Korea considers legal recognition of virtual assets as trust assets for investor protection

Russians will continue to have access to crypto markets despite the application of sanctions, according to a senior Russian official. Impossible to completely block marketThat’s the view of Anton Gorelkin, the deputy head of the State Duma committee on information policy. In a report published by Russian state-owned news agency TASS on March 6, Gorelkin is quoted as stating: "It should be recognized that it is impossible to completely block this market for Russia." Gorelkin added that crypto remains one of the mechanisms through which international sanctions being applied to Russia can be circumvented. Russian firms have increasingly been using Bitcoin and crypto in international trade to circumvent sanctions. The Russian official’s comments come as Russian crypto exchange Garantex has been forced to suspend its services. Last month, the Council of the European Union (EU) had added the exchange to its latest Russian sanctions package. This was part of the EU’s sixteenth sanctions package against Russia since the conflict in Ukraine began. It’s the first time that a crypto exchange has been included within any such sanctions. The EU did so on the assertion that Garantex is “closely associated with EU-sanctioned Russian banks.” Photo by Michael Parulava on UnsplashTether ‘enters war’ against Russian crypto marketThe crypto exchange took the decision to suspend its services following an action taken by leading stablecoin issuer, Tether. Taking to Telegram, the exchange stated: “We have bad news, Tether has entered the war against the Russian crypto market and blocked our wallets worth more than 2.5 billion rubles [$27 million].” The exchange took the opportunity to warn its users that “all USDT in Russian wallets is currently under threat.” Garantex added that it has been the first to be hit with such a measure, but that it won’t be the last. The firm said that it “will fight, and [it] will not give up.”  Tether has been under the spotlight of regulators and governments globally in recent years. In response, it appears to have incorporated the freezing of funds subject to sanctions more recently, with closer cooperation with law enforcement and government agencies. Last year, the company outlined that it planned to freeze funds held in addresses related to countries or companies subject to sanctions. Last September, Tether claimed to have played a role in an operation carried out by the Dutch authorities and U.S. Secret Service that led to the takedown of two crypto exchanges, Cryptex and PM2BTC, who were alleged to have been involved in money laundering. Garantex had already been subject to U.S. sanctions since April 2022. At the time, the U.S. authorities described the exchange as a "ransomware-enabling virtual currency exchange." The firm was originally established in Estonia in 2019. Commenting on the development, Gorelkin stated:  "To the investors who underestimated this risk, my condolences."  He also asserted that the latest round of sanctions will not be the last in attempts to apply pressure on Russian cryptocurrency firms and crypto sector infrastructure within Russia. While he believes that crypto remains a tool to get around sanctions, he stated that “USDT can be safely deleted from this list.”

