Strategic Partnership Sees BitKeep Add Mantle Network Support

South Korea’s southeastern port city of Busan signed a memorandum of understanding (MOU) on Wednesday with the BDX Consortium led by ITCEN GROUP, a Seoul-based tech company specializing in system integrations. This marks the beginning of the establishment of the Busan Digital Asset Exchange (BDX). Photo by Minku Kang on UnsplashPlans to establish BDX CorporationFollowing the MOU signing, Busan and the BDX Consortium plan to join forces to set up and operate BDX successfully. The two entities are also dedicated to swiftly establishing a private entity, “BDX Corporation,” within the blockchain regulation-free zone in Busan, as part of their ambitious plan to make Busan into a global blockchain hub.  ITCEN GROUP is known to have extensive experience in trading real-world assets (RWAs) such as gold, silver and copper. Other participants of the BDX Consortium include Hana Securities, Hana Bank, OCON and Barunson, who are set to provide RWAs and intellectual properties (IP) to BDX in cooperation with ITCEN GROUP. Following the founding of BDX Corporation, the BDX Consortium is required to provide investment capital to the city of Busan until April, in accordance with its business plan.  A blockchain exchange with its own mainnet based on decentralized governanceThe decentralized governance upon which BDX will operate is an independent framework capable of handling securities settlements, listing assessments and market monitoring. It also serves as an investor protection measure through its mutual check and balance system.  BDX plans to support 24/7 transactions of various assets including commodities, jewelry, IP and carbon credit, all of which will be tokenized into small units for convenient trade.  “This partnership lays the foundation for the BDX launch, which will serve as a cornerstone of the city’s plan to foster the blockchain industry. In close cooperation with local enterprises, Busan will do its best to build and operate the exchange and contribute to the city’s economic growth,” stated Park Hyeong-joon, the mayor of Busan. 

The Enforcement Directorate (ED) — an Indian law enforcement agency — seized 90 crores ($10.5 million) from an online scam app called E-Nuggets with the help of global crypto exchange Binance.  ED is the governmental law enforcement agency responsible for enforcing economic laws and with that, tackling economic crime. According to a report published by Indian English language daily newspaper The Hindu, the online gaming app E-Nugget had cryptocurrencies worth $10 million stored in 70 different crypto wallet accounts spread across the three crypto exchanges.  Local Indian exchanges ZebPay and WazirX also aided the ED in its investigations and subsequent actions. The ED contacted these exchanges to block the wallet addresses and transfer the crypto assets to the agency’s wallet. Photo by Naveed Ahmed on UnsplashCrypto assets seizedThe ED, tasked with upholding such financial crimes, spearheaded the operation against E-Nuggets, an online gaming platform masquerading as a legitimate investment opportunity. Taking to the X social media platform on April 30, the Indian law enforcement agency stated: “ED, Kolkata led a successful operation against a major “online gaming app scam” known as “E-Nugget”. The E-Nugget app, masqueraded as a gaming platform, promised users high returns on their investments. Crypto assets which were taken into possession of ED are transferred into Crypto Wallet of ED.” 70 wallets implicatedWith cryptocurrencies valued at $10 million spread across 70 different wallet accounts on three crypto exchanges, the agency swiftly took action. E-Nuggets enticed unsuspecting investors with promises of substantial returns through its purported gaming interface. However, once investments were made, the platform vanished into thin air, leaving users unable to recoup their funds. The ED's investigation revealed a complex web of deceit, with the agency seizing properties totaling over 163 crores ($19.5 million), comprising cash, cryptocurrency holdings, account balances and office spaces. The scam involved the funneling of funds into digital assets through 2,500 dummy bank accounts, resulting in the discovery of 19 crores ($2.2 million) in cash. A first information report (FIR) filed at the Park Street Police Station in Kolkata, became the catalyst that triggered the ED case that was subsequently registered under the provisions of India’s Prevention of Money Laundering Act (PMLA). Masterminded by Aamir Khan, who was apprehended alongside accomplice Romen Agarwal, the scheme operated under the guise of digital transactions, which, ironically, facilitated its unraveling. Law enforcement agencies adeptly traced, froze and seized the illicit funds as they moved through the digital realm. Public ledger upends scammersCritics often point to the potential for cryptocurrency to facilitate money laundering. However, the inherent transparency of blockchain technology presents significant obstacles to such illicit activities. Notably, in the infamous 2016 Bitfinex hack, where hackers absconded with 119,756 Bitcoin, the culprits were eventually apprehended in 2022 while attempting to launder the stolen funds. The collaborative efforts between Binance, the ED, and local exchanges points to a developing commitment towards combating financial fraud within the cryptocurrency space. This wasn’t the first occasion in which Binance had cooperated with law enforcement on such matters. In October of last year, the company got with the Thai authorities to assist them in crushing a crypto-related scam. By leveraging blockchain's transparency and international cooperation, authorities can effectively dismantle illicit schemes, safeguarding investors and upholding the integrity of the digital asset ecosystem.

