Infinite Block Selected For Tech Startup Incubator Program

Busan BDX Consortium named preferred bidder for Digital Asset ExchangeIn the latest development of Busan’s initiatives in the blockchain industry, the Busan BDX Consortium has been named the preferred bidder for the project aimed at setting up and operating the Busan Digital Asset Exchange (BDX).The South Korean port city of Busan organized a bidding competition for the project, whose application deadline was Nov. 28. This competition saw participation from two companies. Following this, a project proposal evaluation committee was recently assembled to review the presentations of these bidders at the Busan International Finance Center (BIFC).The selection of the Busan BDX Consortium as the preferred bidder was made after an evaluation process where 90% of the assessment criteria were qualitative and the remaining 10% were based on quantitative factors. The consortium is led by Itcen, a Seoul-based tech company that specializes in digital transformation.Photo by Pang Yuhao on UnsplashNegotiations and future stepsBusan City will now promptly enter into negotiations with the consortium, with the goal of finalizing its decision before the end of this year. Following the selection, Busan intends to sign a business agreement with the chosen bidder in January to move forward with the project.BDX is a platform designed to use blockchain technology for the digitization and trading of assets linked to Busan’s infrastructure in logistics, culture and finance. It is planned to be a fully private entity, a decision aimed at fostering freedom and creativity in its operations. Meanwhile, the city will offer administrative and financial support in accordance with its local ordinances.Son Seong-eun, who leads the Finance and Start-up Policy Bureau of Busan City, remarked that the development of BDX is set to establish a solid foundation for the blockchain industry and enhance the region’s economic growth. Aiming to establish Busan as a leading global blockchain hub, the city is committed to providing ongoing support for the new digital exchange, Son added.Blockchain to encourage volunteeringBesides the BDX project, Busan is also leading another blockchain initiative. Starting next year, the city will test a blockchain-based platform designed to manage and track volunteer experience points for its residents.The platform being developed by Busan will facilitate the connection between individuals seeking volunteer assistance and those who participate in volunteer activities. Its goal is to foster a virtuous cycle that contributes positively to society, enhancing the efficiency and impact of volunteer efforts within the community.Citizens will be able to accumulate points on the blockchain platform by participating in socially beneficial activities like distributing staple goods and contributing to carbon emission reduction. These points can then be redeemed for various benefits like attending concerts or accessing public parking lots. This endeavor to encourage volunteering is set for a full-scale launch in 2025.

Korea’s FSC Embarks on Developing Regulatory Framework for VASPsThe South Korean Financial Services Commission (FSC) has taken a step towards the development of a virtual asset regulation system by seeking external parties to undertake a research project in this area, according to local news agency News1.Photo by Joshua Miranda on PexelsSecond phaseEarlier this month, the National Assembly passed the Virtual Asset User Protection Bill, aimed at protecting investors and preventing unfair trading practices. This legislative accomplishment, scheduled to go effective in July next year, is referred to as the “first phase” of virtual asset regulations. Building upon this foundation, the FSC has now shifted its focus to the “second phase,” which involves the regulation of virtual asset service providers (VASPs).Regulating VASP operationsOne primary concern regarding VASPs is the potential for conflicts of interest arising from their involvement in the issuance and distribution of virtual assets. In response, the FSC is determined to design a regulatory framework that covers a wide range of virtual assets, including stablecoins, security tokens, and utility tokens.In addition to this, the FSC intends to establish a system that governs advisory and disclosure businesses, which will play a crucial role in disseminating information about asset prices and disclosures.Moreover, the regulatory system will include guidelines for holding parties accountable in case of incidents and for overseeing the operations of VASPs to maintain a safe and fair market environment.The FSC acknowledges the significance of aligning policies with international standards. To achieve this, the commission will conduct an examination of virtual asset regulatory approaches taken by different countries and international organizations. Through this study, the FSC aims to integrate global best practices and approaches into Korea’s own regulatory framework for virtual assets.Once the study is complete, the FSC has to report the result to the National Policy Committee of the National Assembly by July 2024 before the Virtual Asset User Protection Bill goes into effect.

Taiwan has built a prototype platform that potentially could provide for a central bank digital currency (CBDC). In light of that development, there are plans afoot to hold a number of hearings and forums in 2025 relative to CBDC development. In a report cited by local news media, Taiwanese Central Bank Governor Yang Chin-long stated that the development of a CBDC is not an international competition. Yang is not motivated by a desire to be the first to launch a CBDC on the basis that such a thing doesn’t ensure a successful outcome.  At the outset, Taiwan intends to introduce a non-interest bearing CBDC although this may be revised as further development and rollout progress. The system may encompass the use of both anonymous and registered digital wallets, the report suggests.Photo by Timo Volz on UnsplashWholesale CBDCReports last year had disclosed that the retail CBDC prototype supports 20,000 transactions per second. The central bank also plans to develop a wholesale CBDC (wCBDC) proof of concept to support three sets of functionality which it plans to test via a unified ledger, developed with the assistance of Taiwan’s commercial banks.  According to feedback from the office of the Taiwanese parliament’s finance committee provided to The Block, Yang is due to present the report on the current state of progress relative to a CBDC on July 10 at the Legislative Yuan, Taiwan’s parliament. While no projected timeline has been provided for CBDC issuance, Yang emphasized that Taiwan’s CBDC project is a long-term affair. He disclosed that the Central Bank of the Republic of China (Taiwan) will take a three pronged approach to the new digital currency. In the first instance, the wCBDC will be used for for the purpose of interbank settlement relative to tokenized deposits.  In practice, this will mean that when a payee transfers a tokenized deposit to another party, the other party will receive the money instantly. However, in the background, the payee’s bank will need to transfer funds to the second party’s bank. Taiwan’s central bank also plans to trial the settlement of tokenized asset transactions. Settlement of securities in this way is seen as an opportunity to minimize risk when compared with commercially issued stablecoins. Such tests will be similar in nature to the wholesale digital ledger technology (DLT) trials carried out in recent times by the European Union (EU).  Purpose bound money trialLastly, the Republic of China plans to trial purpose bound money (PBM), a concept which covers the middle ground between programmable payments and programmable money. PBM was introduced in a whitepaper in 2023 by the Monetary Authority of Singapore (MAS). It enables the sender to specify certain conditions relative to the digital currency being sent. This may include a validity period and further specification as to how the money can be spent. This development represents the latest installment in an ongoing pipeline of announcements from various central banks with regard to CBDC project milestones. Last month, Qatar’s central bank announced the launch of the first phase of its CBDC project.