Korean Firms Team Up to Boost Biofuel Use Through Blockchain Tech

South Korea’s financial regulator is preparing a second major cryptocurrency bill that would expand investor protections, strengthen stablecoin safeguards, and potentially impose governance changes at the country’s largest exchanges, as domestic token projects warn that regulatory uncertainty is curbing growth. The Financial Services Commission (FSC) is drafting the Digital Asset Basic Act, a so-called “phase two” bill that follows an earlier virtual asset user protection regime which took effect in July 2024. According to Yonhap News, the bill is expected to address stablecoin risks by requiring issuers to hold reserve assets in instruments such as bank deposits and government bonds, and to deposit or place in trust at least 100% of outstanding issuance with banks or other designated custodians. It would also extend existing financial-sector rules to crypto firms in areas including disclosures, terms and conditions, and advertising. In addition, the proposal could impose no-fault liability on virtual asset service providers for losses stemming from hacks or system failures, in line with standards under Korea’s Electronic Financial Transactions Act, which governs traditional financial institutions and payment services.Photo by Timothy Ries on UnsplashGovernance dominance at exchangesA separate report by KBS said the draft bill includes measures to overhaul governance at South Korea’s four major crypto exchanges—Upbit, Bithumb, Coinone, and Korbit—which together serve about 11 million users. The FSC has raised concerns about concentrated control by founders and major shareholders, and is considering a governance framework similar to that applied to alternative trading systems (ATS) under Korea’s Capital Markets Act. That could include limits designed to prevent any single shareholder from holding too much control, capping controlling stakes at around 15% to 20%. Under Korea’s current Capital Markets Act, an ATS is generally barred from holding more than 15% of voting shares, including those held by related parties, with limited exceptions allowing stakes of up to 30%. If similar limits were applied to crypto exchanges, the changes could affect Dunamu, the operator of Upbit. Dunamu Chairman Song Chi-hyung holds a stake in the mid-20% range and, under the proposal as described, could face pressure to sell roughly 10% of his holdings. The proposal could have implications for the deal, as Dunamu is pursuing a merger with Naver Financial through a comprehensive stock swap. While the bill’s broad outlines are taking shape, regulators are still working to narrow differences over stablecoin rules, and the final proposal is expected to be submitted to the National Assembly next year. Key unresolved issues include eligibility requirements for stablecoin issuers, whether to establish an interagency consultative body during the licensing process, initial capital thresholds, and whether a single entity should be allowed to both issue and distribute stablecoins. The core dispute centers on who should be allowed to issue stablecoins. The Bank of Korea is said to favor limiting issuance to consortia in which banks hold at least a 51% stake, while the FSC is believed to oppose writing a mandatory bank ownership threshold into law, arguing that such a requirement could limit broader participation by technology firms. ‘Kimchi coin’ listings stall amid cautionEven as policymakers push ahead, regulatory uncertainty is curbing growth among South Korean blockchain projects. News1 reported that Upbit listed only one token from a domestic project in 2025, out of 54 tokens added for trading since the start of the year—the native token of Story, a peer-to-peer intellectual property network powered by blockchain and co-founded by Korean entrepreneur Lee Seung-yoon. Upbit also removed 10 tokens during the period, seven of which were so-called “kimchi coins,” a colloquial term for tokens originating in South Korea or developed by Korean teams. Industry participants attribute the removals to increasingly risk-averse behavior by exchanges amid regulatory uncertainty, which can complicate promotional efforts and trust-building while constraining early-stage liquidity. TradFi players seek crypto integrationsWhile local token projects face headwinds, interest from traditional financial institutions appears to be picking up. Chosun Biz reported that Mirae Asset Financial Group is considering an acquisition of Korbit, with its non-financial affiliate Mirae Asset Consulting seen as a potential buyer of shares from major shareholders NXC and SK Planet. Industry analysts estimate the deal could be worth up to 140 billion won ($97 million). The group’s founder, Park Hyeon-joo, has said he is developing a strategy to bridge traditional and digital assets, arguing that it is time to prepare for the next wave of financial innovation. In payments, EBN Industrial News reported that BC Card has signed a memorandum of understanding (MOU) with U.S.-based crypto exchange Coinbase to test USDC payments in South Korea. The pilot would integrate BC Card’s QR payment system with wallets on Coinbase’s Base blockchain to assess whether USDC can function as a viable payment method at local merchants. 

