HashKey on-boards market makers to boost liquidity

The South Korean government and the ruling party may postpone agreement on a unified proposal for the Digital Asset Basic Act, legislation that would include regulations on stablecoins. The bill represents the second phase of the country’s cryptocurrency regulatory framework, following the first phase that took effect in 2024 to strengthen investor protection.Photo by KS KYUNG on UnsplashAccording to Edaily, the two sides had planned a policy consultation on March 5 to finalize the draft. The meeting was later pushed back to this week but is now unlikely to take place, potentially delaying the government’s plan to complete stablecoin legislation by this month. The Digital Asset Basic Act is a comprehensive bill to regulate the crypto market, including issuance, distribution, disclosure, and listing of virtual assets. South Korea has more than 13 million crypto investors, and market participants see the legislation as a step toward reducing regulatory uncertainty. Meanwhile, the rapid rise of dollar-denominated stablecoins such as USDT and USDC has raised concerns that a slow regulatory response could undermine the country’s monetary sovereignty. Toss eyes dual role in KRW stablecoinsAmid ongoing debate over stablecoin regulation, Viva Republica, the operator of the payments app Toss, is preparing to move into the issuance and distribution of won-denominated stablecoins. At the 2026 Blockchain Meetup Conference last week, Seo Chang-whoon, corporate development director at Viva Republica, said Toss hopes to take on both roles in the stablecoin ecosystem, according to ZDNet Korea. “Toss would like to try serving both as a stablecoin issuer and as a distribution platform,” Seo said. The company is considering joining a consortium to issue a won-based stablecoin, which could include Toss, its financial affiliates, and traditional banks. Toss also plans to expand the token’s use through a dApp store, and indicated it may work with blockchain firms as it develops the business. Global firms are also studying the market potential for Korean won-backed stablecoins. DWF Ventures said in a report last week titled “South Korea’s KRW Stablecoin Opportunity” that a won-denominated stablecoin could offer meaningful benefits to domestic markets. The report argued that such a token could help reduce reliance on the U.S. dollar and curb capital outflows, while improving capital efficiency by allowing reserves to generate yield. With about 98% of South Koreans using digital payments, adoption could come quickly, the report said, adding that the system could also strengthen authorities’ ability to monitor and curb illegal activity. Survey finds modest optimism around BitcoinAmid growing expectations around stablecoin policy, a recent survey of South Korean crypto investors showed cautious optimism about Bitcoin’s price outlook this week. According to a weekly poll conducted last week by CoinNess and Cratos, 27.3% of respondents said they expect Bitcoin to rise or surge this week, up from 24% a week earlier. 32.2% predicted the price would move sideways, up from 28.1% the previous week, while 30.5% expected a decline or sharp drop, down from 47.9% a week earlier. When asked about market sentiment, 37% of respondents said they felt fear or extreme fear, while 32.2% described sentiment as neutral, and 30.8% said they were optimistic or extremely optimistic. Asked why they invest in cryptocurrencies, 33.9% of respondents said they see crypto as the only path to upward mobility. Another 32.5% cited confidence in the long-term value of Bitcoin and blockchain technology, while 25.5% pointed to its role as a hedge against instability in traditional finance. The remaining 8.1% cited volatility and 24/7 trading. According to CoinMarketCap data, Bitcoin was trading at $72,634.39 at the time of writing, up 9.34% over the past week. 

