The report provides an overview of the top 10 cryptocurrency news in Asia for the week of February 5 to February 11. It covers a range of topics including cyberattacks originating from North Korea, legislative changes in Hong Kong and South Korea, and the growing popularity of Ethiopia as a destination for Chinese Bitcoin miners.
North Korea’s Cryptocurrency Cyberattacks
- UN Investigation: The United Nations is investigating 58 suspected cyberattacks by North Korea on cryptocurrency-related companies between 2017 and 2023, valued at approximately $3 billion. These attacks are believed to have funded North Korea’s development of weapons of mass destruction.
Legislative Changes in Hong Kong
- Proposed CNY Stablecoin: The Hong Kong General Chamber of Commerce has proposed the issuance of a CNY stablecoin and the establishment of a Virtual Asset Interconnect Scheme. The proposal is part of the upcoming “Budget Address” by the Financial Secretary.
- Regulation of Cryptocurrency Trading: The Hong Kong government has initiated public consultation on proposed legislation for the establishment of a licensing regime for over-the-counter virtual asset trading service providers. Violations of the proposed regulations could result in fines and imprisonment.
South Korea’s Crypto Industry Developments
- Arrest of Haru Invest Executives: South Korean prosecutors have arrested three executives from the cryptocurrency investment platform Haru Invest, accusing them of embezzling cryptocurrency worth approximately $826 million from around 16,000 users.
- Regulatory Changes: The Financial Services Commission of South Korea has announced new regulations prohibiting market manipulation, illegal transactions, and the use of undisclosed material information for virtual asset trading. Violations could result in imprisonment and hefty fines.
Emerging Trends in Cryptocurrency Mining
- Ethiopia as a Mining Destination: Ethiopia has emerged as one of the world’s largest recipients of Bitcoin mining machines, with 21 Bitcoin mining companies, mostly Chinese, reaching power supply agreements with the country. The Ethiopian government permits Bitcoin mining as these companies pay for their electricity consumption in foreign currency.
- Monitor Regulatory Changes: Stakeholders in the cryptocurrency industry should closely monitor regulatory changes in key markets like Hong Kong and South Korea, as these could significantly impact their operations and investment strategies.
- Assess Risks in Emerging Markets: The growing popularity of countries like Ethiopia as destinations for Bitcoin mining presents potential opportunities, but also risks, given the regulatory uncertainties and infrastructure challenges in these markets. Companies should conduct thorough due diligence before making significant investments.
- Enhance Cybersecurity Measures: The investigation into North Korea’s cyberattacks on cryptocurrency-related companies underscores the importance of robust cybersecurity measures in the industry. Companies should invest in advanced security technologies and practices to protect their assets and operations.