India mulls new crypto ban to support CBDC, Lazarus Group strikes again: Asia Express

India Bitcoin and crypto ban concerns resurface

Indian regulators are reportedly considering a ban on cryptocurrencies again.

According to local outlet Hindustan Times, the government has been consulting experts who support banning cryptocurrencies in favor of a central bank digital currency (CBDC).

The news outlet cited two anonymous sources familiar with the matter, reporting that the consensus opinion is that the risks of cryptocurrencies outweigh their benefits. 

One of the anonymous sources stated that CBDCs can do “whatever cryptos can do,” and even have more benefits.

India’s cryptocurrency sector has frequently encountered regulatory restrictions imposed by local authorities.

In 2018, the RBI banned financial institutions from providing services to crypto firms, a decision that was later overturned by the Supreme Court. 

In 2021, a proposed legislation sought to ban cryptocurrencies once more. However, in 2022, rather than enforcing an outright ban, the government introduced one of the heftiest crypto tax regimes in the world.

Indian crypto traders are subject to a 30% tax on cryptocurrency income, along with an additional 1% levy on each transaction. India’s CBDC, known as the digital rupee, is currently in its pilot phase.

Retail tests have reached 5 million users, according to the Reserve Bank of India, the nation’s central bank.

Lazarus suspected again as autopsy links BingX hack to Indodax exploit

Recent hacks of Asian exchanges BingX and Indodax have been tied together by exploiters’ use of a common address, according to MistTrack.

Security experts previously accused North Korean state hacking group Lazarus as the suspect behind the $22 million hack on Indodax in September.

Now the blockchain trail suggests Lazarus Group is also the prime suspect behind the attack on BingX.

North Korean hackers have been tied to some of the year’s largest cyberattacks, two of which occurred against Asian crypto exchanges.

Japan’s DMM Bitcoin suffered a $305 million exploit in May, while India’s WazirX lost $235 million in July.

WazirX has been the center of controversy over the past week, as it has been accused of conducting a “disinformation campaign” by its custody partner Liminal, which WazirX blames for causing the breach.

$13M in user funds stuck in South Korea’s crypto exchange graveyard

South Korea’s crypto exchange licensing requirements have led to the closure or suspension of operations at 14 local exchanges.

According to data provided to lawmaker Kang Min-guk by the Financial Services Commission (FSC), more than 33,000 customers of these now-defunct exchanges have been unable to reclaim 17.8 billion Korean won (about $13 million) in fiat and cryptocurrencies.

During the National Assembly’s audit of state affairs on Oct. 24, Kang said that more exchanges are expected to shut down due to strict local regulations, leaving additional funds inaccessible.

The local industry’s self-regulatory group, known as the Digital Asset Exchange Association, has set up a foundation with the FSC’s blessings to help return funds to users through a voluntary system. 

Kang has criticized the voluntary model, with his office telling local media that it is nonsensical.

Throughout the nation’s state audit, which typically runs for about three weeks in October, the FSC’s handling of the crypto industry has faced harsh criticism from lawmakers.

They have accused the commission of showing favoritism toward Upbit, allowing it to achieve a monopoly while driving other exchanges out of business.

One lawmaker likened the FSC’s alleged actions to “Squid Game,” a children’s game popularized by the hit Netflix series of the same name. In the show, contestants are killed until only one remains.

Assassin’s Creed developer makes a blockchain game

Ubisoft, the gaming giant behind popular titles like Assassin’s Creed and Far Cry, entered the blockchain gaming space on Oct. 23 with the launch of its first Web3 game, Champions Tactics: Grimoria Chronicles, on the Japanese blockchain Oasys.

This turn-based role-playing game allows players to battle others using non-fungible token (NFT) characters on Oasys, a blockchain designed specifically for gaming.

Oasys has already attracted major gaming firms like Sonic the Hedgehog creator Sega and Pac-Man creator Bandai Namco.

It supports games through specialized scaling networks known as “Verses.”

The project recently committed to a Web3 gaming expansion in Asia with backing from Japanese financial conglomerate SBI Holdings. 

Ubisoft’s move into the Web3 space adds to the growing momentum for blockchain games, following the success of Off The Grid, a game featuring optional blockchain elements on Avalanche subnet Gunz. 

However, Off The Grid has taken a different approach, downplaying its crypto and NFT components and even distancing itself from the label.

“Off The Grid is not an NFT game. It’s a battle royale game with an optional NFT element. If you want to try out NFTs, you can; if you don’t want to, you don’t have to. It’s entirely up to the player how they want to play the game, and the game is playable without dipping into NFTs,” it says on its FAQ page.

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Yohan Yun

Yohan Yun is a multimedia journalist covering blockchain since 2017. He has contributed to crypto media outlet Forkast as an editor and has covered Asian tech stories as an assistant reporter for Bloomberg BNA and Forbes. He spends his free time cooking, and experimenting with new recipes.