Author：Crescent

Editor：Colin Wu

1. Hong Kong’s weekly summary

1.1 Hong Kong SFC Approves License Upgrades for Hashkey Pro and OSL, Enabling Retail Trading link

On August 3rd, HashKey Exchange announced the official upgrade of its 1st and 7th licenses, making it the first licensed trading platform in Hong Kong targeting retail users. In addition to providing support for fiat currency deposits and withdrawals, HashKey Exchange will collaborate with Standard Chartered Bank to offer fiat currency deposit and withdrawal services to users. Furthermore, the platform has also introduced compliant over-the-counter (OTC) trading, providing users with a broader range of trading options. Following HashKey, OSL (OSL Digital Securities Limited) has also received approval for an upgraded license from the Hong Kong Securities and Futures Commission, with its initial offerings being BTC and ETH.

1.2 HashKey Capital to Launch Supervised Liquidity (Type II) Crypto Asset Fund under Hong Kong SFC Regulation on September 1 link

On August 4th, HashKeyCapital officially announced its plans to launch a regulated liquidity (secondary) cryptocurrency asset fund under the supervision of the Hong Kong Securities and Futures Commission. The fund is set to debut on September 1st and has future plans to invest in a variety of mainstream virtual assets. The organization anticipates that within the next year, its secondary cryptocurrency fund will become one of the largest in terms of scale in Asia. This fund will commence investor subscriptions starting from September 1st, 2023.

1.3 Departures Reported in HashKey NFT Business Team, Indicating Possible Disbandment link

On August 4th, according to reports from DooDong, it has been observed that several employees from the HashKey NFT business team have resigned, leading to suspicions of a potential dissolution of the team. HashKey’s short-term focus is on their trading platform business, and the NFT team has undergone adjustments due to concerns about the profitability of their operations. EtherPoap had garnered attention from the community due to its association with HashKey support. However, due to operational issues, EtherPoap faced failure. HashKey had previously stated that both entities, HashKey and EtherPoap, operate independently.

2. The Mainland of China’s Weekly Summary

2.1 Shanghai Municipality Unveils Implementation Plan (2023–2025) for City Blockchain Digital Infrastructure System link

On July 31st, the city of Shanghai announced the implementation plan for the advancement of the urban blockchain digital infrastructure system (2023–2025). By 2025, the comprehensive construction of the “1+1+1+X” digital infrastructure system under the Pujiang Blockchain, characterized by rapid on-chain and cross-chain deployment capabilities, will be completed. This system will provide robust support for municipal governance, public services, and various industry applications. Furthermore, it aims to facilitate collaborative utilization of blockchain network resources in the Yangtze River Delta region, while establishing an international blockchain exchange hub linkage.

2.2 Central Political and Legal Affairs Commission: Strong Legal Actions Against Overseas Telecommunication Fraud Utilizing Blockchain and Collaborative Domestic Criminals link

On August 6th, the Central Political and Legal Affairs Commission recently convened a plenary meeting, emphasizing the need to rigorously combat illegal criminal activities such as overseas telecommunications fraud in accordance with the law. Additionally, it called for stringent measures against domestic accomplices in criminal activities. Regarding the tactics employed in fraud, fraudulent groups are increasingly exploiting emerging technologies and innovative formats such as blockchain, metaverse, virtual currencies, and AI intelligence. They continuously evolve their criminal tools, making them more covert and deceptive.

2.3 Multiple Executives of an Exchange Investigated, Suspected of Involvement in Running a Gambling Establishment link

On August 5th, WuBlockChain exclusively learned that several senior executives, including CTOs and CHOs, from a domestic exchange in China, are under investigation by Chinese authorities. The charges are related to the crime of running a gambling establishment. Furthermore, investigations have also been initiated against some other exchanges, including a third-tier exchange, and even the founder of one of them is being investigated. The scope of these investigations appears to be quite extensive. It is suspected that these exchanges may have been involved in providing funding and settlement services for gambling websites and gambling programs. According to blockchain data analysis by Bitrace, over the past year, the funds directly or indirectly associated with online gambling activities, funneled into or connected to mainstream exchange hot wallets, have exceeded 7.6 billion USDT.

On August 5th, according to Techub News, it has been reported that at least three executives from Huobi have been taken away by Chinese authorities for investigation. The investigation reportedly covers areas such as human resources, research and development, and finance. Some employees have allegedly received urgent notifications, urging them to leave the country as soon as possible.

