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An employee at South Korea’s Woori Bank has confessed to embezzling $7.3 million from company funds to invest in cryptocurrency. The unnamed employee, aged in their thirties, voluntarily visited the West Gimhae Police Station on June 10 to admit to the crime, according to reports from News1 and Hanguk Kyungjae.  The bank had detected the missing funds through internal monitoring, but the employee preemptively confessed, revealing that most of the crypto investments had failed, resulting in a loss of approximately $4.35 million. The police are conducting further investigations and collecting related data in conjunction with Woori Bank, with expectations to apply for an arrest warrant. Woori Bank has announced an intensive audit to understand how the employee was able to siphon off the funds from loan-related accounts. A spokesperson for the bank stated, “We will identify the problems via a thorough investigation and will prevent similar cases from recurring.” As one of South Korea’s...

The United States Securities and Exchange Commission (SEC) has added a spot Ether (ETH) exchange-traded fund (ETF) application from asset manager ProShares. This move comes roughly three weeks after the commission approved similar applications from eight other investment firms. In a filing dated June 10, the SEC announced that the New York Stock Exchange (NYSE) Arca had proposed a rule change to list and trade shares of the ProShares Ethereum ETF. The SEC is now soliciting public comments on this application for a 21-day period following its publication in the Federal Register. The commission will then have 45 days to approve, disapprove, or extend the decision timeline. This follows the SEC's May 23 approval of 19b-4 filings from eight asset management firms seeking to list and trade spot Ether ETFs on U.S. exchanges for the first time. These approvals are contingent on the SEC signing off on the S-1 registration statements for the spot Ether ETFs, a process expected to conclude by...

Investors in South Korea’s booming cryptocurrency market are facing a digital dust storm after a shocking revelation by financial regulators. A joint study by the Financial Supervisory Service (FSS) and the Korea Financial Intelligence Unit (FIU) found that a staggering 70% of shuttered crypto exchanges failed to return invested funds to their customers. This news comes as a gut punch to over 6 million Koreans, roughly 10% of the population, who have dipped their toes into the crypto pool. Unlike their global counterparts, Korean investors are known to dabble in riskier, lesser-known cryptocurrencies in addition to established names like Bitcoin. The report paints a grim picture of the industry’s practices. Many of these defunct exchanges didn’t even bother to warn users before pulling the plug, leaving them scrambling to salvage their investments. Even in cases where some form of notification was issued, the withdrawal process was described as an “extreme inconvenience” with a...

The African Development Bank and global technology company Intel have formalized their cooperation to transform the African digital ecosystem. The partnership, announced on June 7, 2024, aims to equip 3 million Africans and 30,000 government officials with AI skills. This collaboration will help create a critical mass of Africans proficient in Fourth Industrial Revolution (4IR) skills. The initiative is set to accelerate growth and productivity, positioning Africans as contributors, not just consumers, of 4IR technologies. The training will address socio-economic challenges and boost productivity in key growth sectors such as agriculture, health, and education, thereby disrupting traditional growth cycles. Bienvenu Agbokponto Soglo, Director of Government Affairs Africa and IGA CTO Liaison at Intel, remarked, “Intel looks forward to furthering its collaboration with African governments to make advanced technologies such as AI accessible to all, breaking down barriers related to...

The Reserve Bank of India (RBI) on 30th May 2024 unveiled a Draft Framework for Self-Regulatory Organization(s) (SROs) in the FinTech sector, aiming to bolster risk management, client protection, cybersecurity, and the integrity of the financial system. Released for public consultation, this framework marks a significant step toward structured self-regulation within the rapidly growing FinTech industry. The guidelines, issued on June 5, 2024, propose a comprehensive structure for self-regulation, allowing FinTech companies to align with industry standards and best practices. The framework seeks to balance the innovative potential of FinTechs with the necessity of minimizing their unique risks to the financial system. The draft framework emphasizes the importance of a culture of self-governance within the FinTech sector, encouraging entities to proactively set and adhere to industry standards while demonstrating a commitment to responsible conduct and innovation. Key areas covered in...

The Central Bank of the Republic of Peru (BCRP) is set to develop a payment system modeled after India’s Unified Payments Interface (UPI) through an collaboration agreement with National Payments Corporation of India International Payments (NIPL) dated 07th June, 2024. The collaboration, supported by the Reserve Bank of India (RBI), aims to promote financial inclusion in Peru by enabling offline transactions and enhancing interoperability among domestic and international payment systems. BCRP Governor Julio Velarde emphasized that the new system will foster more payment options for Peruvians and allow new participants to enter the Peruvian financial ecosystem, complementing the existing payments industry. However, no specific launch date has been announced. An official statement from the BCRP highlighted the objective to promote greater access, security, redundancy, and efficiency in digital payments, along with facilitating the introduction of new use cases. Established in 2020,...

