Kloint and Korea University to develop on-chain data analysis solutions

Korean Police Establishes Task Force to Tackle Virtual Asset-Related CrimesIn response to the recent increase in virtual asset-related crimes in South Korea, the country’s police agency is establishing a dedicated task force to combat these illegal activities, according to local media outlet News1. This action by the National Police Agency comes as virtual asset legislation gained momentum and as prosecutors launched a joint virtual asset investigation division. Additionally, the police are considering establishing a new regional investigation unit focused on virtual asset-related investigations in the future.Photo by Sungho Song on PixabayMulti-divisional approachDuring this month, the police will consolidate various functions related to virtual asset investigations within its headquarters to establish the task force. This group will convene monthly meetings to exchange information on ongoing investigations and will also extend invitations to on-site investigators for the purpose of studying the most effective investigative methods and staying updated on the latest trends in virtual asset-related crimes.The task force will be jointly overseen by the heads of the Cyber Investigation Bureau and the Investigation Bureau and will consist of members from several divisions, including the Cyber Investigation Planning Division, Economic Crime Investigation Division, Cybercrime Investigation Division, Cyber Terrorism Response Division, Narcotic and Organized Crime Investigation Division, and National Security Investigation Command Division.Escalation of virtual asset crimesBy the end of the first half of this year, the global crypto market value reached $1.17 trillion, coinciding with a notable uptick in crypto-related criminal activities. In 2021, there were 427 instances of domestic fraud cases linked to cryptocurrencies, resulting in the arrest of 1,717 individuals. However, in 2022, these numbers increased to 628 cases involving 2,123 people. Furthermore, from January to July of the current year, the police have apprehended 1,146 individuals in connection with 327 cases related to cryptocurrency crimes.However, responding to virtual asset-related crimes presents a significant challenge due to their diverse nature and wide-ranging applications. For example, incidents involving crypto hacking typically fall under the jurisdiction of the Cybercrime Investigation Division. On the other hand, cases related to fraudulent crypto investment schemes are typically handled by the Economic Crime Investigation Division, while the Narcotic and Organized Crime Investigation Division concentrates on instances of drug trading conducted using cryptocurrencies.Paving the way for specialized expertiseFurthermore, as part of the task force’s efforts, the police will seek input and feedback regarding the potential establishment of a new department focused exclusively on investigating virtual assets in the future. A police official mentioned that the creation of such a dedicated unit is seen as a desirable step that could facilitate the development of specialized expertise among on-site officers. Looking ahead, the police are also contemplating the formation of a regional investigation unit specifically dedicated to cryptocurrency-related investigations, a unit akin to the existing Financial Crimes Investigation Unit.Upcoming law implementationThe police’s decision to form a working group is seen as a proactive step in preparation for the forthcoming Virtual Asset User Protection Act, slated to take effect in July next year. This legislation is designed to enable legal action against unfair trading practices related to virtual assets, including the misuse of undisclosed information, market manipulation, and illicit transactions. It parallels the regulatory framework applied to financial investment products.In August, public prosecutors took action by launching a joint cryptocurrency investigation division at the Seoul Southern District Prosecutors’ Office in collaboration with several key agencies, including the Financial Supervisory Service (FSS), Financial Intelligence Unit (FIU), National Tax Service (NTS), Korea Customs Service (KCS), Korea Deposit Insurance Corporation (KDIC), and Korea Exchange (KRX). Moreover, in light of the growing importance of legal issues related to cryptocurrencies, prominent law firms have been swiftly mobilizing to establish specialized teams dedicated to handling crypto legal cases.This trend is not limited to South Korea alone; it is also unfolding in other countries. For instance, in a parallel development, the Hong Kong Police Force and the Securities and Futures Commission (SFC) have recently instituted a working group to monitor and address suspicious activities linked to virtual asset trading platforms (VATPs).

