Superscrypt Backs Airstack’s Web3 Developer Platform

Despite interest expressed by a Japanese lawmaker earlier this month for Japan to establish a strategic Bitcoin reserve, the country’s prime minister has declined to offer support for the idea.Photo by Su San Lee on UnsplashInsufficient informationJapanese crypto media outlet CoinPost reported on Dec. 26 that the country’s prime minister, Shigeru Ishiba, refrained from endorsing the notion of a Japanese strategic Bitcoin reserve on the basis that he and his government lack sufficient information on the subject. With that, Ishiba feels that it’s “difficult for the government to express its views” on the matter. The Japanese prime minister was prompted to offer his views on the subject having been queried by Japanese Member of Parliament (MP), Satoshi Hamada. During a question and answer session earlier this month, Hamada cited the United States and Brazil as examples of states that are currently considering the addition of Bitcoin as a reserve asset.  The Japanese lawmaker suggested that policymakers in those countries were leaning towards the consideration of Bitcoin as a hedge against economic risks, and that on that basis, he believed that the Japanese government should give the use of Bitcoin as a national reserve asset consideration. Hamada stated: “I think Japan should follow the example of the United States and consider turning some of its foreign exchange reserves into crypto assets such as Bitcoin.” Ishiba has responded by stating that his government lacks sufficient information relative to this “movement of introducing Bitcoin reserves that the United States and other countries are proceeding with.” Additionally, the Japanese government maintains that stability and liquidity are of paramount importance when it comes to the country’s foreign exchange reserves. With those factors in mind, it believes that Bitcoin is incompatible due to its price volatility. Unsustainable debt levels Some proponents of Bitcoin suggest that it offers a way forward for countries that have developed an unsustainable level of debt. In an X post published on Dec. 27, Thomas Jeegers, chief financial officer (CFO) at Swiss Bitcoin-only app enterprise Relai, set out a case for Bitcoin on that basis. Jeegers outlined that the United States has a debt of $36 trillion, accounting for 120% of gross domestic product (GDP).  He describes the Japanese scenario as being considerably worse, where the country’s debt accounts for 200% of GDP. Jeegers forecasts that the trajectory is unsustainable, with debt having grown “far beyond manageable levels.” The Relai CFO warns that the financial world is at breaking point and “it’s not a matter of 'if' but 'when' the system buckles under its own weight.” Earlier this month, investment manager VanEck published a report claiming that a strategic Bitcoin reserve could facilitate the U.S. in reducing its national debt by up to 36% by 2050. Like Japan, Russia has also decided against a strategic Bitcoin reserve. Although Finance Minister Anton Siluanov pointed towards Bitcoin’s unit price volatility being an issue, he is open to reassessing the matter in the future.

