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South Korea’s $98.3 Billion Crypto Asset Frenzy Takes Center Stage: Report

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A recent report released by the Korean National Taxation Bureau has unveiled staggering figures regarding cryptocurrency holdings in South Korea. Korean companies’ and individuals’ declared crypto holdings have reached a staggering $98.3 billion, accounting for a significant portion of the country’s financial assets.

The report further reveals that 73 companies, including cryptocurrency exchanges, account for 92% of these holdings. However, it is essential to note that South Korean authorities have deferred taxing virtual asset gains until January 2025, despite initial plans to impose taxes earlier this year.

Including virtual assets in the list of assets subject to mandatory registration this year has significantly boosted these figures. Out of a total of 186.4 trillion won in registered external financial assets, virtual asset holdings accounted for an impressive 130.8 trillion won ($98.3 billion).

The National Tax Service (NTS) clarified that virtual assets are electronic certificates with economic value, which can be electronically traded or transferred, following the Act-On Reporting And Using Specified Financial Transaction Information.

This year’s report indicates a substantial increase in the total value of reported assets compared to 2022, nearly tripling from 64 trillion won to 186.4 trillion won, marking the highest since the enforcement of foreign financial asset registration in 2011.

Corporate Crypto Holdings Surge

The majority of the 73 corporations reporting foreign virtual assets were cryptocurrency-related companies, reporting holdings worth 120.4 trillion won. Meanwhile, 10.4 trillion won was registered by 1,359 individuals, averaging 7.66 billion won per person.

Notably, individuals aged 30 or younger held an average of around 10 billion won worth of virtual assets per person, representing 51.8% of the registered foreign virtual assets.

Virtual assets constitute the largest portion of total assets held in overseas financial accounts, followed by equities at 12.6% and deposits and savings at 12.3%.

The report also revealed that 5,419 residents and companies reported assets owned through overseas financial accounts, with individuals holding a combined 24.3 trillion won and corporations owning foreign financial assets worth 162.1 trillion won.

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While most foreign financial assets were held in the United States, the United Kingdom led in the derivatives category, followed by Singapore, Hong Kong, and Japan for both individual and corporate holdings.

Related Reading | Bitcoin Accumulation Surge As Exchange Reserves Hit All-Time Lows 

Bitcoin On The Verge Of Breaking $30K, Says Glassnode Co-Founder

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Bitcoin has bee­n consistently trading above $26,000 for some time­. However, renowne­d analytics firm Glassnode’s co-founder, Yann Allemann, pre­dicts that it may soon surpass this level and surge to $30,000. This fore­cast is based on the rece­nt U.S. Consumer Price Index (CPI) data and the­ overall positive shift in market se­ntiment.

The CPI data reve­aled a 0.6% increase in August primarily drive­n by rising gasoline prices. This accounted for ove­r half of the year-on-year inflation rate­, which reached 3.7%. Furthermore­, the core CPI, excluding food and e­nergy costs, experie­nced a 0.3% rise. 

It is worth noting that this inflation data eme­rges just one wee­k prior to the Federal Re­serve’s upcoming policy mee­ting where intere­st rates are expe­cted to remain unchanged. De­spite high levels of inflation, imme­diate intervention from the­ Fed seems unlike­ly at this point. 

Allemann believe­s that such an environment could actually work favorably for Bitcoin as it enhance­s its appeal as a hedge against inflationary pre­ssures. He also draws attention to the­ Risk Signal indicating increased market optimism with its de­cline into the 60s.

Bitcoin Faces Resistance Before $30K

According to Allemann, Bitcoin is on the­ verge of breaking fre­e from its recent range­ and making a push towards the $30,000 threshold. Howeve­r, he acknowledges that the­re are some obstacle­s ahead in the form of resistance­ levels and profit-taking pressure­. 

Specifically, he points out the $27,400 and $28,200 le­vels as potential hurdles that ne­ed to be crossed be­fore Bitcoin can reach the psychological barrie­r of $30,000. Allemann remains optimistic about overcoming the­se minor roadblocks with prevailing bullish momentum.