Ripple Receives In-Principle Approval From Singaporean RegulatorRipple, the blockchain-based payments firm, has obtained in-principle regulatory approval from the Monetary Authority of Singapore (MAS) to offer digital asset payments and token products in Singapore.Photo by Dids on PexelsODL service expansionThe approval, announced on Wednesday, will enable Ripple’s subsidiary, Ripple Markets Asia Pacific, to expand its On-Demand Liquidity (ODL) service. ODL facilitates the seamless transfer of the XRP cryptocurrency across borders without the involvement of traditional banking intermediaries.Ripple had applied for an institutional payment license under Singapore’s Payment Service Act to secure the regulatory green light. In response to the approval, Ripple CEO Brad Garlinghouse praised the MAS for its pragmatic and innovation-driven approach to cryptocurrency-related services.He expressed confidence that Singapore would serve as a prominent gateway for Ripple’s business operations in the Asia Pacific (APAC) region. On Twitter, Garlinghouse wrote: “As a major global financial center, Singapore led the way in taking a pragmatic, innovation-first approach to crypto — we’re incredibly proud @Ripple is one of a handful of firms (<20) to receive in-principle approval for a MAS MPI license for digital payment token services!”Stuart Alderoty, Ripple’s Chief Legal Officer, explained that the regulatory approval from MAS would enhance Ripple’s ability to support forward-thinking customers who are exploring the potential of blockchain and crypto technologies to create a more inclusive and borderless financial system.Growing APAC presenceRipple’s presence in Singapore has already been growing significantly. In 2022, the company doubled its number of employees at its Asia Pacific headquarters, with Singapore becoming a major hub for ODL transactions. The MAS, recognizing the potential of fintech firms in the digital money services sector, published its Purpose Bound Money (PBM) white paper on Wednesday, proposing standards for such firms operating in Singapore.While Ripple has made progress with regulatory compliance in Singapore, it has faced legal challenges in other jurisdictions. Since December 2020, Ripple’s legal team has been dealing with a lawsuit filed by the US Securities and Exchange Commission (SEC), accusing Ripple of conducting an unregistered securities offering with its XRP token.The case is expected to reach a verdict in the coming months. While the speculation is that the case has gone well for Ripple, it remains to be seen to what extent it can get the upper hand in taking on a cornerstone institution of the US establishment like the SEC.Either way, Ripple is moving to develop on a global basis. It has recently pursued further development in the Middle East via a Dubai expansion. In Hong Kong, it is collaborating with local regulators in trialing the use of its technology relative to real-world asset tokenization.The company has also established partnerships with central banks in Montenegro and Thailand, as well as numerous regional banks and financial institutions worldwide.The regulatory approval from MAS marks a significant milestone for Ripple, expanding its customer reach and positioning the company for further growth in the digital asset payment sector. Digital asset innovation is truly global and as many organizations are demonstrating, just as Ripple is in this instance, innovative curtailment in one region will simply manifest itself as greater development in another.

Hong Kong Lawmaker Explores Digital Asset Links With MainlandIn a move aimed at bolstering its position as a rising global Web3 hub, Hong Kong Legislative Council member Johnny Ng has expressed his aspiration to foster greater collaboration between digital asset platforms in Hong Kong and a Shanghai-based exchange.Photo by Simon Zhu on UnsplashDigital asset exchange interconnectivityAs Hong Kong continues to position itself as a key player in the emerging Web3 landscape, Ng envisions a future where licensed virtual asset exchanges in Hong Kong could be interconnected with their counterparts in Shanghai.Ng’s remarks came during an interview with Chinese media outlet The Paper. Drawing a parallel with the established Shanghai-Hong Kong Stock Connect program that seamlessly connects the stock markets of both cities, Ng raised the question of whether a similar connection could be established for licensed digital asset exchanges. Ng’s idea hinges on the potential to bridge appropriate platforms in Shanghai with those licensed in Hong Kong for virtual asset trading.Interconnected talent poolThe lawmaker’s enthusiasm for interconnectivity also extends to the talent pool. He expressed his desire for more Web3 talent exchanges between Hong Kong and the mainland, recognizing Shanghai’s status as a financial hub boasting numerous exceptional financial enterprises.Hong Kong’s approach to the Web3 landscape stands in contrast to mainland China’s stringent cryptocurrency regulations. While China banned cryptocurrency transactions in 2021, Hong Kong has embraced crypto firms, even encouraging partnerships between these firms and local banks.This year, Hong Kong authorities unveiled a series of cryptocurrency-related policy statements, aimed at fortifying its stature as a global financial center. A significant step followed in December, when the Hong Kong Legislative Council passed an amendment introducing a comprehensive licensing framework for virtual asset service providers (VASPs).In a recent development underscoring Hong Kong’s pro-crypto stance, HashKey and OSL have become the pioneering recipients of licenses for retail trading under the new regulatory regime, which commenced on June 1.Differing policy approachesPeople following developments in crypto and Web3 in China and East Asia have been speculating if the strategic positive shift in Hong Kong towards developing as a regional hub relative to the sector is indicative of a softening in the approach of mainland China towards the industry. It appears that Hong Kong’s pursuit of crypto business has been sanctioned by Beijing.Commentators have been monitoring the emergence of further encouraging signals. In May, Chinese state television featured a segment that covered cryptocurrency and in particular Bitcoin. Binance CEO Changpeng Zhao (CZ) was sufficiently encouraged by the development to suggest that it was “a big deal,” although the clip was later removed from the broadcaster’s website.Ng’s proposal aligns with the broader narrative of Hong Kong’s ambitious push into the Web3 landscape, capitalizing on its favorable regulatory environment to attract crypto-related ventures. As discussions evolve around the potential interconnectivity between Hong Kong and Shanghai’s digital asset exchanges, the global cryptocurrency community watches with interest to see if there are any emerging signs that Beijing will reciprocate positively.