Hong Kong’s GSBN Takes Lead in Blockchain Logistics

dYdX Foundation CEO Shares the Importance of Korean Developers of the Cosmos NetworkDecentralized crypto derivatives exchange dYdX is in the midst of a significant transition, as it prepares to move away from its current Ethereum-based layer-2 protocol to Cosmos, a decentralized network of independent blockchains. Meanwhile, senior members of the dYdX Foundation, a Swiss-based not-for-profit entity behind the derivatives exchange, paid a visit to South Korea on the occasion of Korea Blockchain Week: KBW2023, which is an annual event that spans from September 4 to 10 this year.Photo by Mariia Shalabaieva on UnsplashBusy Q4Regarding the upcoming v4 update on a Cosmos-based blockchain, Charles d’Haussy, the CEO of the dYdX Foundation, shared his thoughts in an interview with CoinNess. He expressed anticipation for a bustling fourth quarter this year but also acknowledged that the exact timeline remains uncertain, as it hinges on the voting processes, including one for bridging tokens to Cosmos, within the dYdX community.Utility token on v4As part of dYdX’s migration to Cosmos, its governance token will undergo a transformation into a utility token. The forthcoming dYdX v4 will be fully decentralized, with 100% of the fees collected from the exchange distributed to stakers and validators. Following the completion of this migration, the current dYdX protocol on Ethereum will eventually become deprecated.Exclusive focus on crypto derivativesIn a significant milestone, dYdX achieved over $1 trillion in total trading volume on its Layer 2 platform on July 14 of this year. d’Haussy expressed pride in this achievement and highlighted that dYdX’s competitive edge lies in its exclusive focus on crypto derivatives.DeFi mullet memeAlthough DeFi derivatives trading currently represents just 1% of the overall crypto derivatives volume, d’Haussy is optimistic about its future growth, predicting an acceleration. In a parallel to how traditional banks offer an array of products that originate from external entities such as brokerages and insurance companies, Charles d’Haussy envisions that centralized exchanges will provide a diverse range of offerings sourced from decentralized platforms. He expressed his strong belief in the idea encapsulated by the DeFi mullet meme, which features the phrase “Fintech In The Front, DeFi In The Back.”Top-tier Cosmos builders in KoreaWhen asked about his visit to Korea, d’Haussy emphasized the presence of top-tier Cosmos builders in the country. He underscored South Korea’s importance within the Cosmos ecosystem, highlighting that 10% of dYdX’s testnet participants are Korean companies.

As the South Korean capital market eyes the burgeoning potential of security token offering (STO) businesses, Koscom, a financial IT company, is increasingly coming into focus among securities firms for its dedicated STO platform. With four securities companies already in partnership, Koscom is actively seeking to expand its collaboration network further. Koscom is a technology subsidiary of Korea Exchange, the country’s only securities exchange operator.More partnerships with securities firmsAccording to its press release published a few weeks ago, Koscom inked a memorandum of understanding (MOU) with Yuanta Securities Korea, the South Korean branch of the Taiwanese retail broker. Through the partnership, the two entities pledged to collaborate on developing blockchain platforms and discovering new STO projects.  The MOU between Koscom and Yuanta is the fourth STO-related partnership Koscom has inked with a securities company. Koscom's other three brokerage partners are Kiwoom Securities, Daishin Securities and IBK Securities. With over four decades of experience in managing ledgers for brokerages, Koscom is highly skilled in constructing technical infrastructure for the capital market. As the operator of its own blockchain platform, this fintech company has been developing blockchain technology and acquiring relevant expertise.Photo by Shubham Dhage on UnsplashSecurity token issuance and distributionThe necessity for blockchain-based STO platforms provided by companies like Koscom for brokerages stems from regulations set forth by the Korean financial authority. The Financial Services Commission (FSC) mandates that the issuance and distribution of security tokens must be carried out by separate entities. This regulatory framework necessitates a platform that enables securities firms to connect and interact with each other. Koscom offers a joint STO platform designed to streamline transactions between brokerages, improving cost-effectiveness. In light of this, the financial IT company concentrates on developing such platforms with the aim of laying a solid foundation for the emerging STO market. According to local media outlet Etnews, Koscom has set its sights on completing the platform development within the first quarter, with plans to address additional requirements from brokerages subsequently. Striving to expand its network of partnerships to include companies both large and small, Koscom recognizes that a more diverse array of participating firms can enhance the efficiency of token issuance and distribution, which would in turn accelerate the adoption of STOs. Koscom’s strategy offers its partners an opportunity to test its STO infrastructure before the relevant legislation governing the management of security tokens is passed at the National Assembly. Regarding this development, Kim Sung-hwan, Head of the Digital Business Division at Koscom, said, “Koscom’s joint STO platform is emerging as an alternative method for brokerage firms to venture into the security token business. Factors such as costs and workforce requirements have made it difficult for many firms to proceed independently.” He added, “We will provide full technical support for our platform users, allowing them to focus on identifying reliable underlying assets for security tokens.” 

Civic Group Files Embezzlement Complaint Against Former Kakao Chairman Over KLAY TokensA South Korean civic group, known as Economic Democracy 21, filed on Wednesday a prosecution complaint against Kim Beom-soo, the former chairman of the internet giant Kakao, and several executives from Kakao’s affiliated companies. The allegations at hand pertain to embezzlement, specifically revolving around the virtual asset known as KLAY.Photo by Tingey Injury Law Firm on UnsplashKlaytn’s native tokenKLAY represents the native token of the Klaytn blockchain, which was developed by GroundX, a blockchain subsidiary of Kakao.Legal breach claimsThe complaint, formally submitted to the joint crypto-crime investigation division of the Seoul Southern District Prosecutors’ Office, asserts that Kakao executives have breached the Act on the Aggravated Punishment of Specific Economic Crimes and the Capital Markets Act.Clandestine pre-salesWithin the detailed complaint, Economic Democracy 21 alleges that following the issuance of KLAY, Kakao’s executives conducted private pre-sales of KLAY tokens before their official listing. These pre-sales activities reportedly raised between KRW 150 billion and 300 billion ($113 million and $226 million). The accusation is that these funds were not channeled into business endeavors, but rather diverted for personal use.The complaint also contends that Kim and other executives withdrew KLAY tokens from the company under the guise of investments, compensation, and service fees related to “overseas investment business” since 2022. The civic group further asserted that these corporate leaders employed a program to manipulate transaction records, presumably with the intent of preventing third parties from discovering the nature of these transactions.