1. South Korea’s Crypto News This Week

1.1 South Korea’s Financial Services Commission Plans to Establish Virtual Asset Committee This Month and Hold First Meeting link

The South Korean Virtual Assets Committee is set to be established this month, with its first meeting expected to take place shortly thereafter. This committee, formed by the Financial Services Commission (FSC) under the Virtual Asset User Protection Act that came into effect in July, will serve as a policy advisory body. Once established, it will address key issues such as the approval of virtual asset spot ETFs and corporate investments in virtual assets.

1.2 South Korea’s Financial Supervisory Service Investigates Bithumb for Abnormal Cryptocurrency Transactions link

Lee Bok-hyun, head of South Korea’s Financial Supervisory Service, announced during a parliamentary committee meeting that regulators are investigating suspicious cryptocurrency trading activity on the Bithumb exchange. The investigation is focusing on the unusual price fluctuations of cryptocurrencies like Avail in the Korean market, especially those inconsistent with global market trends. Avail, which was listed at 263 KRW on July 23, surged to 3,500 KRW within 15 minutes before plummeting back to 296 KRW in less than a day, raising concerns of potential price manipulation.

2. UAE to Introduce Legal Framework for DAOs link

The Ras Al Khaimah Digital Assets Oasis (RAK DAO), a free economic zone in the UAE, is in the process of establishing the world’s first legal framework for Decentralized Autonomous Organizations (DAOs). This framework aims to regulate and support the legal operation of DAOs. Under the new system, DAOs will be able to register in the UAE without requiring a physical presence in the country. These organizations can also open bank accounts, with the cost of establishing a DAO in the UAE potentially starting at around $3,000.

3. Fuzhou Police Dismantle Gang Using Virtual Currencies for Money Laundering link

Recently, the Fuzhou police uncovered a significant case involving a network that provided fund transfers and payment settlement services for online fraud and other illicit activities. Upon investigation, the police discovered that the criminal gang operated a fourth-party payment platform, utilizing stablecoins in cryptocurrency to facilitate fund transfers for illegal futures trading platforms, profiting through commission kickbacks. In July 2024, a coordinated nationwide operation led to the arrest of 11 suspects, including the ringleader, surnamed Pan.

4. Indian Citizen Sentenced to Five Years for $20 Million Cryptocurrency Fraud by Forging Coinbase Website link

Court documents reveal that since June 2021, Tomar and his accomplices defrauded hundreds of victims worldwide by impersonating the Coinbase Pro website, using deceptive domain names such as CoinbasePro.com. The fraudsters employed phishing websites to steal login credentials or impersonated customer service representatives to trick users into providing two-factor authentication codes. This enabled the criminals to unlawfully access victims’ legitimate Coinbase accounts and transfer cryptocurrency. In one instance, a victim from the Western District of North Carolina lost over $240,000 worth of cryptocurrency in February 2022 after logging into their Coinbase account through the fake website. Tomar ultimately converted the stolen cryptocurrency into cash, using it to purchase luxury watches, cars, and other items. He was arrested at Atlanta Airport on December 20, 2023, and pleaded guilty on May 20, 2024.

5. Montenegro Again Suspends Do Kwon’s Extradition Proceedings link

On October 18, the Constitutional Court of Montenegro suspended the extradition of former Terraform Labs founder and CEO, Do Kwon. The South Korean Supreme Court had entrusted the Ministry of Justice with the final decision regarding Do Kwon’s extradition, including his destination, after a ruling in September. Both the United States and South Korea have submitted requests for his extradition. The court stated that the process would be halted until a ruling is made on Do Kwon’s appeal.

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6. Telegram to Open Office in Kazakhstan link

Telegram is set to open an office in Kazakhstan to enhance regulatory compliance. Reportedly, 12.5 million Kazakhstani users — over half of the country’s 20 million population — use the platform each month. The Kazakhstani government has expressed its active cooperation with Telegram in swiftly removing illegal content and blocking unlawful channels. Platforms like Telegram, WhatsApp, and TikTok are now required by law to establish local representation in Kazakhstan.

7. DBS Bank in Singapore Launches New Token Service Product link

DBS, Singapore’s largest bank, has launched “DBS Token Services,” integrating tokenization and smart contract functionalities with its existing banking services. This service is said to combine DBS’s permissioned blockchain, compatible with the Ethereum Virtual Machine, with its core payment engine and various industry payment infrastructures. Additionally, smart contracts will enable institutions to programmatically manage the use of funds, offering enhanced control and automation.

8. CMB Wing Lung Bank Announces Launch of Virtual Asset ETF Trading Services in Hong Kong Stock Market link

China Merchants Yonglong Bank has announced the launch of virtual asset ETF trading services for the Hong Kong stock market, becoming one of the first Chinese-funded banks in the region to offer such services. Assistant General Manager Lin Shufen stated that the Hong Kong government is actively promoting the city as an international virtual asset hub. With the geographical advantages of being connected to mainland China and the Greater Bay Area, this initiative presents new opportunities for the development of virtual assets in Hong Kong and for local banks.

9. Siam Commercial Bank Becomes Thailand’s First Bank to Use Stablecoins for Cross-Border Payments link

Thailand’s fourth-largest bank, Siam Commercial Bank (SCB), has become the country’s first financial institution to offer stablecoin-based cross-border payment and remittance services. This stablecoin remittance service will be provided in collaboration with fintech company Lightnet. The initiative aims to reduce transaction costs and offer customers faster international transfers. The stablecoin-based service will enable SCB customers to send and receive payments globally, 24/7. The service has been trialed through Thailand’s banking digital asset sandbox to ensure compliance with regulatory standards and to provide flexibility for future expansion.

10. Blogger Shares Experience of Binance Account Freeze; Funds Released After Judicial Review link

A blogger known as “Octopus Brother” recently shared that after a month of judicial review, tens of millions in his frozen funds have been released. He revealed that the freeze was triggered by hackers exploiting his A hot wallet for illicit activities, leading law enforcement to trace the activity back to his Binance account and implement risk control measures. Octopus Brother detailed the process, emphasizing that both Binance and other exchanges needed to cooperate with judicial authorities in this matter, as his situation extended beyond the unilateral decisions of the exchanges. Ultimately, after submitting proof of legitimate income and undergoing a month-long judicial review, law enforcement lifted the risk controls on his account, and Binance released the funds. Octopus Brother concluded by advising users to manage each hot wallet carefully to avoid unnecessary legal disputes arising from hacking incidents.

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