Korean Cafe Attracts Customers with NFTs

Experts Offer Insights into Bitcoin ETFs, Stablecoins, and On-Chain Data AnalysisDuring Korea Investment Week 2023, hosted by local newspaper Korea Economic Daily, experts in the field of virtual assets gathered at the Korea Exchange (KRX) PR Hall on Thursday. They came together to share their expertise on the cryptocurrency market and discuss various investment strategies.Key topics covered at the event ranged from the global outlook for virtual asset exchange-traded funds (ETFs) to the prospects of the US approving Bitcoin spot ETFs. Strategies based on on-chain data analysis were also on the agenda.Photo by Kanchanara on UnsplashThe potential of Bitcoin spot ETFsOne of the notable speakers, Lee Tae-yong, the Chief Global Strategy Officer at Wavebridge, a cryptocurrency market index provider, argued that the potential approval of Bitcoin spot ETFs could attract global investors to the market. He opined that this could subsequently improve market liquidity and contribute to stabilizing the Bitcoin market.Lee has made a prediction that Bitcoin spot ETFs will likely receive approval in the United States. He cited examples from Europe, Australia, and Brazil, where such financial products are already being managed effectively. He also suggested that the US Securities and Exchange Commission (SEC) would likely take note of this global trend and may find it challenging to go against it.Experts believe that among the various Bitcoin spot ETF applications submitted to the US SEC, Grayscale Investments’ proposal to convert the Grayscale Bitcoin Trust (GBTC) into an ETF stands the best chance of receiving approval first. Data from The Block indicates that the Grayscale Bitcoin Trust manages crypto assets totaling $16.13 billion as of September 7.Lee predicts that the approval of Bitcoin spot ETFs will serve as a pivotal milestone for the cryptocurrency market, potentially triggering a significant uptick in the price of Bitcoin. To support this assertion, Lee pointed to the historical precedent set by the introduction of a gold-backed ETF in 2004. Since its inception, the gold-backed ETF has swelled in value to exceed $45 billion. Importantly, gold does not have a fixed supply, yet the availability of an ETF mechanism boosted its value considerably. Lee argues that the impact on Bitcoin could be even more pronounced given its fixed supply cap.There was also a projection that virtual assets are set to play a crucial role in expanding the size of the ETF market, potentially more than doubling it. Lee pointed out that conventional ETFs typically charge fees of around 0.15%, whereas virtual asset ETFs tend to charge over 1%. This underscores that virtual assets are seen as a new revenue source among asset managers.Stablecoins and regulationsSome viewed that stablecoins would emerge as a focal point among the innovations taking place within the cryptocurrency industry. Kim Yong-beom, the CEO of Hashed Open Research and a former vice minister of the Ministry of Strategy and Finance, noted that Asia has been actively advancing regulations related to stablecoins. Stablecoins are a category of cryptocurrencies that are pegged to traditional fiat currencies like the US dollar.Highlighting the efforts of many countries to develop a comprehensive regulatory framework for cryptocurrencies, Kim noted the importance of establishing regulations that accommodate stablecoins. In his view, the introduction of such regulations will amplify the impact of stablecoins within the market.Kim mentioned that Asian countries are leading in blockchain research and digital competitiveness. He said that Asian universities, particularly those in China, are among the world’s best in producing blockchain research papers and offering related lectures. Kim also pointed out that while the leadership in the blockchain industry has shifted towards Asia, South Korea is now emerging as a prominent hub for virtual assets in the region. He emphasized the need for South Korea to position itself as a more influential nation in this context.On-chain data and investmentDuring the event, a cryptocurrency investment strategy based on on-chain data was also presented. On-chain data refers to publicly accessible information about transactions conducted on a blockchain network. This data can be utilized as an investment indicator that is not available within the traditional financial sector.Ju Ki-young, the CEO of on-chain analytics resource CryptoQuant, underlined that virtual asset investors are particularly interested in tracking who is selling which tokens at any given moment. He stressed that examining on-chain data, such as deposit and withdrawal information from major cryptocurrency exchanges, can be a valuable tool for risk mitigation.

