This week, we look at different crypto legislative and law enforcement actions and responses from around the world that exchanges, regulators, compliance officers and investigators should pay attention to.
Firstly, we visit South Korea, where the Central Bank knocked back the idea of a Bitcoin foreign exchange reserve.
Next up is India, where Coinbase has shown its determination to enter the country’s crypto market.
Meanwhile, in the USA, where every day currently presents an unexpected news event, a fun-loving Singaporean crypto whizz kid has fallen foul of the law, being exposed as a fraud rather than an entrepreneur.
To learn more about these stories, read on.
South Korean Central Bank rules out Bitcoin as a foreign reserve
South Korea’s Central Bank, the Bank of Korea (BOK), has firmly ruled out adding Bitcoin into its foreign reserves, citing the cryptocurrency’s high volatility and lack of intrinsic value as primary concerns.
The BOK took this position during discussions about developing a stablecoin backed by the local currency, the South Korean Won (KRW).
Among the BOK’s concerns was that instability in cryptocurrency values could cause the cost of converting Bitcoin into cash to skyrocket. Additionally, the BOK felt that Bitcoin did not meet the International Monetary Fund’s criteria for foreign exchange reserves.
Meanwhile, neighboring Japan also indicated a reluctance to embrace Bitcoin as a foreign reserve.
By rejecting the establishment of a foreign Bitcoin reserve, South Korea’s BOK has indicated that exchanges wishing to do business in the country will have to prioritize stability and transparency and align themselves with local regulations. The similar position of Japan speaks to the region’s reserved approach to the integration of crypto into the conventional economy.
Find out more about this story at Decrypt.
Coinbase targets Indian crypto market
Coinbase, whose headquarters are based in the U.S., has registered with India’s Financial Intelligence Unit (FIU), enabling it to offer crypto trading services in the country.
The company plans to launch initial retail services later this year, followed by additional investments and products, although specific timelines have not been disclosed.
This move follows a surge in cryptocurrency interest among young Indians seeking to supplement their incomes. Other exchanges like CoinDCX, Binance, and KuCoin are already active in India.
Coinbase’s Asia Pacific regional managing director, John O’ Loghlen, said of the move that “India represents one of the most exciting market opportunities in the world today, and we’re proud to deepen our investment here in full compliance with local regulations.”
The confidence Coinbase has demonstrated in India’s fledgling crypto industry could awaken a sleeping giant. With a population of almost 1.5 billion people, and a growing appetite for crypto, the implications for the market could be vast.
Find out more about this story at India Economic Times.
Highflying Singaporean teenage crypto fraud caught out in USA
Malone Lam Yu Xuan, a 20-year-old from Singapore, who went from being an online gamer to orchestrating one of the largest cryptocurrency thefts in U.S. history. He now faces two indictments in the District of Columbia: one for conspiring to commit wire fraud and another for conspiring to launder monetary instruments.
Dubbed a “crypto whizz-kid” in the U.S., Lam and his accomplice, Jeandiel Serrano, allegedly stole over 4,100 Bitcoin (worth $320 million) from a single victim in August 2024.
Lam allegedly dropped out of school at age 13 or 14 and became active in the gaming community under aliases like “Greavys” and “Anne Hathaway.” He met Serrano through Minecraft, where they were known for stealing and selling player accounts.
By October 2023, Lam had moved to the U.S. on a tourist visa but overstayed illegally. He embraced the so-called “post and boast” lifestyle there, while racking up astronomical bills by renting mansions and buying luxury cars, watches, and the like.
With the stolen funds, Lam lived lavishly – purchasing 31 luxury cars, including a $3.8M Pagani Huayra, and, on occasion, spending up to $500k at nightclubs in a single evening.
Lam’s astonishing rise and fall is particularly striking because of his origins: a youth from an online gaming community who became a crypto villain in a remarkably short space of time. The crypto community should keep its eyes open to such avenues of crime in the future.
Find out more about this story at The Straits Times.
