Bank of Korea Explores Jeju, Busan, and Incheon for Citizen-Centric CBDC Pilot Test

Despite Bitcoin’s recent decline, a South Korean analyst says investors’ trust in the market remains intact. He added that a U.S. crypto market structure bill, which Congress could approve as early as December, may give investors a chance to buy the dip ahead of a potential rebound. According to Etoday, Hong Sung-wook of NH Investment & Securities, one of South Korea’s major brokerage firms, noted that the crypto market has given back all gains made since mid-October, with Bitcoin briefly slipping below $100,000. Most altcoins also saw steep declines, erasing the advances they posted following roughly $19 billion in liquidations around Oct. 10. In this environment, Solana’s year-to-date performance has turned negative despite the recent launch of spot Solana ETFs in Hong Kong and the U.S., while Ethereum has similarly surrendered its earlier gains.Photo by Michael Förtsch on UnsplashContext from past declinesHong framed the latest pullback in a historical context. Since 2018, Bitcoin has recorded a daily closing price drop of more than 20% on seven occasions. The latest decline of about 21% from peak to trough, he said, is broadly in line with previous downturns. He added that Bitcoin is now less likely to experience the extreme volatility seen in earlier years, citing growing institutional participation and its increasing use in so-called “debasement trades,” or hedges against fiat currency inflation. Building on this, Hong attributed the recent weakness primarily to the liquidation wave and the temporary hit to sentiment. However, he argued that confidence could recover faster than in past stress events, emphasizing that trust in the market has not been fundamentally damaged, unlike in prior downturns triggered by unexpected “black swan” shocks. Policy progress could lift market moodIn the near term, Hong pointed to progress on the U.S. crypto market structure bill as a potential catalyst. Further movement on the bill, he said, could help improve sentiment, similar to the supportive reaction seen around the passage of the stablecoin GENIUS Act. Other market observers have expressed a comparable view on Bitcoin’s outlook. BeInCrypto underscored three key factors supporting its stance in an analysis published on FXStreet. First, citing Glassnode’s Accumulation Trend Score, it noted that Bitcoin has managed to hold above the $100,000 level thanks to a balance between whale sell-offs and continued accumulation by other investors. Second, expectations for U.S. interest rate cuts projected for December are seen as another supportive element. Third, Bitcoin continues to trade above its 50-week moving average (WMA), a technical level that has underpinned the market since BTC moved above it in 2023; even when brief sell-offs have pushed prices below this line, buyers have stepped in to restore it by the weekly close. Warning signs of weakening momentumAt the same time, signals of moderating momentum have emerged. Another BeInCrypto report pointed to CryptoQuant’s Bitcoin Bull Score, an on-chain metric that gauges the asset’s upside potential, which fell to zero on Nov. 6, its lowest level since January 2022, just before the market entered its last major bearish phase. This more cautious tone is reflected in institutional forecasts as well. Crypto financial services firm Galaxy Digital last week lowered its year-end price target for Bitcoin from $185,000 to $120,000. The firm cited heavy whale sell-offs, shifting investor focus toward AI, gold, and stablecoins, and the weak performance of Bitcoin-focused digital asset treasury (DAT) companies as key reasons for its downgrade. Even so, Galaxy Digital said it continues to view Bitcoin as a structurally strong asset.From a longer-term perspective, some high-profile experts have also trimmed their expectations. According to Decrypt, Ark Invest CEO Cathie Wood told CNBC she now sees Bitcoin reaching about $1.2 million in a bullish scenario by 2030, down from her previous $1.5 million target. She attributed the revision mainly to the rapid growth of stablecoins, which are expanding faster than Bitcoin and emerging as a new payment method, a trend she suggested could dilute some of Bitcoin’s potential price momentum over time.

