South Korea Advances Crypto Disclosures Bill for Lawmakers

DAXA Implements Virtual Asset Alert System to Enhance Investor ProtectionThe Digital Asset eXchange Alliance (DAXA), a consortium consisting of the top five cryptocurrency exchanges in South Korea, has made an announcement today regarding the introduction of a standardized virtual asset alert system.That’s according to a report by local news outlet Edaily. This system aims to tackle the problem of information asymmetry and safeguard the interests of investors.Badging of assetsUnder this new initiative, member exchanges will continuously monitor the market in real time to operate their respective alert systems. Whenever a virtual asset meets certain predetermined criteria, the trading window for that asset will be labeled with a badge. While DAXA members have collectively agreed to run the alert signal for a maximum of 24 hours, each exchange will have the autonomy to determine specific durations based on their individual requirements.Photo by Sigmund on UnsplashFive categoriesThe alert system will cover five distinct categories, notifying users of market movements related to price fluctuations, trading surges, deposit surges, price gaps, and whale trades. Price fluctuations refer to instances where the prices of virtual assets experience a rise or drop of over 50 percent within a 24-hour period. Trading surges indicate an increase in trading volume by more than 100 percent over the past ten days. Deposit surges signify an increase in deposit volume by over 100 percent during the same ten-day period. Price gaps occur when virtual asset prices on DAXA exchanges differ by more than 5 percent from their corresponding prices on crypto information website CoinMarketCap. Lastly, whale trades refer to situations where specific individuals or entities account for more than 40 percent of the total transaction volume within the past 24 hours.It is worth noting that the guidelines pertaining to the alert system will be customized by each member exchange according to their specific trading volumes and requirements. While adhering to the aforementioned framework, the member exchanges will establish their own rules and regulations.The formulation of this initiative involved the collaboration of all five members, who collected valuable input from DAXA advisors since the alliance’s inception in June of last year. The alert system also underwent a trial test phase to ensure its stability before being implemented.DAXA Vice Chairman Kim Jae-jin said the DAXA alert system would address information asymmetry issues by promptly providing data that ordinary investors previously couldn’t find on charts or order books. Kim added that the alliance is committed to further improving the alert system.

The 38th Young Architects Forum, which will explore the integration of metaverse technology into architecture, is set to take place next Thursday at the Weple NFT Gallery building in Yongsan-gu, Seoul, according to an official announcement on Friday (KST). Co-hosted by STELSI, a Build-to-Earn (B2E) decentralized metaverse project, and the Young Architects Forum Korea, the event will revolve around the theme “Beyond Realms: Architectural Odyssey in the Metaverse Era,” hosting experts from the architecture industry and anyone interested in the topic. Photo by Redd F on UnsplashArchitectural imperatives in the era of Web3In particular, the forum will delve into the impact of the Fourth Industrial Revolution and blockchain technology on AI architecture and the metaverse. A crucial consideration in this topic is the role that architects must play in an unprecedented era of Web3, namely promoting creativity while determining ethical boundaries through collaboration and sharing of ideas. Another point for discussion will be expanding diversity and the possibilities in architecture by tapping into advancements in digital technologies. STELSI is a decentralized metaverse island that provides a realistic and intuitive extended reality (XR) experience where users can design, construct and manage buildings. Built with the 3D creation tool Unreal Engine, it aims to support the seamless application of blockchain technology across different sectors of the construction industry, including architectural planning and design, construction and real estate. The platform also runs on a native token called STELSI, which users can earn by staking building NFTs. The event’s other organizer, the Young Architects Forum Korea, was established in 2011 with a mission to boost the presence of young architectural visionaries in South Korea. The forum provides opportunities for them to leverage their talents and expertise to contribute to societal advancement. In addition to the Young Architects Forum, it also hosts other events like exhibitions, cooperative projects and seminars. Professionals uniteSpeakers set to attend include STELSI CEO Ryan Shim, CSO and Co-Founder of IoTrust Yoo Min-ho, CCO of jpa. JUNGLIM Architecture Kim Kyung-hoon and more. Firms like blockchain news outlet Tokenpost, LandFi metaverse OrbCity and Wepin Wallet are also sponsoring the event. STELSI stated in its announcement that the forum aims to “provide a unique space for architects who perceive the world differently, transcending dimensions.”

