Hong Kong Web3 Daily Must-Read: The Ethereum Foundation will redesign its funding approach, and in August, the trading volume of DEX on the Ethereum network surpassed $140.1 billion.
Fear and Greed Index: 39 (Greed)
Bitcoin Price: $108,076
BTC/ETH Spot ETF Fund Flow (Last Week)
BTC Net Inflow: $440.71 M
ETH Net Inflow: $1.08 B
Hong Kong
BTC/ETH Spot ETF Fund Flow (8.29)
BTC Net Inflow: 0 BTC
ETH Net Inflow: 0 ETH
[According to ichaingo data, this week, the net subscription volume of Ethereum spot ETFs in Hong Kong is approximately 1,400 units, achieving net inflow for four consecutive weeks.]( ETF net subscription volume is approximately 1,400 units, achieving net inflow for four consecutive weeks
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[According to ichaingo data, this week, the net subscription volume of Bitcoin spot ETFs in Hong Kong is approximately 55.08 units, achieving net inflow for three consecutive weeks.]( ETF net subscription volume is approximately 55.08 units, achieving net inflow for three consecutive weeks
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The Chairman of the Hong Kong Investor and Financial Education Committee, Du Gan Kun, stated in a recent interview that the main use of stablecoins is as a cross-border remittance tool. If widely accepted by society in the future, it could reduce cross-border payment costs. Stablecoins are related to virtual currencies, issued by private institutions, collateralized by mainstream fiat assets like the US dollar, while using cryptocurrencies as collateral, which correspondingly has high volatility. If there is insufficient understanding of related products, one should not invest.
Hong Kong Legislative Council member Wu Jiezhuang tweeted that Hong Kong is actively building an international digital asset center, balancing innovation and compliance for enterprises. He also believes that the combination of capital markets and the digital asset industry will bring new momentum to the market. DePIN combines blockchain with the real economy, promising to reshape traditional industries such as the Internet of Things, energy, and transportation. Many exhibitors from overseas at Cyberport are developing Web3 and real-world application projects and technologies, which will undoubtedly bring new blue ocean markets.
The Hong Kong-listed company China Financial Leasing Group released its interim performance report for the period ending June 30, 2025, disclosing that the continued weakness of the US dollar has triggered a rise in Bitcoin. The company has begun to pay attention to the cryptocurrency market and has started investing in the cryptocurrency industry, particularly holding physical cryptocurrencies rather than synthetic products in related exchange-traded funds. Current major investments include: Southern Eastern Hong Kong Dollar Money Market ETF, BlackRock iShares Bitcoin Trust ETF, Huaxia Bitcoin ETF, iShares Ethereum Trust ETF.
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Hong Kong Legislative Council member and member of the Stablecoin Bill Committee, Huang Junshuo, stated, "Regulators should complete the licensing of stablecoin issuers as soon as possible after improving the review process and publish the list of licensed issuers, allowing the public to use and invest safely under legal protection." He emphasized that the actual application scenarios for stablecoins are still in the exploratory stage and should not become speculative tools. Recently, there have also been related speculation and fraud cases, calling for authorities to strengthen public education and promotion regarding digital assets, raising investor awareness to avoid scams.
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Inspector Zeng Jianhua of the Technology and Wealth Crime Unit of the Hong Kong Central District Police disclosed the resolution of a "deceptive stablecoin" fraud case, where a 77-year-old woman brought HKD 3 million in cash to a virtual currency exchange shop on Upper Lascar Row to purchase stablecoins, only to be deceived by the staff using a "fake stablecoin" scheme. The Hong Kong police used the "Sharp Eye Plan" footage and, after in-depth investigation and intelligence analysis, arrested three male and female fraudsters within three days of the incident, temporarily charging them with obtaining property by deception. They are currently investigating other involved parties and remaining stolen funds, and more arrests are not ruled out. Note: "Stablecoin" is a term in Cantonese referring to a safe deposit box or safe. It is a security device typically used to store valuables such as jewelry, precious metals, cash, and important documents like wills and deeds.
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Hong Kong Monetary Authority Vice President Chen Weimin stated at the 7th Guangdong-Hong Kong-Macao Greater Bay Area Financial Development Forum that the HKMA actively encourages mainland enterprises to establish overseas business headquarters and corporate treasury centers in Hong Kong to coordinate the allocation of overseas funds. In terms of payments, the current global payment system still faces issues of multiple intermediaries and high payment costs. With technological advancements, these problems will gradually be resolved, one example being the application of blockchain technology in the payment field. Currently, Hong Kong is simultaneously promoting the application of central bank digital currencies and commercial bank currencies, hoping to provide more convenient and efficient solutions for future cross-border trade and investment payments.
