Author：Crescent

Editor：Colin Wu

1. South Korea’s Weekly Summary

1.1 South Korea Passes First Standalone Cryptocurrency Bill link

On June 30th, according to Bloomberg, South Korea passed its first independent cryptocurrency bill to strengthen investor protection. The Virtual Assets User Protection Act, passed by the parliament on June 30th, consolidates 19 cryptocurrency-related bills. It defines digital assets and imposes penalties for illegal activities such as using non-public information, market manipulation, and unfair trading practices. It also grants the Financial Services Commission the power to supervise cryptocurrency operators and asset custodians, and the central bank will be able to investigate such platforms. The bill requires insurance, reserve funds, and necessary record-keeping. These regulations cover assets such as Bitcoin, while existing capital market laws apply to tokens deemed as securities.

1.2 South Korean Prosecutors Conduct First-Ever Forced Search and Seizure on WEMIX Cryptocurrency Issuer WeMade link

On June 30th, according to Digital Asset, South Korean prosecutors conducted a raid and seizure on the virtual asset issuer WEMIX and the market maker associated with WEMIX. This marks the first forced search and seizure conducted on WEMIX. Previously, on May 24th, the prosecutor’s office conducted a search and seizure related to the controversy surrounding the possession of 800,000 WEMIX tokens by Member of Parliament Kim Nam-guk, but it was not specifically targeting WEMADE for investigation.

2. Mainland of China’s Weekly Summary

2.1 Pan Gongsheng Appointed as the Party Secretary of the People’s Bank of China link

On July 1st, according to the official website of the People’s Bank of China, Pan Gongsheng has been appointed as the Secretary of the Party Committee of the People’s Bank of China, while Guo Shuqing has been relieved of his position as the Secretary of the Party Committee of the People’s Bank of China, and Yi Gang has been relieved of his position as the Deputy Secretary of the Party Committee of the People’s Bank of China. In 2017, Pan Gongsheng once stated, “Sitting by the river, eventually the body of Bitcoin will float by.”

2.2 Key Officials from Jiangsu and Zhejiang High Courts: Drug Crimes Employ Increasingly Concealed Methods, Often Utilizing Virtual Currencies like Bitcoin for Online Payments link

On June 26th, officials from the Jiangsu Provincial High Court and the Zhejiang Provincial High Court stated that drug-related crimes are becoming more covert, with the frequent use of virtual currencies such as Bitcoin for online payments. The Shanghai police also indicated that the online drug industry is forming through the use of overseas social media platforms for communication, “concealed package” transactions, and payments with virtual currencies. The use of virtual currencies for drug-related payments has become a new trend in the circulation of drug funds.

2.3 Zibo Police Crack Down on Illegal USDT Transactions link

On June 27th, according to the Zibo police, after the arrest of Liu, who was involved in the dissemination of gambling and pornography website promotion messages, Liu voluntarily disclosed to the public security authorities the individuals, including Qi, who provided him with USDT coin exchange services. Liu also assisted the public security authorities in apprehending Qi. Qi was sentenced by the court to three years’ imprisonment with a three-year probation period and a fine of 100,000 yuan for the crime of concealing and hiding criminal proceeds. The prosecuting authority believed that Qi, the suspect, was well aware that the trading of USDT coins is not allowed within China and that he could not obtain USDT coins through legitimate means. Nonetheless, Qi purchased USDT coins at significantly lower prices and sold them at significantly higher prices to profit from the exchange price difference. Qi also conducted frequent cash transactions with upstream customers to evade banking supervision. Furthermore, the criminal activities of Qi’s exchange counterparts have been verified and proven. Qi’s actions constitute the crime of concealing and hiding criminal proceeds.

2.4 Jiangxi Police Successfully Crack Down on an Online Pyramid Scheme, Seize 1.42 Million USDT link

On the 27th of June, according to Guangming Net, the XiaShanKou Sub-bureau of the Pingxiang Municipal Public Security Bureau in Jiangxi Province successfully dismantled a criminal gang engaged in network pyramid schemes using blockchain technology. This gang employed the issuance of “USEA coins” and “TVL coins” as means to attract members through social networking platforms such as WeChat and QQ. They enticed individuals to invest by offering the sale of virtual currencies and promising economic benefits. During the operation, law enforcement arrested three key suspects and seized 1.42 million USDT tokens, two computers, twelve mobile phones, and thirty bank cards related to the case. The monetary value of the crimes committed by this gang exceeded 10 million RMB. Presently, the three criminal suspects have been taken into custody under criminal detention measures.

