For treason in Taiwan, the resurgence of Eastern crypto exchanges: Asia Express

Taiwan military officers exposed to cryptocurrency espionage

Two Taiwanese military officers have been charged with selling sensitive government information to key Chinese contacts in exchange for cryptocurrency payments, the Kaitou District Prosecutor's Office said in a statement on September 3.

According to prosecutors, the two officers, Lieutenant Han and Captain Lin, received 8,151 Tether (USDT) in exchange for at least seven classified documents.

Between December 2022 and February 2024, Han communicated online with individuals from China and transmitted photographic documents via Telegram.

Lin, who served as a company commander in the military police, was accused of giving Han his login credentials, which allowed him unauthorized access to classified military networks.

This allowed Han to download sensitive material, including a manual detailing Taiwan's cyber defense military tactics.

Both Han and Lin face serious charges, including violating Taiwan's anti-corruption law and national security law.

According to The Control Yuan, which monitors the Taiwanese government, the number of espionage cases has increased significantly over the past decade. In the year There were 40 reported espionage cases between 2011 and 2023, compared to 13 cases between 2001 and 2010.

The growing issue of crypto espionage between China and Taiwan signals a shift in Beijing's espionage strategy, said Russell Hsiao, executive director of the US-based think tank Global Taiwan Institute.

Recent cases have targeted young military officers motivated by financial gain, while past cases have involved older retirees driven by ideology.

In another case last month, Taiwan's Supreme Court sentenced eight individuals to prison on August 22, 2008, for leaking military secrets to China in exchange for an undisclosed amount of crypto.

The commander-in-chief, an officer who recruited active and retired military personnel, received the longest sentence of 13 years, while others were sentenced to less than 18 months.

In 2024, tensions between China and Taiwan escalated, with China continuing to assert its claim to the self-governing island.

In March, China's Ministry of National Defense warned that supporters of Taiwan independence would be “burnt for playing with fire.”

Crypto exchanges return to major Asian economies with increased licensing

Following licensing developments on the continent, more cryptocurrency exchanges are expected to continue operating in Asia.

OKX announced on 2 September that OKX Singapore has been granted a Major Payments Institution (MPI) license by the Monetary Authority of Singapore (MAS). Shopping.

There are currently 28 digital payment token businesses that hold a Central Bank MPI license.

OKEX Singapore has named former MAS official Gracie Lin as its new CEO.

The increase in registered crypto service providers in Singapore is in line with the city's goal of becoming a regional digital asset hub and contrasts with the few licenses issued by rival Hong Kong, which shares similar ambitions.

So far, the Hong Kong Securities and Futures Commission (SFC) has licensed two platforms, OSL and Hashkey, two virtual asset service providers (VASP).

The securities regulator has rejected or seen 17 applicants with 13 applicants still pending.

Hong Kong's digital asset exchange has passed the May 31 application deadline, adding to the city's waiting list.

Although Hong Kong lags behind Singapore in the number of licensed crypto providers, it offers crypto-related financial products such as exchange-traded funds (ETFs) in the traditional market — a step Singapore has said it is not yet ready to take.

Meanwhile, India is looking to expand its list of crypto exchanges.

According to unnamed sources quoted by Media Business Standard, the country's Financial Intelligence Unit (FIU) has received four more requests from offshore exchanges to operate in the country. At least two of them are expected to be operational by March 2025.

This is after India's FIU cleared Binance and KuCoin to return to the country after being deported for unlicensed operations.

In July, Cointelegraph reported that crypto exchange Bitget is working with regulators to obtain VASP registration.

When the authorities investigated the illegal origin, millions of people denied it

Five individuals involved in a cryptocurrency scam in South Korea have been jailed for defrauding a private investor out of $7.5 million (10 billion Korean won) by falsely promising to exchange stablecoins for below-market currencies.

However, what initially appeared to be a straightforward robbery took an unusual turn.

The case received national attention because the victim withheld the proceeds due to suspicions that the proceeds may have come from illegal activities.

The scam began in February when the accused posed as legitimate cryptocurrency dealers to lure victims to the streets of Incheon, a port city bordering the capital Seoul.

After the victim handed over the money, the group threw the victim out of the vehicle and fled in the van.

After the police arrested the fraudsters and found the money, the victim filed an official request asking the court to return the money. However, the court rejected the request citing inconsistencies in the victim's account as to how the money was obtained and used.

A police investigation said the victim involved 10 billion Korean won in personal funds and loans.

Prosecutors have reportedly presented evidence suggesting the money could be linked to illegal activities such as gambling or phishing, raising concerns about whether the victim has a legal right to recover the money.

Authorities have now opened an investigation to find out the source of the money.

John Yun

Yohan Yun is a multimedia journalist who has been reporting on blockchain since 2017. He has contributed to the crypto media outlet Forkast as an editor and covered Asian tech stories as an assistant reporter for Bloomberg BNA and Forbes. He spends his free time cooking and experimenting with new recipes.