Gyeonggi-do Province Mandates Senior Officials to Report Crypto Holdings

Tether, the issuer of the USDT stablecoin, has teamed up with local partners in the United Arab Emirates (UAE) in order to launch a dirham (AED)-backed stablecoin. In a statement published to the firm’s website on Aug. 21, Tether outlined that the stablecoin is being launched in partnership with Dubai-based technology conglomerate Phoenix Group and Green Acorn Investments, a company that describes itself as “a socially responsible investment firm dedicated to supporting critical sectors and supporting the generation of sustainable wealth and financial literacy.”Photo by DrawKit Illustrations on UnsplashFully backed by AED reservesThe stablecoin issuer outlined that each token will be “fully backed by liquid UAE-based reserves.” Tether further maintained that the back-end management of the new token will adhere to the firm’s “transparent and robust reserve standards,” and that “every Dirham-pegged token is tied to the value of the AED, providing stability and confidence in its value.”  Tether dominates the stablecoin market where USDT accounts for $117 billion, against a backdrop of an overall stablecoin market valued at $169 billion.  Perennial skepticsThe company has perennially faced criticism for a lack of transparency relative to the backing of its USDT stablecoin, given its policy of providing attestation reports instead of fully comprehensive audits from a top-tier auditing firm. One of the firm’s critics, the pseudonymous X account @OccamiCrypto took to the social media platform to provide its reaction to this most recent development, stating: "This Tether UAE stablecoin 'launch' will likely be as real as Tether’s promised audit and real time reserve reporting." The Tether critic went on to claim that the announcement is nothing more than "Tether spin," and that Tether has never attempted to become regulated in any market and that nothing would come of it. Another Tether critic, freelance journalist Jacob Silverman, commented on the development on X, stating:”Russian businessmen in UAE must be rejoicing.” His comment is suggestive of a common assertion that Tether is being used to facilitate the circumvention of sanctions. According to the firm’s press release, it believes that the product will enable users locally to access the benefits of the AED in digital form. The company claims that it will “streamline international trade and remittances, reduce transaction fees, and provide a hedge against currency fluctuations, thus playing a crucial role in the financial ecosystem of the UAE and beyond.” Tether’s partner Phoenix Group has been active in the crypto-sphere in recent times through mining. In December of last year, the company sealed a $380 million deal with Chinese mining equipment manufacturer MicroBT. Earlier that month, the company went public on the Abu Dhabi Securities Exchange (ADX). On face value, this development appears positive. However, UAE-based crypto and blockchain lawyer Irina Heaver recently warned that tightening regulations within the UAE may shut down crypto payments within the country. Heaver specifically cited the use of USDT as being under threat, with the potential for stablecoin-based transactions to be prohibited as new rules are ushered in.  

Crypto Travel Rule solutions provider CODE obtains ISO/IEC 27001 certificationCODE, a Travel Rule solutions provider and joint venture co-founded by Korean cryptocurrency exchanges Bithumb, Coinone and Korbit, announced on Tuesday (local time) that it has obtained ISO/IEC 27001 certification for information security management systems (ISMS).Photo by Scott Graham on UnsplashEnhanced cybersecurity and operational resilienceThe ISO/IEC 27001 is a standard by which companies can develop, implement, maintain and improve their ISMS to carry out robust risk management, cybersecurity and operational excellence as required by institutions like the European Union’s General Data Protection Regulation (EU GDPR).“CODE will provide a service environment that encourages confidence in our corporate members and the overall market starting with the acquisition of this information security management system certification,” said Lee Sung-mi, CEO of CODE.Consecutive effortsAs a Travel Rule solutions provider, CODE has been ramping up efforts to strengthen its compliance and information security capabilities. The company’s ISO/IEC 27001 certification comes shortly after it obtained ISO 37301 certification from the Korea Compliance Initiative (KCI). ISO 37301 is a standard for compliance management systems (CMS) that assesses organizations based on their compliance with laws, regulations, codes of conduct and more to exercise good governance, transparency and accountability.

Japan’s FSA Joins Project Guardian of Singapore’s MAS to Explore Digital Asset ApplicationsThe Financial Services Authority (FSA) of Japan has announced its participation in “Project Guardian,” an initiative led by the Monetary Authority of Singapore (MAS), as part of their ongoing cooperation framework established in 2017 to boost fintech linkages. The FSA will be an observer in the project, which aims to explore the potential of digital assets.Photo by Joshua Miranda on PexelsExploring fintechProject Guardian, initiated by MAS in May 2022, aims to engage the financial industry in exploring the feasibility of incorporating asset tokenization, decentralized finance (DeFi), and other financial technologies. Together, the MAS and the participants of this endeavor aim to execute pilot projects, shape pertinent policies, and establish technical standards.For pilot projects, the MAS works with traditional financial institutions and fintech firms in Singapore and other jurisdictions to understand potential benefits and risks associated with digital assets. For policy development, the project participants strive to develop rulebooks and governance models, as well as to review the legal and regulatory frameworks that govern tokenized assets. These collaborations also seek to establish technical standards concerning trust anchors, which are qualified third-party authentication service providers; open networks; and institutional-grade DeFi protocols.Comments from officialsExpressing enthusiasm about the collaboration, Leong Sing Chiong, Deputy Managing Director of the MAS, stated, “We welcome FSA’s participation in Project Guardian. We look forward to greater public-private collaboration with FSA to support global efforts in developing a responsible and innovative digital asset ecosystem.”Mamoru Yanase, Deputy Director-General of the Strategy Development and Management Bureau at the FSA, also expressed delight at joining Project Guardian. He said, “We are delighted to join the Project Guardian. Decentralized financial ecosystem continues to develop in complexity, and it is important to address emerging risks. Blockchain technology including web3 has a potential to become a strong driver of innovation. We look forward to working with MAS, traditional financial institutions and FinTech firms to further enhance our knowledge in this area.”By participating in Project Guardian, the FSA and MAS are reinforcing their commitment to exploring the potential of digital assets while addressing regulatory considerations. This collaborative effort is poised to contribute to the responsible and innovative development of the global digital asset ecosystem.