Ripple APAC executive predicts institutional adoption surge in 2024

Korea’s prominent crypto exchanges Bithumb and Korbit have recently resumed charging trading fees, local media outlet Edaily reported. However, these changes in fee policies are reinforcing Upbit’s dominant market position while downsizing Bithumb’s and Korbit’s market shares. Meanwhile, the local banks affiliated with crypto exchanges are benefitting from an uptick in fee revenue from the recent bitcoin boom. According to crypto data intelligence platform CoinGecko on Feb. 28, Upbit accounted for 77.4% of the local market share in crypto transactions, followed by Bithumb (20.43%), Coinone (1.73%), Korbit (0.35%) and Gopax (0.09%). Photo by Markus Winkler on UnsplashShifts in market sharesAs of March 2, the market shares of Bithumb and Korbit decreased by 8.59 percentage points and 0.21 percentage points, respectively. Conversely, Upbit’s dominance grew to 86.57%, up by over 9 percentage points. A Korbit official said it’s too early to pass judgment on Korbit’s market performance, as the exchange’s policies on trading fees could change depending on the market sentiment. The person added that CoinGecko tracks only eight types of tokens traded on Korbit and does not cover all the transactions on the exchange.  Bithumb had previously benefited from charging no fees, driving up its market share to as high as over 40% in December. Following the decision to impose a fee of 0.04% on Feb. 6, however, the exchange has been experiencing a drop in transaction volume. Korbit also reinstated trading fees last Thursday, roughly four months after eliminating them on Oct. 10 as a promotional move. However, it's worth mentioning that the newly introduced trading fee is 0.07%, which is lower than the earlier rate of 0.2%. Meanwhile, Gopax currently exempts fees for users who trade BTC, ETH, XRP and USDC.  No local regulations on fees for crypto transactions At the moment, there are no local regulations on fees for crypto transactions, leaving the task of setting such fees to individual trading platforms. It is known that crypto exchanges in other countries, such as the U.S., set their own rates as well.  

Seoul and Baobab Partners Face Controversy Over Unpaid Prize Winnings for SWF2023 HackathonThe city of Seoul has come under public scrutiny for failing to pay the winners of the Seoul Web3 Festival (SWF2023) Hackathon a cash prize worth KRW 150 million (approximately $112,000). The Seoul Metropolitan Government has argued that since it was simply a naming rights sponsor, the responsibility for paying the prizes lies with Baobab Partners, who co-hosted the event. However, critics argue that the city did not properly vet Baobab Partners more rigorously before hosting the event.Photo by okaybuild on PixabayUnpaid prizes lingerThe SWF2023 Hackathon took place from July 31 to August 2 at Dongdaemun Design Plaza (DDP) and was co-hosted by the city of Seoul, the Seoul Design Foundation, and Baobab Partners. It offered a total prize pool of KRW 150 million attracting 417 participants who made up 115 teams.However, although over two months have passed since then, the winners are yet to be paid their prize money. “Baobab Partners initially proposed the SWF2023 event, and they were responsible for gathering the necessary sponsorship funds to run the event,” said a city representative.According to industry sources on Monday, the company’s CEO, Choi Jin-beom, issued a handwritten apology last Friday regarding the incident. “We promised to pay the winners by today, but we were unable to deliver on that promise. We explored multiple avenues, including investors, new contractors, and other assets, but were ultimately unable to secure the funds to do so,” he said. “The narrative that the funds were diverted elsewhere or invested in cryptocurrencies or stocks is untrue,” he added, clarifying that related information was transparently disclosed to the city of Seoul.Baobab Partners’ swift rise raises industry eyebrowsBaobab Partners had previously participated as an event planner at last year’s Blockchain Week in Busan, which turned out to be a success. “We also spoke with the Busan city government, who gave a positive opinion of the company,” the representative added. It was under this context that Seoul entered into a naming rights agreement with Baobab Partners. The agreement stipulated that the company would be in charge of attracting and managing sponsorships, and the prize money and operational costs would be covered by corporate sponsorship funds.Nevertheless, questions have arisen within the industry about Baobab Partners’ short track record and its successive collaborations with public organizations. Baobab Partners is a startup that was founded in May 2021. In November of the same year, the firm signed memoranda of understanding with three blockchain companies during NFT Busan 2021, a large-scale NFT fair held in the southern port city to share the latest blockchain trends. As a result of its efforts, it was listed alongside prominent companies such as Coinone and Onther despite only six months passing since its establishment. Subsequently, Baobab Partners relocated from Seoul to Busan, and the following year, it participated as an event planner at Blockchain Week in Busan.Accumulating allegationsSpeculation suggests that this success was not solely due to Baobab Partners’s capabilities. The company’s CEO is believed to have political connections, according to an anonymous industry insider. Choi denied such claims and stressed that its technical expertise should not be downplayed, citing the fact that Baobab Partners was the first entity in Korea to develop virtual reality (VR) banking technology and had received a KRW 15 billion investment from Finger, a KOSDAQ-listed company.Baobab Partners has also been mired in controversy over supposedly unpaid wages. In response to a claim made by an industry source that many former employees of Baobab Partners have still not received their due wages, a Seoul representative stated that there is no such dispute according to conversations with company representatives, seeking to dispel the dispute. Choi further explained, “We didn’t have wage disputes until last year. The difficulty in paying wages began in January this year due to the failure to execute promised investment funds.”The city said that it is currently conducting legal examinations and looking into necessary measures for two matters involving Baobab Partners, including the handling of hackathon winnings.

