KCC sets guidelines for user protection on metaverse platforms

Rising Cryptocurrency Arbitrage Transactions Raise Concerns in South KoreaThe number of arbitrage transactions between South Korean and foreign cryptocurrency exchanges has been experiencing a notable uptick, according to a report by local media outlet Maeil Business Newspaper.In recent developments, foreign actors engaging in price manipulation have been transferring substantial amounts of cryptocurrency assets to Korean exchanges, driving up prices. Subsequently, they transfer these tokens from Korean exchanges back to overseas platforms, capitalizing on the price discrepancies to generate profits.Photo by Maxim Hopman on UnsplashBithumb’s case in H1According to documents submitted to Kim Hee-gon, a member of the ruling political party People Power Party, on Monday, KRW 3.4 trillion ($2.6 billion) worth of tokens were moved from Bithumb, a leading Korean cryptocurrency exchange, to foreign trading platforms during the first half of this year. Although this figure marks a 40% decrease compared to H1 2022’s KRW 5.7 trillion, primarily due to the significant decline in token prices across the cryptocurrency market, it’s noteworthy that the number of transactions has seen a significant increase.Other exchangesGopax, another major exchange in the nation, recorded token outflows totaling KRW 12.3 billion. On the other hand, Upbit, Coinone, and Korbit, which are also prominent exchanges, declined to provide data due to reasons like confidentiality concerns. However, given that Upbit holds an 82.0% share of the Korean crypto market, nearly four times larger than Bithumb’s share (14.2%), it is suspected that the volume of tokens transferred from Upbit to foreign platforms would likely have followed a similar proportion.While the value of tokens sent from Bithumb to overseas operators saw a year-over-year decrease, the number of transactions surged to 231,302, nearly doubling the figure of H1 2022’s 124,048 transactions. The average transaction size was KRW 14.7 million.Even though the overall enthusiasm for cryptocurrencies might have cooled off since last year, the spike in the number of transactions suggests that there’s been a surge in arbitrage trading between Korea and foreign markets.Kimchi premiumEarlier this month, a significant transaction caught the eye of cryptocurrency market observers in South Korea. On September 1, crypto data analytics firm Arkham identified that 170,000 CyberConnect (CYBER) tokens were transferred to Bithumb from a crypto wallet thought to be owned by DWF Labs, a firm specializing in cryptocurrency trading and investment. The timing of the transaction coincides with a period during which the Kimchi premium for CYBER exceeded 100%. The Kimchi premium refers to the crypto price gap between Korean exchanges and their foreign counterparts.The complicating factor here is that DWF Labs is a foreign entity that is managed by a foreign team.The use of corporate accounts is virtually prohibited in the Korean crypto market. The Travel Rule mandates that any transfers of tokens between Korean and international exchanges must go through accounts that have been verified under Know Your Customer (KYC) guidelines. Given these regulations, there are growing suspicions within the crypto community that foreign venture capitalists may have used accounts in borrowed names to conduct sales on Korean exchanges, which are restricted to Korean citizens. However, it’s worth noting that there is currently no legal basis for taking punitive action even if borrowed-name accounts were indeed used.Lawmaker Kim commented on the limitations of current financial regulations aimed at preventing money laundering in the cryptocurrency market. Despite efforts by financial authorities, including the introduction of the Travel Rule, Kim stated that these measures have not been very effective. He emphasized the urgency of enhancing the regulatory framework to curb potential illicit activities involving cryptocurrencies, such as those exploiting market arbitrage opportunities.

