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

South Korean Web3 firm raises $140 million 

South Korean nonfungible tokens (NFT) developer Line Next secured a $140 million investment on December 13 from a consortium led by Peter-Thiel-backed private equity firm Crescendo Equity Partners. It’s the largest blockchain series funding round in Asia this year.

The firm’s NFT platform, dubbed “DOSI,” is scheduled to premiere in January 2024, integrated with Japanese NFT marketplace Line NFT.

“With this investment, Line Next also plans to introduce new services to further accelerate Web3 popularization. These include introducing a social app that allows users to communicate based on the characters they made utilizing AI technology and launching new Web3 games utilizing BROWN & FRIENDS characters that anyone can enjoy.”

Line Next plans to create the new services on public blockchain Finschia, with Line and Crescendo participating in the Finschia Foundation as governance members. The firm claims it has achieved over 470,000 cumulative transactions through various decentralized applications operating under its DOSI brand. Its popular messaging app, Line, has over 5 million users. 

The upcoming Dosi NFT platform.
The upcoming Dosi NFT platform.

China’s AI market reaches $1.42 trillion this year

The state-owned China Electronics Information Industry Development Academy (CEIIDA) estimated on December 14 that the country’s AI market grew to be worth 10 trillion yuan ($1.42 trillion) this year, aided by the use of generative AI in manufacturing, retail, information technology, and healthcare. And it said the industry is just getting started:

“In 2035, generative artificial intelligence is expected to contribute nearly 90 trillion yuan in economic value to the world, of which my country will exceed 30 trillion yuan, accounting for more than 40%.”

According to official statistics, over 1,800 AI firms are situated in Beijing alone. Advancements in Chinese AI have enabled firms to directly harness the power of AI computing via cloud technology, skipping requirements to develop their own in-house generative AI models. By 2025, CEIIDA researchers estimate that 35% of the country’s digital computing operations will be handled by AI. Meanwhile, the City of Beijing has begun to issue “vouchers” tied to government related generative-AI software. The AI vouchers promise data computation and delivery for tasks such as medical inquiries within “one millisecond” of initiation.

Earlier this year on June 5, Chinese AI startup Guangnian Zhiwai, or “Lightyears Away”, reached unicorn status less than 100 days after incorporation. The round was led by a notable Chinese venture capital firm along with Chinese internet conglomerate Tencent. According to media reports, Lightyears Away aims to become China’s OpenAI, mirroring its American counterpart’s success. The firm had no market-ready product at the time of the raise and only started hiring technical staff thereafter.

An AI-powered robotics research center in China (CCTV).
An AI-powered robotics research center in China (CCTV).

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Huobi co-founder’s new venture stagnates

Sinohope Technology (also known as New Huo Tech), is a cryptocurrency exchange and custodian established by Huobi Global co-founder Leon Li. It disclosed on December 13 that the firm expects a loss of $280 million Hong Kong dollars ($35.86 million) for the first nine months of 2023, an increase from HKD$200 million ($25.61 million) during the same period last year. Part of the loss included HKD$86 million ($11 million) of enterprise deposits stuck on bankrupt cryptocurrency exchange FTX.

At the time FTX went under last November, Leon extended a $14 million personal line of credit to bailout Sinhope customers affected by FTX’s collapse. A full financial report of the company’s operations during the first nine months of 2023 will be published this month, Sinohope said.

On December 11, X-Spot Global, another company owned by Leon Li, won an injunction against Huobi Global for the latter to cease its use of the Chinese-equivalent “Huobi” trademark in Hong Kong.

According to court filings, the Huobi trademark was registered in 2019 in Hong Kong. In September 2022, Huobi Global was sold by co-founders Leon Li and Du Jun to About Capital Management, an entity linked to Chinese blockchain personality Justin Sun. However, the rights to the Chinese-language Huobi trademark had been fully transferred to Leon Li’s X-Spot Global prior to the acquisition, making the entity its trademark owner. Huobi subsequently rebranded to HTX this September.