Chinese authorities are unveiling new strategies to expedite the integration of the digital yuan in selected districts in Beijing and Shanghai, with a separate initiative furthering cross-border use of the e-CNY with Hong Kong.Photo by Yigang Zhou on UnsplashPudong New AreaAccording to the Xinhua news agency, the Chinese authorities have introduced an extensive reform initiative for Shanghai's Pudong New Area, which is scheduled to span from 2023 to 2027. This five-year plan, issued by the Chinese Communist Party Central Committee and the General Office of the State Council, aims to position the Pudong District as a leader in modernization. The reform plan places a strong emphasis on the pilot implementation of the digital yuan across various sectors in Pudong. As part of the plan, Pudong will be granted new authorities to evolve into an international hub. Key aspects of the reform include the integration of digital yuan into trade settlement, e-commerce payments, carbon trading and green power trading. This move is expected to standardize and broaden the application scenarios of the digital currency. Beijing's ‘Digital Yuan Adoption Demonstration Zone’Simultaneously, a member of the Beijing Municipal Committee and Hong Kong Professionals Association president, Fung Kwok-yau, has advocated for the swift progress of Beijing's "Digital Yuan Adoption Demonstration Zone." In a recent interview, Fung suggested expanding the digital yuan's application by installing e-CNY terminals in local stores at popular tourist destinations, malls and shopping districts. Fung acknowledges challenges in promoting the digital yuan, including late entry into the contactless payment market, high user acceptance barriers and difficulties in sustaining subsidies. To overcome these challenges, Fung recommends that culture and tourism departments take the lead in popularizing the concept of central bank digital currency (CBDC) and educating the public on digital yuan usage. To encourage small and medium-sized merchants already using digital yuan terminals, Fung proposes providing incentives to help consumers understand and use the currency. He emphasizes the need for a regular promotion mechanism and measures such as electronic consumption coupons to boost citywide adoption. PBoC cross-border e-CNY pilotIn a related development, the People's Bank of China (PBoC) plans to expand its cross-border digital yuan pilot in Hong Kong. Deputy Governor Xuan Changneng expressed the intention to deepen the cross-border e-CNY pilot to enhance convenience for businesses in both Hong Kong and mainland China. According to a social media post from Chinese news outlet Caixin, the PBoC will collaborate closely with the Hong Kong Monetary Authority (HKMA) to introduce new policy measures, including financial services and cooperation initiatives to drive CBDC adoption. Areas of cooperation between PBoC and HKMA include providing support for institutions participating in the pilot, increasing convenience for digital yuan users, expanding the number of Hong Kong-based banks handling e-CNY and exploring new digital yuan-powered cross-border remittance services for micro-payments. The goal is to develop digital yuan services that align more closely with the habits of Hong Kong residents and promote interoperability with Hong Kong payment systems. The PBoC aims to make further progress in key scenarios such as cross-border e-commerce and education.