Author：Crescent

Editor：Colin Wu

1. Hong Kong’s weekly summary

1.1 Hong Kong Securities and Futures Commission Official Indicates Securities Tokens and RWAs Will Be Updated, Opening Opportunities for Retail Investors link

On July 6th, WuBlockChain exclusively learned that Elizabeth Wong, the head of the Financial Technology Group at the Securities and Futures Commission (SFC) in Hong Kong, mentioned during her visit to Eliptic that the SFC is soon planning to release an update that will change the perspective on Security Token Offerings (STOs) from four years ago (2019). Securities Tokens or Real-World Assets (RWAs) will no longer be classified as complex products and may have the opportunity to be accessible to retail investors. RWAs will be regulated based on the underlying assets. Analysts suggest that this could potentially ignite a new wave of enthusiasm for RWAs.

1.2 Hong Kong Financial Secretary: Opening Two New Tracks — Green Finance and Web3 link

On July 8th, Financial Secretary of Hong Kong, Paul Chan Mo-po, stated in Shanghai that in the current “new stage” of Hong Kong, they have opened two new tracks, namely green finance and Web3, including virtual assets. He mentioned that there have been incidents in different places recently, and they have learned from these experiences. The issues arose due to inadequate regulation and improper operations, such as commingling of funds between the platform and customers or conflicts of interest where the platform acts as both a platform and a dealer. Starting from June 1st, Hong Kong has begun issuing licenses, and the Securities and Futures Commission (SFC) in Hong Kong has taken responsibility for implementing effective regulation to ensure accountability and sustainable development.

1.3 Johnny Ng Kit-chong: Hong Kong Should Define and Create a Semi-Private Blockchain to Integrate All Financial Services link

On July 4th, Hong Kong Legislative Council member Johnny Ng Kit-chong posted a Twitter poll with the topic “To further promote Hong Kong as a web3 hub, should the government and regulatory bodies define and create a semi-private blockchain to integrate all financial services, and establish a public blockchain to facilitate daily applications?” As of the time of writing, a total of 510 people participated in the poll, with 72.4% expressing support and 17.8% opposing the idea. The voting has concluded.

2. The Monetary Authority of Singapore Requires Cryptocurrency Platforms to Hold Customer Funds in Trust by the End of the Year link

On July 3rd, the Monetary Authority of Singapore (MAS) announced that cryptocurrency platforms are required to place customer funds in trust by the end of the year. They also proposed a ban on lending and pledging by retail investors. In their statement, MAS emphasized the high risks and speculative nature of digital payment token trading, stating that regulation alone is insufficient to protect consumers from all losses. Consumers are urged to exercise extreme caution when engaging in such transactions.

3. South Korea’s Weekly Summary

3.1 The Korean Digital Asset Exchange Association (DAXA) Will Implement the “Virtual Asset Alert System” on July 4th link

According to Hankyung, a South Korean media outlet, the Digital Asset Exchange Association (DAXA), which consists of the five major cryptocurrency exchanges in South Korea (GoPax, Bithumb, Upbit, Korbit, Coinone), has implemented a “Virtual Asset Alert System” starting from July 4th. This alert system includes five types of alerts: price fluctuations, surge in trading volume, surge in deposits, price differences, and concentration of trading in a few accounts. The system provides real-time monitoring and displays notifications in the form of badges on the trading windows, with a maximum duration of 24 hours.

3.2 South Korean Financial Authorities to Commence Research Service for the Second Phase of Virtual Asset Legislation This Month link

On July 5th, according to Chosun Daily, the South Korean financial authorities are set to initiate research services for the second phase of virtual asset legislation as early as this month. The recently passed “Virtual Asset User Protection Act” in the National Assembly focuses on the regulation of user protection and unfair trading practices. The second phase will prioritize aspects such as the issuance of virtual assets (ICO) and the resolution of conflicts of interest during the issuance process, regulatory frameworks for stablecoins, virtual asset evaluation services, consultancy services, and disclosure business regulations.

4. Circle is Considering Issuing a Stablecoin in Japan link

On July 6th, Jeremy Allaire, the CEO of Circle, stated that considering the legislation on stablecoin regulation that came into effect on June 1st, Circle is contemplating issuing stablecoins in Japan. Jeremy expressed that if stablecoins are widely adopted for cross-border trade, foreign currency transactions, and global commerce, Japan would become an immensely significant market. Circle is interested in establishing partnerships in Japan.

