Digital asset insurer funds Middle East expansion

South Korean blockchain research firm Four Pillars has secured KRW 700 million (approximately $527,000) in investment funds from Kakao Ventures, Hashed and Bass Investment, according to South Korean news site Coin Readers on Tuesday.Photo by Precondo CA on UnsplashEmpowering blockchain venturesLed by a team of industry experts, Four Pillars is dedicated to supporting companies that aim to develop blockchain projects and successfully bring their business to the market. It conducts research based on its technological expertise and experience in blockchain collaborations, providing customized solutions based on each client’s circumstances. It aims to save time and money for companies looking to enter the blockchain market by providing comprehensive and relevant insights on cryptocurrency basics, the blockchain industry, regulations and market analyses, rather than simply listing information. Rapid growth and strategic partnershipsSince its establishment last year, the research platform has attracted more than 30,000 visitors per month on average in just two months. The company has also signed an agreement with Japanese publishing agency Gentosha to publish a Japanese version of its content. Other partners include the layer 1 blockchain Sei Network, Web3 gaming platform Iskra, tech juggernaut LINE’s blockchain Finschia, and Korean telecommunications provider SKT's digital T Wallet.  Before securing the recent investment, the Four Pillars team was recognized for collaborating with various developers on global blockchain projects and receiving a research sponsorship from the dYdX Foundation, a decentralized protocol operator known for being highly selective when offering sponsorships. "The core members of Four Pillars, including CEO Kim Nam-woong, are among the few people in the Korean crypto scene who can bring unique insights to research," said Brian Jang, Director at Kakao Ventures. "Based on their unrivaled research capabilities, we expect them to grow rapidly while connecting domestic and international protocols and corporate needs to business outcomes." Bridging markets, breaking barriersAs trends in the global blockchain market change at a rapid pace, the importance of high-quality, relevant research is amplified, even more so than in the era of Web2. However, information tends to be scattered across platforms, making it overwhelmingly difficult for companies to utilize it in their business endeavors. This is also one of the key reasons why overseas companies have a hard time navigating their entry into the Korean market with their limited knowledge of market trends or conditions. The same can be said for Korean companies who want to launch their businesses overseas. By bridging Korean and overseas companies and projects, Four Pillars aims to resolve this widespread information asymmetry in the ever-growing blockchain industry and establish its foothold as a global research firm. This is reminiscent of Delphi Digital, a U.S.-based crypto research firm founded in 2018 that quickly expanded and established a global Web3 accelerator service called Delphi Labs.  The Four Pillars team also aims to dedicate the investment funds towards accelerating its efforts in talent acquisition, product development and continued research. In the future, the company plans to boost diverse blockchain projects and contribute to the participation of various stakeholders in the blockchain ecosystem.  "Our priority and goal is to create a developer-friendly environment by leveraging the high-quality research and products that we provide at Four Pillars," the firm’s CEO said. "We will lower the barriers to entry for blockchain and grow the entire Web3 market by making it more suitable for both users and developers."

