Hong Kong and Kazakhstan Pilot SWIFT’s CBDC Solution

South Korea’s crypto market, long known for frenzied retail trading and the Kimchi premium, is losing some of its speculative heat as local demand weakens and regulators tighten their grip on the sector.Photo by Ciaran O'Brien on UnsplashThe shift is showing up in the Kimchi premium, the price gap that once saw crypto assets trade higher on Korean exchanges than overseas. That premium has now turned negative, meaning digital assets are cheaper on Korean platforms than on global exchanges. Retail sentiment has soured alongside it: a weekly CoinNess and Kratos survey found that 58.8% of respondents expect Bitcoin to fall or crash in the coming week, up from 28.6% a week earlier. Only 17.7% expect a price surge, down from 36%, while 23.5% expect sideways trading. Weak market, thin liquidityInvestors blamed the persistent negative premium on several factors. The largest specific cause, cited by 25.4% of respondents, was broader market weakness and liquidity outflows. Another 22.7% said a strong stock market has reduced the appeal of crypto, while 16.5% pointed to limitations of local crypto exchanges. The remaining 35.4% said all of these factors are working together. South Korean exchanges are also becoming late-stage listing venues rather than early platforms. According to IOSG Ventures, Coinbase, Binance Futures, and Bybit often lead early price discovery, while Upbit and Bithumb tend to wait for broader market validation before adding new assets. IOSG found that 85% of Bithumb’s listings came after comparable listings on major global platforms, while Upbit listed assets an average of 28 days after their first overseas debut. The lag reflects lengthy regulatory reviews and a preference for more established projects. Regulation is shifting as well. According to SBS News, the Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) has decided against a proposed blanket reporting rule for crypto transfers above 10 million won, or about $6,500, to foreign virtual asset service providers (VASPs) or personal wallets. Instead, local VASPs must operate their own internal, risk-based anti-money laundering (AML) controls. Police probe Polymarket usersLaw enforcement is also targeting decentralized prediction markets. Local law firm Jonjung reported on a blog post that the Gangwon Provincial Police Agency has launched an investigation into South Korean Polymarket users over possible violations of the country’s gambling laws. Ahn Chang-bo, managing partner at the law office, said police are tracking crypto transaction records to identify and summon users. However, he noted that whether participation in Polymarket violates South Korea’s gambling laws remains unsettled, as prosecutors have not taken a definitive position and courts have yet to rule on the issue. South Korea remains a major crypto market, but the tone has changed. Local demand has weakened, exchanges are slower to list new tokens, and authorities are taking a closer look at both compliance and emerging platforms such as Polymarket. 

EMERGE Group, a leading Southeast Asian marketing technology firm specializing in intellectual property (IP) and gaming partnerships, has forged a strategic alliance with TZ APAC in an effort to drive Web3 gaming relative to the Tezos layer one blockchain. Singapore-based TZ APAC is a Web3 ecosystem builder dedicated to advancing the Web3 ecosystem on the Tezos blockchain by empowering founders, creators and developers. It’s also the Asian adoption entity supported by the Tezos Foundation with a mandate to garner adoption of the Tezos blockchain within the region. EMERGE is also a Singapore-based entity that established itself during the pandemic.Photo by Rodion Kutsaiev on UnsplashPositioning Tezos as preferred gaming blockchainNews of the partnership was publicized recently within "The Baking Sheet," a bulletin published by an independent not-for-profit entity, Tezos Commons. The primary focus of this partnership is to offer marketing solutions and publishing partnership support. EMERGE Group, known for its expertise and influential network, including partnerships with Moonton, Singtel and Shopback, aims to position Tezos as the preferred blockchain platform for the gaming community. Leveraging advertising inventories and critical IPs, EMERGE Group intends to facilitate the seamless onboarding of game studios onto the Tezos blockchain. Tezos, renowned for its open-source blockchain emphasizing upgradability, participation and smart contract safety, joins forces with EMERGE Group, which has previously established strategic alliances with industry leaders like Nvir World and Infinite Loop Media. This partnership is seeking to make an impact within the gaming industry, harnessing the potential of blockchain technology. Jason Lim, responsible for business development (gaming) at TZ APAC, commented on the partnership:“With this collaboration, TZ APAC can now rely on a partner that shares the same goal — to empower the gaming community with the relevant tools, resources, and network to succeed. Builders, gamers, and ecosystem partners can stand to benefit from the marriage of full-suite support provided by TZ APAC and the marketing prowess of EMERGE Group.”  EMERGE Group co-founder and CEO Roy Kek was similarly enthused, stating that the partnership reflected the firm’s expertise in the Web3 gaming space. Bridging Web2 to Web3The collaborative effort is designed to create a bridge between Web2 and Web3 technologies, enhancing the overall gaming experience. By fostering a supportive environment for game developers and capitalizing on Tezos' blockchain capabilities, the partnership aims to deliver a frictionless onboarding experience.  The collaboration between EMERGE Group and TZ APAC signifies a proactive move towards the integration of gaming into the Web3 ecosystem on Tezos. In the past, gaming giant Ubisoft has leaned on Tezos in providing in-game items for some of its gaming titles. The project has partnered with Google Cloud in an effort to enable Google Cloud customers to build Web3 applications on the blockchain. It’s still early days for Web3 gaming and with that, this partnership is seeking to advance gaming development on Tezos.   