3. Circle Founder Jeremy Allaire Attends the Tianjin Davos Forum link

On the 27th of June, according to Bloomberg, Jeremy Allaire, the founder of Circle/USDC, expressed at the Tianjin Davos Forum that Hong Kong is evidently seeking to establish itself as a significant digital asset market and stablecoin hub. We are closely monitoring this development. The events unfolding in Hong Kong may ultimately have implications for the overall development in the Greater China region. We have observed a tremendous demand for digital dollars in emerging markets, and Asia indeed plays a central role in this regard.

4. Hong Kong’s weekly summary

4.1 First in Hong Kong: HSBC Bank Allows Customers to Buy and Sell Cryptocurrency ETFs link

According to exclusive information obtained by WuBlockChain, HSBC, the largest bank in Hong Kong, has begun allowing its clients to trade virtual asset ETFs listed on the Hong Kong Stock Exchange. This makes HSBC the first bank in Hong Kong to enable its clients to buy and sell virtual asset ETFs listed on the HKEX. This move aims to expand the exposure of local users in Hong Kong to cryptocurrencies. Currently, the listed cryptocurrency ETFs in Hong Kong include CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF.

Simultaneously, HSBC has launched a Virtual Asset Investor Education Center. Before investing in any virtual asset-related products through the HSBC Easy Invest app, HSBC Mobile Banking app, or online banking, clients are required to read and confirm their understanding of the educational materials and risk disclosures provided in the Virtual Asset Investor Education Center.

4.2 Chief Executive of Hong Kong, John Lee Ka-chiu: Promoting Sustainable Development of the Virtual Asset Industry while Embracing Financial Innovations Related to Web3.0 link

On the 26th of June, Hong Kong Chief Executive John Lee Ka-chiu stated that in February of this year, Hong Kong issued the world’s first government-issued tokenized green bond. This initiative not only embraces financial innovations related to Web3.0 but also promotes the sustainable and responsible development of the virtual asset industry. Furthermore, efforts are underway to establish a microelectronics research and development institute and an artificial intelligence supercomputing center to provide greater support for local scientific research.

4.3 HKVAC Unveils Virtual Asset Index: A Comprehensive Evaluation of Virtual Assets in Hong Kong link

On the 27th of June, HKVAC, a Hong Kong private virtual asset rating agency, announced its virtual asset index, which includes WBTC, BTCB, stETH, BCH, LTC, BNB, MATIC, ADA, ATOM, FIL, NEAR, ALGO, ICP, XRP, DOGE, DOT, WTRX, SHIB, TRX, LINK, LEO, XMR, XLM, OKB, LDO, HBAR, VET, QNT, FTM, and EOS. The criteria for inclusion in the index are a minimum active period of three months, a market capitalization ranking within the top thirty, and the exclusion of BTC, ETH, stablecoins, and others. It is worth noting that the inclusion of certain tokens in this index has sparked controversy, including platform tokens, privacy coins, and tokens recognized as securities by the SEC. Several industry experts have expressed doubts about its usefulness as a reference.

The recently published virtual asset index by HKVAC has generated some controversy as it did not include tokens like SOL, AVAX, UNI, and ETC, which rank among the top thirty. On the other hand, tokens like FTM and EOS, which have lower rankings, were included. In response to the concerns, HKVAC stated that based on their data, some of the tokens you mentioned should be included in the top 30. Considering that the first adjustment is approaching, a new composition and weightage will be announced on July 14th.

4.4 Hong Kong Government Establishes Dedicated Task Force for Web3.0 Development link

On the 1st of July, the Hong Kong government announced the establishment of a dedicated task force for Web3.0 development. The task force will be chaired by the Financial Secretary, Paul Chan Mo-po, and will consist of 15 unofficial members from relevant industries, as well as representatives from key government officials and financial regulatory agencies. The term of the unofficial members will be effective from the 1st of July 2023 and will last for two years. Paul Chan Mo-po expressed that Hong Kong embraces the major trend of Web3.0 development and, while striking a balance between “appropriate regulation” and “promoting development,” aims to actively lead and drive innovative exploration and development in this field.

