Australia’s $145M exchange scandal, Bitget claims 4th, China lifts NFT ban: Asia Express

Our weekly roundup of news from East Asia curates the industry’s most important developments.

Largest money laundering scandal in Australia unravels

Changjiang Currency Exchange, a money transmitter business based in Australia, has beenbustedin a $145 million ($230 million Aussie dollar) money laundering scandal.

On October 26 a 300-strong police operation spanning Melbourne, Sydney, Brisbane, Adelaide, and Perth arrested seven individuals — four Chinese citizens and three Australian nationals, after a 14-month investigation.

The investigation began after law enforcement officials noticed irregular traffic at Changjiang kiosks across Australia during a time of strict COVID-19 related lockdowns. Police have since seized $13.27 million (A$21M) in cash and various luxury items believed to have been purchased using proceeds of crime. The investigation remains ongoing.

Bitget’s colorful Q3

Crypto derivatives exchange Bitget has risen to become the fourth-largest by volume, trailing behind only that of Binance, OKX, and ByBit. 

According to the October 20 report, Bitget claims that its market share has risen to 9.43%, compared to negligible volume just two years ago. During Q3 2023, the exchange says it onboarded over 9,000 traders along with 85,000 followers or copy-traders, who together achieved a net trading profit of $6.7 million. However, the combined industry trading activity fell by 23% year over year to $4.8 trillion in the quarter.

From July to September, Bitget’s user protection fund peaked at $368 million and now stands at $350 million. The exchange claims that it has no debt alongside a proof-of-reserves ratio exceeding 200%. In September, the firm launched a $100 million EmpowerX Fund dedicated to ecosystem development and hosted a namesake summit in Singapore. It also hired 60 staff in July for its Middle East expansion plans. 

China partially lifts bans on NFTs

After a year of harsh crackdowns on private blockchain enterprises, it appears that China has softened its stance somewhat. 

According to local news reports on October 25, Xianyu (literally ‘Bored Fish’), Chinese internet conglomerate Alibaba’s flagship peer-to-peer marketplace, has removed its censorship of “nonfungible tokens” related keywords in its search tool and relisted Topnod NFT collectibles minted on Alibaba’s Ant Blockchain.   

Due to regulatory uncertainty, Topnod digital collectibles were prohibited from listing on secondary markets. Last December, Cointelegraph reported the Chinese government’s official NFT trading platform was planned to launch this year. The exchange is still in development at the time of publication. Since 2021, China has officially banned almost all crypto-related activity saved for outright ownership of cryptocurrencies. 

Blockchain connects interprovincial health insurance in China

Residents of Shanghai, Zhejiang, Jiangsu, and Anhui provinces can now submit and validate their health insurance claims using blockchain technology. 

In a partnership with Alibaba’s Ant Insurance, users in the aforementioned regions can submit their claims online, and after blockchain verification for authenticity, receive their reimbursement within hours. 

In one instance, an individual known as Mr. Wang submitted his claim for lung cancer treatment in Anhui, and received the full $17,800 (130,000 Chinese Yuan) reimbursement within two hours. Su Fang, Director of the Financial Insurance Institute of Shanghai University of Finance and Economics, commented:

“This time, all electronic financial and medical bills in the Yangtze River Delta have been opened and applied on a large scale in commercial insurance claims, marking the true application of the digital Yangtze River Delta construction. This not only brings real convenience to the people, but also improves the efficiency of insurance claims and effectively prevents moral hazard.”

Ant Insurance has operated a blockchain-powered claims portal since 2019. For the past four years, the platform has processed over 2.25 billion medical claims and improved information sharing between insurance providers and medical professionals.

Huaian uses blockchain to improve surveillance 

The City of Huaian’s Jianpu People’s Court is using a combination of AI recognition, big data, and blockchain technology to improve law enforcement surveillance. 

Starting October 25, the Jianpu People’s Court will create an “all-purpose” system for monitoring visitors entering and leaving court premises. As soon as a visitor is identified to be trespassing in an unauthorized area, the system will alert court bailiffs for their immediate apprehension. Officials say that the system can drastically reduce the patrolling of hard-to-monitor areas: 

“Outside the court walls and in the public rest areas outside the courtroom of the main building, etc., intelligent behavior analysis technology can be used to capture and intelligently analyze the behavior of the parties, provide early warning of possible dangerous behaviors such as abnormal gatherings, strenuous exercise, fights, etc., and remind judicial police and other staff to pay attention and deal with it promptly and appropriately.”

Through the system, court bailiffs would gain access to all visitors’ movements and details within court premises. Augmented reality will also enhance hard-to-see areas for better resolution. 

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