Coinone adds new security features

As the cryptocurrency market anticipates the approval of a spot bitcoin exchange-traded fund (ETF) in the United States and the subsequent boost to bitcoin’s unit price, Arthur Hayes, Chief Investment Officer (CIO) of family office Maelstrom, has issued a warning of potential market turbulence. Hayes, better known as the founder of crypto derivatives platform BitMEX, has moved on to Hong Kong-based Maelstrom, a family office that invests in early stage infrastructure ventures that implicate a move towards the decentralization of everything.Photo by Kanchanara on UnsplashMacroeconomic risk factorsIn a detailed blog post on Friday, Hayes outlines a number of macroeconomic variables that could lead to a bitcoin unit price downturn. Hayes begins by highlighting the depletion of the Federal Reserve’s reverse repo program (RRP), which has served as a significant driver for risky assets over the past year. This program allows qualified banks and investment firms to park cash and earn interest on it. The RRP balance has rapidly declined from a record high of $2.5 trillion at the end of 2022 to $700 billion. Hayes projects it to reach its historical average of $200 billion by March. As this liquidity source dwindles, he anticipates negative impacts on bonds and stocks, as well as cryptocurrencies. Fed BTFP expirationThe second factor contributing to the potential market turmoil is the expiration of the Bank Term Funding Program (BTFP) on March 12. This crucial Fed facility is designed to provide longer-term loans to commercial banks. The mechanism aids banking sector stability. Hayes is concerned that the BTFP might not be extended. Such an eventuality could lead to bankruptcy for banks holding massive unrealized losses on their bond holdings. It could lead to a “liquidity rug pull” event reminiscent of the banking crisis in March of the previous year. The crypto OG predicts that such an eventuality would force a response. “The combination of a lack of liquidity gushing from the RRP and the lack of printed money to cover the bond losses on banks’ balance sheets will decimate the financial markets globally,” he wrote. Hayes asserts that the combination of reduced liquidity from the RRP and the lack of printed money to cover bond losses could have a global impact on financial markets. In response to this scenario, he predicts that the Fed will cut interest rates during its March 20 meeting and reinstate the BTFP funding line. ‘Healthy’ correctionIn terms of bitcoin’s price, Hayes foresees a “healthy” correction of 20% to 30% from early March prices if the outlined scenario unfolds. However, he suggests the decline could be as much as 40% if BTC rallies to $60,000-$70,000 in the coming weeks. Despite this temporary plunge, Hayes remains optimistic about bitcoin’s resilience, emphasizing its status as a neutral reserve hard currency that is not a liability of the banking system and is traded globally. In a recent podcast appearance, Hayes expressed the view that the business model of U.S. dollar stablecoin issuer Tether will be challenged once multinational banks receive the go-ahead to offer fiat-backed stablecoins. Overall, Arthur Hayes has urged investors to be cautious and to prepare for potential market volatility in March, emphasizing the importance of understanding the interconnected factors influencing both traditional finance and the cryptocurrency market. 

Bitget Exec Speaks to Utility of Enhanced KYCCrypto continues to undergo significant transformation as regulatory authorities across Asia tighten their grip on the industry. In response to these regulatory changes, Seychelles-headquartered Bitget has joined KuCoin and OKX, which have recently bolstered their Know Your Customer (KYC) measures to ensure compliance and safeguard their operations.In a recent interview with Cointelegraph, Bitget Managing Director Gracy Chen spoke to the utility of KYC measures, stating that KYC is useful in filtering out illegitimate users, particularly those engaged in activities such as money laundering.Photo by Pixabay on PexelsMeeting Asian regulatory requirementsThe Seychelles-based exchange with ties to China and Singapore recently announced updates to its KYC protocols. These changes come in the wake of the Monetary Authority of Singapore’s (MAS) directives, which advise financial institutions, including cryptocurrency exchanges, to implement robust risk management procedures. The MAS has taken a stringent stance, shutting down certain digital payment token service providers to prevent them from facilitating lending and staking activities by retail customers.Starting from October 1, Bitget will require users who have not completed level 1 KYC verification to be restricted from creating new trading orders. This move aims to ensure that users comply with the newly updated guidelines and maintain the integrity of the exchange’s operations.Following industry peersKuCoin and OKX, two other prominent exchanges which, like Bitget, have their corporate headquarters in Seychelles and a strong presence in Asia, have also revamped their KYC policies. While KuCoin initially introduced KYC in 2018, the exchange has strengthened its identity verification procedures, requiring users to upload documents and complete face checks.Furthermore, in July, it announced a mandatory KYC requirement, in line with anti-money laundering (AML) regulations. While the mandatory KYC requirement is already in force, the other changes are set to take effect at the end of the month.OKX, on the other hand, has implemented stringent requirements, including the submission of a government-issued ID selfie for users to access all its services. The exchange recently set a deadline for service users to complete KYC.Bitget’s Chen highlighted that its decision to embrace KYC measures was driven by a commitment to serving the market responsibly. She acknowledged that while some users may have reservations about KYC, it is a necessary step to maintain the integrity of the exchange and prevent illicit activities. Speaking at the fringes of the firm’s EmpowerX Summit in Singapore, Chen said:“I’m pretty sure if the user is a financially healthy user, such as, like, if they’re not doing something illegitimate, such as money laundering, they should be pretty comfortable with the KYC process.”Tightening regulationThe tightening of regulations in Asia is not limited to Singapore alone. Japan has also taken steps to enhance anti-money laundering measures related to cryptocurrency transactions, responding to international calls for stricter oversight. Additionally, South Korea’s Financial Services Commission (FSC) has announced plans to require companies to disclose details about their cryptocurrency holdings, expected values, and related business models in their financial statements, aligning crypto accounting with conventional financial reporting.These regulatory developments signify a broader trend in the region, with cryptocurrency service providers proactively adapting to the changing landscape. As governments and regulatory authorities take steps to address the potential risks associated with cryptocurrencies, exchanges are prioritizing compliance to ensure their longevity and continued growth.