Huobi co-founder Leon Li (Right).
Huobi Founder Leon Li Meets With Vladamir Putin Advisor Sergey Glazyev (PRNewsfoto/Huobi)

OKX DEX exploited for $2.7 million

Crypto exchange OKX’s decentralized exchange (DEX) suffered a reported $2.7 million hack on December 13 after the private key of the proxy admin owner was allegedly leaked. In a statement, OKX developers said that “was caused by the theft of the management rights of an abandoned OKX DEX market maker contract that is no longer in use” Developers also estimate the loss to be lower than reported by blockchain analytics firms, at $370,000, over 18 addresses.

“Judicial procedures will be initiated to recover relevant losses. The platform will conduct a security self-examination in the future and reorganize all related abandoned contracts to avoid such incidents from happening again. We sincerely apologize for the inconvenience.”

Bitget’s spot trading volume rises 82% amid crypto market thaw

Cryptocurrency Bitget’s spot trading volume increased by 82% in November as part of a wider industry recovery. In its monthly report, the exchange said that its Protection Fund, comprised of 6,500 Bitcoin (BTC) and 120 million Tether (USDT), had surged by $90 million in capital appreciation value compared to when the Fund launched on December 22, 2022. The exchange also onboarded 5,000 new traders last month.

“Additionally, the first week of December witnessed an increased demand for our copy trading in the spot market (launched in January 2023) compared to the first week of November, with a 23% rise in the number of users engaging in copy trading, which attracted 17% more users compared to the entire December of the previous year.”

Zhiyuan Sun

Zhiyuan Sun is a journalist at Cointelegraph focusing on technology-related news. He has several years of experience writing for major financial media outlets such as The Motley Fool, Nasdaq.com and Seeking Alpha.

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Speculation is DeFi’s double-edged sword

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Speculation is DeFi’s double-edged sword

Speculation is DeFi’s double-edged sword

Opinion by: Billy Campana, contract developer, Api3 

Speculation is a cornerstone of price discovery for traditional finance institutions like hedge funds and major banks and plays an essential role in their day-to-day operations. It is the mechanism by which they can establish reliable valuations for everything, ranging from simple stocks and bonds to complex derivatives and structured products. 

While decentralized finance (DeFi) is often criticized for its speculative “casino” nature, this is, in reality, one of its strengths: making practices like arbitrage more accessible to everyone and empowering individuals to participate in opportunities once out of reach

DeFi’s volatility

Critics have highlighted DeFi’s extreme volatility, a concern exemplified by Ether’s (ETH) recent 15% price drop that triggered over $100 million in long position liquidations. These dramatic market movements continually test market resilience and investor confidence in the ecosystem. 

The accusations that DeFi platforms function essentially as gambling venues persist throughout the industry. Such criticisms have gained further traction following several high-profile memecoin crashes that collectively erased over $46 billion in market value, revealing the systemic vulnerabilities that speculative activities can introduce to the broader ecosystem.

Additionally, the recent Bybit hack spotlighted the major security concerns, exposing critical vulnerabilities within DeFi infrastructure and triggering intense scrutiny of the sector’s security protocols. These systemic risks have only escalated institutional skepticism, resulting in increasingly vocal calls for greater transparency and comprehensive regulatory oversight. 

Simultaneously, the media narrative surrounding DeFi remains overwhelmingly focused on its spectacular failures, growing institutional skepticism and persistent market instability. This one-sided portrayal continues challenging DeFi’s credibility as a serious financial ecosystem capable of responsible innovation.

Evening the playing field

Critics consistently miss that DeFi democratizes the same speculative mechanisms that traditional finance has always employed for price discovery. The fundamental difference is that Wall Street gatekeepers no longer control who benefits from these opportunities. 

