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Korea’s financial regulator establishes dedicated units for crypto oversightThe Financial Supervisory Service (FSS) of South Korea revealed in a Wednesday (local time) press release that it is introducing new units specifically focused on virtual asset matters. This move is in anticipation of the upcoming implementation of the Virtual Asset User Protection Act scheduled for next July. The establishment of these dedicated organizations is a strategic step towards bolstering the integrity of the crypto market, with the goal of enhancing consumer protection.Photo by Ethan Brooke on UnsplashSupervision and investigation bureausThe newly established units will be known as the Virtual Asset Supervision Bureau and the Virtual Asset Investigation Bureau. These units are being created in response to the burgeoning crypto market.The Supervision Bureau will be responsible for extensive oversight of cryptocurrencies. Its roles will include supervising and inspecting virtual asset service providers (VASPs), monitoring market activities and enhancing policy and regulations in the sector. Additionally, the bureau is tasked with ensuring the effective implementation of these regulations and contributing to the promotion of market stability.The Investigation Bureau, the other key component of the new structure, will concentrate on identifying and addressing market abuse activities in the cryptocurrency sector, specifically targeting unfair trading practices.Until now, the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) has played a leading role in overseeing the crypto sector, primarily due to its responsibility in evaluating applications from VASPs.FSS’s greater role in crypto oversightThe FSS, on the other hand, has maintained a digital asset research team, which has been responsible for supporting virtual asset legislation, along with conducting market analysis and monitoring. However, the latest move is set to the FSS’s role in regulation and oversight within the crypto market.The Supervision Bureau will be under the leadership of Lee Hyun-duk, who currently serves as Head of Financial Investment Examination Department 2. Meanwhile, Moon Jung-ho, the present leader of Audit Oversight Department 1, will take charge of the Inspection Bureau. The process of appointing team members to these bureaus is scheduled to take place in early January.

State-Owned Newspaper to Launch NFT Platform in ChinaChinese government-owned media outlet China Daily, under the guidance of the Publicity Department of the Chinese Communist Party, has allocated a substantial budget of 2.813 million yuan (equivalent to $390,000) for the development of an NFT platform.Photo by Hanson Lu on UnsplashInviting bids from home and abroadThe move will open the door to both domestic and international blockchain technology firms, inviting them to spearhead the creation of the platform. According to a public tendering announcement published last month, the chosen firm must operate on a blockchain mainnet capable of handling over 10,000 transactions per second, ensuring top-notch performance and reliability.One of the platform’s key features will be its user-friendly interface, allowing users to effortlessly upload, display, and manage their digital collections. It will support a wide range of multimedia formats and diverse collection types, making it a versatile hub for creative expression. Additionally, the platform will offer advanced functionalities like pricing, bidding, limited-time offers, and multi-currency settlement to ensure a comprehensive and satisfying user experience.Extending the reach of Chinese cultureThe core objective of the China Daily NFT Platform is to amplify the global influence of Chinese culture by seamlessly blending technology and culture in the metaverse. This ambitious strategy integrates cutting-edge technologies such as virtual reality (VR), augmented reality (AR), mixed reality, blockchain, non-fungible tokens (NFTs), big data, and cloud computing.In an effort to expand the global reach of their digital collections, China Daily intends to collaborate with both domestic and international mainstream NFT platforms. This ambitious plan includes partnerships with well-known foreign platforms such as OpenSea, Rarible, SuperRare, and Foundation. Despite the rigorous regulatory landscape and scrutiny that blockchain entities face in China, this approach aims to make Chinese digital collections more accessible to a global audience.The urgency and importance attached to this project are evident in the tight timeline set by China Daily. The chosen contractor must submit their application by October 17 and complete the development of the platform within three months, highlighting the publication’s commitment to this venture.NFT platform development despite crypto banHowever, it’s important to acknowledge that this initiative unfolds within the backdrop of stringent cryptocurrency regulations in China. Since 2021, although NFTs have not been banned, all forms of cryptocurrency transactions have been prohibited in the country, and blockchain entities operating within China face intense regulatory oversight.In May the Supreme People’s Procuratorate of China issued a warning relative to NFTs on the basis that they have crypto-like properties. However, the agency also acknowledged that NFTs do present a novel application of blockchain technology.Recent events, including the detention of former China Evergrande executives Xia Haijun and Pan Darong for alleged involvement in fraudulent activities, underscore the strict regulatory environment prevailing in China.Within the Chinese autonomous territory of Hong Kong, the South China Morning Post (SCMP) spun out Artifact Labs, an NFT company, following an initial decision in 2021 to launch an NFT standard called artifact.China Daily’s foray into the NFT space demonstrates that some facets of blockchain innovation are being leveraged within China, in this instance with a view towards cultural promotion and global engagement.

Chinese Insurer Founds 2 Crypto Funds in Hong KongChina has been in the headlines lately as the country continues to take a growing interest in cryptocurrencies in spite of a previous clampdown. According to a blog post published last Thursday, a Chinese state-owned insurance company launched two crypto funds, further solidifying the country’s stance on digital assets.©Pexels/Charlie JinChinese crypto resurgenceChinese insurance behemoth, the China Pacific Insurance Company (CPIC) has launched the two cryptocurrency funds in Hong Kong. The funds will be managed by the firm’s asset management unit, CPIC Investment Management, and have been established in conjunction with venture capital and blockchain start-up investment firm, Waterdrip Capital. Furthermore, they will focus on investments in cryptocurrencies and related assets, with a particular emphasis on Bitcoin and Ethereum.Waterdrip was originally founded in Shanghai in 2017, and has previously invested in the Chinese crypto mining sector, together with other blockchain-related projects. The move comes as China continues to make strides towards becoming a leader in the digital currency space. Last year, the country’s central bank announced plans to create its own digital currency, which is currently in the testing phase. The move is seen as a way for China to gain more control over its financial system and reduce its reliance on the US dollar.Hong Kong crypto hubChina’s growing interest in cryptocurrencies has been driven in part by the country’s rapidly growing tech industry. Companies like Tencent and Alibaba are leading the way in digital payments and e-commerce, and many believe that cryptocurrencies will play a key role in the future of online transactions.The launch of these two crypto funds by a state-owned insurance company is just the latest indication of the formative development of Hong Kong as a crypto hub. Its believed that China is treating crypto development in Hong Kong as a manner in which it can determine how digital assets can be utilized subsequently on mainland China.It’s not the first time a state-owned entity has gotten involved in cryptocurrency. Earlier this year, a state-owned company launched two crypto funds in Hong Kong, with a focus on investing in Bitcoin and other digital assets.Previous crypto crackdownDespite China’s growing interest in cryptocurrencies, the country has also taken a tough stance on the industry in the past. In 2017, the Chinese government banned initial coin offerings (ICOs) and shut down local cryptocurrency exchanges. However, it appears that the country’s stance is shifting, with the launch of these two crypto funds serving as a clear indication of China’s growing interest in digital assets.While China’s embrace of cryptocurrencies is seen by many as a positive development for the industry, there are also concerns about the country’s growing influence in the space. With China’s central bank developing its own digital currency, some worry that the country could use it to further extend its financial reach and influence around the world.Despite these concerns, it’s clear that China’s interest in cryptocurrencies is only growing. As the country continues to make strides in the digital currency space, it will be interesting to see how it impacts the global economy and the future of finance.