Singapore High Court Embraces NFTs for Financial Investigations

Japan’s Financial Services Agency (FSA), a government agency and financial regulator responsible for overseeing banking, securities and exchange, has ordered both Apple and Google to remove specified unregistered crypto exchange apps from the Japanese versions of their app stores.Photo by Louie Martinez on UnsplashFive exchange apps specifiedIt is understood that the request was made at the beginning of this month, with the regulator specifically calling for the removal of the ability of Japanese consumers to download apps related to Bybit, MEXC Global, LBank Exchange, KuCoin and Bitget. In response to a query from The Block, Bitget Chief Legal Officer (CLO) Hon Ng said that the company is “aware of the issue and sincerely apologize for any inconvenience caused by the temporary removal of the Bitget app from the iOS App Store in Japan." The Bitget CLO went on to state that the company is working with Apple and regulators to resolve the matter. News of the regulator’s request emerged via a report published by Japanese financial media platform Nikkei on Feb. 7.  Apple had removed the apps from its App Store on Feb. 6. Reclassification of digital assets as securitiesA subsequent report by Nikkei on Feb. 10 suggests that the FSA is considering classifying digital assets as financial products akin to securities. The objective of the move is to protect Japanese investors as it would mean increased disclosure requirements from those that offer crypto-related investment products. Last August, FSA Commissioner Hideki Ito told Bloomberg that any decision to approve crypto-linked exchange-traded funds (ETFs) requires “careful consideration.” At the time Ito said that many people believe that digital assets “do not necessarily contribute to the wealth creation of the Japanese people in a stable and long-term manner.” The Japanese have been far more cautious in their approach to virtual assets by comparison with other Asian centers such as Hong Kong, which had approved spot Bitcoin and Ether ETFs some time ago. It appears that Japan’s FSA is wary of the volatility of cryptocurrencies and risks associated with the nascent assets. It’s understood that the FSA will announce crypto policy reforms by June 2025. Legislative amendments would then follow in the following parliamentary session in 2026. The change would mean a lifting of the current prohibition related to crypto ETFs. Another aspect likely to be reformed is taxation as it relates to crypto. It’s thought that a reduction from the existing 55% tax rate on crypto to 20% is on the cards. This is not the first occasion when a regulator has leaned on Apple and Google to cut off access to crypto exchange apps. In January 2024 Apple India blocked access to eight exchanges which had been subject of a show-cause notice from India’s Financial Intelligence Unit (FIU). Following a seven month ban, access to the Binance app was subsequently restored once it had come back into compliance in India. In April 2024 the Securities and Exchange Commission (SEC) in the Philippines had ordered both Google and Apple to remove the Binance app from their app stores on the basis that it posed a risk to Filipino investors at the time.

Ozys Expands into Japanese Web3 Ecosystem Through Partnership with GensoKishiOzys, a cross-chain platform builder based in South Korea, has made its moves into the Web3 ecosystem in Japan by forging an alliance with GensoKishi Online Meta World, a metaverse adaptation of 3D MMORPG Elemental Knights Online. 3D MMORPG stands for three-dimensional massively multiplayer online role-playing game.Photo by Bastian Riccardi on UnsplashElemental Knights Online’s achievementsWith a history of 15 years, Elemental Knights Online won the 2012 Game of the Year (Gold) in Taiwan and has logged over 8 million downloads. It is available on both Nintendo Switch and Play Station 4.GensoKishi’s Korean ambitionsIn the meantime, GensoKishi is setting its sights on entering the Korean Web3 market by teaming up with Ozys, a company well-versed in decentralized finance (DeFi) protocols and cross-chain technology. Kicking off its collaboration with KLAYswap, a prominent DeFi ecosystem in Korea, GensoKishi plans to grow its ecosystem further with the support of Ozys.Choi Jin-han, CEO of Ozys, conveyed his excitement regarding the company’s entry into the Japanese Web3 market through its collaboration with GensoKishi, a partner with a well-established global fanbase. Choi further emphasized that the Korean cross-chain project will contribute to expediting the growth of the Japanese gaming platform’s ecosystem, with the aim of creating meaningful outcomes.Maxi Kuan, CEO of GensoKishi, said that South Korea has been a significant target market for them since the official release of GensoKishi Online Meta World in November last year. He stated that the partnership with Ozys will accelerate GensoKishi’s progress towards achieving its goals.

China’s Legal Daily, a publication that falls under the supervision of the Chinese Communist Party’s (CCP) Central Commission for Political and Legal Affairs, has sounded an alarm regarding cryptocurrencies, raising concerns about their use as potential avenues for corruption. In the newspaper’s New Year’s Day edition, it quoted legal scholars, who had convened at the annual China Integrity and Legal Research Association meeting, who underscored the urgency of addressing the emerging threat posed by digital assets.Photo by Max van den Oetelaar on Unsplash‘Hidden channels’ for briberyIn particular, it focused on views expressed by Associate Professor Zhao Xuejun from Hebei University Law School. Zhao Xuejun warned against the use of virtual currency and electronic gift cards as “hidden channels” for bribery. Notably, these forms of payment, often stored in “cold storage” devices, offer a convenient means for transporting funds abroad, the academic claimed. This development aligns with recent warnings from state agencies, including the Supreme People’s Procuratorate and the State Administration of Foreign Exchange, cautioning against the use of stablecoin Tether in yuan-related foreign exchange transactions, deeming such actions illegal. Anonymity and traceability concernsProfessor Mo Hongxian from Wuhan University Law School explicitly mentioned Bitcoin, highlighting the challenges associated with virtual currencies, such as their anonymity and difficulty in traceability, which can facilitate illegal activities. Despite lacking official recognition in China, Professor Hongxian stressed the need for judicial attention to transactions involving virtual currencies. Although China maintains a cryptocurrency ban, it actively explores blockchain technology for identity verification. The country’s central bank digital currency, e-CNY, still in the pilot stage, has witnessed significant development. Despite its limited geographic distribution, the digital yuan recorded transactions totaling nearly $250 billion in China as of June 2023, with international use noted in commodities sales. Varying degrees of enforcementChina has demonstrated that it can at times take a very hard line on restricting cryptocurrency trading and related activities, while at others, it seems to tolerate such activity or turn a blind eye. Last month China’s Supreme Procuratorate provided details on the nature of the prosecution of over-the-counter (OTC) crypto trader and RenrenBit founder, Zhao Dong. Zhao was handed down a seven year sentence for carrying out illicit crypto business operations. By contrast, an investigation carried out by the Wall Street Journal last year found that business has been thriving for the world’s largest cryptocurrency exchange Binance in China, despite the ban. Other crypto-related activity has been uncovered, flouting capital controls. BitMEX founder Arthur Hayes suggested recently that all wealthy Chinese individuals have access to banking in Hong Kong, allowing them to access, trade and use cryptocurrency. As part of the CCP’s intensified anti-corruption efforts, the focus on cryptocurrency’s potential role in financial crimes underscores the evolving landscape as use of digital currency unfolds. The Legal Daily article emphasizes the need for vigilance and regulatory measures to counteract the perceived threat of corruption facilitated by cryptocurrencies and electronic payment methods.