SBI–Zodia venture to shut down amid Japan crypto regulatory hurdles

Korean Parliament to Hold Hearing on Virtual Assets Amid ControversiesThe National Policy Committee (NPC) of the South Korean National Assembly has reached an agreement to conduct a hearing on virtual assets next month. This decision comes following discussions between the ruling and opposition parties, as reported by local news outlet Kukinews.Photo by KS KYUNG on UnsplashHearing dateLawmakers Yoon Han-hong and Kim Jong-min, who serve as administrative secretaries of the NPC, have agreed today to hold the virtual assets hearing on July 11. Yoon is a member of the ruling People Power Party (PPP), and Kim is a member of the opposition Democratic Party of Korea (DPK).During a full session held this afternoon, Lawmaker Kim proposed the idea of a hearing on virtual assets, to which NPC Chair Back Hye-ryun agreed.Growing public interestToday’s meeting was organized to foster a better understanding of the current issues surrounding virtual assets, given the increasing public interest, particularly in light of the recent controversy involving Lawmaker Kim Nam-kook’s alleged ownership of cryptocurrency tokens and the employment of PPP leader Kim Gi-hyeon’s son in a crypto-related company.The NPC intends to finalize the plan for the hearing on June 30, just before the plenary session on the day. The specific focus of the hearing and the participants, including witnesses, will be determined through consultations between the administrative secretaries.

Hong Kong securities group proposes ICOs as growth opportunityKey stakeholders in Hong Kong’s financial world are contemplating a transformative shift in the Chinese autonomous territory’s digital asset strategy that concerns furthering initial coin offerings (ICOs).Photo by Qinyi Lian on UnsplashRoom for improvementIn a recent letter signed by Chen Zhihua, President of the Hong Kong Securities and Futures Professionals Association (HKSFPA) and published to the HKSFPA website on Wednesday, the introduction of an ICO mechanism as a potential catalyst for the city’s economic revival has been proposed.The letter, which provided the HKSFPA’s “opinions on the 2024–2025 budget,” included the ICO suggestion as recommendation №10 on a list of various proposals. The suggestion comes amid ongoing efforts to navigate the economic challenges posed by the pandemic. Zhihua acknowledges the developmental approach taken by Hong Kong Chief Executive John Lee where financial sector strategy is concerned, but emphasizes the industry group’s belief in the room for improvement that exists to stimulate Hong Kong’s financial sector further.Formalizing ICOsFormalizing ICOs in Hong Kong could establish a supportive environment for crypto startups and investors seeking regulated and secure opportunities. The proposal aligns with a broader call for government engagement in economic recovery and policy-making, emphasizing a collaborative approach toward the crypto sector. This inclusive stance signals a forward-thinking perspective that could lead to more supportive policies and frameworks, fostering a conducive environment for crypto innovation and growth.Reflecting on the history of ICOs, the letter acknowledges the fundraising method’s evolution since the attention garnered by the Mastercoin ICO in 2013 and Ethereum’s significant milestone in 2014. The ICO boom of 2017 saw projects like EOS and Tezos raising substantial funds, accompanied by both enthusiasm for fundraising ease and concerns about investor protection due to minimal regulation.Fraud concernsWhile the ICO boom faced regulatory scrutiny and witnessed instances of fraud and scams, a progressive approach by financial regions such as Hong Kong could reshape the global perception of ICOs. The letter suggests that, under favorable terms, ICOs could play a pivotal role in revitalizing the digital asset landscape.Zhihua underscores the importance of addressing potential challenges by urgently reviewing and enhancing anti-money laundering (AML) and counter-terrorist financing legislation. This cautious approach aims to ensure that ICOs in Hong Kong adhere to established frameworks, avoiding the pitfalls associated with unregulated fundraising.While that’s the HKSFPA’s position, the initial flurry of ICOs a number of years ago involved many projects proposed by scammers and fraudsters. At the time, the Hong Kong Securities and Futures Commission (SFC) recognized the development as “downright fraud” and put pressure on exchanges to delist many tokens.One other related element that the letter proposes is in integrating environmental, social and governance (ESG) and Islamic finance elements into investment immigration policies. This forward-thinking approach reflects a growing awareness of ethical and sustainable investment practices that could potentially position Hong Kong to set new standards for responsible investment.

While South Korea’s central bank has opted not to accumulate Bitcoin (BTC) at a nation-state level, North Korea has become a major holder of the leading crypto asset, albeit in a very unconventional way. The Democratic People's Republic of Korea (North Korea) is believed to currently be in possession of 13,518 BTC. That’s according to data compiled by the blockchain analytics firm Arkham Intelligence. Arkham has labeled the holding as belonging to the notorious North Korean hacking organization Lazarus Group. It’s been alleged by many observers over recent years that Lazarus is controlled by the North Korean government. Photo by Vasilis Chatzopoulos on UnsplashOn this basis, it would appear that North Korea now has a larger Bitcoin holding than the Bitcoin-friendly jurisdictions of Bhutan and El Salvador. The Kingdom of Bhutan holds 10,635 BTC through Druk Holdings and Investments (DHI), the commercial arm of the Royal Government of Bhutan.  Meanwhile, El Salvador holds 6,119 BTC. Bhutan has been accumulating Bitcoin as a consequence of Bitcoin mining activity carried out by the government in partnership with Singapore-based Bitcoin mining firm Bitdeer and others within the Asian country over recent years. El Salvador made a commitment to buy Bitcoin on an ongoing basis following its recognition of the digital asset as legal tender back in 2021. Based on Bitcoin pricing at the time of writing, Arkham’s data suggests that North Korea currently holds Bitcoin with an overall value of around $1.14 billion. It’s believed that North Korea’s overall holdings have been bumped up recently following a $1.4 billion hack of global crypto exchange Bybit last month. According to crypto data analysis firm Coin Metrics, the hack stands as one of the largest of all time.  Arkham’s data suggests that North Korea now has the third largest nation-state holding of Bitcoin, with the U.S. in first place, with 198,109 BTC, and the UK next with a holding of 61,245 BTC. Besides Bitcoin, the Lazarus Group is understood to be sitting on ETH, BNB, DAI and BUSD worth in the region of $30 million. In the immediate aftermath of the hack, the hackers moved to swap out some of the stolen Ether (ETH) for Bitcoin via the THORChain decentralized liquidity protocol. South Korea not building Bitcoin reserveWhile North Korea appears to have accumulated Bitcoin at the nation-state level through nefarious means, the Republic of Korea’s (South Korea) central bank has given an indication that it currently has no plans to accumulate Bitcoin.  According to a recent local media report, the Bank of Korea (BOK) responded in writing to a query from a Korean parliamentarian, outlining that there is no plan currently to develop a Bitcoin reserve or to stockpile Bitcoin at a national level.  The BOK is understood to have cited Bitcoin’s price volatility as a major concern. Additionally, the central bank outlined that Bitcoin doesn’t conform to the International Monetary Fund’s (IMF) guidelines relative to foreign exchange reserve management.