South Korean Banks Adopt Blockchain for Streamlined Civil Servant Loans

Korbit, one of South Korea’s leading crypto exchanges, has recently conducted an education session on anti-money laundering (AML) for its employees, local tech media outlet ZDNet Korea reported.  Held in the office lounge of Korbit, the session was led by Hwang Seok-jin, an expert in financial crime and anti-money laundering regimes. A professor at the Graduate School of International Information Protection of Dongguk University, he has served as a compliance officer and a consultant at Digital Asset eXchange Alliance (DAXA), a group consisting of five leading cryptocurrency exchanges in South Korea.  Photo by Viacheslav Bublyk on UnsplashEmphasis on the Virtual Asset User Protection Act  Mr. Hwang informed Korbit’s employees about the upcoming Virtual Asset User Protection Act, effective July, highlighting guidelines for investor protection, prohibitions against unfair transactions and the financial regulators’ authority and oversight. The session especially focused on explaining the Virtual Asset User Protection Act, given that the Act would deeply influence many departments of Korbits ranging from the accounting and finance unit handling customer deposits to blockchain-related units responsible for the custody of virtual assets.  Korbit maintains a no-negotiation policy that bars projects from interacting with exchange employees prior to their tokens being listed. This policy enhances the transparency of Korbit’s evaluation process, ensuring that the exchange assesses projects impartially, without third-party influence or external pressures. After listing an asset, Korbit conducts quarterly risk assessments on all crypto assets traded on the platform. Additionally, it plans to adopt a stricter approach to internal controls to enhance customer protection, in line with the upcoming enactment of the Virtual Asset User Protection Act. 

KISA Seeks Partners for Regional Blockchain Innovation Support Center ProjectThe Korea Internet & Security Agency (KISA) announced on Monday (local time) that it is working with the Ministry of Science and ICT to recruit metropolitan local governments to participate in the 2024 Regional Blockchain Technological Innovation Support Center Establishment Project, which seeks to aid the balanced development of the nation’s blockchain industry and the exploration of technology and services.Photo by Shubham Dhage on UnsplashWith the establishment of the support center, KISA plans to seek out blockchain services linked to regional industries and provide support for the development of blockchain technology and services to foster local businesses.Funding opportunities and application processThe metropolitan local governments selected for this project will be able to leverage KRW 1.8 billion (approximately $1.3 million) in government funding as well as regional expenses to pursue activities such as verifying related services and supporting blockchain and service development through incubation, workforce training, investment endorsement and legal consultations.Applications are open to 14 metropolitan local governments nationwide, excluding those in the country’s largest cities, Seoul, Busan and Daegu. Each applicant is required to form a consortium with one local information technology and communication (ICT) organization that the government invested in or funded and submit their applications through the KISA website by December 5 at 4 p.m. KST.Envisioning the future of Korea’s blockchain industryKISA President Lee Won-tae expressed his hopes that the support centers would become central hubs for blockchain technology within regions nationwide, ultimately contributing to regional economic prosperity. “KISA will continue our efforts to promote balanced regional development and nurture the blockchain industry ecosystem,” he said.

Korea’s Most Populated Province to Conduct Survey on Unfair Crypto TradingGyeonggi-do, the most populated South Korean province that encircles the nation’s capital of Seoul, announced today a plan to conduct a survey among its residents later this year to assess their experiences with unfair cryptocurrency trading practices.Photo by mockupbee on UnsplashRising crypto-related complaintsThe decision to conduct this survey was prompted by the increasing number of residents experiencing unfair losses from cryptocurrency investments amid an economic slowdown. Last year, the consumer counseling center in Gyeonggi-do received 448 complaints related to crypto assets, which was more than triple the number in 2020.The objective of the survey, which will run from August to November, is to gather data on residents’ perceptions of crypto assets, their methods of accessing them, the types of investment victims, and the extent of investment losses. To obtain a comprehensive understanding of the current situation, Gyeonggi-do will also analyze complaints from the past three years and establish appropriate response measures.In-depth interviewsIn addition to the survey, Gyeonggi-do plans to conduct in-depth interviews with victims by making visits and phone calls. The provincial government aims to categorize each case into major groups such as illicit pyramid schemes, suspicious investment advice channels, illegitimate fund-raising activities, market manipulations, and fake crypto sales.Legislation in progressMeanwhile, the Virtual Asset User Protection Bill is currently undergoing the legislative process in the National Assembly. Gyeonggi-do is committed to devising appropriate consumer protection policies within its jurisdiction to safeguard residents and prevent further damages until the act becomes effective. Cases of unfair trading practices uncovered during the survey will undergo legal reviews and may result in fines or lawsuits.Heo Seong-cheol, the head of the Fair Economy Division at the Gyeonggi-do government, expressed the province’s dedication to minimizing financial losses incurred by consumers due to criminal activities in the crypto industry. He said the survey will provide valuable insights to the local government, enabling them to gain a comprehensive understanding of the current situation regarding unfair crypto trading practices and take necessary actions.