Korean crypto contagion, Bank of China on Ethereum, HK’s exchange red carpet: Asia Express

Hong Kong sets out the red carpet for crypto exchanges

According to a June 15 report from The Financial Times, the Hong Kong Monetary Authority is pressuring major monetary institutions to accept crypto clients. In one instance, Johnny Ng Kit-Chong, Member of the Legislative Council of Hong Kong, composed on June 10:

The move is apparently the first act of a Chinese financial institution tokenizing a security in Hong Kong. The notes are governed by both Hong Kong and Swiss law as per their origination by the Swiss financial investment bank UBS.

Do Kwon faces a long stretch in jail in a range of countries.

On Jun. 1, Hong Kong Securities Regulatory Commission released regulations stipulating the requirements for cryptocurrency exchanges to look for a license to operate in Hong Kong. For managed trading platforms, a license application need to be sent to the Securities Regulatory Commission within nine months, or prior to Feb. 29, 2024. If not, their organization in Hong Kong should be terminated prior to May 31, 2024.

On June 14, South Korean yield platform Haru Invest submitted a criminal complaint versus its consignment operator B&S Holdings, declaring “fraudulently supplied management reports containing incorrect details.”.

On June 15, The High Court of Montenegro in Podgorica purchased Terraform Labs CEO Do Kwon and CFO Han Chang Joon back to prison pending extradition proceedings to South Korea for charges relating to their role in the $40 billion collapse of the Terra Luna environment. Earlier this month, Kwon and Joon were launched on 400,000 euros bail each in their ongoing passport fraud case after a Montenegrin Basic Court dismissed an appeal by prosecutors.

” There have been a lot of news about worldwide virtual asset exchanges in the past 2 days. I send out forth an invite to welcome international virtual property exchanges, consisting of @coinbase, to come to Hong Kong, make an application for a certified exchange, and negotiate a listing strategy. I am prepared to offer assistance!”

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Formerly, UBS had actually released a $50 million tokenized fixed-rate note in Dec. 2022. On the other hand, the federal government of Hong Kong released an 800 million Hong Kong dollar ($ 100 million) tokenized green bond on Feb. 16, 2023, underwritten by 4 banks and priced with a yield of 4.05% per year..

The Hong Kong Web 3.0 Festival gallery hall (Twitter).

Haru had stopped briefly deposits and withdrawals the day before, mentioning, “We have actually found through our internal inspection process that specific details provided by a consignment operator was suspected to be false.” Previously, worried financiers took images of presumably empty business offices and implicated the firm of orchestrating a “carpet pull,” which Haru states is incorrect.

A curious commentary regarding the matter originated from Jun Du, the co-founder of cryptocurrency exchange Huobi Global, who wrote:.

Joseph Chan Ho Lim, Hong Kongs Under Secretary for Financial Services and the Treasury, revealed in an interview that The Hong Kong Monetary Authority has actually carried out public assessments on the launch of stablecoins and is in the procedure of establishing a regulative framework by the end of the year.” Hong Kong will continue to support the advancement of the market in the future and invites the industry and skills to come to the SAR,” the politician stated.

” Working together with UBS, we are driving the simplification of digital property markets and items, for clients in Asia Pacific through the advancement of blockchain-based digital structured products. We are motivated by the development of Hong Kongs digital economy and are dedicated to promoting the digital change.”.

Du alerted that contagion associated to centralized trading platforms, which started with FTX, is just the beginning. “Not only the newcomers are puzzled, but also the OGs in the market. When will the roaring of the black box of centralized crypto entities end?” the previous blockchain executive asked, while also expressing his doubts on whether the market will witness a “depression” or be “ushered into a new bull market” after such issues are fixed..

In 2015, Huobi co-founders Jun Du and Leon Li reportedly offered 100% of their stake in the exchange to an entity managed by Chinese blockchain character and Tron creator Justin Sun. The latter claims that the exchange is now rewarding after a period of reorganization, which by the method, included crushing a worker revolt..

Their brief duration out on bail was not a happy time either. During their respite from jail, South Korean prosecutors announced they would use to freeze Kwon and associates $13 million kept in Swiss savings account. A brand-new hearing on charges of falsifying documents is set up for June 16 in the exact same Basic Court.

Bank of China mints debt notes on Ethereum.

Do Kwon: In and out of jail.