While traditional finance has historically restricted arbitrage opportunities to institutional players with privileged access, DeFi effectively removes these gatekeepers, allowing anyone with an internet connection to participate in the price discovery process that hedge funds and banks have monopolized for decades.

Smart contracts have revolutionized financial operations that once required privileged access and teams of highly paid professionals. Smart contracts effectively break down the artificial barriers that have systematically kept ordinary people out of sophisticated markets. 

Recent: Bitwise makes first institutional DeFi allocation

Leading financial institutions increasingly recognize this paradigm shift, with established businesses progressively adopting DeFi mechanisms to automate transactions and enhance operational efficiency. Institutional adoption validates speculation as a legitimate financial practice rather than dismissing it as mere gambling.

An arbitrage utopia

This unprecedented democratization manifests concretely in decentralized lending platforms that enable automated market makers (AMMs), enabling anyone to provide liquidity and earn fees previously reserved exclusively for institutional market makers with significant capital reserves. 

With unprecedented data transparency across blockchain networks, even uncollateralized crypto loans can enable capital-efficient arbitrage opportunities spanning multiple blockchain ecosystems without requiring the millions in upfront collateral that traditional finance demands from participants. 

As institutional involvement continues to grow and regulatory frameworks gradually mature, these speculative mechanisms steadily evolve toward the same legitimacy traditional finance instruments enjoy. This evolution reveals that speculation itself was never the problem — the exclusionary access to its benefits was. 

The practical execution of this democratized speculation includes cross-exchange arbitrage through DeFi aggregators, crosschain bridges that naturally equalize asset prices across different blockchains and automated liquidation mechanisms that maintain system solvency. 

All these components serve the same fundamental purpose as traditional financial instruments but with radically expanded access for participants worldwide.

As institutional investors and traditional financial markets return their gaze to the industry, with increased involvement from regulatory bodies and political figures in the US, DeFi must remember its core value proposition. 

The actual value of DeFi is not in recreating the current structures that allow the powerful to benefit from methods that regular people don’t have access to but in making these opaque systems transparent and open to everyone.

Rather than apologizing for speculation, the industry should embrace and refine it as its revolutionary tool — one that brings financial opportunities to billions systematically excluded from traditional markets. 

Innovation in DeFi isn’t just technological; it is also social, creating a financial system where opportunity isn’t determined by privilege but by insight, creativity and willingness to participate. The future belongs not to those who can eliminate speculation but to those who can make it fair, transparent and accessible to all.

Opinion by: Billy Campana, contract developer, Api3

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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MPs to debate emergency legislation to keep British Steel open as ‘security is on the line’

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MPs to debate emergency legislation to keep British Steel open as 'security is on the line'

Sir Keir Starmer has said the government will debate emergency legislation on Saturday to keep the British Steel plant in Scunthorpe open as “our economic and national security is on the line”.

The prime minister added that “the future of British Steel hangs in the balance” and that legislation will be passed tomorrow to allow the government to “take control of the plant and preserve all viable options” for it.

MPs are being summoned back from Easter recess to Westminster to debate draft legislation on the plans, and will sit from 11am on Saturday.

The government had been actively considering nationalising British Steel after Jingye, its Chinese owner in Scunthorpe, cancelled future orders for the iron ore, coal and other raw materials needed to keep the last blast furnaces in the UK running.

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Jingye also rejected a £500m state rescue package in a move which raised fresh doubts about the 3,500 people employed at the Lincolnshire plant – with it feared the site would be forced to close as early as next week.

The steel from the plant is used in the rail network and the construction and automotive industries. Without the plant, Britain would be reliant on imports at a time of trade wars and geopolitical instability.

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In a short statement delivered from Downing Street this evening, Sir Keir said: “I will always act in the national interest to protect British jobs and British workers.

“This afternoon, the future of British Steel hangs in the balance.

“Jobs, investment, growth, our economic and national security are all on the line.”

