Korean Crypto Exchange Giants Lead Market Expansion With Increased Listings

Busan’s Digital Asset Exchange to Transform the City into a Global Financial HubBusan, the southern port city in South Korea, has unveiled an extensive plan for the creation of the Busan Digital Asset Exchange. The primary aim of this initiative is to establish a blockchain-based exchange that facilitates the trading of a wide range of valuable assets, including raw materials, precious metals, intellectual property rights, and carbon emission rights, all through tokenization.Photo by Joseph Pradipta on UnsplashDecentralized governance modelThis planned exchange will operate under a decentralized governance model, where separate entities will handle depository and settlement, listing assessment, and market monitoring. Such a governance framework is designed to ensure checks and balances and enhance investor protection. Busan is committed to providing both administrative and financial support for the establishment of these entities.The roadmap for this plan was presented yesterday at Busan City Hall by Mayor Park Heong-joon and the Busan Digital Asset Exchange Establishment Promotion Committee.The committee was introduced by the city in December of last year, and since then, it has been crafting specific plans. This committee is led by former lawmaker Kim Sang-min, who is recognized as an expert in blockchain policy.Operator selection processThe legal operator for the exchange is slated to be launched within this year. Starting from the middle of the upcoming month, the city of Busan will initiate an application-based process to find an exchange operator and intends to finalize the selection by November.The operator will be entirely funded through private contributions. Companies possessing blockchain technology and the capability to construct an exchange system will form a consortium to partake in the project and operate the exchange. The city of Busan will support the founding and operation of the exchange in accordance with the ordinance.Diverse asset tokenizationShould everything proceed as planned, the exchange is set to commence operations next year. It will tokenize and support the trading of items that pass through the Port of Busan, including gold, silver, copper, crude oil, and ammonia. Additionally, a marketplace will be developed to trade intellectual property (IP) rights, such as films, and carbon emission rights. Particularly, there are plans to broaden the spectrum of tradable items to include virtual assets and security tokens.In contrast to traditional stock exchanges that utilize home trading systems (HTS), the upcoming digital asset exchange will run on blockchain, which is immune to hacking and forgery. Users can trade their assets directly without intermediaries and benefit from reduced transaction costs.Highlighting blockchain as a pivotal technology in the era of the Fourth Industrial Revolution, Kim Sang-min, the chair of the committee, expressed that Busan will develop its digital asset exchange to set a global standard in the field.Mayor Park resonated with this perspective, emphasizing that in this age of digital transformation, Busan will leverage this opportunity to position itself as a global financial hub.

China introduces identity verification through RealDID on blockchainThe Chinese government, in collaboration with the Blockchain-based Service Network (BSN), has unveiled plans for the introduction of RealDID, a new digital identity service.Integrating blockchain into public systemsThis platform is set to bring blockchain-based digital identity verification processes into broader use, verifying the digital identities of China’s 1.4 billion people. Such an eventuality would represent a pivotal moment in China’s ongoing efforts to integrate advanced technologies into governance and public administration.The platform is being geared to deliver a spectrum of services, encompassing personal real-name confirmation, encrypted personal data protection and certification. Notably, it will enable private logins, establish business identities and offer personal identification certificate services, coupled with information vouchers on personal identity.Photo by Tamara Gak on UnsplashAnonymous online identityA standout feature of RealDID is its provision for Chinese citizens to register and access online portals anonymously through a Decentralized Identity (DID) address. This feature ensures the privacy of transactions and personal data, addressing global concerns over data security. The introduction of RealDID underscores China’s commitment to harmonizing technological advancement while at the same time, preserving the privacy of the individual.Although the specific roll-out date for RealDID across China’s vast population remains undisclosed, the potential impact of this initiative is monumental. The platform is poised to significantly enhance the security and efficiency of identity verification processes, a critical element in the realm of digital transactions and interactions.RealDID is a strategic component of China’s broader technological vision, aimed at solidifying its position as a global leader in emerging technologies. The nation has been actively investing in and regulating emerging innovations such as artificial intelligence, central bank digital currencies (CBDCs) and cryptocurrencies. In tandem with these endeavors, China is actively working to reduce its reliance on foreign semiconductor chips by boosting domestic production.BSN FoundationBSN, operated by China’s National Information Center, has forged partnerships with major tech players like China Mobile and China UnionPay, illustrating the collaborative nature of this national initiative. The network was co-founded by Hong Kong’s Red Date Technology. With the network originating in China, last month, the BSN Foundation was established in Singapore, featuring five global members.These included Blockdaemon; Zeeve, a Los Angeles-based blockchain infrastructure automation platform; TOKO, a Hong Kong-headquartered digital asset creation platform; Germany’s GFT Technologies; and Red Date Technology. The five will act as a governing body for the BSN Spartan Network.The unveiling of RealDID by the Chinese government signifies a significant stride in integrating blockchain technology into everyday governance and public services. Leveraging blockchain’s inherent decentralization and security features, RealDID aims to provide a more secure and efficient method of identity verification while upholding user privacy.This move aligns with the global trend of governments exploring blockchain technology for diverse public services, highlighting China’s interest in spearheading technological innovation. As the global landscape evolves, China’s strides in the realm of blockchain-based identity verification serve as a testament to its ongoing interest in the future of digital governance.

