North Korea denies crypto hacks, Upbit’s bank tests Ripple: Asia Express

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

In this issue

1. North Korea denies cybercrime claims amid crypto hack allegations
2. Upbit’s bank partner tests remittances with Ripple
3. South Korean industry heavyweights test blockchain remittances
4. Hong Kong flags fake stablecoins impersonating licensed issuers
5. Bitcoin reserve proposal reaches Taiwan policymakers
6. Startale adds private transfers to its app on Sony’s blockchain
7. Japan warns of crypto use in property transactions
8. Canaan expands Tether partnership with new hardware deal
9. Bybit removed from Malaysia’s alert list

North Korea denies cybercrime claims amid crypto hack allegations

North Korea has rejected claims linking it to global cybercrime, calling the allegations “unfounded.”

In a statement carried by the Korean Central News Agency, the Foreign Ministry accused the US of spreading false narratives about a non-existent cyber threat.

Pyongyang said the claims are part of a broader hostile policy and criticized the US for portraying itself as a victim.

North Korean state-backed hackers have been blamed for recent crypto exploits, including attacks on Drift and Kelp DAO.

Upbit’s bank partner tests remittances with Ripple

South Korean internet bank Kbank has partnered with Ripple to test blockchain-based overseas remittances.

The trial links customer accounts to Ripple’s network to evaluate efficiency and transparency in cross-border transfers.

Phased testing includes remittances to markets such as the United Arab Emirates and Thailand.

Kbank is the banking partner of Upbit, meaning users must open a Kbank account to deposit and withdraw Korean won on the country’s largest crypto exchange.

South Korean industry heavyweights test blockchain remittances

South Korea’s Hana Financial Group, steelmaker POSCO International and Dunamu, the operator of Upbit, have signed an agreement to launch a blockchain-based remittance system.

The system uses Dunamu’s GIWA Chain to process cross-border payments in real time, replacing parts of the traditional SWIFT workflow.

The agreement is part of a broader global push to challenge the decades-old SWIFT system. In its first-quarter earnings call, 175-year-old cross-border transfer specialist Western Union said it plans to launch its Solana-based stablecoin in May.

Hong Kong flags fake stablecoins impersonating licensed issuers

The Hong Kong Monetary Authority (HKMA), the city’s de facto central bank, has warned that fake stablecoins are circulating under the names of HSBC and Anchorpoint Financial ahead of their official launches.

Tokens using the tickers “HKDAP” and “HSBC” have appeared on the market but are not linked to the licensed issuers.

HSBC and Anchorpoint were the first to receive the HKMA’s approval to launch stablecoins in the city under the new licensing regime. However, neither firm has issued its stablecoin yet.

Bitcoin reserve proposal reaches Taiwan policymakers

Taiwanese lawmaker Ko Ju-Chun has presented a proposal to senior policymakers to include Bitcoin in the country’s reserves.

The report, prepared by the Bitcoin Policy Institute, was submitted to Premier Cho Jung-tai and central bank governor Yang Chin-long during a legislative session.

It suggests allocating a small portion of Taiwan’s $602 billion foreign exchange reserves to Bitcoin as a strategic asset.

Bitcoin has yet to be included in official central bank reserves, though several governments have accumulated it through legal tender policies, mining or asset seizures.

The idea of a Bitcoin reserve remains at the policy discussion stage, as governments explore whether it can function alongside traditional reserve assets such as currencies and gold.

Startale adds private transfers to its app on Sony’s blockchain

Startale Group will integrate Sunnyside Labs’ Privacy Boost into its Soneium-based app to enable private transfers.

This introduces selective disclosure models into consumer blockchain applications tied to Sony’s Soneium network.

The feature adds shielded balances, private peer-to-peer payments and privacy-enabled transaction flows. Meanwhile, transaction data remains hidden from the public but preserves operator-level audit access.

Startale Group is working with financial institutions to build infrastructure for tokenized assets and yen-denominated settlement. Its yen-backed stablecoin targets the mechanics behind the yen’s role as a global funding currency.

Japan warns of crypto use in property transactions

Japanese regulators have issued a joint warning that crypto assets pose money laundering risks in property transactions.

A group of government agencies, including the Financial Services Agency and the Ministry of Finance, instructed real estate agents to apply bank-level Anti-Money Laundering checks, such as customer due diligence and suspicious transaction reporting.

The guidance also warns that converting crypto to fiat on behalf of clients may require registration under Japan’s Payment Services Act.

Last month, Japan moved to classify crypto assets as financial instruments under the Financial Instruments and Exchange Act, where they were previously treated as payment tools.

The reform brings crypto under securities-style regulation, laying the groundwork for potential Bitcoin spot exchange-traded funds.

Canaan expands Tether partnership with new hardware deal

Singapore-based Canaan has secured a new order from Tether for customized Bitcoin mining hardware.

The equipment will be deployed at a Tether-linked site in South America and is designed to improve efficiency using advanced cooling systems.

The deal includes options for additional purchases, allowing Tether to expand if the systems perform well.

Canaan is listed on the Nasdaq, but received a non-compliance notification in January as its shares closed below $1 for 30 days in a row. It has until July 13 to regain compliance.

Bybit removed from Malaysia’s alert list

Bybit has been removed from Malaysia’s investor alert list, CEO Ben Zhou said on X.

Zhou said the exchange aligned its operations with requirements set by the Securities Commission Malaysia.

In December 2024, Bybit was ordered to halt local operations over marketing and compliance breaches.

The company also disclosed an expanded push into Malaysia’s regulated market through an investment in Hata, a licensed local platform.