Metaplanet’s Japan bet, Bithumb ordered suspension: Asia Express

Everything that happened in crypto news in Asia over the past seven days: Asia Express.

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1. Metaplanet to invest in Japan Bitcoin infrastructure and startups
2. Bithumb hit with six-month partial suspension over AML breaches
3. HSBC, Standard Chartered venture tipped for stablecoin licenses
4. India arrests tech co-founder in $790 million crypto fraud case
5. South Korea closes chapter on government Bitcoin custody scandal
6. Chinese victims contest UK proposal for seized Bitcoin
7. Alibaba backs Singapore stablecoin payments firm MetaComp
8. US sanctions individuals tied to North Korea crypto fraud network

Bitcoin treasury company Metaplanet plans to invest about 4 billion yen ($26 million) to develop Bitcoin-related financial infrastructure in Japan.

Metaplanet said it will launch a new venture arm to back domestic startups in areas such as lending, payments, custody, stablecoins and derivatives.

Metaplanet also signed a preliminary agreement to invest up to 400 million yen in JPYC, which issues a regulated yen-denominated stablecoin.

A separate US subsidiary in Miami will focus on digital credit and Bitcoin capital markets, as well as linking Asian and Western investors.

Bithumb hit with six-month partial suspension over AML breaches

South Korean regulators have imposed a six-month partial business suspension on Bithumb for violations of the country’s anti-money laundering rules, along with a proposed fine of about 36.8 billion won (about $24.7 million).

The sanction was approved on Monday by the Financial Intelligence Unit and includes the largest fine ever imposed on a domestic exchange, according to Yonhap News Agency.

From March 27 to Sept. 26, the platform will be barred from allowing new customers to transfer crypto to or from external wallets.

Existing users can continue trading normally, and new users will still be able to buy, sell and deposit or withdraw Korean won.

HSBC, Standard Chartered venture tipped for HK stablecoin licenses

HSBC and a joint venture led by Standard Chartered are expected to receive Hong Kong’s first stablecoin issuer licenses, according to the South China Morning Post.

The Hong Kong Monetary Authority is reportedly preparing to approve a small initial group of issuers, with note-issuing banks seen as leading candidates.

The regulator has not confirmed the names of any successful applicants or finalized the number of licenses to be granted.

India arrests tech co-founder in $790 million fraud case

India’s Central Bureau of Investigation has arrested a co-founder of Darwin Labs over suspected links to GainBitcoin, a platform at the center of a major crypto fraud investigation.

Authorities detained Ayush Varshney at Mumbai airport after issuing a travel alert tied to the ongoing probe.

Investigators said the company helped build key technical infrastructure used by the scheme, including investor platforms and crypto payment systems.

Officials estimate the case affected about 8,000 investors, with losses reported at roughly $790 million.

South Korea closes chapter on government Bitcoin custody scandal

South Korean prosecutors have reportedly sold Bitcoin held in government custody after it was returned by hackers.

The Gwangju District Prosecutors’ Office said it sold 320.8 Bitcoin, adding about 31.59 billion Korean won (around $21.5 million) to the state treasury.

Authorities seized the funds in an investigation into an illegal gambling website. The crypto was in government custody before it was lost in an August phishing attack. The hackers returned the cryptocurrency last month.

In a separate case, South Korean authorities lost about $5 million in crypto after the tax office distributed a press release that included a photo of a hardware wallet alongside its passwords.