Korea’s KFTC launches blockchain-powered loan service for public servants

Deputy Prime Minister and Minister for Finance Lawrence Wong is slated to unveil the Singapore 2024 Budget Statement on Feb. 16. As Singapore prepares for the unveiling of its 2024 Budget, the city-state’s Web3 community is amplifying its call for crucial government backing. That’s according to a recent report by The Straits Times. The plea from Singaporean firms revolves around two pivotal areas: one, nurturing a proficient talent pool well-versed in blockchain technology; and, in addition to that, having a strength and depth in cybersecurity, so as to fortify defenses against cyber threats.Photo by David Pardo Bernal on UnsplashUrgent need for Web3 talentSome time ago, stakeholders in Singapore set out their stall in terms of the ambition of firmly establishing the city-state as a global hub for Web3 development. It’s off to a good start with many notable crypto and Web3 companies having established themselves in Singapore. However, broadening that industry hub to the fullest extent will involve overcoming the significant hurdles hindering the growth trajectory of Singapore’s Web3 sector. Top of the list is the scarcity of skilled professionals in the blockchain domain. Danny Lim, a core contributor at MarginX, a decentralized exchange, stressed the pressing demand for seasoned developers. Lim underscored the necessity of supporting Web2 developers transitioning into Web3 realms, especially those grappling with job displacement, to solidify Singapore’s status as a nucleus for groundbreaking blockchain ventures. Elaine Zhu, the general manager of the Asian division of blockchain infrastructure firm Parity Technologies, emphasized the critical need for blockchain education, expressing apprehension over the dwindling influx of new developers. In citing a recent report by crypto-focused venture capital firm Electric Capital which quantified developer activity across Web3, Zhu noted that the number of experienced developers in Singapore remains healthy. However, the report found that the number of newly qualified developers dropped by 52 percent last year. Bolstering cyber defensesAdditionally, the industry is clamoring for fortified cyber defenses to shield against the escalating threat landscape targeting digital assets. This focus on security underscores the broader challenge of ensuring the secure proliferation of Web3 technologies and digital currencies within Singapore’s technological ecosystem. A report by Singapore-based blockchain security firm Beosin last year found that exit scams are a growing concern in the crypto-sphere. At the end of last month, the Singapore Police Force, alongside the Cyber Security Agency of Singapore (CSA), issued an advisory in order to raise awareness regarding crypto-centric cyber attacks. Ong Chengyi, representing Chainalysis, hailed Web3 as pivotal for long-term growth and advocated for sustained governmental support to enhance the sector’s capability in mitigating risks using advanced technological solutions. Ong remarked:“We hope to see more public-private collaboration to bolster Singapore’s defences against crypto crime and cyber threats more generally, through the utilization of data and technology.” Angela Ang of TRM Labs echoed that sentiment, emphasizing the imperative for heightened regulatory support to nurture the expansion of digital assets. Ang stated:“To deliver clarity to businesses at scale, whether it’s through licensing decisions or implementation guidance, the Government must invest in both human capital and technology throughout the regulatory process.” 

Atomic Wallet Hacker Uses Lazarus Crypto MixerThe stolen cryptocurrency from the recent $35 million hack of Atomic Wallet is already being moved to a crypto mixer favored by North Korea’s notorious cyber-hacking group.Photo by Micha Brändli on UnsplashSinbad.ioAccording to UK-based crypto compliance analysis firm Elliptic, the funds have made their way to a crypto mixer used by Lazarus Group, a notorious hacker group that focuses on crypto heists which is believed to have direct ties with the North Korean government.On June 5, Elliptic’s Investigations Team revealed that it had traced the funds from the Atomic Wallet hack to the crypto mixer Sinbad.io. Lazarus had previously used the mixer to launder over $100 million in stolen crypto assets.While the exact amount sent to the mixer was not specified, Elliptic noted that the stolen funds were being exchanged for Bitcoin before undergoing obfuscation through the mixer. Additionally, Elliptic reported that Sinbad.io is likely a rebranded version of Blender.io, another mixer extensively used to launder funds by the Lazarus Group. Blender.io has been sanctioned by the US Treasury.Atomic Wallet hackThe hack of several user accounts on Atomic Wallet occurred on June 3, resulting in losses of up to $35 million. News of the issue broke with the following tweet from the project team (which has subsequently been deleted): “We have received reports of wallets being compromised. We are doing all we can to investigate and analyze the situation. As we have more information, we will share it accordingly.”In a follow-up tweet the next day, the team confirmed that it was investigating the matter with the assistance of a number of “leading security companies.”However, Atomic Wallet later downplayed the incident, stating that less than 1% of its monthly active users were affected. The project team was castigated by users for trying to present the hack as a minor incident. One user took to Twitter to call out the Atomic Wallet team for “having the nerve to come to the networks and say that only 1% of wallets were affected.”The Atomic Wallet project is based out of Tallinn, Estonia, having been founded in 2017. It claims to provide a non-custodial decentralized multi-currency crypto wallet. The product supports over fifty coins and two hundred tokens. It also offers atomic swaps between digital assets, while also supporting integrations with instant exchanges such as Changelly, ShapeShift, and others.Roland Säde, the Chief Marketing Officer of Atomic Wallet, assured users that the team is working tirelessly to recover the stolen funds. He emphasized the need to complete the investigation to develop a concrete plan.Despite the ongoing efforts, Säde urged victims to track the illicit transfers and report them to popular crypto exchanges. By doing so, it was thought that may hinder the scammers from exchanging the funds.Crypto hacking menaceLazarus Group hackers have been the bane of the crypto space in recent years. Elliptic released a report last month that identified Japan as having been the country most adversely affected by the North Korean hackers. It’s understood that the estimated $721 million in stolen crypto from Japan-based entities amounts to nearly nine times the value of North Korea’s exports based on 2021 data.While Atomic Wallet is directly reporting the incidents, Säde believes that having more individuals monitoring the hackers’ activities will make it more challenging for them to move the funds undetected. Unfortunately, Elliptic’s recent findings suggest that for many victims, it may already be too late to prevent further misuse of their stolen cryptocurrency.

