Korea’s Content Industry: Thriving Amidst Global Tech Advancements and Ambitious Plans

Coincheck, a subsidiary of Monex Group, a Tokyo-based global financial services firm, has gained U.S. Securities and Exchange Commission (SEC) approval to become the first Japanese crypto exchange to list on the Nasdaq, an American stock exchange.Photo by Denys Nevozhai on UnsplashSPAC mergerThe approval by the U.S. regulator was filed on Nov. 13. The listing has been enabled due to the company’s decision to enter into a merger with a special purpose acquisition company (SPAC), namely Thunder Bridge Capital Partners (TBCP).  A SPAC raises money through an initial public offering (IPO) to either acquire or merge with an existing company. Opting for a SPAC means that Coincheck can forego a lot of the time and expense that would be necessary if it attempted to effect an IPO on its own. Parent company Monex Group published a statement outlining that Coincheck CEO Yuko Seimei had “been diligently preparing for listing its common stock on the Nasdaq Global Market (“Nasdaq”) through a previously announced business combination with Thunder Bridge Capital Partners.” Possible Nasdaq listing on Dec. 10 In a press release issued by TBCP, the company claimed that the proposed merger is anticipated to close on or about Dec. 10, 2024. That eventuality is subject to stockholder approval, Nasdaq approval and specific closing conditions. Consequently, Coincheck’s Nasdaq listing could potentially happen as early as Dec. 10. TBCP is holding a shareholder vote on the merger on Dec. 5. If all conditions are satisfied to pave the way for listing, the company’s stock will be listed using CNCK as the Nasdaq stock ticker. Once the merger and Nasdaq listing have been accomplished, Coincheck will still remain a subsidiary of Monex Group. The merged business will gain access to $237 million, held in trust by TBCP, with Monex retaining an 82% stake in the company. Furthermore, Thunder Bridge CEO Gary Simanson will lead the new company. The $1.25 billion merger had been in the works since 2022, having faced multiple delays on the path towards merger completion and Nasdaq listing. Coincheck finally filed with the SEC to merge back in May. Parent company Monex has other interests in the digital asset sector beyond its involvement with Coincheck. Last December the company acquired a majority stake in 3iQ Digital Holdings, a Canadian crypto asset management company.Monex has just launched a new brand, Monex Web3, comprising of Monex’s Web3 business portfolio. It also offers a Web3 consulting business, using its local know-how to guide Web3 startups in entering the Japanese market. Coincheck has also engaged in partnerships to assist other firms in gaining access to the Japanese market. Earlier this year the leading Japanese crypto exchange partnered with USD Coin (USDC) stablecoin issuer Circle, in an effort to expand USDC access within the local market. In January 2018 the exchange suffered what was at the time the world’s largest ever digital asset theft, losing $534 million in virtual assets in a hack of the platform.

