Author：Crescent

Editor：Colin Wu

1. Singapore’s Weekly Summary

1.1 Singapore Police Arrest Over 10 Individuals and Seek 8 Others Allegedly Involved in Scam, Gambling, and Money Laundering Activities link

On August 16th, the Singaporean authorities announced the arrest of 10 suspects, with twelve individuals assisting in the investigation, and eight persons currently being sought by the police. These foreigners, all holding Chinese passports but with citizenship from various countries, are suspected of being involved in laundering the proceeds of organized overseas criminal activities (including fraud and online gambling). Authorities have issued freezing orders on 94 properties and 50 vehicles, estimated to be worth over 815 million Singapore dollars. Additionally, more than 35 related bank accounts have been seized, with an estimated total balance exceeding 110 million Singapore dollars, along with the confiscation of 11 documents, including virtual assets.

1.2 Singapore MAS Collaborates with CAD to Investigate Money Laundering Case link

On August 17th, the Monetary Authority of Singapore (MAS) announced its close collaboration with the Commercial Affairs Department (CAD) to facilitate progress in the money laundering case. This collaboration aims to identify potentially tainted funds and assets within our financial system and prevent their outflow. MAS is treating this case seriously and has established contact with financial institutions where potentially tainted funds have been detected. Regulatory cooperation with these financial institutions is currently underway. MAS will take strong actions against any financial institution found to be in violation of its strict anti-money laundering/anti-terrorist financing requirements.

1.3 Web3 Industry Professionals in Singapore Reportedly Involved in Large-Scale “Money Laundering” Activities Privately, Handling Transactions Worth Hundreds of Millions link

Regarding the Singapore money laundering case, a Caixin Media reporter interviewed an employee from the Web3 industry in Singapore. She revealed that her company holds compliant financial licenses in both Singapore and Canada, allowing them to offer cross-border transfer and foreign exchange services. Some customers are willing to pay 20–30% in fees to quickly transfer their funds to Canada. She also disclosed the existence of digital payment token service companies that, despite appearing compliant, engage in money laundering activities behind the scenes, often involving transactions worth hundreds of millions of dollars. “If you ask the residents of this luxury estate about their occupations, their answers are vague and ambiguous, which likely implies their involvement in the Southeast Asian gambling industry,” she said.

1.4 Singapore Monetary Authority Finalizes Stablecoin Regulatory Framework link

The Monetary Authority of Singapore (MAS) has introduced a novel regulatory framework for stablecoins. This framework is designed for Single Currency Stablecoins (SCS) pegged to the Singapore Dollar or G10 currencies. Issuers are obligated to adhere to crucial criteria encompassing value stability, capital, redemption at face value, and transparent disclosure. Only stablecoin issuers meeting all requirements can apply for their stablecoins to be recognized as “MAS-regulated stablecoins.”

2. Hong Kong’s weekly summary

2.1 John Lee Ka-chiu: Hong Kong SAR Government Prioritizes Financial Technology and Web 3.0 Development link

On August 15th, Hong Kong Chief Executive Lee Ka-chiu stated that Web 3.0 represents a fresh direction for the evolution of the internet, integrating technologies that have garnered significant attention in recent years. She emphasized its potential to become a driving force for the future development of finance and commerce. The Hong Kong government is devoted to the development of financial technology and Web 3.0 and has released a policy statement affirming the city’s open and inclusive approach to innovators engaged in global virtual asset businesses. The government is committed to collaborating with financial regulatory bodies to create a favorable environment, fostering sustainable and responsible growth in the Hong Kong financial sector.

2.2 Former Chief of Hong Kong Monetary Authority, Joseph Yam, Rumored to Succeed as Hong Kong Exchanges and Clearing Limited Chairman link

On August 20th, according to Bloomberg, Joseph Yam, the former Chief Executive of the Hong Kong Monetary Authority, is reported to potentially succeed Laura Cha as the Chairman of Hong Kong Exchanges and Clearing Limited (HKEX) at the shareholder’s annual meeting in April next year. It’s worth noting that Joseph Yam has been a critic of cryptocurrencies, openly opposing government-friendly policies towards crypto and likening cryptocurrency trading to gambling. However, the final decision on the next Chairman has not been confirmed yet.

