Korea Fintech Industry Association Establishes Council for Security Tokens

OKX shores up App security following bug discoveryCryptocurrency exchange OKX has swiftly responded to a recently uncovered security flaw by releasing an updated version (v6.45.0) of its iOS app.User data and asset vulnerabilityThe flaw was identified by Web3 and blockchain security specialist CertiK. It posed a Remote Code Execution (RCE) vulnerability that had the potential to compromise sensitive user data and crypto assets. Notwithstanding that, no user assets were lost or security compromised.Taking to the X social media platform on Tuesday, CertiK wrote:”Attention! We urge users of OKX wallets to update their iOS app to the latest version immediately. Earlier this month, we identified and reported a critical Remote Code Execution (RCE) vulnerability in the OKX iOS App, leading to potential compromise of sensitive data and crypto assets.”Photo by FLY:D on UnsplashPrompt responseRecognizing the risk, OKX has acted promptly to rectify the issue and commit to protecting user assets. It too followed up on social media with its own announcement:”Thanks @Certik for the note. We’ve completed the relevant upgrade & this is no longer an issue. We have verified that this did not impact any customer assets. The fix has been deployed to iOS version 6.45.0 & we recommend you update the app asap.”Ongoing exploitsThis security incident has played out amid a backdrop that has seen a worrying number of hacks, exploits and vulnerabilities in the crypto space. In recent weeks, hacks at HTX (formerly Huobi), cross-chain bridge Heco and Poloniex have accounted for millions of dollars in losses.As recently as last week, users of the Ledger hardware wallet were told by the company not to connect to decentralized applications as it had discovered that a malicious version of its Ledger Connect software had been distributed.Industry collaborationThe collaboration between OKX and CertiK in addressing this security concern is demonstrative of how industry actors are having to cooperate in order to deal effectively with these vulnerabilities and threats.Transparent communication and a swift response in this instance are likely to have played a role in minimizing any potential loss. In a noteworthy development, OKX, in collaboration with Tether, has collaborated with the United States Department of Justice (DOJ) to freeze $225 million in USDT tokens.This unprecedented action primarily targeted a human trafficking syndicate in Southeast Asia, illustrating the increasing cooperation between crypto entities and law enforcement in addressing illegal activities involving digital currencies.The immediate resolution of the iOS app vulnerability in this instance resulted in no loss occurring. That outcome underscores the importance of the prioritization of user safety and data security.With the updated app version (v6.45.0) now available, users can proceed with their crypto transactions with renewed confidence in the platform’s security measures. As the cryptocurrency landscape evolves, crypto platforms and platform users will need to remain vigilant in order to safeguard and protect funds.

Upbit Singapore Gains In-Principle Approval for Major Payment Institution LicenseCryptocurrency exchange Upbit Singapore announced in a press release via PR Newswire that it has secured an in-principle approval (IPA) for a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). The IPA enables Upbit Singapore to continue providing regulated Digital Payment Token services in compliance with the Payment Services Act 2019 as it progresses on the path toward obtaining a full license.Photo by Paul MARSAN on UnsplashUpbit’s presence in AsiaIt’s worth noting that Upbit Singapore is part of Upbit APAC, a larger entity that operates exchanges bearing the same name in Thailand and Indonesia. Both Upbit Thailand and Upbit Indonesia are also regulated by their respective local authorities: Thailand’s Securities and Exchange Commission of Thailand and Indonesia’s Commodity Futures Trading Regulatory Agency (BAPPEBTI).Upbit APAC holds a technological partnership with Dunamu, the operator behind South Korea’s largest cryptocurrency exchange, Upbit.Crypto firms flocking to SingaporeThis development places Upbit Singapore among the ranks of other cryptocurrency exchanges in the city-state. Earlier this month, GSR Markets, the Singaporean arm of global crypto trading firm GSR, also achieved IPA status in its journey towards obtaining a full license. Other notable names in the industry, such as crypto exchange Coinbase and crypto payment firm Ripple, have already attained full licenses. The transition from an IPA to a full license took approximately a year for Coinbase and about four months for Ripple.Meanwhile, the Upbit enterprise has been making various efforts to solidify its presence in the crypto industry. One of its key initiatives is focused on enhancing user protection. For instance, as the leading cryptocurrency trading platform in South Korea, Upbit recently launched a campaign aimed at assisting crypto investors in recovering mistakenly transferred assets.However, there have been concerns regarding Upbit’s relationship with Kbank, the internet-only bank that provides real-name bank accounts to the Korean exchange. In Korea, cryptocurrency exchanges that facilitate the trading of Korean won are legally obligated to secure such bank accounts as part of anti-money laundering measures. Referring to a document provided by the Financial Services Commission (FSC), Lawmaker Kim Hee-gon highlighted that Upbit customers make up 18% of the bank’s total customer deposits. This percentage is significantly higher than what other banks that offer accounts to exchanges typically experience. Lawmaker Kim has criticized the bank’s relatively extensive exposure to the cryptocurrency exchange, underscoring the importance of elevating the level of Upbit’s reserve funds held at Kbank to prepare for unforeseen losses.

