Research Summary
The report provides an overview of the top 10 cryptocurrency news in Asia for the week of January 22 to January 28. It covers developments in Hong Kong, Taiwan, South Korea, Indonesia, China, Russia, Singapore, and Japan, including regulatory changes, arrests, tax revenues, monetary policies, and business closures.
Key Takeaways
Hong Kong’s Virtual Asset Developments
- First Spot Virtual Asset ETF: Hong Kong is expected to launch its first spot virtual asset ETF by mid-year. About 5 to 10 fund companies are conducting research on this, with progress expected with the first 5 companies.
- Strategic Focus 2024–2026: The Securities and Futures Commission of Hong Kong has released its strategic focus for the next two years, which includes maintaining market resilience, enhancing global competitiveness, leading financial market transformation with technology and ESG, and improving institutional resilience and operational efficiency.
- Bitcoin Spot ETF: Value Partners Group and VSFG have signed a Memorandum of Understanding to explore the launch of a Bitcoin spot ETF in Hong Kong.
Regulatory Challenges in Taiwan and South Korea
- Taiwan’s Bitcoin ETF Restrictions: Taiwan’s investment trusts are unable to issue Bitcoin ETFs due to regulatory restrictions. Investors can only invest in Bitcoin ETFs through overseas brokerages.
- Arrest of ACE Exchange President: Wang Chenhuan, the president of Taiwan’s ACE exchange, has been arrested on suspicion of fraud and money laundering.
- Arrest Warrant for B&S Holdings Shareholder: South Korean prosecutors have issued an arrest warrant for Bang, the major shareholder of B&S Holdings, on suspicion of fraud.
Indonesia’s Cryptocurrency Tax Revenue
- Decrease in Tax Revenue: Indonesia’s cryptocurrency tax revenue for 2023 amounted to $31.7 million, a 62% decrease from the previous year. Cryptocurrency transactions in Indonesia are subject to double taxation: a 0.1% income tax and a 0.11% value-added tax.
China’s Monetary Policy and Binance’s Exit from Russia
- People’s Bank of China’s Monetary Policy: The People’s Bank of China has announced a reserve requirement ratio cut to be implemented before the Spring Festival, expected to inject 1 trillion yuan of medium- to long-term liquidity.
- Binance’s Exit from Russia: Binance has announced its decision to exit the Russian market by selling its operations to CommEX. Consequently, Binance will gradually cease all Russian Ruble (RUB) services.
Developments in Singapore and Japan
- DCS Bank’s Stablecoin DUS: The Singapore-based DCS Bank’s stablecoin DUS, issued on the PlatON mainnet, is poised to exceed a circulation of $3 million.
- MtGox’s BTC Distribution: MtGox has confirmed the ownership of exchange address accounts and will distribute its holdings of 142,000 BTC, 143,000 BCH, and ¥69 billion.
Actionable Insights
- Monitor Hong Kong’s Virtual Asset Developments: The expected launch of Hong Kong’s first spot virtual asset ETF and a Bitcoin spot ETF could signal significant growth in the region’s cryptocurrency market.
- Understand Regulatory Challenges in Taiwan and South Korea: The restrictions on Bitcoin ETFs in Taiwan and the legal issues faced by exchange leaders in Taiwan and South Korea highlight the regulatory challenges in these markets.
- Assess the Impact of Taxation on Cryptocurrency Markets: The decrease in Indonesia’s cryptocurrency tax revenue and the double taxation on cryptocurrency transactions could impact the growth of the cryptocurrency market in the country.
- Consider the Implications of China’s Monetary Policy and Binance’s Exit from Russia: The People’s Bank of China’s monetary policy could impact the country’s financial market, while Binance’s exit from Russia could affect the cryptocurrency market in the country.
- Track Developments in Singapore and Japan: The growth of DCS Bank’s stablecoin DUS and MtGox’s BTC distribution could have significant implications for the cryptocurrency markets in Singapore and Japan.
