Seongnam City Hosts Seminar on Industry 4.0 Advancement

Hana Bank to Establish Joint Digital Asset Custody Venture with BitGoSouth Korean commercial bank Hana Bank announced on Tuesday at Impact, the main event of Korea Blockchain Week (KBW) 2023, that it has signed an agreement with US-based digital asset trust company BitGo to undertake a joint venture for digital asset custody services in Korea.Photo by Chris Liverani on UnsplashBitGo’s Korean branch aims to kick off full-fledged operations for the venture in the second half of next year after obtaining Information Security Management System (ISMS) certification and completing registration as a virtual asset service provider (VASP).Fostering transparency and securityThe two entities will collaborate through multiple approaches, such as considering equity investments in the joint venture, working together on BitGo’s security solutions and digital asset custody technology, and leveraging Hana Bank’s expertise in financial services, security, and compliance. The scope of the partnership will expand as time goes on, they said.“By working with a global leader, we will contribute greatly to the enhancement of confidence in the Korean digital asset market as well as consumer protection,” Hana Bank said.BitGo’s ongoing global expansionBitGo has been offering digital asset custody services to institutional clients since 2013, serving over 1,500 institutions in more than 50 countries, including the US, Switzerland, and Germany. It also provides custodial services for over 700 different digital assets, including Bitcoin.“We aim to establish a long-term foundation in the Korean market, in line with the expected growth of the security token market there,” said Mike Belshe, CEO and Co-Founder of BitGo.

Bitcoin's global merchant acceptance witnessed a substantial surge, growing by 174% throughout 2023, with the Philippines proving itself in leading the way within the Asian region.Photo by rc.xyz NFT gallery on UnsplashRegion facing regulatory restrictionsThat’s according to BTC Map, a provider of bitcoin merchant mapping services. The data, derived from BTC Map's open-source mapping data via OpenStreetMap, revealed that the number of venues accepting bitcoin payments surged from 2,207 at the beginning of the year to 6,126 by the year's end. This diverse array of businesses included restaurants, bars, shops and various services. The expansion of bitcoin vendors is a global phenomenon, with concentrations notably observed in Europe, the United States and Latin America. The Philippines stands out in Asia with hundreds of vendors, while regulatory restrictions in East Asia, especially China, have limited adoption. While it's great to see a high level of direct adoption among Filipino merchants, it's easy to understand why this level of adoption hasn’t been matched within Asia’s largest market. China has had a long-standing ban on cryptocurrency trading, mining or its use as a means of payment. Despite the ban, it appears that crypto trading is still alive and well in China, although beneath the surface. With mining too, while the sector shrank considerably once a ban was imposed, there is believed to be a significant ongoing level of bitcoin mining occurring still within China’s borders. However, when it comes to vendors, this is likely to be an activity that is far too visible to the authorities and with that, China’s 1.4 billion citizens are not getting the opportunity to buy goods and services with the world’s leading cryptocurrency. Compounding matters, the Chinese authorities have been working diligently on a myriad of projects to bring about day-to-day retail use of the country’s central bank digital currency, the digital yuan. Those efforts are not likely to be aligned with an accommodation of or tolerance of bitcoin payments. The increase in merchant listings showcased a slight decline from the peak in September, which reached 6,590 merchants. BTC Map's platform allows businesses and users to tag locations accepting bitcoin payments, with the rise in numbers potentially attributed to increased user contributions to the database. This surge in bitcoin adoption globally occurred against the backdrop of the cryptocurrency's price volatility throughout the year. Despite potential limitations in data collection due to its reliance on volunteer contributions, the overall trend indicates a growing acceptance of bitcoin. Ongoing challenges to adoptionA panel of bitcoin leaders at the Plan B conference in October discussed the challenges and opportunities of global bitcoin adoption. Notably, they highlighted the difficulty of onboarding new users and merchants, particularly in diverse cultural contexts. In El Salvador, where bitcoin is legal tender, obstacles persist in convincing merchants to accept bitcoin payments. Geographically, concentrations of bitcoin-accepting vendors were more prevalent in Central and South America, while Africa and Asia demonstrated fewer such establishments. The United States and Europe led in the global count of crypto-friendly merchants. The panel stressed the importance of education in overcoming these challenges, emphasizing the need for user-friendly applications to facilitate mainstream adoption, moving away from complex technologies. As bitcoin continues its global expansion, the industry recognizes the vital role education and user-friendly solutions play in fostering broader acceptance. 

Huobi Aims for Hong Kong License Within 6–12 MonthsAccording to Justin Sun, the founder of layer one blockchain Tron and advisor to Huobi, the cryptocurrency exchange could have obtained a crypto trading license in Hong Kong by the end of the year.Photo by Pixabay on PexelsApplication submissionIn an interview with CoinDesk TV on Friday, Sun revealed that Huobi recently submitted an application to become a virtual asset service provider (VASP) in Hong Kong. While the approval process typically takes up to 18 months, Sun expressed optimism that a decision could be reached within the next six to twelve months.A legacy Chinese cryptocurrency exchange was driven out of the country a few years ago following the implementation of a crypto trading ban, and is now a Seychelles-headquartered company which currently has offices in Singapore, Japan, South Korea, and the United Kingdom.It had been previously understood that at least 10 companies with Chinese founders, including OKX, Bybit, and Huobi, had either announced or were known to be planning to announce their bid for licenses in Hong Kong. Sun’s comments today add clarity to the matter.Sun highlighted that during this grace period, which spans the next 18 months, the specific details of regulations will be developed. This includes guidelines on compliance with customer withdrawals and anti-money laundering requirements. He further explained that with the approval, Huobi Hong Kong will be able to operate, onboard customers, establish banking relationships, and serve its user base effectively.In a strategic move, Huobi relocated its headquarters from Singapore to Hong Kong, driven by the city’s aspirations to become a leading virtual asset hub as early as this summer. The exchange’s decision to establish a presence in Hong Kong positions it favorably to leverage the emerging opportunities in the region.Expectations of more applicantsWhile it’s not entirely clear who else has applied, Sun speculated that five to six other major players could follow suit. Among the potential contenders mentioned were OKX, Gate.io, Bitget, and ByBit. This suggests a potential wave of interest in Hong Kong as a regulatory-friendly jurisdiction for virtual asset trading.When asked about Huobi’s plans to enter the Canadian market and compete with established players like Coinbase and Kraken, Sun made it clear that Huobi has no immediate intentions to operate in Canada. He emphasized the importance of prioritizing friendly jurisdictions, with a specific focus on regions like the Caribbean, Hong Kong, and Japan.Hong Kong’s regulatory approach towards cryptocurrencies and virtual asset service providers has gained attention in recent months. The city’s commitment to establishing a robust framework for digital asset trading and ensuring compliance with international standards has drawn interest from industry players seeking regulatory clarity and stability.As Huobi progresses through the application process and awaits a decision on its VASP license, the outcome will have significant implications not only for the exchange itself but also for the broader crypto ecosystem in Hong Kong. The successful acquisition of a license by Huobi could set a positive precedent, attracting more exchanges to establish a presence in the region and further solidifying Hong Kong’s position as a leading virtual asset hub in Asia.The developments in Hong Kong’s regulatory landscape will be closely monitored by industry participants as they shape the future of virtual asset trading in the city.