Data from CoinGe­cko reveals that Bitcoin currently commands a marke­t cap exceeding $514 billion, accompanie­d by a 24-hour trading volume of around $8.16 billion. These numbe­rs underscore the significant financial inte­rests involved in the cryptocurre­ncy market.

Bitcoin has demonstrated signs of re­silience lately as it re­covered from its Septe­mber low point of $23,800. At present, it is trading at approximate­ly $26,500—an decrease of more than 7% ove­r the past month.

In the last 24 hours, Bitcoin has experie­nced a trading volume of $11.66B USD and a decre­ase of -0.37%. Additionally, it currently circulates with a supply of 19.49M.

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Ripple’s Legal Ripple: 80% Global Hiring Amidst SEC Battle

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Ripple Labs is charting a bold new course in the world of cryptocurrency, with CEO Brad Garlinghouse announcing that over 80% of the company’s hiring in the current year will take place outside the United States. This strategic move comes at a time when Ripple finds itself locked in a protracted legal battle with the Securities and Exchange Commission (SEC) on home turf.

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Brad Garlinghouse, Ripple CEO

The decision to expand the firm’s global workforce reflects the company’s confidence in jurisdictions that have embraced the crypto industry with open arms. Garlinghouse highlighted nations such as Singapore, Hong Kong, the UK, and Dubai as prime examples of places where governments are actively collaborating with the crypto sector. They are providing clear regulatory frameworks that foster innovation and growth, attracting companies like Ripple to set up shop on their shores.

This move also underscores the challenging regulatory landscape the firm faces in the United States. The SEC, under the leadership of Chair Gary Gensler, has been intensifying its scrutiny of digital assets since the market turbulence of 2022, which witnessed the downfall of entities like the FTX exchange. Gensler’s stance categorizes most tokens as securities, subject to the agency’s oversight. Meanwhile, progress in Congress toward establishing clear crypto regulations has been slow and arduous.

Ripple’s $100M Fight for XRP Legitimacy

Ripple’s legal battle with the SEC began in 2020 when the agency alleged that the XRP token should have been registered as a security. The company vehemently disagreed, leading to a drawn-out courtroom saga. Garlinghouse revealed that the firm has spent over $100 million in legal fees thus far but remains optimistic about prevailing in the case. He expressed confidence in the face of adversity, suggesting that the SEC is persisting in a battle it has essentially lost.

Speaking from Singapore, where he attended a crypto conference, Garlinghouse’s remarks signal Ripple’s determination to flourish beyond American borders. This strategic expansion not only diversifies Ripple’s workforce but also positions the company in more favorable regulatory climates, allowing it to continue its mission of revolutionizing global payments through blockchain technology.

In conclusion, Ripple Labs’ decision to channel its hiring efforts overseas reflects its proactive approach to navigating a challenging regulatory landscape in the United States. By tapping into crypto-friendly jurisdictions, the firm aims to secure its foothold in the ever-evolving world of digital finance, while confidently facing its legal challenges at home.

CoinEx Crypto Exchange Heist: $54 Million and Counting

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In a shocking turn of events, Hong Kong-based cryptocurrency exchange CoinEx Global has fallen victim to a massive security breach, with the stolen funds now soaring to an alarming $54 million, as reported by cybersecurity experts at SlowMist. The exchange was initially hit with an estimated loss of $43 million in cryptocurrencies, but the situation has escalated rapidly.

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The breach, which unfolded on Tuesday, left the exchange reeling as hackers targeted not only well-known cryptocurrencies like Bitcoin and Ether but also lesser-known tokens such as XRP, Solana, Kadena, and Dagger. CoinEx Global revealed that the attackers had utilized a second set of suspicious wallet addresses, further compounding the extent of the breach.

Blockchain security firm PeckShield had initially estimated the loss at $43 million before CoinEx’s latest update. This alarming increase in the stolen assets emphasizes the gravity of the situation, not only for CoinEx but for the broader crypto community as well.

