Bitget works towards goal of Bitcoin ecosystem support

South Korean banks will soon have to be prepared with adequate anti-money laundering (AML) measures when issuing real-name bank accounts to cryptocurrency exchanges, according to a report by local media outlet News1. This requirement is part of the proposed amendment to the enforcement decree of the Financial Transaction Reports Act, with the Korean Financial Services Commission (FSC) issuing a legislative notice about it today. The FSC will be gathering feedback until March 4, prior to the implementation.Photo by Tuan P. on UnsplashAdequate staff and physical facilitiesThe new amendment requires banks supporting virtual asset service providers (VASPs) to employ adequate staff and establish and uphold physical infrastructure to combat money laundering and terrorist financing. Through this revised legislation, the FSC aims for banks to be equipped with the necessary resources to manage risks linked to the provision of real-name bank accounts to VASPs. With the issuance of real-name bank accounts, banks will face ongoing cautionary duties. The FSC plans to offer clearer guidelines to help banks decide whether to continue providing such accounts to VASPs. In its 2024 agenda, the FSC stated its plans to evaluate VASPs' readiness for their responsibilities ahead of the Virtual Asset User Protection Act, set to be implemented in July. Additionally, the regulatory body will develop infrastructure to improve its monitoring of the cryptocurrency market.Intelligence platform focused on financial securityMoreover, the FSC plans to create a specialized intelligence platform focused on financial security. This platform is aimed at enabling proactive responses to cyberattacks and supporting financial institutions in the agile management of risks associated with emerging technologies.

South Korea is moving closer to the global stablecoin trend as public curiosity and real-world trials accelerate, even as the country’s central bank signals it wants tight guardrails. A recent analysis from Shinhan Card, reported by Money Today, finds that internet searches for “stablecoin” in South Korea jumped 403% in the first half of this year compared with the previous six months, based on data from major portals such as Google and Naver. Mentions on social media rose 359% over the same period. The spike reflects growing expectations that U.S. dollar-pegged tokens could make cross-border payments faster and cheaper by enabling near-instant settlement at prevailing foreign-exchange rates. Interest has been reinforced by user reviews of actual payment experiences, which climbed between May and July. Crypto-linked cards, including RedotPay and Bybit’s offerings, are already usable domestically and allow top-ups with leading stablecoins such as USDT and USDC. One user described buying a cup of coffee at a local shop with a RedotPay card via Apple Pay. The small purchase underscores how crypto rails are edging into routine spending.Photo by Oat Appleseed on UnsplashFrom curiosity to checkoutTrading venues remain the main arena. According to CryptoQuant, transactions in USDT and USDC on the country’s five leading exchanges totaled nearly $71 billion from January through August, underscoring stablecoins’ central role in crypto liquidity and price discovery. Stablecoin interest in Korea shows a skew toward younger users and men, with men making up 74% of related searches and women 26%. By age, people in their 20s–40s accounted for 66% of searches, while those aged 50 and above represented 34%. Public debate is widening alongside adoption, with some online commenters predicting that stablecoins could chip away at the influence of traditional card networks. At the same time, banks, card companies, and exchanges are bracing for the arrival of a won-pegged counterpart, as the government and parliament prepare a regulatory framework and aim to introduce a bill as early as this month. Domestic card issuers, drawing on their merchant networks and settlement systems, are already exploring how to integrate won-backed tokens in ways that maximize convenience and scalability. Adoption meets skepticismSkeptics counter that Korea’s existing payments infrastructure is already world-class, leaving only marginal gains for a won stablecoin. They also argue that cross-border benefits would be modest because the won lacks reserve-currency status and broad global demand. The Bank of Korea (BOK) has struck a notably conservative tone. Governor Rhee Chang-yong has previously questioned the benefits of a won-denominated stablecoin and warned of risks to the monetary system. Earlier this month, in documents submitted to a lawmaker and reported by The Herald Business, the BOK advised that parliament consider granting it authority to require issuers to deposit reserves at the central bank when necessary. According to the bank, such a measure would strengthen user protection during heavy redemptions, curb money-supply growth outside its control, and ensure that any seigniorage benefits flow to the public. That approach could reduce issuer profits, since deposits at the BOK would not earn interest, just as is the case for commercial banks. The documents also recommend sizing reserves to match the total stablecoin supply, while clarifying that not all of it would necessarily need to be held at the central bank. Issuance path and next stepsAs for who should issue a won-pegged token, the BOK favors starting with a consortium of banks, citing their track record on compliance and the need for a controlled pilot that lets regulators assess and mitigate risks before widening access. The developments suggest a country exploring how stablecoins might integrate into an already sophisticated payments network. Consumers are showing interest, exchanges are handling large flows, and regulators are shaping the legal framework that will define the place of any future won-based digital currency. 

Datachain Secures Funding from Japan’s MUFG to Advance Blockchain Interoperability InitiativesDatachain, a Japanese blockchain interoperability solution provider, has secured funding from Mitsubishi UFJ Financial Group (MUFJ), one of Japan’s largest banking institutions, according to a press release. This investment will boost their collaboration as they work together to advance ongoing initiatives involving stablecoins, security tokens, and cross-chain technology.Photo by Shubham Dhage on UnsplashGrowing token marketIn a joint report by the Boston Consulting Group (BCG) and Singapore-based investment platform ADDX, it is projected that the market for illiquid asset tokenization could reach $16.1 trillion by 2030 (as a conservative estimate) or potentially $68 trillion in a best-case scenario. This growth in the illiquid asset tokenization market, coupled with the expanding stablecoins and cryptocurrencies market, is expected to drive the overall digital asset market’s expansion.Cross-chain techDatachain will collaborate with MUFG and other partners to develop an infrastructure that enables the transfer of digital assets across different blockchains. Boasting prowess in cross-chain technology, Datachain has been conducting tests and collaborative research with numerous companies in Japan and abroad. Notably, Datachain has been working closely with MUFG to drive initiatives utilizing stablecoins scheduled for issuance and distribution through the Progmat Coin stablecoin platform.Moreover, Datachain, MUFG, and cross-chain bridge provider TOKI will form a three-way partnership aimed at commercializing the issuance and distribution of stablecoins on public blockchains like Ethereum between April and June 2024.Datachain is also collaborating with MUFG to promote cross-chain settlements involving security tokens based on stablecoins. Their goal is to realize this initiative in cooperation with securities firms by 2024.Starting with this new funding, Datachain plans to expedite its business expansion by seeking investments from other companies that can create synergies.Tomohiro Kimura, Director and Managing Executive Officer at MUFG, commented on the investment, emphasizing MUFG’s commitment to the digital asset market’s anticipated growth. According to Kimura, MUFG has established and promoted Progmat Coin in preparation for the expanding digital asset market. Highlighting that multi-chain and cross-chain transactions are essential to the future of digital assets, Kimura expressed delight over MUFG’s investment in Datachain, citing the blockchain company’s unparalleled expertise in key technology areas such as multichains and cross-chain transactions. He also highlighted MUFG’s increased involvement as a shareholder in Datachain, underlining its dedication to making a substantial impact in the digital asset market.