In a recent case that has sent shockwaves through China’s IT and Web3 communities, an unnamed individual was fined a staggering 1.06 million Yuan ($144,907) for using a virtual private network (VPN) to access restricted websites as part of their remote work routine. The individual, who worked as a consultant between 2019 and 2022, used the VPN to access platforms like GitHub, Zoom, and Twitter for work-related tasks. However, Chinese law strictly prohibits the use of VPNs to bypass its “Great Firewall” that blocks popular sites such as Google, Wikipedia, and Facebook. This ruling has raised concerns among those who rely on VPNs for similar remote-work purposes.
The City of Hangzhou is getting ready to host the 19th Asian Games and is taking measures to incentivize food and beverage spending. As part of this effort, they are airdropping 10 million digital yuan central bank digital currency (e-CNY), totaling $1.37 million, to individuals within the municipality. These e-CNY vouchers can be used for up to three transactions, reimbursing merchants with 20% to 30% of the value of food items purchased. However, these vouchers expire after five days and can only be used through select food delivery platforms. Hangzhou previously conducted a similar initiative earlier this year, airdropping 4 million e-CNY to boost adoption of the central bank digital currency.
In a significant crackdown on fraudulent activities, Hong Kong police have detained 15 individuals connected to the collapse of cryptocurrency exchange JPEX. The police have received over 2,392 complaints, revealing a collective loss of 1.5 billion Hong Kong dollars ($191.6 million) in what appears to be a Ponzi scheme. During the investigation, authorities managed to seize 8 million HKD ($1 million) in cash and freeze bank accounts worth 77 million HKD ($10 million) suspected of being proceeds of the crime. Before its collapse, JPEX was heavily marketed across Hong Kong, with advertisements displayed in metro lines and taxis. This incident is shaping up to be one of Hong Kong’s biggest Ponzi schemes in terms of monetary loss.
Despite falling victim to a $70 million wallet hack orchestrated by North Korea’s Lazarus Group, Hong Kong crypto exchange CoinEx has announced the resumption of its services. CoinEx claims to have resumed deposits and withdrawals for 190 cryptocurrencies, including popular ones like Bitcoin, Ethereum, USD Coin, and Tether. The exchange updated its wallet system and deposit addresses for all crypto assets to enhance security. The hack, which occurred due to a leak of the exchange’s hot wallet keys, resulted in the theft of over $70 million worth of users’ cryptocurrencies. However, CoinEx emphasized that the incident didn’t affect its cold wallets and that the CoinEx User Asset Security Foundation would cover the financial losses resulting from the hack.
Chinese tech giant Alibaba, known for its e-commerce dominance, is now venturing into the world of digital wallets. Alibaba’s Cloud subsidiary has partnered with crypto custodian Cobo to develop an enterprise wallet-as-a-service solution. This partnership aims to integrate crypto wallets into software through APIs and SDKs, providing developers and organizations with an accessible and secure wallet solution. Cobo will leverage its technology, including custodial wallets and multi-party computation, to build the Alibaba Cloud wallet. With partnerships already established with over 500 institutions and billions of digital assets under its custody, Cobo brings considerable expertise to this collaboration. This move highlights Alibaba’s commitment to setting new standards in digital wallet infrastructure for the Web3 era.
The developments in East Asia have showcased both the opportunities and challenges within the region’s technology and financial sectors. China’s crackdown on VPN usage raises concerns about digital privacy and the limitations imposed by the “Great Firewall.” Hangzhou’s digital yuan airdrop demonstrates innovative approaches to promoting economic activity during events like the Asian Games. The collapse of JPEX and the subsequent arrests highlight the need for stricter regulations and enforcement within the cryptocurrency ecosystem. Despite being a target of a significant hacking incident, CoinEx’s swift recovery emphasizes the importance of robust security measures and user protection. Finally, Alibaba’s foray into digital wallets signifies the continued integration of blockchain technology within mainstream financial services. These developments signal the dynamic nature of East Asia’s digital landscape and illustrate the region’s role in shaping the future of technology and finance.