Zodia Custody Expands to Hong Kong to Meet Asian Institutional Demand

Korean Game Developers to Benefit from Higher NFT Trading VolumeKorean game companies preparing to launch web 3.0 games are expected to benefit from the higher non-fungible token (NFT) trading volume, according to Korean news outlet Financial News.©Pexels/Tony LitvyakA report from decentralized app analytics platform DappRadar states that the NFT trading volume reached $4.7 billion in the first quarter this year, up 137.04% from the previous quarter. This volume is the highest since the second quarter of 2022.This year’s strong NFT market so far is good news for Korean game developers, which were negatively affected by a slowdown in the crypto industry last year due to various factors, including the Terra USD collapse and the bankruptcy of crypto exchange FTX.In fact, many game and content companies are expanding their ecosystems by tokenizing their game items and intellectual property (IP) rights.NexonOne such example is Nexon, the developer of the massively multiplayer online role-playing game MapleStory. Based on its IP rights, Nexon is creating the MapleStory Universe, an NFT-based blockchain ecosystem. The MapleStory Universe will enable trading of NFTs, which users can obtain while hunting or accomplishing quests. Its first major project, a personal computer game named “MapleStory N,” will be launched to attract gamers worldwide.NetmarbleNetmarble, another Korean game company, will launch Modoo Marble 2: Metaworld on Wednesday for global gamers. The popular mobile board game will be rolled out on the MBX ecosystem operated by Netmarble’s blockchain subsidiary Marblex. Participation in the board game and involvement in the Metaworld would allow users to earn Meta Cash as rewards, which can then be swapped for different virtual assets. The trade of buildings and land within the game would likely be facilitated through the use of NFTs.Com2uS HoldingsCultural content company Com2uS Holdings is also making its own efforts to expand its blockchain ecosystem. Its subsidiary Com2uS Platform recently forged a partnership with animation firm Daewon Media to strengthen its NFT business based on Daewon’s popular IP rights.A game industry official said NFT trading can address issues that caused concerns for gamers who doubted the legitimacy and price of items they traded. The official further elaborated that incorporating elements like NFTs and the metaverse would enhance the gaming experience and excitement for gaming enthusiasts.

Dubai's regulator, the Virtual Asset Regulatory Authority (VARA), has been ahead of the curve by comparison with its peers internationally in getting a crypto regulatory framework in place, and now it's moving to tweak those regulations further. In a press release published via ZAWYA on Sept. 26, VARA announced an update to its crypto regulations which specifically deals with marketing. Its addition of “Marketing Regulations for Virtual Assets and Related Activities 2024” applies to virtual asset service providers (VASPs) operating within the Emirate of Dubai. In tandem with the updated regulations, VARA has published a marketing guidance document to assist VASPs in abiding by the regulations, providing detailed instructions and outlining best practices in terms of the application of appropriate marketing activities. Photo by ZQ Lee on UnsplashMandatory disclaimerOne of the new requirements demanded by the regulator is that marketing content related to digital assets should incorporate a disclaimer outlining to investors that there are financial risks associated with digital assets. To that end, from October 1 onwards, VASPs are required to add the following disclaimer, prominently displayed, within product marketing material: “Virtual assets may lose their value in full or in part and are subject to extreme volatility.” In its guidance documentation, VARA has stipulated that any content which contains contradictory messaging or information provided to users in “small print” is not deemed to be acceptable. The rules apply to both licensed entities and any unlicensed entities that attempt to offer a service within the Emirate of Dubai.  Consumer protectionThe motivation behind the regulatory update is the protection of consumers through the prevention of the dissemination of misleading information. The regulator wants consumers to be well-informed about crypto products, such that they’re aware of both the risks and opportunities associated with digital assets. VARA has set out a schedule of fines, broken down by category, with fines of up to 10 million United Arab Emirates (UAE) dirhams (AED), around $2.7 million, applying for those who do not comply. Commenting on the updated regulations, VARA CEO Matthew White stated: “Our updated marketing regulations and the newly issued guidance document reflect our commitment to maintaining Dubai’s position as a global leader in digital finance. We believe that by providing clear and actionable guidance, we can help VASPs deliver their services responsibly, while fostering greater trust and transparency in the market." The Dubai regulator isn’t the only one to home in on the marketing approach taken by crypto service providers. Since October 2023, the UK Financial Conduct Authority (FCA) has implemented new rules which specifically deal with the marketing of crypto products and services. Many crypto platforms found the new requirements too arduous to follow. Some withdrew from the market while others did so on a temporary basis while working towards becoming compliant. Within the European Union, the Markets in Crypto Assets (MiCA) regulation came into force in June 2023. Those regulations demand that crypto service providers provide information and conduct marketing activities in a clear, fair and non-misleading manner.

Academia, Industry Collaborate on Crypto Accounting Research in KoreaThe Korean Accounting Association (KAA) and Samil PwC, the South Korean member firm of global accounting company PwC, have joined forces to conduct collaborative research on accounting for cryptocurrency assets, according to a report by local news outlet Maeil Business Newspaper.Photo by Pixabay on PexelsCollaborative effortsUnder this newly formed partnership, the KAA’s crypto asset committee will work closely with Samil PwC to explore a wide range of crypto assets, facilitate the development of financial statements pertaining to these assets for businesses, and implement accounting policies that align with the characteristics of cryptocurrencies.Leading the crypto asset committee is Roh Hee-chun from Soongsil University, while Partner Lee Jae-hyeok from Samil PwC will participate in the study. Until 2028, this collaboration is poised to yield insights and findings on crypto asset accounting.First seminarThe committee is set to hold its first seminar on June 27, serving as a platform for knowledge exchange and fostering deeper understanding among industry professionals. Furthermore, the accountants involved anticipate publishing a paper in an academic journal next year.PwC’s Assurance Leader Oh Kee-won emphasized the accounting firm’s commitment to leveraging its extensive resources in order to produce outcomes that positively impact society.Meanwhile, KAA President-elect Kim Gap-soon highlighted the relative novelty of crypto asset accounting, acknowledging that there is much ground to be covered. The association aims to establish a solid foundation that offers optimal guidance in the field of crypto asset accounting.