Korean Parliament to Hold Hearing on Virtual Assets Amid Controversies

Despite ongoing fluctuations in the cryptocurrency market, analysts suggest that sustained institutional activity is likely to underpin a near-term rebound. As Bitcoin recovered above $90,000 on Dec. 5, market observers began weighing potential risks against growing evidence of corporate and sovereign adoption.Photo by Austin Hervias on UnsplashStructural risks seen as limitedAccording to South Korean news outlet Etoday, Hong Sung-wook, a researcher at NH Investment & Securities, said that the recent slump in both Bitcoin and Strategy stock may weigh on shareholders but does not fundamentally threaten the company’s solvency. He noted that concerns that typically emerge during Bitcoin downturns seldom reflect new underlying risks. Addressing the potential removal of Strategy from the MSCI index, pending review results expected by Jan. 15, Hong indicated that the impact would likely be limited, as the firm has already exhausted its capacity to make additional Bitcoin purchases. However, he cautioned that prolonged share price weakness could force companies to reevaluate digital asset treasury (DAT) models. Such a shift, he warned, could trigger corporate sell-offs that would burden the broader market. Hong also addressed concerns related to stablecoins and future technology. Despite S&P Global Ratings assigning Tether its lowest grade of "weak," Hong observed that the issuer maintains reserves exceeding the USDT in circulation, rendering a mass withdrawal crisis unlikely. Regarding the threat of quantum computing, he argued that the timeline remains uncertain and that the Bitcoin network could mitigate future risks through consensus-driven protocol upgrades. Policy moves may offer market tailwindsLooking ahead, the analyst identified several constructive developments that could bolster the market, including the potential passage of a U.S. crypto market structure bill early next year. He also pointed to the anticipated nomination of Kevin Hassett as Federal Reserve Chair by President Trump. Hassett is expected to favor interest rate cuts, creating a potentially favorable macro environment. Additionally, Vanguard’s decision to permit the trading of select third-party crypto ETFs and mutual funds was cited as significant, given the asset manager’s historically conservative stance on digital assets. While the market has shifted into a broader risk-off mode, institutional demand for Bitcoin has continued to build, including activity that began well before the recent pullback. The Czech central bank recently established a $1 million test portfolio comprising Bitcoin, a USD stablecoin, and a tokenized deposit to research payment futures, though it clarified that it does not currently plan to add digital assets to its international reserves. In the academic sector, a Form 13F filing with the U.S. SEC revealed that Harvard Management Company, which oversees a $56.9 billion endowment, held 6.8 million shares of BlackRock’s iShares Bitcoin Trust ETF (IBIT) as of Sept. 30, a threefold increase from the previous quarter. Furthermore, BlackRock CEO Larry Fink reportedly stated at the New York Times DealBook Summit 2025 that multiple sovereign wealth funds have begun accumulating Bitcoin, according to Forbes. Korean banks advance crypto integrationThis shift toward institutional acceptance is also materializing within South Korea’s traditionally conservative banking sector. The Maeil Business Newspaper reported that Woori Bank recently became the first major South Korean lender to display real-time Bitcoin prices on its trading floor, allowing dealers to track the asset alongside equities and foreign exchange rates. Concurrently, Hana Financial Group announced a partnership with Dunamu, the operator of the Upbit exchange, to develop blockchain-based remittance services, according to The Korea Economic Daily. By leveraging Hana’s global network and Dunamu’s technology, the initiative aims to reduce settlement times and costs for cross-border payments. Hana intends to introduce the technology for transactions between its Korean offices and overseas branches as early as the first quarter of next year, with broader expansion planned as domestic regulations evolve. Hana intends to launch the service at overseas branches as early as the first quarter of next year, with gradual expansion planned as domestic regulations evolve. 

Gate.HK, cryptocurrency exchange Gate.io’s Hong Kong entity, is discontinuing its operations and has retracted its application for a crypto trading platform license with the local regulator. The company announced on Wednesday a planned "major overhaul" of its platform and has ceased new user registrations and deposits immediately. In compliance with local regulations, Gate.HK will delist all tokens—including major ones like Bitcoin, Ether and USDT—on May 28, urging users to withdraw their assets by August 28. The trading platform, which launched officially in May 2023, aims to re-enter the Hong Kong market in the future after securing the necessary approvals and contributing to the virtual asset ecosystem.Photo by Kelly Sikkema on UnsplashRegulatory environment and industry responseThe withdrawal of the license application, initially submitted in February 2023, was noted on the website of the Hong Kong Securities and Futures Commission (SFC) on May 22, without a disclosed reason for the withdrawal. The SFC mandates that crypto trading platforms without a submitted license application by Feb. 29 must shut down by May 31 or within three months upon receiving further notice. This regulation has impacted several platforms, including HKVAEX and Huobi HK, both of which have recently withdrawn their license applications and ceased operations or faced operational uncertainties in the region. Currently, the SFC is reviewing applications from 20 crypto firms, indicating significant interest among global exchanges in securing retail trading licenses in Hong Kong. 

Singapore’s SAI.TECH, a bitcoin miner and mining infrastructure hardware developer, has chosen to consolidate its product offering. The company has simplified its product range by categorizing them as Ultiaas, Boltbit, and Heatnuc. Virtual annual conferenceThe company took the opportunity to host SAITIME 2023, a virtual corporate annual conference, using the event as a platform to announce its SAIHUB product consolidation.Ultiaas will focus on the development of hardware and software products alongside integrated solutions, in order to enable liquid cooling and heat reuse capabilities while attempting to achieve optimized energy efficiency. In practical terms, these products convert mining chip heat into reusable energy.The team behind the Ultiaas product line believes that the technology can have a significant positive effect on data centers through the harnessing of chip heat in commercial, residential, industrial and agricultural locations. The firm has thoroughly tested the product, with its first successful operation at its testing and distribution facility in Ohio in the United States. According to a press release, the company says that “we look to tap into the state’s vast reservoir of clean energy.” With that, it is already working on the construction of a second site.The green bitcoin mining specialist recycles 90% of the waste heat produced in the mining process, thanks to the technology that it has developed.Boltbit concerns itself with the provision of decentralized transaction system services and technical support. It focuses on blockchain and lightning network technology. Lastly, Heatnuc will focus on the research and promotion of small modular reactors. Unusual price actionThe company, which listed on the Nasdaq last year following a special purpose acquisition companies (SPAC) merger in 2021, was the center of some speculative interest last week. The firm’s shares surged by over 360% to a high of $7.42 in one day’s trading. A week on, the share price has calmed down, trading at $3.68 on Friday. The rationale behind the short-lived share price surge remains a mystery. Kazakhstan scale-backIn August of last year, SAI.TECH decided to scale back an active bitcoin mining site that it is involved in in Kazakhstan. A second phase of the project would have brought 90 MW online. It is still working on phase 1 which will bring 15 MW online.Kazakhstan had seen an influx of bitcoin miners in the wake of a China mining ban a few years ago. The sudden surge in energy consumption on the Kazakh energy grid upset the national power supply, resulting in protests and riots. The country then pushed back against the miners, disconnecting many projects from the grid. It was against this background that it’s understood SAI.TECH decided to scale back its plans in the landlocked Eurasian country.