Korea Blockchain Week to Expand Online Next Year

Klaytn Foundation partners with CoinMarketCap to support Web3 startups and developersThe Klaytn Foundation, South Korean conglomerate Kakao’s Layer 1 public blockchain, announced on Monday (local time) that it has been selected to be one of the official partners of CoinMarketCap Labs (CMC Labs), a Web3 startup accelerator program operated by the crypto information platform CoinMarketCap.Photo by Shubham Dhage on UnsplashEmpowering buildersThe CMC Labs program offers builders an array of benefits that serve to promote their projects, boost discoverability, communicate with users, and more. This includes the “Learn and Earn” campaign, where startup owners can attract users through a system that distributes token rewards after engaging in educational content. The Airdrop Campaign, on the other hand, helps participants keep up to date on a startup project’s important developments, such as price movements. Startups can also promote their projects through a long-form article or YouTube video published on the CMC Deep Dive platform.Fostering the growth of dAppsCoinMarketCap, in turn, has agreed to be a partner in the Ignite On Klaytn (IOK) Program — a program run by the Klaytn Foundation to support promising developers both in Korea and abroad in their endeavors to bring their decentralized apps (dApps) to the Web3 market, thus cultivating the Klaytn ecosystem. Developers stand to benefit because they can concentrate their efforts on product development, while the program provides support for other crucial aspects like wallets, API nodes and development outsourcing.Through this latest collaboration with CoinMarketCap, the Klaytn Foundation plans to assist various projects in their entry into the global market. It also aims to play a bridging role, enabling more projects within the Klaytn ecosystem to participate in the CMC Labs program.“We are looking forward to the mutual participation of Klaytn Foundation and CoinMarketCap in our respective programs, which is expected to provide momentum to Klaytn’s ongoing efforts to expand its reach into Asia and global markets,” explained Seo Sang-min, Representative Director at the Klaytn Foundation.

The Financial Services Regulatory Authority (FSRA), a regulatory body within the Abu Dhabi Global Market (ADGM) economic free zone and financial center in the United Arab Emirates (UAE), has fully approved USD₮, the world’s leading U.S. dollar stablecoin by market cap, as an accepted virtual asset (AVA).Photo by DrawKit Illustrations on UnsplashPre-approved USDT servicesUSDT issuer Tether publicized details of the approval via a statement published to its website on Dec. 10. The company outlined that the approval means that “Authorised Persons” operating and licensed by the FSRA can offer pre-approved services related to USDT. The company stated that the approval facilitates the integration of USDT into regulated financial ecosystems in Abu Dhabi while also claiming that the move helps to advance the region’s leadership relative to digital asset innovation. The FSRA has acknowledged acceptance of the leading stablecoin with recognition of its issuance on various blockchains including Ethereum, Solana and Avalanche. Validating the importance of stablecoins With the ADGM regulator now fully accepting and recognizing the stablecoin, Tether CEO Paolo Ardoino said that the move goes beyond just “validating the importance of stablecoins as critical tools for modern finance,” as he believes it opens the door for collaboration and growth across the Middle East. Stablecoins are increasingly playing a significant role in bridging the gap between traditional finance (TradFi) and the Web3 sector. In October, crypto asset fund manager Bitwise identified a number of key insights that point to the ongoing development and use of stablecoins.  It outlined that the top five stablecoin projects are currently holding more U.S. Treasury bonds than some G20 countries. Tether recorded profits last year that surpassed those of BlackRock, the world’s largest asset manager. Bitwise identified that leading payments firms like Visa are adopting stablecoins and incorporating them into their platforms for the purpose of effecting transactions. A month prior to that, Wall Street investment bank Bernstein highlighted the fact that stablecoins are playing an increasingly important role relative to the global financial system as a whole.  It’s thought that this latest development in Abu Dhabi may act as a further driver of USDT’s market cap. At the time of writing, the stablecoin asset had a market cap in excess of $140 billion. Its inclusion as an AVA reinforces the crypto asset’s position as the most used stablecoin within the industry. AE Coin licensing In a further boost for further roll-out of stablecoins in the Middle East, the Central Bank of the UAE (CBUAE) awarded the final license to fully approve AE Coin, a UAE dirham-denominated stablecoin. Commenting on the development, AE Coin General Manager Ramez Rafeek said, "AE Coin harnesses the speed and efficiency of blockchain technology, offering instant, secure, and cost-effective transactions. It simplifies transfers, making them faster and more seamless." In an effort to bring about greater adoption of the stablecoin, the AE Coin project intends to engage in partnerships with payment gateways, financial institutions and technology providers going forward. Tether also has plans to launch a dirham-backed stablecoin, having recently partnered with UAE-based entities to bring that about.

South Korea's Democratic Party of Korea (DPK) plans to introduce a bill this week aimed at establishing a legal framework for digital assets, according to Edaily. The move is part of the party's ongoing efforts to advance its crypto policy agenda ahead of the upcoming presidential election. The proposed law would define the legal status of digital assets and set rules for their issuance, distribution and listing. The bill is expected to keep the requirement for Korean won-pegged stablecoin issuers to obtain authorization with a minimum reserve of 5 billion won ($3.58 million), a key point of debate.Photo by Brady Bellini on UnsplashA DPK official stated that the bill has been drafted and is set to be introduced to the National Assembly this week, following feedback from internal subcommittees. Most of the provisions remain consistent with last month’s draft, but final comments are still being collected on stablecoin reserve requirements, which have been a major point of discussion. Defining digital assetsThe bill defines digital assets as "electronic records with economic value based on blockchain technology" and establishes a regulatory framework for issuers, exchanges and custodians. Key provisions include permitting initial coin offerings (ICOs) and creating a digital asset committee under the Financial Services Commission (FSC). This committee would oversee legal framework design, market monitoring, and policy promotion. Additionally, an industry association will establish a separate committee to oversee token listing practices, ensuring consistent listing standards across exchanges. The most contentious part of the draft has been the regulations for won-based stablecoins. It classifies stablecoins as digital assets akin to fiat currency, requiring a minimum reserve of 5 billion won and authorization from the FSC. It also mandates real-time reserve disclosures, secure asset custody and quarterly reporting. Divide over stablecoin reserve requirementOpinions on the reserve requirement are divided. Some industry insiders argue that the 5 billion won threshold is too high, creating a barrier for startups. Others believe a minimum capital requirement is necessary due to stablecoins' role in payments and their potential as currency substitutes. Lee Jung-yup, president of the Blockchain Law Society, stressed that stablecoins must maintain a basic level of trust, warning that those failing to meet the 5 billion won threshold could become prone to insolvency or fraud. However, Lee acknowledged concerns about the centralized regulatory approach led by financial authorities and the potential for market dominance by large corporations. He suggested exploring the creation of an independent regulatory body for cryptocurrencies, warning that overly strict regulations could stifle domestic digital finance innovation amid growing global competition. Crime surges with market growthWhile regulations continue to evolve, crypto crimes are also rising sharply amid the expanding digital asset market. According to Segye Ilbo, South Korean police arrested about 2,100 individuals for crypto-related offenses last year—17 times more than in 2017, when data collection began. The total losses from such crimes now exceed 1 trillion won ($714 million) annually. Since the election of U.S. President Donald Trump, known for his crypto-friendly stance, Korea's crypto market has experienced rapid growth. This surge has raised concerns about an increase in fraud targeting investors chasing quick profits.