Intella X Teams Up with Web3 Comm Protocol to Boost Game Experience

Calls for Regulation of Crypto Investment Management Firms Amidst Growing ConcernsThere have been recent calls in South Korea for crypto investment management companies to be subject to the Financial Investment Services and Capital Markets Act amidst concerns about potential regulatory blind spots negatively impacting crypto investors.Photo by Conny Schneider on UnsplashPushing for regulatory oversightKang Seong-hoo, chairman of the Korea Digital Asset Business Association (KDA) went into detail regarding the issue during a forum held by the association on Thursday to discuss the efficient use of technology and safety management in the era of the digital economy.He emphasized that dealings related to virtual asset management such as deposits, lending, and staking must be regulated by authorities under the Financial Investment Services and Capital Markets Act. This is due to the fact that crypto investment management companies are not within the purview of the Act On Reporting and Using Specified Financial Transaction Information or the Virtual Asset User Protection Act, the latter of which is set to take effect next year.The Act On Reporting and Using Specified Financial Transaction Information defines financial companies as those that provide services for selling, buying, exchanging, transferring, keeping, or managing virtual assets; or act as a broker, intermediary, or agent for these services. However, there is no mention of crypto management companies.Echoes of past crypto platform controversiesThese concerns are driven by the looming possibility of another debacle like the class-action lawsuits against crypto platforms like Haru Invest or Delio arising again as a result of regulatory gray areas. Two months ago, investors had filed a legal complaint after the two lenders unexpectedly suspended customer deposits and withdrawals, claiming that they suffered around KRW 50 billion (approximately $39 million at the time of the incident) in damages as a result.Furthermore, the Financial Intelligence Unit (FIU), a division under the Korean Financial Services Commission (FSC), recently stated in a report that virtual asset deposits, lending, and DeFi services do not fall under the obligations of the Act On Reporting and Using Specified Financial Transaction Information.“Given the context of the ongoing crypto winter since last year, the business model of virtual asset management companies, which is heavily reliant on arbitrage between exchanges, poses a high risk of incidents similar to the Haru Invest and Delio cases,” said Chairman Kang.“In order to ensure virtual asset user protection and market safety, authorities should promptly explore regulatory measures under the Financial Investment Services and Capital Markets Act for virtual asset management such as deposits, lending, staking, and the like.”

South Korean FIU rejects Hanbitco’s bid to become fiat-to-crypto exchangeWhile numerous cryptocurrency-only exchanges in Korea have been vying for registration as fiat-to-crypto exchanges with the financial regulator, the government has turned down another platform’s attempt to achieve this status.Photo by Dim Hou on UnsplashUnmet standardsAccording to a report from local news provider MoneyToday, the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) recently convened a committee that decided against approving Hanbitco’s request to change its business status. Industry sources suggest that this decision was based on Hanbitco’s inability to meet the standards set by the Act on Reporting and Using Specified Financial Transaction Information, often referred to as the Financial Transaction Reporting Act.Fine and cautionary orderA person familiar with the matter that the committee started deliberating on Hanbitco’s request to alter its business status about two weeks ago and ultimately decided against it. A significant factor in this decision might have been the KRW 2 billion ($1.49 million) fine levied on Hanbitco, stemming from numerous violations found in recent on-site inspections, the source added.Before approaching the FIU with its request, Hanbitco formed a partnership with Kwangju Bank in June to obtain real-name accounts, facilitating Korean won deposits and withdrawals. Achieving this is quite uncommon for a crypto-only exchange. In Korea, exchanges are legally required to have real-name bank accounts for trading in Korean won. Presently, only five platforms hold registration as fiat-to-crypto exchanges: Upbit, Bithumb, Coinone, Korbit and Gopax, each having its own banking partnership.As per the details released by the FIU, besides the levied fine, Hanbitco was issued a cautionary order, and five of its employees faced reprimands.The fine of KRW 2 billion is the heaviest handed out to a virtual asset service provider from on-site inspections held between last year and the first half of this year. For perspective, Upbit, the country’s largest crypto exchange, was fined KRW 80 million.An FIU representative noted that during the evaluation of Hanbitco’s application to transition into a fiat-to-crypto exchange, factors such as the firm’s anti-money laundering (AML) protocols, its internal control systems and past sanctions played a role in the decision-making process.

The Turkish Lira (TRY) has become the third largest fiat currency by volume in the cryptocurrency market, according to a report by Kaiko. This milestone was reached as TRY's share of the crypto market hit an all-time high of 19% in early June. The increase in volume is attributed to the country's economic challenges, notably its high inflation rate, which has surpassed 70%, making the lira one of the most volatile fiat currencies globally.Photo by Afdhallul Ziqri on UnsplashFactors influencing the increaseThe shift in the Turkish lira's position in the crypto market is partly due to increased foreign exchange volatility and currency devaluation, common catalysts for cryptocurrency adoption in developing economies. Additionally, geopolitical factors such as a record number of elections and diverging monetary policies have intensified market fluctuations. This environment has favored cryptocurrencies like Bitcoin, which reached new highs against the lira in recent months. For instance, Bitcoin escalated to 2.3 million TRY in March from 979,000 TRY in October 2023. The recent adjustments in cryptocurrency trading platforms, particularly Binance's delisting of certain fiat trading pairs due to banking issues, have also increased the dominance of TRY in crypto transactions. This series of events underscores the growing interconnection between traditional and digital finance markets, highlighting the increasing role of cryptocurrencies in regions facing economic instability.