Singapore’s Whampoa Plans Crypto-Friendly Bank in Bahrain

Hong Kong’s HashKey Adds AVAX TradingHashKey Hong Kong, the Chinese autonomous territory’s first licensed retail crypto exchange, has unveiled an addition to its platform with the launch of Avalanche (AVAX) trading.According to an announcement published to its website on Wednesday, HashKey has listed Avalanche on Thursday with the caveat that access to AVAX trading will be reserved for professional investors, as defined by Hong Kong’s Securities & Futures Commission (SFC).Photo by Wance Paleri on UnsplashAccessible to professional investorsTo meet the criteria as a professional investor in Hong Kong, individuals must possess an investment portfolio valued at a minimum of 8 million Hong Kong dollars, roughly equivalent to $1 million. This decision sets AVAX apart from other widely traded cryptocurrencies, such as Bitcoin and Ether, which remain accessible to retail investors in Hong Kong. While Tether (USDT) enjoys retail status, the majority of altcoins on HashKey will remain the preserve of professional investors.This move is a direct result of the SFC’s proactive stance on regulating the rapidly expanding crypto market in Hong Kong. Since the introduction of regulated retail crypto trading in the Chinese autonomous territory in August, the SFC has imposed rigorous requirements on exchanges. HashKey mandates users to deposit a minimum of 10,000 Hong Kong dollars or $1,500 into their exchange accounts as part of the Know Your Customer (KYC) verification process.Low trading volumeAmid these regulatory challenges, HashKey Hong Kong currently reports a 24-hour trading volume of approximately $5.3 million, significantly lower than its global peers. This lower trading volume suggests that stringent regulations may be affecting the exchange’s ability to attract retail investors effectively.The path to regulatory compliance in Hong Kong has been anything but smooth for crypto exchanges. Reports indicate that these platforms have collectively invested over $25 million in establishing the requisite infrastructure for obtaining a Hong Kong Virtual Asset Service Provider (VASP) license. It was reported earlier this year that crypto firms are forking out between $2.55 million and $25.5 million in order to secure a VASP trading license.Despite the challenges, HashKey is looking at various avenues in bringing its offering forward. Earlier this month the firm signed a memorandum of understanding (MOU) with insurer OneDegree. That collaboration could be significant as it should lead to the assets of HashKey users being protected and insured on the platform. That would solve a major issue for participants in the crypto space amid the backdrop of ongoing platform failures and hacks.JPEX collapseEven as regulatory efforts intensify, the crypto industry in Hong Kong has not been impervious to bad actors. The recent collapse of the JPEX crypto exchange earlier this month serves as a stark reminder of the ongoing risks associated with the industry. Described as the largest financial fraud in Hong Kong’s history, JPEX faced allegations of embezzling over $178 million of investors’ funds. Notably, JPEX was operating without SFC registration at the time of the alleged embezzlement.In response to such incidents, the SFC has taken proactive measures by publishing a warning list of crypto exchanges considered non-compliant within the Chinese autonomous territory.

