Research Summary
The report provides an overview of the top 10 crypto news in Asia for the week of Jan 29 to Feb 4. It covers regulatory developments, legal disputes, and market trends in Hong Kong, mainland China, South Korea, Thailand, and Singapore. The report also highlights significant events involving major crypto players such as Binance, Zipmex, and Huobi.
Key Takeaways
Regulatory Developments in Hong Kong and Mainland China
- Legal Assistance Arrangement: Mainland China and Hong Kong have ratified mutual judicial assistance arrangements, potentially making Hong Kong a jurisdiction for disputes involving virtual currencies. This could provide a judicial remedy for commercial arrangements, circumventing unfriendly policy provisions towards virtual currencies in mainland courts.
- Regulation of OTC Exchanges: The Hong Kong Monetary Authority plans to regulate over-the-counter exchanges and will introduce a stablecoin sandbox scheme. Exchanges that fail to submit applications by February 29th or have not received proper licensing notifications must begin winding down their operations.
- Anti-Money Laundering Law in China: China is making progress in amending its Anti-Money Laundering Law to address money laundering involving virtual assets. The draft law requires financial institutions to assess money laundering risks before adopting new technologies and offering new products.
Market Trends and Legal Disputes
- Binance’s Stake in GOPAX: Binance is in early discussions regarding its ownership stake in the South Korean cryptocurrency exchange GOPAX. This comes as South Korea is tightening its cryptocurrency regulatory measures.
- DeFiance Capital’s Lawsuit Against 3AC: The Singapore High Court has supported the lawsuit brought by DeFiance Capital founder Cheong Jun Yoong against the cryptocurrency hedge fund Three Arrows Capital (3AC). The court confirmed that the cryptocurrencies still controlled by 3AC in the Fireblocks wallet are indeed trust assets.
Product Launches and Hacking Incidents
- Launch of HTX DAO: Justin Sun announced the launch of HTX DAO, with plans to transform Huobi HTX into a decentralized exchange. Huobi will donate 50% of its income to HTX DAO liquidity, and TRON will contribute 50% of Huobi’s donation amount.
- Hacker Attack on Somesing: South Korean Web3 Music Platform Somesing was targeted in a hacker attack, with losses exceeding 11.5 million USD. The compromised amount includes 504 million undistributed SSX tokens and 226 million SSX tokens held by the Somesing Foundation.
Actionable Insights
- Monitor Regulatory Developments: Stakeholders should closely monitor regulatory developments in Asia, particularly in Hong Kong and mainland China, as these could significantly impact the crypto market.
- Assess Legal Risks: Crypto businesses should assess legal risks and potential disputes, as seen in the case of DeFiance Capital and 3AC. Understanding the legal landscape can help in formulating effective risk management strategies.
- Enhance Security Measures: Crypto platforms should enhance their security measures to prevent hacking incidents, as demonstrated by the attack on Somesing. Robust security protocols are crucial in protecting assets and maintaining user trust.
