Bgin Blockchain files for Nasdaq listing

Regulatory Caution Among Asian Nations Amid Reports of Illicit FinancingWith a plethora of reports of crypto-related terrorist financing having been published in recent weeks, it’s understood that Asian nations may be looking to exercise caution when it comes to the current ongoing process of establishing regulatory guidelines for crypto.That’s according to a report published by the South China Morning Post (SCMP) on Thursday. The use of cryptocurrency by Hamas to fund its attack on Israel is being seen as the catalyst that may drive authorities in various Asian nations to take a more cautious approach to regulating digital currencies, according to analysts cited by the publication.Raj Kapoor, the founder of India Blockchain Alliance (IBA), commented on these recent developments, stating:”It is a kick on the backside for most governments. All regulatory bodies will take a closer look at crypto regulation. Governments will need to start implementing new rules and regulations.”At the recent G20 summit held in New Delhi, a joint declaration called for the regulation, supervision, and oversight of crypto assets, among other measures. The declaration emphasized the importance of supporting “a coordinated and comprehensive policy and regulatory framework.”Kapoor stressed the importance of revisiting the declaration and developing solutions to implement its objectives.Photo by Adolfo Félix on UnsplashRenewed scrutinyEvents in Palestine in recent weeks have led to renewed scrutiny when it comes to monitoring illicit financing activity via cryptocurrency. Only days following the recent Hamas attack, Israeli authorities moved to freeze specified crypto accounts.That scrutiny has continued in recent days, with more accounts having been frozen on crypto platforms such as Binance, while more still have been identified as suspicious, with requests for further information having been submitted in respect of over 200 additional accounts.On Wednesday it emerged that the United States Treasury’s Office of Foreign Assets Control (OFAC) had sanctioned a Gaza-based crypto platform.Potential over-reactionWhile crypto-related terrorist financing has been widely publicized, blockchain analytics firm Chainalysis warned on Wednesday that crypto’s role in this illicit activity has likely been overstated. In its blog post on the subject, the firm stated:“Although terrorism financing is a very small portion of the already very small portion of cryptocurrency transaction volume that is illicit, some terrorist organizations raise, store, and transfer funds using cryptocurrency.”Additionally, Chainalysis stated that it had seen “overstated metrics and flawed analyses of these terrorist groups’ use of cryptocurrency.” Peter Van Valkenburgh, Director of Research at non-profit crypto advocacy group Coin Center, also believes that reporting on the matter is not balanced. Taking to X, he stated:“Sensational early reporting on the scale of Hamas crypto fundraising significantly misstated the amounts involved.”Coin Center’s Director of Communications, Neeraj Agrawal, highlighted an article which claimed that crypto “fueled Hamas’ terror attack on Israel” in its title, only to reveal within the body of the article that “cryptocurrency is still far from the largest funding source for terrorism.”Anndy Lian, a Singapore-based author and inter-governmental blockchain adviser, noted that while some countries may consider banning cryptocurrencies as a solution, this could merely drive illicit financing underground and make it more challenging to trace and halt. Lian argued that cryptocurrencies are traceable and trackable, unlike traditional fiat currencies like US dollars.

