Philippines blockchain bill to battle corruption, crypto KOLs charged: Asia Express

Hong Kong charges crypto influencers over JPEX shilling

Hong Kong authorities on Wednesday formally charged influencers linked to the defunct crypto exchange JPEX.

Among those charged are Joseph Lam Chok, a lawyer-turned-influencer, and Chan Yee, a prominent key opinion leader (KOI) in the cryptocurrency community. Prosecutors say they promoted JPEX while either knowing or ignoring that the platform had no approval to operate in Hong Kong. Under Hong Kong’s Anti-Money Laundering Ordinance, it is an offense to fraudulently or recklessly induce others to invest in crypto.

Six core members of the alleged JPEX group and seven operators of over-the-counter crypto shops were also charged, along with three individuals accused of serving as front account holders.

JPEX launched in 2020 and relied heavily on influencer endorsements and social media marketing. Following the Securities and Futures Commission’s public warning in September 2023, the platform significantly increased withdrawal fees, leaving many users unable to recover their funds. Police say more than 2,700 victims have reported losses totaling around 1.6 billion Hong Kong dollars (about $205 million).

“In the JPEX fiasco, the case against KOLs is clear-cut: they paddled claims that JPEX is safe, was licensed, or soon to be licensed, in Hong Kong or Dubai were repeatedly flagged as manifestly false by the SFC,” Joshua Chu, a co-advocate in the first civil action against JPEX, tells Magazine.

“If these influencers knew JPEX lacked such a license, their conduct is plainly fraudulent inducement; if they failed to verify such an easily checked fact, they are equally exposed for reckless misrepresentation. In either scenario, liability is almost inescapable,” he adds.

While Hong Kong’s charges are specific to the JPEX case, they align with a broader regional trend targeting promotional activity around crypto.

In the Philippines, promoting unlicensed crypto and companies through paid social posts can lead to fines or prison time. In Singapore, MAS rules prohibit the promotion of crypto services to the general public, effectively placing limits on influencer marketing. On Wednesday, Singapore expanded penalties for fraud, which now include a mandatory minimum of six smacks with a cane.

The anti-corruption blockchain bill preps for plenary debate

A Philippine Senate committee has finished deliberating on a proposal that would require government agencies to publish budget and procurement documents on a blockchain.

The proposed law, titled the Citizen Access and Disclosure of Expenditures for National Accountability (CADENA) Act, seeks to make it easier for the public to track how government funds are allocated and spent. The bill was previously referred to as the Budget Blockchain Act.

Drafted by Senator Bam Aquino, the measure aims to curb corruption by making budgeting and contracting records accessible to citizens.

“Under Section 5, the bill transforms transparency into a legal obligation, requiring all government agencies to upload budget documents to the Cadena system, a blockchain-based platform that ensures data verifiability, traceability and auditability,” the Senate said in a Facebook post.

Bam Aquino belongs to the Aquino political family, which is generally associated with the anti-corruption movement in the Philippines. His uncle, former Senator Benigno “Ninoy” Aquino Jr., was the key opposition figure against dictator Ferdinand Marcos Sr. during the martial law era. Ninoy’s assassination in 1983 helped spark the public pressure that led to the 1986 revolution and the end of the Marcos regime.

The Philippines ranked 114th out of 180 countries in Transparency International’s 2024 corruption index.

The committee will now finalize its report. Aquino is expected to sponsor it on the Senate floor for plenary debate on Nov. 12.

Japan’s industry takes first jab at tokenization law

Progmat has launched a new working group to draft a legal framework for tokenized securities in Japan, aiming to enable the onchain transfer of financial instruments, including stocks and investment trusts.

Progmat is a tokenization platform backed by major Japanese financial institutions. It was developed initially within Mitsubishi UFJ before being spun out as an independent company. Progmat also leads the Digital Asset Co-Creation Consortium (DCC), which now consists of 315 member organizations across finance, law, asset management and market infrastructure.

The new group will study regulatory design and market structure for moving existing securities into digital formats. The target is to publish a draft law and a final report by March 2026, with commercial product development for tokenized equities beginning in spring 2026.

Total outstanding security token issuance in Japan exceeds 567 billion yen, according to Progmat, while cumulative issuance surpasses 289 billion yen. Most activity to date has centered on real estate securitization products and tokenized corporate bonds. Tokenization of investment trusts and equities has progressed more slowly due to legal constraints and the strength of Japan’s existing securities infrastructure.

Zhaojin Mining to explore gold tokenization with Ant Digital

Zhaojin Mining’s Hong Kong subsidiary has signed a cooperation agreement with SigmaLayer, a company under Ant Digital Technologies. The two sides plan to collaborate on gold RWA tokenization.

Zhaojin Mining is a major gold producer in China. It is backed by Shandong Zhaojin Group, a major supplier in the Shanghai Gold Exchange and a qualified refiner recognized by the London Bullion Market Association.

The cooperation will include exploring ways to convert physical gold into digital tokens and building blockchain-based traceability. The companies also plan to use AI for supply chain credit assessment and risk management.

Ant Digital Technologies is the tech arm carved out of Jack Ma’s Ant Group following regulatory restructuring in China’s fintech sector. The unit has been focusing more on blockchain and industrial data systems. The Zhaojin partnership comes as Ma-linked firms show renewed activity in tokenized assets.