In an interview with local media, Hong Kong legislator Johnny Ng called for the Chinese autonomous territory to implement a national Bitcoin reserve. Ng made the comments in a discussion with Hong Kong-based state-owned Chinese language media outlet, Wenweipo. The legislator believes that there is an opportunity for Hong Kong to take advantage of China’s “one country, two systems” approach to governance, which gives it the freedom to implement such a reserve despite mainland China remaining much less enthusiastic where Bitcoin and cryptocurrencies are concerned.Photo by Kanchanara on UnsplashSpot Bitcoin ETF impactThe Hong Kong Legislative Council member suggested that as a first step, Hong Kong needs to assess the impact that spot Bitcoin exchange-traded funds (ETFs) in the United States have had. Spot Bitcoin ETFs were launched in the U.S. in January. The leading spot Bitcoin ETF, IBIT, provided by asset manager BlackRock, has achieved a growth rate five times faster than any other ETF launched in the past. El Salvador and the Kingdom of Bhutan are examples of nations that have made Bitcoin a significant component within their national reserves. A recent report suggests that El Salvador currently holds 6,000 Bitcoin which it purchased at an average price of $45,465. In November, Arkham Intelligence reported that Bhutan was holding Bitcoin with a dollar value which had exceeded $1 billion at that time. Ng also referred to a move by individual states in the U.S. towards holding Bitcoin as a reserve asset. In August, the state of Wisconsin increased its holdings of shares in BlackRock’s spot Bitcoin ETF, IBIT. Last month, the state of Pennsylvania introduced a bill to make Bitcoin a strategic asset. Ohio has proposed similar legislation while Alabama’s State Auditor, Andrew Sorrell, has suggested that his state should establish a Bitcoin reserve. Reducing price volatilityNg believes that furthering the Chinese autonomous territory’s dealings relative to Bitcoin could prove beneficial, given that Bitcoin has the potential to play a role in attracting more talent and investment to Hong Kong. Additionally, he feels that the development of Bitcoin reserves at state level could help in reducing the price volatility of the asset as it goes through the process of global adoption. The Hong Kong lawmaker also believes that there is an opportunity for the Chinese antonymous territory to benefit from first mover advantage, stating that “the value of Bitcoin will be more stable, causing more and more other countries to follow suit and reduce their holdings of traditional assets.” Ng's latest interview follows a similar comment he made on X in July, where he suggested that Bitcoin is worth considering as an official financial reserve for a country. David Bailey, CEO of Bitcoin Magazine, took to X stating: “Hong Kong making moves, SBR here we go. President Trump must make the Strategic Bitcoin Reserve his top priority the day he enters the White House.”In recent days, soundings from Japan and Russia suggested that neither of these countries was prepared to establish Bitcoin reserves. However, just like with the advent of the Bitcoin ETF in the U.S., following Trump’s expression of interest in the establishment of a strategic Bitcoin reserve, the level of consideration of the matter has increased considerably among governments around the world.

Lemon Healthcare launches blockchain-based electronic prescription serviceSeoul-based healthcare data platform company Lemon Healthcare’s blockchain-based, personalized electronic prescription service dubbed “LemonCare” has officially been launched in three major hospitals in the North Gyeongsang Province region of South Korea, according to an article published by local news outlet Etnews on Thursday. This comes after the recent end of the service’s development and pilot operation period.Photo by Christina Victoria Craft on UnsplashRevolutionizing healthcareThe aim of the project was to replace paper prescriptions with electronic prescriptions through a blockchain-based mobile service that offers patients an additional layer of security as well as the ability to view and manage their prescription history. It also reduces and prevents risks such as duplicate prescriptions.Kyungpook National University Hospital, Kyungpook National University Chilgok Hospital and Daegu Fatima Hospital — all located in Daegu Metropolitan City in North Gyeongsang Province — were selected as participants in the pilot project, during which they were responsible for electronically prescribing medication to patients, which would then be compounded and delivered by nearby pharmacies. They will also be the first to implement the app as an official service.Advancing healthcare accessLemon Healthcare stated that it has also hired new personnel, applied for patents related to electronic prescriptions and issued some 500 electronic prescriptions.Patients who have received treatment at any of the three hospitals and want to utilize the electronic prescription service can do so under the “Electronic Prescription Delivery” option on the hospital’s mobile app. After completing user authentication, the patient’s prescription is transmitted to the pharmacy of their choice, from which patients can pick up their medication.Leveraging its blockchain technology, Lemon Healthcare plans to bring secure and accurate electronic prescription services to more people in the future.