HTX resumes Bitcoin and Ether services post $30 million hack

Hashed, a blockchain-focused investment firm with bases in Seoul and San Francisco, announced on Tuesday (KST) that it has invested a total of KRW 36.8 billion ($28.4 million) in 29 distinct projects over the course of this year, as reported by Korean news outlet Etoday.Photo by Mathieu Stern on UnsplashInfrastructure, gaming and financeThe Web3 investor has distributed its funds across various sectors, allocating 21% each to infrastructure, gaming and finance. Geographically, their investments were also diverse: South Korea has received 38% of the funds, North America 21% and Europe 7%. Other Asian countries, including Singapore, accounted for 34%. Of the 29 investments Hashed undertook, 20 were new additions. The company participated in seed funding rounds for a variety of ventures: Radius, a shared sequencing layer; Decentralised Gaming Ventures, a builder of Web3 games; AnotherBall, the company behind the VTuber platform Izumo; and Delabs Games, a studio focused on Web3 gaming.The remaining nine were follow-up investments. Among these projects were Archway, a Cosmos-based layer 1 blockchain; Payhere, a provider of mobile point-of-sale (POS) systems; and Dfns, an API-first key management solution. Hashed Ventures, the company’s investment arm, oversees two funds: one with a capital of KRW 120 billion and the other with KRW 240 billion. Through these funds, Hashed has invested in a total of 86 portfolio companies. This year, some of their notable investments include public chain project Aptos, Web3 startup Story Protocol and decentralized exchange dYdX. It’s also noteworthy that 55% of the larger fund has been allocated to Korean companies. Blockchain community and talent developmentHashed’s impact in the blockchain sector extends beyond just financial investments. The Web3 company has supported the organization of approximately 80 meet-ups, including university hackathons and academic blockchain conferences. A notable example of their initiatives is Korea Blockchain Week, co-hosted annually with Web3 ecosystem builder Factblock since 2018. This event has become one of Asia’s largest blockchain gatherings, drawing over 10,000 visitors. In addition to these events, Hashed has been keen on nurturing talent in the blockchain space. Their Protocol Camp, a boot camp aimed at developing Web3 builders, has successfully produced 59 developers across five sessions. Furthermore, Hashed Open Research, the firm’s research division, is actively involved in shaping the blockchain landscape. They engage in research, organize seminars, and publish findings, all with the goal of offering policy recommendations and advancing understanding in the field. Hashed has reinforced its management system for portfolio companies, focusing on supporting early-stage startups. Their efforts include building a community dedicated to startup support, aiding in recruitment and business development strategies, providing data analysis services and engaging in promotional activities. Reflecting on the past year, Simon Seojoon Kim, CEO of Hashed, acknowledged that 2023 posed challenges for startups. However, he pointed out that the relatively calm market conditions provided Hashed with opportunities to uncover a range of innovative ideas. These ideas, according to Kim, have the potential to make significant contributions to the development of blockchain infrastructure and its applications in real-world scenarios. Looking forward, Kim expressed optimism about the growth prospects of their portfolio companies in the coming year. This optimism is partly based on the potential approval of spot bitcoin ETFs, which he believes could usher in robust participation from institutional investors. Additionally, Kim anticipates further growth driven by the expected launch of wallets by major global platforms, indicating a promising and dynamic future for the blockchain industry and Hashed’s investments.

