In East Asia, several significant developments have unfolded in the past week. The largest money laundering scandal in Australia has been unraveled, a crypto derivatives exchange has experienced significant growth, China has partially lifted bans on NFTs, blockchain technology is being used to improve health insurance claims in China, and a court in Huaian is utilizing AI, big data, and blockchain for improved surveillance.
The money laundering scandal in Australia revolves around Changjiang Currency Exchange, a money transmitter business based in the country. The scandal, which involved a whopping $145 million ($230 million in Australian dollars), was exposed by a 300-strong police operation that spanned multiple cities including Melbourne, Sydney, Brisbane, Adelaide, and Perth. The authorities arrested seven individuals, including four Chinese citizens and three Australian nationals, after a 14-month investigation. Changjiang Currency Exchange, operating under the guise of a legitimate currency exchange business, allegedly facilitated the laundering of dirty funds and tainted cryptocurrency from investment scams and unregistered crypto exchanges. One Chinese national in particular was accused of using the services of Changjiang to launder $63 million (A$100M) received from a multinational Ponzi scheme. The investigation is ongoing, and the police have seized $13.27 million (A$21M) in cash and luxury items believed to have been purchased using the proceeds of the crime.
In a positive development for the crypto industry, Bitget, a crypto derivatives exchange, has experienced remarkable growth and has become the fourth-largest exchange by volume, trailing only behind Binance, OKX, and ByBit. Its market share has risen to 9.43% in the third quarter, compared to negligible volume just two years ago. Bitget onboarded over 9,000 traders and attracted 85,000 followers or copy-traders during this period, achieving a net trading profit of $6.7 million. However, the overall trading activity in the industry fell by 23% year over year to $4.8 trillion in the quarter. Bitget has also seen significant growth in its user protection fund, which peaked at $368 million and now stands at $350 million. The exchange claims to have no debt and a proof-of-reserves ratio exceeding 200%. It has also recently launched a $100 million EmpowerX Fund for ecosystem development and has expanded its team with 60 new hires for its Middle East expansion plans.
China has partially softened its stance on NFTs after a year of strict crackdowns on private blockchain enterprises. Xianyu, Alibaba’s peer-to-peer marketplace, has removed its censorship of “nonfungible tokens” related keywords in its search tool and has relisted Topnod NFT collectibles minted on Alibaba’s Ant Blockchain. Previously, regulatory uncertainty prevented Topnod digital collectibles from being listed on secondary markets. The Chinese government is also developing an official NFT trading platform, which was planned to launch this year but is still in development.
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Blockchain technology is being utilized in China to improve health insurance claims. Alibaba’s Ant Insurance has partnered with several provinces in the Yangtze River Delta, including Shanghai, Zhejiang, Jiangsu, and Anhui, to enable users to submit and validate their health insurance claims online. After blockchain verification for authenticity, users can receive their reimbursement within hours. This system has already proved successful, as demonstrated by Mr. Wang, who received a full reimbursement of $17,800 (130,000 Chinese Yuan) for lung cancer treatment within two hours. This initiative improves the efficiency of insurance claims and prevents moral hazard.
In the city of Huaian, China, the Jianpu People’s Court is utilizing a combination of AI recognition, big data, and blockchain technology to enhance law enforcement surveillance. By creating an “all-purpose” system for monitoring visitors entering and leaving court premises, the court aims to improve security and reduce the patrolling of hard-to-monitor areas. The system alerts court bailiffs in cases of trespassing or suspicious behavior, enabling immediate apprehension. It also provides court bailiffs with access to visitor movements and details within court premises, with augmented reality enhancing visibility in hard-to-see areas.
These developments in East Asia highlight the ongoing advancements and potential of blockchain technology in various sectors, including finance, cryptocurrency, insurance, and law enforcement. As the industry continues to evolve, it is important to stay updated on the latest news and trends to assess the potential impact of these developments.
