Blocore Determined to Expand Global Presence in Web3 from Korea and Singapore

Korea to introduce more effective guidelines for crypto listing and delistingThe South Korean cryptocurrency industry is expected to see standardized guidelines for listing and delisting cryptocurrencies on trading platforms by the first half of next year, according to a report by local news outlet ETnews. This move is a response to the current self-regulatory guidelines among cryptocurrency exchanges, which have been found inadequate in effectively managing the listing and delisting of digital currencies.Photo by Mathew Schwartz on UnsplashA dedicated task forceThe Financial Supervisory Service (FSS) in South Korea has reportedly initiated a task force dedicated to creating standardized rules and regulations for cryptocurrency listing and delisting. This team includes both government officials and experts from the private sector.An official from the FSS noted that the task force is aiming to present the final version of the guidelines to the National Assembly before the implementation of the Virtual Asset User Protection Act in July of next year. Operating under the oversight of the financial regulator, these standardized guidelines are expected to enhance their effectiveness and aid crypto businesses in maintaining self-regulation.Frequent listing and delistingThe decision by the Korean financial authorities to formulate these guidelines was prompted by the frequent listing and delisting of cryptocurrencies on trading platforms, which pose risks and cause confusion for customers. An earlier report from the Financial Services Commission’s Financial Intelligence Unit (FIU) highlighted that the number of tokens listed in the first half of 2023 increased to 169, up from 95 in the first half of 2022, while the number of delisted tokens rose from 78 to 115.The WEMIX controversyThe cycle of listing, delisting, and relisting cryptocurrencies has sparked controversies, with WEMIX serving as a notable example. WEMIX is the native token of blockchain gaming company Wemade’s Wemix blockchain network. In December, WEMIX was collectively delisted by the Digital Asset eXchange Alliance (DAXA), which includes South Korea’s top five crypto exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax. The reason cited was Wemade’s breach of disclosure rules regarding token distribution.However, in a turn of events, Coinone relisted WEMIX on its platform in February this year. Following this, DAXA established self-regulatory guidelines concerning the relisting of tokens. Despite these guidelines, Gopax also proceeded to relist WEMIX earlier this month. As a result of this move, DAXA criticized Gopax for not complying with the self-regulatory guidelines. Gopax faced a restriction on its voting rights within the alliance for three months, and a cautionary note was issued against them.An industry insider noted that despite the efforts of DAXA, their self-regulation measures for cryptocurrency trading services, including the listing process, have not been particularly effective. However, the upcoming rules are expected to be more impactful as they will be in line with the forthcoming Virtual Asset User Protection Act.

Korean Firms Join Forces to Expand the Security Token MarketSouth Korean tech firm AIITONE announced today that it signed a memorandum of understanding (MOU) with real estate developer Korea Asset Development to expand security token businesses, according to a report by news agency Newsis.Photo by Shubham Dhage on UnsplashVentures into fintechAIITONE is renowned for its expertise in applying extended reality (XR) technology to smart defense and metaverse projects. In their latest strategic move, they have hired a blockchain tech group to venture into fintech sectors, with a specific focus on security tokens.Real estate expertiseKorea Asset Development, a real estate developer engaged in multiple projects nationwide, is currently involved in the development of upscale housing in Seoul and Busan, high-end residences in Songdo, as well as luxury resorts in Chungcheong and Gangwon Provinces.Through their collaborative endeavors, AIITONE and Korea Asset Development seek to capitalize on their respective technological expertise and knowledge. They plan to share their know-how and establish a comprehensive cooperation framework, specifically targeting content development associated with security tokens. Furthermore, both parties have committed to consistently exploring new areas of cooperation.Security token opportunitiesIn particular, the two companies have identified real estate due to its relatively easier valuation compared to other assets. The market for real estate security tokens in Korea is projected to reach 34 trillion KRW ($26 billion) by 2024. It is estimated that financial services, including real estate, account for approximately 70% of the total security token market size.AIITONE CEO Lee Jin-yup underlined the importance of cooperation with a range of players that bring diverse resources, considering that the security token market involves high-value tangible assets such as real estate, music, and artworks. He said the partnership with Korea Asset Development will help the company secure a competitive edge in the burgeoning real estate security token market.Development in JapanNot just South Korea, but other East Asian nations too are experiencing significant strides in the security token market. Japan serves as a case in point, with companies like Mitsui & Co. Digital Asset Management (Mitsui & Co. DAM) exploring the potential of this emerging market.Mitsui & Co. DAM last month introduced a platform that allows retail investors to access security tokens backed by real-world assets. This initiative opens up previously inaccessible investment opportunities to a broader range of participants.Moreover, the Tokyo Metropolitan Government has taken an active role in supporting security token businesses within its jurisdiction. From May 31, 2023, to February 29, 2024, the government runs a subsidy program for security token projects based in the capital city. Under this program, eligible businesses can receive subsidies of up to 5 million yen ($36,000) per project.

