1. Hong Kong’s Weekly Summary

1.1 Hong Kong Securities and Futures Commission Adds Two Suspected Virtual Asset Trading Platforms on the 18th, Named DIFX and Aramex link

The official website of the Hong Kong Securities and Futures Commission indicates that on January 18th, two suspicious virtual asset trading platforms, namely DIFX and Aramex (both with only English names), have been newly added. The notes reveal that both DIFX and Aramex claim to be entities of virtual asset trading platforms and are suspected of engaging in fraudulent activities on their operating websites. The companies employ names strikingly similar to another cryptocurrency exchange, though there is no evidence of any affiliation, leaving investors unable to withdraw funds previously deposited with these entities.

1.2 Hong Kong-based Company VSFG Plans to Launch Spot Bitcoin ETF in the First Quarter link

Venture Smart Financial Holdings Ltd. (VSFG), a Hong Kong-based financial services company, has announced its intention to submit an application to the Hong Kong Securities and Futures Commission to launch a physical Bitcoin ETF within this quarter. Brian Chan, the Head of Investment and Product Group at the company, stated, “This is a market of immense potential, and our objective is to manage assets totaling USD 500 million by the end of this year.” In December of last year, the Hong Kong Securities and Futures Commission expressed readiness to consider applications for virtual asset physical ETFs.

2. South Korea’s Weekly Summary

2.1 South Korean Government Considers Adjusting Cryptocurrency Taxation Policy link

The South Korean government plans to comprehensively reevaluate the cryptocurrency (virtual asset) tax policy originally scheduled for implementation in January 2025. This move comes in response to public concerns about the perceived unfair taxation treatment of cryptocurrencies and stocks following the abolition of the capital gains tax on financial investments. Currently, the non-taxable threshold for stocks is 50 million Korean won, while the non-taxable threshold for cryptocurrencies is only 2.5 million Korean won.

2.2 South Korean Regulatory Agency Contemplates Regulatory Measures for Virtual Asset Mixers link

The Financial Intelligence Unit (FIU) of the Financial Services Commission in South Korea is contemplating the regulation of virtual asset mixers, as there are currently no specific sanctions in place for mixers in the country. A representative from the FIU stated, “We recognize the significant money laundering risks associated with the use of mixers.” In October of last year, the Financial Crimes Enforcement Network (FinCEN) of the United States Treasury Department announced the legislative notice to regulate mixers as part of the anti-money laundering provisions governing money services.

3. Monetary Authority of Singapore Prohibits Listing of Bitcoin Spot ETFs in its Territory link

The Monetary Authority of Singapore has conveyed its disapproval for the listing and accessibility to retail investors of financial products such as Bitcoin spot ETFs in Singapore. This is due to cryptocurrencies like Bitcoin not being categorized as eligible assets for ETFs. Nevertheless, capital market intermediaries licensed by the Monetary Authority of Singapore can offer investments related to overseas markets, enabling retail investors to trade in overseas-listed physical Bitcoin ETFs through local brokerage firms.

4. Cryptocurrency Exchange Trading Volume in Indonesia Decreased by 60% in 2023 Compared to the Previous Year link

2In 2023, the trading volume of cryptocurrency exchanges in Indonesia witnessed a 60% decline compared to the previous year. Local exchanges attribute a portion of this decrease to income and value-added taxes, which are applicable to cryptocurrencies in the country, categorizing them as commodities. Local exchanges aim to reclassify cryptocurrencies as securities, seeking to alleviate some tax burdens and attract users back to the market.

5. Thailand Lifts Restrictions on Individual Investments in Specific Digital Tokens link

The Securities and Exchange Commission of Thailand has lifted restrictions on individual investors for specific digital assets, such as real estate-backed ICOs and infrastructure-supported ICOs. The previous limit was set at a maximum of 300,000 Thai Baht per person. The removal of investment restrictions took effect from January 16th. Additionally, the commission announced modifications to certain rules governing custodianship providers and digital asset business operators to enhance regulatory oversight in the digital asset sector.