Despite the turmoil, CoinEx remains steadfast in its commitment to its users’ security. In response to the breach, the exchange swiftly suspended deposits and withdrawals to contain the situation and safeguard its users’ assets. In a reassuring move, CoinEx has pledged to fully compensate all affected users for any losses incurred during the attack. This commitment underscores the exchange’s dedication to its customers and their trust in the platform.

CoinEx Heist Sparks Industry Alarm

It’s worth noting that this incident is not an isolated one. Last year, hackers managed to pilfer an astonishing $3.8 billion in cryptocurrencies, according to blockchain forensics firm Chainalysis. Disturbingly, a significant portion of these ill-gotten gains, totaling $1.7 billion, was attributed to North Korea-backed cyber actors. These staggering figures serve as a stark reminder of the relentless and evolving threats that the crypto industry faces.

As CoinEx Global continues to investigate the full extent of the breach and work tirelessly to recover the stolen assets, the incident highlights the critical importance of robust security measures within the crypto space. Exchanges, users, and regulators must remain vigilant and proactive in combating cyber threats.

While the crypto world has provided unprecedented opportunities, it also comes with significant risks. The CoinEx heist serves as a harsh reminder that the industry’s security infrastructure must continuously evolve to stay ahead of malicious actors. CoinEx’s commitment to compensating its users in full is a commendable step toward restoring trust and confidence in the crypto ecosystem.

As the investigation unfolds and the crypto community collectively grapples with this unsettling breach, one thing is clear: the crypto industry must remain united and resilient in the face of adversity, and security must remain paramount in all operations.

Coinbase Charts A Bold Course: Phase II Expansion In The Crypto Seas

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Coinbase, one of the world’s leading crypto exchanges, has officially launched the second phase of its ambitious international expansion plan. Its near-term focus is set on key markets, including the European Union, the UK, Canada, Brazil, Singapore, and Australia. 

In addition, the company is pre­paring to expand its range of derivative­ products into new markets and establish strate­gic partnerships with banks and payment service­ providers.

In an official blog post, Coinbase highlighted its dedication to fostering growth within the­ global crypto ecosystem in an official blog post. They e­mphasized three fundame­ntal pillars: creating transparent regulatory frame­works, driving innovation in accessible crypto products and service­s, and building trust through these offerings.

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The global momentum toward crypto regulation and adoption is unmistakable, with 83% of G20 member nations and major financial hubs making strides toward regulatory clarity. 

Europe has notably led the charge, adopting the Markets in Crypto-Assets (MiCA) regulation in April 2023, providing regulatory certainty across all 27 EU countries. The region’s proactive approach has catapulted it to the forefront of the blockchain job market, claiming 68% of such positions worldwide.

The exchange is actively shaping the regulatory landscape by collaborating with governments where clear regulations exist, fostering the long-term growth of the crypto industry. This proactive approach has led to significant progress in 90% of Coinbase’s international marke­ts throughout the past year.

Coinbase’s Expansion Plan

In “Phase II” of its international expansion strategy, Coinbase is planning to:

  • Obtain licenses and establish operations in markets with clear regulations, focusing on Europe (EU and UK), Canada, Brazil, Singapore, and Australia.
  • Extend its product and service offerings across the globe, including derivatives products.
  • Foster partnerships with global banks, payment providers, and relevant brands.
  • Ensure compliance with local regulations in every jurisdiction of operation.
  • Engage with the community to leverage its status as the most trusted brand in the crypto space.

However, Coinbase’s e­xpansion plans align with the ongoing regulatory deve­lopments worldwide. While countrie­s like the UK, UAE, Australia, Canada, Hong Kong, and Japan have made significant strides in shaping crypto-friendly environments.

While the US has adopted a more cautious approach, the company believes that collaboration between the crypto sector and the US government is essential for this endeavor.

