Hashkey Exchange, one of Hong Kong’s first regulated crypto exchanges, has recently announced an insurance coverage for its clients’ assets stored in its hot and cold wallets. This move aims to provide enhanced protection and meet the Securities and Futures Commission requirements. The policy will cover 50% of Hashkey’s digital assets in cold wallets and 100% of digital assets in hot wallets, with claims ranging from $50 million to $400 million. Additionally, Hashkey has partnered with fintech OneDegree to develop innovative crypto security solutions for managing server downtime, data back-up, and load control.
Hashkey Exchange has plans to submit four major altcoins for listing approval to the Hong Kong Securities and Futures Commission. Since receiving its license in August, the exchange has gained over 120,000 customers and achieved a cumulative trading volume of over $10 billion. Meanwhile, BC Technology Group, the owner of OSL exchange, has secured a $91 million strategic investment from BGX crypto group. This investment reflects BGX’s belief in the immense potential of the digital asset market.
While Hong Kong crypto exchanges are gaining traction, the barrier to entry for users and token developers remains high. To list their coins or tokens on Hashkey Exchange, developers must pay a non-refundable application fee of $10,000, and expect a total cost of $50,000 to $300,000 for the listing process, if approved, in addition to due diligence or advisory fees.
Crypto media publication, The Block, has received a $60 million investment from Singaporean venture capital firm Foresight Ventures, acquiring 80% of its equity. Despite the investment, The Block will continue to operate as a separate company, leveraging the capital to build new products and expand its presence in Asia and the Middle East. Foresight Ventures sees this acquisition as a significant milestone, strengthening its position in the cryptocurrency sector.
In the latest development, a Chinese court has declared a crypto investment contract void based on the belief that cryptocurrencies contravene the spirit of the country’s crypto ban and are not protected by law in civil disputes. The court ruled that transactions between cryptocurrencies are classified as “illegal activity,” and any resulting losses should be borne by the parties involved. This ruling follows previous precedents set by Chinese civil courts earlier this year, although the government has clarified that certain criminal acts related to digital currencies are prosecutable under the penal code.
The Philippines’ Bureau of Treasury (BTr) has expressed its intention to raise $180 million from the domestic capital market by issuing tokenized bonds. These one-year fixed-rate government securities will be offered to institutional investors and will be maintained in the BTr’s distributed ledger technology (DLT) registry. This move aligns with the National Government’s Government Securities Digitalization Roadmap, aiming to provide a proof-of-concept for the broader adoption of DLT in the government bond market.
The cryptocurrency industry in East Asia continues to witness significant developments. From the implementation of insurance coverage for client assets to expanding altcoin listings and strategic investments, the region is experiencing growth and attracting attention. However, challenges such as high barriers to entry for users and token developers, legal uncertainties, and regulatory restrictions remain in place. As the industry evolves, it will be crucial to navigate these challenges while exploring opportunities for innovation and expansion.
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