3. Justin Sun: Q2 Group Profits Reach 85 Million, Exchange Business Makes Significant Turnaround link

On August 1st, Justin Sun announced that his group’s actual revenue for the second quarter amounted to $193 million, with expenses at $108 million. This resulted in a quarterly profit of $85 million, marking a remarkable 183% increase in profit compared to the first quarter, which saw a profit of $30 million. The group’s measures to increase revenue and reduce costs have proven effective. A conservative estimate suggests that the third-quarter revenue may reach $200 million, with expenses at $100 million, resulting in a quarterly profit of $100 million. These figures exclude investment-related gains and losses.

The Justin Sun Group encompasses various entities including TRON, income from TRC20-USDT, Huobi, Poloniex, and TUSD among others. Earlier data on token burning indicated that Huobi’s second-quarter revenue was approximately $26.91 million. Justin Sun mentioned that the exchange business has significantly improved its financial situation and predicts that the third quarter will likely reach a balanced profit and loss. Moreover, a conservative projection anticipates a slight profit in the fourth quarter.

4. Chinese Crypto Influencer Wang Dayou Reveals Himself as Founder of ArbDogeAI Project link

On July 31st, prominent figure in the Chinese cryptocurrency community, Wang Dayou (@youyou5202) , voluntarily revealed himself as the founder of the ArbDogeAI project. This announcement was subsequently confirmed by the official ArbDogeAI Twitter account. Wang Dayou disclosed that AIDOGE, the token associated with the project, had reached a market capitalization of $200 million in May and currently maintains a value of $20 million. Additionally, it has secured listings on the majority of mainstream cryptocurrency exchanges (CEX). Notably, AIDOGE has also been listed on OKX, which has become a significant trading platform for the token.

5. South Korea’s Largest Crypto Exchange, Upbit, Surpasses Coinbase and OKX in Monthly Trading Volume, Second Only to Binance link

On August 4th, according to a report by CCData, South Korea’s largest cryptocurrency exchange, Upbit, achieved a monthly trading volume that surpassed both Coinbase and OKX, coming second only to Binance. In the month of July, Binance recorded a trading volume of $208 billion, marking the fifth consecutive month of declining market share, now at 40.4%, the lowest level since August 2022. Coinbase experienced an 11.6% decrease in trading volume, reaching $28.6 billion. Similarly, OKX saw a 5.8% decrease to $29 billion. On the other hand, Upbit’s trading volume surged by 42.3% to $29.8 billion, leading to an increased market share of 5.8%.

6. Aptos to Host a Hackathon in Singapore in September link

The Aptos Foundation has announced the upcoming global Aptos Hackathon, scheduled to take place from September 11th to 13th in Singapore. The competition will encompass four distinct categories: NFTs, Social and Gaming; DeFi and Payments; Infrastructure, Tools, and Public Goods; and the Most Innovative Move Project.

7. Japanese Crypto Asset Exchange SBI VC Trade Adds DAI Stablecoin to Leveraged Trading link

On August 2nd, the Japanese cryptocurrency exchange SBI VC Trade announced the inclusion of the decentralized stablecoin DAI in its leverage trading services. SBI VC Trade has been offering spot trading services for DAI for a considerable period. It’s important to note that all compliant Japanese exchanges currently do not permit the usage of centralized stablecoins like USDT/USDC.

8. President of Kyrgyzstan Allows Cryptocurrency Mining Activities in Areas with Power Generation Permits link

On August 6th, President Zhaparov of Kyrgyzstan announced the authorization for cryptocurrency mining activities in regions with approved power generation capacity licenses. This move aims to generate revenue for the energy sector and create millions of dollars in taxation. During the summer, when power supply is sufficient, these “mining farms” will be operational. However, in cases of power shortage during the winter, their operation will be suspended and resumed over the remaining nine months.

9. Nomura Securities Subsidiary, Laser Digital, Obtains Cryptocurrency License in Dubai link

On August 1st, according to Bloomberg, Nomura Securities’ digital asset subsidiary, Laser Digital, has obtained a cryptocurrency license in Dubai. This license allows them to offer virtual asset brokerage and investment management services locally. Laser Digital has revealed its plans to introduce over-the-counter trading services and digital asset investment products for institutional investors in the coming months. Established last year, Laser Digital is headquartered in Switzerland with offices in Dubai and London.

10. G20 Presidency India Issues Opinion Statement on Developing Global Cryptocurrency Regulations link

On August 2nd, India, as the G20 presidency, issued a chairman’s statement regarding cryptocurrencies, aiming to incorporate its proposed recommendations into the global framework for cryptocurrency regulations. This statement serves as the official document outlining India’s suggestions prior to the development of the next round of global cryptocurrency regulations. It was collaboratively authored by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). The statement encompasses key actions such as promoting the implementation of recommendations across the FSB and all other relevant standard-setting bodies. A comprehensive report is expected to be released by the end of August.

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