Hong Kong crypto stocks on the rise, OKX to invest in L1s: Asia Express

East Asia's weekly news roundup reviews the industry's most important developments.

Hong Kong crypto accumulates 40% amid Bitcoin bull run

Hong Kong crypto stocks rose as part of a broader market recovery. Two prominent entities, licensed crypto exchange OSL and crypto guardian Sinohope Technology, posted weekly gains of 46% and 36%, respectively.

The performance is all the more interesting as the Hong Kong and Chinese stock markets are in an ongoing bear market. The city-state Hang Seng index fell 24% last year and is currently trading at 2009-lows.OSL and Sinohope have market values ​​of $650 million and $140 million respectively.

The two organizations are currently focused on expanding partnerships with entities in traditional finance. In the year

Sinohope's share price recovery comes after a decline in revenue and profits last year, partly due to $18.1 million worth of digital assets stuck on failed crypto exchange FTX, unavailable for capital deployment. The firm remains a creditor of FTX's ongoing bankruptcy proceedings.

Huawei signed a Web 3 memorandum with the Hong Kong government

Chinese telecom company Huawei has signed a cooperation agreement with the Hong Kong Cyberport Initiative.

Cyberport and Huawei Cloud will work together to provide Web3 and AI infrastructure for prominent Hong Kong tech startups for the next three years.

Ximing Chen, Chairman of Cyberport, said, “We are excited to jointly explore the various possibilities of industrial cloud innovation and related technologies, AI and Web3 field development and inject new initiatives into Hong Kong's innovation and technology ecosystem.”

Jilin Shi, president of global marketing and sales services at Huawei Cloud, explained that the company will “support the development of startups and develop regional unicorn companies” with a special focus on Web 3 and AI. “Over the past 18 months, Huawei Cloud Cloud has helped 30+ start-up companies obtain Series A financing in excess of $100 million,” said Shi.

Since its launch in 2022, Cyberport has attracted more than 2,000 Web3 and AI firms to establish subsidiaries or relocate to Hong Kong.

OKX Ventures has invested $50 million in startups in 2023

Cryptocurrency exchange OKX, also based in Hong Kong, revealed that its venture capital subsidiary invested more than $50 million in blockchain startups last year.

He has contributed money to Polyhedra, Celestia, Kakarot, Megaroll, Altlayer, Bitsmiley, Beuter, Babylon, Cetus, Etena, Flashbots, HUG, Moonbox, Mokaverse, Mat1x, Orbiter, Republic, Raj Trade, Sei, Taiko, TRLab and ZKM.

“[Infrastructure and DeFi] It provides a safe, efficient and reliable operating environment for crypto assets and blockchain technology, and its strength directly affects the overall growth and sustainability of the entire industry.

For next year, OKX Ventures said, “A favorable macroeconomic climate and the ongoing cycle of innovation in the crypto industry will create favorable conditions for a bull market.” He said he will continue to expand his portfolio with a focus on Tier 1 ecosystems this year, citing the expected price drop in the US, the Ethereum Denkun upgrade, the upcoming Bitcoin halving and the expansion of Bitcoin ETFs as incentives.

Apbit reigns supreme in South Korea

South Korean crypto exchange Upbit looks set to retain its monopoly in the East Asian nation for the time being.

In the year According to a February 15 report, Bithub, Korea's second largest crypto exchange by voice, has failed to confirm its partnership with a bank to offer real-name verified accounts to its customers. Under South Korean law, crypto users must create a bank account with their crypto exchange to deposit and withdraw from crypto to fiat.

Currently, Appbit controls 70% to 90% of all exchanges in South Korea. Meanwhile, Bithumb has offered a commission-free strategy to lure users, although experts say the feature is unsustainable. The exchange is currently pursuing an initial public offering on KOSDAQ to raise additional capital for expansion efforts.

South Korean authorities to crack down on unauthorized crypto exchanges

Crypto exchanges that do not comply with regulations or do not fulfill their obligations are prohibited from operating in South Korea. According to a report by local news agency Yonhap on February 12, the country's Financial Intelligence Unit (FIU) will conduct regular inspections of the country's four registered crypto exchanges and gradually expand into the country's illegal money exchanges. .

Exchanges must overcome money laundering threats, market manipulation capabilities, and comply with regulations to protect users' assets and renew their licenses.

The FIU also plans to create a Financial Action Task Force (FATF) which, among other functions, will have the power to stop suspected illegal transactions in the crypto exchange incident at the pre-investigation stage. From 2022 to 2023, South Korean crypto exchanges reported a 49 percent increase in the number of illegal transactions.

Philippines to create CBDC

The Philippines is interested in creating a central bank digital currency (CBCC) but wants nothing to do with blockchain.

Speaking to reporters on February 12, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said the central bank wants to create wholesale CBDC using blockchain or ledger rather than retail CBDC with the help of the country's financial institutions. Technology. “Other central banks tried blockchain but it didn't go well,” Remolona explained.

The central banker added that he does not support retail CBCC – which “competes with cryptocurrencies” – because it reduces control from financial institutions and leads to disputes, which in turn leads to a decrease in income for banks that facilitate such transactions. The Philippine Peso CBDC trial is underway and is expected to launch within the next two years.

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Zhiyuan Sun

Zhyuan Sun is a reporter at Cointelegraph, focusing on technology-related news. He has several years of experience writing for major financial media outlets such as The Motley Fool, Nasdaq.com and Seeking Alpha.