DeSpread and Crypto Times Team Up to Bridge Blockchain Information Gap in Korea and Japan

Parameta and Solbric Korea to Create First Solar Power Plant Security Token Platform in KoreaSouth Korean blockchain company Parameta (formerly known as Iconloop) said Tuesday it entered a business deal with Solbric Korea, a subsidiary of solar energy innovation company Next Solar Energy, to jointly establish the country’s first solar power plant security token platform that allows investors to make fractional investments in solar energy.Photo by Nuno Marques on UnsplashReceiving approval as an innovative financial serviceIn order to establish such a platform that designates solar power plants as underlying assets, they will jointly apply for a financial regulatory sandbox — a program introduced by the Korean government that offers a special and provisional regulatory exemption for financial services that have been recognized for their innovativeness.Once the platform is recognized under the sandbox as an innovative financial service, the two companies will work together on the issuance and distribution of security tokens.Expanding opportunities to invest in solar energyUltimately, Solbric aims to build a platform that brings security token technology to the solar power sector, which, until now, has presented limited investment opportunities for individual investors in Korea. It will allow them to trade securities and make small-scale, fractional investments in solar power plants.To do so, Solbric intends to leverage the knowledge and expertise of its parent company, Next Solar Energy — an experienced veteran in the solar plant industry.As its partner, Parameta will provide the necessary blockchain technology for constructing and managing the platform based on its security token offering service, Parameta S. This service uses tokens to allow fractional management of real-world assets (RWAs), making it easy to invest in and organize them. This offers more liquidity and flexibility compared to traditional investment methods.“We will focus on providing investment returns to platform users as well as the unique experience of owning various solar power plants,” said Kang Jae-won, the CEO of Solbric Korea.Increased institutional supportThis project is made possible by the recent upturn in institutional support from Korean financial authorities that allows more security token offerings. Last month, the Korean Financial Services Commission ultimately granted regulatory exemptions to several fractional investment firms that have successfully completed the business reorganization as requested by the regulator. The Financial Supervisory Service has also decided to allow fractional investment businesses to apply for investment contract securities.Taking advantage of this momentum, Solbric and Parameta plan to continually explore diverse business opportunities to establish their platform.“We are currently working with various specialized companies, including Solbric, to expand our security token businesses in various fields such as solar power plants, mobility, real estate non-performing loans, carbon emission rights, and electric vehicle batteries,” said Kim Jong-hyup, CEO of Parameta.

In a contrasting move to the recent approval of several spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), regulators in both Singapore and Thailand have turned down permission to list spot bitcoin ETFs.Photo by Dmytro Demidko on UnsplashBitcoin not a qualified assetAccording to local news media on Wednesday, Singapore's Monetary Authority (MAS) has announced its decision not to permit the listing of spot ETFs in the country. The MAS argues that cryptocurrencies, including bitcoin, do not meet the criteria for qualified assets within the context of ETFs. This regulatory divergence means that retail investors in Singapore won't see the introduction of spot bitcoin ETFs domestically. However, they still have an avenue to trade such ETFs as they can turn to local brokerages for access to overseas markets. Despite this allowance, the MAS emphasizes the need for these retail investors to exercise caution due to the inherent high volatility and speculative nature of cryptocurrency trading. A spokesperson from the regulatory authority clarified that while collected investment schemes (CIS), falling under the Securities and Futures Act regulation, include ETFs, they do not encompass bitcoin or any other cryptocurrency. Future potentialWhile MAS may be turning down spot bitcoin ETFs at this point, there’s potential for a change of heart in the future. The FIMA Bill is currently working its way through the city-state’s legislative process. If enacted, it would give broader regulatory oversight of crypto to MAS. Lasanka Perera, CEO of Independent Reserve Singapore, recently suggested that the bill could make an ETF more likely. Thailand says noMeanwhile, Thailand’s Securities and Exchange Commission (SEC) has stated that it currently does not plan to allow asset management firms to launch spot bitcoin ETFs in the country. Thai securities brokerage firms have been encouraging investors to consider investing directly in U.S. spot bitcoin ETFs. The Thai SEC clarified that while it closely monitors these developments, there is no immediate policy to allow spot bitcoin ETFs in Thailand. The regulator emphasizes that Thai investors can still engage in digital asset investments through domestic exchanges licensed by the SEC under the Digital Assets Decree. India, too, doesn’t appear to have been looking favorably on the potential for such products. The governor of the Reserve Bank of India (RBI) said last week that “the way we look at crypto remains unchanged, irrespective of who does what.” Asian optimismIn the wake of ETF approval in the U.S., many industry commentators had suggested that Asia would respond positively. Australian venture capitalist Mark Carnegie has suggested that the developing bull market would be “an Asian story.” Yat Siu, co-founder of Hong Kong’s Animoca Brands, expressed the view that U.S. ETF approval would have a substantially positive impact within the Asian region. Hong Kong appears to be the most positive in the region in its outlook with regard to embracing spot bitcoin ETFs. Immediately following approval in the U.S., a Hong Kong legislator spoke out to encourage a proactive response relative to launch of similar products within the Chinese autonomous territory. Meanwhile, recent news reports indicate that spot bitcoin ETFs experienced substantial trading volume, accumulating $10 billion just three days after their approval in the U.S. 

