Singapore and the Philippines Lead Crypto Interest in Southeast Asia

Survey Reveals Over Half of Korean Financial Firms Eyeing Both Issuance and Distribution of Security TokensIn a recent survey conducted by fintech solution provider Koscom, it was found that more than half of South Korean financial companies interested in security token businesses are planning to undertake both the issuance and distribution of security tokens. This result reflects the belief of the financial firms that if they engage only in the secondary market, they will experience reduced profitability due to the necessity of lowering transaction fees amidst fierce competition, as per local business newspaper Hankyung.Photo by Shubham Dhage on Unsplash62% of financial firmsAt a seminar held today, Koscom revealed the result of this survey it conducted among a total of 95 entities interested in security tokens, consisting of 30 securities firms, three banks, one asset management company, and 61 token issuers. Among the financial firms that belong to the first three categories, 62% answered that they will conduct both the issuance and distribution of security tokens. 31% expressed a preference for conducting only issuance, while 7% were inclined towards distribution alone.The survey also highlighted that 38% of financial companies hold a positive outlook on the security token market, although they acknowledge insufficient understanding. Additionally, 34% of respondents anticipate that the security token market will rival the exchange-traded fund (ETF) market in terms of size, while only 10% believe it will eventually replace the initial public offering (IPO) market.Cultural contentWhen it comes to the underlying real-world assets (RWAs) for security tokens, cultural content emerged as the most preferred option, with 71% of respondents selecting it. Real estate followed closely at 66%, with energy (55%), artworks (41%), and agriculture and fisheries (21%) also garnering interest. Respondents were allowed to choose multiple options for this section.Similarly, cultural content remained the top choice among token issuers, favored by 21% of respondents. It was followed by real estate (16%), artworks (14%), intellectual property (14%), and agriculture and fisheries (9%).A Koscom official attributed the preference for cultural content and real estate as underlying assets to their accessibility and profitability.This seminar, organized by Koscom, aimed to create a supportive environment for issuers and distributors struggling to promote security token businesses. Hong Woo-sun, CEO of Koscom, said the company will leverage its expertise in the capital market and blockchain technology to collaborate with authorities and relevant organizations in lowering barriers to entry for market participants who need technical infrastructure.

Latest Chinese Crypto Crackdown Sees Influencer Accounts Shut DownMicro blogging platform Sina Weibo, one of China’s most popular social media platforms boasting over 258 million daily active users, has taken decisive action to enforce the country’s stringent regulations on cryptocurrency activities.Photo by Henry Chen on Unsplash80 accounts removedIn its latest announcement on Tuesday, the platform revealed the removal of 80 influencer accounts dedicated to promoting cryptocurrency-related content. These accounts collectively held a substantial following, with over 8 million followers combined.The move by Weibo comes as a response to official legislation aimed at cracking down on activities that breach a range of regulations encompassing telecommunications, finance, banking, online marketing, securities, exchanges, and internet safety. The 80 influencer accounts in question had actively violated these regulations by endorsing and promoting cryptocurrencies.Ongoing enforcementThis isn’t the first time Weibo has undertaken such a measure. It has been periodically purging crypto-related accounts since China’s cryptocurrency ban took effect in September 2021. In March of this year, Weibo already took down 131 accounts associated with crypto and stock trading activities.The most significant nationwide crackdown occurred in August 2022 when the Cyberspace Administration of China (CAC) stepped in, resulting in the removal of a staggering 12,000 influencer accounts across both Weibo and Baidu. Furthermore, 51,000 promotional posts related to cryptocurrencies were deleted. The CAC justified these actions by emphasizing their intent to protect the public’s property safety, educate citizens on responsible investment practices, and discourage participation in speculative cryptocurrency trading activities.Weibo echoed similar sentiments in their previous enforcement actions, vowing to increase the crackdown on illegal securities activities on their platform while strictly adhering to legal regulations.Worldwide issueCrypto promotion and crypto influencers are coming under increased scrutiny worldwide. In a recent filing by the Department of Justice (DoJ) in the United States in its criminal prosecution against Sam Bankman-Fried, the Founder and former CEO of failed crypto exchange FTX, it asserted that promotion by way of ads featuring US comedian Larry David and American sports star Tom Brady had blurred the lines between FTXs international and US businesses.Class action lawsuits have been instigated against a long list of crypto influencers and promoters relative to FTX, Celsius, BlockFi, and a number of other high-profile failed crypto platforms.Last month, details emerged of a grizzly end for Argentinian crypto influencer Fernando Perez Algaba, whose dismembered body was found in a suitcase in a town close to the Argentinian capital, Buenos Aires.China’s intensified scrutiny over crypto activities in recent years is driven by multiple factors, including concerns about capital flight, money laundering, and the imperative to safeguard state-controlled cryptocurrency initiatives. These measures have not only affected domestic investors but have also had unintended consequences for international cryptocurrency enthusiasts.

Korean Game Developers to Benefit from Higher NFT Trading VolumeKorean game companies preparing to launch web 3.0 games are expected to benefit from the higher non-fungible token (NFT) trading volume, according to Korean news outlet Financial News.©Pexels/Tony LitvyakA report from decentralized app analytics platform DappRadar states that the NFT trading volume reached $4.7 billion in the first quarter this year, up 137.04% from the previous quarter. This volume is the highest since the second quarter of 2022.This year’s strong NFT market so far is good news for Korean game developers, which were negatively affected by a slowdown in the crypto industry last year due to various factors, including the Terra USD collapse and the bankruptcy of crypto exchange FTX.In fact, many game and content companies are expanding their ecosystems by tokenizing their game items and intellectual property (IP) rights.NexonOne such example is Nexon, the developer of the massively multiplayer online role-playing game MapleStory. Based on its IP rights, Nexon is creating the MapleStory Universe, an NFT-based blockchain ecosystem. The MapleStory Universe will enable trading of NFTs, which users can obtain while hunting or accomplishing quests. Its first major project, a personal computer game named “MapleStory N,” will be launched to attract gamers worldwide.NetmarbleNetmarble, another Korean game company, will launch Modoo Marble 2: Metaworld on Wednesday for global gamers. The popular mobile board game will be rolled out on the MBX ecosystem operated by Netmarble’s blockchain subsidiary Marblex. Participation in the board game and involvement in the Metaworld would allow users to earn Meta Cash as rewards, which can then be swapped for different virtual assets. The trade of buildings and land within the game would likely be facilitated through the use of NFTs.Com2uS HoldingsCultural content company Com2uS Holdings is also making its own efforts to expand its blockchain ecosystem. Its subsidiary Com2uS Platform recently forged a partnership with animation firm Daewon Media to strengthen its NFT business based on Daewon’s popular IP rights.A game industry official said NFT trading can address issues that caused concerns for gamers who doubted the legitimacy and price of items they traded. The official further elaborated that incorporating elements like NFTs and the metaverse would enhance the gaming experience and excitement for gaming enthusiasts.