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Hong Kong Financial Secretary Paul Chan stated yesterday at the "FinTech Forum 2025" in Hong Kong that Hong Kong will adopt an "innovation-driven" strategy to create a new digital financial ecosystem. He also revealed that the HKMA is preparing to issue the third batch of tokenized green bonds, with the total issuance of the previous two batches reaching HKD 6.8 billion, making Hong Kong one of the first governments in the world to issue such bonds.
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Hong Kong Financial Secretary Paul Chan stated yesterday at the "FinTech Forum 2025" in Hong Kong that Hong Kong will adopt an "innovation-driven" strategy to create a new digital financial ecosystem. He also revealed that the HKMA is preparing to issue the third batch of tokenized green bonds, with the total issuance of the previous two batches reaching HKD 6.8 billion, making Hong Kong one of the first governments in the world to issue such bonds.
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Hong Kong Financial Secretary Paul Chan stated yesterday at the "FinTech Forum 2025" in Hong Kong that Hong Kong will adopt an "innovation-driven" strategy to create a new digital financial ecosystem. He also revealed that the HKMA is preparing to issue the third batch of tokenized green bonds, with the total issuance of the previous two batches reaching HKD 6.8 billion, making Hong Kong one of the first governments in the world to issue such bonds.
<h3 dir=)[In a 2018 cryptocurrency kidnapping and extortion case in India, victim Shailesh Bhatt was kidnapped and forced to sell Bitcoin as ransom. Currently, Indian authorities have sentenced 14 criminals to life imprisonment, including 11 police officers (including the former police chief at the scene and a former member of the Indian Legislative Assembly). Special judges sentenced these individuals for kidnapping, extortion, and criminal conspiracy under the Indian Penal Code. In the case, victim Shailesh Bhatt was lured to a gas station and then kidnapped, subsequently being forced to pay 34 Bitcoins (worth approximately $150,000) as ransom. A total of 172 witnesses were summoned during the trial, but 92 of them changed their testimonies. Notably, victim Bhatt himself is currently being prosecuted by law enforcement for allegedly kidnapping a BitConnect promoter, and the case is still under trial.
]( In a 2018 Bitcoin extortion case, 14 people were sentenced to life imprisonment, including 11 police officers
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[]( In a 2018 Bitcoin extortion case, 14 people were sentenced to life imprisonment, including 11 police officers
<p class=)[Dutch and US law enforcement agencies have shut down the fake identity platform VerifTools that utilized cryptocurrency transactions. The platform sold forged documents for as low as $9 and accepted cryptocurrency payments. This operation seized 23 servers, and the FBI determined that the market had generated approximately $6.4 million in revenue. Dutch authorities estimate that VerifTools has an annual turnover of about €1.3 million (approximately $1.5 million), making it one of the largest providers of fake identification documents in the world.
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[]( VerifTools
<p class=)[Former Vice Chairman of the China Banking and Insurance Regulatory Commission, Huang Hong, stated at the 7th Guangdong-Hong Kong-Macao Greater Bay Area Financial Development Forum that opening up is the lifeblood of the financial survival and development of the Greater Bay Area. Currently, the financial industry in the Greater Bay Area is large in scale, comprehensive in elements, and high in internationalization, ranking among the top in the world. In deepening the Greater Bay Area's opening up, Huang Hong suggested strongly supporting the Greater Bay Area to take the lead in trials, recommending that relevant departments grant the Greater Bay Area more reform trial rights. Allow the Greater Bay Area to explore and attempt in areas such as technology finance, digital finance, and cross-border finance. For example, create a financial reform experimental zone for technological innovation in the Greater Bay Area, implement cross-border payments with digital renminbi, and promote the global allocation of financial assets.
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[](<p class=)[The Japanese Financial Services Agency announced the budget agency and personnel allocation plan for the fiscal year 2026, stating that it will undergo significant restructuring of the regulatory system. Specific measures include reorganizing the Comprehensive Policy Bureau, establishing a new "Asset Management and Insurance Regulatory Bureau (tentative name)," and setting up dedicated departments to handle cryptocurrency assets and cashless payments—namely, the "Cryptocurrency Assets and Innovation Office" and the "Funds Settlement Monitoring Office." In the field of cryptocurrency assets, existing functions of the "Cryptocurrency Assets and Innovation Advisor Office," "Funds Settlement Monitoring Office," and "Settlement and Digital Finance Group Monitoring Office" will be integrated, with the new department responsible for regular market monitoring, fulfilling disclosure obligations in sales inducements, implementing adaptive regulation, and responding to systemic risks. The tax reform demands announced on the same day also include exploring the implementation of a separate taxation system for cryptocurrency transactions, indicating that the Financial Services Agency is constructing a "system equivalent to stock market investor protection" from both institutional and organizational dimensions.
