Taiwan Proposes New Crypto Business Category

Hyperithm, a digital asset management firm based in Tokyo and Seoul, has invested in JPYC Inc., the issuer of JPY Coin (JPYC), the first stablecoin pegged 1:1 to the Japanese yen. First launched in January 2021, JPYC is a legal Prepaid Payment Instrument in Japan that is issued on various blockchains, including Ethereum and Polygon. The total figure for the investment was not disclosed by either party.Photo by Precondo CA on UnsplashInsights from industry leaders"We believe that stablecoins linked to fiat currencies are essential to expanding the cryptocurrency ecosystem. Japan became one of the first countries to officially issue stablecoins after the revision of the Payment Services Act in June," said Lloyd Lee, CEO of Hyperithm. "We expect that the widespread adoption of JPYC will increase the inflow of Japanese capital into the cryptocurrency ecosystem." Noritaka Okabe, CEO of JPYC Inc., explained that the firm aims to create more connections between crypto and everyday life, forging an environment where everyone can participate in innovation and capital liquidity. JPYC Inc.'s strategic evolutionAlthough it is currently issued as a third-party Prepaid Payment Instrument, JPYC Inc. plans to acquire a license to conduct transactions including money transfers and electronic payments in accordance with the revision of the Payment Services Act, which took effect in June 2023. This will serve to strengthen the stablecoin’s trust structure and remove limits on remittances. After acquiring the license, Mitsubishi UFJ Financial Group, a bank holding and financial services company based in Tokyo, will be responsible for JPYC's fiat currency reserves. Pioneering crypto financeFounded in January 2018, Hyperithm provides crypto corporate finance services to institutional and upper-class investors. It is one of South Korea’s 29 companies that are licensed by the Financial Intelligence Unit (FIU) to operate as a Virtual Asset Service Provider (VASP). Notably, it raised $11 million in a series B funding round in 2021, which was led by former clients Hashed and Wemade Tree. The company’s CEO, Lee, was also listed on Forbes’ 30 Under 30 Asia under the Finance and Venture Capital category. 

The Enforcement Directorate (ED) — an Indian law enforcement agency — seized 90 crores ($10.5 million) from an online scam app called E-Nuggets with the help of global crypto exchange Binance.  ED is the governmental law enforcement agency responsible for enforcing economic laws and with that, tackling economic crime. According to a report published by Indian English language daily newspaper The Hindu, the online gaming app E-Nugget had cryptocurrencies worth $10 million stored in 70 different crypto wallet accounts spread across the three crypto exchanges.  Local Indian exchanges ZebPay and WazirX also aided the ED in its investigations and subsequent actions. The ED contacted these exchanges to block the wallet addresses and transfer the crypto assets to the agency’s wallet. Photo by Naveed Ahmed on UnsplashCrypto assets seizedThe ED, tasked with upholding such financial crimes, spearheaded the operation against E-Nuggets, an online gaming platform masquerading as a legitimate investment opportunity. Taking to the X social media platform on April 30, the Indian law enforcement agency stated: “ED, Kolkata led a successful operation against a major “online gaming app scam” known as “E-Nugget”. The E-Nugget app, masqueraded as a gaming platform, promised users high returns on their investments. Crypto assets which were taken into possession of ED are transferred into Crypto Wallet of ED.” 70 wallets implicatedWith cryptocurrencies valued at $10 million spread across 70 different wallet accounts on three crypto exchanges, the agency swiftly took action. E-Nuggets enticed unsuspecting investors with promises of substantial returns through its purported gaming interface. However, once investments were made, the platform vanished into thin air, leaving users unable to recoup their funds. The ED's investigation revealed a complex web of deceit, with the agency seizing properties totaling over 163 crores ($19.5 million), comprising cash, cryptocurrency holdings, account balances and office spaces. The scam involved the funneling of funds into digital assets through 2,500 dummy bank accounts, resulting in the discovery of 19 crores ($2.2 million) in cash. A first information report (FIR) filed at the Park Street Police Station in Kolkata, became the catalyst that triggered the ED case that was subsequently registered under the provisions of India’s Prevention of Money Laundering Act (PMLA). Masterminded by Aamir Khan, who was apprehended alongside accomplice Romen Agarwal, the scheme operated under the guise of digital transactions, which, ironically, facilitated its unraveling. Law enforcement agencies adeptly traced, froze and seized the illicit funds as they moved through the digital realm. Public ledger upends scammersCritics often point to the potential for cryptocurrency to facilitate money laundering. However, the inherent transparency of blockchain technology presents significant obstacles to such illicit activities. Notably, in the infamous 2016 Bitfinex hack, where hackers absconded with 119,756 Bitcoin, the culprits were eventually apprehended in 2022 while attempting to launder the stolen funds. The collaborative efforts between Binance, the ED, and local exchanges points to a developing commitment towards combating financial fraud within the cryptocurrency space. This wasn’t the first occasion in which Binance had cooperated with law enforcement on such matters. In October of last year, the company got with the Thai authorities to assist them in crushing a crypto-related scam. By leveraging blockchain's transparency and international cooperation, authorities can effectively dismantle illicit schemes, safeguarding investors and upholding the integrity of the digital asset ecosystem.