South Korea's Democratic Party of Korea (DPK) plans to introduce a bill this week aimed at establishing a legal framework for digital assets, according to Edaily. The move is part of the party's ongoing efforts to advance its crypto policy agenda ahead of the upcoming presidential election. The proposed law would define the legal status of digital assets and set rules for their issuance, distribution and listing. The bill is expected to keep the requirement for Korean won-pegged stablecoin issuers to obtain authorization with a minimum reserve of 5 billion won ($3.58 million), a key point of debate.Photo by Brady Bellini on UnsplashA DPK official stated that the bill has been drafted and is set to be introduced to the National Assembly this week, following feedback from internal subcommittees. Most of the provisions remain consistent with last month’s draft, but final comments are still being collected on stablecoin reserve requirements, which have been a major point of discussion. Defining digital assetsThe bill defines digital assets as "electronic records with economic value based on blockchain technology" and establishes a regulatory framework for issuers, exchanges and custodians. Key provisions include permitting initial coin offerings (ICOs) and creating a digital asset committee under the Financial Services Commission (FSC). This committee would oversee legal framework design, market monitoring, and policy promotion. Additionally, an industry association will establish a separate committee to oversee token listing practices, ensuring consistent listing standards across exchanges. The most contentious part of the draft has been the regulations for won-based stablecoins. It classifies stablecoins as digital assets akin to fiat currency, requiring a minimum reserve of 5 billion won and authorization from the FSC. It also mandates real-time reserve disclosures, secure asset custody and quarterly reporting. Divide over stablecoin reserve requirementOpinions on the reserve requirement are divided. Some industry insiders argue that the 5 billion won threshold is too high, creating a barrier for startups. Others believe a minimum capital requirement is necessary due to stablecoins' role in payments and their potential as currency substitutes. Lee Jung-yup, president of the Blockchain Law Society, stressed that stablecoins must maintain a basic level of trust, warning that those failing to meet the 5 billion won threshold could become prone to insolvency or fraud. However, Lee acknowledged concerns about the centralized regulatory approach led by financial authorities and the potential for market dominance by large corporations. He suggested exploring the creation of an independent regulatory body for cryptocurrencies, warning that overly strict regulations could stifle domestic digital finance innovation amid growing global competition. Crime surges with market growthWhile regulations continue to evolve, crypto crimes are also rising sharply amid the expanding digital asset market. According to Segye Ilbo, South Korean police arrested about 2,100 individuals for crypto-related offenses last year—17 times more than in 2017, when data collection began. The total losses from such crimes now exceed 1 trillion won ($714 million) annually. Since the election of U.S. President Donald Trump, known for his crypto-friendly stance, Korea's crypto market has experienced rapid growth. This surge has raised concerns about an increase in fraud targeting investors chasing quick profits. 

South Korea and Canada have agreed to strengthen cooperation against cyber threats, including North Korea’s theft of virtual assets, following their inaugural cyber policy consultations.Photo by Hermes Rivera on UnsplashAccording to News1, South Korea’s foreign ministry announced that the talks took place at its Seoul headquarters. Both sides agreed on the need for closer coordination to effectively counter cybercrimes—such as North Korea-linked crypto theft and online scams—as well as emerging cyber threats driven by artificial intelligence. They also committed to exploring concrete avenues for bilateral cooperation. The delegations exchanged views on response mechanisms for the recent surge in cyber intrusions, sharing case studies on how such incidents have been handled. They also agreed to strengthen prevention efforts by improving information sharing and speeding up communication across multiple channels when incidents occur. The foreign ministry noted that the meeting marks a significant step toward enhanced cybersecurity cooperation, as the two nations share policy approaches and explore practical collaboration under their comprehensive strategic partnership. Bithumb staff form labor unionMeanwhile, employees in the crypto sector are beginning to organize to safeguard their rights. An exclusive report by NewsWhoPlus revealed that a labor union has been established at Bithumb, one of South Korea’s major crypto exchanges. The union has affiliated with the Federation of Korean Public Trade Unions, which operates under the umbrella of the Federation of Korean Trade Unions. The union stated it will serve as a forum to discuss and improve employee welfare and working conditions. In response, Bithumb said it is reviewing reports of the union’s formation to gather more details. The company emphasized its respect for employees’ rights and affirmed it will respond in accordance with relevant laws and procedures. Industry readies for stablecoin oversightElsewhere in the industry, companies are proactively positioning themselves for regulatory shifts. As South Korea’s Digital Asset Basic Act—the second phase of the country’s crypto legislation, which is expected to address assets like stablecoins—begins to take shape, businesses are moving early to prepare for the anticipated changes. Edaily reported that Lambda256, an affiliate of Upbit operator Dunamu, is forming a strategic consultative group focused on stablecoins. To this end, the company has signed a tripartite memorandum of understanding (MOU) with the law firm Yulchon and SAS Korea. Under the agreement, the partners will combine their expertise in blockchain technology, legal services, and data analytics. They aim to establish a joint framework to navigate key legal and regulatory issues surrounding stablecoins and other digital assets. This cooperation will encompass anti-money laundering (AML) protocols, financial crime prevention, internal controls, risk management, and the legal structuring of related product offerings. On the financial and regulatory front, the partners plan to refine practical AML compliance and internal control measures for financial institutions. By continuously analyzing shifts in digital asset regulations and broader market trends, they intend to develop practical compliance frameworks that financial firms and other businesses can readily adopt.