Komainu and Crypto Garage partner to bring about institutional crypto adoption

Upbit Reassures Investors Following False APT Token DepositsFollowing a recent situation where false Aptos (APT) tokens were mistakenly accepted as authentic deposits, Upbit, South Korea’s leading cryptocurrency exchange, has reassured investors that such problems will not recur.Photo by Markus Spiske on UnsplashIrregular Aptos token depositsAn Upbit representative informed local news outlet Digital Asset that the platform had detected irregular deposit activities related to Aptos-based tokens of the same type on September 24. In response, the platform addressed the coding anomalies during the suspension of APT deposits and withdrawals.Software correctionThe representative said that, as the resumption of APT deposits and withdrawals took place at 23:00 KST on September 24 after the software correction, no virtual assets on the exchange, including APT, should face similar issues in the future.Asset monitoringThe official highlighted that the trading platform employs a real-time process that monitors and compares customer assets with on-chain assets, a step that contributed to the mitigation of the fallout from the incident.

Hong Kong Broadens Pilot Program for China’s Digital YuanA senior Hong Kong official announced last week that the Chinese autonomous territory plans to expand its pilot program of the e-CNY, China’s digital yuan, to include additional banks and payment platforms.Photo by Chi Lok TSANG on UnsplashDriving cross-border payment efficiencyThe e-CNY project is China’s ambitious endeavor to bring a digital counterpart to its national currency, the yuan, into mass market, everyday use. The primary objectives of this latest initiative are to enhance the efficiency and convenience of cross-border payments and to bolster greater use of the digital yuan on an international basis.Given Hong Kong’s status as a special administrative region of China and bearing in mind that it is a global financial hub, its role in the e-CNY project is likely to be of paramount importance to the Chinese administration.Hong Kong has been actively involved in the e-CNY project for some time. Previously, the local regulator, the Hong Kong Monetary Authority (HKMA), and the People’s Bank of China (PBOC) jointly explored and tested e-CNY’s feasibility and interoperability in cross-border scenarios.Ongoing collaborationOver the years, these two authorities have conducted numerous technical trials to assess the practicality of implementing the e-CNY. The PBOC initiated e-CNY testing in mainland cities in 2019, followed by cross-border trials involving Hong Kong and Macau. Collaboration between Hong Kong and the mainland relative to the digital yuan was initiated in December 2020 when a pilot program was launched.That program enabled Hong Kong residents to utilize e-CNY wallets for purchases at specified merchants in Shenzhen, aligning at the same time with a separate initiative, the objective of which is to achieve closer economic and social integration between Hong Kong, Macau, and nine cities in Guangdong province.Hong Kong and Mainland China had also partnered on technical testing in 2021 aimed at evaluating the technical feasibility, operational efficiency, regulatory implications, and legal considerations of employing the e-CNY for cross-border trade settlement between the two areas. That testing program is likely to be providing valuable insights, which Chinese authorities can use to expand the e-CNY’s scope and use cases relative to cross-border transactions.Completion of initial testing phaseHong Kong recently successfully concluded the first phase of its e-CNY trial, featuring local banks and the Hong Kong Monetary Authority (HKMA). This phase primarily focused on assessing the technical feasibility of employing the e-CNY for cross-border payments between Hong Kong residents and mainland merchants.What Christopher Hui, Secretary for Hong Kong’s Financial Services and the Treasury, was referring to last week at a fintech event, is effectively the second phase of that overall trial program. This upcoming phase will involve a broader array of banks, payment service providers, and use cases, expanding the scope of e-CNY testing.Taking this latest development into account from the point of view of e-CNY development by the Chinese government, it’s patently obvious from the myriad of initiatives that keep coming week after week that the Chinese authorities are determined to drive the e-CNY towards ever greater real-world use.

One in every two South Koreans has experience investing in cryptocurrency, Herald Business reported, citing a recent survey. The findings from the Korea Financial Consumers Protection Foundation’s (KFCPF) 2025 Virtual Asset User Survey were presented at a financial academic conference in Seoul on Feb. 27. The survey showed that people in their 30s were more likely to have invested in cryptocurrency than any other age group. Participation also rose notably among women and older adults. In particular, the average investment amount among older investors increased by roughly 2.3 times compared with 2023.Photo by Precondo CA on UnsplashCryptocurrencies ranked second among preferred investment vehicles, trailing stocks but ahead of real estate and bonds. About half of crypto investors access exchanges at least three times a week, the survey found. Around 40% have used additional exchange services, including crypto lending. Investors with less than 1 million won ($680) in holdings accounted for 25.3% of respondents. They also accounted for a disproportionately large share of reported financial damages, including losses stemming from exchange bankruptcies or hacks. Many were found to invest without fully understanding the risks involved. Experts urge stronger investor safeguardsLee Jung-min, a researcher at the Korea Financial Consumers Protection Foundation (KFCPF), said there has been a recent increase in debt restructuring applications from investors overwhelmed by interest payments and loans tied to crypto trading. She called for stronger safeguards to curb excessive investment hype and restore market confidence, as well as clearer legal guidelines on how user assets should be returned in cases of exchange failures or hacks. Citing the foundation’s research, Lee said many small-scale investors—particularly those with less than 1 million won ($680) in holdings or those who relied on online trading tip groups—had suffered financial harm. With disputes over small transactions rising, she added that regulators are considering a binding dispute resolution framework for small claims that could eventually be extended to crypto trading. Kim Eun-mi of the Korea Inclusive Finance Agency (KINFA) warned that the crypto market’s high volatility and information gaps pose heightened risks to financially vulnerable groups. She underscored the need for stronger safeguards, similar to those in place for vulnerable borrowers in traditional finance, and added that greater transparency over how policy loan funds are used would help authorities determine whether such programs are being diverted into crypto investments. KINFA CEO Kim Eun-kyung added that while the number of crypto participants has surpassed 10 million, consumer protection measures have not kept pace with the market’s rapid growth. Experts are calling for stronger financial education for older adults with limited knowledge of digital assets and low-income young people. Jung Dae, head of the Korean Academy of Financial Consumers, said 2024 figures from the Seoul Bankruptcy Court show particularly high rates of personal rehabilitation and bankruptcy among people in their 50s and 20s, driven largely by failed post-retirement businesses in the former group and heavy spending on online gaming and crypto investments in the latter. He urged policymakers to pair targeted interventions with rigorous research.  Crypto complaints jumpComplaints related to cryptocurrency surged in South Korea last month, as Bitcoin fell about 45% below its October peak. Cases categorized as “virtual currency” jumped from just 68 in December to 2,054 in February—more than a 30-fold increase—and were 55.5 times higher than a year earlier, according to SBS Biz, citing data released Feb. 27 by the Korea Consumer Agency and the National Council of Consumer Organizations. Analysts said the spike in crypto-related cases was largely linked to a promotional campaign by a trading platform that changed the terms of its API-linked subsidy program midway, triggering a wave of investor inquiries. Meanwhile, a weekly survey of Korean investors conducted by CoinNess and Cratos points to deepening pessimism in the market. Just 10.3% of respondents expect Bitcoin to rise this week, down from 15.5% a week earlier, while 64.2%—up from 52.8%—predict further declines. More than 61% said they feel fearful or extremely fearful, and only 11.2% expressed optimism. Still, despite mounting bearish sentiment and online claims that the crypto boom is over, 60.9% said they see extreme pessimism as a potential buying opportunity.