized regulation guidelines, according to a report by news media The Asia Business Daily.Photo by Nick Fewings on UnsplashStandardized guidelinesTwo important documents — the standardized internal control framework and the code of conduct and ethics — were released by DAXA today. These documents were developed based on data provided by financial investment firms and member exchanges. Reviewed by DAXA members and advisors, this documentation represents a significant milestone as it is the first of its kind to address the unique characteristics of the crypto industry. The establishment of unified rules and regulations through the collaborative efforts of the member exchanges stands as a commendable achievement.Internal control frameworkThe internal control framework consists of five parts, encompassing a total of 68 articles. These parts cover general provisions; governance of virtual asset service providers (VASPs); organization and standards for internal control; compliance officers and internal control system management; and compliance details.Code of ethicsThe code of conduct and ethics comprises five chapters with 24 articles. These chapters focus on general provisions, customer ethics, employee ethics, corporate management ethics, and societal ethics.DAXA Vice Chairman Kim Jae-jin expressed optimism that these guidelines will serve as a valuable reference for all VASPs, fostering the development of a fair, trustworthy, and globally competitive crypto market.DAXA’s websiteLast month marked the launch of DAXA’s official website, and their YouTube channel has been active since January. The alliance is made up of five member exchanges: Gopax, Bithumb, Upbit, Korbit, and Coinone. At the helm of the alliance is Chairman Lee Sirgoo, who concurrently serves as CEO of Dunamu — the company operating Upbit, the largest cryptocurrency exchange in the nation.

Huobi Anticipates Break-Even in Q3 Following Consecutive LossesCryptocurrency exchange Huobi, under the guidance of its advisor and Tron Founder Justin Sun, has reported losses over consecutive recent quarters and is now eyeing a break-even point in the current quarter.Photo by Brands&People on UnsplashThree quarters of lossesIn a tweet posted by Sun on Tuesday, the Tron Founder revealed that Huobi hadn’t registered a profit from the third quarter of 2022 through the second quarter of this year. While exact loss figures were not disclosed, Sun attributed these financial challenges to excessive spending on marketing, advertising, and employee salaries. Notably, Huobi has since reined in these expenses, positioning itself for a potential return to profitability by the fourth quarter.Looking at the overall financial performance of Sun’s crypto entities, Huobi and Tron, the group appears to be on an upward trajectory. Sun’s tweet indicated a combined profit of $85 million, derived from $193 million in revenues and $108 million in expenses.Notably, the Q2 profit saw a substantial increase of 183% compared to the $30 million profit in Q1. Sun’s projections suggest that Q3 could see revenue reach $200 million, expenses remain at $100 million, resulting in a projected profit of $100 million for the quarter.Improved financial outlookSun highlighted on Twitter Huobi’s improved financial outlook, projecting a break-even status for Q3 and a modest profit for Q4 based on conservative estimates. Earlier in the year, Huobi implemented a 20% reduction in its workforce as a response to the cryptocurrency market’s bearish trends.Established in 2013, Huobi had maintained consistent profitability until the last few quarters, according to Sun. He clarified that despite reports linking him as the core investor through the M&A fund that acquired a stake in Huobi, he is merely an advisor to the exchange.Exchange business challengesHuobi’s struggles and subsequent efforts to regain financial stability mirror the broader landscape of cryptocurrency exchanges navigating a volatile market. No major exchange has been unaffected by a challenging business and regulatory environment over the past year.US exchange Coinbase is in a legal battle with the Securities and Exchange Commission (SEC) in the United States. A report by Semafor on Wednesday suggests that the US Department of Justice is planning on bringing fraud charges against Binance, who is already fighting an action taken by the SEC. Binance has also been forced out of key four important European markets over the course of the past three months.Meanwhile, it has been claimed that KuCoin has been executing a layoff plan, something the company itself denies. In March, the company faced an action brought by the New York Attorney General on the basis of a failure to register as a securities and commodities broker-dealer.Huobi’s difficulties serve as a testament to the challenges and opportunities presented to all of the major international cryptocurrency exchange businesses.The company’s recent financial trajectory, marked by consecutive losses, has caught the attention of the industry. Justin Sun remains one of crypto’s most controversial figures, but with his guidance, the exchange will be working towards rebounding and returning to profitability in the coming quarters.