Internal Dispute Sees Co-Founder Depart 5ire

Cake DeFi Co-Founder Launches Ordzaar Ordinals MarketplaceU-Zyn Chua, Singaporean Co-Founder and CTO of Singapore-based Cake DeFi, has launched Ordzaar, a Bitcoin Ordinals marketplace.In a social media post on Friday, the marketplace described itself as “a decentralized & trustless marketplace for #Bitcoin Ordinals, bridging the gap between trustlessness and true decentralization.” The Ordinals protocol has been enabled due to the SegWit and Taproot upgrades to the bitcoin protocol. It’s a system for numbering satoshis, the smallest denomination of the Bitcoin cryptocurrency. The protocol assigns each satoshi with a serial number, using that number to track them across transactions.By taking this approach, each individual satoshi becomes unique, allowing additional data to be attached to them in a process called inscription. The project has hit the ground running, with its website online and a step by step guide released, instructing new users in how to buy and sell Ordinals on the marketplace.Releasing a press release to publicize the launch, the project pointed out that “the lack of a fully decentralized Ordinals marketplace [poses] a major challenge”, given a backdrop in which Bitcoin Ordinal inscriptions have surged in popularity over the course of recent weeks. Elaborating on that point, the team stated: “There is a growing need for a reliable and secure platform that allows buyers and sellers to transact in a decentralized manner, giving them complete control over their assets, this is where Ordzaar comes in.”Asia Ordinals marketplace firstOrdzaar represents the first ever Bitcoin Ordinals marketplace based within the Asian region. Alongside U-Zyn Chua, the team behind the project implicates three other seasoned crypto-natives with a wealth of experience in crypto, bitcoin, and blockchain. Cake DeFi colleague Naqib Noor assumes the role of Co-Founder and Development Lead. As well as being Co-Founder, Chua is the project’s Lead Researcher.In an effort to showcase the brand new marketplace, the Ordzaar team sponsored and participated in the Bitcoin Ordinals 2023 conference in Miami late last week, with Chua appearing as a speaker at the event. The Co-Founder told Blockhead that:“Ordinals have proven that Bitcoin is more than just a peer-to-peer payment system and has demonstrated a new, high-value use case for the longest-running cryptocurrency. As the industry continues to build and innovate, Ordinals have the potential to unlock even more value on the Bitcoin blockchain, and will lift the entire crypto ecosystem as a whole.”NFTs took on a life all of their own with a market surge, tripling in value to $250 million in 2020. While that largely Ethereum-based market has cooled somewhat since then, it nonetheless continues to broaden and establish itself. Chua believes that Bitcoin-centric Ordinals can take a large slice of that development. “Along with the explosive adoption seen in the traditional ETH NFT market, we expect to see a similar trajectory in the Ordinals space,” he explained.In a tweet published on Saturday, Crypto journalist and investment team member at Seoul-based crypto venture capital firm #Hashed, Joseph Young, referred to changing dynamics within the NFT space, with relative newcomers Blur and Tensor taking on OpenSea and Magic Eden. Not short on confidence, the Ordinals team responded, stating: “And Ordzaar will be dominating decentralized Ordinals and BRC20 trading.” The overarching crypto space continues its progression at pace, and it will be intriguing to see how Ordinals, together with new marketplaces like Ordzaar, perform as the industry trundles forward.Photo by Dmitry Demidko on Unsplash