Zodia Custody to Commence Yield Offering on StablecoinsIn a play that’s designed to entice institutional investors, Zodia Custody, a portfolio company of Japanese financial services conglomerate SBI, is gearing up to offer a yield on digital assets.Photo by CoinWire Japan on UnsplashIntroducing “Zodia Custody Yield”The crypto startup has introduced “Zodia Custody Yield,” a crypto staking option designed to reward holders of crypto assets stored within its platform. The initiative has been launched in partnership with Singapore-based DeFi platform OpenEden. It promises returns on stablecoins although full details on the offering remain undisclosed.Jeremy Ng, Co-Founder of OpenEden, expressed his belief in the potential of cryptocurrencies to generate substantial passive income for their holders. Ng stated:“There are billions of dollars worth of stablecoins sitting on the sidelines when they could easily be generating yields for investors.”TradFi embracing digital assetsZodia’s move aligns with a growing trend in the financial industry. Yesterday, a leading US bank, Citi, disclosed its collaboration with Maersk to facilitate services that convert funds into digital assets. The primary goal is to enable the bank’s customers to execute nearly instantaneous payments, unrestricted by traditional business hours.Simultaneously, several prominent asset management firms are awaiting a pivotal decision from the Securities and Exchange Commission (SEC) regarding their applications to launch a spot Bitcoin exchange-traded fund (ETF). This list includes major players such as BlackRock, Invesco, WisdomTree, ARK Invest, Valkyrie, and Franklin Templeton. BlackRock, the frontrunner in the efforts being expended towards ETF approval, submitted its application for a spot Bitcoin ETF on June 16.In a recent interview, Bloomberg analyst Eric Balchunas said that he expects $150 billion in capital to flow into the Bitcoin market within two years of a spot Bitcoin ETF approval in the US.The financial strategies of these entities now prominently feature blockchain and crypto-based products, once considered niche but now integral to their operations. Nonetheless, even with widespread anticipation of the approval of BlackRock’s ETF, the firm faces substantial obstacles. US regulators have subjected BlackRock to intense scrutiny due to concerns regarding its ties to China. Additionally, political figures have criticized the asset manager for prioritizing environmental, social, and governance (ESG) criteria over investor returns.Zodia was spun out of British multinational banking firm Standard Chartered. The bank has a positive outlook relative to crypto. In a bold prediction made in June, the UK-based bank forecasted that the value of Bitcoin could potentially surge to $50,000 by the end of the year, with an even more optimistic projection of $120,000 for 2024.In 2021 Standard Chartered, in collaboration with Northern Trust, a leading asset servicing firm, founded Zodia Custody. Since its inception, the venture has garnered a respectable level of success. It successfully secured $36 million in investments and solidified a partnership with SBI Digital Asset Holdings, enabling its expansion into the Japanese market.In May, the firm launched its crypto custodian service in Dubai, having signed a memorandum of understanding (MOU) with the Dubai International Financial Center (DIFC). In June, Zodia partnered with blockchain infrastructure provider Blockdaemon, in an effort to further its crypto staking offering. Earlier this month, the company announced its arrival in Singapore, with a view towards expanding its digital asset custody service there.