Leading global crypto exchange platform OKX has officially launched OKX TR, a specialized crypto exchange tailored to meet the needs of users in Turkey. This unveiling, announced on Feb. 27, marks a significant stride in the company’s efforts to offer Turkish users greater access to cryptocurrency trading and decentralized finance (DeFi).Photo by Engin Yapici on UnsplashOKX Wallet integrationOKX TR has integrated OKX's Web3 wallet, providing Turkish users with access to a wide array of features. The wallet offers a user-friendly portal for trading non-fungible tokens (NFTs), utilizing decentralized applications (dApps). Noteworthy features of the OKX Wallet include multi-party computation (MPC) technology and account abstraction (AA), enhancing accessibility for users with varying levels of technical expertise.OKX TR introduces localized features designed to cater specifically to Turkish users, including direct deposits and withdrawals in Turkish Lira, facilitated through strategic partnerships with banking institutions such as Fibabanka, VakıfBank, Ziraat Bankası, İş Bankası, Şekerbank and Türkiye Finans. The platform offers a range of major cryptocurrency pairs for trading, including USDT/TRY, BTC/TRY and ETH/TRY.  Moreover, OKX TR prioritizes user experience by providing round-the-clock customer support in both Turkish and English, attempting to provide prompt assistance and comprehensive guidance whenever needed. Crypto adoption backdropThe platform’s arrival should contribute further towards the burgeoning crypto ecosystem in Turkey, a market boasting a close to 50% adoption rate for cryptocurrencies. A report by OKX rival platform KuCoin back in August of last year found that there had been a significant increase in crypto users in Turkey over the course of the previous 18 months.  It’s believed that crypto adoption in Turkey is being driven partly by its role as a financial lifeline amid economic challenges. The country’s sovereign currency, the lira, has suffered from runaway inflation in recent years. On social media OKX Chief Marketing Officer (CMO) Haider Rafique wrote that the new service offers “lightning fast signup and funding,” alongside the “lowest fees in the market.” Mehmet Çamır, Chairman of OKX TR, outlined that the company had first announced expansion into Turkey in May 2023. Çamır set out the company’s intentions within the Turkish market, stating:"The launch of OKX TR represents more than just an expansion; it signifies our pledge to equip users with a transparent, compliant and user-friendly gateway to the world of blockchain. . . . We can unlock the vast potential of the Turkish crypto community and pave the way towards a future where finance is more inclusive and transparent.” Turkey is in the process of introducing a raft of crypto regulations, primarily with the intention of enabling it to be removed from the Financial Action Task Force’s (FATF) “grey list.” In December, Turkish President Recep Tayyip Erdogan appointed blockchain and cryptocurrency expert Fatma Ozkul to the Turkish central bank’s rate-setting committee.Those moves demonstrate some positive progress from the point of Erdogan’s statement in 2021 when he declared “a war on crypto.” 

China’s Legal Daily, a publication that falls under the supervision of the Chinese Communist Party’s (CCP) Central Commission for Political and Legal Affairs, has sounded an alarm regarding cryptocurrencies, raising concerns about their use as potential avenues for corruption. In the newspaper’s New Year’s Day edition, it quoted legal scholars, who had convened at the annual China Integrity and Legal Research Association meeting, who underscored the urgency of addressing the emerging threat posed by digital assets.Photo by Max van den Oetelaar on Unsplash‘Hidden channels’ for briberyIn particular, it focused on views expressed by Associate Professor Zhao Xuejun from Hebei University Law School. Zhao Xuejun warned against the use of virtual currency and electronic gift cards as “hidden channels” for bribery. Notably, these forms of payment, often stored in “cold storage” devices, offer a convenient means for transporting funds abroad, the academic claimed. This development aligns with recent warnings from state agencies, including the Supreme People’s Procuratorate and the State Administration of Foreign Exchange, cautioning against the use of stablecoin Tether in yuan-related foreign exchange transactions, deeming such actions illegal. Anonymity and traceability concernsProfessor Mo Hongxian from Wuhan University Law School explicitly mentioned Bitcoin, highlighting the challenges associated with virtual currencies, such as their anonymity and difficulty in traceability, which can facilitate illegal activities. Despite lacking official recognition in China, Professor Hongxian stressed the need for judicial attention to transactions involving virtual currencies. Although China maintains a cryptocurrency ban, it actively explores blockchain technology for identity verification. The country’s central bank digital currency, e-CNY, still in the pilot stage, has witnessed significant development. Despite its limited geographic distribution, the digital yuan recorded transactions totaling nearly $250 billion in China as of June 2023, with international use noted in commodities sales. Varying degrees of enforcementChina has demonstrated that it can at times take a very hard line on restricting cryptocurrency trading and related activities, while at others, it seems to tolerate such activity or turn a blind eye. Last month China’s Supreme Procuratorate provided details on the nature of the prosecution of over-the-counter (OTC) crypto trader and RenrenBit founder, Zhao Dong. Zhao was handed down a seven year sentence for carrying out illicit crypto business operations. By contrast, an investigation carried out by the Wall Street Journal last year found that business has been thriving for the world’s largest cryptocurrency exchange Binance in China, despite the ban. Other crypto-related activity has been uncovered, flouting capital controls. BitMEX founder Arthur Hayes suggested recently that all wealthy Chinese individuals have access to banking in Hong Kong, allowing them to access, trade and use cryptocurrency. As part of the CCP’s intensified anti-corruption efforts, the focus on cryptocurrency’s potential role in financial crimes underscores the evolving landscape as use of digital currency unfolds. The Legal Daily article emphasizes the need for vigilance and regulatory measures to counteract the perceived threat of corruption facilitated by cryptocurrencies and electronic payment methods.