Korea’s FSS to Collect Public Comments on Financial Statement Guidelines for Virtual Asset EntitiesThe South Korean Financial Supervisory Service (FSS) has revealed a set of exemplary financial statements aimed at clarifying the disclosure requirements of virtual asset-related entities. These guidelines have been designed to align with the Korean version of International Financial Reporting Standards (K-IFRS), which was established by the Korea Accounting Institute (KAI).It was reported earlier this month that the Financial Services Commission (FSC) brought forward these regulations to tackle accounting uncertainties within the blockchain industry.The main goal of these exemplary guidelines is to help entities provide financial statement readers with essential information regarding virtual assets. This includes details about the reserve amount held by virtual asset issuers and information about the virtual assets held by virtual asset service providers (VASPs).Photo by Kelly Sikkema on UnsplashPresentation sessionsTo ensure effective dissemination and understanding of these guidelines, the FSS, KAI, and the Korean Institute of Certified Public Accountants (KICPA) have planned presentation sessions. These sessions will take place from July 26 to August 11, which will involve visits to VASPs, listed companies, and accounting firms. Valuable feedback and suggestions from these stakeholders are anticipated, as the events encourage open two-way communication and welcome participation from anyone interested.Discussion meetingsTo further refine the ideas put forward during the presentation sessions, two separate discussion meetings with experts are scheduled for September and October. The recommendations gathered from the industry will undergo a careful review by experts and be thoughtfully incorporated into the guidelines.The FSS will finalize the guidelines in cooperation with the FSC, and the Securities and Futures Commission under the FSC will review them and give approval for their implementation. This is expected to take place between October and November.The FSC has stated that these exemplary guidelines are currently in their preliminary stage and open to potential changes during the public comment period. Additionally, companies have the flexibility to make necessary adjustments to these practice guidelines to suit their specific needs and requirements.Issuers, holders, exchangesThe exemplary practice guidelines are specifically targeted at three types of entities: virtual asset issuers, virtual asset holders, and virtual asset trading exchanges.For virtual asset issuers, providing essential information about their virtual assets is a key requirement. This information should encompass their business models, accounting policies, obligations (e.g. whitepapers), and the current status of their projects. Such details should be disclosed in the annotations of their financial statements. Furthermore, revenue generated from the sales of virtual assets must be recognized, and any changes to their obligations should be duly noted. Moreover, disclosure of the reserved amount of issued virtual assets and their intended usage plan is mandatory.Companies holding virtual assets must provide information regarding accounting policies, the total value of assets held, the reasons behind their holdings, and any gains or losses incurred. Additionally, holders are obligated to disclose risks associated with virtual assets and their potential impact.Virtual asset trading platforms, such as exchanges, are mandated to disclose not only their own virtual asset holdings but also those held on behalf of their customers. This disclosure should encompass detailed information about their accounting policies, the total value of assets under their custody, associated risks, and the involvement of third-party custodians. In particular, the platforms must indicate whether they treat customer assets under their custody as assets or liabilities and provide a clear rationale for such classification in the annotations of their financial statements.

Korean Financial Authorities to Provide Support for Security Token MarketAmid growing calls for accelerating the growth of the emerging security token (ST) market, the South Korean government is preparing to introduce supportive measures. The security token market is powered by blockchain technology which allows fractional investment in real world assets (RWAs) such as real estate and artwork.Security tokens are digital assets that represent securities generated through a process called security token offering (STO). These tokens, backed by RWAs, can be traded similarly to traditional securities. Investors can use these tokens to obtain shares, voting rights, interest, or profits.Photo by Philip Jang on UnsplashSupport measures for security token IndustryNext month, the Financial Services Commission (FSC) will draw up support measures and policy improvement plans to bolster the nascent security token industry. An FSC representative mentioned that the agency intends to work with the National Assembly to finalize the legislation of security token-related bills by November. Furthermore, the government official said the FSC will actively seek input from industry stakeholders to formulate strategies for enhancing policies designed to promote the growth of the security token market.To align with the national objective titled “The Establishment of Digital Asset Infrastructure and Regulatory Framework,” the FSC revealed regulatory guidelines for security token issuance and distribution in February. These new guidelines are centered around the establishment of institutions responsible for account management and entities engaged in over-the-counter (OTC) trading. Subsequently, in July, lawmaker Yun Chang-hyun, a member of the National Assembly’s National Policy Committee, proposed a bill to amend the Electronic Securities Act and the Capital Markets Act with the aim of ensuring that these Acts are consistent with the new regulatory guidelines.Security token market’s growth potentialWith growing anticipation that the security token market could rival the size of the exchange-traded fund (ETF) stock market, securities firms, banks, and blockchain companies have been eager to carve out a niche for themselves since the start of the year. However, their progress has been hindered by a potentially extended period of higher interest rates in the US and the slow advancement of security token-related legislation. While these organizations tried to explore opportunities through the financial regulatory sandbox, their endeavors proved more or less fruitless. An official from a securities firm voiced concerns over the escalating costs of setting up security token infrastructure, especially with legislative delays.On this matter, the Korea Financial Investment Association (KOFIA) has emphasized the urgent need to pass security token legislation to clear up regulatory ambiguities. They’ve also called for measures to stimulate market growth, such as relaxing regulations related to token issuance and distribution and increasing investment caps.At a seminar hosted by the Korea Capital Market Institute, Ahn Hyuk, Head of the Platform Division at Korea Investment and Securities, highlighted that the rigorous review of security registration applications by the Financial Supervisory Service (FSS) might impede the security token market’s growth. Responding to this, Jang Young-shim, Head of the Corporate Disclosure Department at FSS, said that both the FSC and FSS will carefully listen to industry feedback, addressing a range of topics from regulatory relaxation to investor protection.