IOTA accelerates Middle East expansion with $100M foundation launch

dYdX Foundation CEO Shares the Importance of Korean Developers of the Cosmos NetworkDecentralized crypto derivatives exchange dYdX is in the midst of a significant transition, as it prepares to move away from its current Ethereum-based layer-2 protocol to Cosmos, a decentralized network of independent blockchains. Meanwhile, senior members of the dYdX Foundation, a Swiss-based not-for-profit entity behind the derivatives exchange, paid a visit to South Korea on the occasion of Korea Blockchain Week: KBW2023, which is an annual event that spans from September 4 to 10 this year.Photo by Mariia Shalabaieva on UnsplashBusy Q4Regarding the upcoming v4 update on a Cosmos-based blockchain, Charles d’Haussy, the CEO of the dYdX Foundation, shared his thoughts in an interview with CoinNess. He expressed anticipation for a bustling fourth quarter this year but also acknowledged that the exact timeline remains uncertain, as it hinges on the voting processes, including one for bridging tokens to Cosmos, within the dYdX community.Utility token on v4As part of dYdX’s migration to Cosmos, its governance token will undergo a transformation into a utility token. The forthcoming dYdX v4 will be fully decentralized, with 100% of the fees collected from the exchange distributed to stakers and validators. Following the completion of this migration, the current dYdX protocol on Ethereum will eventually become deprecated.Exclusive focus on crypto derivativesIn a significant milestone, dYdX achieved over $1 trillion in total trading volume on its Layer 2 platform on July 14 of this year. d’Haussy expressed pride in this achievement and highlighted that dYdX’s competitive edge lies in its exclusive focus on crypto derivatives.DeFi mullet memeAlthough DeFi derivatives trading currently represents just 1% of the overall crypto derivatives volume, d’Haussy is optimistic about its future growth, predicting an acceleration. In a parallel to how traditional banks offer an array of products that originate from external entities such as brokerages and insurance companies, Charles d’Haussy envisions that centralized exchanges will provide a diverse range of offerings sourced from decentralized platforms. He expressed his strong belief in the idea encapsulated by the DeFi mullet meme, which features the phrase “Fintech In The Front, DeFi In The Back.”Top-tier Cosmos builders in KoreaWhen asked about his visit to Korea, d’Haussy emphasized the presence of top-tier Cosmos builders in the country. He underscored South Korea’s importance within the Cosmos ecosystem, highlighting that 10% of dYdX’s testnet participants are Korean companies.

KDIC Seizes Crypto from Debtors Linked to Losses at Financial FirmsDuring the first half of this year, the Korea Deposit Insurance Corporation (KDIC) tracked the cryptocurrency holdings of 1,075 individuals and debtors responsible for causing losses at financial entities, including savings banks, according to documents obtained by local news outlet Herald Economy, from the office of lawmaker Kim Han-kyu, a member of the National Assembly’s National Policy Committee. From this scrutiny, KDIC identified 29 wrongful cases and proceeded to confiscate cryptocurrencies in 16 of those instances.KDIC is a semi-state body that has been instrumental in tracing and recovering assets from culpable employees at troubled financial firms and debtors in arrears. Meanwhile, methods for hiding wealth have become more sophisticated, typically unfolding behind the curtain.Photo by Georg Bommeli on UnsplashFirst crypto seizureOut of these individuals, 900 had taken out loans of at least KRW 3 billion ($2.2 million) from beleaguered financial institutions, while the remaining 175 were employees of these institutions, held responsible for their failures. This occasion represents the KDIC’s first seizure of virtual assets.Until recently, the KDIC struggled to reclaim hidden assets funneled into cryptocurrency exchanges, given their limited authority to seek documentation. KDIC’s purview mainly extended to requesting information from public institutions, banks, insurance companies, and securities firms. However, KDIC has now found a way to seize crypto assets by investigating the bank accounts linked to these exchanges. In Korea, crypto exchanges facilitating Korean won trades are legally mandated to secure real-name accounts from banks.Call for expanding KDIC’s authorityGiven the evidence of using cryptocurrencies to conceal wealth, many suggest that amendments to the Depositor Protection Act are necessary, enabling KDIC to directly request relevant data from exchanges and recover more hidden assets effectively.Furthermore in August KDIC secured a court order allowing them to liquidate these assets. Following this successful confiscation, the debtors’ cryptocurrencies have been frozen in their wallets, rendering them unresponsive to any market shifts. Discussions are now underway regarding the method of liquidating the debtors’ cryptocurrencies at market value on exchanges. This includes deliberations on whether KDIC will assume ownership of the cryptocurrencies and directly proceed with their sale.In a chat with Herald Economy, Lawmaker Kim emphasized the need for KDIC to have the authority to access information from virtual asset service providers. This would enable them to more effectively retrieve assets from responsible debtors. Kim further stated that such steps would enhance both the efficiency of debt collection and overall market fairness.

Korea Securities Depository Spotlights the Significance of a Security Token PlatformDuring a press conference held today in Seoul, Chairman Lee Soon-ho of the Korea Securities Depository (KSD) highlighted the need for developing innovative financial infrastructure, including a security token platform, as reported by local tech news outlet etnews.Photo by JEONGUK -on UnsplashBlockchain-based securitiesIn recent times, there has been a surge in demand for blockchain-based securities, prompting the South Korean government to issue guidelines on security tokens in February of this year. Consequently, securities firms, fractional investment platforms, and technology companies have been collaborating to form consortia.The KSD has been actively studying the legislative and institutional aspects of security tokens to establish a foundation for their widespread acceptance. Furthermore, it has devised a mid-to-long-term roadmap for the security token platform. Since February, the KSD has been spearheading a security tokens council with an aim to develop a business model for a security token platform starting in July.KSD’s roleSpecifically, the KSD intends to provide feedback on subsequent legislative revisions pertaining to security tokens, review security token registrations, and establish methods for managing the total volume of security tokens under the Act on Electronic Registration of Stocks and Bonds.Additionally, the KSD aims to expedite the construction of a new system for the capital market infrastructure. This endeavor entails revamping the operational system to enable flexible responses to internal and external changes, as well as creating a smart workplace suited for the digital era.Since its establishment in 1974, the KSD has played a crucial role in supporting the development of the Korean capital market by providing diverse securities services, including the issuance and distribution of securities. Nonetheless, participants at the conference concurred that the agency needs a fresh vision and strategy to maintain its position in the future.Chairman Lee emphasized that the agency’s 50th anniversary will take place next year, prompting a thorough assessment of its current status and the formulation of a new vision and strategy to adapt to the ever-evolving financial landscape. As part of these efforts, he underscored the recent establishment of a task force dedicated to devising future plans.