One of the two blast furnaces at British Steel's Scunthorpe operation
Image:
One of the two blast furnaces at British Steel’s Scunthorpe operation

‘A new era of global instability’

The prime minister added that he has been to the site in Scunthorpe and met the steelworkers there.

He said that he understands how “important steel is” to the “whole country” and continued: “It’s part of our national story, Part of the pride and heritage of this nation.

“And I’ll tell you this, it is essential for our future.

“(The government’s) plan for change means we need more steel, not less. So we will act with urgency… This situation and our response is unique.

“While it is true that we’re facing a new era of global instability, our concerns about this plant and negotiations to protect it have been running for years.”

Sir Keir said parliament will be recalled for a “Saturday sitting” and will “pass emergency legislation” in “one day” to give the business secretary the powers to do “everything possible to stop the closure of these blast furnaces”.

He added: “We will keep all options on the table. Our future is in our hands.”

Chancellor Rachel Reeves posted on X after the statement that the government is “taking action to save British steel production and protect British jobs”.

“We are securing Britain’s future,” she added.

The Lords will also return to parliament for a rare Saturday sitting tomorrow.

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Inside the UK’s last blast furnaces

Tory leader criticises Starmer

Business Secretary Jonathan Reynolds said this evening that the Chinese owner of British steel has left the government with “no choice” but to act.

Jingye had confirmed plans to close the blast furnaces at Scunthorpe immediately despite months of talks and the offer of £500m of co-investment from the UK government, Mr Reynolds added in a statement.

It came as Conservative leader Kemi Badenoch said the government has landed itself in a “steel crisis entirely of their own making”.

“As business secretary, I negotiated a modernisation plan with British Steel to limit job losses and keep the plant running, including introducing an electric arc furnace in Teesside, similar to what we did with Tata at Port Talbot steelworks.

“However, the union-led Labour government have bungled the negotiations, insisting on a Scunthorpe-only deal that the company has deemed unviable. Keir Starmer should have seen this coming. But instead of addressing it earlier in the week when parliament was sitting, their incompetence has led to a last-minute recall of parliament.”

She added the government’s attempts to find a solution to the crisis are inevitably “going to cost taxpayers a lot of money”.

A general view shows British Steel's Scunthorpe plant.
Pic Reuters
Image:
British Steel’s Scunthorpe plant.
Pic Reuters

Meanwhile the Unite union welcomed Sir Keir’s announcement by saying it is “absolutely the right things to do to begin the process of nationalisation”.

The government has not confirmed plans to nationalise the company, but like the prime minister this evening, Chancellor Rachel Reeves said earlier this week that “all options” are on the table.

Unite general secretary Sharon Graham said this evening: “I am pleased that the government has listened to representations by Unite and other steel unions over the future of British Steel.

“Ministers could not have allowed a foundation industry to go under with the loss of more than 3,000 jobs and key skills… Discussions have been positive and whilst a longer-term plan needs to be developed, this gives workers the reprieve we have been asking for.”

‘When it was Wales, they mocked’

The government’s intervention over British Steel comes six months after the last blast furnace was closed at Port Talbot in Wales.

Welsh political party Plaid Cymru has questioned why the government didn’t take similiar action to save that steelworks.

The party’s Westminster leader Liz Saville Roberts MP said: “Parliament is being recalled tomorrow to debate the nationalisation of Scunthorpe steelworks.

“But when global market forces devastated Welsh livelihoods in Port Talbot, Labour dismissed Plaid Cymru’s calls for nationalisation as ‘pipe dreams’.

“In a real emergency, governments step up to defend their strategic interests. Plaid Cymru recognised the importance of Welsh steelmaking. Labour chose to look the other way.

“When it was Wales, they mocked. Now it’s England, they act.

“Labour has taken Wales for granted for far too long – and the people of Wales won’t forget it.”

