As we wrap up 2024, Asia Express examines the critical developments and emerging trends that are shaping Bitcoin and the broader cryptocurrency landscape across the region.
MICROSTRATEGY’S INFLUENCE SPREADS THROUGH ASIA
MicroStrategy has firmly established itself as a powerhouse in the Bitcoin investment arena, amassing a staggering 439,000 BTC—about 2% of the entire Bitcoin supply, according to BitcoinTreasuries.NET.
This bold investment approach has inspired numerous companies across Asia to follow in the footsteps of MicroStrategy’s CEO, Michael Saylor.
A noteworthy illustration of this trend is Meitu, a Chinese selfie app developer, which made headlines in the spring of 2021 after purchasing 31,000 ETH and 940 BTC.
By November that year, Meitu sold its digital assets for a substantial profit, showcasing the profitability of this strategy.
As of late November, the title of the “MicroStrategy of Asia” appears to belong to Metaplanet, a Japanese firm that recently boosted its Bitcoin holdings to 1,142 BTC by adding 123 coins.
The CEO of Metaplanet has made headlines for positioning the company as one of Asia’s largest corporate Bitcoin stakeholders.
However, when it comes to sheer volume, Hong Kong’s Boyaa Interactive takes the lead.
In a remarkable move, this gaming firm converted $49 million worth of Ether—about 14,200 ETH—into 515 BTC in late November, increasing its total Bitcoin holdings to 3,183 BTC.
This development potentially positions Boyaa as a significant competitor for the title of the region’s MicroStrategy.
In addition, other firms are making strides in the cryptocurrency space.
SOS, a Nasdaq-listed data service provider, is set to acquire $50 million in Bitcoin.
Meanwhile, Jetking Infotrain, a publicly traded company in India, has kickstarted a Bitcoin reserve initiative, beginning with a modest purchase of 12 BTC.
Even government entities are getting in on the Bitcoin action.
Arkham Intelligence revealed that Bhutan, through its investment arm Druk Holdings, holds an impressive stash of Bitcoin, estimating its holdings to be double that of El Salvador.
Although Bhutan has sold some of its assets recently, it still retains 11,688 BTC as of December 19.
Notably, the country has been engaged in Bitcoin mining since 2019.
THE CHALLENGES FOR BITCOIN ETFs IN ASIA
The year began with considerable excitement throughout the cryptocurrency world, particularly after the US Securities and Exchange Commission approved 11 spot Bitcoin ETFs in January, stirring global interest.
As the largest market and a significant influencer in regulation, the US has set a benchmark, paving the way for others, despite not being the first to launch such ETFs.
Hong Kong took the lead in Asia with the launch of its own spot Bitcoin and Ether ETFs in late April.
Unfortunately, these products have not attracted the expected level of interest.
Initial optimism suggested that these ETFs might draw in investors from mainland China through the Stock Connect program, even though crypto trading remains banned there.
However, strict regulations continue to bar non-Hong Kong residents from investing in these ETFs.
In their debut week, Hong Kong’s Bitcoin ETFs registered $262 million, a figure that pales in comparison to US ETFs that observed billions in inflows during the same period.
Currently, the total net assets of these ETFs in Hong Kong stand at $437 million.
In Singapore, the CEO of the Singapore Exchange expressed that the local market is not yet ready for analogous investment products.
Meanwhile, South Korea’s crypto market remains heavily retail-driven, hindered by regulations that require the use of real-name accounts at licensed financial institutions, effectively blocking corporate participation.
Discussions are underway to potentially modify these regulations and allow corporations into the crypto domain.
CONFRONTING PIG BUTCHERING SCAMS IN ASIA
Pig butchering scams, notorious for their intricate schemes that entrap victims before defrauding them, have evolved and become more sophisticated.
These scams often employ AI-driven face-swapping technology, making them even more difficult to detect.
Academic expert John Griffin estimates that these fraudulent activities have resulted in losses exceeding $75 billion globally.
In 2024, law enforcement has intensified crackdowns on extensive scam operations in Southeast Asia, with Cambodia emerging as a significant hub for these activities.
Notably, Elliptic identified Huione Guarantee as a major facilitator of money laundering linked to such scams, with Chainalysis revealing that this platform has processed over $49 billion in crypto transactions since 2021.
In a striking development in September, the US government sanctioned Cambodian Senator Ly Yong Phat due to alleged connections with human trafficking and forced labor tied to cryptocurrency fraud.
The Philippines has also witnessed its share of controversies, including a scandal involving former Mayor Alice Guo, who was linked to an extensive international scam syndicate.
A property associated with her was raided, leading to the rescue of individuals victimized by cryptocurrency scams; she is now facing a Senate probe regarding her ties to illegal activities.
According to Chainalysis’ 2024 Global Crypto Adoption Index, Asia is home to eight of the top 20 countries in terms of cryptocurrency adoption, with India leading the pack.
While Indian investors demonstrate significant enthusiasm for digital currencies, the government has enforced a stringent regulatory environment that imposes one of the highest tax burdens on crypto transactions worldwide, stifling trading activity on local exchanges.
As the year ended in 2023, the Indian government took action against nine offshore exchanges, including Binance, prompting their exit from the market.
Amid discussions of a potential crypto ban, the Central Bank of India has also intensified discussions surrounding a Central Bank Digital Currency (CBDC).
Indonesia, on the other hand, is making a strong showing, ranking third in the adoption index and accumulating $157.1 billion in cryptocurrency between July 2023 and June 2024.
Both Singapore and Hong Kong are working hard to establish themselves as regional cryptocurrency hubs.
Singapore has been recognized for its favorable regulatory environment, granting licenses to major exchanges such as Gemini, OKX, and Upbit throughout 2024.
In contrast, while Hong Kong has been slower in licensing approvals, it anticipates granting 11 by the year’s end.
Notably, affluent investors in Asia are pivoting increasingly toward cryptocurrencies, with surveys indicating that 94% of high-net-worth individuals are either already invested in or planning to invest in Bitcoin and other digital assets.
In 2024, North Korea’s Lazarus hacking group has ramped up its operations, targeting major cryptocurrency firms in attempts to fund the country’s weapons programs.
Lazarus has gained notoriety for several significant breaches this year, including a staggering $305 million theft from Japan’s DMM Bitcoin and a $235 million hack at India’s WazirX.
Additional breaches include a $20.5 million theft from Indodax in Indonesia and a $45 million attack on Singapore’s BingX.
Beyond direct theft, North Korean cybercriminals are estimated to infiltrate cryptocurrency firms as employees, extracting between $250 million to $600 million in salaries annually, according to assessments by the UN.
Furthermore, the FBI has issued alerts concerning state-sponsored social engineering attempts, which include fake job offers and impersonations to gain access to corporate networks, employing advanced techniques such as natural language processing.
Source: Cointelegraph