While the digital assets space moves at a blistering pace, the Asia Pacific (APAC) region is on the brink of a substantial regulatory transformation, with a focus on tokenization as we enter 2024.Photo by CHUTTERSNAP on UnsplashContinued regulatory focusThat’s according to Rahul Advani, Ripple’s Singapore-based Policy Director for the Asia-Pacific (APAC) region. The Ripple Labs Executive expressed his thoughts as part of a series communicated by the company last week on social media, emanating from some of its top tier executives. This shift comes amid growing interest in tokenized assets within and beyond traditional financial markets. In setting out his thoughts, Advani reflected on the APAC region’s regulatory focus on achieving clarity for crypto in 2023. Throughout the year, there has been an emphasis on consumer protection, retail investor safeguards, market integrity and business conduct requirements. This regulatory momentum is expected to continue into 2024, particularly concentrating on enhancing retail protections. Shift towards tokenizationThe Ripple Policy Director highlighted tokenization, which converts assets into digital tokens, as an item that is experiencing increased adoption. Notable collaborations, such as Iota’s partnership with Fireblocks to streamline asset tokenization, highlight its relevance in both crypto and traditional finance. The United Kingdom’s venture into fund tokenization further exemplifies this cross-industry trend. Ripple itself has been moving further towards real-world asset (RWA) tokenization. In September, an influential pseudonymous account on X underlined how Ripple was preparing itself to get further involved in asset tokenization. The account stated: “#Ripple now owns properties that can build the infrastructure for exchanges, companies, wallets and apps to connect to fiat rails, banks, trusts, retirement plans, etc., to tokenize real world assets and hold them in safe, compliant ways.”In May the company collaborated with the Hong Kong Monetary Authority (HKMA) on a pilot program with the objective of showcasing an RWA tokenization solution. APAC to advance CBDC and stablecoin developmentIn the stablecoin sector, where digital assets are pegged to stable values, APAC is positioned to lead in regulatory efforts, according to the Ripple executive. While some regions are still formulating stablecoin regulations, Advani envisions more APAC jurisdictions providing the necessary regulatory clarity to foster innovation while ensuring consumer safety. In the broader context, Advani anticipates more focused efforts towards the development and implementation of central bank digital currencies (CBDCs), emphasizing the need for a shift from speculative hype cycles. He wrote: “In the coming year, we also foresee a regional trend that involves a more focused effort on developing CBDCs. Stablecoins will continue to be a regulatory priority, with an emphasis on ensuring a high degree of value stability.” The forecast underscores the dynamic regulatory landscape in APAC, where regulators must delicately balance fostering innovation, safeguarding investors and maintaining market stability. Striking this balance will be a defining aspect of the regulatory narrative in 2024. Advani’s thoughts were offered by Ripple alongside those of some of his colleagues at the company, such as the enterprise blockchain firm’s APAC region Managing Director Fiona Murray. These predictions from Ripple executives collectively offer insights into the evolving regulatory landscape and industry dynamics as we approach 2024.