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Crypto Market Sees Regulatory Crackdown and Security Flaws

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Japan's Financial Services Agency (FSA) has taken steps to prevent excessive capital concentration and market distortion by warning against overseas single-stock leveraged ETF sales.

The agency revised its Q&A guidelines for financial-instruments business, stating that selling such products in Japan is 'inappropriate from a public-interest perspective.'

In other news, five Vietnamese firms have passed the initial assessment to operate as crypto exchanges but still need to meet level-4 information-security requirements and deploy minimum capital of 10 trillion Vietnamese dong (approximately $383 million).

The Shanghai Public Security Bureau has cracked an underground-banking case involving virtual currencies, arresting 19 suspects with case-related funds reaching nearly 20 billion yuan.

A security flaw in the Dubai-based Chinese-focused food-delivery app ComeCome exposed users' crypto assets to theft, with over 50,000 USDT stolen from users starting August 22.

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