Atomic Wallet Hacker Uses Lazarus Crypto MixerThe stolen cryptocurrency from the recent $35 million hack of Atomic Wallet is already being moved to a crypto mixer favored by North Korea’s notorious cyber-hacking group.Photo by Micha Brändli on UnsplashSinbad.ioAccording to UK-based crypto compliance analysis firm Elliptic, the funds have made their way to a crypto mixer used by Lazarus Group, a notorious hacker group that focuses on crypto heists which is believed to have direct ties with the North Korean government.On June 5, Elliptic’s Investigations Team revealed that it had traced the funds from the Atomic Wallet hack to the crypto mixer Sinbad.io. Lazarus had previously used the mixer to launder over $100 million in stolen crypto assets.While the exact amount sent to the mixer was not specified, Elliptic noted that the stolen funds were being exchanged for Bitcoin before undergoing obfuscation through the mixer. Additionally, Elliptic reported that Sinbad.io is likely a rebranded version of Blender.io, another mixer extensively used to launder funds by the Lazarus Group. Blender.io has been sanctioned by the US Treasury.Atomic Wallet hackThe hack of several user accounts on Atomic Wallet occurred on June 3, resulting in losses of up to $35 million. News of the issue broke with the following tweet from the project team (which has subsequently been deleted): “We have received reports of wallets being compromised. We are doing all we can to investigate and analyze the situation. As we have more information, we will share it accordingly.”In a follow-up tweet the next day, the team confirmed that it was investigating the matter with the assistance of a number of “leading security companies.”However, Atomic Wallet later downplayed the incident, stating that less than 1% of its monthly active users were affected. The project team was castigated by users for trying to present the hack as a minor incident. One user took to Twitter to call out the Atomic Wallet team for “having the nerve to come to the networks and say that only 1% of wallets were affected.”The Atomic Wallet project is based out of Tallinn, Estonia, having been founded in 2017. It claims to provide a non-custodial decentralized multi-currency crypto wallet. The product supports over fifty coins and two hundred tokens. It also offers atomic swaps between digital assets, while also supporting integrations with instant exchanges such as Changelly, ShapeShift, and others.Roland Säde, the Chief Marketing Officer of Atomic Wallet, assured users that the team is working tirelessly to recover the stolen funds. He emphasized the need to complete the investigation to develop a concrete plan.Despite the ongoing efforts, Säde urged victims to track the illicit transfers and report them to popular crypto exchanges. By doing so, it was thought that may hinder the scammers from exchanging the funds.Crypto hacking menaceLazarus Group hackers have been the bane of the crypto space in recent years. Elliptic released a report last month that identified Japan as having been the country most adversely affected by the North Korean hackers. It’s understood that the estimated $721 million in stolen crypto from Japan-based entities amounts to nearly nine times the value of North Korea’s exports based on 2021 data.While Atomic Wallet is directly reporting the incidents, Säde believes that having more individuals monitoring the hackers’ activities will make it more challenging for them to move the funds undetected. Unfortunately, Elliptic’s recent findings suggest that for many victims, it may already be too late to prevent further misuse of their stolen cryptocurrency.

Worldcoin, the startup co-founded by OpenAI CEO Sam Altman, has encountered setbacks in its eye-scanning initiatives just six months after its international expansion. A recent report by TechCrunch indicates that the company’s signature orb eye-scanner is no longer available to users in the Indian market. According to that report, the Worldcoin Foundation clarified that its activities have also been suspended in France and Brazil. The company clarified that its offerings in those markets were only intended to be limited-time product previews as opposed to long-term roll-outs.Photo by Big G Media on UnsplashTemporary service haltIn India, the World App is experiencing widespread adoption, but the orb-verified proof of personhood services has been temporarily halted. The pause aims to allow the protocol to develop and implement a bespoke, safe and orderly process to meet the growing demand. The setback comes after Tools for Humanity, the organization behind Worldcoin, announced the expansion of World ID, its digital identity program linked to iris scans, in July. The startup had ambitious plans, intending to make 1,500 orbs available in over 35 cities globally. Recently, the company unveiled a program offering $5 million in grants to developers utilizing its eye-scanning technology. Regulatory investigationsSam Altman and his co-founders established Worldcoin in 2020 to help individuals prove their digital identity amidst the rise of AI. Over the years, Worldcoin has secured $250 million in funding from notable venture capitalists, including Andreessen Horowitz. However, the startup has faced regulatory challenges, including investigations by French and German regulators and an Argentinian government agency. Altman, himself, has navigated recent challenges. In November, the OpenAI board temporarily removed him as CEO, reinstating him two weeks later. More recently, Fortune reported that Altman quietly received $75 million from the University of Michigan for a new venture capital fund, raising questions about transparency, particularly following the launch of OpenAI’s signature product, ChatGPT. Asian tourIn recent weeks, the project development team behind Worldcoin had engaged in a tour of Asia. The objective of that mission was to gather market feedback prior to engaging in greater efforts to expand the reach of its World ID verification system within the region. To gauge market receptiveness to its product offering, the tour included meetups in major Asian cities such as Hong Kong, Seoul, Singapore and Tokyo. Up until mid-November, the Asian region accounted for 1.4 million World App sign-ups.The introduction of World ID 2.0 by the company on Dec. 13 led to a surge in the price of WLD. Over the course of the 48 hours that followed, it jumped from $2.47 to $4.23, a 71% increase. At the time of writing, the token unit price stood at $3.66. As Worldcoin navigates these challenges, the cryptocurrency industry will closely monitor developments, recognizing the broader implications for the startup’s innovative approach to digital identity verification.