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[Project/Company Updates](<p class=)
[10x Research released a report stating that South Korean retail investors have invested over $12 billion this year to purchase shares of cryptocurrency companies listed in the US, such as Bitmine, Circle, and Coinbase. In August alone, South Korean investors spent $426 million on Bitmine shares, $226 million on Circle shares, and $183 million on Coinbase shares.]( Research: South Korean retail investors have invested over $12 billion this year to purchase shares of Bitmine and other US-listed cryptocurrency stocks
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[Binance announced cooperation with Chainalysis, stablecoin issuers, and law enforcement agencies in the Asia-Pacific region, freezing $47 million in illegal funds related to "pig-butchering" fraud cases in June 2024.]( Chainalysis and others assist Asia-Pacific law enforcement in freezing $47 million in illegal funds<p class=)
[]( Chainalysis and others assist Asia-Pacific law enforcement in freezing $47 million in illegal funds<p class=)[Recently, Meinian Health Industry Holdings Co., Ltd.'s wholly-owned subsidiary, Meinian Health Industry Co., Ltd., signed a "Digital Asset Business Cooperation Framework Agreement" with Guofu Quantum Innovation Co., Ltd. and Beijing Beifang Information Technology Co., Ltd. The three parties will leverage their respective resource endowments to conduct comprehensive business exploration and cooperation in the field of digital asset RWA, exploring new paradigms for releasing the value of equipment and data assets in the health care sector, and supporting the upgrade and innovative development of the health industry.
]( Cooperation in the RWA field<p class=)
[]( Cooperation in the RWA field<p class=)[Stablecoin issuer Tether announced that, after feedback from members of the ecosystem, it has abandoned plans to freeze USDT smart contracts on five chains: Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand. Users can still transfer tokens on these blockchains, but Tether will stop direct issuance and redemption on these chains. Among them, the Omni Layer is the most affected chain, currently holding approximately $82.9 million worth of USDT, while participation from other networks is relatively small. Tether had announced back in August 2023 that it would stop issuing USDT on Omni Layer, Kusama, and Bitcoin Cash SLP, and suspended minting on EOS and Algorand in June 2024. Currently, Tether provides the most support on Tron and Ethereum, with USDT circulating at $80.9 billion and $72.4 billion on these two chains, respectively.
]( Cancellation of the plan to freeze USDT on EOS and other five blockchains<p class=)
[]( Cancellation of the plan to freeze USDT on EOS and other five blockchains<p class=)[The Ethereum Foundation stated that the Ethereum Foundation (EF) funding program was launched in 2018 and has gradually evolved into the Ecosystem Support Program (ESP), which helps the Ethereum ecosystem thrive by providing grants and support. In 2024 alone, the ESP allocated nearly $3 million to 105 projects and initiatives through the public funding program's web form. To better align with EF's updated ecosystem development strategy, the foundation is adjusting the priorities and approach of the ESP. As part of this transition, the open grant application has been temporarily suspended. This change will provide the foundation with time to redesign, shifting the focus from a reactive model to a more proactive one while supporting the priorities of other EF teams. Funding for Ethereum public goods will continue, and applications will be accepted, but in a new manner, with specific details to be announced in future posts.
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[](<p class=)[NASDAQ-listed Sharps Technology has completed a private placement of common stock and warrants, raising over $400 million from this equity financing transaction. Additionally, the company stated that exercising all warrants could raise an additional $600 million, expanding the total fundraising scale to $1 billion in the future. The new funds will support its digital asset treasury strategy, with SOL being the main holding of this treasury. The company plans to use the net proceeds from this issuance primarily to acquire SOL in the open market.
]( Sharps Technology completes over $400 million private placement and advances digital asset treasury strategy<p class=)
[In-Depth & Outlook]( Sharps Technology completes over $400 million private placement and advances digital asset treasury strategy<p class=)
[Historically, India has been a deeply entrenched cash-dominated economy. This "cash is king" situation is not due to cultural preferences but is a direct consequence of the long-standing absence of traditional financial infrastructure and low service penetration rates.
]( In India? A comprehensive analysis of the landscape of cryptocurrency payments in India!<p class=)
[]( In India? A comprehensive analysis of the landscape of cryptocurrency payments in India!<p class=)[Overall, the recent on-chain data activity in the US, while not strongly stimulating the market in the short term, may have a more significant long-term impact on the entire cryptocurrency industry. This marks the opening of a new door for mainstream public chains to serve as the core layer for data storage in the future.
Perspective
]( GDP data will be stored on Bitcoin, Ethereum, and other nine public chains<p class=)
[]( GDP data will be stored on Bitcoin, Ethereum, and other nine public chains
Although the approval cycle for cryptocurrency ETP applications by the US SEC has historically been the longest, in this case, the proposed rule changes will significantly alleviate the burden on the agency in facing a massive and growing number of cryptocurrency ETP applications. Coupled with the SEC's increasingly friendly attitude towards cryptocurrencies, we believe that the US SEC may make a final decision before the March 2026 deadline.