HKMA Issues Warning Against Crypto Firm MisrepresentationThe Hong Kong Monetary Authority (HKMA), the central bank for the Chinese autonomous territory, has taken a stand against cryptocurrency businesses that falsely present themselves as “banks” and market their products as “deposits,” issuing a public advisory to raise awareness about the issue.Photo by Marcel Eberle on UnsplashBanking ordinance violationsIn a press release published to its website on Friday, the HKMA said that instances had arisen where crypto firms had labeled themselves as “crypto banks,” “crypto asset banks,” and “digital trading banks.” The regulatory authority underscored that such misrepresentations could be in violation of the Banking Ordinance in Hong Kong.In addition to adopting misleading bank-related titles, these crypto firms have been advertising “savings plans” as “low risk” with “high return,” potentially misleading the public into believing that these entities are authorized banks in Hong Kong, where they can securely deposit their funds.The HKMA stressed that only entities such as licensed banks, restricted license banks, and deposit-taking companies, collectively referred to as “authorized institutions” and holding a license granted by the HKMA, are legally permitted to engage in banking or deposit-taking activities in Hong Kong.Furthermore, funds held on crypto exchanges are not covered by Hong Kong’s Deposit Protection Scheme. “Under the Banking Ordinance, only licensed banks, restricted license banks and deposit-taking companies, which have been granted a license by the HKMA can carry out banking or deposit-taking business in Hong Kong,” the HKMA stated.Misuse of banking termsAny entity using the term “bank” in its business name or implying that it offers banking services in Hong Kong is committing an offense, according to the central bank. The same rule applies to any entity engaging in deposit-taking activities in Hong Kong or soliciting the public to make deposits.It’s important to note that crypto firms not officially recognized as banks in Hong Kong are not subject to the oversight of the HKMA.The HKMA advised the public to exercise caution. In cases of uncertainty regarding an entity claiming to be a bank or soliciting deposits in Hong Kong, individuals are encouraged to consult the register of authorized institutions on the HKMA’s website, and if doubts persist, it suggests that they should contact the authority via its Public Enquiry Service hotline.According to section 97 of the Banking Ordinance, only a bank or a central bank can use the term “bank” or its derivatives in its business name in Hong Kong without the written consent of the HKMA.Additionally, sections 11 and 12 of the Banking Ordinance stipulate that only entities possessing a valid banking license or recognized as authorized institutions are permitted to engage in banking or deposit-taking activities in Hong Kong. As per section 92 of the Banking Ordinance, only an authorized institution is authorized to issue advertisements inviting the public to make deposits, with certain exceptions.The HKMA’s advisory serves as a stern reminder to the crypto industry that regulatory compliance and transparency are essential, particularly when using terms associated with traditional banking, to protect the interests of the public.