The South Korean government and the Democratic Party of Korea (DPK) plan to finalize legislation governing Korean won–pegged stablecoins by March. According to local media outlet DataNews, the two sides will hold a closed-door meeting on Jan. 20 to discuss agenda items related to the proposed Digital Asset Basic Act, widely referred to as the second phase of South Korea’s cryptocurrency legislation. A key sticking point is who should be allowed to issue stablecoins. Financial regulators favor, at least initially, limiting issuance to consortia in which banks hold a majority stake (50% plus one share), citing concerns about financial-market stability. The Democratic Party, however, opposes granting banks majority control. Separately, the draft would require issuers to meet capital-adequacy standards and maintain reserves equal to at least 100% of outstanding stablecoins.Photo by Greg Willson on UnsplashCBDC pilots to streamline public fundsBeyond private stablecoins, the government is also exploring potential public-sector uses for central bank digital currencies (CBDCs), including pilot programs that would deploy CBDC-based deposit tokens. As part of a broader digital transformation push, officials aim to use CBDC rails for a significant portion of public funds administration. By June, CBDC-based deposit tokens are set to be used in an electric vehicle charging infrastructure project: buyers of approved chargers would receive tokens to help ensure subsidies go only to eligible purchases and to shorten settlement times. Regulators are also considering steps to expand institutional access to cryptocurrencies. Under one proposal, publicly listed companies would be allowed to invest up to 5% of their equity in digital assets annually. Eligible investments would be limited to the top 20 tokens traded on the country’s five largest exchanges, with the list reviewed every six months. It remains undecided whether stablecoins, including USDT, would be included. Another planned change would permit the trading of exchange-traded funds (ETFs) that track spot crypto prices. While current law does not recognize digital assets as eligible underlying assets for such products, that is expected to change under the forthcoming legislative revision. Exchanges say caps threaten growthAt the same time, proposed governance changes that could cap controlling stakes at around 15% to 20% have drawn pushback from industry groups. The draft Digital Asset Basic Act would reshape control structures at South Korea’s largest cryptocurrency exchanges—Upbit, Bithumb, Coinone, and Korbit—which together serve roughly 11 million users. Regulators at the Financial Services Commission (FSC) say the measures are intended to curb concentrated influence by founders and major shareholders, and are considering a framework modeled on rules for alternative trading systems (ATS) under the Capital Markets Act. Yonhap News reported that the Digital Asset eXchange Alliance (DAXA)—which includes the four exchanges above as well as Gopax—has warned the proposed governance restrictions could slow the growth of South Korea’s crypto industry. The group argued the changes would dilute the accountability of a clear controlling shareholder, particularly regarding custody and management of customers’ digital assets. DAXA urged regulators to adopt a framework aligned with global standards, warning that stricter caps could increase uncertainty for startups and discourage entrepreneurship and investment. Investors pour $2.4B into overseas crypto ETFsThe lack of domestically available spot crypto ETFs has also driven Korean investors to seek exposure overseas. According to the Korea Securities Depository, as cited by Edaily, Korean investors bought a net $2.37 billion of foreign crypto ETFs between Jan. 13, 2025, and Jan. 12, 2026, placing these products among the top 50 overseas securities by net purchases over the period. Those purchases included a mix of spot-linked products, crypto futures–based instruments, and funds tracking companies that hold digital assets on their balance sheets. Several of the most heavily purchased products involved leverage or options-based strategies, including the T-REX 2x Long BMNR Daily Target ETF ($573.1 million) and the YieldMax MSTR Option Income ETF ($493.9 million). Leverage-heavy demand has been a recurring feature of Korean retail trading. In an October report, Bloomberg noted that prospective homebuyers have increasingly turned to crypto in hopes of building capital, fueling appetite for higher-risk altcoins. Such tokens account for more than 80% of trading volume on local exchanges.