India's national cybersecurity agency has warned that an AI-assisted threat actor is escalating attacks on cryptocurrency exchanges and other financial businesses, stealing wallet keys and siphoning funds. The Indian Computer Emergency Response Team (CERT-In) on Wednesday designated the threat actor as "CRAFTY FALCON" and explicitly identified crypto exchanges among affected businesses.
"The threat is active and ongoing. CSIRT-Fin continues to receive reports of successful attacks, including from NBFCs and fintech entities that had already received the earlier restricted advisories and had undertaken remediation," said CERT-In.
The warning adds to evidence of hackers using AI tools against financial institutions. In October, cybersecurity firm CrowdStrike reported that an unidentified attacker used ARTEX, an AI penetration-testing tool also named in CERT-In's advisory, alongside Claude Code and other AI models to breach South Korean financial firms and steal data.
South Korea urges exchanges to boost cold storage after Binance hack
South Korea's Financial Services Commission has urged domestic crypto exchanges to increase the proportion of assets held in cold wallets after the $6.3 billion attack on Binance. The FSC said it held an emergency meeting with other regulators, cybersecurity agencies and crypto service providers to review security measures.
It reviewed exchanges' IT access controls, wallet withdrawal approval and signing procedures, and administrator privileges. It also urged providers to increase the proportion of assets held in offline cold wallets. But South Korean law already requires exchanges to hold at least 80% of users' crypto assets in cold storage, with Upbit keeping 99.17% assets in cold wallets, followed by Bithumb at 94.76% and Coinone at 85%.
Bank of Korea probes financial firms' exposure to crypto risks
The Bank of Korea is surveying 31 financial institutions on how a major exchange shutdown, prolonged crypto downturn or losses at another firm could affect their operations. One scenario asks how financial firms would be affected if South Korea's largest crypto exchange by market share temporarily suspended operations following a major hack or similar incident. Other questions address a steep fall in cryptocurrency prices followed by a sustained trading slump, and the potential fallout if another financial institution suffered heavy losses from a crypto-related incident.
North Korea denies role in $6.3B Binance hack
Despite clear evidence of years of North Korea-linked hacking groups stealing billions from crypto exchanges, Pyongyang claims to have had no involvement in the $6.3 billion Binance hack and floated the idea it was actually the Americans.
"The FBI is trying to brand the DPRK as a 'cyber criminal state', claiming that it obtained information that a hacking organization 'supported' by the DPRK was involved in the incident," said Kim Yo Jong. "But the US assertion is an absurd rhetoric and nothing new."
South Korea targets 2029 for the next crypto tax delay
South Korea's government has backed postponing tax on cryptocurrency gains by another two years to 2029. Judging on the troubled history of the tax, it would not be surprising if it is delayed again at that point.
Hong Kong
Crypto.com will discontinue its consumer app services in Hong Kong on Feb. 1, 2027, while continuing to pursue regulatory approval for its institutional exchange. A Crypto.com spokesperson told Cointelegraph that the company would discontinue its consumer app services in Hong Kong. The spokesperson said all affected customers had received advance notice and would receive instructions on closing their accounts and support to withdraw their funds. Nearly three years after the local entity submitted an application for a license, the status remains "deemed-to-be-licensed" — a transitional status rather than full regulatory approval.
Animoca Brands has secured approval to manage investment funds for non-retail clients in Abu Dhabi. The authorization, granted to subsidiary Animoca Asset Management (AD) Limited by Abu Dhabi Global Market's Financial Services Regulatory Authority (FSRA), allows it to oversee funds that pool money from professional investors rather than the general public. It expands the asset management business of a company that began in mobile games before moving into blockchain gaming, rode the Metaverse wave and was a big player in venture investing.
Hong Kong has expanded its Project Ensemble pilot to allow round-the-clock settlement of tokenized transactions, as the city's monetary regulator prepares to bring regulated stablecoins into trials involving tokenized government debt. Hong Kong has also officially introduced secondary market trading for SFC-authorised Tokenized Funds through licensed exchanges. Two China Asset Management money-market funds can now trade continuously via PantherTrade and the Futubull app.
Thailand to block Bitget in December over unlicensed crypto trading
Thailand's securities regulator has filed a criminal complaint against BG Limited, the operator of cryptocurrency exchange Bitget, for allegedly operating without a license. Thailand's Securities and Exchange Commission will block access to the website and app from December 5. According to the SEC, Bitget offered crypto trading services between 2022 and 2025, charged trading fees and promoted its services in Thai through its websites and social media channels. The regulator said these activities violated Thailand's digital asset business licensing requirements. The regulator advised users to take action regarding assets held on the platform before the deadline.
Australia lifts rates to 18-year high as AI boom, energy costs fuel inflation
Australia's central bank raised its interest rate by 25 basis points to 4.85% on Tuesday, warning that inflation would stay elevated through much of 2027 as energy costs and AI-related investment added to price pressures. The Reserve Bank of Australia's monetary policy board voted 6–3 for the increase, with three members preferring to hold rates at 4.60%. The bank pushed back its forecast for inflation to return to the top of its 2% to 3% target range until late 2027, around three quarters later than previously expected.
The Australian government's decision to scrap the 50% capital gains discount for all investments in the May budget came as a big shock for crypto owners. The new scheme effectively doubles the taxable component of a gain, minus a small discount for inflation. Some Aussie crypto holders are taking drastic measures — like Finder founder and crypto king Fred Schebesta who is relocating to Singapore which offers 0% CGT, stating the tax changes were a "killer blow." But there are less dramatic methods to reduce CGT bills including setting up a self managed super fund (SMSF), a company to trade crypto at the company tax rate, or to hope the opposition will reverse the changes after the next election.
Japan
Japanese yen stablecoin JPYC marked its first anniversary with a circulating supply around 3 billion yen—one quarter of its internal target. BlackRock, BlackRock Japan, SBI Holdings and Startale have signed an MOU to explore connecting tokenized money-market funds with SBI's JPYSC yen stablecoin.
Vietnam requires crypto exchanges to report 'incidents' within 24 hours
Ministry of Finance rules require cryptocurrency exchanges licensed in Vietnam to report security incidents and remediation plan within 24 hours.
Five banks launch tokenization standards body in Singapore
Five major banks—including HSBC, JPMorgan's Kinexys, MUFG, Société Générale-Forge under BNP Paribas, and Standard Chartered—have launched the Global Layer One Organization (GL1) in Singapore. The non-profit aims to promote standards for tokenized financial markets.