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Defence secretary warns this is ‘the critical year’ for Ukraine – as £450m in funding allocated

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Defence secretary warns this is 'the critical year' for Ukraine - as £450m in funding allocated

The defence secretary has said that 2025 is “the critical year” for Ukraine as he confirmed £450m in funding for a military support package.

The funding includes £350m from this year’s previously announced pot of £4.5bn in financial support, while the rest of the cash is being provided by Norway via the UK-led International Fund for Ukraine.

The money will fund repairs to and maintenance of UK-provided materials and equipment already given to Ukraine, as well as radar systems, anti-tank mines and hundreds of thousands of drones.

Follow the latest on the war in Ukraine here

It was announced on Friday by Defence Secretary John Healey, who is in Brussels chairing a meeting of the Ukraine Contact Group alongside his German counterpart Boris Pistorius.

The group is an alliance of about 50 countries – all 32 NATO member states, including the US, and about 20 other nations – that has been supporting Ukraine by sending military equipment there since April 2022, a few weeks after Russia launched its full-scale invasion.

John Healey and Germany's Defence Minister Boris Pistorius take part in the Ukraine Defence Contact Group meeting
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John Healey and Germany’s defence minister Boris Pistorius take part in the Ukraine Defence Contact Group meeting

Speaking at the start of the meeting, Mr Healey warned: “2025 is the critical year for the war in Ukraine, and this is the critical moment.

“A moment for our defence industries to step up, and they are; a moment for our militaries to step up, and they are; a moment for our governments to step up, and they are.

“Together, we are sending a signal to Russia and we are saying to Ukraine that we stand with you in the fight and we will stand with you in the peace.”

At a news conference following the talks, Mr Healey told journalists that Ukraine’s allies have agreed to provide a “record boost” €21bn (£18.2bn) in total of military support for Kyiv.

The German defence minister confirmed that US secretary of defence, Pete Hegseth, attended virtually, while special envoy Steve Witkoff travelled to Moscow, which Mr Pistorius insisted was not a matter of “priorities”, but of “schedules”.

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Healey announces funding for Ukraine

‘Coalition of the willing’ planning continues

The meeting comes one day after the UK defence secretary and his French counterpart Sebastien Lecornu led 30 defence ministers from the “coalition of the willing” in Brussels.

The group, which does not include the US, discussed operational plans on Thursday afternoon for a multinational peacekeeping force in Ukraine.

Rustem Umerov, Tony Radakin, John Healey and Sebastien Lecornu during the Coalition of the Willing meeting in Brussels.
Pic: Reuters
Image:
Rustem Umerov, Tony Radakin, John Healey and Sebastien Lecornu during the Coalition of the Willing meeting in Brussels.
Pic: Reuters

It looked at each nation’s capabilities and how they could be best used to support Ukraine’s long-term defence and security as part of what the Ministry of Defence called a “reassurance force”.

UK and French military chiefs discussed planning with Ukrainian President Volodymyr Zelenskyy and his military chiefs in Kyiv last weekend.

Peace negotiations are ongoing between the US and Russia, however, US officials appear to be growing increasingly impatient with the lack of progress after Donald Trump publicly suggested a month ago that Vladimir Putin wants to end the war.

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Children killed in Russian missile strike

Last Tuesday, the Kremlin described the latest US peace proposal as unacceptable in its current form because it does not solve the “root causes” of the conflict.

Read more:
Two Chinese citizens ‘fighting for Russia’ captured in Ukraine
Zelenskyy makes dig at US over response to Russian attack

Mr Putin wants to dismantle Ukraine as an independent, functioning state and has demanded Kyiv recognise Moscow’s annexation of Crimea and other partly occupied areas and pull its forces out, as well as a pledge for Ukraine to never join NATO and to demilitarise.

US secretary of state Marco Rubio said on Friday that Mr Trump is not “going to fall into the trap of endless negotiations” with Moscow.

Despite the apparent impasse in talks, the coalition of the willing is continuing with its plans for when peace is agreed.

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