ChainCatcher news, according to the Wen Wei Po report, the Hong Kong police announced data on online investment fraud cases for the first 9 months of 2024. A total of 3,468 cases were reported, involving approximately HKD 2.2 billion, with 35% related to virtual assets. Although this is a decrease compared to the same period last year, the number of cases in October surged by 24% month-on-month, indicating a rebound trend.The largest single loss came from a virtual asset scam, where a female executive of a cryptocurrency company was defrauded of HKD 78.47 million. The police remind that nearly 60% of victims first contacted the scammers through instant messaging software, and 40% of the victims are aged between 40 and 59.From January to October 2023, investment fraud cases reached 5,017, involving approximately HKD 4.93 billion. In September this year, there were 312 cases with an amount of HKD 187 million; in October, it increased to 380 cases, involving HKD 248 million, showing an upward trend. The police urge investors to remain vigilant and beware of virtual asset investment traps.

ChainCatcher news, according to cryptonews, Hong Kong's cryptocurrency brokerage Victory Securities has announced plans to launch structured products for professional investors by the end of this year. Structured crypto products are designed to provide customized returns by leveraging the performance of a single cryptocurrency or a combination of multiple cryptocurrencies, helping investors pursue higher potential returns and achieve various objectives.The brokerage announced that it has obtained regulatory approval from the Hong Kong Securities and Futures Commission. The company stated that this makes it the first licensed brokerage in Hong Kong to market and distribute cash-settled virtual asset structured products to professional investors.

ChainCatcher news, according to Bloomberg, the Hong Kong government has released its first policy guidelines for the application of artificial intelligence in the financial sector and proposed an extension of the tax incentive program for virtual assets. The Secretary for Financial Services and the Treasury, Christopher Hui, stated that the relevant tax incentive bill will be submitted to the Legislative Council by the end of the year.These policy guidelines provide a unified framework for Hong Kong's regulatory agencies to formulate AI policies, aiming to regulate the development of AI applications in the financial sector. Although Hong Kong is actively promoting AI policy development, mainstream AI tools such as ChatGPT and Gemini are still not available for use in Hong Kong.

ChainCatcher news, according to Hong Kong media Ming Pao, Deepa Raja Carbon, Managing Director and Vice Chairman of the Dubai Virtual Assets Regulatory Authority (VARA), stated that after the turmoil in the virtual asset industry, people are more eager for clear regulations, which is the reason why international exchanges are developing their businesses in Dubai.Hong Kong and Dubai share very similar DNA. The regulation of virtual assets does not need to be consistent across regions, but coordination between regulatory agencies is very important, as many scams involving virtual assets do not occur in a single region. Dubai and Hong Kong's regulatory departments also have close ties and highly appreciate Hong Kong's approach to regulatory issues. As long as the transactions or businesses are suitable for development in the region, they are willing to consider opportunities for mutual cooperation.

ChainCatcher news, according to Jin10, the South Korean Ministry of Finance has stated that South Korea plans to regulate cross-border transactions of cryptocurrencies and other virtual assets starting in the second half of 2025, introducing registration and reporting requirements.The Ministry of Finance stated that under the new regulations, businesses handling cross-border transactions of virtual assets will be required to register with the authorities in advance and report transaction details to the Bank of Korea on a monthly basis. According to data from South Korea Customs, since 2020, South Korea has seen foreign exchange-related crimes worth 110 trillion won (7.97 billion USD), of which 81.3% involved virtual assets.

ChainCatcher news, according to a report by the Financial界, the Secretary for Financial Services and the Treasury, Xu Zhengyu, stated in the blog "财库论" that the government plans to optimize the current tax incentives provided to the asset and wealth management industry in multiple ways to further expand the market.In terms of expanding the eligible asset categories, Xu Zhengyu mentioned that the authorities suggest broadening the eligible asset categories in line with the overall financial development strategy of the Treasury, adding carbon emission derivatives/emission allowances, insurance-linked securities, loans and private debt investments, and virtual assets, allowing for tax exemptions on the trading of such assets. On the other hand, it is proposed that anyone operating financial institution business, insurance business, or lending business in Hong Kong, who holds a beneficial interest of 10% or more in a fund, will be deemed to derive taxable profits from income earned from loans or private debt investments related to that fund. If the fund is associated with that person, any percentage of beneficial interest will apply. The next step for the Treasury is to issue a consultation document on the overall proposal, collect and analyze opinions, and then propose relevant legal amendments to implement various optimizations, adding momentum to industry development.