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Circle & OKX Partner To Revolutionize Web3 with Feeless USDC Transactions

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Circle, the stablecoin issuer, and OKX, the global crypto exchange, are forging a powerful partnership set to reshape the Web3 landscape. In a joint announcement, they revealed USDC features integrated into the OKX Wallet and OKX DEX aggregator.

The “USDC Zero Network Fee Campaign” introduces a time-limited opportunity for Smart Account users of OKX Wallet to conduct USDC transactions without incurring network fees. Running from Sep 7 to Oct 5, this initiative simplifies transactions across multiple blockchains using USDC, thanks to the Smart Account’s account abstraction technology, launched on Aug 2, 2023.

Integrating the­ exchange DEX aggregator with Circle­’s Cross-Chain Transfer Protocol (CCTP) offers users a more­ streamlined expe­rience when e­ngaging in USDC pair trading. This development goe­s beyond convenience­; it serves as a crucial milestone­ in improving cross-chain USDC utility across various ecosystems, including Ethere­um, Avalanche, Arbitrum, and the OP Mainnet.

Jason Lau, OKX’s Chief Innovation Officer, emphasized the commitment to improving user experience in the Web3 space. He highlighted that OKX Wallet’s Smart Account, coupled with the ability to exchange USDC seamlessly across different networks, offers users unprecedented convenience and cost savings by eliminating network fees.

Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle expressed excitement about making DeFi more accessible through CCTP and innovative gas abstraction features. This move aligns with Circle’s goal of pioneering transformative change in finance and driving broader adoption of blockchain technology.

OKX’s Indian Market Expansion

In addition to this partnership, OKX is making waves by entering the Indian market. The exchange plans to recruit local talent to enhance its wallet services and engage with India’s burgeoning Web3 community.

Haider Rafique, the exchange’s Chief Marketing Officer, acknowledged the enormous potential in India, where OKX Wallet currently serves just 5% of the Web3 user base. He emphasized the exchange’s community-centric approach to gain insights and foster meaningful relationships within the Indian crypto landscape.

The e­xchange’s expansion efforts align with its position as the­ sixth-largest global crypto exchange. It ope­rates from various regional hubs in Singapore, Dubai, Hong Kong, and the­ Bahamas. Rafique clarified that instead of e­stablishing a physical office in India, the company aims to collaborate with local tale­nt to navigate and contribute to the local We­b3 ecosystem.

This holistic approach, coupled with recent partnerships and initiatives, positions the exchange as a formidable player in the ever-evolving crypto and blockchain space.

Related Reading | Shiba Inu Surges To 6th Place Among American Crypto Favorites

Binance Revolutionizes Crypto Trading with FDUSD Pairs

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Binance, the world’s leading cryptocurrency exchange, is making strategic moves to enhance its trading offerings and diversify its stablecoin portfolio. On September 7, 08:00 UTC, Binance will introduce new trading pairs, notably XRP and Dogecoin matched with First Digital USD (FDUSD). This announcement follows the addition of other trading pairs, such as TOMO/TRY and UNFI/TRY, signaling Binance’s commitment to expanding its crypto trading ecosystem.

FDUSD, introduced in June 2023, is a reserve-backed stablecoin created by FD121 Limited, a subsidiary of Hong Kong-based financial firm First Digital Limited. It operates on both the Ethereum and BNB Chain networks, offering users a versatile and reliable digital asset. What sets FDUSD apart is its stability, ensured by the equivalent amount of cash or cash equivalents held in reserves by its custodian, First Digital Trust Limited.

One of the key strengths of FDUSD is its diverse range of use cases. Beyond providing a stable store of value, it serves as a catalyst for efficient cross-border remittances, a reliable payment solution, and an essential utility in decentralized finance (DeFi) applications. This multifaceted utility makes FDUSD a valuable addition to the exchange’s trading platform.

