1. The Mainland of China’s Crypto News This Week

1.1 Chainalysis Estimates: Chinese OTC Crypto Brokers Saw Quarterly Inflows Exceeding $20 Billion for Three Consecutive Quarters link

According to Chainalysis, it is estimated that in the three quarters leading up to June, China’s over-the-counter cryptocurrency brokers saw quarterly inflows exceeding 20 billion dollars, marking a record high since 2021, with a total accumulation of 75.4 billion dollars over nine months. Eric Jardine, head of cybercrime research at Chainalysis, noted that given China’s regulatory landscape, which includes bans on cryptocurrency trading and mining, these services undoubtedly exist in a gray economic zone. Chainalysis also highlighted that approximately 55% of the total value received by Chinese OTC traders comes from transfers exceeding 1 million dollars, though the data currently does not allow for distinguishing whether these transfers originate from wealthy individuals or businesses trading on behalf of smaller clients.

1.2 Former Chinese Vice Minister of Finance Calls for Enhanced Cryptocurrency Research, Essential for the Development of the Digital Economy link

The 2024 Tsinghua Wudaokou Chief Economists Forum was held in Beijing on September 28, featuring a speech by former Vice Minister of Finance Zhu Guangyao. He emphasized the importance of studying the development of cryptocurrency, acknowledging its negative impacts and the risks it poses to capital markets, while also highlighting the need to examine the latest international changes and policy adjustments, as they are crucial for the advancement of the digital economy. Zhu reflected on the past decade, noting that the U.S. has viewed cryptocurrencies as highly destructive to international anti-money laundering and anti-terrorism financing efforts, with their volatile values significantly impacting global financial markets. However, he pointed out a major shift in U.S. policy this year, as cryptocurrency has been included in Trump’s campaign agenda, with statements like, “We must embrace cryptocurrency, or China will replace us.” The U.S. Securities and Exchange Commission has also approved the listing of 11 Bitcoin ETFs in both stock and futures markets. Meanwhile, emerging market countries, including members of BRICS like Russia, South Africa, Brazil, and India, have also been making strides in this area.

2. HongKong’s Crypto News This Week

2.1 Hong Kong Aligns Crypto OTC Derivative Rules with European Standards link

The Hong Kong Monetary Authority and the Securities and Futures Commission have jointly announced the adoption of reporting requirements for crypto over-the-counter (OTC) derivatives, as established by the European Securities and Markets Authority (ESMA), including the use of Digital Token Identifiers (DTI). Currently, DTI serves as a central reference point for crypto asset service providers across Europe. The Hong Kong authorities recommend implementing the new reporting requirements by September 29, 2025. Investments in crypto OTC derivatives cannot be classified under the existing five traditional asset classes — interest rates, foreign exchange, credit, commodities, and equities.

2.2 Man Robbed of HKD 4 Million During Currency Exchange Transaction link

A 43-year-old man fell victim to a theft while transacting 4 million Hong Kong dollars in cash, leading to the arrest of two suspects by the police. On the afternoon of September 25, the victim brought 4 million Hong Kong dollars in cash to a cryptocurrency exchange located in a shopping mall on Cheung Sha Wan Road in Sham Shui Po to purchase cryptocurrency. After handing the cash to a female clerk, the victim sensed something amiss and attempted to leave, only to discover that he was locked inside the establishment. He promptly alerted the authorities. The police disclosed that the exchange had been operational for about a month and a half, and the victim had previously completed two successful transactions of approximately 400,000 and 800,000 Hong Kong dollars in early September, suggesting that the perpetrators may have set a trap to gain his trust.

3. South Korea’s Crypto News This Week

3.1 South Korean Financial Regulator: Criminals Involved in Crypto Fraud with Losses Exceeding $4 Million Could Face Life Imprisonment link

According to Decrypt, South Korean financial regulators have issued a warning that criminals involved in cryptocurrency scams resulting in losses exceeding 4 million dollars (approximately 5 billion Korean won) could face life imprisonment. This measure comes in the context of the Virtual Asset User Protection Act, implemented in July 2024, which aims to combat cryptocurrency-related crimes, inspired by the collapse of Terraform Labs founded by Do Kwon and the FTX exchange. Under this legislation, in addition to potential life sentences, offenders may incur fines amounting to three to five times their illicit gains, as well as imprisonment for up to one year. Furthermore, the act mandates that virtual asset service providers (VASPs) store at least 80% of client funds in cold wallets and establish reserves for cybersecurity incidents.

3.2 South Korea Establishes Digital Asset Protection Fund to Assist Users in Recovering Funds from Bankrupt Exchanges link

South Korea is set to establish a Digital Asset User Protection Fund to assist users affected by the collapse of cryptocurrency exchanges in recovering their trapped funds. Initiated by the self-regulatory organization DAXA and approved by the Financial Services Commission (FSC), the fund is scheduled to launch in October. With 10 out of 22 cryptocurrency exchanges in South Korea having shut down and an additional 3 suspending operations, the safety of user funds has become a primary concern. The fund will negotiate with the defunct exchanges to transfer user funds and virtual assets into bank accounts managed by the fund, subsequently contacting users to arrange the reimbursement process.