ChainCatcher news, according to CoinDesk, the Dubai Virtual Assets Regulatory Authority (VARA) is one of the regulatory bodies for the cryptocurrency industry in the United Arab Emirates (UAE). The authority stated that it has fined seven "entities" for operating without the required licenses and violating marketing regulations.VARA did not disclose the names of these entities and stated that it is investigating them in collaboration with local authorities. The fines for each entity range from 50,000 dirhams (13,600 USD) to 100,000 dirhams. The statement said: "All relevant entities have been instructed to immediately cease all activities and stop any marketing or advertising of virtual asset services." VARA indicated that this move also serves as a public warning to everyone to avoid dealing with any unlicensed companies.

ChainCatcher news, according to Hong Kong 01 report, the CEO of the Hong Kong Securities and Futures Commission (SFC), Ashley Alder, stated in an interview that the development of a regulatory framework for virtual asset trading platforms is being advanced, supporting the tokenization of traditional products, and utilizing blockchain and Web3 foundational technologies, with the entire framework expected to be completed at least by next year.Regarding virtual asset trading platforms (VATP), Alder mentioned that the SFC has issued the third license to the Hong Kong Virtual Asset Exchange (HKVAX), with the other two licensed platforms being OSL Exchange and HashKey Exchange. Additionally, there are 11 platforms that are considered applicants for licensing; Alder indicated that the first phase of on-site inspections has been conducted, and requirements have been proposed for these applicants to rectify issues, with the goal of making new progress by the end of the year, including the issuance of licenses in batches.In terms of over-the-counter (OTC) services, Alder stated that the SFC has developed a new licensing regime for cryptocurrency OTC services and their custody services, and is seeking industry opinions.

ChainCatcher news, the Secretary for Financial Services and the Treasury, Christopher Hui, chaired the fourth meeting of the Financial Technology Project Execution Coordination Group. He stated that the Hong Kong government and financial regulatory bodies have been strongly supporting the development of financial technology, including improving financial infrastructure, building a more vibrant fintech ecosystem, nurturing fintech talent, and facilitating discussions among participants on various aspects of fintech, including how to further integrate virtual assets into mainstream financial markets and the application of artificial intelligence in Hong Kong's financial markets. Cyberport and the Financial Management Bureau reported on the green and sustainable fintech concept validation testing funding scheme, as well as the latest developments in the wholesale central bank digital currency project Ensemble.

ChainCatcher news, according to Bitcoin.com, after more than two years of discussion, Uruguay has enacted a cryptocurrency law. The law was proposed two years ago, recognizing cryptocurrency as a virtual asset in the country and establishing the Central Bank of Uruguay as the regulator and supervisor for companies seeking to provide cryptocurrency services. This law positions Uruguay at the forefront of Latin American countries that have incorporated cryptocurrency into their regulatory framework.The Central Bank of Uruguay will regulate Virtual Asset Service Providers (VASP) and must issue operating licenses for such organizations. The issuance of these licenses will consider "legitimacy, opportunity, and convenience." Similarly, the Financial Services Regulatory Authority (SSF) must identify exchanges, wallets, and even miners that fall under the VASP category.The law amends existing anti-money laundering and counter-terrorism financing regulations, bringing virtual assets under the control and supervision of existing enforcement agencies. Additionally, the law reforms securities regulations by introducing the concept of decentralized securities, which are "issued, stored, transferred, and traded electronically through distributed ledger technology."

ChainCatcher news, the Hong Kong Stock Exchange disclosed that the Hong Kong-listed company HKE Holdings Limited released its annual performance announcement for the year ending June 30, 2024, which revealed that HKE is establishing a comprehensive fintech service platform for multiple categories of assets (including but not limited to virtual assets, listed securities, listed bonds, and alternative assets). This platform is built on trust, user-centricity, and compliance, ensuring that global users can explore and monetize the potential within different asset classes, covering traditional financial markets, such as virtual assets and Web3 assets.HKE Holdings Limited stated that the Hong Kong government strongly supports the development of Hong Kong as an international financial center for virtual assets and is confident that the fintech platform business will continue to grow and provide value-added services to various participants within the ecosystem, such as virtual asset spot trading exchange-traded fund issuers, token issuers, and investors with investment needs who require advanced virtual asset custody solutions for virtual asset trading.