3. Taiwan’s Weekly Summary

3.1 Taiwan Ministry of Economic Affairs to Enact Commercial Group Standards, Including Virtual Currency Commercial Group Categories and Business Scopelink

On August 18th, according to CNA, the Taiwanese Ministry of Economic Affairs announced its intention to amend the classification standards for business associations by adding the category of “Virtual Currency Commerce” and its scope of operations. Officials from the Ministry of Economic Affairs stated that two months after the announcement of the amendment proposal, entities eligible for engaging in virtual currency commerce can apply to form associations, which will aid in the implementation of relevant regulations and self-regulation standards.

3.2 Taiwan Financial Supervisory Commission’s Draft of Guiding Principles Consists of Thirteen Key Principles link

On August 14th, as reported by ChainNews, the Financial Supervisory Commission (FSC) of Taiwan issued a draft of guiding principles which consist of thirteen principles. These include: entities are allowed to issue virtual assets but must provide a fully disclosed whitepaper, stablecoins issuance is not permitted; listing standards are determined by industry associations; engaging in derivative financial product trading with virtual assets or conducting virtual asset businesses with security-like features is prohibited; otherwise, those violating futures trading regulations may face imprisonment for up to 7 years; overseas entities not listed on anti-money laundering declaration cannot advertise in Taiwan.

4. South Korea’s Hong Kong’s weekly summary

4.1 South Korean Lawmakers to Submit Consent Forms for Personal Information Sharing in August link

On the 17th of August, according to News1, the two major political parties in South Korea, the People’s Power Party and the Democratic Party of Korea, have reached a consensus to jointly submit a consent form for the comprehensive investigation of personal information related to virtual assets (cryptocurrencies) during the August extraordinary session of the National Assembly. This consent form will cover the cryptocurrency holdings and transactions of the legislators themselves, but will not include financial transaction information from other financial institutions outside of exchanges.

4.2 Bithumb Korea Reports Q2 Operating Loss of Approximately $2.571 Million link

On the 16th of August, as reported by Decenter, Bithumb Korea, the operator of South Korea’s second-largest cryptocurrency exchange Bithumb, reported a second-quarter operating loss of 3.442 billion Korean won (approximately 2.571 million US dollars). In the same period last year, they had reported an operating profit of 38.42 billion Korean won (approximately 28.7 million US dollars), and in the first quarter, an operating profit of about 16.2 billion Korean won (approximately 12.11 million US dollars). Bithumb’s underwhelming performance in the second quarter is attributed to a decline in virtual asset trading volume, leading to subdued fee revenue.

5. TRM Labs: North Korean Hackers Allegedly Stole $200 Million in Cryptocurrency This Year link

On the 20th of August, according to Decrypt, blockchain analysis firm TRM Labs highlighted in its Friday report that hackers associated with North Korea have stolen over 200 million US dollars in cryptocurrency this year, accounting for more than 20% of all stolen cryptocurrencies for the year. These hackers have been engaging in money laundering through attacks on DeFi protocols and using mixing services. TRM Labs has identified strong North Korean support for Sinbad as a preferred mixing service.

Previously, on August 17th, as reported by South Korean news outlet “Today Asia,” the National Intelligence Service (NIS) of South Korea estimated that North Korea has illegally seized over 1.5 billion US dollars’ worth of virtual assets since 2015. In just the first half of this year, North Korea has been involved in hacking incidents worth more than 180 million US dollars.

6. The Mainland of China’s Weekly Summary

6.1 Shenzhen Spacetime Cloud Technology Accused of Organizing Pyramid Schemes, Amounting to Over 600 Million CNY link

On the 15th of August, according to the “Pingnan Court Publicity” official account, Pingnan County People’s Court publicly tried the case involving Shenzhen Space-Time Cloud Technology Co., Ltd. and four executives, including Lai Mouhang, who were accused of organizing and leading pyramid scheme activities. The prosecuting authority alleges that since its establishment in June 2018, the company has used its developed platforms, filpool.io and bpool.io, employing distributed storage technology and virtual currencies such as fil coins in a mining scheme. It exaggerated investment prospects, luring participants with the promise of high returns, and thereby deceiving them of their assets. The combined sales of virtual coins and Chinese Yuan by the company amount to over 600 million CNY.

