FalconX further expands APAC reach into Hong Kong

Beleaguered Indian crypto exchange WazirX took to social media on April 21 to clarify to the company’s creditors that it is moving closer towards restarting the platform. While the company hasn’t gone into bankruptcy following a $230 million platform hack which occurred in July of last year, it is going through a restructuring process via the Singapore High Court. Posting on the X social media platform, the company addressed concerns surrounding the restarting of operations.  It said that it understood that users were keen to see the platform restart, while reminding stakeholders that from the outset of the process, it had forecasted a first distribution of user funds and a restart of the platform within the April to May 2025 timeframe. Photo by matthew6910 on UnsplashMay court hearingThe firm outlined that its parent company, Zettai PTE Limited, has accomplished all steps to date, in order to bring about the re-emergence of the platform. It has put forward a scheme of arrangement to the court to distribute assets available to it to creditors and bring the trading platform back online.  It identified a May 13 court date as being pivotal to these plans, when the Singapore High Court will hold a sanction hearing and determine whether it confirms the company’s restructuring plan. WazirX added: “While we’ve worked to stay aligned with the previously shared timelines, court proceedings operate independently, and we respect that process. After the Scheme is sanctioned, the First Distribution and restart will follow within 10 business days from the Effective Scheme Date, as outlined earlier.” 85% payoutEarlier this month, 93% of WazirX creditors, accounting for 94.6% of the overall funds owed, voted in favor of the company’s restructuring plan. As part of the plan, users would be compensated with a payout over several distributions of 85% of the overall funds they held on the platform as of July 18, 2024. The company also plans to issue creditors with a recovery token, in an effort to provide them with further value over time. This communication from the company followed the announcement of a court judgement last week by India’s Supreme Court dismissing a lawsuit filed by 54 WazirX users who have lost funds due to the 2024 hack. While the action was dismissed, one of the plaintiffs pointed out on X that the Supreme Court hadn’t indicated that their action lacked merit. He added:”Our criminal writ petition against #WazirX & Nischal Shetty & others was dismissed on jurisdictional grounds.” On that basis, it would appear that the company may still have to deal with such a complaint if brought via a different forum. Over the course of the past 12 months, the WazirX hack stands out alongside an almost $1.5 billion hack at Bybit. In both cases, fingers have been pointed at notorious North Korean hacking group, Lazarus. According to a report published by Chainalysis last December, $2.2 billion had been stolen from crypto platforms in 2024.

China introduces identity verification through RealDID on blockchainThe Chinese government, in collaboration with the Blockchain-based Service Network (BSN), has unveiled plans for the introduction of RealDID, a new digital identity service.Integrating blockchain into public systemsThis platform is set to bring blockchain-based digital identity verification processes into broader use, verifying the digital identities of China’s 1.4 billion people. Such an eventuality would represent a pivotal moment in China’s ongoing efforts to integrate advanced technologies into governance and public administration.The platform is being geared to deliver a spectrum of services, encompassing personal real-name confirmation, encrypted personal data protection and certification. Notably, it will enable private logins, establish business identities and offer personal identification certificate services, coupled with information vouchers on personal identity.Photo by Tamara Gak on UnsplashAnonymous online identityA standout feature of RealDID is its provision for Chinese citizens to register and access online portals anonymously through a Decentralized Identity (DID) address. This feature ensures the privacy of transactions and personal data, addressing global concerns over data security. The introduction of RealDID underscores China’s commitment to harmonizing technological advancement while at the same time, preserving the privacy of the individual.Although the specific roll-out date for RealDID across China’s vast population remains undisclosed, the potential impact of this initiative is monumental. The platform is poised to significantly enhance the security and efficiency of identity verification processes, a critical element in the realm of digital transactions and interactions.RealDID is a strategic component of China’s broader technological vision, aimed at solidifying its position as a global leader in emerging technologies. The nation has been actively investing in and regulating emerging innovations such as artificial intelligence, central bank digital currencies (CBDCs) and cryptocurrencies. In tandem with these endeavors, China is actively working to reduce its reliance on foreign semiconductor chips by boosting domestic production.BSN FoundationBSN, operated by China’s National Information Center, has forged partnerships with major tech players like China Mobile and China UnionPay, illustrating the collaborative nature of this national initiative. The network was co-founded by Hong Kong’s Red Date Technology. With the network originating in China, last month, the BSN Foundation was established in Singapore, featuring five global members.These included Blockdaemon; Zeeve, a Los Angeles-based blockchain infrastructure automation platform; TOKO, a Hong Kong-headquartered digital asset creation platform; Germany’s GFT Technologies; and Red Date Technology. The five will act as a governing body for the BSN Spartan Network.The unveiling of RealDID by the Chinese government signifies a significant stride in integrating blockchain technology into everyday governance and public services. Leveraging blockchain’s inherent decentralization and security features, RealDID aims to provide a more secure and efficient method of identity verification while upholding user privacy.This move aligns with the global trend of governments exploring blockchain technology for diverse public services, highlighting China’s interest in spearheading technological innovation. As the global landscape evolves, China’s strides in the realm of blockchain-based identity verification serve as a testament to its ongoing interest in the future of digital governance.