The Securities and Exchange Commission (SEC) on June 5, 2024  initiated its biennial collection of Diversity Self-Assessment Submissions from regulated entities, including those in the crypto sector. This initiative provides organizations the opportunity to thoroughly review their diversity and inclusion policies, identifying strengths, opportunities, risks, and vulnerabilities. The SEC leverages the data from these submissions to evaluate and report on progress and trends in diversity-related activities among regulated entities. According to Nathaniel H. Benjamin, Director of the Office of Minority and Women Inclusion (OMWI), “The participation of regulated entities in submitting diversity self-assessments is critical for a more comprehensive understanding of the diversity practices and policies that are being implemented as well as to share information on practices and identify opportunities.” Submitting a diversity self-assessment is voluntary and is not part of the SEC’s...

The Monetary Authority of Singapore (MAS) on 30 May 2024 issued an updated set of Guidelines on Fair Dealing, expanding its scope to include all financial institutions (FIs) and all products and services they offer. This significant update aims to enhance standards of fair dealing and improve customer experience across the financial sector. Under the revised Guidelines, FIs are expected to incorporate key principles of fair dealing at various stages of a product’s lifecycle or services rendered. Customers can now anticipate a higher standard of service, including products tailored to target market needs, appropriate product recommendations with accurate information, clear explanations of terms and conditions, and independent handling of feedback. First introduced in 2009 under the Financial Advisers Act, the original Guidelines focused on the selection, marketing, and distribution of investment products, as well as the provision of advice and post-sales services. The updated scope...

Effective June 1, 2024, all virtual asset trading platforms (VATPs) in Hong Kong must be licensed by the Securities and Futures Commission (SFC) or be deemed-to-be-licensed applicants, marking the end of the non-contravention period under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). The SFC urges investors to trade only on SFC-licensed VATPs and to verify licensing status through the "List of licensed virtual asset trading platforms" on the SFC’s website. Deemed-to-be-licensed VATP applicants are not formally licensed and must demonstrate compliance with SFC regulations before obtaining formal licenses. Deemed-to-be-licensed VATP applicants and their ultimate owners must fully comply with SFC regulatory requirements and licensing conditions. The SFC advises these applicants to refrain from actively marketing their services or onboarding new retail clients until they achieve full compliance. Furthermore, all VATPs must adhere to relevant laws, including...

Dapper Labs has agreed to a $4 million settlement to conclude a class-action lawsuit alleging that its NBA Top Shot Moments nonfungible tokens (NFTs) were unregistered securities. This settlement reaffirms that the NFTs are not securities, according to CEO Roham Gharegozlou. The lawsuit, initiated in 2021 by a class of investors led by Jeeun Friel, claimed that Dapper Labs issued unregistered securities through its NBA Top Shot Moments NFTs. However, a New York District Court filing on June 3, 2024, revealed the settlement agreement, which stipulates that the plaintiffs must cease asserting that the NFTs are securities. In a June 4 post on X, Gharegozlou announced, “Great news! We @dapperlabs today announced a legal resolution that reaffirms two of our most important positions: After discovery, it was understood and agreed that @Flow_blockchain is a decentralized public network and that digital collectibles like @NBATopShot are not securities in the same way trading cards are not...

In a landmark move for the cryptocurrency market, the Thailand Securities and Exchange Commission (SEC) has approved the country's first spot Bitcoin Exchange-Traded Fund (ETF). This significant step marks a pivotal moment in the mainstream adoption of digital assets within Thailand, offering investors a regulated and accessible way to gain exposure to Bitcoin. The approval of this ETF is anticipated to have profound implications for both local and global crypto markets, signaling a growing institutional confidence and regulatory support for Bitcoin and other cryptocurrencies. One Asset Management (ONEAM) has been endorsed by the Thailand SEC to launch the first spot Bitcoin ETF in the country. The ONE Bitcoin ETF Fund of Funds Unhedged, not for retail investors (ONE-BTCETFOF-UI), is specifically targeted at wealthy and institutional investors. Available from May 31 to June 6, this fund aims to invest in 11 leading global funds, ensuring liquidity and safety. Coin storage adheres to...

Australia's federal court has ruled in favor of fintech firm Block Earner, relieving it from paying a fine despite finding that it offered a crypto yield-bearing product without a financial services license. Justice Ian Jackman determined that Block Earner "acted honestly," considering obtaining a license before launching its "Earner" product, which provided yields on loans in USD BTC, Ether, and PAX Gold (PAXG). The court's decision acknowledged Block Earner's efforts to seek legal advice prior to product launch, signaling a recognition of the company's proactive approach to regulatory compliance. In a significant development, the court also ordered the Australian Securities and Investments Commission (ASIC) to pay Block Earner's costs incurred after February 9, following the court's ruling that the "Earner" product required an Australian Financial Services License (AFSL). This ruling came despite ASIC's earlier assertion that the product necessitated such licensing. Moreover,...