Singapore’s FOMO Pay Forges Collaboration With Notabene

Korean Crypto Market’s Healthy Growth Requires Corporate ParticipationA healthy growth of the South Korean virtual asset industry needs the private sector’s investment in cryptocurrencies, a legal scholar argued at a recent international academic conference titled “Digital Financial Transition and International Trends in Commercial Law.”That’s according to a report by local news outlet Edaily. Namgung Ju-hyun, an assistant professor of commercial law at Sungkyunkwan University Law School, attended the two-day event hosted over the last weekend by the Korea Commercial Law Association to point out that the current restrictions on corporate investments in cryptocurrencies have not only increased speculation within the domestic market but have also hampered Korean companies’ endeavors in pursuing blockchain-powered projects.Banks and companiesProfessor Namgung addressed the current situation where Korean commercial banks are withholding real-name bank accounts from firms without specific legal grounds. This practice became common after the Act on Reporting and Using Specified Financial Transaction Information was revised in March 2021. This Act requires virtual asset service providers (VASPs) to adhere to anti-money laundering (AML) regulations; therefore, firms wishing to trade cryptocurrencies with the South Korean currency must have real-name accounts with domestic banks. While the Act doesn’t explicitly restrict issuing such accounts to corporations, banks have shown reluctance to do so.However, in countries like the United States, cryptocurrency trading in the corporate world is thriving. For instance, institutional investors at Coinbase, America’s largest crypto exchange, accounted for over 85% of the total trading volume in the first quarter, a rise from 76% during the same period last year.Photo by JESHOOTS.COM on UnsplashMinor altcoins’ strong presenceProfessor Namgung identified the prevalence of retail investors and their speculative behaviors as the primary issue plaguing the Korean crypto market. A case in point is a relatively large proportion of trades in minor altcoins. As per a report by the Korean Financial Services Commission (FSC), the combined market cap of BTC and ETH accounted for only 33% in the domestic market, a contrast to their 58.2% share in the global market. Namgung underscored that the high trade volumes of volatile crypto assets contribute to the Kimchi premium, a phenomenon where crypto prices in Korea are higher than those in other countries.Namgung also mentioned that Korean companies like Hyundai Motor, Lotte Homeshopping, and Shinsegae, despite promoting projects based on non-fungible tokens (NFTs), face difficulties due to their inability to convert cryptocurrencies to cash on domestic crypto exchanges. In comparison, global companies like Nike are successfully leveraging NFTs for their projects and exploring new business opportunities.Role of financial authoritiesProfessor Namgung urged Korean financial authorities to devise guidelines that encourage corporate participation in the crypto market, eliminating uncertainties. As a step towards risk management, he recommended considering publicly traded companies or established firms of a certain size as initial participants in the crypto market.Input from international scholarsPrior to Professor Namgung’s talk, the international academic conference also featured presentations from foreign scholars, namely Mirella Pellegrini, a professor at LUISS University of Rome; Marco Bodellini, an associate lecturer in banking and financial law at Queen Mary University of London; and Albert H. Choi, a professor of law at the University of Michigan Law School.Professor Pellegrini discussed personalized financial products and investor protection in the digital market from the perspective of the European Union. Dr. Bodellini provided insights into central bank digital currencies (CBDCs) from a policy perspective, while Professor Choi focused on digital transformation and retail shareholder engagement.

Foblgate adds Bithumb Burrito Wallet as newest registrable external walletSouth Korean cryptocurrency exchange Foblgate announced on Tuesday (local time) that it now allows users to register Bithumb Burrito Wallet — a Web3 digital wallet operated by Bithumb subsidiary Rotonda — as one of the external wallets that can be used for managing and trading crypto assets on their Foblgate account.Photo by Shubham’s Web3 on UnsplashRegulatory requirementsIn accordance with the Travel Rule under the Act on Reporting and Using Specified Financial Transaction Information, any given user who wants to transfer cryptocurrencies worth more than KRW 1 million (approximately $775) via a personal wallet must register that wallet beforehand. The Travel Rule refers to the Financial Action Task Force’s (FATF) Recommendation #16, which outlines that VASPs must share certain personal information about customers — including names and account numbers — when facilitating crypto transactions that exceed a certain amount. This is aimed at preventing money laundering and other illicit activities.Broadening external wallet supportFoblgate currently supports a number of other external wallets including MetaMask, Blockchain.com, MyEtherWallet and Klip. With the addition of Burrito Wallet, users now have a wider range of options for storing and trading their assets.“We will continue to support external wallets to enhance user convenience,” said Foblgate CEO Ahn Hyun-joon. “We vow to continue our efforts to meet the various needs of our users and provide a safe and convenient environment for carrying out transactions.”The exchange has published a guide for how to register and authenticate external wallets — including Burrito Wallet — on its official website.

Official Says Hong Kong Should Invest in Web3 EconomyAccording to Hong Kong’s financial secretary, Paul Chan, this is the perfect time for Hong Kong to promote the development of Web3, the next-generation version of the World Wide Web that is decentralized and distributed through the use of blockchain and similar technologies.©Pexels/Tara WinsteadLearning from the dot com boomDespite the recent instability of the virtual assets market and the collapse of some digital asset exchanges, Chan has pointed out that the quality of the real economy has improved since the dotcom bubble burst in 2000, and surviving market players have focused on technological innovation, applications and value creation.In remarks made via a blog post published on Sunday, Chan argues that the development of Web3 is going through the same process. He suggested that the next stage of development would be to focus on developing blockchain technology more deeply to find wider application for it, which would improve existing business models, ultimately benefiting users and improving the quality of the real economy.To accelerate the development of Web3, Chan allocated HK$50 million (US$6.4 million) to the Cyberport business park to organize major international conferences and youth workshops in his latest budget released in February.VASP licensingChan also announced that authorities would introduce a licensing regime for virtual asset service providers (VASPs) in June to ensure appropriate supervision and minimize risks in the innovation and development of Web3. Furthermore, the government is looking into regulating stablecoins or cryptocurrencies with their value pegged to another currency or commodity.According to some local experts, Hong Kong should not delay in pushing Web3 development, and the government should work out clear policies to attract overseas investors and Web3 developers to set up offices in Hong Kong.Working towards a Web3 hubFrancis Fong Po-kiu, honorary president of the Hong Kong Information Technology Federation, told the South China Morning Post that the government could help by building up infrastructure such as data and supercomputing centers to help small and medium-sized enterprises to adopt more advanced technology.Although IT sector veteran Joseph Leung Wai-fung agreed that Hong Kong was lagging Singapore in terms of Web3 development, he suggested that the government should step up efforts to attract overseas investors and Web3 developers by working out clear policies to support them in setting up offices in Hong Kong. He also pointed out that Web3 covers key areas such as artificial intelligence, the Internet of Things, blockchain technology, and metaverse augmented reality, and that every international smart city should explore this area.The recent fluctuations in virtual asset markets and the collapse of some online trading platforms have cast doubts on the future of Web3, but Chan believes that competent market players who survive a “burst bubble” can focus on innovation and make significant strides.The government’s efforts to accelerate the development of Web3 through the allocation of HK$50 million to the Cyberport business park, the introduction of a licensing regime for virtual asset service providers, and the regulation of stablecoins, are steps in the right direction. However, more needs to be done to attract overseas investors and Web3 developers to set up offices in Hong Kong and to build up infrastructure such as data and supercomputing centers to help small and medium-sized enterprises to adopt more advanced technology.