Wiziin Earmarks $500K Pre-Seed Funding for Blockchain Investment

South Korean banks will soon have to be prepared with adequate anti-money laundering (AML) measures when issuing real-name bank accounts to cryptocurrency exchanges, according to a report by local media outlet News1. This requirement is part of the proposed amendment to the enforcement decree of the Financial Transaction Reports Act, with the Korean Financial Services Commission (FSC) issuing a legislative notice about it today. The FSC will be gathering feedback until March 4, prior to the implementation.Photo by Tuan P. on UnsplashAdequate staff and physical facilitiesThe new amendment requires banks supporting virtual asset service providers (VASPs) to employ adequate staff and establish and uphold physical infrastructure to combat money laundering and terrorist financing. Through this revised legislation, the FSC aims for banks to be equipped with the necessary resources to manage risks linked to the provision of real-name bank accounts to VASPs. With the issuance of real-name bank accounts, banks will face ongoing cautionary duties. The FSC plans to offer clearer guidelines to help banks decide whether to continue providing such accounts to VASPs. In its 2024 agenda, the FSC stated its plans to evaluate VASPs' readiness for their responsibilities ahead of the Virtual Asset User Protection Act, set to be implemented in July. Additionally, the regulatory body will develop infrastructure to improve its monitoring of the cryptocurrency market.Intelligence platform focused on financial securityMoreover, the FSC plans to create a specialized intelligence platform focused on financial security. This platform is aimed at enabling proactive responses to cyberattacks and supporting financial institutions in the agile management of risks associated with emerging technologies.

Chinese Central Bank Official Emphasizes Need for Digital Yuan Retail PaymentsA senior official from the People’s Bank of China (PBOC) has underscored the importance of making China’s digital yuan, commonly referred to as the e-CNY, accessible in all retail payment scenarios within China.Photo by Eric Prouzet on UnsplashStreamlining retail e-CNY paymentsThe remarks were delivered by Changchun Mu, Head of the Digital Currency Research Institute, during a trade forum in Beijing. Mu emphasized the need for standardizing QR codes in payment systems, particularly those dominated by giants like WeChat Pay and Alipay.Local media reported on Sunday that the central bank official highlighted that various wallet providers, including WeChat, Alipay, commercial banks with mobile banking apps, and other payment apps associated with e-CNY operations, must remain vigilant about complying with relevant financial regulations and obtaining the necessary licenses. He stressed that the initial step in this process should involve the adoption of the digital yuan as the preferred payment method for all retail transactions.Standardizing QR code paymentsMu explained that in the short term, authorities can start by unifying QR code standards on a technical level to achieve barcode interoperability. In the long run, he suggested that they will steadily implement the upgrade of payment tools.The move towards standardizing QR code payments aligns with the central bank’s commitment from the previous year to promote universal QR payment codes. This initiative aims to allow consumers to make payments by scanning a unified barcode. Currently, QR code payment systems are widely prevalent in China, with WeChat Pay and Alipay being dominant players.The PBOC has been actively testing the e-CNY, having introduced a pilot app in January 2022. The digital yuan pilot programs, initiated in late 2019, have expanded to encompass at least 26 locations across 17 provincial-level cities and regions, including major cities like Beijing, Shanghai, Shenzhen, and Suzhou, according to state media Xinhua.The extent of China’s promotion of its digital yuan has been unmatched despite the fact that most central banks globally have had ongoing central bank digital currency-related (CBDC) projects open for a number of years already.Recent months have seen the launch of a whole host of initiatives to further the use of the CBDC. These initiatives have included integration of the currency into the education system in Jiangsu province, the installation of digital yuan ATMs in Hainan, among many other such projects, and paying state employees with the currency in Changshu. That said, despite these efforts, widespread adoption of the e-CNY remains a work in progress.Bringing about e-CNY integrationMu also emphasized that the existing interbank payment and settlement systems function effectively, indicating that there is no immediate need to replace them with the CBDC system. Instead, he suggested that seamless integration could be achieved by ensuring comprehensive interoperability between the e-CNY and existing electronic payment tools and commercial bank deposit systems.Moreover, at a wholesale level, Mu proposed the use of the digital yuan for settlement within the financial market infrastructure. Smart contracts could also be leveraged for such activities, thereby enhancing efficiency in wholesale payments.Mu’s remarks underscore the Chinese central bank’s determination in advancing the development and adoption of the digital yuan while ensuring it remains integrated into the existing financial ecosystem.

Amid the ongoing cryptocurrency market slowdown, a South Korean analyst said a rebound will hinge on effective policy measures and sustainable business models.Photo by Kanchanara on UnsplashAnalyst urges policy and profitabilityAccording to an analysis by iM Securities researcher Yang Hyun-kyung, cited by local outlet Etoday, the current downturn stems from several factors: a liquidity crunch in short-term funding markets, a strengthening U.S. dollar, rising risk aversion, and a prevailing narrative of a cyclical correction. Yang noted that a strong dollar typically drains market momentum, as tighter global liquidity prompts investors to deleverage and reduce exposure to risk assets. He added that growing uncertainty over potential U.S. rate cuts in December has further fueled risk aversion among institutional investors, putting selling pressure on both major cryptocurrencies and altcoins. While the expected resolution of the U.S. government shutdown may create a more favorable environment for a modest technical rebound, Yang argued that the crypto sector still needs to develop profitable business models and gain growth momentum through supportive policy measures. Brokerage frames crypto as diversifierDespite the current headwinds, another Korean brokerage firm released a quarterly report framing digital tokens as an emerging alternative asset class. According to Etoday, Hanwha Investment & Securities CEO Jang Byung-ho wrote in the report that the primary goal of retail investment is to preserve purchasing power. He drew a parallel to the U.S. market in the 1980s, when bond investors would have seen their returns erode had they failed to recognize equities as a viable investment vehicle. Citing that lesson, Jang suggested investors consider digital assets as a new pillar for portfolio diversification. Diverging approaches from global central banksThese evolving viewpoints on crypto come against a complex global macroeconomic backdrop. From one perspective, the People’s Bank of China (PBOC) has begun quantitative easing (QE). Otavio Costa, a macro strategist at Crescat Capital, shared a chart on X showing that the value of the PBOC’s balance sheet assets is on track to surpass that of the U.S. Federal Reserve. Costa predicted the Fed would soon follow suit, stressing that investors are underexposed to hard assets. This potential easing contrasts with speculation that the Bank of Japan (BOJ) may raise interest rates next month. One BOJ board member noted at a recent policy meeting that most conditions for a hike have already been met and added that a move is likely once wage negotiations scheduled for spring point to sustained pay growth, as long as the global economy avoids major disruptions. These diverging policy directions have mixed implications for the crypto market. Typically, dovish measures like QE are seen as supportive, as increased liquidity tends to boost risk appetite. Rate hikes, by contrast, withdraw liquidity from the system, limiting the upside for risk assets like digital tokens. As economic conditions evolve and the industry adapts, investors will be watching closely to see how these shifts shape the market’s next moves.