A subsidiary company of Tiger Brokers, a Singapore-based online brokerage firm with nine million users, has been awarded a virtual asset trading license in Hong Kong. The subsidiary, YAX (Hong Kong) Limited, has been added to a list of licensed virtual asset trading providers (VATPs) on the website of the local regulator, the Securities and Futures Commission (SFC). Photo by Simon Zhu on UnsplashSeven platforms licensedBack in August, YAX found itself among a list of 11 VATP applicants that had been provided with feedback with regard to issues that needed to be addressed following inspections carried out by the SFC. Evidently, those issues have been resolved given that the company has now been awarded a trading license. YAX is now just one of nine trading platforms that have obtained licenses in the Chinese autonomous territory. These include OSL and HashKey, who were the first entities to be licensed in Hong Kong. HKVAX followed with approval granted in August 2023. Last October, SFC CEO Julia Leung told local news media that the regulator was dealing with 11 applications and that four approvals were imminent. In December, four additional exchanges, namely HKbitEX, Accumulus, DFX Labs and EX.IO, were awarded licenses. Bixin.com, WhaleFin and Matrixport HK are among the eleven applicants that have yet to receive a license. Alongside YAX, Panthertrade (Hong Kong) Limited was issued a license on Jan. 27, meaning that seven platforms have now been licensed. Panthertrade is a subsidiary company of Chinese mobile internet firm Cheetah Mobile.  Crypto trading and custodyOnce launched, YAX intends to extend crypto trading services alongside crypto custody to its clients. The company’s CEO, Kelvin Liu Kai, has said that as it rolls out its service offering, YAX will look to enhance speed trading, focus on transparency and security relative to the trading process and reduce custodial risks.  Tiger Brokers CEO Wu Tianhua has suggested that the virtual asset sector has grown rapidly on a global basis and with that, he sees “immense potential” for further growth. He added:“Cryptocurrencies are a key future investment trend. The establishment of YAX not only demonstrates our confidence in the potential of the market, but also showcases our firm commitment to creating a transparent and secure trading environment.” Swift licensing processThese latest licensing applicant approvals follow confirmation earlier this month that the SFC had extended access to its swift licensing process to all new VATP applicants. The four applicants approved in December had been the first to be put through the process.  In December, Joseph Chan, Acting Secretary for Financial Services and the Treasury (FSTB), confirmed to Hong Kong’s Legislative Council that in addition to the swift licensing process, a consultative panel for licensed trading platforms will be established in early 2025. It emerged in October 2023 that both YAX and Panthertrade were planning on submitting applications for VATP licensing in Hong Kong. With licensing pending, YAX parent company Tiger Brokers partnered with HashKey Exchange in May 2024, in order to launch a virtual asset trading service.  The service was made available to retail investors through the Tiger Trade platform the following month, enabling the platform’s 800,000 users to trade Bitcoin and Ethereum.

Blockchain security audit firm Verichains has joined as one of WEMIX’s 40 WONDERS, or Node Council Partners (NCP), on the WEMIX3.0 blockchain, according to an official announcement on Tuesday (KST).Photo by Shubham Dhage on UnsplashEmpowering community governanceThe 40 WONDERS make up a governance council that represents the interests of the WEMIX community by participating in on-chain voting processes for improving or changing WEMIX3.0’s protocol. They are also responsible for validating transactions and operating nodes on the mainnet to boost and maintain its integrity and security. Each member gets to choose their own WONDER number, and Verichains has joined as WONDER 12. Securing the Web3 frontierVerichains is a leading provider of blockchain security services, specializing in crypto analytics, security audits and application protection. Recognized for its participation in investigating and mitigating some of the most notorious hacks to date in Web3 history, such as the Ronin Bridge and BNB Chain Bridge hacks, the company merges groundbreaking research with practical security solutions to deliver comprehensive protection solutions catered to the blockchain industry. Verichains’ world-class security and cryptography research team has successfully identified critical vulnerabilities across the industry capable of causing disruptions worth billions of dollars through key actions like uncovering flaws within Multi-Party Computation (MPC) and Zero-Knowledge Proofs (ZKP) mechanisms developed by major vendors. As a trusted security partner to leading Web3 companies and cryptocurrency exchanges like BNB Chain, Polygon Labs, Aptos, Klaytn, Bullish, DWF Labs and now WEMIX, Verichains leverages its background and expertise in traditional cybersecurity to be translated into the upcoming Web3 era, delivering cutting-edge solutions for a safer, more secure Web3 ecosystem. The firm’s participation as an NCP is poised to boost the security and stability of the WEMIX platform, laying the necessary groundwork for fostering the expansion of the WEMIX ecosystem. Ubisoft’s recent joiningAside from Verichains, global gaming company Ubisoft also joined the council as WONDER 26. Ubisoft is known for world-renowned games like Assassins’ Creed, Just Dance, Far Cry and Watch Dogs, and has been developing a new game called Champions Tactics, built on the Oasys blockchain.