Crypto.com Halts Institutional Exchange Service in the USCrypto.com, the Singapore-headquartered cryptocurrency trading platform, has announced the suspension of its institutional exchange service in the United States starting from June 21.Photo by Carl Revell on UnsplashResponding to market conditionsThe decision to halt the service is primarily attributed to limited demand from institutional clients, exacerbated by the challenging market conditions prevailing at present. According to a statement released by Crypto.com, advanced notice was provided to the platform’s institutional users regarding the suspension of the service.However, it is important to note that Crypto.com’s retail mobile application and platform will continue to operate normally in the US. “We recently made a business decision to suspend the institutional offering of the Crypto.com exchange in the US as of 11:59 pm EDT June 21, 2023, due to limited demand from institutions in the US in the current market landscape. Impacted institutional users were given advance notice to support a smooth transition,” the statement clarified.Despite the cessation of institutional services, American retail users can still access CFTC-regulated cryptocurrency derivatives trading offered by Crypto.com. Additionally, the UpDown Options feature remains available, enabling users to open long or short trading positions on the future movements of various cryptocurrencies.Crypto.com has expressed openness to the possibility of relaunching its institutional exchange in the United States in the future, indicating that the suspension is not necessarily permanent.CoinRoute integrationIn more positive news, on Thursday the firm announced that it had entered into a collaboration with smart order routing and trade execution service provider CoinRoute to integrate its service with the platform. Crypto.com Managing Director, Giuseppe Giuliani, said that “the integration aligns perfectly with our mission to accelerate the world’s transition to cryptocurrency by providing institutional-grade solutions that enhance the liquidity environment for cryptocurrencies.”CoinRoute’s algorithmic crypto trading technology is already live on the Crypto.com platform.While Crypto.com adjusts its offerings in the US market, it recently received a major payment institution (MPI) license for digital payment token (DPT) services from the Monetary Authority of Singapore (MAS). This regulatory approval allows Crypto.com to continue providing its services in Singapore.Further evidence that the exchange business continues to find ways to propel itself forward includes its recent move to update its service offering to include the use of artificial intelligence-based technology. Additionally, last month it set out plans to list the euro as a trading option, leveraging the liquidity of the European currency while allowing it to be traded against leading digital assets such as bitcoin, Ethereum, and USDT.The month of June 2023 has been a turbulent one for cryptocurrency exchanges operating in the United States. The Securities and Exchange Commission (SEC) has initiated legal proceedings against both Binance.US and Coinbase, accusing them of various securities laws violations. The actions of the SEC have drawn criticism from the broader cryptocurrency community, as the regulatory crackdown in the US appears to be intensifying nearly eight months after the collapse of Bahamas-based cryptocurrency exchange, FTX.As the cryptocurrency industry continues to navigate evolving regulatory landscapes, market participants are closely observing developments in the US and other jurisdictions, which could have far-reaching implications for the future of digital assets.