Many Countries Are Welcoming Traditional Financial Institutions Into Crypto — When Will Korea Catch Up?Although overseas traditional financial institutions are gradually expanding their reach into the crypto market by launching related services and products, this remains challenging for institutions in South Korea, where it is difficult for them to even invest in virtual assets.Photo by NASA on UnsplashMajor developments in other countriesAccording to industry sources, traditional financial companies such as Japan’s largest investment bank and brokerage group Nomura Group, and New York-based investment banking company Citigroup are starting to bring new crypto-related services and products to the market.Laser Digital, the asset management unit of Nomura Group, launched a Bitcoin adoption fund targeting institutional investors, according to an official press release from last Tuesday (local time), which will provide institutional investors with direct and secure access to investments in Bitcoin.Similarly, Citigroup’s Treasury and Trade Solutions (TTS) is piloting its new crypto-based cash management and trade finance service dubbed Citi Token Services, which caters to institutional clients by utilizing blockchain and smart contract technology to provide digital asset solutions. “Digital asset technologies have the potential to upgrade the regulated financial system by applying new technologies to existing legal instruments and well-established regulatory frameworks. The development of Citi Token Services is part of our journey to deliver real-time, always-on, next-generation transaction banking services to our institutional clients,” said Shahmir Khaliq, Global Head of Services at Citi.Earlier this summer, several asset managers in the US, including BlackRock, applied for a spot-traded Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC), drawing the interest of the industry as a whole. The SEC has been delaying its decision regarding approval for the ETF and will likely do so until its allotted 240-day review period is over, but industry experts predict that the approval will go through for several reasons including BlackRock’s implicit influence as the world’s biggest asset manager and the SEC’s former court loss against Grayscale for its review of the firm’s spot Bitcoin ETF.These developments are made possible through the commonly held opinion that the involvement of traditional financial institutions in the crypto sphere is beneficial for the industry due to their ability to increase liquidity by moving much larger amounts of capital than the crypto market alone.Moreover, many countries around the world already allow institutions to invest in virtual assets. For instance, the US Nasdaq Stock Market has already listed crypto futures-based ETFs such as Bitcoin and Ether, and there are trust products on the market like Grayscale’s Bitcoin Trust that target qualified investors. Countries like Hong Kong have also gradually begun to allow individual investments in virtual assets again, while institutional investment has always been permitted.Roadblocks in KoreaIn contrast, it remains impossible for institutional or corporate investors in Korea to invest in virtual assets, let alone offer virtual asset fund products. Although local asset managers like Mirae Asset Global Investments and Samsung Asset Management have listed Bitcoin-related ETFs in the US and Hong Kong, such products do not exist in South Korea.Korean authorities also banned financial institutions from holding, purchasing, or investing in virtual assets back in 2017 on the grounds that their investment in cryptocurrencies could stimulate investor sentiment. Also, shadow regulation after the enactment of the Act on Reporting and Using Specified Financial Transaction Information in 2021 practically bars local corporations and institutions from using crypto exchanges, though there is no provision that explicitly prohibits opening corporate bank accounts on crypto exchanges.In response to this situation, an anonymous industry insider highlighted the need for a nationwide drive to support virtual assets and Web3 technology. “This is the time to push emerging industries, and we should not overlook industry trends. The current situation is somewhat frustrating,” they said. “Japan was the most conservative country in this regard, but it has recently opened up and subsequently gained momentum. Korea should also take a more progressive approach.”

In an interview with local media, Hong Kong legislator Johnny Ng called for the Chinese autonomous territory to implement a national Bitcoin reserve. Ng made the comments in a discussion with Hong Kong-based state-owned Chinese language media outlet, Wenweipo. The legislator believes that there is an opportunity for Hong Kong to take advantage of China’s “one country, two systems” approach to governance, which gives it the freedom to implement such a reserve despite mainland China remaining much less enthusiastic where Bitcoin and cryptocurrencies are concerned.Photo by Kanchanara on UnsplashSpot Bitcoin ETF impactThe Hong Kong Legislative Council member suggested that as a first step, Hong Kong needs to assess the impact that spot Bitcoin exchange-traded funds (ETFs) in the United States have had. Spot Bitcoin ETFs were launched in the U.S. in January. The leading spot Bitcoin ETF, IBIT, provided by asset manager BlackRock, has achieved a growth rate five times faster than any other ETF launched in the past. El Salvador and the Kingdom of Bhutan are examples of nations that have made Bitcoin a significant component within their national reserves. A recent report suggests that El Salvador currently holds 6,000 Bitcoin which it purchased at an average price of $45,465. In November, Arkham Intelligence reported that Bhutan was holding Bitcoin with a dollar value which had exceeded $1 billion at that time. Ng also referred to a move by individual states in the U.S. towards holding Bitcoin as a reserve asset. In August, the state of Wisconsin increased its holdings of shares in BlackRock’s spot Bitcoin ETF, IBIT. Last month, the state of Pennsylvania introduced a bill to make Bitcoin a strategic asset. Ohio has proposed similar legislation while Alabama’s State Auditor, Andrew Sorrell, has suggested that his state should establish a Bitcoin reserve. Reducing price volatilityNg believes that furthering the Chinese autonomous territory’s dealings relative to Bitcoin could prove beneficial, given that Bitcoin has the potential to play a role in attracting more talent and investment to Hong Kong. Additionally, he feels that the development of Bitcoin reserves at state level could help in reducing the price volatility of the asset as it goes through the process of global adoption. The Hong Kong lawmaker also believes that there is an opportunity for the Chinese antonymous territory to benefit from first mover advantage, stating that “the value of Bitcoin will be more stable, causing more and more other countries to follow suit and reduce their holdings of traditional assets.” Ng's latest interview follows a similar comment he made on X in July, where he suggested that Bitcoin is worth considering as an official financial reserve for a country. David Bailey, CEO of Bitcoin Magazine, took to X stating: “Hong Kong making moves, SBR here we go. President Trump must make the Strategic Bitcoin Reserve his top priority the day he enters the White House.”In recent days, soundings from Japan and Russia suggested that neither of these countries was prepared to establish Bitcoin reserves. However, just like with the advent of the Bitcoin ETF in the U.S., following Trump’s expression of interest in the establishment of a strategic Bitcoin reserve, the level of consideration of the matter has increased considerably among governments around the world.