Korea’s financial regulator establishes dedicated units for crypto oversight

Over the course of the past two weeks, the unit price of Ethereum (ETH) has surged 32%, with a report from a Singapore-based crypto financial services firm asserting that the Asian market has had a large part to play in that increase. Taking to X on July 16, Matrixport, a crypto financial services platform, provided its daily analysis in which it suggested that “Ethereum’s recent outperformance appears to be heavily influenced by Asia.”Photo by DrawKit Illustrations on UnsplashAsian market influenceThe company included a graph in which it had plotted Ethereum’s recent performance during Asian trading hours, asserting that as much as 17% of the uptick in the Ether unit price can be accounted for by the actions of market participants within the Asian market. It added:"The influence of the Asian market in the pricing of crypto assets is continuing to rise, whether in terms of volatility or trading momentum.” ETH ETFs in Hong KongSpot ETH exchange-traded funds (ETFs) were approved in Hong Kong in April 2024. Hong Kong ETH ETF volumes have risen substantially in July, with significant inflows being recorded related to both retail and institutional investors.  In the past, many commentators have suggested that the addition of staking would be an attractive prospect for institutional investors who like the idea of accumulating an ongoing yield. With that, Asian investors may be enticed to delve further into Ethereum positions going forward, given that ETF issuers are trying to add that component to their offerings. Huaxia Fund, a subsidiary of China Asset Management (ChinaAMC), is preparing to launch staking as part of its ETH ETF. Another potential driver for ETH in Asia in the future lies with the ongoing enablement of trading via established institutions. Earlier this week, China Merchants Bank’s brokerage arm received a virtual asset license in Hong Kong to trade crypto assets. It’s the first mainland China-affiliated brokerage to be awarded such a license, with licensing enabling it to offer trading services related to assets like Ether. Global assetWhile Asia is playing a role in ETH’s recent move upwards, the asset is traded globally and with that, factors further afield are also playing a role. Tom Lee, founder of American financial research firm Fundstrat, pointed out on X that ETH had been range-bound since 2021. However, he believes that the rise of stablecoins, which by and large run on Ethereum, together with ongoing growth in the tokenization of real-world assets (RWAs), is driving demand for the digital asset. While Bitcoin treasury companies have played a significant part in driving Bitcoin in recent months, Ethereum is starting to see similar activity. Lee made the point that Strategy (formerly MicroStrategy) “set the standard for Treasuries,” but that now BitMine “wants to be the Microstrategy of Ethereum.” The crypto mining and treasury firm confirmed on July 17 that it now holds $1 billion worth of Ethereum. Arthur Hayes, co-founder of BitMEX and chief investment officer (CIO) at Hong Kong family office, Maelstrom, said that it was “ETH szn” and that the Maelstrom Fund is buying the digital asset. Tom Dunleavy, head of venture at Varys Capital, asserts that ETH will hit a unit price of $10,000 by the end of 2026.

South Korean digital marketing firm FSN has entered into a strategic alliance with Fingo Company, the operator of the music copyright platform Fingo, to jointly work on a tokenized securities project based on the recently raised funds, according to local news site Newsis on Monday (KST).Photo by Chris Liverani on UnsplashUnlocking synergiesThrough this partnership, FSN and Fingo aim to collaborate on a token securities project. As both companies have experience in leveraging IP, they are expected to apply their expertise to the new business. In particular, FSN operates several IP-based Web3 projects such as Sunmiya Club and Bellygom NFT through its subsidiary Finger Labs, through which the firm has been demonstrating its competitive edge. Fingo also owns a variety of content-based IPs and is cooperating with major domestic securities companies. The two firms’ business capabilities are thus expected to create great synergy in the market. Fingo’s service allows anyone to share revenue made from music, a concept referred to as music revenue sharing, which was once limited to creators or singers only. Last year, it took a step into the tokenized securities sphere by signing a business deal with Mirae Asset Securities, the country’s largest asset manager, to establish a token securities service and launch innovative financial investment products. FSN has been gearing up to take on this collaborative project, namely a recent success in raising a total of KRW 10 billion (approximately $7.5 million) in funding. The company explained that with this considerable funding paired with its knowledge of Web3 and blockchain technology and experience in collaborative partnerships, it will be equipped to settle into the tokenized securities market seamlessly. Charting new horizons"As we have secured large-scale funding under stable conditions, we expect to successfully pursue new businesses, including that in tokenized securities," FSN CEO Lee Sang-seok said. "We will steadily expand new businesses by establishing partnerships with companies with competitiveness in various areas, starting with Fingo Company, which has a competitive edge in tokenized securities and music IP," he said.