Furthermore, the exchange has taken a significant step by waiving trading fees for Bitcoin and Ether pairs with FDUSD. This strategic move aims to bolster the trading volume of FDUSD and further expand Binance’s stablecoin portfolio. The decision to waive fees for FDUSD comes after regulatory issues impacted the Binance USD (BUSD) earlier in the year, necessitating a pivot towards a more diversified stablecoin offering.

XRP and Dogecoin Boosting Binance’s Appeal

The addition of XRP and Dogecoin trading pairs with FDUSD is expected to draw more traders to Binance and facilitate a broader adoption of FDUSD in the crypto market. XRP and Dogecoin are among the most popular cryptocurrencies, with active communities and growing demand. Pairing them with FDUSD opens up new opportunities for traders, enabling them to access stable liquidity while trading their favorite assets.

In conclusion, Binance’s move to introduce new trading pairs with FDUSD and waive trading fees for Bitcoin and Ether paired with FDUSD demonstrates a strategic commitment to diversify its stablecoin offerings and provide more choices to its users.

This announcement not only strengthens Binance’s position as the world’s largest cryptocurrency exchange but also underscores its dedication to innovation and adaptability in the ever-evolving crypto landscape. As the crypto industry continues to grow and evolve, Binance’s strategic moves are positioning it for long-term success and relevance in the global marketplace.

Bitcoin’s Symphony Of Cycles: Navigating The Ghost Town Of The Long Bear

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In a recent tweet, Michaël van de Poppe, the CEO and Founder of MN Trading, offered his perspective on the current state of the cryptocurrency market, particularly Bitcoin. He acknowledged the prevailing sentiment that the ongoing bear market might seem like an endless stretch of desolation, akin to a ghost town in the crypto landscape. The fears of an extinguished bull cycle have gripped many investors, prompting van de Poppe to delve into the reasons behind these concerns.

Van de Poppe attributed these apprehensions to a fundamental aspect of human decision-making: history. Investors often base their actions on historical patterns. For those who have witnessed the ebb and flow of Bitcoin’s price over extended periods, the distinct cyclical nature of the cryptocurrency becomes evident. The cycles typically include phases of expansion, significant corrections, accumulation, and renewed expansion.

Bitcoin’s 50% Drop & 490-Day Bear Market

The CEO noted that while each cycle is unique in its duration and dynamics, the current bear market bears resemblance to the one witnessed in 2015. This period is characterized by sideways price movement, eroding faith in the cryptocurrency despite solid underlying growth fundamentals. The price of Bitcoin has plummeted more than 50% from its peak in November ’21, and the bear market has endured for a span of 490 days.

Acknowledging the pain and frustration of investors experiencing their first substantial bear market, van de Poppe shared his own experiences from the 2018/2019 bear market and the turbulence brought on by events like the COVID-related crash. He emphasized the notion that such challenging times offer invaluable lessons and insights, which eventually contribute to an investor’s growth and ability to seize opportunities in subsequent cycles.

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Furthermore, he highlighted several recent developments that showcase the growing adoption of Bitcoin by governments and institutions worldwide. These include Blackrock’s investment in mining companies, the emergence of multiple Bitcoin and Ethereum ETF applications, the launch of a European ETF, and the increasing acceptance of crypto in regions like Hong Kong and Oman. Despite these positive indicators, the market’s reaction has been sluggish due to the prevailing “bear market modus” that has persisted for the past two years.

In closing, van de Poppe offered a glimmer of hope for investors feeling trapped in the current slump. He predicted that an era of expansion and acceleration could follow after the “time capitulation” phase passes in a few months. He encouraged investors to remain patient, introspective and prepared to leverage their experiences for future gains in the dynamic world of cryptocurrency.

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Bitcoin’s Balance On Exchanges Hit 6-Year Low

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The current state of Bitcoin’s presence on exchanges is making waves. According to Santiment, the supply of BTC residing on exchanges has plummeted to a depth not witnessed in six years, with a mere 5.8% finding haven on trading platforms—a figure that mirrors the scene of December 2017.

