As Binance bTokens leads Asia, rumors of BitMart founder fade

BitMart founder is facing user funds questioning, and the tokenized stock market landscape is changing.

BitMart founder Sheldon Xia is facing new public pressure. The exchange's official Chinese X account asked him to explain the user's funds and formulate a verifiable repayment plan. The dispute has escalated amid user withdrawals blocked and some employees allegedly failed to receive final salary or compensation.

At the same time, the tokenized stock market continues to shuffle. Less than two months after its launch, BinancebStocks surpassed xStocks in market capitalisation and became the second largest issuer of tokenized shares. Across the industry, banks and regulators are also actively promoting the construction of the crypto track-from new stablecoin distribution in Hong Kong to mandatory crypto tax filings in Singapore-with other developments focusing on custody operations, tokenization pilots and ongoing legal disputes.

Core Points

· BitMart's official account requires founder Sheldon Xia to provide verifiable asset disclosure and repayment plans, and warns that evidence will continue to be submitted to regulators, law enforcement, lawyers and the media.

· Xia refuted that the allegations were "fabricated rumors" and said it would seek to call police and conduct technical/data forensics after gathering evidence of relevant posts.

·According to Token Terminal data, BinancebStocks overtook xStocks (approximately US$579 million) on August 3 with a market value of approximately US$624 million, becoming the second largest issuer of tokenized shares.

·Singapore finalized rules requiring crypto companies to report user transactions to tax authorities. The relevant regulations for new users will take effect in 2027, while existing users will be implemented later in 2027.

·National Bank of Israel plans to provide Bitcoin, Ethereum and Solana transaction services through Galaxy Digital's platform starting in early 2027.

BitMart asked for clarification of user funds, and Xia hit back.

BitMart's official Chinese X account stated that some users were unable to withdraw funds and claimed that some employees had not yet received final salary or compensation. The account requires Sheldon Xia to explain the whereabouts of user funds within a specified period of time and formulate a repayment plan.

The account also warned that if Xia does not provide verifiable asset disclosure and repayment plans, it will continue to submit supporting evidence to regulators, law enforcement agencies, lawyers and the media. The core message is that exchanges require practical accountability rather than generalizations-especially if user withdrawals are blocked.

Xia responded that the allegations were "fabricated rumors." In response, he said that BitMart had "collected all evidence" and promised to call the police during working hours in the United States, while sending a lawyer's letter seeking technical and data forensics.

Concerns in the BitMart dispute

This back-and-forth debate is not just an open war of words, but also focuses on practical issues of concern to investors: whether funds are traceable, whether withdrawals are really blocked, and whether there is a verifiable repayment mechanism for affected users. Unless there is an independent disclosure or a written plan that can be verified based on on-chain activities, escrow reports, or other evidence, it may be difficult for outsiders to verify the parties 'statements.

Readers should pay attention to two key developments: (1) whether regulatory or law enforcement documents are public; and (2) whether any asset disclosures contain details that can be verified by third parties.

Tokenized stock market: Binance bStocks overtakes xStocks

In another clue to shaping the market infrastructure, Token Terminal data shows that Binance bStocks has surpassed xStocks to become the second largest issuer of tokenized stocks by market capitalisation. According to the data cited, as of August 3, bStocks 'market value reached approximately $624 million, ahead of xStocks' approximately $579 million.

In the same data snapshot, Ondo Finance remains ahead, with a total market capitalization of approximately US$927 million. Still, this ranking change is still worthy of attention because the change happened very quickly-bStocks has been in operation for less than two months.

Rapid growth and ranking changes behind tokenized stocks

The tokenized stock space seems to be developing faster than many early entrants expected. The same Token Terminal data cited in the report showed that a year ago, xStocks led with a market cap of approximately $40.7 million, with a market cap of approximately $37.2 million for Robinhood-related issues, while Ondo was much smaller at approximately $65,000. In contrast, the total market value tracked by Token Terminal has risen sharply from about US$80 million to about US$2.7 billion.

These numbers are critical for investors and traders, as the size of an issuer is often correlated with liquidity expectations, listing stability, and integration with trading platforms. However, market participants should also view the tracked "market value" as an indicator, whose specific value depends on how a particular token is issued, redeemed, and accounted for on-chain-so, as the tokenized asset ecosystem evolves, it is necessary to focus on its methodology.

Advances in banking, stablecoins and regulation

·Israel: Min Bank, one of Israel's largest banks, announced a partnership with Galaxy Digital to allow customers to trade Bitcoin, Ethereum and Solana through its investment platform starting in early 2027. The plan aims to provide buy, hold and sell capabilities for these assets through a dedicated section of the Leumi Trade app, including operations through its mobile banking arm Pepper.

Singapore: Singapore finalized regulations requiring crypto companies to report user transactions to the tax authorities. These regulations incorporate the OECD's Crypto Asset Reporting Framework into domestic law. The regulations for new users will take effect from January 1, 2027, and existing users will need to complete compliance by December 31, 2027.

·Hong Kong: In Hong Kong, HashKey Exchange began testing distribution of HKDAP. HKDAP is a stable currency pegged to the Hong Kong dollar regulated in the region. HashKey Exchange is positioned as an authorized distributor with limited retail channels in the initial stage. As the local stablecoin market develops, the early focus will be on institutional users. The report also mentioned that the Securities and Futures Commission has allegedly identified 65 fraudulent websites posing as HashKey.

Continuing industry friction: Legal litigation and tokenization pilots

Legal and operational uncertainty remains in certain parts of the market. Binance and RedotPay are debating whether a Singapore case related to their nearly US$473 million legal dispute in Hong Kong is coming to an end. RedotPay said it expected Binance to terminate its proceedings in Singapore and seek compensation for legal costs;Binance responded that it would not waive its claim and had notified the court and RedotPay accordingly. In the Hong Kong lawsuit, the core accusation is whether RedotPay used Binance Pay's funds to recharge stablecoin outside of the commercial agreement, thereby diverting more than 470,000 Binance Card users.

At the same time, the tokenization pilot continues. In South Korea, Shinhan Asset Management signed a memorandum of understanding with Plume to jointly develop a proof-of-concept for a koren-denominated tokenized fund. Its explicit goal is to test the overseas use of Korean Won-denominated financial products on the chain, and the ecosystem is currently dominated by dollar-denominated assets.

Looking at these developments, the next signal to watch is whether regulators and agencies can translate the introduction of new rules, banks and stablecoins into clear and verifiable user outcomes-especially when it comes to withdrawal, custody and reporting obligations. For now, BitMart's dispute and rapid changes in tokenized stock market rankings suggest that the industry is entering a stage where accountability and execution capabilities will be as important as the product launch itself.