Ripple Expands in Asia-Pacific with Full License to Operate in SingaporeEnterprise blockchain firm Ripple announced on Wednesday (UTC) that it has secured a full license to operate in Singapore, where it has established its Asia-Pacific headquarters since 2017.Photo by Sergio Sala on UnsplashFrom outline to full approval in 4 monthsThis development marks another step in Ripple’s strategic expansion within the Asia-Pacific region, known for its rapidly growing cryptocurrency market. Ripple’s journey to obtaining this full license began less than four months ago when the Monetary Authority of Singapore (MAS) granted it an initial in-principle approval in June. With the newly acquired full license, Ripple is now authorized to offer regulated cryptocurrency payment services in Singapore, a key financial hub in the region.Brad Garlinghouse, the CEO of Ripple, expressed his enthusiasm for the company’s continued growth in Singapore, stating:“We have hired exceptional talent and local leadership, doubling headcount over the past year and plan to continue growing our presence in a progressive jurisdiction like Singapore.”Global expansion strategyThe company also highlighted the fact that over 90% of Ripple’s business occurs outside the United States, making the Asia-Pacific region, and Singapore in particular, a vital part of its global expansion strategy.Monica Long, President of Ripple, explained in a recent interview with CNBC that the Singapore office has seen substantial growth in the past year due to the booming business opportunities in the Asia-Pacific region. This expansion aligns with Singapore’s leadership in crypto regulation in the region. The introduction of the Payment Services Act, which has been in effect since January 2020, has played a large part in that, regulating payment services and crypto services to the public.Singapore’s regulatory framework also includes requirements for crypto service providers to safeguard customer assets in statutory trusts by the end of 2023 and restrictions on facilitating lending or staking of retail customers’ assets. These measures ensure consumer protection and responsible growth in the crypto industry.Praising SingaporeGarlinghouse commended Singapore’s regulatory approach, stating, “Under MAS’ leadership, Singapore has developed into one of the leading fintech and digital asset hubs, striking the balance between innovation, consumer protection and responsible growth.” Ripple’s experience in Singapore differs entirely from the ongoing legal battle it has found itself in in the United States with the Securities and Exchange Commission (SEC).Both Ripple and Coinbase have found themselves embroiled in lawsuits with the regulator in the US. In Ripple’s case, the firm and its founders have been accused of unlawfully selling their native cryptocurrency XRP without registering it with the SEC. However, a landmark ruling in July determined that XRP, as a token, may not necessarily be classified as a security.Long spoke to the contrasting experiences the firm has encountered between the United States and Singapore. Long stated:”Being in Singapore a couple weeks ago felt like night and day compared to the US in terms of open dialogue with regulators, and thus being able to build innovative *and* compliant products.”Ripple, along with Coinbase and several other crypto firms, has criticized the lack of regulatory clarity in the US and has even considered relocating operations due to the SEC’s stringent regulatory stance. Notably, Coinbase also recently announced its successful acquisition of a major payment institution license in Singapore, following its in-principle approval obtained about a year ago.