LDP Working Group Proposes Web3 Industry Plan to Japan’s Prime Minister

Singapore Judge Says Crypto Not MoneyIn recent years, legal processes in various jurisdictions worldwide have seen judges comment on whether cryptocurrency is actually money. The latest such determination has been made by Justice Vinodh Coomaraswamy who outlined in a Singapore court that while being a component of financial transactions, cryptocurrencies are not money.The consideration emerged in a recent court hearing at Singapore’s High Court in a case involving the Algorand Foundation and failed Singapore-based hedge fund, Three Arrows Capital (3AC). Justice Coomaraswamy’s comments arose due to a discussion in the midst of the court proceedings involving the Judge and counsel representing the Algorand Foundation.©Pexels/EKATERINA BOLOVTSOVASeashells as moneyIn setting out his rationale for the need for 3AC to be wound up, Daniel Chan, a lawyer for the WongPartnership law firm that was representing the Algorand Foundation in the proceedings, told the judge that despite foreign currencies not being recognized as legal tender in Singapore, or used broadly as a medium of exchange within the city state, those foreign currencies are recognized by Singapore law as money. Using that analogy Chan suggested that by implication, the same scenario should be considered where cryptocurrencies are concerned.The judge provided a counterpoint: “What if you had a [community] in the world that used seashells as its internal medium of exchange? Would the Singapore courts have to recognize that as money.” Chan claimed that the judge had used an extreme example although Coomaraswamy remained steadfast in his view, pointing out that seashells had indeed been used as a form of money in the distant past.Coomaraswamy proceeded to dismiss the Algorand Foundation’s winding up application. He acknowledged that the Foundation did have standing in bringing the application. However, as he determined that cryptocurrency couldn’t be classed as money, on that basis he dismissed the application. In conveying his decision, he stated: “The word indebtedness, in my view, must require a debt which is in fiat currency. Determining whether or not a particular intangible, such as cryptocurrency, is money would require a detailed examination of evidence which is not appropriate in the context of insolvency.”Legal tenderThus far, bitcoin has been recognized as legal tender in two countries — El Salvador and the Central African Republic. In 2020, a French court referred to the leading cryptocurrency as money, agreeing that Bitcoin loans can be recognized as customer loans in the same way as loans denominated in fiat currencies. Earlier that year, an Australian court recognized bitcoin as a legally legitimate form of investment. In the United States, a Federal court recognized bitcoin as “money” or “funds” in a prosecution taken against Silk Road website operator Ross Ulbricht.There have been many similar instances in courts globally where judges have had to grapple with the consideration of whether bitcoin and crypto more generally can be regarded as money. Similar to the difficulty authorities are having in regulating cryptocurrency, it’s an issue that in most cases lacks complete clarity and in which we can expect further discussions on, similar to this most recent consideration in the Singaporean high court.

KuCoin CEO: Privacy Not a Key Bitcoin FeatureJohnny Lyu, the CEO of Seychelles-headquartered cryptocurrency exchange KuCoin, recently shared his perspective on the role of privacy in Bitcoin, maintaining that privacy isn’t the primary feature of the leading digital asset that many believe it to be.Photo by Karolina Grabowska on PexelsUnit of exchange is coreIn an interview with Cointelegraph earlier this week, Lyu expressed his belief that privacy is not the core feature of Bitcoin. He argued that the primary benefit of Bitcoin lies in its function as a unit of exchange, enabling users to hedge against recessions.Lyu drew a connection between the creation of Bitcoin and the 2008 financial crisis, which was triggered by the subprime mortgage crisis in the United States. According to him, these events served as the catalyst for the birth of Bitcoin. However, he made it clear that privacy is just one of the features offered by the cryptocurrency.KYC safeguarding customer fundsAddressing concerns about the increasingly stringent Know Your Customer (KYC) checks being implemented by KuCoin, Lyu emphasized the importance of these measures in safeguarding user funds. While some individuals argue that stringent KYC practices compromise privacy, the CEO believes that they enhance security. He explained that KYC procedures protect users’ assets by establishing ownership and enabling asset tracking in the event of theft.As the cryptocurrency industry continues to expand and interact with the physical world, compliance becomes crucial. Lyu expressed his belief that KYC checks are an inevitable and healthy stage in the development cycle of cryptocurrencies. Compliance measures contribute to the industry’s long-term stability and promote user confidence.New restrictionsKuCoin recently announced that starting from July 15, 2023, mandatory KYC checks will be implemented for all new users. This means that without completing the KYC process, new users will be unable to access KuCoin’s products and services. Existing users who have not undergone KYC will still be able to trade but will face restrictions on depositing new funds.Lyu acknowledged that these new KYC restrictions may impact KuCoin’s trading volumes in the short term, as some customers may choose to leave. However, the exchange remains optimistic about the long-term benefits of compliance. The CEO expressed confidence that increased compliance will attract more secure funds and users to the industry, ultimately enhancing the overall security and integrity of the ecosystem.KuCoin currently boasts 27 million users, reflecting a 35% increase compared to the previous year. Following the announcement of the KYC upgrades, the exchange experienced a notable uptick in trading volumes, with figures rising from around $540 million to over $660 million at the time of writing, according to CoinGecko data.The introduction of mandatory KYC checks is seen as a necessary step to enhance user security and protect their assets. Although short-term effects on trading volumes are anticipated, the exchange remains optimistic about the long-term benefits of compliance measures for the entire industry.

Koscom Adds Crypto Market Data to Investment Data Platform CHECK Expert+South Korean financial IT company Koscom Corp. said Wednesday that it has started offering market data for virtual assets on its investment analysis information terminal service, CHECK Expert+. CHECK Expert+ provides a variety of information and news on foreign exchanges, bonds, overseas markets, and more to professional investors.Photo by Sajad Nori on UnsplashCross-platform data collectionStarting last month, Koscom has been combining the market price information of virtual assets that are scattered across the websites of four major domestic and foreign virtual asset exchanges into one platform on CHECK Expert+. By doing so, investors can now easily compare the current prices of different assets traded on multiple platforms.Cryptos compared with other assetsThrough the terminal, investors can also compare the performance of the popular cryptocurrency Bitcoin with other assets across exchanges such as KOSPI, KOSDAQ, S&P500, NASDAQ, and the US 10-Year Treasuries. This feature allows for more intuitive and straightforward performance comparisons.Given the fact that prices of the same asset can vary depending on the exchange, this service can provide investors with a broader perspective and allow them to make more informed decisions, Koscom said.“This is our first step into virtual asset-related market data services. Leveraging our experience in operating CHECK Expert+ and our expertise in processing capital market data, we aim to provide valuable investment information in the virtual asset market to our users,” said Hwang Sun-jeong, the Executive Director of Koscom.This move by Koscom reflects the growing interest and relevance of the virtual asset market in Korea, and CHECK Expert+ is expected to provide investors with valuable insights in the midst of a rapidly evolving financial landscape.