A Korean Lawmaker’s Crypto Holdings Worth $4.5M Spark ControversySouth Korean lawmaker Kim Nam-kuk, a member of the opposition party Democratic Party of Korea (DPK), has recently come under scrutiny due to his reported possession of 800,000 WEMIX tokens from January to February last year, as reported by the Maeil Business Newspaper. These tokens were worth approximately 6 billion KRW or $4.5 million at the time. While Korean lawmakers are obligated to disclose their wealth, virtual assets are an exception. The disclosure of Kim’s ownership of these tokens has ignited controversy, as it unveiled a wealth magnitude significantly greater than previously understood.Photo by Karolina Grabowska on PexelsTravel Rule regulationA central issue in the unfolding dispute is the source of Kim’s investment in the WEMIX tokens. It has been reported that he purchased a significant amount of these tokens between January and February last year and withdrew the entire sum between February and March before the crypto exchange implemented measures to comply with the Travel Rule regulation. This rule requires that financial authorities be informed of transactions over 10 million KRW ($7,500). After the crypto exchange reported the transactions to the Financial Intelligence Unit of the Financial Services Commission, the government agency requested a warrant to search Kim’s account due to the transactions’ abnormality. However, the court dismissed the request.Jeonse deposit to LG Display sharesIn response to the controversy, Kim took to a YouTube channel on Tuesday to explain his WEMIX token investments. He stated that he had retrieved 600 million KRW ($450,000) after his jeonse contract expired and used the money to purchase LG Display shares. Jeonse a housing rental system in Korea where tenants put up a lump-sum refundable deposit on a rental space for a two-year stay. Kim claims that these LG Display shares later rose in value to 985.7 million KRW ($744,000) in January 2021 and that he used this sum to purchase the tokens.Account balance and WEMIX tokensDespite his explanation, there are still questions surrounding Kim’s sudden increase in his bank account balance. His account balance reportedly increased from 100 million KRW ($76,000) at the end of 2020 to 1.12 billion KRW ($850,000) by the end of 2021, which raised suspicions. If Kim had directed all the money withdrawn from the LG Display shares to WEMIX tokens, it is unclear where the additional $774,000 in his account came from. Kim has reportedly explained to his party’s leadership that he retrieved the principal amount of his investment due to the increase in the WEMIX token price. However, this explanation has not satisfied some critics.Insufficient explanationIn an attempt to address these concerns, Kim shared part of his bank transaction records on Monday. However, this disclosure has fallen short of addressing all the questions that have been raised, such as the precise amount invested in the tokens and their purchase prices. There is still significant public scrutiny and skepticism surrounding Kim’s explanation for his crypto holdings, and it remains to be seen if further disclosures will be made.Kim apologized to the Korean public via Facebook for any disappointment caused, especially amid challenging economic conditions. However, he denied accusations of using undisclosed information or unlawfully acquiring wealth. Kim maintained that all transactions were transparently made using only his own wallets through his real-name bank accounts.Potential insider trading and conflict of interestNevertheless, the public’s acceptance of his explanation is yet to be seen, as questions about his $4.5 million virtual assets persist, particularly given his reported total wealth of around $1.1 million. There are concerns surrounding the possibility of insider trading. Furthermore, Kim’s participation in proposing a bill to defer tax implementation on digital assets has triggered suspicions of a potential conflict of interest.Call for an impartial third partyRecent updates indicate that the prosecution is considering requesting a warrant against Kim in relation to the controversy surrounding his crypto holdings. The Anti-Corruption and Civil Rights Commission is also examining if his participation in proposing the bill constitutes a conflict of interest. It is evident that an impartial third party will need to investigate and analyze all relevant information to resolve this dispute. Until a thorough and unbiased investigation takes place, the public’s concerns and questions are likely to continue.