Korean bill to legalize ICOs, Chinese firm’s Ethereum RWAs mystery: Asia Express

South Korean lawmaker wants to bring back ICOs

A South Korean lawmaker has introduced draft legislation to create a framework for cryptocurrencies, including legalizing initial coin offerings (ICOs) and setting rules for stablecoin issuance.

The proposal, announced Thursday by ruling Democratic Party lawmaker Lee Kang-il, would lift South Korea’s ban on ICOs. The nation banned the fundraising method in 2017 during a speculative frenzy remembered as the “ICO boom.” The prohibition pushed Korean projects to launch tokens overseas. Lee’s bill seeks to replace the blanket prohibition with a disclosure-based regime.

The draft law defines the digital asset sector as an independent industry, dividing it into nine business categories that include trading, brokerage, custody, payments and investment management. Trading and brokerage firms would require licenses, while other activities would operate under a registration system.

Stablecoin issuers would face a dedicated oversight framework, including minimum capital requirements of 1 billion won (about $717,000), reserve backing in short-term liquid assets, and mandatory monthly internal and annual external audits.

Bitcoin treasuries don’t find support in HK

Hong Kong-listed firms experimenting with Bitcoin treasuries aren’t finding the same regulatory acceptance as US companies, according to finance outlet Caixin.

Bitcoin gained traction as a company treasury asset in a blueprint popularized by Strategy (formerly MicroStrategy) and successfully adopted by Japan’s Metaplanet. Earlier in the year, the approach offered a quick way to boost a company’s share price. Some firms pivoted to Ether treasury strategies as Bitcoin momentum slowed.

Many crypto treasury companies have faced criticism for using it as a PR stunt or as a way to prop up struggling balance sheets without properly weighing the risks.

In Hong Kong, listed firms such as Boyaa Interactive have emerged as some of the largest publicly traded Bitcoin holders in Asia, while early adopter Meitu, once nicknamed “China’s MicroStrategy,” has sold off its crypto holdings and rewarded its investors.

Despite success cases, an anonymous source cited by Caixin said that Hong Kong regulators are not very receptive to crypto treasury companies. 

The pattern mirrors other crypto hype-driven plays in the city. After Hong Kong’s Stablecoin Ordinance came into force on Aug. 1, several companies released vague stablecoin announcements to boost share prices. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, said that some firms’ stock activity surged just by declaring plans to explore stablecoins without roadmaps.

Yue and HKMA have already issued warnings against speculative behavior related to stablecoin companies. Regulators have yet to make a public statement on crypto treasury companies.

China’s state-owned firm erases Ethereum RWA posts

China’s online community is confused on whether or not Shenzhen’s Futian Investment Holdings, a state-owned enterprise, really issued 500 million yuan (about $70 million) worth of offshore digital bond as real-world assets on Ethereum.

A report on major local media outlets, and several English-based crypto news sites distributed the news, stating that the nation’s first real-world asset bonds on a public blockchain network were issued.

Some reports cited an official announcement on the company’s website, while some cited the company’s WeChat account. However, Magazine has confirmed that both posts have been removed.

Members of the online community also noticed that the information is no longer available on Futian Investment Holding’s official website. At the time of writing, the company has not addressed the reports or why its announcement have been erased.