US Treasury Sanctions Gaza-Based Crypto Operator

Asian Countries Dominate Chainalysis’ 2023 Global Crypto Adoption IndexBlockchain analytics firm Chainalysis has just unveiled an excerpt of its “2023 Global Crypto Adoption Index,” revealing that Asian nations are top of the class in terms of the pace of crypto adoption.The report extract published to the Chainalysis website brings into focus the remarkable strides made by a number of Asian countries, emerging as the front-runners in driving grassroots cryptocurrency adoption.The index showcases the dominance of regions like Central and South Asia, along with the broader Oceania regions. Astonishingly, six of the top 10 countries on the index hail from this part of the world.Photo by Louis Hansel on UnsplashIndia takes top spotIndia, in particular, shines as the torchbearer of cryptocurrency adoption in the region, securing its position as the largest cryptocurrency market. It not only leads the way in grassroots adoption but has also ascended to become the second-largest crypto market globally in terms of raw estimated transaction volume, eclipsing even some major global economies.It’s interesting that India should find itself in this position when you consider that a number of measures have been taken that could have been expected to dampen adoption. The Indian authorities introduced a 30% tax on capital gains earned through the sale of digital assets, as well as a 1% tax on Tax Deducted at Source (TDS) for all crypto transactions.Last month, Indian crypto exchange CoinDCX specifically cited these tax burdens, combined with the recent bear market, as being contributing factors in its decision to cut its workforce by 12%. Another excerpt of the Chainalysis report explicitly refers to these measures and their potential to retard cryptocurrency use.Adoption despite bear marketDespite a temporary downturn in worldwide grassroots cryptocurrency adoption, Chainalysis’ research finds that these developing Asian nations, have not only weathered the storm brought about by the recent bear market but have thrived, with their total grassroots adoption surpassing the levels of Q3 2020, just before the most recent bull market.Other countries featuring in the top ten include Vietnam (third), the Philippines (sixth), Indonesia (seventh), Pakistan (eighth), and Thailand (tenth). China, Turkey, Bangladesh, and Japan then feature within the top twenty.This data holds promise for the cryptocurrency landscape in the Asian region. Many of these nations are lower middle-income (LMI) countries that typically exhibit burgeoning industries and populations, collectively representing more than 40% of the global population. Chainalysis suggests that if these countries shape the future, cryptocurrencies are poised to play an indispensable role in shaping the global financial ecosystem.Institutional adoptionThe excerpt from the report also hints at the burgeoning trend of institutional adoption in high-income countries, even in the face of a lingering bear market. This suggests a potential dual-directional adoption scenario, where cryptocurrencies cater to the needs of users from both affluent and developing nations, bringing together a diverse spectrum of economic backgrounds.The report takes an optimistic outlook, stating:“Grassroots crypto adoption isn’t about which countries have the highest raw transaction volumes. . . . Instead, we want to highlight the countries where average, everyday people are embracing crypto the most.”“If LMI countries are the future, then the data indicates that crypto is going to be a big part of that future.”

Hana Bank to Establish Joint Digital Asset Custody Venture with BitGoSouth Korean commercial bank Hana Bank announced on Tuesday at Impact, the main event of Korea Blockchain Week (KBW) 2023, that it has signed an agreement with US-based digital asset trust company BitGo to undertake a joint venture for digital asset custody services in Korea.Photo by Chris Liverani on UnsplashBitGo’s Korean branch aims to kick off full-fledged operations for the venture in the second half of next year after obtaining Information Security Management System (ISMS) certification and completing registration as a virtual asset service provider (VASP).Fostering transparency and securityThe two entities will collaborate through multiple approaches, such as considering equity investments in the joint venture, working together on BitGo’s security solutions and digital asset custody technology, and leveraging Hana Bank’s expertise in financial services, security, and compliance. The scope of the partnership will expand as time goes on, they said.“By working with a global leader, we will contribute greatly to the enhancement of confidence in the Korean digital asset market as well as consumer protection,” Hana Bank said.BitGo’s ongoing global expansionBitGo has been offering digital asset custody services to institutional clients since 2013, serving over 1,500 institutions in more than 50 countries, including the US, Switzerland, and Germany. It also provides custodial services for over 700 different digital assets, including Bitcoin.“We aim to establish a long-term foundation in the Korean market, in line with the expected growth of the security token market there,” said Mike Belshe, CEO and Co-Founder of BitGo.

