Hong Kong’s SFC Issues Warning Against Unlicensed Crypto Platforms

Korea’s Chungcheongbuk-do to Foster Regional Blockchain EcosystemChungcheongbuk-do, a South Korean province located 117km south of Seoul, has entered into a partnership with the Korea Internet and Security Agency (KISA) to launch a regional blockchain initiative. The province won the bid for this initiative, proposed by the Ministry of Science and ICT, with the goal of fostering a thriving blockchain ecosystem within the region. Spearheading this project will be the Chungbuk Innovation Institute of Science and Technology (CBIST).Photo by Suzi Kim on UnsplashComprehensive supportWith a budget of 1.4 billion KRW ($1.07 million), CBIST will spearhead the initiative by providing support to startups and creating a business-friendly environment. The province of Chungcheongbuk-do will offer consulting services to assist startups in exploring innovative blockchain solutions. They will also provide comprehensive support, including accommodations, infrastructure, equipment, and access to cloud computing platforms.Blockchain into other industriesFurthermore, Chungcheongbuk-do will extend funding opportunities and implement educational programs to nurture skilled individuals and develop a self-sustaining blockchain sector within the province. The goal is to catalyze the emergence of innovative business models that incorporate blockchain technology into various industries such as storage batteries, semiconductors, and parts and materials. This initiative is expected to boost the region’s economy and enhance its competitive advantage.Since the establishment of the Chungbuk Blockchain Promotion Center at CBIST in 2018, the provincial government has been actively involved in discovering and planning various blockchain projects and raising awareness. With the current blockchain initiative, Chungcheongbuk-do aims to build a comprehensive support system that will facilitate the growth of the regional blockchain sector.Kim Jin-hyung, Chief of the Science and Talent Bureau of the Chungcheongbuk-do government, expressed that this blockchain initiative aligns with the strategic vision of the elected local government to establish a high-tech region. The provincial government is dedicated to identifying software-focused projects that can strengthen startup ecosystems and empower young entrepreneurs.

A crypto wallet reportedly tied to the multinational banking giant DBS Bank holds over 170,000 Ether, valued at nearly $650 million. Reporting on the matter subsequently prompted DBS to make a denial of any links to the wallet.Photo by Kanchanara on UnsplashClaim asserted, claim deniedOn May 30, blockchain analysis firm Nansen caused some excitement when it took to X, flagging a particular wallet address, identifying it as belonging to an Ethereum whale, taking matters a step further in asserting that the wallet belonged to Singaporean bank, DBS Bank. The submission of securities reports to the Securities and Exchange Commission (SEC) recently by many large corporates led to disclosures from some within traditional finance in the United States of Bitcoin holdings via the spot Bitcoin exchange-traded fund (ETF) products which had been approved earlier this year. A substantial holding of ETH by Singapore’s biggest bank would have been a significant boost for proponents of Ethereum. However, DBS Bank promptly refuted these claims. A spokesperson for the bank subsequently issued a statement to Cointelegraph and Decrypt, stating: "In relation to the post, DBS does not have this position on our books."  Claim not retractedFor its part, Nansen has not retracted its claim. In response to Decrypt, Nansen analyst Edward Wilson stated:"We have it under good authority, via several independent sources, that DBS owns the private key of this wallet and these assets are most likely a part of their custody solution." Wilson told Cointelegraph that it had obtained this information from “a good source,” going on to state: “This is similar to how we see institutions, both crypto-native like exchanges such as Binance or Coinbase custody funds on behalf of their users and non-crypto-native custody funds. The institution is the custodian and is responsible for managing the security of the funds.” The Nansen analyst expressed even more confidence in the claim in response to CryptoSlate. Wilson stated:“Nansen is 100% sure this belongs to DBS – DBS owns the private key of this wallet and these assets are most likely a part of their custody solution.” DBS’s foray into crypto servicesIn 2020, DBS Bank unveiled a crypto trading and custody service, including a platform for conducting security token offerings. At that time, DBS Exchange clarified that while the exchange itself would not hold any assets, it would provide custody services to investors. Since launching its crypto division, DBS Bank has seen significant success. In 2023, DBS reported an 80% growth in Bitcoin trading volume, attributing this surge to the crypto market turmoil of 2022. In February of this year, the Singaporean bank moved to integrate its digital asset exchange business into a new global financial markets unit. In April 2023, DBS opened a branch of the bank on the metaverse. It demonstrated its Web3 credentials further in August 2023 by introducing a metaverse game to tackle the issue of global food waste.

The Financial Services and the Treasury Bureau (FSTB), a policy bureau attached to the government of the special administrative region of Hong Kong, has released a new digital assets policy statement, incorporating its “LEAP” framework for the digital assets industry within the city. The document, outlining the government’s objectives and guiding principles relative to the digital assets sector, builds on its first policy statement for the industry which it published in October 2022.Photo by Harry Shum on PexelsA ‘LEAP’ towards an integrated digital assets ecosystemThe FSTB suggests that this new policy statement builds upon foundational initiatives pioneered through the initial policy statement, asserting that “Hong Kong is poised to 'LEAP' towards a trusted, sustainable, and deeply integrated [Digital Assets] ecosystem embedded within the real economy.” The government agency also suggested that this “Policy Statement 2.0” also builds on the “ASPIRe” digital asset regulatory roadmap introduced by the Securities and Futures Commission (SFC) in February, outlining the next phase of digital asset sector development in Hong Kong. Strengthening global hub statusThe government has set out to home in on strategic measures to bring about greater liquidity in digital asset markets and diversify digital asset product offerings, while strengthening the Chinese autonomous territory’s position as a global hub for the digital asset sector. “LEAP” is an acronym for the proposed initiatives that underpin the new framework, including: - Legal and regulatory streamlining- Expanding the suite of tokenized products- Advancing use cases and cross-sectoral collaboration- People and partnership development The framework focuses heavily on the tokenization of real-world assets (RWA), with particular emphasis on bond tokenization. In February 2023, Hong Kong pioneered the issuance of the world’s first-ever tokenized government green bond. Building on that, it now seeks to bring about the regularization of the issuance of tokenized government bonds. The Hong Kong government would also like to see tokenization efforts expanding into “a broader range of assets and financial instruments.” It cited sectors such as precious metals, non-ferrous metals and renewable energy as candidates for tokenization. Promoting tokenized ETFsThe authorities are also encouraging tokenized exchange-traded funds (ETFs), with plans to introduce a stamp duty waiver for these products as an incentive. Additionally, the Hong Kong government is interested in nurturing the development of secondary market trading of such tokenized ETF products, whether that’s through digital asset trading platforms or other channels. The framework considers the further development of stablecoins. The city’s new licensing regimen for stablecoin issuers commences on Aug. 1. The FSTB maintains that stablecoins have the potential “to transform payments, supply chain management, and capital market activities by offering a cost-effective and efficient alternative to traditional systems.” In order to capitalize on this potential, the Hong Kong government, together with the city’s regulators, intends to enable licensed stablecoin issuers in the city “to explore and implement different stablecoin use cases.” Cyberport, a Hong Kong business park and digital technology incubator that hosts in excess of 1,650 startups, will also extend its support through its incubation ecosystem to further the objectives set out in the Hong Kong government’s new digital assets policy statement.