Internal Feud at BitMart Erupts Publicly

A public dispute has broken out at BitMart, where the company's official Chinese-language X account has openly confronted founder Sheldon Xia. The account demanded that Xia clarify the location of user funds and present a plan for repayment.

The post alleged that some customers have been blocked from withdrawing their funds and that certain employees have not been paid their final salaries or compensation. It issued an ultimatum to Xia, threatening to release evidence to regulators, law enforcement, legal representatives, and the media if he fails to provide a verifiable asset disclosure and repayment schedule by a set deadline.

In response, Xia dismissed the allegations as "fabricated rumors" and vowed to take countermeasures. "We have collected full evidence of the content on X, all of which is fabricated rumors," Xia stated. "During daytime US time, we will file a police report and send a lawyer’s letter to X, demanding technical and data forensics."

Binance bStocks Surge in Tokenized Stock Market

In less than two months since their launch, Binance's bStocks have climbed to become the second-largest issuer of tokenized stocks by value, overtaking xStocks.

Data from Token Terminal shows that on August 3, bStocks reached a value of approximately $624 million. This figure surpassed xStocks, which stood at roughly $579 million, but remained behind the market leader, Ondo Finance, valued at about $927 million.

The tokenized stock market has seen a dramatic transformation and expansion over the past year. One year ago, the market was led by xStocks with a value of $40.7 million, followed by Robinhood at $37.2 million, while Ondo's holdings were only about $65,000. The total value tracked by Token Terminal has since ballooned from approximately $80 million to about $2.7 billion.

Developments Across Asian and Middle Eastern Crypto Markets

Japan: Metaplanet Clarifies BTC Transfer, MUFG Plans Blockchain Trial

Simon Gerovich, the CEO of Japanese Bitcoin treasury company Metaplanet, has dispelled rumors that the firm was selling its Bitcoin holdings. The speculation arose after a transfer of 5,014 BTC, worth $322 million, occurred over a 24-hour period last week. "This was a routine custody operation. No Bitcoin was sold, and our holdings remain 43,000 BTC," Gerovich confirmed. Metaplanet is the largest publicly traded Bitcoin treasury firm in Asia and the third-largest globally. According to data from Arkham, the company currently has an unrealized loss of about $1.4 billion.

Separately, four companies under the MUFG umbrella are launching a new proof-of-concept (PoC) to conduct Japanese government bond repo transactions on-chain using the Canton Network. The firms stated that their objectives include enhancing operational efficiency by automating the transaction lifecycle, facilitating real-time intraday settlement 24/7, and improving funding and capital efficiency.

Hong Kong: First Regulated Stablecoin and Ongoing Legal Battles

Anchorpoint Financial, which is led by Standard Chartered, has begun the rollout of HKDAP, the first regulated stablecoin backed by the Hong Kong dollar. As the territory's stablecoin market develops, HashKey Exchange will serve as an authorized distributor, potentially broadening access to the fiat-backed asset. The initial focus will be on institutional clients, with retail access being limited at the outset. In a related development, the Securities and Futures Commission has reportedly flagged 65 fraudulent websites that were impersonating HashKey.

Meanwhile, a disagreement has surfaced between Binance and RedotPay regarding the status of a Singapore court case connected to their larger legal battle in Hong Kong, valued at nearly $473 million. The stablecoin payments card issuer informed Cointelegraph that it anticipates Binance will discontinue the Singapore proceedings, and it plans to seek legal costs. Binance countered this claim, stating that it "is not abandoning its claims and has informed both the court and RedotPay accordingly."

In the preceding Hong Kong court case, the plaintiffs alleged that RedotPay had illegitimately diverted more than 470,000 Binance Card users. The suit claimed RedotPay allowed Binance Pay funds to be used for stablecoin card top-ups in a manner that violated the terms of their commercial agreement. Additionally, RedotPay’s planned U.S. initial public offering has reportedly been postponed while it seeks regulatory approvals.

South Korea: Shinhan to Pilot Tokenized Won Fund

South Korea’s Shinhan Asset Management has entered into a memorandum of understanding (MOU) with Plume, a blockchain network specializing in tokenization. The collaboration aims to develop a proof-of-concept for a tokenized fund denominated in the Korean won. This pilot program is designed to evaluate the viability of using won-denominated financial products in overseas on-chain markets, which have predominantly been built around U.S. dollar-denominated assets.

Singapore: Crypto Tax Reporting Rules Finalized

Singapore has officially finalized new regulations that will mandate crypto companies to report user transactions to the national tax authority. These rules enact the OECD’s Crypto-Asset Reporting Framework into Singapore's domestic law. The regulations will become effective on January 1, 2027, for new users. Existing users will have until December 31, 2027, to comply.

Israel: Bank Leumi to Offer Crypto Trading

In Israel, Bank Leumi is set to be the first local bank to provide cryptocurrency trading services through a partnership with Galaxy Digital. Starting in early 2027, customers will be able to trade Bitcoin, Ether, and Solana via the bank's investment platform. The companies announced on Friday that clients of both Leumi and its mobile banking division, Pepper, will have the ability to purchase, hold, and sell these three cryptocurrencies within a specific section of the Leumi Trade app.