ChainCatcher news, the number of ultra-high-net-worth accounts in South Korea that have invested over 1 billion won (approximately 749,000 USD) has reached more than 3,400, with an average investment amount of 9.45 billion won (7.08 million USD) per account.According to data obtained by South Korean Democratic Party lawmaker Ahn Doo-Je from the Financial Supervisory Service, among the 7.7 million virtual asset accounts opened by the two major virtual asset exchanges, Upbit and Bithumb, accounts with assets exceeding 100 million won account for only 1%, but their investment scale represents 70% of the total amount.Among these high-value accounts that have invested over 1 billion won, the average investment amount reaches 9.45 billion won. These high-value investors account for only 0.04% of all accounts but hold 47% of the total investment amount in the virtual asset market, indicating that the cryptocurrency market is more concentrated than the stock market.Among these high-value accounts with over 1 billion won, investors in their 40s make up the largest proportion, while those in their 50s have the largest average holding size, averaging 14.8 billion won.

ChainCatcher message, regarding the public consultation for this year's "Policy Address" by the Chief Executive of Hong Kong, the Executive Director of the Hong Kong Securities and Futures Professionals Association, Tsang Yu-cheng, proposed several suggestions concerning the securities industry to the Chief Executive. Among them, he pointed out that with the rapid development of the virtual asset market, establishing a unified regulatory body to enhance the efficiency of virtual asset regulation is particularly important. A unified regulatory body can provide consistent regulatory standards and procedures, ensuring market stability and security, enhancing investor confidence, and promoting the healthy development of the virtual asset market. At the same time, strengthening training in the field of virtual assets is also an important measure for rationally managing virtual asset risks. By providing professional training and guidance, practitioners can gain a more comprehensive understanding of the operational mechanisms of the virtual asset market, formulate effective risk management measures, and ensure the stability of the financial system.

ChainCatcher News: The U.S. State Department stated that during the attendance of Special Envoy for North Korea, Seth Bailey, at the "Preventing North Korean Virtual Asset Money Laundering U.S.-Korea Joint Civilian Seminar," the theft of virtual currency is a relatively new source of income for North Korea. It is estimated that over 40% of the funding for North Korea's weapons of mass destruction (WMD) and ballistic missile development programs is raised through virtual currency channels.Bailey cited a report from blockchain research firm TRM Labs, which indicated that last year, about one-third of global virtual asset thefts were carried out by North Korean hackers, and this year's theft amount is expected to increase further.Bailey emphasized, "We are working closely with like-minded countries such as South Korea and Japan to develop government policies and procedures that will have a direct impact on North Korean behavior."

ChainCatcher message, the Hong Kong Securities and Futures Commission has issued a circular to licensed corporations, virtual asset service providers, and associated entities regarding the fight against money laundering/terrorist financing, which points out that the United Nations Security Council (UNSC) committee responsible for managing the sanctions regime against the Islamic State (ISIS) and Al-Qaeda removed an individual from its sanctions list on August 23, 2024 (New York time).Licensed corporations, licensed virtual asset service providers, and associated entities should update their screening databases regarding the aforementioned changes made by the UNSC sanctions committee to conduct sanctions screening on customers and payments.

ChainCatcher news, Bithumb won the second trial of the corporate tax lawsuit for 130 million KRW (approximately 97,000 USD). On August 20, the Seoul High Court overturned the first-instance judgment, ruling in favor of Bithumb. This case originated in 2019 when tax authorities imposed a corporate tax of 180 million KRW (approximately 134,000 USD) on Bithumb due to its change in the assessment method for virtual assets, which was later reduced to about 130 million KRW.The second-instance court found that there were no clear accounting regulations at the time, and Bithumb's choice of the "weighted average method" for assessing virtual assets was legitimate. Furthermore, the virtual assets held by Bithumb should not be considered inventory assets, and thus there was no need to report the change in assessment method.

ChainCatcher message, the Hong Kong Securities and Futures Commission (SFC) has issued a warning to the public on its official website to be cautious of a suspicious link. Investors can access the "ICE Global Professional Station" mobile application through this link. ICE Global Professional Station claims to be a digital asset trading platform and is suspected of impersonating a multinational financial services institution, Intercontinental Exchange, Inc., by using a similar name and branding.ICE Global Professional Station is suspected of engaging in fraudulent activities related to virtual assets. An investor reported difficulties in withdrawing funds after depositing money to invest in cryptocurrency products. The Hong Kong SFC stated that on August 21, 2024, the link to access the ICE Global Professional Station mobile application was added to the warning list of suspicious virtual asset trading platforms.