OKX, a global crypto exchange, is understood to be considering carrying out an initial public offering (IPO) in the United States. That’s according to a report published by The Information on June 22. The development indicates changing fortunes for the firm in North America. In February, the company agreed to pay a fine of $84 million and surrender revenues earned through U.S. customers of around $420 million to the U.S. Department of Justice (DoJ). Photo by appshunter.io on Unsplash‘New era for OKX’The DoJ had taken action against the crypto exchange on the basis of allegations of unlicensed money transfers. Having put this matter behind it and in taking advantage of a more positive regulatory approach to the crypto sector in the U.S. by the Trump administration, in April OKX relaunched its service offering in the U.S. The company described the newly launched service as a “new era for OKX in the U.S.” Another consequence of that positive regulatory approach in the U.S. has been a renewed interest from crypto companies in pursuing IPOs. Yueqi Yang, a reporter with The Information, stated on X: “From IPOs to crypto treasury stocks, crypto is booming right now, but the rally is playing out in the stock market, at valuations that even surprised industry insiders.” USDC stablecoin issuer Circle (CRCL) executed its IPO on the New York Stock Exchange (NYSE) on June 5. Circle’s experience is likely to be encouraging for other crypto firms considering going public. Since going public, the company’s stock has surged by more than 675%. Circle raised in excess of $1 billion with an IPO share price of $31. During Monday’s trading, the company’s market cap exceeded that of Coinbase (COIN). The current market environment has encouraged other crypto firms to follow suit. In March, American crypto exchange platform Gemini filed confidentially for an IPO. Bullish has also taken this option, according to reports earlier this month. Kraken, another global crypto exchange platform, has indicated that it intends to pursue an IPO in Q1 2026. OKB token holder fearsNews of OKX’s intentions to go public has led to crypto community discussions surrounding the use of an exchange token as a means of fundraising versus a traditional stock market listing. OKX launched OKB, its native token, in March 2018.  Commentators have pointed out that those who invest in traditional shares will have access to more liquid markets whereas platform token liquidity is oftentimes concentrated on that specific exchange. Some OKB token holders fear that following the IPO, their token will be sidelined or abandoned. OKX has been working towards expanding across various regional markets recently. Last year it launched OKX TR to cater towards the crypto community in Turkey. It also acquired trading licenses in Singapore and the United Arab Emirates (UAE).  It emerged last week that the company had launched its services in Germany and Poland having acquired regulatory approval in both countries.  OKX was first founded in Beijing in 2013, later moving its headquarters to the Seychelles due to regulatory changes in China.