Wang Yongli, a former vice president of the Bank of China, has expressed concerns over US President-elect Donald Trump’s proposal to create a Bitcoin reserve. Wang argues that this move would undermine Trump’s objective of maintaining the dollar’s global supremacy. In an opinion piece published in China’s state-backed financial magazine, Wang criticized the decentralized nature of Bitcoin as offering no real advantage to supporting the dollar’s international status. He warned that excessive deregulation and resistance to developing a digital dollar could damage the dollar’s international standing.
Wang questioned the practicality of establishing a national Bitcoin reserve, highlighting significant risks and uncertainties. He pointed out the limitations of the US Treasury Department’s Foreign Exchange Stability Fund, valued at $206 billion, which he deemed insufficient for creating a meaningful reserve without incurring more debt. Additionally, Wang argued that Bitcoin seized from illegal operations should be returned to their rightful owners.
The shift in US policy, including the approval of spot Bitcoin exchange-traded funds (ETFs) and Trump’s election as a pro-crypto candidate, has prompted former Chinese officials to reconsider their country’s stance on cryptocurrencies. Zhu Guangyao, the former vice minister of Finance, has called for a reevaluation of China’s crypto policies, while former finance minister Lou Jiwei has advocated keeping a closer watch on cryptocurrency developments.
South Korea’s Financial Services Commission (FSC) has announced plans to allow corporate cryptocurrency investments gradually. A Jan. 8 presentation revealed that the FSC aims to permit real-name accounts for corporations through a new cryptocurrency committee, set to meet on Jan. 15. Currently, the inability of institutions to open real-name accounts has effectively banned corporate crypto investments.
Reports from last year claimed the FSC had a phased plan to permit corporate crypto trading by 2025, but this was denied at the time. However, the focus now seems to be on prioritizing universities and municipalities rather than corporations. Ki Young Ju, CEO of CryptoQuant, suggested that corporate participation in institutional crypto adoption might only occur once South Korea’s crypto tax regulations are implemented, with lawmakers postponing the tax start date to 2027.
In Hong Kong, authorities have arrested 31 suspects involved in investment scams using deepfake technology to target victims in Taiwan, Malaysia, and Singapore. The syndicate operated out of two scam centers and offered cash to young recruits for posing as attractive women on dating apps to defraud victims. Police seized over HK$34 million during the operation. This follows a similar crackdown in October, when 27 suspects were arrested for a syndicate that earned $46 million.
Thailand is preparing a pilot program to test cryptocurrency payments in Phuket, catering to tourists looking for alternative payment options. Deputy Prime Minister and Finance Minister Pichai Chunhavajira introduced the plan, which will operate within the existing legal framework. The pilot aims to integrate digital currencies into daily transactions for tourists, enhancing Thailand’s competitiveness in the global tourism market. Tourists will register their Bitcoin through a licensed Thai exchange and complete identity verification before making purchases.