5. Introduction of Project Guardian Framework by Monetary Authority of Singapore (MAS) link

The Monetary Authority of Singapore (MAS) introduced the Project Guardian framework in its report on June 26th, which has recruited 11 institutions to test the tokenization of assets across different asset classes. The announcement stated that banking giants such as HSBC, Standard Chartered, DBS Bank, and Citibank will conduct pilot studies in the areas of wealth management, fixed income, and foreign exchange. Standard Chartered is currently developing an initial token offering platform to issue asset-backed security tokens listed on the Singapore Exchange.

6. OKX Plans to Suspend Services for Japanese Residents, Potentially Due to Regulatory Pressure from the Japanese Financial Services Agency link

On June 27th, cryptocurrency exchange OKX announced its plan to suspend services for residents of Japan. The exchange’s application displayed a message stating, “Due to local regulations in Japan, you are not able to use OKX Exchange products.” This move may be in response to regulatory pressure from the Japanese Financial Services Agency. Earlier, Binance Global also announced the discontinuation of its services for Japanese residents, effective November 30th, 2023. Binance is planning to launch a local platform in Japan in the summer of 2023.

7. Crypto.com Announces Establishment of First Global Innovation Lab in Singapore link

On June 27th, Crypto.com announced its plans to establish its first global innovation lab in Singapore, positioning Singapore as its global research and development center. The newly formed global innovation lab team will actively explore cutting-edge technologies and collaborate with strategic partners and hackathons to explore new opportunities for blockchain, Web3, and AI applications.

8. Israel Seizes Millions of Dollars in Cryptocurrency Assets Belonging to Iran’s Quds Force and Hezbollah link

On June 28th, according to The Jerusalem Post, Israeli Defense Minister Yoav Gallant announced on Tuesday evening that the Israeli defense establishment had recently seized millions of dollars worth of cryptocurrency assets belonging to the Iranian Islamic Revolutionary Guard Corps’ Quds Force and Hezbollah. Gallant stated that this is the largest amount of cryptocurrency seized by Israel from these organizations to date, and that these funds were specifically intended for terrorist activities.

9. DeFiDaoNews Announces Suspension of Cryptocurrency News Publication, 8btc Main Site Fully Shifts Focus to AI Track link

On June 25th, DeFiDaoNews, a subsidiary of 8btc, announced that it would suspend the publication of cryptocurrency-related news and stop accepting cryptocurrency content submissions. 8btc’s main platform will now focus on AI-related topics and cover areas such as Web3 and the metaverse. As one of the earliest Chinese communities and media outlets in the cryptocurrency space, 8btc completed a Series A funding round of 100 million RMB in 2018. The round was led by PwC Capital and Pantheon Capital, with participation from Sequoia Capital China and Bitmain.

10. White Hat Discloses Huobi’s Exposure of Partial Customer and OTC Information in 2021, Huobi Responds with No Substantive Impact link

On July 1st, according to white-hat hacker Aaron Phillips, it was disclosed that Huobi had experienced a data breach in 2021, which involved the leakage of every Over-the-Counter (OTC) transaction processed by the platform since 2017, amounting to over 2TB of data. The leaked information included partial user data, information about high-net-worth individuals, and internal technical infrastructure. Some Huobi users have reported receiving notification emails from white-hat hackers. Huobi responded by stating that the incident occurred on June 22, 2021, due to improper operations by personnel related to the testing environment’s S3 bucket of the Japanese platform. They reassured that the relevant user information had been completely isolated as of October 8, 2022. The vulnerability has been fixed, and all associated user information has been deleted.

In an updated response, Huobi clarified that the mentioned OTC data in the article was not actual transaction data but test data. They further stated that the user information leakage only affected 4,000 users. The logs indicated that the data was downloaded by the white-hat hacker, who confirmed deleting it. Therefore, no actual breach occurred as a result of this incident.

Follow us
Twitter: https://twitter.com/WuBlockchain
Telegram: https://t.me/wublockchainenglish