Key Developments in Crypto Markets

1. Seagate Hard Drives Recycled from Chia Farms Raise Concerns

An investigation by German news outlet Heise uncovered a rise in complaints about Seagate hard drives sold as new. Customers claim these drives are used, likely from Chia crypto farms in China. Heise suspects unofficial resellers are behind these sales. Seagate clarified that its official distributors are not involved.

Chia farming, launched in 2021, uses hard drive storage to mine cryptocurrency. The more storage, the higher the rewards. It caused a surge in demand for HDDs and SSDs, especially in China. Chia’s mining process damages SSDs quickly, making HDDs more popular.

However, Chia’s appeal has faded. Its cryptocurrency, XCH, now trades around $13, far below its 2021 peak of $1,645. Complaints about recycled drives are spreading from Germany to Thailand, Australia, and Japan.

2. Japanese Firm Gumi Invests $6.5 Million in Bitcoin

Blockchain gaming company Gumi, listed in Tokyo, has invested 1 billion yen ($6.5 million) in Bitcoin. The firm plans to stake its Bitcoin via Babylon to earn rewards and boost revenue. Gumi aims to use surplus funds for Bitcoin holdings.

Gumi is active in blockchain gaming and launched the game Brave Frontier Versus with Sui Network in 2024. The company’s stock jumped over 40% after the Bitcoin purchase. However, its cryptocurrency Oshi Token showed little change.

Other Japanese companies are also investing in Bitcoin:

Nexon: Holds 1,717 BTC, bought in 2021.
Sony: Launched an Ethereum layer-2 network.
Boyaa Interactive (Hong Kong): Asia’s largest public Bitcoin holder.
Jetking Infotrain (India): Holds 12 BTC.

3. South Korea Plans to Lift Corporate Crypto Restrictions

South Korea’s Financial Services Commission (FSC) announced a roadmap to ease corporate crypto trading rules. The changes will happen in two phases:

First Half of 2025: Law enforcement, charities, universities, and crypto exchanges can open real-name accounts to sell crypto.
Second Half of 2025: A pilot program will let 3,500 listed companies and professional investors open real-name accounts.

South Korea currently blocks corporate accounts due to anti-money laundering laws. Real-name accounts are mandatory for fiat-to-crypto trading. The FSC also formed a crypto committee to explore lifting the ban on crypto exchange-traded funds (ETFs). Although ETFs remain prohibited, industry leaders are pushing for their approval to provide safer options for elderly investors.

4. Coinbase Eyes Return to India

Coinbase is in talks with India’s Financial Intelligence Unit (FIU) for a possible return. The exchange left India after regulators blocked access to the Unified Payments Interface (UPI), the country’s key payment system.

The Indian government is reconsidering its stance on cryptocurrency. New leadership at the Reserve Bank of India (RBI) signals a potential shift from previous anti-crypto policies. Coinbase recently received approval in the UK and is exploring further expansions, with CEO Brian Armstrong meeting officials in the Philippines during the World Economic Forum.

Summary Table of Key Developments:

Development	Country	Key Points
Seagate HDD Scandal	Germany, China, Japan, Australia	Recycled drives from Chia farms resold as new
Gumi Bitcoin Investment	Japan	$6.5M Bitcoin purchase; 40% stock price increase
Korea Crypto Reforms	South Korea	Corporate real-name accounts, potential ETF review
Coinbase Return Talks	India	Possible comeback; regulators reconsider policies