The South Korean government and the ruling party may postpone agreement on a unified proposal for the Digital Asset Basic Act, legislation that would include regulations on stablecoins. The bill represents the second phase of the country’s cryptocurrency regulatory framework, following the first phase that took effect in 2024 to strengthen investor protection.Photo by KS KYUNG on UnsplashAccording to Edaily, the two sides had planned a policy consultation on March 5 to finalize the draft. The meeting was later pushed back to this week but is now unlikely to take place, potentially delaying the government’s plan to complete stablecoin legislation by this month. The Digital Asset Basic Act is a comprehensive bill to regulate the crypto market, including issuance, distribution, disclosure, and listing of virtual assets. South Korea has more than 13 million crypto investors, and market participants see the legislation as a step toward reducing regulatory uncertainty. Meanwhile, the rapid rise of dollar-denominated stablecoins such as USDT and USDC has raised concerns that a slow regulatory response could undermine the country’s monetary sovereignty. Toss eyes dual role in KRW stablecoinsAmid ongoing debate over stablecoin regulation, Viva Republica, the operator of the payments app Toss, is preparing to move into the issuance and distribution of won-denominated stablecoins. At the 2026 Blockchain Meetup Conference last week, Seo Chang-whoon, corporate development director at Viva Republica, said Toss hopes to take on both roles in the stablecoin ecosystem, according to ZDNet Korea. “Toss would like to try serving both as a stablecoin issuer and as a distribution platform,” Seo said. The company is considering joining a consortium to issue a won-based stablecoin, which could include Toss, its financial affiliates, and traditional banks. Toss also plans to expand the token’s use through a dApp store, and indicated it may work with blockchain firms as it develops the business. Global firms are also studying the market potential for Korean won-backed stablecoins. DWF Ventures said in a report last week titled “South Korea’s KRW Stablecoin Opportunity” that a won-denominated stablecoin could offer meaningful benefits to domestic markets. The report argued that such a token could help reduce reliance on the U.S. dollar and curb capital outflows, while improving capital efficiency by allowing reserves to generate yield. With about 98% of South Koreans using digital payments, adoption could come quickly, the report said, adding that the system could also strengthen authorities’ ability to monitor and curb illegal activity. Survey finds modest optimism around BitcoinAmid growing expectations around stablecoin policy, a recent survey of South Korean crypto investors showed cautious optimism about Bitcoin’s price outlook this week. According to a weekly poll conducted last week by CoinNess and Cratos, 27.3% of respondents said they expect Bitcoin to rise or surge this week, up from 24% a week earlier. 32.2% predicted the price would move sideways, up from 28.1% the previous week, while 30.5% expected a decline or sharp drop, down from 47.9% a week earlier. When asked about market sentiment, 37% of respondents said they felt fear or extreme fear, while 32.2% described sentiment as neutral, and 30.8% said they were optimistic or extremely optimistic. Asked why they invest in cryptocurrencies, 33.9% of respondents said they see crypto as the only path to upward mobility. Another 32.5% cited confidence in the long-term value of Bitcoin and blockchain technology, while 25.5% pointed to its role as a hedge against instability in traditional finance. The remaining 8.1% cited volatility and 24/7 trading. According to CoinMarketCap data, Bitcoin was trading at $72,634.39 at the time of writing, up 9.34% over the past week.