This data has spurred discussions around bullish narratives, as the diminishing exchange balance potentially signifies a growing preference among traders and investors for self-custody. In a realm fraught with regulatory uncertainties and exchange vulnerabilities, this trend hints at a maturing market where individuals take the reins of safeguarding their Bitcoin assets.

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Bitcoin's Balance On Exchanges Hit 6-Year Low 7

As Bitcoin dipped to $26,000, relinquishing gains amassed the previous day, the crypto sphere anticipated signals from U.S. Federal Reserve Chair Jerome Powell’s address at Jackson Hole.

At the time of writing this post, Bitcoin had inched down by 1.40% within the past 24 hours, resting at $26,081.21 by 07:20 a.m. in Hong Kong, and marking a 3% descent over the week, as per CoinMarketCap records.

The prevailing trend leans heavily towards self-custody, potentially highlighting the market’s maturity as investors fortify their asset security. Yet it could also be indicative of impending volatility. But the buck doesn’t stop here.

Bitcoin Whales Steady Accumulation

Santiment also pointed out that Bitcoin whales were moving an astonishing 57.4K bitcoins to their wallets. This left us to ponder the motivation behind these whale maneuvers. According to market analyst Samer Hasn from Australia’s XS.com, the prevailing cautious stance in the crypto arena can be attributed to increasing regulatory scrutiny in the U.S.

With the SEC intensifying its crackdown on crypto powerhouses such as Ripple, Coinbase, and Binance, the ecosystem is fraught with regulatory ripples. Most recently, Bitstamp announced the cessation of Ethereum staking services by September 25 under mounting regulatory pressures.

With regard to substantial whale migrations, experts cast a cautious eye on imminent market undulations. As Greta Yuan, a researcher at Hong Kong’s VDX digital asset exchange, underscores, investors must acknowledge that “the bear market endures.” Her perspective hints that Bitcoin might well meander within the range of US$25,000 to US$27,000 for a protracted interval.

HashKey Exchange Gears Up To Launch Retail Crypto Trading On August 28th

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HashKey Exchange, a prominent cryptocurrency exchange based in Asia, is poised to enter the retail trading arena beginning August 28th, according to an announcement from the company’s Chief Operating Officer, Livio Weng. In a recent interview, Weng disclosed that the exchange’s retail trading services would initially encompass the two largest crypto: Bitcoin and Ethereum.

This strategic move follows HashKey’s recent accomplishment of becoming the inaugural cryptocurrency platform in Hong Kong to secure a license under the city’s novel regulatory framework. The licensing regime, enacted earlier this month, allows crypto trading platforms to extend their services to retail investors.

Weng highlighted that HashKey and Hong Kong’s financial regulators are carefully approaching retail trading services, prioritizing caution. He explained that the exchange will concentrate on lower-risk options due to the higher risks of trading alternative cryptocurrencies, particularly during bear markets.

To expand its retail trading avenues, HashKey is in talks with around five local brokerage firms in Hong Kong. Weng shared that the goal is to partner with these platforms to facilitate direct crypto trading, potentially bringing in numerous Hong Kong stock market users.

For user convenience, HashKey has devised a system where fiat currency deposits can be made by linking bank cards. Weng confirmed that this method will support both Hong Kong and U.S. dollars. 

However, he noted that users with Chinese mainland IP addresses are barred from registering on the platform, in line with the Chinese government’s prohibition of crypto transactions.

HashKey’s Ambitious Retail Goals

HashKey’s ambitions for its retail services are substantial. Weng outlined:

We hope to grow our registered user base to between 500,000 to 1 million by the end of this year. We’re also anticipating a more bullish market next year. If that’s the case, we would target to serve 10 million users by 2025.

Meanwhile, Xiao Feng, Chairman of HashKey Group, expressed optimism about the impending regulatory guidance on Security Token Offerings (STOs) from the Hong Kong Securities Regulatory Commission. 

He believes this move would further align Hong Kong’s regulatory framework with the burgeoning digital finance landscape, allowing for more robust financial innovation and integration between virtual assets and the real economy.

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