Starbucks Korea implements NFT initiative to boost sustainability effortsStarbucks Korea is set to take on several eco-friendly initiatives in the new year to promote the use of personal reusable cups, including an NFT wallet and a new tumbler coupon policy, according to local news outlet Newsis on Thursday (KST).Photo by Battlecreek Coffee Roasters on UnsplashNFTs and eco-friendly effortsIn a newfound development, the brand also said that it would start issuing NFTs through a new NFT wallet on its mobile app next month as part of its eco-friendly consumption campaign. Until now, NFTs have been widely utilized in fields like art, music and entertainment due to their ability to prove individual ownership of digital assets. Starbucks’ adoption of the technology is a significant step in its implementation into daily life, which will lead to an increase in the number of real-world use cases and an acceleration in the transition to the era of Web3.To celebrate the launch of the NFT wallet, Starbucks plans to hold a promotional event where customers who use a reusable cup for one beverage ordered via the Siren Order function will receive one Eco Stamp. Up to three stamps can be collected per day. These can be exchanged for various types of NFTs, which are categorized as Basic, Creative and Artist, and each customer can only own one.Starbucks’ NFTs will be minted in collaboration with Seoul-based art platform and gallery Print Bakery (PBG) and PBG exclusive artist DADAZ, featuring images of unique cups, tumblers and more.The franchise plans to hold an offline exhibition to showcase images of the NFTs as well as its achievements in corporate sustainability at the Starbucks Jongno R store located in Jongno-gu, central Seoul, early next month.Sustainable sipsThe coffee franchise is also known for offering a complimentary beverage voucher to customers who purchase a reusable cup or tumbler. Next month, this voucher will be renamed the Eco Tumbler Beverage Coupon, which customers can exchange for a tall-sized beverage of their choice. This policy is aimed at encouraging the use of personal cups and providing tailored benefits to customers who embrace sustainable options.This new introduction was partially driven by the steady increase in the number of personal cups used at Starbucks stores around the country over the past three years. The annual number of cases has risen from 17.39 million in 2020 to 21.9 million in 2021, then 25.3 million last year.This figure has spiked significantly this year in particular, with the cumulative yearly number reaching 26.7 million last month, surpassing last year’s total. If this trend continues until the end of the year, the estimated figure is expected to be around 29.6 million, representing a 17% increase compared to 2022.This upward trend is attributed to the immediate KRW 400 discount offered to customers who participate, as well as an alternative benefit where customers can earn one “Star”, or reward point, for each purchase that they make. Until last month, the total value of benefits that were distributed via these two systems — with one Star valued at KRW 500 — exceeded KRW 12 billion. The ratio of immediate discount and Star rewards in this value stands at 30% and 70%, respectively.Green commitmentStarbucks also plans to continue its No Single-Use Cup Day campaign, a collaboration with the Korea Zero Waste Movement Network that has been ongoing for the past five years. The brand dedicates the tenth of every month as a day without single-use disposable cups, giving out merchandise like mugs, tumblers, coffee ground planting kits and stickers. Since last year, various events have been organized to celebrate the day, such as coupons gifted to customers who use reusable cups the most. Approximately one million people have participated in these promotions since the campaign’s inception in 2018.Starbucks expressed its hopes that these initiatives would act as a catalyst for positive changes in local communities by encouraging the reduction of waste.

CoinEx Reveals Insights Into Recent Platform HackHong Kong crypto exchange CoinEx has issued a further update relative to the security breach that occurred on the platform last week resulting in one of the exchange’s hot wallets being compromised.Photo by FLY:D on UnsplashImmediate responseIn the immediate aftermath of the $70 million hack, CoinEx took action to safeguard user assets and initiate an investigation into the incident. It suspended all deposit and withdrawal services and executed an emergency shutdown of the hot wallet server. Following this, the company securely moved the remaining assets to cold storage, commencing the process of reconstructing and deploying a new wallet architecture.The firm also engaged in an investigation, spearheaded by its wallet and security teams, to ascertain the extent of the breach. Moreover, CoinEx claims to have proactively reached out to fellow exchanges to freeze any assets related to the attack.Haipo Yang, the Founder and CEO of CoinEx, conveyed his apologies to affected users through his personal X (formerly Twitter) account. He emphasized the team’s commitment to restoring services promptly and reassured users that their funds will remain secure.Following up on that commitment, CoinEx published an update on the hot wallet hack on September 15 to address these concerns individually.New wallet deploymentThe exchange expects to finalize wallet upgrades within the upcoming week, after which withdrawals will gradually be phased in, subject to security evaluations. The CoinEx team is currently working on developing and deploying an entirely new and robust wallet system capable of managing activities across 211 chains and 737 assets.The firm has outlined that each of its product lines operates independently, featuring its own risk control system. Consequently, the security incident that occurred on CoinEx will not affect the integrity of its other product lines.In its most recent update on Tuesday, the Hong Kong crypto exchange confirmed that 80% of its wallet system has now been reconstructed. It added that it has initiated preparations to enable the withdrawal system on the platform. It stated:”Details about the resumption of withdrawals, including specific dates, times, and arrangements, will be announced on the CoinEx website. Please stay updated on our announcements for the latest information.”Ongoing investigationRegarding the identity of the attacker, CoinEx has confirmed that the matter is currently under investigation. While some security firms have made attribution claims, the company is focusing primarily on deploying the new wallet architecture, restoring affected users and functionalities, and enhancing overall security.At the same time, the company has initiated communications with the hackers in a bid to proactively seek a mutually agreeable resolution. While the incident implicates the loss of a substantial amount of funds, the firm maintains that in the context of the overall business, the sum represents only a small percentage of total assets under its management.Exchange security remains a major challenge in the crypto sector, with hacks happening on an ongoing basis. Last week, Seychelles-headquartered peer-to-peer crypto platform Remitano acknowledged a $2.7 million hack. At the beginning of September, crypto gambling platform Stake was reported to have suffered a $41 million hack.