Fujitsu Launches Blockchain Collaboration With Asian Development Bank

Korean government to seize crypto for unpaid child supportStarting next year, the South Korean government is set to begin seizing virtual assets such as bitcoin from parents who are obligated to pay child support but fail to do so.Photo by Bonnie Kittle on UnsplashKorea Credit Bureau to assist in crypto seizuresAccording to a report by local news outlet Dailian, the Child Support Agency (CSA) of the Korean Institute for Healthy Family (KIHF), which operates under the Ministry of Gender Equality and Family, announced on Wednesday (local time) a partnership with the Korea Credit Bureau (KCB). This collaboration will empower the agency to confiscate virtual assets from parents who are delinquent in paying child support.Since 2015, the CSA has been offering emergency child support for approximately a year to low-income single parents who have not received payments from non-custodial parents. In this process, the agency initially pays the child support on behalf of the non-custodial parents and subsequently pursues reimbursement from them. This system ensures that the immediate needs of the children are met while still holding non-custodial parents accountable for their financial responsibilities.Before July 2022, the CSA was required to initiate lawsuits against non-compliant parents to recover child support payments. However, since then, the agency has been authorized to directly pursue reimbursements by following the compulsory national tax collection process.Challenges in enforcing child support paymentsDespite these improved measures, the government still encountered challenges in enforcing child support payments. Some non-compliant parents have resorted to earning income under other people’s names or deliberately concealing their properties, including virtual assets, to evade their child support obligations.Against this backdrop, the recent partnership between the CSA and the KCB is a strategic move to enhance the enforcement of child support payments. This collaboration will grant the CSA access to KCB’s virtual asset management system. With this access, the CSA will be able to efficiently search for and seize the cryptocurrency holdings of non-compliant parents.Jeon Joo-won, the head of the CSA, underlined the significance of the agency’s collaboration with the KCB. She pointed out that utilizing KCB’s financial transaction data will improve the CSA’s enforcement of child support payments. Jeon also emphasized that the mutual support between the two agencies will serve as a foundation for promoting social values, highlighting the broader societal impact of their combined efforts to ensure responsible child support compliance.

As Hong Kong approaches the culmination of the Securities and Futures Commission's (SFC) deadline for cryptocurrency exchanges to seek licenses, the regulator issued a reminder to investors about the potential risks associated with trading on unlicensed platforms.Photo by Jarrod Erbe on UnsplashUrging cautionIn a notice released on Monday, the SFC emphasized the importance of engaging exclusively with SFC-licensed virtual asset trading platforms (VATPs) to ensure investor protection. With only one month remaining for exchanges to apply for a license under the city's virtual asset regulation, the SFC urged investors to exercise caution when dealing with platforms that have not yet received approval.The SFC suggested that investors check the list of regulated platforms, which it maintains on its website. Within the notice, the regulator outlined that in the past, some platforms have claimed to be regulated entities when they were not compliant platforms and not adhering to existing regulations within the Chinese autonomous territory. The advisory comes after the fallout from a high-profile fraud incident involving the JPEX trading platform last fall, resulting in substantial losses of $192 million. Growing list of VATP license applicantsLast month, four additional crypto exchanges, including the KuCoin-affiliated HKVAEX and Singapore-based Bybit, joined the list of official VATP license applicants. The SFC began publishing this list in response to the JPEX scandal, underscoring the importance of regulatory compliance in the cryptocurrency sector. Hong Kong's virtual asset regulation, enacted as an amendment to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance last year, stipulates that companies engaged in selling or marketing cryptocurrencies to Hong Kong residents must apply for a license by Feb. 29. Those failing to do so must cease business operations in the city by May 31. Currently, OSL and HashKey are the only licensed exchanges in Hong Kong, having received an earlier voluntary license that was later upgraded to include retail investors. These exchanges are operating under an interim solution permitted by the SFC, allowing retail investors to trade on their platforms. Setting a high barWhile 14 companies have formally submitted license applications to date, Patricia Ho, General Counsel for blockchain company Scroll, told the South China Morning Post (SCMP) that the stringent requirements set by Hong Kong have led to a selective process. Ho explained that the city has intentionally set a high bar for application submission, resulting in only the most committed and resourceful entities progressing to the application stage. Last month, it emerged that the SFC had acted to bolster investor protection by introducing a minimum insurance requirement of 50% for licensed crypto exchanges that handle customer funds. It is also planning to introduce a regulatory framework relative to crypto over-the-counter (OTC) trading desks. The SFC is also monitoring individual crypto projects, as last week, the regulator issued a stern warning to those behind the offering of the Floki and TokenFi staking programs. As the deadline approaches, Ho anticipates potential enforcement actions against smaller platforms operating in legal gray areas. Larger platforms, on the other hand, have already begun restricting access from Hong Kong. 

U.S.-based crypto startup Ondo Finance, a financial infrastructure firm that concerns itself with the tokenization of real-world assets (RWAs), has officially revealed its intention to expand into the Asia Pacific (APAC) area, with the inauguration of its first office in the region. In a press release published by the company on Sunday, Ondo clarified that the expansion is a direct response to the escalating interest in digital assets throughout Asia. That interest the company attributes to factors such as a flourishing crypto community, shifting regulatory environments and a growing appetite for exposure to U.S. assets.Photo by Florian Wehde on Unsplash40% market shareAt present, Ondo Finance holds a 40% share of the global market where tokenized RWAs are concerned. That market share has been driven by its three main tokenized product offerings: OUSG, designed for exposure to U.S. Treasuries; OMMF, facilitating exposure to U.S. money market funds; and USDY, positioned as a yield-bearing alternative to traditional stablecoins. These products serve as a conduit for global investors to access U.S.-based asset classes in tokenized form, aligning with the rising trend of digital asset adoption. To spearhead its APAC expansion initiative, Ondo Finance has appointed Ashwin Khosa as the vice president of business development in the region. Khosa brings nearly a decade of experience in Hong Kong-based institutional business development, having worked with multinational financial services company Citi, alongside key crypto firms such as Tether and its sister company, Bitfinex. His expertise encompasses both on-chain finance and a profound understanding of the APAC market. Khosa stated: “The team is top-notch and the mission of bringing real world assets onchain is extremely important. I look forward to working closely with partners in the region to help investors gain access to this next generation of high-quality assets.” Founded in 2021 with roots tied to the Goldman Sachs Digital Assets team and supported by leading venture capitalists including Founders Fund, Pantera Capital and Coinbase Ventures, Ondo Finance is looking to solidify its position as a dominant force in this newly emerging market on the back of nearly 40% of the global market share in tokenized securities. Nathan Allman, the founder and CEO of Ondo, expressed his excitement about the expansion, stating:“We’re very excited about our expansion into APAC. There is an active and rapidly growing crypto community and an appreciation for the type of high-quality exposure to US assets that our tokens provide.” Suspected token dumpIn a related development on Monday, on-chain sleuths have presented data that may indicate a sell-off of $11 million worth of ONDO tokens, the project’s native token. 20 million tokens were sold, with the suggestion that the token unit price fell in tandem with that market activity. Earlier on Monday, the token traded at $0.3062. At the time of writing, it's trading at $0.25. This expansion into the APAC region follows a string of pivotal developments for Ondo, including the revelation of its strategic roadmap and partnerships within the Ondo ecosystem. Additionally, the Ondo Foundation has introduced a points program and a proposed unlocking of its ONDO token, marking an integral part of the company's ongoing growth and development.