5. Chinese Ministry of Public Security Organizes Regional Campaign to Combat Telecom Fraud link

On July 4th, according to Xinhua News Agency, the Chinese Ministry of Public Security recently organized a regional crackdown on telecom fraud crimes called the “E Hubei-Xiang-Henan-Shandong-Henan” campaign. A large number of suspects involved in fraudulent activities were apprehended, and more than 3,300 criminal dens were dismantled. Additionally, over 104,000 pieces of equipment such as mobile phones, computers, and SIM cards used for committing crimes were seized. Furthermore, cash and assets including virtual currency (USDT) with a total value of over 58 million yuan were confiscated.

6. Police Workshop on Virtual Asset Cases in the Greater Bay Area (Guangdong-Hong Kong-Macao) Held in Shenzhen link

On July 7th, a police workshop on virtual asset-related cases in the Greater Bay Area was held in Shenzhen, organized by the Cyber Security and Technology Crime Bureau of the Hong Kong Police Force, with the participation of the Macau Judiciary Police and the involvement of the Guangdong police. The event was supported by the Institute of Financial Technology and Law at China University of Political Science and Law, and hosted by EuroLink Holdings Limited. Nearly 50 law enforcement personnel from the Greater Bay Area attended the workshop, where in-depth discussions and exchanges took place on topics such as tracing techniques for virtual asset transactions, anti-money laundering and fund flow analysis on blockchain, combating smart contract crimes, international cooperation, and information sharing

7. Taiwan Ministry of Justice: Bribery in Election Involves Emerging Payment Methods, Including Digital Payments and Virtual Currencies link

On July 5th, according to the Taiwan media Chinatimes, the Ministry of Justice in Taiwan stated that electoral bribery has evolved significantly and is no longer limited to cash payments. Emerging third-party payment methods, including digital payment tools and virtual currencies such as Bitcoin and Ethereum, may be used as tools for electoral bribery. As a result, prosecution authorities and the police have been actively taking preventive measures against these methods in preparation for the 2024 elections

8. Thailand’s Weekly Summary

8.1 Securities and Exchange Commission of Thailand Issues Disclosure Rules on Warning and Prohibition of Cryptocurrency Trading Risks and Services link

On July 3rd, the Securities and Exchange Commission of Thailand issued warning disclosure rules regarding the risks and service prohibitions of cryptocurrency trading. The rules mainly involve two provisions: 1. Cryptocurrency exchanges, brokers, and dealers are required to publicly disclose the risks associated with trading cryptocurrencies. This rule will be effective starting from July 31, 2023. 2. Digital asset business operators are prohibited from providing or supporting deposit and lending services. This includes the prohibition of accepting digital asset deposits and using the deposited digital assets for lending or investment, as well as paying returns to depositors. It is also prohibited to advertise or engage in any form of action to support the provision of deposit and lending services. This rule will be effective starting from August 30, 2023.

8.2 Thai Prime Ministerial Candidate Pita Limjaroenrat Holds a Small Amount of Cryptocurrency Assets link

On July 6th, according to the Thai media outlet Isranews, the Office of the National Anti-Corruption Commission of Thailand disclosed the assets and liabilities of Pita Limjaroenrat, the leader of the Move Forward Party and a contender for the prime minister position. The disclosure revealed that he holds a small amount of cryptocurrencies such as BTC, ETH, BNB, ADA, with a value of a few thousand dollars, which only represents a small portion of his total net assets of $1.84 million.

9. Vietnam’s Department of Cybersecurity and High-Tech Crime Prevention Initiates Investigation into Pi Network link

On July 5th, according to VnExpress, the Department of Cybersecurity and High-Tech Crime Prevention in Vietnam has initiated an investigation into Pi Network. The head of the regulatory department, Le Xu Minh, stated that cryptocurrency models like Pi present complex and unregulated issues, and there are indications that people are being lured into a business model resembling multi-level marketing by the initiators of this cryptocurrency. Additionally, local police agencies in various locations are conducting specific investigations into activities related to the Pi cryptocurrency.

10. A Bill Exempting Foreign Residents from Capital Gains Tax on the Sale of Cryptocurrencies Passes Preliminary Approval in the Israeli Parliament link

On July 6th, according to CoinDesk, a bill that exempts foreign residents from capital gains tax when selling cryptocurrency has received preliminary approval in the Israeli parliament. The bill also reduces the taxation on cryptocurrency options for employees (similar to stock options) from 50% to approximately 25%.

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