Hong Kong and the UAE Collaborate on Crypto RegulationHong Kong and the United Arab Emirates’ (UAE) central banks have announced a collaboration to work on cryptocurrency regulations and financial technology development. The move is significant insofar as both territories have been making headway in developing global crypto hubs over the course of the past six months.Photo by Nick Fewings on UnsplashStrengthening cooperationFollowing a meeting on Monday, the Hong Kong Monetary Authority (HKMA) and the Central Bank of the UAE published a statement on Tuesday, in which they set out the areas of cooperation between them. They agreed to strengthen cooperation on “virtual asset regulations and developments.”The central banks also expressed their commitment to facilitating discussions on joint fintech development initiatives and the sharing of knowledge through their respective innovation hubs.Financial infrastructureDuring the meeting, the officials highlighted the importance of financial infrastructure and financial market connectivity between the two jurisdictions. The Governor of the Central Bank of the UAE, H.E. Khaled Mohamed Balama, expressed his anticipation for an ongoing and long-term relationship with the HKMA.HKMA’s Chief Executive Eddie Yue echoed this sentiment, emphasizing that both regions share many complementary strengths and mutual interests, which will contribute to the economic benefits of the collaboration.In addition to the meeting, a seminar was organized for senior executives from banks in Hong Kong and the UAE. The seminar covered various topics, including improving cross-border trade settlement and exploring how UAE corporations can leverage Hong Kong’s financial infrastructure platforms to gain access to Asian markets.This collaboration comes at a time when the Securities and Futures Commission (SFC) in Hong Kong is allowing virtual asset service providers (VASPs) to cater to retail investors starting from June 1. Christopher Hui, the Treasury Chief of Hong Kong, emphasized that virtual assets are here to stay and acknowledged the fundamental value they bring. Hui also stressed the importance of regulation to harness the positive elements of cryptocurrencies while mitigating potential risks.Since the announcement of the application process by the SFC, several cryptocurrency exchanges, including CoinEx, Huobi, BitMEX, and OKX, have filed applications to provide dedicated crypto trading services in Hong Kong.FAFT travel ruleThe collaboration between the central banks of Hong Kong and the UAE marks a significant step in the global development of cryptocurrency regulations and fintech innovation. The move is demonstrative of ever improving levels of international cooperation on digital assets worldwide.Both jurisdictions are moving forward with the implementation of the Financial Action Task Force’s (FATF) travel rule. The UAE issued new guidelines in that respect on Tuesday. Hong Kong has gotten a head start in this respect, with the implementation of the travel rule through the introduction of the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill in December 2022.By leveraging their respective strengths and knowledge-sharing efforts, these regions aim to foster a conducive environment for the growth and adoption of digital assets. With increased financial infrastructure connectivity and joint initiatives, both jurisdictions are poised to benefit economically from this collaboration in the long run.

South Korea Launches Blockchain Project to Streamline Public ServicesThe South Korean Ministry of Science and ICT and the Korea Internet and Security Agency (KISA) have launched the 2023 blockchain application project to bolster the domestic industry and adapt to the rapidly evolving global blockchain landscape.Photo by Ping Onganankun on Unsplash$1.6 million projectAs part of the Korean government’s broader strategy to promote the blockchain industry, the project has received a budget of approximately 20.7 billion KRW ($1.6 million). The project participants are focused on exploring blockchain-based services that offer convenience to the public and have the potential to penetrate the global market. The digitization of drivers’ licenses is such a service that has been developed and has simplified the lives of Korean citizens.The project encompasses both the public and private sectors, each undertaking six programs. The public sector programs aim to explore blockchain-based services that the government can provide, while the private sector programs are dedicated to supporting the commercialization of business prototypes developed by companies.Public sector programsThe six public sector programs are the implementation of digital badges for national licenses, the development of an online voting system for residents, the establishment of a remote pension eligibility check system, the enhancement of the electronic authentication system, the streamlining of drone operation applications, and the creation of a performance tracking platform for athletes.For instance, the implementation of digital badges for national licenses will greatly streamline the process for individuals who need to present their licenses to relevant organizations as a means of verifying their credentials. Presently, license holders are required to physically visit issuers or navigate their websites to gather the necessary documentation. However, the introduction of this new technology eliminates the need for this cumbersome process.Private sector programsMeanwhile, the private sector programs focus on developing the following six platforms: the battery life authentication system for electric vehicles (EVs), the oil waste trading platform, the non-fungible token (NFT) issuer for digital identity authentication, the NFT concert ticket system, the fractional investment platform for power plants, and the corporate management planner for environmental, social, and governance (ESG) initiatives.For example, the introduction of a blockchain-based certificate system to assess the remaining life of EV batteries holds significant implications for both car insurance and the trading of used cars. Currently, the lack of comprehensive data to evaluate the exact value of EV batteries poses challenges to the efficient trade of both used cars and batteries. Establishing this certificate platform will not only promote battery recycling but also positively impact the industry as a whole.