Alchemy Pay Gearing Up for Expansion into South Korea

Superblock Rolls Out Crypto Wallet, Garnering Over 680K Pre-RegistrantsSouth Korean blockchain startup Superblock has successfully rolled out its own cryptocurrency wallet, named Over Wallet, according to a report by local news outlet Newsis. The wallet has already amassed over 680,000 pre-registrants since April, ahead of its official release.Photo by Shubham’s Web3 on UnsplashAccessibility and cost reductionOver Wallet serves as the mobile crypto wallet for the Over Protocol, a blockchain mainnet developed based on the paper published by Superblock’s CEO, Kim Jae-yun. The Over Protocol distinguishes itself through its accessibility, offering enterprises interested in the Web3 industry an opportunity to reduce costs associated with infrastructure investment and service operation.With the introduction of Over Wallet, Superblock empowers users with the capability to collect and manage Over points. The company plans to add functions for the management and transfer of token assets to provide an even more optimized user experience.Currently, Over Wallet is available for download on the Apple App Store and Google Play Store.Mainnet launch next yearAs part of the preparations leading up to the Over Protocol’s mainnet launch in the first half of next year, the Over Community Access Program (OCAP) has also been unveiled. OCAP enables users to earn Over points by completing various tasks. These accumulated points can then be used at the Over Protocol pop-up store, a side event scheduled for the annual blockchain conference, Korea Blockchain Week 2023, taking place in Seoul in September. The event will collaborate with KREAM, a resale and trading platform catering to collectors of limited editions.Superblock CEO Kim has a notable background, having founded Decipher, a blockchain study group at Seoul National University, in 2018. During the establishment of Superblock, Kim successfully secured funding from investors Spring Camp and Naver Z, both affiliates of the Korean search engine giant Naver.There has been additional support that underpins Superblock’s commitment to blockchain ventures. Last October, the company partnered with Shinhan Securities for technological cooperation. Subsequently, in February of this year, Superblock raised a Series A funding round of 9 billion KRW ($7 million). Investors in this round include notable names like conglomerate SK Inc., game developer Netmarble, and venture capital firm DSC Investment.

Gate.HK, cryptocurrency exchange Gate.io’s Hong Kong entity, is discontinuing its operations and has retracted its application for a crypto trading platform license with the local regulator. The company announced on Wednesday a planned "major overhaul" of its platform and has ceased new user registrations and deposits immediately. In compliance with local regulations, Gate.HK will delist all tokens—including major ones like Bitcoin, Ether and USDT—on May 28, urging users to withdraw their assets by August 28. The trading platform, which launched officially in May 2023, aims to re-enter the Hong Kong market in the future after securing the necessary approvals and contributing to the virtual asset ecosystem.Photo by Kelly Sikkema on UnsplashRegulatory environment and industry responseThe withdrawal of the license application, initially submitted in February 2023, was noted on the website of the Hong Kong Securities and Futures Commission (SFC) on May 22, without a disclosed reason for the withdrawal. The SFC mandates that crypto trading platforms without a submitted license application by Feb. 29 must shut down by May 31 or within three months upon receiving further notice. This regulation has impacted several platforms, including HKVAEX and Huobi HK, both of which have recently withdrawn their license applications and ceased operations or faced operational uncertainties in the region. Currently, the SFC is reviewing applications from 20 crypto firms, indicating significant interest among global exchanges in securing retail trading licenses in Hong Kong. 

Regulatory Caution Among Asian Nations Amid Reports of Illicit FinancingWith a plethora of reports of crypto-related terrorist financing having been published in recent weeks, it’s understood that Asian nations may be looking to exercise caution when it comes to the current ongoing process of establishing regulatory guidelines for crypto.That’s according to a report published by the South China Morning Post (SCMP) on Thursday. The use of cryptocurrency by Hamas to fund its attack on Israel is being seen as the catalyst that may drive authorities in various Asian nations to take a more cautious approach to regulating digital currencies, according to analysts cited by the publication.Raj Kapoor, the founder of India Blockchain Alliance (IBA), commented on these recent developments, stating:”It is a kick on the backside for most governments. All regulatory bodies will take a closer look at crypto regulation. Governments will need to start implementing new rules and regulations.”At the recent G20 summit held in New Delhi, a joint declaration called for the regulation, supervision, and oversight of crypto assets, among other measures. The declaration emphasized the importance of supporting “a coordinated and comprehensive policy and regulatory framework.”Kapoor stressed the importance of revisiting the declaration and developing solutions to implement its objectives.Photo by Adolfo Félix on UnsplashRenewed scrutinyEvents in Palestine in recent weeks have led to renewed scrutiny when it comes to monitoring illicit financing activity via cryptocurrency. Only days following the recent Hamas attack, Israeli authorities moved to freeze specified crypto accounts.That scrutiny has continued in recent days, with more accounts having been frozen on crypto platforms such as Binance, while more still have been identified as suspicious, with requests for further information having been submitted in respect of over 200 additional accounts.On Wednesday it emerged that the United States Treasury’s Office of Foreign Assets Control (OFAC) had sanctioned a Gaza-based crypto platform.Potential over-reactionWhile crypto-related terrorist financing has been widely publicized, blockchain analytics firm Chainalysis warned on Wednesday that crypto’s role in this illicit activity has likely been overstated. In its blog post on the subject, the firm stated:“Although terrorism financing is a very small portion of the already very small portion of cryptocurrency transaction volume that is illicit, some terrorist organizations raise, store, and transfer funds using cryptocurrency.”Additionally, Chainalysis stated that it had seen “overstated metrics and flawed analyses of these terrorist groups’ use of cryptocurrency.” Peter Van Valkenburgh, Director of Research at non-profit crypto advocacy group Coin Center, also believes that reporting on the matter is not balanced. Taking to X, he stated:“Sensational early reporting on the scale of Hamas crypto fundraising significantly misstated the amounts involved.”Coin Center’s Director of Communications, Neeraj Agrawal, highlighted an article which claimed that crypto “fueled Hamas’ terror attack on Israel” in its title, only to reveal within the body of the article that “cryptocurrency is still far from the largest funding source for terrorism.”Anndy Lian, a Singapore-based author and inter-governmental blockchain adviser, noted that while some countries may consider banning cryptocurrencies as a solution, this could merely drive illicit financing underground and make it more challenging to trace and halt. Lian argued that cryptocurrencies are traceable and trackable, unlike traditional fiat currencies like US dollars.