Krafton and Naver Z Unveil a Metaverse Joint Venture ‘Overdare’

AEON, a modular payment protocol that aims to standardize and unify crypto payments, has launched a QR code payment system on the BNB Chain, with a view towards expanding crypto payments in Southeast Asia. The project clarified in a press release published on Nov. 11 that its BNB-based QR code payment system has been established in collaboration with Terminus, a payment association project that bridges crypto and real-world transactions through banks, e-wallets and fiat settlement networks. The new service means that merchants can now access AEON’s payment system without having to acquire additional hardware, while crypto payments are settled in fiat currency. AEON believes that the new offering provides greater convenience for users and merchants, while also supporting the BNB Chain ecosystem through the promotion of a seamless payment experience at offline locations throughout the Southeast Asian region.Lara Jameson on PexelsIntegrating with Asian payment networksUsers can now rely on assets such as Bitcoin (BTC), Ethereum (ETH), Tether (USDT), USD Coin (USDC) and Binance Coin (BNB) as a source of funds for payments, which can be made in-store by scanning a QR code via a network of merchants throughout Southeast Asia. Once a transaction is confirmed, funds are converted to fiat currency in real time. The offering minimizes friction for the merchant, making it easy for them to accept crypto as a means of payment. This scan-to-pay feature has now been integrated with national payment networks like VietQR, a money transfer service in Vietnam that enables customers to scan and pay across the mobile apps of the Southeast Asian nation’s banks. Similarly, AEON has integrated with another such service in Thailand known as ThaiQR, which is supported by a number of leading Thai banks.  Connecting Web2 with Web3In an article posted to X last month, Terminus outlined that acting as a “payment association” isn’t just a label but an attempt by the company to take an approach that seeks to connect Web2 with Web3 in a manner previously thought impossible. It believes that it is creating a powerful ecosystem by taking disparate payments providers and joining them together via a cohesive payments association. In bridging Web2 and Web3 Terminus says that it is laying “the groundwork for a future where payments are not only efficient but universally accessible.” Network integrations seem to be key where crypto payment solutions providers are concerned. With that, AEON has been active in bringing about other such integrations beyond this collaboration with Terminus. In September, it entered into a partnership with Singapore’s Alchemy Pay, a crypto-to-fiat payment gateway, with a view towards combining Alchemy’s expertise in payments with AEON’s payments infrastructure and protocol. In October AEON integrated with the TRON layer-1 blockchain network. The collaboration means that decentralized applications within the TRON ecosystem can accept crypto payments over AEON’s payments infrastructure.

Crypto Winter Halves Korean Bank Fee ProfitsLast year, Korean banks collected only half the amount in fees from crypto exchanges compared to the previous year, according to Korean news agency News1.©Pexels/PixabayDeclining bank fee profitsFiles submitted by the Korean Financial Services Commission to Yun Chang-hyun, a member of the ruling People Power Party, revealed that the five major Korean crypto exchanges paid 20.4 billion KRW (~$15.6 million) in fees to banks last year, which is a 49.4% decrease from the previous year’s 40.3 billion KRW (~$30.7 million). These exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) have established agreements with banks to hold real-name bank accounts, which is a legal requirement for exchanges that wish to conduct trades in Korean won.Banks that have provided real-name accounts to crypto exchanges saw an increase in fee profits from 2019 to 2021. However, due to a decline in market sentiment last year, trade volume decreased, resulting in a reduction of bank fees. Last year’s crypto winter is attributable to various factors, including uncertainties in the global economy and collapses of crypto enterprises such as Terraform Labs and FTX.Fees by exchangesIn terms of fees paid to banks by exchanges last year, the largest exchange, Upbit, paid 13.9 billion KRW (~$10.6 million) in fees to Kbank, a mobile banking service provider. Bithumb and Coinone paid 4.9 billion KRW (~$3.7 million) and 989 million KRW (~$750,000) in fees to NH Bank, respectively. It is worth noting that Coinone switched its bank from NH Bank to Kakao Bank last November, paying 72 million KRW (~$55,000) to Kakao Bank in the fourth quarter. Korbit paid 486 million KRW (~$370,000) and 19 million KRW (~$14,500) to Shinhan Bank and Jeonbuk Bank, respectively. Gopax partnered with Jeonbuk Bank to obtain its real-name accounts in April last year.Lawmaker Yun said it was apparent that partnerships were being forged between only a handful of banks and crypto enterprises. Current regulations have to be reviewed to encourage more banks to participate in various blockchain businesses, he added.

Singaporean Regulator Proposes Framework for Digital Money UseThe Monetary Authority of Singapore (MAS) has released a White Paper that outlines proposed standards for the use of digital assets. The aim is to establish a common protocol and conditions for the utilization of these assets.While the paper identifies the potential digital assets bring in streamlining transactions and promoting financial inclusion, it also outlines challenges that need to be addressed before digital money can be successfully implemented.Photo by Pixabay on PexelsPurpose Bound Money (PBM)MAS’s White Paper, which was published on Wednesday, provides requirements to protect the use of digital assets as a medium of exchange and offers a technical overview of Purpose Bound Money (PBM). PBM allows the sender of digital money to specify certain conditions such as validity periods or how the money can be spent.The covered digital monies include central bank digital currencies (CBDCs), tokenized bank deposits, and potentially well-regulated stablecoins, excluding digital assets that it considers volatile such as Bitcoin. These digital monies are generally pegged to real-world currencies, commodities, or financial institutions, making them more stable.MAS highlights that PBMs utilize a common protocol compatible with different ledger technologies and forms of money. This protocol enables money to be directed toward a specific purpose without requiring the money itself to be programmed. It functions as a secure two-layered delivery vehicle, with funds held as collateral in a “wrapper” until specific conditions are met for its release.Standardized formatThe standardized format outlined in the White Paper will allow users to access digital money using their preferred wallet provider. By establishing these standards, the prospects for digital money to become a significant component of the future financial and payments landscape are enhanced. Standardization and regulated use of PBMs can unlock economic value, facilitate efficient and inclusive digital transactions, and provide additional consumer protection.One notable application of PBMs is in protecting online payments, such as e-commerce transactions and prepaid packages. With PBMs, advance payments can be securely held until the service is fulfilled, ensuring that the product or service is delivered before funds are released. This benefits both consumers and merchants, assuring consumers of product delivery and allowing merchants to verify payment before delivering.PBMs can also aid businesses in mitigating risks associated with international trade transactions, ensuring secure and efficient payments while reducing the potential for fraud or non-payment.InteroperabilityTo ensure the safety and usability of digital monies, MAS highlights considerations that will impact PBM implementation. Interoperability across different platforms is crucial to avoid fragmentation and excessive fees. The choice of underlying digital currencies also affects usability and value, with CBDCs, tokenized bank liabilities, and stablecoins offering varying levels of guarantees and regulatory oversight. Additionally, privacy, digital readiness, and the impact on users need to be carefully assessed.MAS acknowledges that the regulatory landscape for digital monies is still evolving globally, which may lead to varying regulatory treatment of PBMs across jurisdictions. It believes that policy considerations should be thought through when designing PBM-based solutions, including decisions regarding issuance, distribution, and conditions for use.