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6. UN Report: USDT Plays a Central Role in Money Laundering Cases in Illegal Casinos in Southeast Asia link

The United Nations Office on Drugs and Crime released a report on Monday, indicating that USDT is at the core of the explosive growth of the fraud industry. The development of cryptocurrencies and the rapid advancement of other technologies have stimulated organized crime groups in Southeast Asia to exploit the practice of laundering illegal funds through black-market casinos for decades. The report highlights how organized crime effectively created a parallel banking system using new technologies, and the proliferation of loosely or completely unregulated online casinos and cryptocurrencies has intensified the crime ecosystem in the region.

Tether responded to the UN assessment, expressing disappointment and noting that the evaluation report specifically emphasizes USDT’s involvement in illegal activities while overlooking its role in aiding the development of emerging market economies. Tether collaborates with global law enforcement agencies, including the U.S. Department of Justice, Federal Bureau of Investigation, and the U.S. National Security Agency, to exert numerous constraints. Additionally, the report overlooks the crucial role of blockchain technology in detecting and preventing illegal activities.

7. HTX’s Weekly Summary

7.1 Huobi HTX Announces the Launch of HTX DAO Token link

HTX has announced the introduction of HTX DAO tokens. Starting from January 22nd at 16:00 (UTC+8), the HT-to-HTX conversion feature will be implemented. This includes the discontinuation of nearly all HT-related benefits, such as the deduction of transaction fees using HT. Instead, HTX will be used for fee deductions, providing a 25% discount on spot trading fees and a 5% discount on contract trading fees, among other advantages.

7.2 Huobi HTX Records Q4 Revenue of Approximately $37.09 Million link

In the fourth quarter of 2023, HTX has announced the destruction of a total of 2.967 million Huobi Tokens (HT). HTX allocates 20% of the overall platform revenue for the purpose of HT destruction. This implies that the quarterly revenue for HTX in Q4 is approximately 37.09 million USD. The revenues for HTX in the preceding three quarters were 16.55 million, 26.91 million, and 24.75 million USD, respectively.

8. OKX’s Middle East Subsidiary Obtains Virtual Asset License in Dubai link

OKX’s subsidiary, OKX Middle East Fintech FZE, located in Dubai, has announced the acquisition of a license from the Dubai Virtual Assets Regulatory Authority (VARA). The company is set to commence full-scale operations in the coming weeks. Rifad Mahasneh, the General Manager for OKX in the Middle East, mentioned that OKX Middle East Fintech FZE will soon offer local currency trading pairs such as AED/BTC and AED/ETH.

9. Binance and Gulf Energy’s Joint Venture Begins Operating a Cryptocurrency Exchange in Thailand link

Binance’s joint venture with Thailand’s Gulf Energy, named Gulf Binance, has commenced full-scale cryptocurrency exchange operations in Thailand. According to the announcement, Thai users can utilize their Binance TH accounts to buy and sell cryptocurrencies using the local currency.

10. HashKey Group Completes Nearly $100 Million in Series A Financing link

HashKey Group has announced the completion of a nearly $100 million Series A financing round with a pre-money valuation exceeding $1.2 billion. The diversified business units under HashKey Group include the Hong Kong-licensed compliant exchange, HashKey Exchange, institutional asset management firm HashKey Capital, collateral services provider HashKey Cloud, tokenization service entity HashKey Tokenisation, and community operations business HashKey NFT, among others.

According to Bloomberg, OKX Ventures is one of the major investors in this $100 million funding round for HashKey. OKX, which hosted the first Hong Kong Web3 conference organized by Matrixport in 2023, was also the title sponsor.

On January 18th, HashKey Exchange announced a promotional activity offering a 50% discount on buying digital assets. According to the rules, users who complete account registration and trading between January 18th, 2024, 00:00, and January 26th, 2024, 23:59, can enjoy a minimum 50% discount on purchasing various mainstream cryptocurrencies, including BTC and ETH.

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