Dubai Regulator Suspends BitOasis’ Crypto LicenseDubai’s pioneering cryptocurrency exchange, BitOasis, has had its operating license suspended by the city’s cryptocurrency regulator for failing to meet key conditions within the required timeframes. The Virtual Assets Regulatory Authority (VARA) took enforcement action against BitOasis and initiated a review of the Dubai-based firm.BitOasis was granted a conditional license on April 12, which allowed it to operate on the condition that it met specific requirements within 30 to 60 days. However, the exchange has failed to fulfill these conditions, leading to the suspension of its license. VARA did not disclose the exact nature of the unmet conditions, but it stated that until they are satisfied, BitOasis’ “License for Institutional and Qualified Retail Investors” will remain non-operational.Photo by iridial on UnsplashFirst MVP broker-dealer license holderBitOasis had received the first “minimum viable product operational license” from VARA, enabling it to offer broker-dealer services to qualified institutional and retail investors in Dubai. This license represents a crucial step towards obtaining a full market product (FMP) license, but as of now, no firm has been issued an FMP license by VARA.To become eligible for the FMP license, BitOasis must fulfill the conditions specified in its current license, as outlined by VARA. The regulatory authority has emphasized its commitment to monitoring the situation for compliance remediation.OPNX reprimandThis recent development follows VARA’s reprimand of Su Zhu and Kyle Davies, the co-founders of the now-defunct crypto hedge fund Three Arrows Capital, in April. The duo had operated and promoted their new OPNX crypto exchange in Dubai without the necessary license, catching VARA’s attention.BitOasis addressed the regulatory concerns in a blog post on Tuesday, affirming its collaboration with VARA to meet the remaining conditions for the Operational MVP License. The exchange clarified that the issue with its license does not impact other services provided, such as broker-dealer services for existing retail users. It also took to Twitter on Tuesday to clarify the situation. The company has suspended new user registrations until further notice, presumably as it works towards meeting VARAs licensing requirements.BitOasis stated: “You can continue to use BitOasis with the assurance that your assets are safe, secure, and held at their full value on our platform, and our team will continue to cooperate with the Virtual Asset Regulatory Authority and fulfill all post-operational license terms, as well as working towards a full market product license.”The firm referred to the “unique challenges” that are associated with licensing and suggested that it is determined to address them and to “be a leader in the virtual assets sector.”The suspension of BitOasis’ license highlights the stringent regulatory environment in Dubai’s cryptocurrency sector. VARA is demonstrating that it remains committed to enforcing compliance and ensuring that crypto exchanges meet the necessary requirements. BitOasis must rectify the issues and meet the conditions of its license to regain its operational status and proceed towards obtaining the coveted full market product license in the future.

Strategic Shift Sees Wintermute Expand Singapore BaseCrypto market maker Wintermute is making a strategic shift towards Asia, specifically in Singapore, following the digital asset industry’s growing interest in the region’s growth opportunities.Photo by Hu Chen on Unsplash4% of staff moving to SingaporeIn an interview with Bloomberg last week, Wintermute Co-Founder Yoann Turpin said he will move from London, where the company is currently headquartered, to Singapore in the coming months. Additionally, approximately 4% of the company’s workforce, which currently comprises around 85 staff members, will also relocate to the city-state, where Wintermute conducts its derivatives business.At the time of publication, the company was also actively recruiting for an open position in the city-state. In further publicizing Wintermute’s developing presence in Singapore, Turpin took to social media recently to invite people to meet Wintermute’s Singapore-based team in September at Token 2049 Singapore. Evgeny Gaevoy, Wintermute Co-Founder and CEO, is scheduled to appear as a speaker at the event.Turpin emphasized the company’s focus on Asia and highlighted the significance of having a co-founder based in the region to drive the business forward. The move comes as the crypto industry faces the aftermath of a crackdown in the United States, triggered by bankruptcies at platforms like FTX and Celsius Network.Exploring global opportunitiesIn response, crypto businesses are exploring opportunities in Asian markets, with countries like Singapore, Hong Kong, Japan, and the United Arab Emirates vying to attract companies while ensuring robust regulatory frameworks in the wake of the market turbulence in 2022.Although tokens like Bitcoin and Ether have partially recovered from the crash experienced last year, spot digital-asset trading volumes and volatility have remained low, indicating reduced investor engagement. That said, demand for crypto futures and options has proven to be more resilient.Possible Dubai expansionWintermute established an office in Singapore in 2021, adding to its existing base in London. Turpin also confirmed to Bloomberg that the company is weighing up the possibility of establishing a third office in Dubai as part of its expansion plans. Dubai, like Singapore and Hong Kong, has been actively trying to attract crypto businesses over the course of the past twelve months.During the 2021 crypto bull market, the company reported trading volume worth $1.5 trillion and generated $1.05 billion in revenue. However, the market maker also faced challenges during the market turmoil, including exposure to around $55 million of assets on FTX. Moreover, in September of the same year, Wintermute experienced a hack that resulted in a loss of about $160 million from its decentralized finance operations.Despite the hurdles faced in 2022, Turpin expressed confidence in the company’s resilience and stated that they do not have immediate plans to raise funds. The company just celebrated six years in business, and has executed 8.4 million OTC trades over the course of the past twelve months.By relocating key personnel and expanding its presence in Singapore and possibly Dubai, the company aims to strengthen its foothold in the Asian market and navigate the challenges and opportunities that lie ahead.