LightLink, the Singapore-based Layer 2 startup, has recently clinched $4.5 million in seed funding, spearheaded primarily by Asian investors. A strategic alliance has also been forged between LightLink and Animoca Brands, a trailblazer in digital property rights within the open metaverse and gaming sectors.Photo by cottonbro studio on PexelsThai-led fundingT&B Media Global, a prominent Thai media entity, and MQDC, a Bangkok-headquartered real estate developer, led the funding round, which amounted to $4.5 million. In addition to T&B Media Global and MQDC, the seed round saw participation from more notable investors within the Asia Pacific (APAC) and Oceania regions, such as digital asset-focused Australian investment manager JellyC, Aweh Ventures, Singapore’s Blue7 and Australian Web3 venture capital fund B3V. While the capital funding is early stage and lower end from a dollar amount perspective, the broad spectrum of investors underscores a certain level of excitement surrounding LightLink's innovative product offering. The startup’s product offering enables enterprises and decentralized applications to conduct gasless, real-time user transactions within the Ethereum ecosystem through the use of optimistic rollups within LightLink’s established architecture. The infusion of funds will be used to bolster LightLink's efforts to further develop a groundbreaking "multiverse project" dubbed Translucia, a venture that attempts to seamlessly merge virtual and physical realms. Dr. Jwanwat Ahriyavraromp, founder and CEO of T&B Media Global, lauded the partnership, citing a shared vision to cultivate a harmonious and interconnected digital universe that radiates joy worldwide. Animoca collaborationNews of this funding infusion comes off the back of LightLink’s announcement last month of a collaboration with Web3 firm Animoca Brands. This collaboration will witness Animoca integrating LightLink's Ethereum Layer 2 technology into select initiatives, accompanied by advisory support to bolster LightLink's tokenomics strategies and market outreach. The synergy between these entities provides great potential for the delivery of a more seamless Web3 experience, eliminating transaction fees and streamlining blockchain integration for users. LightLink's Ethereum Layer 2 blockchain offers a host of benefits, enabling gasless transactions and frictionless transfers of assets within a public blockchain environment. Its utilization extends to over 25 affiliates, including notable entities like Grapes and The Red Village, with integration into the Translucia project underway. Roy Hui, co-founder and CEO of LightLink, expressed optimism about the partnership's potential to democratize blockchain technology, fostering global connectivity and enabling diverse communities to embrace decentralized solutions. Yat Siu, executive chairman and co-founder of Animoca Brands, echoed this sentiment, emphasizing the alignment between LightLink's gasless transactions and their mission to decentralize the digital realm. Pellar Technologies, the development powerhouse behind LightLink, boasts a track record of over 50 blockchain projects across the APAC region since 2017. LightLink itself ranks among the top 10 in transaction volumes among rollups, boasting over 215,000 unique wallet addresses operating on-chain. Hui reiterated LightLink's commitment to simplifying blockchain adoption. Using the seed funding announcement as an opportunity to set out the firm’s primary objective, he stated:”Our aim is to bridge the digital economy with millions of users across the globe. The funding we've received enhances our focus on making blockchain as intuitive as traditional web platforms, with an emphasis on gasless transactions.” The seed funding marks a significant milestone in LightLink's journey, propelling it towards playing its part in the further roll-out of Web3 innovation.