Thailand’s Securities and Exchange Commission (SEC), an independent state agency responsible for the supervision of capital markets including the digital assets sector within the Southeast Asian nation, has moved to block five cryptocurrency exchange platforms. In a statement published by the agency to its website on Thursday, May 29, the SEC outlined that it deems the five exchanges, namely OKX, Bybit, CoinEx, XT.com and 1000X.Live, to be unauthorized crypto trading platforms.Photo by REY MELVIN CARAAN on UnsplashCountering money laundering activityIt is acting against these platforms “to protect investors” and to prevent their use for money laundering purposes. In offering services to Thai users on an unauthorized basis, the exchanges were found to be in breach of Thailand’s Digital Asset Business Act B.E. 2561 (2018). The agency has asked the Ministry of Digital Economy and Society (MDES) to take measures to block local access to these online platforms. That block will be put in place on June 28. On that basis, the SEC has advised Thai users of such platforms to proceed to remove their assets from them before that June 28 deadline.  An updated version of the Royal Decree on Measures to Prevent and Suppress Technology-related Crime, (No. 2) B.E. 2568 (2025), was introduced by the Thai government in April. It facilitated the establishment of the Committee for the Prevention and Suppression of Technological Crime.  Following practices overseasThe committee met with the MDES in April, with the parties setting out the process through which unauthorized digital asset platforms would be restricted and blocked. On that occasion, similar practices carried out in other jurisdictions within the Asian region were referred to.  In December 2023 India’s Financial Intelligence Unit (FIU) moved to block nine offshore crypto exchanges, having issued them with compliance show-cause notices.  In April 2024 the Philippines SEC requested that Google and Apple remove apps associated with global exchange Binance from the local versions of their application stores. Japan’s Financial Services Agency (FSA) similarly ordered both companies to remove apps belonging to unregistered crypto exchanges in February of this year. Back in March, the Thai SEC filed a lawsuit against Aux Cayes FinTech Co. Ltd., an OKX affiliate company. The complaint alleged that OKX had been running an unlicensed exchange in Thailand, and was filed with the Economic Crime Suppression Division of the Thai police force. The SEC outlined on March 21 that a similar criminal complaint had been filed against XT.com. It’s understood that Bybit, CoinEx and 1000X.Live have also been recipients of complaints on the same basis. Earlier this year, the Economic Crime Suppression Division considered taking action against Polymarket, a crypto-based prediction market, on the basis that the platform violated Thailand’s gambling laws, and in doing so, posing a risk to economic and social stability in Thailand. In April 2024, the SEC issued a warning to crypto exchange platforms against the use of misleading advertising, drawing their attention to the fact that advertising of that nature would potentially place those platforms in breach of regulatory guidelines.