South Korean Firms Combine Strengths to Draw Hobbyists into the Metaverse

Korean Ministry of Government Legislation Holds Lecture on Generative AI and BlockchainThe Korean Ministry of Government Legislation said it held a lecture on generative artificial intelligence and blockchain in light of the global rise of advanced technologies on Thursday as a means of educating and enhancing the digital capabilities of its employees.The legal environment is expected to undergo rapid and substantial changes in tandem with the fast-paced advancement of technological innovation. In response, the Ministry is conducting a three-part series of special lectures on the expected demands of legislation in the future to help its employees prepare accordingly.This lecture was the second installment in the series, titled “Essential Survival Strategies in the Era of Generative AI.”It was planned as per Minister Lee Wan-kyu’s special orders to educate Ministry employees on the promotion and regulation of new technologies such as generative AI and blockchain, which have been gaining traction as key topics in recent legislative discussions.Photo by RUT MIIT by UnsplashA future led by blockchainThe first lecture, held on July 20, was led by Professor Park Seong-jun, Head of the Blockchain Research Center at Dongguk University in Seoul. During the session, he discussed how blockchain technology would impact South Korean society in the future and shared his insights into the trajectory of related legislation.Living with generative AIThe most recent second lecture featured Chief Judge Kang Min-gu of the Seoul High Court, who delved into the kind of mindset that public officials should adopt in the era of generative AI. He emphasized the need to strike a balance between digital and analog expertise and highlighted the importance of reassessing our attitude towards innovative technology while still valuing the essential principles for our way of life.Managing money launderingThe upcoming final lecture, scheduled for next month, will be given by Park Jeong-hoon, the former Head of the Korea Financial Intelligence Unit, regarding the topic of virtual assets and anti-money laundering. Given the existing concerns about the potential for virtual assets to facilitate money laundering due to their key characteristics such as anonymity and decentralization, this lecture aims to underscore the significance of instituting regulatory measures for preventing money laundering related to virtual assets.“Our laws must evolve to reflect the times that we are living in. Our society is currently experiencing rapid digital innovation — through the enhancement of the digital capabilities of our Ministry employees, I hope that legal administration can undergo innovation as well,” said Minister Lee, who also attended the lectures.“In the future, we will continue to expand capacity-building education opportunities for Ministry employees, enabling them to facilitate legislation that is demanded by modern times.”

Major Japanese securities firms are moving deeper into the cryptocurrency market, underscoring the rapidly evolving nature of Japan’s financial sector. According to DL News, citing Nikkei, Nomura Holdings, Daiwa Securities Group, and SMBC Nikko Securities are exploring plans to launch their own crypto exchanges as Japan edges closer to regulatory approval of crypto exchange-traded funds (ETFs).Photo by Jakub Żerdzicki on UnsplashETFs could spur demandNomura is expected to lead its effort through Laser Digital, its Swiss-based crypto subsidiary, and plans to pursue a domestic exchange license and launch its service by year-end. The move comes after Laser Digital trimmed its crypto positions following third-quarter losses. Despite the setback, Nomura has reiterated its long-term commitment to digital assets. SMBC Nikko Securities, meanwhile, has established a dedicated decentralized finance (DeFi) unit to assess new business opportunities in blockchain-based financial services.  The firms are positioning themselves ahead of what they expect to be a surge in demand if Tokyo lifts restrictions on crypto ETFs. Japan is reportedly working toward approving such products by 2028. In preparation, the Financial Services Agency is considering classifying digital assets as eligible for inclusion in investment trusts—a key step toward broader institutional adoption. Institutional appetite is already building. A November Nikkei survey found that six major firms—including SBI, Nomura, and Daiwa—are developing crypto investment offerings in expectation of eventual approval by the Tokyo Stock Exchange. The 2028 rollout hinges in part on tax reform. The government is weighing a shift from the current progressive tax regime, which can impose rates of up to 55% on crypto gains, to a flat 20% rate—aligning digital assets with the taxation of traditional equities. Authorities find that a two-year buffer is needed to ensure exchanges and oversight bodies can implement the new rules effectively. SBI to acquire Singapore’s CoinhakoIn parallel, SBI Holdings is expanding its regional footprint. The financial services group announced that its Singapore-based subsidiary, SBI Ventures Asset, has signed a letter of intent with Coinhako to pursue a majority acquisition of the virtual asset service provider. The two sides aim to combine their capabilities to deliver integrated services spanning traditional finance and digital assets for both retail and institutional clients. Details of the proposed capital injection and share purchases from Coinhako’s existing shareholders remain under negotiation and subject to regulatory approval. Amid the industry’s expansion, traditional finance is increasingly weighing stablecoins against Bitcoin. According to The Crypto Basic, Lee Hardman, a currency analyst at Japan’s MUFG Bank, said that stablecoins may prove more effective than Bitcoin as a medium of exchange, a unit of account, and a store of value. Their price stability has been cited as a key advantage, as reduced volatility lowers transaction risk for merchants and consumers.

Crypto Travel Rule solutions provider CODE obtains ISO 37301 certificationCODE, a Travel Rule solutions provider and joint venture co-founded by Korean cryptocurrency exchanges Bithumb, Coinone and Korbit, announced on Wednesday (local time) that it has obtained the ISO 37301 certification for compliance management systems (CMS) from the Korea Compliance Initiative (KCI).Photo by Héctor J. Rivas on UnsplashBoosting complianceISO 37301 is an international standard that outlines the requirements and guidelines for an organization in establishing, developing, implementing, evaluating, maintaining and improving a CMS. It provides a framework for organizations to ensure that they are following all relevant and applicable laws, regulations, codes of conduct and more to exercise good governance, transparency and accountability.CODE has taken the initiative to bolster its CMS to provide more secure and reliable Travel Rule solutions by analyzing and managing compliance risks. The firm’s CEO Lee Sung-mi is responsible for overseeing these efforts as the recently appointed head of compliance. Through these measures, the company explained that it has been capable of building a system to comply with strict international standards.The Travel Rule under the Financial Action Task Force’s (FATF) Recommendation #16 outlines that virtual asset service providers (VASPs) must share certain personal information about customers — including names and account numbers — when facilitating crypto transactions that exceed a certain amount.CODE is also running mandatory training sessions and various programs for all employees to ensure adherence to compliance requirements. In particular, the firm operates a system to monitor Travel Rule compliance risks that may arise during cryptocurrency deposits and withdrawals.“Beyond establishing a robust compliance management culture as a Travel Rule solution provider, we will continue to work with our corporate members to ensure that this culture can be more widely adopted across the crypto industry,” said Lee Sung-mi.Contributing to anti-money launderingCODE has also recently teamed up with global blockchain analytics and crypto compliance solutions provider Elliptic to help Korean VASPs adapt to the evolving international regulatory landscape for anti-money laundering (AML) and the crypto Travel Rule.