News emanating from the Central Asian republics of Kyrgyzstan and Kazakhstan in recent days points to further rollout and development of cryptocurrency sector infrastructure. A press release published on March 26 outlined that Kyrgyzstan is working on various initiatives in order to copper-fasten its position as a regional crypto hub. Those efforts include the advancement of digital asset regulation, enabling the launch of licensed crypto platforms and ongoing trials of legal frameworks relative to crypto. Photo by Steve Johnson on UnsplashA7A5 stablecoinOne initiative that may aid in the development of the digital assets sector in Kyrgyzstan is the rollout of the A7A5 stablecoin. A7A5 is pegged to the Russian ruble, with the token having been issued by Kyrgyz company Old Vector. The product was first launched in February, with the intention for it to be used on the A7 cross-border payment platform of Russian state-owned bank Promsvyazbank. Garantex, a Russian crypto exchange which had been sanctioned by U.S. and European authorities and was recently shut down, announced on Feb. 19 the listing of the A7A5 stablecoin. The stablecoin’s backers claim that it was issued “in complete accordance with the new national legislation - under the control of regulatory authorities and directed to an officially registered, regulated broker.” The stablecoin is being promoted on the basis of an annual yield of up to 20%, which has been established due to its link to the refinancing rate of the central bank of the Russian Federation. Kazakhstan crypto bank proposalMeanwhile, lawmakers in Central Asian neighbor Kazakhstan have proposed the creation of a national crypto bank. According to The Times of Central Asia, an English-language daily newspaper, Azat Peruashev, leader of the Ak Zhol political party within Kazakhstan’s lower house of parliament, put forward the proposal, which would implicate the involvement of the National Bank of Kazakhstan and a number of the country’s commercial banks. Peruashev addressed the proposal to Kazakhstani Prime Minister Olzhas Bektenov. However, the Central Asian country may have some fundamental issues to address before a crypto bank can become a reality. Currently, Kazakhstan has yet to establish a legal framework for the use of digital assets.  Last year, the authorities shut down 36 cryptocurrency exchanges which were deemed to have been operating illegally. In total, 3,500 illegal crypto exchanges have been shut down in Kazakhstan. Leading American crypto exchange business Coinbase faced a setback in the Central Asian country in November 2023 when the government cut access to its website within the country. While these crypto businesses have struggled to operate in Kazakhstan, Binance Kazakhstan successfully obtained a trading license from the Astana Financial Services Authority (AFSA) in September of last year. Earlier this month, the company added options trading and futures copy trading to the platform. Blockchain industry pioneer Kyle Chasse took to X to report on this most recent development. He suggested that given that 90% of crypto activity in Kazakhstan is off the books, the authorities are interested in launching a crypto bank so as to bring it all under their control. 

INDODAX, Indonesia’s largest virtual asset trading platform by trading volume, has acquired full licensing in Indonesia from the local regulator. That’s according to a report published by local media outlet VOI. The license, a Physical Crypto Asset Trader (PFAK) license, has been awarded to the company by Indonesia’s Commodity Futures Trading Supervisory Agency, better known as BAPPEBTI.  The license will place INDODAX in a complaint position within the Indonesian market, relative to local regulations. The business has been issued certificate number 10/BAPPEBTI/PFAK/12/2024 by the regulator, its approval certificate as a Physical Crypto Asset Trader.Photo by Mark König on UnsplashMandatory registration requirementIn December 2023 the authorities in Indonesia set out a mandatory requirement for crypto trading entities to register with the Commodity Future Exchange (CFX). CFX is Indonesia’s national crypto bourse, while INDODAX is a member. As of April 2024, 35 crypto exchanges had been registered with the regulator. CFX has been given the mandate to monitor crypto exchange operations, to safeguard investors by ensuring exchanges abide by local regulations. Fendy Tan, chief financial officer (CFO) at INDODAX commented on the firm’s recent licensing milestone, stating: "We are grateful to BAPPEBTI and CFX for the trust given through this full license. The long process that must be passed reflects our commitment to providing the best protection for users. The license number 10 also has a special meaning, which symbolizes perfection, and symbolizes the 10-year journey of INDODAX in leading the crypto industry in Indonesia."  Liquidity and SOP requirementsIn order to acquire this license INDODAX had to comply with BAPPEBTI Regulation Number 8 of 2021 and Number 13 of 2022. It has also had to ensure a minimum paid-up capital of 100 billion Indonesian Rupiahs ($6,158,000), and a minimum equity of IDR 50 billion ($3,079,000). Furthermore, the company has had to implement a set of standard operating procedures (SOPs), together with achieving ISO certification in accordance with global security standards, with specific emphasis on complying with regulations to safeguard customer funds according to the balances held on account of fiat currency and digital assets by INDODAX customers. INDODAX is understood to have 7.1 million customers while a transaction volume of 109 trillion Indonesian rupiahs was reached for the period January to November 2024. BAPPEBTI had extended a deadline for the crypto licensing of exchanges late last year, a move welcomed at the time by INDODAX CEO Oscar Darmawan. Darmawan said that the move would strengthen the industry by ensuring that market participants were compliant with recently introduced regulations. While this licensing milestone is a positive for INDODAX, the firm had faced challenges in 2024. In September it emerged that the platform had been compromised with the loss of around $18 million in digital assets. Meanwhile, the authorities in Indonesia had planned to switch crypto market oversight from BAPPEBTI to the Financial Services Authority (OJK) by Jan. 12. However, a recent report published by the Jakarta Globe suggests that the Indonesian government has yet to finalize this regulatory transfer.