Zep joins hands with NEAR Protocol to elevate Web3 experience for usersSouth Korean metaverse platform Zep announced on Monday (local time) that it has partnered with the Layer 1 blockchain network NEAR Protocol. The two companies aim to jointly pursue a business model catered to developers and Web3 users, accelerating the widespread adoption of Web3.Zep plans to leverage the collaboration to enable its partners to issue and distribute various Web3-based digital assets while enhancing the user experience on its metaverse platform.Photo by GuerrillaBuzz on Unsplash“Working with NEAR Protocol will be an opportunity to provide a new experience for both Web2 and Web3 users. The collaboration will allow us to provide Zep users with more diverse and rich content and establish ourselves as a leader in the metaverse industry by providing a seamless user experience in the Web3 space,” said Kim Sang-yeop, Co-CEO of Zep.Bringing the metaverse to diverse audiencesZep is a joint venture between game developer SUPERCAT and Naver Z, the operator of the 3D avatar social platform Zepeto. Following its beta launch two years ago, the platform has since accumulated 8.3 million users and recently surpassed 1.3 million monthly active users.Zep has been consecutively launching special features for enterprises, such as single sign-on (SSO) authentication and data dashboards, prompting businesses and public organizations to recognize its versatility. Based on its success in the Korean market, the platform is on the verge of entering the Japanese and Southeast Asian markets.Dominating the dApp sphereMeanwhile, NEAR Protocol has experienced rapid growth as an operating network for decentralized apps (dApps), making it one of the fastest-growing blockchain networks this year. According to data from major dApp store DappRadar, NEAR Protocol-based dApps have secured the top two rankings among all blockchain applications, proving that it is the preferred choice for companies considering mass adoption.

Genesis Ordered to Comply with Subpoena in Terraform Labs CaseGenesis, the troubled crypto lender and trading company, has been issued a compelling directive by a New York court. The court has mandated Genesis to comply with a subpoena within five days, following a failure to respond to previous requests by the October 9 deadline, relative to a case involving Singapore’s Terraform Labs.Photo by Michael Discenza on UnsplashTerraUSD collapse falloutThese requests are related to the 2022 collapse of the TerraUSD stablecoin, a cryptocurrency which was supposed to maintain a peg to the US dollar’s value until it lost that peg and collapsed. At the time, the demise of TerraUSD reverberated throughout the cryptocurrency markets.In response to this collapse, the US Securities and Exchange Commission (SEC) initiated a legal action against Terraform Labs, the company responsible for the token, and its co-founder Do Kwon, alleging that investors had been misled. Both Do Kwon and Terraform subsequently tried unsuccessfully to have the case dismissed.As part of the progression of this case, the SEC sought to question Do Kwon and gain access to company records held by the Singapore-headquartered firm. The defendants were ultimately unsuccessful in arguing their case in that instance on jurisdictional grounds.Failure to respondJudge Jed Rakoff, in a court order filed on Friday, highlighted Genesis’s non-compliance with the subpoenas, stating:“As of today, the Genesis Entities have failed to produce any documents in response to the Subpoenas.”These subpoenas were issued by the defendants to seek specific information from Genesis Global Capital, Genesis Global Holdco, and Genesis Global Trading on September 12.The court order does not specify the nature of the information sought. It is worth noting that Genesis extended substantial loans to the now-defunct hedge fund Three Arrows Capital (3AC), which was heavily exposed to the TerraUSD stablecoin. In January 2023, three Genesis entities filed for bankruptcy, and its trading arm ceased its US spot market operations in September.In addition to the challenge posed by Genesis’ non-compliance, Judge Rakoff is also wrestling with obtaining information from Do Kwon in connection with the legal proceedings. Kwon’s legal representatives have argued that he cannot physically come to the US as he is serving a jail sentence in Montenegro for possession of a counterfeit passport.However, Judge Rakoff has expressed his determination to ensure Kwon’s availability for cross-questioning and stated that Kwon will not be allowed to provide any declarations in the case without being subject to cross-examination.Citadel under scrutinyIn a related development, it emerged last week that Terraform Labs is accusing American market maker Citadel Securities of having sabotaged its TerraUSD stablecoin. As part of the Singaporean company’s pursuit of justice, it has called upon the United States District Court in the Southern District of Florida to force Citadel to furnish specific documents that relate to their trading activities during the period within which TerraUSD collapsed.Should it fail in that endeavor, Terraform has said that it will look to have the matter heard in Judge Rakoff’s court in New York.This legal development concerning Genesis marks a crucial juncture in the ongoing investigation into the TerraUSD stablecoin’s collapse and the actions of the entities involved, with Genesis now facing increased pressure to cooperate fully with the legal process.