The relocation instantly affected South Korean Bitcoin loaning firm Delio, which quickly announced the momentary suspension of consumer withdrawals “in order to safely safeguard the assets of clients currently in custody,” pointing out issues at Haru Invest. Delio is one of the largest of such entities in South Korea, holding an approximated $1 billion in Bitcoin, $200 million in Ether, and $8.1 billion in altcoins..

Zhiyuan Sun.
Zhiyuan sun is a journalist at Cointelegraph concentrating on technology-related news. He has numerous years of experience composing for significant financial media outlets such as The Motley Fool, Nasdaq.com and Seeking Alpha.

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” With the detonation of Delio, the roaring of [crypto] providing platforms is generally over.”.

According to the countrys National Security Council, Kwon and Spajić have actually been pals for five years, and last satisfied in Belgrade in Dec. 2022. Detectives declare there is proof of funding the PES campaign from Kwons laptop computer. If convicted, Kwon not only deals with more prison time in Montenegro however might also serve up to 40 years in a South Korean jail, and much more jail time possibly waits for in the U.S.

Picture presumably revealing empty Haru Invest corporate workplaces after the announcement. (Telegram).

According to local sources, Kwon and Joon will be detained for a period of 6 months as the court picks their extradition case. Kwon and Joon likewise face extradition to the U.S. on 11 charges connecting to fraud, breach of trust, and embezzlement.

And if that wasnt enough, there is yet another legal action versus Kwon. On June 16, Kwon will be questioned by the Special State Prosecutors Office for a letter he sent from detention to government officials, divulging his connections with the leader of the Europe Now Movement (PES), Milojko Spajić.

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According to a June 15 report from The Financial Times, the Hong Kong Monetary Authority is pressing major monetary organizations to accept crypto customers. In one instance, Johnny Ng Kit-Chong, Member of the Legislative Council of Hong Kong, composed on June 10:

I send out forth an invitation to welcome worldwide virtual property exchanges, consisting of @coinbase, to come to Hong Kong, use for a certified exchange, and negotiate a listing strategy. On Jun. 1, Hong Kong Securities Regulatory Commission issued guidelines stating the requirements for cryptocurrency exchanges to use for a license to run in Hong Kong. The notes are governed by both Hong Kong and Swiss law as per their origination by the Swiss investment bank UBS.

Other Questions People Ask

What impact does the Korean crypto contagion have on Hong Kong's exchange regulations?

The Korean crypto contagion has prompted Hong Kong to tighten its regulations for cryptocurrency exchanges. Following the collapse of firms like Haru Invest, the Hong Kong Securities Regulatory Commission has mandated that exchanges apply for licenses by February 29, 2024. This move aims to ensure that only compliant and trustworthy platforms operate within the region, thereby safeguarding investors and maintaining market integrity.

How is the Bank of China involved with Ethereum in the context of the crypto contagion?

The Bank of China has taken significant steps by minting debt notes on the Ethereum blockchain, marking a notable intersection of traditional finance and cryptocurrency. This initiative reflects a broader trend where financial institutions are exploring blockchain technology amidst the ongoing Korean crypto contagion. By leveraging Ethereum, the Bank of China aims to enhance efficiency and transparency in its financial operations while navigating the evolving landscape of digital assets.

What measures are being taken by Hong Kong to attract crypto exchanges amidst the contagion?

Hong Kong is actively rolling out measures to attract international crypto exchanges by offering a regulatory framework that encourages compliance and innovation. The Hong Kong Monetary Authority is urging major financial institutions to accept crypto clients, signaling a welcoming stance towards the industry. Additionally, local officials are inviting exchanges like Coinbase to apply for licenses, aiming to position Hong Kong as a leading hub for digital assets in Asia.

What are the implications of Haru Invest's situation for the Korean crypto market?

The situation with Haru Invest, which recently filed a criminal complaint against its operator for fraud, highlights the fragility of the Korean crypto market amid ongoing contagion effects. This incident has led to increased scrutiny of crypto firms and raised concerns among investors about the safety of their assets. As a result, other platforms like Delio have also suspended withdrawals, indicating a ripple effect that could further destabilize confidence in the sector.

How does the ongoing legal trouble of Do Kwon affect the perception of Korean crypto firms?

Do Kwon's legal troubles, including extradition proceedings related to the Terra Luna collapse, significantly tarnish the reputation of Korean crypto firms. His case exemplifies the risks associated with centralized trading platforms and has led to heightened regulatory scrutiny across the industry. As investors become more cautious, this situation may deter new entrants and challenge existing firms in rebuilding trust within the market.