3.3 South Korean Officers Allegedly Used Military Secrets as Collateral for High-Interest Loans to Purchase Cryptocurrency link

The South Korean Ministry of Defense has confirmed that multiple officers are suspected of using classified military secrets as collateral to borrow from loan sharks to purchase cryptocurrency, raising serious national security concerns. According to a spokesperson for the ministry, the Defense Security Command discovered early this year that an active-duty captain had allegedly violated the Military Secret Protection Act. The officer was tried in a military court in March, sentenced to two years and six months in prison with a four-year probation, and officially discharged on September 19. The implicated officers, primarily young individuals in their twenties and thirties, resorted to offering military codes as collateral for loans after being unable to secure financing from commercial banks.

4. Japan’s Financial Services Agency Plans Reforms for Crypto Gaming Regulations to Streamline Processes for Managing In-Game Crypto Assets link

Nikkei reported that on September 24, Japan’s Financial Services Agency (FSA) announced plans to reform the country’s regulations concerning cryptocurrency in gaming, aiming to streamline the process for businesses handling in-game digital assets. This regulatory overhaul could significantly lower the barriers for Japanese companies entering the blockchain gaming market, encouraging more domestic large enterprises to venture into this field. Furthermore, on September 25, the FSA initiated a working group within the Financial Council to formally begin discussions on revising the Funds Settlement Act. Currently, companies wishing to offer features such as virtual currency purchases within their own services must obtain licenses from exchange operators. This requirement encompasses various aspects, including asset management and compensation fund preparations, placing a considerable burden on businesses.

5. Illegal Underground Crypto Mining Operation Discovered in Dagestan, Russia, Resulting in Significant Energy Losses link

According to a message released by a Dagestan cabinet minister via Telegram, law enforcement officials discovered 17 cryptocurrency mining devices buried several meters underground in the Sergokalinsky district of Makhachkala. To evade regulation, illegal miners have begun establishing underground mining farms and mobile mining units in various locations throughout Dagestan. These illicit mining activities led to a fire at the local 110 kV Novaya substation, causing power outages in parts of the capital for several days. The government plans to allocate approximately 3 billion rubles (around 32.5 million dollars) for the repair of the damaged energy infrastructure.

Crypto Assets TAX Report — Professional,Effortless,Crypto-native. Sponsored by FinTax.

6. Dubai’s Virtual Assets Regulatory Authority Issues New Guidelines Mandating Clear Disclaimers for Companies Marketing Virtual Assets in the UAE link

Dubai’s Virtual Assets Regulatory Authority (VARA) has updated its marketing guidelines for cryptocurrency investments, mandating that starting October 1, companies promoting virtual assets in the UAE must include a prominent disclaimer stating that “virtual assets may lose all or part of their value and are subject to extreme volatility.” VARA CEO Matthew White indicated that this initiative aims to foster trust and transparency in the market. Similarly, other countries, such as Belgium and Singapore, have implemented comparable measures to restrict cryptocurrency marketing.

7. Turkish Vice President: Decision Made Not to Pursue Additional Tax Plans on Stock and Crypto Trading Profits link

Turkey’s Vice President Cevdet Yilmaz informed Bloomberg that the country has decided not to pursue an additional tax plan on profits from stock trading and cryptocurrency. Yilmaz stated that the topic had been discussed previously but has now been removed from the agenda, emphasizing that there is currently no plan for a stock tax. He also noted that future priorities will focus on narrowing the scope of tax exemptions. In June, news of the potential additional taxes caused a decline in the Turkish stock market, prompting the government to postpone its plans for taxing stocks.

8. Market Concerns Grow Over New Prime Minister’s Hawkish Policies in Japan link

Concerns over the new Prime Minister of Japan’s economic policy shift towards tightening have led to a surge in the yen, a decline in Japanese stocks, and rising yields on 10-year government bonds. Market anxiety is heightened by the potential for a repeat of the yen’s carry trade reversal observed in early August if the yen continues to strengthen. A report from China International Capital Corporation suggests that Shigeru Ishiba has a preference for relatively tighter monetary policy. Given the historical collaboration between the Bank of Japan and the government, Ishiba’s ascension to the premiership may lead to a marginal hawkish shift in the central bank’s stance.

9. Citi Survey: Family Offices’ Investments in Cryptocurrency Double Year-Over-Year link

According to Citibank’s “2024 Global Family Office Survey,” the proportion of family offices optimistic about cryptocurrency has doubled this year from 8% to 17%, with direct investment remaining their preferred method. Compared to smaller family offices, larger ones show greater interest in tokenized real-world assets (RWAs). The Asia-Pacific region is at the forefront of digital asset adoption, with 37% of family offices either investing in or expressing interest in digital assets.

10. ETHShanghai 2024 Scheduled for October 16, with Vitalik Delivering the Opening Address Online link

ETHShanghai 2024 will take place on October 16 at 9:30 AM in Shanghai, co-organized by key members including ETHPanda, TinTinLand, and ChainFeeds. Vitalik Buterin will participate online and deliver the opening remarks. Confirmed attendees also include Mask Network founder Suji Yan, EthStorage founder Qi Zhou, and Namefi.io CEO Victor Zhou. ETHShanghai is an annual summit and gathering for the Ethereum community, specifically targeting developers, researchers, founders, investors, and enthusiasts of the Ethereum ecosystem in the Asia-Pacific region.

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