Blockchain Firm NEOPLY Rebrands as Neowiz Partners to Focus on InvestmentNeowiz Holdings, a South Korean investment holding company, announced today that its blockchain subsidiary NEOPLY held an extraordinary general meeting of shareholders and rebranded itself as Neowiz Partners, according to local news outlet News1. Upon this name change, the company will participate as a liquidity provider in the industry through strategic partnerships with investment firms such as venture capital firms and private equity funds.Photo by Precondo CA on UnsplashAbu Dhabi’s supportEarlier, it was revealed that Neowiz Partners became a part of the Innovation Programme offered by the Abu Dhabi Investment Office (ADIO) in the United Arab Emirates (UAE). This program offers incentives to various businesses operating in high-growth areas like financial services and technology.Diverse portfolioUnder its new name, Neowiz Partners aims to build a diverse portfolio of investments in promising companies committed to emerging technologies such as artificial intelligence (AI) and robotics. This strategic move is intended to foster future growth and seize the potential offered by these innovative sectors.Neowiz Partners’ global headquarters, known as H-Lab, located in the Abu Dhabi Global Market (ADGM), will oversee investment and management related to its blockchain businesses. Meanwhile, the operations of these blockchain projects will continue to be managed by NEOPIN, a subsidiary of H-Lab and a CeDeFi protocol that operates as a one-stop solution for those seeking a non-custodial wallet.Earlier reports highlighted NEOPIN’s achievement in launching Korea’s first liquid staking products for ETH. This approach enables users to deposit their cryptocurrencies into a staking pool and receive liquidity provider tokens in return. These tokens can then be deposited again to generate additional yields.On the occasion of this renaming, Neowiz Partners will establish itself as a dedicated investment company, while H-Lab will concentrate on serving the blockchain industry and associated ventures.

Terraform Labs civil trial proceeds with confidential filingsSingaporean blockchain development firm Terraform Labs, the creator of the failed Terra blockchain protocol, has reached an agreement on a protective order in their ongoing civil case with the United States’ Securities and Exchange Commission (SEC).Photo by Thomas Habr on UnsplashData shielded from public disclosureThe decision, sanctioned by the U.S. District Court Judge Jed Rakoff in the Southern District of New York on Wednesday, ensures that materials marked as confidential by the involved parties will remain shielded from public disclosure. The court is obligated to seal any discovery filings labeled confidential ahead of the trial.Judge Rakoff conveyed his likelihood of denying requests to unseal these confidential documents, although the order did not delve into the specific rationale for maintaining their confidential status beyond citing “good cause.” The finalized agreement on this protective order took place on Dec. 18, with legal representatives from both the SEC and Terraform Labs, including co-founder Do Kwon, giving their consent. Kwon, presently detained in Montenegro, faces potential extradition to the United States or South Korea.Pivotal momentThe depegging of Terraform’s stablecoin TerraUSD (UST) from the U.S. dollar marked a turning point in the cryptocurrency sector. This event is believed to have significantly contributed to the crypto market downturn in 2022, as it had a knock-on effect on countless other crypto businesses and platforms that were over-exposed to the flawed algorithmic currency.That chain of events led to the SEC taking action after the fact. However, it has subsequently also pursued a much criticized “regulation by enforcement” policy relative to the crypto sector. To that end, the Commission has pending cases against Coinbase, Ripple, Kraken and Binance, among others.In February, the SEC accused Terraform Labs and Do Kwon of conducting a multi-billion dollar crypto asset securities fraud by offering and selling unregistered securities. As proceedings have unfolded, both Terraform and the SEC have traded unsuccessful attempts to obtain summary judgment.Far-reaching consequencesThe ongoing SEC vs. Terraform civil case carries potential far-reaching consequences in terms of legal precedents within the cryptocurrency sector. In a separate ruling in August, the court allowed Terra to issue subpoenas to FTX entities as part of FTX’s bankruptcy proceedings. Judge Rakoff, in November, accepted confidential materials from Jump Crypto Holdings for discovery in this case.Troubled crypto lender Genesis Trading has also been tangled up in the proceedings with the courts directing it to comply with a subpoena initiated by Terraform Labs. The outcome of this case is poised to offer essential legal guidance for numerous companies operating in the crypto space.The SEC’s regulatory approach toward cryptocurrency firms in the United States has been subject to considerable debate and criticism. The commission’s alleged “regulation by enforcement” strategy, especially in dealings with major players in the crypto industry, has drawn accusations.While many in the U.S. have been unhappy with “regulation by enforcement,” the upside is that over the longer haul, the courts will be able to eventually furnish the regulatory clarity that the SEC refuses to provide. The ongoing scrutiny of regulatory approaches and the outcomes of cases like Terraform Labs vs. SEC will undoubtedly shape the future legal landscape of the cryptocurrency industry.