How will Binance’s criminal case affect its presence in South Korea?Binance, the world’s largest cryptocurrency exchange, has reached a settlement with the U.S. government to pay a fine of more than $4.3 billion after the exchange was accused of anti-money laundering (AML) and sanctions violations. Co-founder and CEO Changpeng Zhao also pleaded guilty to violating the Bank Secrecy Act, which requires financial institutions to submit documentation to prevent them from becoming mediums for criminal funding. Binance will thus be withdrawing completely from the U.S.Photo by Vadim Artyukhin on UnsplashNews of this incident has sparked keen interest within the South Korean crypto industry regarding the impact it could have on Binance’s presence and influence in the country.Murky future for Binance as Zhao resignsBinance allegedly failed to report transactions involving criminal entities such as terrorist groups, ransomware perpetrators and money launderers without implementing a system to prevent such crimes. In particular, organizations like the Izz ad-Din al-Qassam Brigades — the armed wing of the Palestinian militant group Hamas — as well as the Palestinian Islamic Jihad and ISIS were found to have utilized Binance as a channel for their funds. Furthermore, the exchange also facilitated transactions with users in sanctioned territories such as Iran, North Korea and Syria.Zhao has subsequently decided to step down as Binance’s CEO, taking to his X (formerly Twitter) account to state that he believes it is the right move. However, he also emphasized that the U.S. government did not accuse Binance of misappropriating user assets or engaging in market manipulation.Despite this fiasco, some insights have painted Binance’s future in a positive light. JPMorgan, the largest bank in the U.S., stated that the uncertainty surrounding Binance itself would diminish. “For crypto investors, the prospect of settlement would see the elimination of a potential systemic risk emanating from a hypothetical Binance collapse,” the bank said, according to an article published by digital asset news outlet The Block.GOPAX reaffirms partnership with Binance despite concernsGOPAX, a Korean fiat-to-crypto exchange that was acquired by Binance in February, also maintained a rather unexpected positive outlook. The acquisition had been followed by a complicated string of events hindering Binance’s full-fledged expansion in Korea, including delayed approval from the country’s Financial Intelligence Unit (FIU) to become a virtual asset service provider (VASP) and multiple leadership changes as a result.Investors in GOFi — GOPAX’s decentralized finance (DeFi) service — subsequently responded by filing a lawsuit at the end of June, claiming that financial authorities unjustly delayed the approval. They argued that, by approving the request, the FIU would enable Binance to provide the capital that GOPAX had struggled to gather to pay principal and interest payments on GOFi in the wake of last year’s FTX collapse.However, these circumstances did not sway GOPAX’s decision to work with Binance. “We learned of the news about Binance’s fine through articles from foreign media platforms,” GOPAX said. “Regardless, we are still in a business and technical partnership with the exchange.”Prospects for Binance’s landing in KoreaIn contrast to GOPAX’s seemingly positive outlook, the Korean crypto community has voiced mixed opinions about the effect of this development, especially on Binance’s successful entry into the domestic market.If GOPAX’s VASP approval had been delayed due to concerns about Binance’s suitability as its largest shareholder — incited by the legal risks it posed in the U.S. — the possibility of the approval going through may be more plausible as some of these risks have since been alleviated, said Yoon Seung-sik, an analyst at Seoul-based research firm Tiger Research.However, Jang Hye-won, an analyst at crypto data research platform Xangle, pointed out that interpretations may differ depending on the reasons behind FIU’s hesitation in approving the GOPAX acquisition. “If the concerns revolved around legal risks, then the path for Binance’s entry into Korea may seem cleared since those risks have been resolved. But if the concerns are about Binance’s capital inflow into the country, then this incident (Binance’s criminal case) will have no effect,” she explained.On the other end of the spectrum, some experts believe that this incident may have negatively affected the GOPAX acquisition. Hwang Suk-jin, a professor at Dongguk University’s Graduate School of International Affairs & Information Security and a member of the ruling People Power Party’s committee for virtual assets, stated, “Since criminal punishment for Zhao and the U.S. Securities and Exchange Commission’s (SEC) lawsuit are still pending, it’s hard to conclude that legal risks have been completely resolved. Binance paying a fine for money laundering may actually reinforce the FIU’s concerns about legal risks, making the GOPAX acquisition decisively unfavorable.”These statements come after a public opinion survey conducted earlier in June by Cratos, a Korean blockchain-based polling app, revealed that a 64.6% majority of respondents favored approving the GOPAX acquisition.