6.2 Jining Police Crack Down on Online Gambling and Dissemination of Obscene Materials Involving Virtual Currencies for Settlement link

On the 17th of August, as reported by IFENG News, during the “Clean Net 2023” special operation conducted by the Jining police in Shandong, a case involving the utilization of information networks for cross-border gambling and dissemination of obscene materials, which was designated as a key case for supervision by the Ministry of Public Security, has been successfully cracked. Six criminal groups involved were dismantled, and 64 suspects were arrested. A significant number of mobile phones and computers used for the crimes were seized. The investigation revealed that the implicated online platforms accepted illegal recharges totaling 1.581 billion Yuan and made profits of 516 million Yuan. In this case, the criminals collaborated both domestically and internationally, using overseas social networking applications for communication and settling transactions through methods involving virtual currencies.

6.3 Chinese Academy of Sciences PhD Student Deceived to Stay in Myanmar for a Year, Girlfriend Claims Losses from Crypto Trading link

On August 17th, according to Jiu Pai News, a postdoctoral fellow named Mr. Zhang from the Institute of Earth Environment of the Chinese Academy of Sciences, who had incurred losses in cryptocurrency trading and was facing several tens of thousands of Yuan in debts due to average family financial conditions, was lured by an introduction to a translation job in Singapore. However, he was eventually deceived and taken to Myanmar (Burma). The perpetrators demanded a transfer of 120,000 Yuan for his release. Mr. Zhang’s elder brother decided to report the incident to the authorities, and the personnel at the local police station where he is registered stated that they have already informed the Chinese Embassy in Myanmar about the situation.

7. Dubai Virtual Asset Regulatory Authority Imposes Personal Fines on suzhu and Other OPNX Founders link

On August 16th, as reported by Bloomberg, the Dubai Virtual Assets Regulatory Authority (VARA) imposed individual fines of 200,000 dirhams (54,451 US dollars) on Su Zhu, Kyle Davies, and the other two co-founders of OPNX for their failure to comply with marketing, advertising, and promotional rules. Previously, in May, the regulatory authority had imposed a fine of 10 million dirhams (2.7 million US dollars) on OPNX, which remained unpaid. VARA stated that it became aware in February that OPNX was soliciting customers and collecting personal data for its platform.

8. Jiannan Technology Temporarily Shuts Down Its 2.0 Exahash/s Mining Power in Kazakhstan Due to Compliance Issues link

On August 18th, Canaan Inc. announced its decision to temporarily halt its mining operations in Kazakhstan, accounting for approximately 2.0 Exahash/s, since July 2023, to ensure legal compliance. This move follows the enactment of the “Digital Mining Activity Licensing Rules” in Kazakhstan. The local partner of the company has already applied for the required license and is currently awaiting its approval.

9. Bitmain Announces 2023 Global Digital Mining Summit in Hong Kong and Unveils Latest Mining Machines link

On August 14th, Bitmain announced that it will be hosting the 2023 Global Digital Mining Summit in Hong Kong from September 22nd to 23rd. During the summit, the company will also unveil its latest product, the ANTMINER S21 mining machine, which boasts an energy efficiency ratio of under 20J/T for the first time.

10. Huobi Founder Li Lin Rents Then Purchases Over 1 Billion HKD Luxury Residence in Hong Kong link

On August 19th, WuBlockChain exclusively informed that a luxurious townhouse, Unit C, located on Lung Cheung Road in Mid-levels, Kowloon, Hong Kong’s largest residential estate, has been acquired by Li Lin, the founder of Huobi. According to Ming Pao, this property was sold under a lease-to-purchase arrangement, allowing for a 90-month lease, approximately 7 and a half years, starting from the 1st of this month. After the completion of the 7.5-year lease, there is an option for a 3-month extension, followed by the opportunity to purchase the unit at a subscribed price of HKD 1 billion. This translates to around 11,692 square feet of practical space, amounting to HKD 85,529 per square foot. If the buyer exercises the HKD 1 billion subscription right, this deal could set a new record for a single-unit townhouse transaction in Kowloon. Previously, Li Lin had sold more than $1 billion worth of Huobi shares to Justin Sun. Li Lin has shown a penchant for purchasing real estate in various cities such as Shenzhen and Beijing.

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