Alchemy Pay extends market reach through two new industry alliances

Metaworld Global’s Web3-based shopping metaverse to be launched worldwide next monthHong Kong-based Metaworld Global’s shopping metaverse, MWCC, is scheduled for global release on Dec. 25. As a Buy-to-Earn (B2E) platform, it is expected to surpass the limitations of traditional online shopping by incorporating a Web3-based online store and offering a unique, rewards-based shopping experience for customers.“This will be a shopping mall that no consumer has ever experienced before,” said Lee Geun-ho, who is in charge of development at Metaworld Global.Photo by Lucrezia Carnelos on UnsplashForging a new digital frontierMWCC aims to become a decentralized commerce ecosystem built together by buyers, sellers and influencers. The ecosystem will run on tokens that can be used across several social settings, thus expanding the scope of cryptocurrency beyond traditional settings. It will also harness various blockchain technologies to create a social media-based consumer network, ultimately handing over digital ownership to shoppers.What also sets MWCC apart is that it will employ a multi-purpose middleware to carry out global-scale commerce activities such as intermediary payment and copyright monetization via NFT marketplaces, among others. Notably, the platform plans to mint high-value, collectible NFTs.Supporting all participants in the shopping processSuppliers within the MWCC network who own manufacturing facilities will be able to export their products to over 200 countries through the platform’s promotion and logistics systems. Sellers can also use social media to sell their products to customers overseas and get their transactions settled in real-time. In turn, these customers can easily purchase Korean products without the hassle that is usually associated with making payments on overseas online shopping sites.“MWCC offers benefits for buyers, sellers and suppliers, which will serve as the base for a new operation system in the digital era,” Lee explained.

Korea’s Virtual Asset User Protection Act to Take Effect in July Next YearThe Virtual Asset User Protection Bill was passed during the South Korean National Assembly’s plenary session last Friday, according to a report by news agency Newsis. The legislation aims to safeguard customer assets, establish regulations against unfair trading practices, and enforce penalties. The act is scheduled to take effect one year after its passage.Photo by KS KYUNG on UnsplashDefinition of virtual assetsUnder the act, a virtual asset is defined as a digital representation of economic value that can be digitally traded or transferred. It’s important to note that central bank digital currencies (CBDCs) are not considered virtual assets. Virtual assets with characteristics of securities will initially fall under the jurisdiction of the Capital Market Act.Roles of Korea’s central bankThe act grants the Bank of Korea (BOK) the authority to request data and information from virtual asset service providers (VASPs). This provision is deemed necessary for the Korean central bank to formulate monetary and financial policies, despite virtual assets not being equivalent to traditional currencies.Responsibilities of VASPsMoreover, VASPs are obligated to segregate users’ virtual assets from their own holdings. VASPs are also required to reserve the same type and quantity of virtual assets entrusted by users and maintain a certain proportion of these assets in a cold wallet, which is an offline storage solution.Unfair trading practices will be regulated in a similar manner as outlined in the Capital Market Act. The act specifically prohibits the use of undisclosed information, price manipulation, fraudulent transactions, and trading of self-issued virtual assets. VASPs are barred from suspending deposits and withdrawals without legitimate reasons. They are also mandated to monitor suspicious transactions and take appropriate measures to safeguard users. Any suspected unfair trading practices must be promptly reported to financial authorities. Violators of these rules may face criminal penalties, liability for damages, and potential class action lawsuits.Powers of financial authoritiesThe act also clarifies the powers of financial authorities in supervising, inspecting, and taking action against virtual asset operators. Unfair trade practices can result in imprisonment for more than one year (up to 10 years for violations related to self-issued virtual assets) or fines ranging from three to five times the illicit gains. Assets acquired through unfair trade practices will be confiscated, or an equivalent value will be charged if confiscation is not feasible.Impact on crypto investigationsThe absence of legislation directly addressing unfair trading practices in the virtual asset market has posed challenges for prosecutors. They had to rely on existing statutes related to fraud, the capital market, and financial investments. Once the new act takes effect, prosecutors will no longer need to determine whether a virtual asset qualifies as a security or not.Regarding this development, a prosecutor told local legal news outlet Law Times that the implementation of the new act will escalate prosecutorial investigations into cryptocurrency incidents.Meanwhile, the individuals behind the crash of Terraform Labs’ stablecoin TerraUSD and its sister coin Luna will not be subject to this act due to the legal principle of nulla poena sine lege, which prevents the retrospective enforcement of criminal laws. Do Kwon, co-founder of Terraform Labs, was recently sentenced to four months in prison by a Montenegrin court for passport forgery after being arrested in March. The other co-founder, Daniel Shin, has been indicted by prosecutors in Korea.

Hong Kong Bank to Act as Settlement Bank for Crypto FirmsZA Bank, Hong Kong’s largest virtual bank, is looking to become the go-to bank for crypto startups. The online bank has been given permission to serve as the settlement bank for regulated Web3 companies in the city. This development was announced at Hong Kong’s Web3 Festival, an event supported by the local government and attended by crypto startups and institutions from across Asia.©Pexels/Frank BarningHashKey and OSL collaborationZA Bank is expected to facilitate crypto-fiat conversions with two licensed exchanges in Hong Kong, HashKey and OSL, where customers can swap crypto into fiat currencies. ZA Bank will also offer basic banking services to local Web3 startups, a category that is currently underserved by traditional financial institutions.ZA Bank is focusing on assisting local Web3 startups and small-medium enterprises (SMEs).The bank linked up to the city’s company registry data, allowing for minimal information input and cross-checking. According to Devon Sin, alternate chief executive of ZA Bank, the bank currently conducts AML scrutiny against the usual checklists to satisfy the regulatory requirements. No AML issues have emerged during the recent months of work.Competing for global crypto businessHong Kong is trying to establish itself as a crypto-friendly alternative to other hubs, such as the US and Singapore, and a sandbox for Web3 businesses from China, where crypto trading is illegal. The city is revamping its digital assets regulatory framework, with plans to legalize retail trading of major cryptocurrencies like Bitcoin and Ether. Ronald Lu, CEO of ZA Bank, said that ZA Bank’s online account opening for Web3 startups is a major step forward in integrating traditional banking services with the Web3 world.According to Lu, ZA Bank will act as a settlement bank for clients to allow withdrawals in Hong Kong, China, and US currencies after they deposit crypto tokens with exchanges. The business model is already operational through HashKey and OSL, the only two licensed crypto exchanges in Hong Kong. The bank will provide the same service for other exchanges as they become licensed.HK China’s crypto “trial run”Hong Kong is opening up to the beleaguered sector in a move that aims to revive its status as a financial center following years of COVID restrictions and political upheaval. However, access to banking has been a major hurdle for the city’s ambitions. The city’s banking and securities regulators are hosting a round-table for crypto players and bankers to share experiences and perspectives on banking services later this month.Many have speculated about a softening stance on cryptocurrency by the Chinese authorities. However, it’s more likely that they continue with strict regulation and control relative to crypto in mainland China while happy to monitor a more open approach to it within Hong Kong. Crypto analyst Myles Deutscher likens the approach to a “trial run” that is being monitored by China.Launched in March 2020, ZA Bank is one of Hong Kong’s eight licensed virtual banks and had the most net assets as of last year, despite remaining unprofitable. The virtual lender doesn’t expect it will need to boost its headcount to handle the crypto client push. Although the revenue model is still unclear, Lu said that more clients, more deposits, and more business opportunities are always great for the bank. The lender doesn’t offer services for clients from mainland China, given the restrictions in place there.