South Korea’s cryptocurrency market experienced notable growth in the second half of 2024, as total trading volume climbed to 1.35 quadrillion won ($968.5 billion). This marks a 24% increase compared to the 1.09 quadrillion won ($782.7 billion) recorded in the first half of the year. The data was released on May 20 by the Financial Intelligence Unit (FIU), which operates under the Financial Supervisory Service (FSS).Photo by Daniel Bernard on UnsplashTrading volume and market cap surgeThe average daily trading volume rose by 22%, reaching 7.3 trillion won ($5.26 billion), with a significant surge observed after October. According to the financial authority’s report, this sustained momentum was driven by a broader bullish trend in the global crypto market, led by Bitcoin hitting all-time highs. Growing institutional interest following the launch of multiple spot Bitcoin ETFs in the U.S. and increasingly favorable crypto-related policies have further fueled the rise in asset prices. To evaluate the state of the domestic crypto market, the FIU conducted a survey of 25 virtual asset service providers (VASPs) during the second half of 2024. The survey covered 17 exchanges as well as eight entities providing either custodial or wallet services. By the end of 2024, South Korea’s total crypto market cap had surged to 107.7 trillion won ($77.55 billion), representing a 91% increase from 56.5 trillion won ($40.68 billion) in June. In contrast, the global crypto market grew by 60% over the same period, reaching a total of $3.59 trillion. However, the Korean market experienced a sharp decline in assets held by custodial and wallet service providers, which fell by 89% to 1.5 trillion won ($1.08 billion). This drop was largely attributed to a rise in business closures. Additionally, the number of users on these platforms plummeted by 99%, falling to just 1,300 customers who had completed Know Your Customer (KYC) verification. Performance and token preferencesDespite these setbacks, the 25 VASPs reported combined revenues of 1.22 trillion won ($878.5 million), marking a 15% increase. Operating profit also rose by 27% to 744.6 billion won ($536.2 million). However, capital adequacy weakened, with the capital-to-asset ratio falling by 12 percentage points to 36.5%. Meanwhile, Korean won deposits—cash held on platforms for trading—more than doubled, surging 114% to 10.7 trillion won ($7.7 billion). The number of employees at crypto exchanges increased by 18%, reaching 1,862, while staff dedicated to anti-money laundering (AML) efforts rose by 46% to 207 individuals. On average, fiat-to-crypto exchanges offered trading in 224 different tokens, an increase of 28 compared to the previous half-year. Among the top 10 cryptocurrencies by market cap in Korea, six—Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), Dogecoin (DOGE) and Cardano (ADA)—also appeared in the global top 10. Collectively, these accounted for 71% of Korea’s total crypto market cap. However, the remaining four differed: Korean investors favored Ethereum Classic (ETC), Shiba Inu (SHIB), Stellar (XLM) and Bitcoin Cash (BCH), whereas global investors leaned toward Tether (USDT), Binance Coin (BNB), USD Coin (USDC) and TRON (TRX). User base growth and demographic trendsThe number of KYC-verified users eligible to trade reached 9.7 million in the second half of 2024, representing a 25% increase from the previous period. Individual users accounted for the vast majority, while corporate users made up less than 0.01% of the total. By age group, users in their 30s accounted for the largest share at 29%, followed by those in their 40s (27%), 20s and younger (19%), 50s (18%) and 60s and older (7%). The majority of users—66%, or roughly 6.37 million people—held less than 500,000 won ($360) in digital assets. In contrast, 12% of users held over 10 million won ($7,180), while 2.3% had portfolios exceeding 100 million won ($71,820).